The mobile ecosystem is changing rapidly and will affect all enterprises. Most early M&A deals have been in advertising, marketing and metrics, plus some content. Key mobile drivers include rapidly increasing smartphone adoption…dropping pricepoints … and increasing network speeds and ubiquitous connectivity.

1. May 19, 2011
Tribeca Grand Hotel, New York City
© 2011 Gridley & Company LLC
© 2011 Gridley & Company LLC

2. Newspapers,
Magazines,
Watch Books
Camera
Computer
Telephone
GPS, Snail
Maps, Mail
SMS Compass
Ring Tones Video
Music Camera
PDA
Range
Finder
Telephone
Game
Credit Cards, Console
Identity Alarm
Music Clock
Player
© 2011 Gridley & Company LLC

3. 1990s 2008 Today
Voice
SMS
Email
Apps
Apps
?
© 2011 Gridley & Company LLC

4. Marketing/
Commerce / Content
Advertising/ Social
Payments
Personal
Analytics
Local
Hardware
Network
© 2011 Gridley & Company LLC

5. Marketing/ Commerce /
Content Social
Advertising/Analytics Payments
© 2011 Gridley & Company LLC

6. Marketing/ Commerce /
Content Social
Advertising/Analytics Payments
Note: in $ millions
© 2011 Gridley & Company LLC

7. Marketing/ Commerce /
Content Social
Advertising/Analytics Payments
© 2011 Gridley & Company LLC

8. 2005 – 2006
• Wireless infrastructure driven
• One off application acquisitions
2007– 2008
• M&A at some scale
• Early marketing related
transactions
2009– TODAY
• Beginning to expand beyond
marketing oriented services
© 2011 Gridley & Company LLC

9. Marketing/
Advertising
Analytics
Commerce/
Payments
Content
Social
© 2011 Gridley & Company LLC

10. 2011
~ $8bn
Comments:
• 35% smartphone
penetration
~ $4bn
• Price points will
continue to drop
~ $1bn • Innovation
Sub • What is a mobile
$500mm device?
Payments Marketing Content Commerce
Source: Morgan Stanley Research, Mobile Internet Report, December 2009
iSuppli, May 2011
Aite Group, November 2010
© 2011 Gridley & Company LLC

11. On Deck
In-store Payments
Commerce
Photo
Display
Food
In app Mkt / Adv Events
/Analytics Social
Measurement
Cities
Local Payments
Shop
Content
Books
Video Music
Games News
Events
© 2011 Gridley & Company LLC

12. Marketing/ Commerce /
Content Social
Advertising/Analytics Payments
© 2011 Gridley & Company LLC

13. Mkt / Adv
/Analytics
Social
Social
Games
Mkt / Adv
Aggregator /Analytics
Music
News Feeds
Content Social
Destinations
Local
Video
Books/Maz
Social
Commerce
Mkt / Adv
/Analytics
© 2011 Gridley & Company LLC

14. Coupons Social
New
Products
In-store Mkt / Adv
/Analytics
Loyalty
Closed Loop
Mkt / Adv
Commerce /Analytics
Payments
Time Mkt / Adv
On deck /Analytics
Sensitive
© 2011 Gridley & Company LLC

15. •
•
•
© 2011 Gridley & Company LLC