The document provides statistics on smartphone ownership and usage in the United States. Some key facts include: - 76.8 million Americans owned smartphones in mid-2011, an 11% increase from the previous period. - Wealthy individuals under 50 and those with a college degree have higher rates of smartphone adoption. - Mobile data usage grew 77% in the first half of 2011, with video streaming and file sharing accounting for most data consumption. - Mobile advertising spending is expected to top $1 billion in 2011 and grow substantially in subsequent years as smartphones continue to rise in popularity.

1. Stats 83% of US adults have a cell phone of some kind 35% of US adults now own a smart phone 1 in 4 smartphone users does most of his/her online browsing from the phone 76.8 million Americans owned smartphones during the 3 months ending May, 2011 Up 11% over the preceding 3 months Source: The Pew Research Center, July 11, 2011

2. Source: The Pew Research Center, May 22, 2011

3. Stats: Demographics Wealth 61% of the 22 million wealthiest people in the US own a smartphone 84% of affluent individuals under 50 own a smartphone 38% of affluent individuals 60+ own a smartphone Luxury brands are mobile leaders Chanel has 2 mobile-optimized sites (jewelry & watches) Source: American Affluence Research Center

4. Source: The Pew Research Center, May 22, 2011

5. Stats: Demographics 38% of smartphone users live in urban areas 38% of smartphone users live in suburban areas 21% of smartphone users live in rural areas 48% of those with a college degree own smartphones 44% of blacks and Latinos are smartphone users Source: The Pew Research Center, May 22, 2011

6. Source: The Pew Research Center, May 22, 2011

7. Stats: Usage Mobile data usage grew by 77% in the 1 st half of 2011 YouTube accounts for 22% of that use Video streaming = 39% of mobile bandwidth 86% of US mobile internet users watch TV on their smartphones File sharing = 29% Web-browsing = 29% VoIP = 4% Source: Mobile Trends Report, July 2011

8. Stats: Usage Mobile data usage grew by 77% in the 1 st half of 2011 VoIP grew 101% in the first half of 2011 Twitter grew 297% Facebook grew 166% Source: Mobile Trends Report

9. Stats: Usage Platforms

10. Statistics: Platforms Source: Nielsen, July 2011

11. Stats: Spending Mobile ad spending in messaging, display ads, video and search is expected to top $1 billion in 2011 83% are spending on a branded mobile site 77% - display advertising 50% - branded applications & SMS text 40% - mobile search, video, MMS, barcode & mobile coupon Source: Interactive Advertising Bureau, July 2011

12. Stats: Projections Smartphone sales to pass computer sales in 2012 By 2013, mobile phones will overtake PCs as the most common Web access device 109.5 million smartphone users by 2015 Source: smaato, eMarketer, Dec 2010

13. Stats: Projections Nearly three-quarters (72%) of marketers are looking to hike mobile ad spending in the next two years, and 35% will boost budgets by more than 50%. "Marketer Perspectives on Mobile Advertising" Source: smaato

14. Stats: Projections Source: eMarketer, Sept 2010

15. Social Search Apps SMS Email Location-Position Channels

16. Facebook 34% of Facebook users access the site on their mobile phone at least 1x/day. 42% of online consumers have “followed” a retailer proactively through Facebook, Twitter or a retailer’s blog The average person follows 6 retailers. More than 56% of Facebook users say they have clicked through to a retailer’s website because of a Facebook post. Channels: Social Source: comScore

17. Channels: Social Group buying sites Groupon, LivingSocial, Gilt City, Style Blueprint etc. 8 in 10 consumers are aware of group buying sites. The US daily-deals market will grow to $3.93 billion in 2015, from $1.5 billion this year. Source: BIA / Kelsey

18. Channels: Social YouTube 32% of people view YouTube clips daily from their smartphones. By 2013, video will be a significant driver of mobile data usage, occupying an estimated 66% of mobile traffic. Twitter 42% of users access the site on their mobile phone at least 1x/day. Source: Cisco

19. Channels: Search 75% of smartphone users use mobile search Information sought by smartphone users: 57% - news 51% - dining & restaurant information 51% - navigation 49% - entertainment 47% - shopping Identifying “user-agents” Source: Mobile Movement, April 2011

20. Channels: Apps Three main types of apps marketers should be concerned with: Branded Apps Mobile Media-Related Apps Mobile Shopping/Commerce Related Apps Source: MMA

21. Channels: Apps Apple’s App Store Accounted for 84% of overall app store download traffic Android Market App activity grew 196% Other app stores

22. Channels: Search vs. Apps Both platforms will co-exist Consumers want information differently

23. Challenges Industry Fragmentation across devices, platforms & providers Difficulty in media planning & production Lack of measurement standards iAd tracks ads but doesn’t report on clicks or interaction Integration of mobile with other media channels Changing industry and client interest Need for current mobile expertise