This document summarizes research on the mobile advertising market from 2009. Key findings include: 1) Mobile advertising was a tiny fraction (0.04%) of the overall advertising market but growing rapidly. 2) Consumer attitudes were mixed, with many seeing mobile as personal but not fully trusting mobile ads. 3) Success would depend on addressing privacy concerns, relevance of ads, and incentivizing consumers. 4) While challenges remained around measurement and inventory, the future potential of location-based mobile ads was seen as large. Cooperation across the mobile ecosystem would be critical to realize this potential.

1. RESEARCHFACTS AND VISIONS ON AND BY THE MARKETTarik FawziPeggy SalzLondon - June 15th 2009

2. WHY THIS PROJECT? All encompassingend-to-end researchAdvertiserperspectiveMobile ecosystemperspectiveConsumerinsightsFocus onlocalmarketMobile in the media mixRealistic/constructive outlook

3. HOW WAS IT DONE? DeskresearchAnalysis of existing data, research, cases and other relevant information IAB Ad spendstudy, Comscore, Informa, NielsenConsumerinsights Online research amongst1000 + consumers,their attitudes and opinionson mobile advertising and media UK (region, gender), youngsters, frequent mobile internet users Expert interviewsIndividual interviews on the topic withmarket experts Operators, advertisers, media buyers, saleshouses, infrastructuresuppliers,applicationparties

4. WITH WHOM? EndorsementsExecutive partnersLaunch partnersResearchpartners

5. RESEARCHRESULTS 2009

6. MOBILE IS IN IT’S INFANCYmarket: £17,5 bnmobile: £28,6 mSource: IAB/PwC/ WARC 2009

7. MOBILE IS INTERNET 10 YEARS AGOYoYgrowth mobile 2008 99,2%Opera and eMarketerforecastsimilargrowthfor 2009(whiletotalmarket is expected to decreasewith 10%)Informaforecast of 2.2%marketshare in 2013 is comparable to Internet’s2.9% in 20032,9%Source: ÆNEAS STRATEGY 2009 (basedon IAB/PwC/WARC 2009, Opera 2008, Informa2008, eMarketer 2008)

8. TIME AND MONEY DON’T ADD UP**** 1) Time spendonpress is sum of 22 minutesfornewspapers and 15 minutesfor magazines/tabloids 2) Ad spend is sum of pressclassified and press display** Ad spend is indicativebasedon 0,04% of total ad spend 2008 USA (Nielsen)Source: IAB/PwC/WARC 2009, ÆNEAS STRATEGY 2009

9. VALUE CHAINInfrastructuresuppliersAd servingApplicationpartiesConsumersAdvertisersMedia buyersSaleshousesOperators

10. MOBILE THROUGH CONSUMER EYESEVERYWHEREDEFAULT ON PERSONALNOT TRUSTWORTHYVIRALINTERACTIVESource: ÆNEAS STRATEGY 2009

11. MOBILE IS NOT TRUSTWORTHY =32%positive attitude towardsadvertisingon the mobile phone16 - 4434%40%37%Source: ÆNEAS STRATEGY 2009

12. MOBILE IN THE MIXTelevision RadioPressCinema70%77%58%68%OutdoorDirect mailInternetMobile59%34%32%74%Source: ÆNEAS STRATEGY 2009

13. CONSUMERS HAVE THEIR TERMSPrivacy is NOT the most important attitude driver

14. Men are most conservative and show the least attitude change

15. 84% of youngsters has a positive attitude towards mobile advertisingifincentivizedSource: ÆNEAS STRATEGY 2009

16. Relevance > PrivacyIncome is toopersonalLocation: killer app?Source: ÆNEAS STRATEGY 2009

17. IT IS ALL ABOUT THE MONEY64% of UK consumerswouldgrantpermission to receive mobile advertisingifthey are incentivized70% of UK consumerswouldgrantpermission to receive mobile advertisingifthey are incentivizedAND are in controlMessages a day525%Source: ÆNEAS STRATEGY 2009

18. MOBILE IN THE MIX REVISITEDTelevision RadioPressCinema70%77%58%68%OutdoorMobileDirect mailInternet57%wouldprefer mobile over Internet58%wouldprefer mobile over television59%34%32%64%70%74%Source: ÆNEAS STRATEGY 2009

19. AWARENESS IS BELOW 50% Youngsters have higherawareness of richeradvertisingchannels (MMS, games & apps)SMS advertising is best knownWomen are awarenesslaggardsVoice is low,but51% would listen to voice ad ifincentivizedSource: ÆNEAS STRATEGY 2009

20. MOBILE ECOSYSTEMAdservingApplicationpartiesOperatorsInfrastructuresuppliersMedia agenciesSaleshousesPurchaseAdviser

21. Medium choice

22. Cross mediaIntegration Platforms

23. HostingSalesInventory

24. CPM/CPAGatekeeperCustomer base Contact

25. CustomerintelligenceInnovationSolutions

26. Focus

27. Partner/OutsourcingOperations Planning

28. Delivery

29. Interfacing