Momo Shanghai Sept 21 2009 Admob

Discovery, branding, and monetization on the mobile web. Jeff Merkel VP & Managing Director, APLA jeff@admob.com

AdMob Overview •  Largest Mobile Ad Network Globally 100+ billion ads served since inception, 8 billion/month across 160 countries •  Leading Technology Platform Brand/Performance Advertising (CPM/CPC), Analytics, Mobile Metrics, AdMob for Search •  Partnerships 7,000+ mobile sites 3,000+ iPhone & Android applications •  Company Headquartered in San Mateo, California. Offices in New York, Los Angeles, Chicago, London, Munich, Mumbai, & Singapore ©2009 AdMob, Inc. Confidential & Proprietary

Sample Sites & Apps in the AdMob Network Entertainment News & Weather 2009 AdMob, Inc. Confidential & Proprietary

Sample Sites & Apps in the AdMob Network Sports Top iPhone Apps Innovative Mobile Content Big Oven i.TV Plusmo Pro Football SportsTap Forex Sportstacular Weatherbug PhoneFlix Flixster 2009 AdMob, Inc. Confidential & Proprietary

So why are advertisers now paying attention?

AdMob for iPhone: Web Action Jaguar Banner Ad from Launches Jaguar’s iPhone-specific site 2009 AdMob, Inc. Confidential & Proprietary

AdMob for iPhone: App Store Loopt Text & Tile Ad from  Opens the Apple App Store  Users can immediately  AdMob for iPhone  directly to the Loopt App  download the Loopt App  2009 AdMob, Inc. Confidential & Proprietary

AdMob for iPhone, Canvas Users can watch the movie preview Mummy Movie Banner Ad Expandable Canvas offers from AdMob for iPhone custom engagement actions or check showtimes 2009 AdMob, Inc. Confidential & Proprietary

AdMob for iPhone: Video Action Opens YouTube & immediately plays a video Love Guru Banner Ad from AdMob for iPhone 2009 AdMob, Inc. Confidential & Proprietary

AdMob for iPhone: Audio Action S>tcher Radio Text & Tile Ad  Launches media player to  from AdMob for iPhone  play audio ﬁle  2009 AdMob, Inc. Confidential & Proprietary

AdMob for iPhone: Maps Action Call or get directions to the Best Buy Banner Ad Opens Google Maps location 2009 AdMob, Inc. Confidential & Proprietary

Advertisers Spending on Mobile Across Verticals Consumer Products Financial Movies, TV & Games Mobile Travel Auto Retail Internet 2009 AdMob, Inc. Confidential & Proprietary

So how do I grow my mobile presence?

Growing your Mobile Property, Understanding App Store Dynamics •  Consumer discovery is difficult with >65,000 apps in the App Store •  Most users discover apps by browsing the Top 25 or the Most Popular Apps by Category •  App Store rankings are based on the total number of downloads over a short period of time (~24hrs) •  Getting ranked is critical to the success of your app and the only way users will download your app in large numbers •  Key Metrics: Top 25 Overall, Top 25 and Top 50 in Category ©2009 AdMob, Inc. Confidential & Proprietary

Advertising on the iPhone is most effective and measurable way to drive downloads of your app For comparison, the term “iPhone App” costs over $0.70 per click on Google AdWords. AdMob CPC’s averages about $0.12 for the US market!! 2009 AdMob, Inc. Confidential & Proprietary

Almost all searching/browsing for apps is done directly on the mobile device, you cannot rely on your offline media alone Where do you usually search or browse for apps?  % of respondents  100%  3%  9%  8%  80%  60%  97%  92%  91%  On my computer  40%  On my Android/  iPhone/iPod  20%  touch  0%  Android  iPhone  iPod touch  Note: Ques>on only asked of respondents who selected “Searching for a speciﬁc type of  app” or “Browsing through top Android Market/App Store rankings” in previous ques>on  Visit hXp://metrics.admob.com  5 

Users most often discover apps by browsing the Market/Store and searching directly How do you discover the apps you decide to download? (select all that apply)  % of respondents  70%  65  59 62  60%  56  51  50%  43  40%  38  32  30  30%  27  25  20  20  Android  20%  15  14 15  16 17  13  iPhone  8  10%  6  iPod touch  0%  Visit hXp://metrics.admob.com  4 

Focus Advertising At Launch or Re-Launch/Update Sample Media Plan •  Combine all marketing efforts to Phase 1: Boost Ranking drive the maximum number of $40K over 4 days downloads in the shortest CPC: $0.12 period of time Clicks: 333,333 Impressions: ~ 33m •  Once app is ranked, continue to Downloads: ~30,000 spend at a lower level to sustain ranking Phase 2: Sustain Ranking $25K over 4 weeks •  Track cost per download and CPC: $0.12 monitor conversion rates to Clicks: 208,000 optimize your campaigns Impressions: ~20 m Downloads: ~16,000 Higher rank  greater visibility  exponential increase in downloads ©2009 AdMob, Inc. Confidential & Proprietary

Case Study: Advertising to reinvigorate ranking •  Music application launched in Nov 2008 •  100,000 total downloads, although new users had slowed to ~100 per day •  Advertising over 3 days increased user base by 10%, continue to see organic growth Advertising ©2009 AdMob, Inc. Confidential & Proprietary

Reporting allows you to optimize your campaign in flight •  View clicks, conversion rate, and downloads •  Test different ad copy and compare performance •  Target different geographies or iPhone / iPod touch separately ©2009 AdMob, Inc. Confidential & Proprietary

Apples & Androids?

Summary of app download habits by platform Average number of apps  downloaded per user per month  20  18.4  2.0  15  10.2  10  9.1  1.0  2.6  16.4  5  Paid  8.1  7.6  Free  0  Android  iPhone  iPod touch  Visit hXp://metrics.admob.com  10 

Android and iPhone users spend ~80-90 minutes/day using apps; iPod touch users spend a half hour more How much ;me do you spend using apps on an average day?  % of respondents  100%  14%  11%  21%  9%  10%  80%  16%  20%  15%  60%  21%  25%  22%  More than 4 hours  40%  2 ‐ 4 hours  18%  1 ‐ 2 hours  24%  22%  30 minutes ‐ 1 hour  20%  15 ‐ 30 minutes  18%  Under 15 minutes  13%  16%  8%  0%  Android  iPhone  iPod touch  Weighted average  88 minutes  84 minutes  121 minutes  user 7me per day  (1.5 hours)  (1.4 hours)  (2.0 hours)  Note: Weighted averages calculated using midpoint of each >me segment. 7.5 minutes assumed  for “Under 15 minutes” segment; 5 hours assumed for “More than 4 hours” segment  Visit hXp://metrics.admob.com  6 

iPod touch users download twice as many free apps as iPhone and Android users How many free apps do you download in an average month?  % of respondents  100%  9%  8%  3%  3%  22%  9%  80%  15%  6%  19%  19%  14%  60%  More than 20  22%  16 ‐ 20  30%  40%  27%  11 ‐ 15  7 ‐ 10  18%  4 ‐ 6  20%  24%  28%  1 ‐ 3  16%  0  0%  4%  2%  1%  Android  iPhone  iPod touch  Weighted average #  8.1  7.6  16.4  of free apps per user  Note: Weighted averages calculated using midpoint of each  segment. 25 apps assumed for “More than 20” segment  Visit hXp://metrics.admob.com  8 

iPhone and iPod touch users download twice as many paid apps as Android users on average How many paid apps do you download in an average month?  % of respondents  100%  1%  3%  5%  4%  12%  10%  More than 20  11%  80%  16‐20  23%  26%  11 ‐ 15  29%  60%  7‐10  81% of Android  users have never  4‐6  34%  downloaded or  40%  rarely download  27%  1‐3  paid apps  55%  I rarely download paid apps  20%  23%  26%  I have never downloaded a  paid app  0%  Android  iPhone  iPod touch  Weighted average #  1.0  2.6  2.0  of paid apps per user  Note: Weighted averages calculated using midpoint of each segment. 0 apps used for “I have never downloaded a  paid app” and “I rarely download paid apps” segments. 25 apps assumed for “More than 20” segment  Visit hXp://metrics.admob.com  9 

Users who do purchase paid apps download similar quantities across platforms Average number of paid apps downloaded per month  by users who download 1 or more paid apps per month  6  5.4  5.1  5.1  4  2  0  Android  iPhone  iPod touch  Visit hXp://metrics.admob.com  14 

Purchasers of paid apps spend similar amounts per month across platforms In total, how much do you spend on paid apps in an average month?  % of respondents who  purchase paid apps  100%  6%  5%  8%  1%  5%  4%  17%  80%  19%  19%  60%  29%  18%  27%  More than $30  40%  $21 ‐ $30  $11 ‐ $20  47%  51%  20%  44%  $6 ‐ $10  $1 ‐ $5  0%  Android  iPhone  iPod touch  Weighted average amount  $8.63  $9.49  $9.79  spent on apps per month  Note: Ques>on only asked of respondents who indicated that they purchase 1 or more paid apps per month.  Weighted averages calculated using midpoint of each segment. $35 assumed for “More than $30” segment  Visit hXp://metrics.admob.com  15 

Thank you. Jeff Merkel VP & Managing Director, APLA jeff@admob.com Lichi Wu APAC Account Manager lichi@admob.com

Momo Shanghai Sept 21 2009 Admob

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