MOBILE 101 LUNCH ‘N’ LEARN: The Most Seen Screen June 11, 2009

Introduction

Introduction

BRIEF HISTORY OF MOBILE Early 90’s mobile phone providers began offering customization to users Device covers, ringtones, wallpapers As customization became widely popular, mobile providers began charging customers for these assets Mobile providers began pushing large collections of ringtones, banners, wallpapers, etc. via offline media With the advancement of digital media, mobile companies developed ways to offer ad-supported mobile content to consumers SMS, applications, banners, and more Today, mobile phones are practically portable PCs (as opposed to traditional telephones) and thus have much of the same advertising potential as other forms of digital media Dr. Martin Cooper of Motorola, made the first US analogue mobile phone call on a larger prototype model in 1973.

Early 90’s mobile phone providers began offering customization to users

Device covers, ringtones, wallpapers

As customization became widely popular, mobile providers began charging customers for these assets

Mobile providers began pushing large collections of ringtones, banners, wallpapers, etc. via offline media

With the advancement of digital media, mobile companies developed ways to offer ad-supported mobile content to consumers

SMS, applications, banners, and more

Today, mobile phones are practically portable PCs (as opposed to traditional telephones) and thus have much of the same advertising potential as other forms of digital media

THE CONVERGED DEVICE “ Always with you”

WHY MOBILE?

Who is Using Mobile?

Who is Using Mobile?

MASS REACH US is going mobile… 305 million people in the US 267 million mobile phone subscribers 115 million subscribe to mobile web 49.7 million actively use the mobile web each month Worldwide, there are 4.3 billion mobile phone subscribers Source: Nielsen Mobile, May 2008

US is going mobile…

305 million people in the US

267 million mobile phone subscribers

115 million subscribe to mobile web

49.7 million actively use the mobile web each month

Worldwide, there are 4.3 billion mobile phone subscribers

MONTHLY MOBILE INTERNET UNIQUE AUDIENCE Data is in millions 28.1% YTY Increase in Mobile Unique Audience Source: Nielsen Mobile, May 2008 Jan 2009 Feb 2009

EXPECTED GROWTH OF MOBILE INTERNET USERS By 2013, there will be 134 million+ mobile internet users Worldwide SMS volumes are expected to grow from 2.6 trillion in 2007 to 5.5 trillion in 2013

STRONG ADOPTION OF UNLIMITED DATA PLANS 53.0% Increase YTY (US) Source: comScore m:metrics, December 2008

US MOBILE INTERNET USER PROFILE Source: Nielsen Mobile, May 2008 Key Facts Demographically diverse: Approximately 50/50 split between those above age 35 and those under 35 Slight male skew: 56% are male; 44% female. The male skew is consistent with findings across markets (i.e. Europe, Brazil, India, Russia) Not just for high HH income: 24% have HH income > $100k+; 26% have HH income < $50k

CONSUMER MOBILE ACTIVITIES BY AGE P13+ Text Get Maps Check Weather Read News 13-17 18-24 25-34 35-44 45-54 Email Picture Message 58% 80% 84% 74% 64% 50% 18% 20% 26% 28% 21% 13% 29% 48% 51% 41% 29% 20% 6% 6% 8% 9% 7% 4% 9% 9% 13% 14% 12% 7% 8% 6% 10% 13% 11% 7% 55-64 33% 9% 14% 3% 6% 6% 65+ 50% 3% 6% 1% 2% 1% Source: comScore m:metrics, September 2008

MOBILE GROWTH AMONG CONTENT CATEGORIES 2009 AdMob, Inc. Confidential & Proprietary % Growth Among Top Internet Categories from 2008 to 2009

MOBILE PROVIDES LIFT IN KEY METRICS Over 3 times more powerful than online for raising purchase intent, brand favorability and ad awareness Source: Dynamic Logic AdIndex July 08 2.6 5.6 23.9 3.0 12.2 1.7 5.4 1.5 4.7 6.9 Aided Brand Awareness Ad Awareness Message Association Brand Favorability Purchase intent

Over 3 times more powerful than online for raising purchase intent, brand favorability and ad awareness

Mobile Opportunities

Mobile Opportunities

OPPORTUNITIES OVERVIEW Mobile works at a very personal level, allowing brands to develop an on- going dialogue with their customers to build brand loyalty Used for either branding or direct response Branding: full-screen interstitials, expandables, mobile video with pre-, mid-, post-roll or live event production, and original branded content in branded channels DR: mobile clubs, loyalty programs, mobile CRM, contests, sweepstakes, on-pack, retail POS, hook-ins to supply chain management system on retail level Integration of traditional and digital media Mobile marketing campaigns can be optimized and uniquely measured (via SMS) across all media formats – TV, print, OOH, online, mobile, etc.

Mobile works at a very personal level, allowing brands to develop an on- going dialogue with their customers to build brand loyalty

Used for either branding or direct response

Branding: full-screen interstitials, expandables, mobile video with pre-, mid-, post-roll or live event production, and original branded content in branded channels

DR: mobile clubs, loyalty programs, mobile CRM, contests, sweepstakes, on-pack, retail POS, hook-ins to supply chain management system on retail level

Integration of traditional and digital media

Mobile marketing campaigns can be optimized and uniquely measured (via SMS) across all media formats – TV, print, OOH, online, mobile, etc.

MOBILE OPPORTUNITIES Internet Banners Internet Textlinks Internet Pre-Roll Video SMS/MMS 3 rd Party Application Sponsorships Search Proximity/Location-Based Lead Generation > CRM m-Commerce Proprietary Applications Downloads Bookmarks Device Customization Couponing COOL TOOLS Watch Cool Tools on DIY Network. *Reply Y for show reminder App Name: ESPN X GAMES Version: 1.0 Size: 10630 SMS Reply Click to WAP Voice Reply Click to Video Click to App

Internet Banners

Internet Textlinks

Internet Pre-Roll Video

SMS/MMS

3 rd Party Application Sponsorships

Search

Proximity/Location-Based

Lead Generation > CRM

m-Commerce

Proprietary Applications

Downloads

Bookmarks

Device Customization

Couponing

INTERNET BANNERS/TEXTLINKS/PRE-ROLL VIDEO Similarly to online advertising, purchase banners, textlinks, or pre-roll video to run across publishers’ mobile sites Buying done at the site/publisher and network levels

Similarly to online advertising, purchase banners, textlinks, or pre-roll video to run across publishers’ mobile sites

Buying done at the site/publisher and network levels

SMS/MMS SMS (Short Message Service): common term for the sending of &quot;short&quot; (160 characters or fewer, including spaces) text messages to mobile phones MMS (Multimedia Messaging Service): can include not just text, but also sound, images and video Allows advertisers to: Promote the brand and create an opportunity to interact with the audience Evaluate the effectiveness of campaigns through response rates Get instant response at points of interest and collect valuable customer data DonQ Ringtone DonQ Video DonQ Recipes DonQ Events! From: 44636 From: 44636 NFL NE:38 NYG:35 F 12/29 * Premium rum needs to be enjoyed! Reply Don Q Don Q quality comes from aging that takes 2-3 years. This makes the flavor of Don Q rum shine. Find out more by visiting http://m.DonQ.com

SMS (Short Message Service): common term for the sending of &quot;short&quot; (160 characters or fewer, including spaces) text messages to mobile phones

MMS (Multimedia Messaging Service): can include not just text, but also sound, images and video

Allows advertisers to:

Promote the brand and create an opportunity to interact with the audience

Evaluate the effectiveness of campaigns through response rates

Get instant response at points of interest and collect valuable customer data

DonQ Ringtone

DonQ Video

DonQ Recipes

DonQ Events!

SMS/MMS (cont.) SMS/MMS can also be integrated with other forms of digital media such as console gaming

SMS/MMS can also be integrated with other forms of digital media such as console gaming

3 RD PARTY APPLICATION SPONSORSHIPS Reach a captivated audience of mobile consumers within trusted applications Can choose applications and devices

Reach a captivated audience of mobile consumers within trusted applications

Can choose applications and devices

SEARCH 5.2 million US mobile search users Expected to grow to 56.3 million by 2013 Source: eMarketer, April 2009

5.2 million US mobile search users

Expected to grow to 56.3 million by 2013

PROXIMITY MARKETING Bluetooth: global standard for wirelessly connecting devices such as mobile phones, computers, cars, MP3 players and more When consumers walk by kiosks, enter shopping centers, or attend events, marketers can push branded video games, mp3s, in-store specials and promotions (content is sent directly to mobile phone) Location-Based Services (LBS): utilize the geographical position of the mobile device Location based maps of user’s current location, routing services to provide directions Real time information about traffic conditions Identification of particular points of interest based on user preferences

Bluetooth: global standard for wirelessly connecting devices such as mobile phones, computers, cars, MP3 players and more

When consumers walk by kiosks, enter shopping centers, or attend events, marketers can push branded video games, mp3s, in-store specials and promotions (content is sent directly to mobile phone)

Location-Based Services (LBS): utilize the geographical position of the mobile device

Location based maps of user’s current location, routing services to provide directions

Real time information about traffic conditions

Identification of particular points of interest based on user preferences

PROXIMITY MARKETING (cont.) Interactive POS/POI: interactive screen on store front showing a 3D ‘virtual reality store’ and product promotions Users can find out more about particular products, their functionality and their price Can text a short code on their mobile to receive a discount voucher for any product promotions, to redeem when the shop reopens

Interactive POS/POI: interactive screen on store front showing a 3D ‘virtual reality store’ and product promotions

Users can find out more about particular products, their functionality and their price

Can text a short code on their mobile to receive a discount voucher for any product promotions, to redeem when the shop reopens

LEAD GENERATION > CRM Lead Generation Capture user data through sign-ups, requests for information, sweepstakes entries Email addresses, phone numbers, names, etc. Ability to implement mobile CRM once the leads are captured Mobile customer relationship management is a combination of processes, and strategies implemented by an organization that unifies its customer interaction and provides a mechanism for tracking customer information Identify target groups within the customer base according to selected criteria or demographics Send mobile campaign-related material (e.g. information on special offers) to selected recipients Track, store, and analyze campaign statistics, including tracking responses and analyzing trends

Lead Generation

Capture user data through sign-ups, requests for information, sweepstakes entries

Email addresses, phone numbers, names, etc.

Ability to implement mobile CRM once the leads are captured

Mobile customer relationship management is a combination of processes, and strategies implemented by an organization that unifies its customer interaction and provides a mechanism for tracking customer information

Identify target groups within the customer base according to selected criteria or demographics

Send mobile campaign-related material (e.g. information on special offers) to selected recipients

Track, store, and analyze campaign statistics, including tracking responses and analyzing trends

M-COMMERCE Ability to conduct financial transactions using mobile devices Currently, mobile content purchase and delivery mainly consists of the sale of ringtones, wallpapers, and games for mobile phones Nokia is working to develop phones that will allow consumers to pay for items (or pay each other) via text messages or other cell phone applications, similar to Exxon Mobile’s Speedpass where consumers can “swipe ‘n’ go”

Ability to conduct financial transactions using mobile devices

Currently, mobile content purchase and delivery mainly consists of the sale of ringtones, wallpapers, and games for mobile phones

Nokia is working to develop phones that will allow consumers to pay for items (or pay each other) via text messages or other cell phone applications, similar to Exxon Mobile’s Speedpass where consumers can “swipe ‘n’ go”

PROPRIETARY APPLICATIONS Software programs that are downloaded, installed and perform specific tasks on a mobile device (Multi)media and entertainment Games Social networking Productivity Utilities Education and reference

Software programs that are downloaded, installed and perform specific tasks on a mobile device

(Multi)media and entertainment

Games

Social networking

Productivity

Utilities

Education and reference

DOWNLOADS Ringtones Wallpaper Music Games Videos

Ringtones

Wallpaper

Music

Games

Videos

BOOKMARKS Advertisers buy a link to their brand’s mobile site on select handsets Unique inventory Can be purchased by device and/or country Long lead times

Advertisers buy a link to their brand’s mobile site on select handsets

Unique inventory

Can be purchased by device and/or country

Long lead times

DEVICE CUSTOMIZATION Allows companies to brand a device/handset and packaging Has not yet made it to the US, but is prominent in Brazil

Allows companies to brand a device/handset and packaging

Has not yet made it to the US, but is prominent in Brazil

COUPONING Lack of infrastructure is currently holding back growth of mobile coupons in Western Europe and North America Coupons delivered and redeemed via mobile phones are forecast to be used by 200 million mobile subscribers globally by 2013 As well as increased redemption rates, mobile coupons have a number of advantages over their paper cousins including: Real-time offers Geo-targeting Time-of-day redemption tracking Stimulate impulse purchases Cost efficiency

Lack of infrastructure is currently holding back growth of mobile coupons in Western Europe and North America

Coupons delivered and redeemed via mobile phones are forecast to be used by 200 million mobile subscribers globally by 2013

As well as increased redemption rates, mobile coupons have a number of advantages over their paper cousins including:

Real-time offers

Geo-targeting

Time-of-day redemption tracking

Stimulate impulse purchases

Cost efficiency

Opportunities to Integrate Mobile with Traditional Media

Opportunities to Integrate Mobile with Traditional Media

INTEGRATION ACROSS MEDIA Integrating mobile with traditional media allows for measurability and tracking of offline media Print ads have the opportunity to incorporate SMS text messing into their advertising message Live NFL scores on your cell phone! Send a text message to 44636 (4INFO) with EXPRESS TEAM NAME (EXPRESS JETS) to sign up for team scores & news.

Integrating mobile with traditional media allows for measurability and tracking of offline media

Print ads have the opportunity to incorporate SMS text messing into their advertising message

OUT OF HOME Brands have opportunity to engage consumers through SMS text messaging as they pass out of home messages Incorporate an SMS short code to message for consumers to receive updates, coupons, etc.

Brands have opportunity to engage consumers through SMS text messaging as they pass out of home messages

Incorporate an SMS short code to message for consumers to receive updates, coupons, etc.

ON-AIR SMS programs work by prompting viewers to send their votes and opinions to their favorite shows via text messaging, and is especially popular with the youth demographic SMS TV is increasing program viewership and loyalty

SMS programs work by prompting viewers to send their votes and opinions to their favorite shows via text messaging, and is especially popular with the youth demographic

SMS TV is increasing program viewership and loyalty

ON-PACKAGE The most straightforward form of mobile marketing is on–package marketing, the imprinting of short codes and keywords directly on packaged goods Consumers text these keywords to short codes to receive rebates, enter contests or simply interact with the brand Large volume on–package promotions have produced response rates ranging from 8-20%

The most straightforward form of mobile marketing is on–package marketing, the imprinting of short codes and keywords directly on packaged goods

Consumers text these keywords to short codes to receive rebates, enter contests or simply interact with the brand

Large volume on–package promotions have produced response rates ranging from 8-20%

VENUE Brands/Venues can foster engagement and interaction with consumers while attending various events using SMS/MMS Attendees can send personal messages to a short code (promoted at the venue) which will then be displayed on the jumbotron or LED screen At sporting events, send fans text alerts about player injuries and breaking news, or allow them to vote for their favorite players and highlights

Brands/Venues can foster engagement and interaction with consumers while attending various events using SMS/MMS

Attendees can send personal messages to a short code (promoted at the venue) which will then be displayed on the jumbotron or LED screen

At sporting events, send fans text alerts about player injuries and breaking news, or allow them to vote for their favorite players and highlights

Targeting, Tracking, and Reporting

Targeting, Tracking, and Reporting

TARGETING Behaviors: Categories of high-propensity Individuals. Based on mobile web browsing activity & premium mobile content purchase Content Categories: Search & Directories News & Finance Entertainment Mobile Communications Premium Content & Downloads Sports Weather Demographics: Age Gender HH Income Geography Education Presence of Children Ethnicity Marital Status Dayparts: Time of Day Day of Week

Content Categories:

Search & Directories

News & Finance

Entertainment

Mobile Communications

Premium Content & Downloads

Sports

Weather

Demographics:

Age

Gender

HH Income

Geography

Education

Presence of Children

Ethnicity

Marital Status

Dayparts:

Time of Day

Day of Week

TARGETING (cont.) Geographic Zip code, DMA, state, country Location-based targeting Target users based on their exact location and serve them ads for restaurants, attractions, stores, etc. in their nearby vicinity Device Targeting Target based on type of device as well as mobile carrier Ex. Target only iPhone users Custom Targeting Many publishers can work with advertisers to provide a combination of traditional targeting options

Geographic

Zip code, DMA, state, country

Location-based targeting

Target users based on their exact location and serve them ads for restaurants, attractions, stores, etc. in their nearby vicinity

Device Targeting

Target based on type of device as well as mobile carrier

Ex. Target only iPhone users

Custom Targeting

Many publishers can work with advertisers to provide a combination of traditional targeting options

TRACKING AND REPORTING Mobile publishers have the ability to track and report on a number of key digital metrics Impressions, clicks, conversions/ROI, click-to-calls, SMS replies, and other types of user engagement WAP/mobile site activity can also be measured and analyzed 3 rd party tracking and reporting is possible with some (but not all) publishers Allows us to pixel creative, which will track in our system and provide us with immediate access to campaign data If 3 rd party tracking is not feasible, we are unable to include mobile in path-to-conversion measurement and reporting Ability to track mobile campaigns allows on-going optimization At the site, placement, and creative levels Based on typical metrics such as CTRs, CRs, CPCs, etc.

Mobile publishers have the ability to track and report on a number of key digital metrics

Impressions, clicks, conversions/ROI, click-to-calls, SMS replies, and other types of user engagement

WAP/mobile site activity can also be measured and analyzed

3 rd party tracking and reporting is possible with some (but not all) publishers

Allows us to pixel creative, which will track in our system and provide us with immediate access to campaign data

If 3 rd party tracking is not feasible, we are unable to include mobile in path-to-conversion measurement and reporting

Ability to track mobile campaigns allows on-going optimization

At the site, placement, and creative levels

Based on typical metrics such as CTRs, CRs, CPCs, etc.

Mobile is no longer an “emerging media”… … it is here.

Mobile is no longer an “emerging media”…

… it is here.

?