Mobile Advertising
Overview of the Indian market

India – Essential Facts
• Over 700 million people below the age of 30!
– First internet experience for this generation will be through the mobile
• 350 million+ mobile phone users estimated to double to over 700
million in 3 years!
– 8 to 10 million new users added a month
• Mobile internet users outnumber broadband users by 19 to 1!
– 38 million mobile internet users as of Oct 2008
– Mobile internet users doubled in the last 12 months
• Most of the handsets sold in India are internet enabled
• India is the largest consumer of mobile internet in Asia!!!

India’s mobile population is expected to double by 2012!
800
715
Actual* Forecast
700 650
iSuppli Forecast
580
600
612
480 555
500
500
Subscribers (M)
384 450
400 Business Monitor Int’l Forecast
354
328
276
300
232
196
200
100
0
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
* Reported by Telecom Regulatory Authority of India

Leading research firms forecast a burst in growth of data revenues
• Pyramid Research says that, by 2012, India will be the fourth-largest
market for mobile data revenue, behind US, China & Japan
– Pyramid reported $2.2 billion in mobile data revenues for India for ’07
Actual 2007 Mobile Data Projected 2012 Mobile
Country Estimated Growth
Revenue ($B) Data Revenue ($B)
Germany 6.1 6.8 12%
Korea 5.1 11 116%
Mexico 2.1 4.8 128%
France 4.9 6.7 137%
US 26.3 70 166%
India 2.2 14.1 536%
• Juniper estimates content revenues (a subset of data revenues) in the
Indian region hit $8.3 billion by 2013
– The researcher estimates that revenues will hit $3 billion in 2008 and
predict the arrival of 3G in 2009 will boost an already buoyant market
for ringtones, games & music

Entertainment dominates mobile internet consumption in India
Top Mobile Internet Website Categories – BRIC, US, Europe *
India Brazil Russia China US Europe
1 Games (38%) Email (57%) Entertainment (34%) Entertainment (55%) Email (65%) Email (46%)
2 Email (33%) Music (27%) Search (29%) Games (36%) Weather (41%) Search (25%)
3 Entertainment (21%) Entertainment (25%) Email (24%) Music (31%) Search (29%) News/Politics (24%)
4 Music (18%) Games (18%) Music (24%) News/Politics (26%) News/Politics (26%) Weather (24%)
News/Politics & Business/Finance City Guides/ Maps
5 Sports (15%) Games (24%) Sports (22%)
Movies (tied 12%) (18%) (24%)
* Nielsen, Mobile Media Marketplace Report, 2008

Insights on India from the mKhoj network
• India’s mobile Internet traffic grew by over 90% in the fourth
quarter of 2008
– In the past 6 months alone the traffic has grown by over 500%
• Content Downloads, Portals and Communities are the three
most often visited site types for India
– Over 47% of the India traffic was driven by content download sites
– Communities overtook Lifestyle & Entertainment as the third largest
traffic category

69% of the handsets in India are Nokia
• Nokia was the market leader for handsets and occupies all the
top 10 spots. The top model in India is the Nokia 3110 Classic
– Nokia phones make up 69% of the overall traffic followed by Sony
Ericsson, Samsung and Motorola
– Advertisers and publishers should ensure that their sites or ads display
well on the top models
Model % of Traffic
Nokia 3110 classic 7.1%
Nokia N70 5.3%
Nokia 6233 5.2%
Nokia N80 4.7%
Nokia N73 3.3%
Nokia N90 3.3%
Nokia 6300 2.9%
Nokia N72 2.4%
Nokia 2626 2.3%
Nokia 3500c 2.3%
Top 10 38.9%

47% of the traffic is looking for content downloads
• The top 5 carriers make up over 89% of the overall traffic
– Airtel is the leading carrier in India with over 66% of the share
– The next four are BPL, Idea, BSNL and Vodafone
– Carrier tie ups are critical for content download sites
Carrier Share of Traffic - India
5% 1%
1%
5%
3%
4%
14%
66%
Airtel BPL Idea Vodafone Essar BSNL Reliance Other Spice

Why mobile advertising in India is a winning bet
• Mobile enjoys a higher market penetration than fixed internet
– In emerging markets like India the mobile phone, rather than the PC, is
the primary connected device
• This gives mobile a great opportunity for being one of the
main advertising mediums, especially in a more digital future
• Catalysts for industry growth
– Dropping data charges
– Increasing recognition amongst agencies
– Advertisers increasingly focused on measurability
– Increasing capabilities of mobile devices
– Better connectivity and user experience