Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T. )

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1 Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T. ) NOVEMBER CONTENTS 2 Millennial Media s Mobile Landscape 3 Spotlight on the Financial Services Ad Vertical 4 Mobile Advertising Engagement Data 5 Mobile Campaign Targeting Methods 6 Summary & Reporting Methodology

2 Millennial Media s Mobile Landscape U.S. MOBILE INTERNET REACH (Reflects Nielsen data from October 2010) U.S. MOBILE WEB 88,928,000* MILLENNIAL MEDIA 76,165,000* Millennial Media Reaches More than 8 out of 10 Mobile Web Users U.S. REACH GROWTH MILLIONS Millennial Media s U.S. reach has grown at the same rate as, or better than, the U.S. Mobile Web U.S. MOBILE WEB MILLENNIAL MEDIA OCTOBER 2009 OCTOBER 2010 MILLIONS DID YOU KNOW? Android applications represented 54% of the Application Platform Mix in November? To learn more about the top applications platforms and categories, download Millennial Media s Mobile Mix Report. Click here to download now! *The Mobile Web number was extracted from the Nielsen Mobile Report: Standard Metrics (Internet Applications included), October 2010, All Carriers. The Millennial Media number is a Nielsen Custom User-Defined Report. See Nielsen methodology and disclaimer information on page 6. VERTICAL EXPLOSION Year over Year Revenue Growth Q3 2010/Q Source: Millennial Media, 9/10. VERTICALS FINANCE RETAIL & RESTAURANTS TELECOMMUNICATIONS TRAVEL ARMED FORCES ENTERTAINMENT GROWTH 802% 745% 719% 411% 372% 315% 2

3 Spotlight on Financial Services Ad Vertical Financial Services Ad Vertical Break-out By Revenue - Q CHART A Financial Services Vertical Campaign Targeting Q CHART B 12% 15% 15% 20% 38% BANKING CAR INSURANCE LIFE INSURANCE HOME LOANS OTHER* % SITE SEARCH 7% SOCIAL MEDIA 13% 4% STORE M-COMMERCE LOCATOR/ VIEW MAP 12% WATCH VIDEO 18% 28% RETAIL SUBMIT PROMOTION FORM 17% 18% APPLICATION DOWNLOAD SUBSCRIBE/ PURCHASE 31% PLACE CALL Source: Millennial Media, 10/10. *Includes Credit Cards, Home Insurance and Student Loans. Insights: Financial Services has consistently placed in the Top 10 Mobile Advertising Verticals on Millennial Media s network throughout the last year. There has been tremendous growth in this ad vertical as brands look to reach the growing number of mobile banking customers and consumers leveraging mobile to manage other financial aspects of their lives. Due to the recession, consumers are more closely managing all of their financial accounts. Mobile provides consumers the unique ability to proactively participate in their money management anywhere, anytime. Savvy financial services brands in eight sub-verticals are realizing this trend and are actively leveraging mobile to reach their customers. The days of passively waiting for account summaries and bills are over (Chart A). Financial Services advertisers are extremely diverse in their campaign targeting methods. They are reaching consumers with traditional mobile post-click actions (i.e., Place Call, Submit Form, and Store Locator/View Map), as well as deeper mobile engagement methods (i.e., Application Download, Watch Video) to achieve their campaign objectives (Chart B). Source: Millennial Media, 10/10. DID YOU KNOW? Mobile phone enabled money transfer services will be the top application for mobile devices by ~ PC World, January 2010 There will be almost 500MM mobile banking customers in ~ABI Research Advertisers in the Financial Services vertical have been pioneers in creating short-product-launch mobile campaigns while also maintaining a constant mobile presence for retention and acquisition purposes. They are consistently including mobile as part of their product and services launch campaigns to achieve high unique reach in a short campaign period. Campaign targeting methods such as Takeover, GEO, and Audience are being used on these types of campaigns to drive deep consumer engagement. In addition, year-long registration-focused mobile campaigns are being used to drive high niche SOV and efficient customer acquisition and ROI. 3

4 Mobile Advertising Engagement Data Campaign Destination Mix CHART A Post-Click Campaign Action Mix CHART B 60 27% 39% 34% TRAFFIC TO SITE CUSTOM LANDING PAGE APPLICATION DOWNLOAD % SITE SEARCH 35% SOCIAL MEDIA 41% 14% STORE M-COMMERCE LOCATOR/ VIEW MAP 49% WATCH VIDEO 41% 41% RETAIL SUBMIT PROMOTION FORM 22% APPLICATION DOWNLOAD 51% JOIN/ SUBSCRIBE 60% PLACE CALL Campaign destinations represent the immediate click-through from creative to site, landing page, or application download. Data is based on the Top 250 Campaigns on Millennial Media s Network in November. Data is based on the Top 250 Campaigns on Millennial Media s Network in November. November Insights: Custom Landing Page took the lead as the top destination for brands on mobile and represented a 39% impression share on our network (Chart A). Retail brands in November were creating custom landing pages for Holiday Promotions to drive additional foot traffic in store as store locator/view map increased 18% month-over-month (Chart B). Application Download as a Campaign Destination experienced the largest increase of 9% month-over-month (Chart A). Transportation brands promoting their app shopping tools and Telecom advertisers promoting their bar code scan apps for the holiday shopping season contributed to this growth. Place Call as a post-click campaign action doubled month-over-month with 60% of campaigns on our network including this tactic. Automotive, Travel, Telecom, and Education verticals leveraged this action to drive immediate action with mobile consumers during Q4 with both holiday and winter weather related products and services (Chart B). Join/Subscribe as a post-click action experienced double digit growth with a 25% increase month-over-month. This increase is tied to Telecom and Retail brands retail promotion campaigns and the Dating vertical driving new customer acquisitions (Chart B). 4

5 Mobile Campaign Targeting Methods Campaign Targeting Mix CHART A Targeted Audience Mix CHART B 2% 53% BROAD REACH 47% TARGETED AUDIENCE REACH 19% 49% GEO DEMOGRAPHIC BEHAVIORAL AUDIENCE AUDIENCE TAKEOVER 30% Data is based on the top 250 campaigns on Millennial Media s network in November. GEO is defined as a campaign targeting method which includes geographic location, DMA, state, international country, etc. Data is based on the top 250 campaigns on Millennial Media s network in November. November Insights: Targeted-Audience campaign methods (GEO, Demographic, Behavioral Audience and Audience Takeover) increased 3% month-over-month with 47% of campaigns on our network leveraging these methods (Chart A). Broad Reach methods (Run of Network, Custom Subnet and Channel) represented 53% of the Campaign Targeting Mix in November these methods are recommended for broad reaching campaigns. Brands in the Dating and CPG verticals leveraged these methods to drive awareness of their products and services during a cluttered advertising season (Chart A). GEO as a targeting method experience the largest month-over-month growth of 9% and represented 39% of the Campaign Targeting Mix in November (Chart B). Regional Retail Department stores with holiday promotions, Entertainment brands with international movie releases and various Tourism boards promoting last minute holiday travel specials leveraged this highly-effective method last month. Behavioral Audience represented 19% of the Targeted Audience Reach in October (Chart B). Home security brands targeting the Moms and tech segments with product messages leveraged this method. 5

6 Summary & Reporting Methodology About Millennial Media Millennial Media is the proven leader in mobile advertising. With the largest mobile media audience in the U.S., Millennial Media uniquely offers brand advertisers the only set of specific, scalable audiences. Our ability to reach, target and engage consumers is unparalleled. As an innovative technology leader, our mobile decisioning, serving and mediation platforms are powering some of the largest companies in the media business today. The company is committed to growing the mobile advertising marketplace by becoming the preferred partner to all advertisers seeking to reach mobile consumers, all publishers and developers seeking to maximize ad revenue and all mobile operators seeking to further monetize their networks. For more information, please visit or follow us on Millennial Media was named the 2010 OnMedia Top Private Company in Digital Media and was awarded a 2010 Stevie Award (American Business Awards) for Most Innovative Company of the Year. About S.M.A.R.T. The Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T. ) delivers monthly insights on key trends in mobile advertising based on actual campaign and network data from Millennial Media, Inc. Millennial Media partners with major carriers, media networks and top-tier publishers to deliver the largest data set of any third-party U.S. mobile advertising network. As such, we are uniquely capable of reporting and analyzing the richest sets of carrier, device and campaign data collected over billions of monthly ad requests. Elevating and driving the whole mobile ecosystem forward is central to our company mission. to receive Millennial Media-related news, including Millennial Media s Mobile Mix and the Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.) report. Nielsen Reach Methodology & Disclaimer: Nielsen Mobile, a service of The Nielsen Company, is the world s largest independent provider of syndicated consumer research to the telecom and mobile media markets. Nielsen Mobile focuses exclusively on tracking the behavior, attitudes and experiences of mobile consumers. Their reports also provide up to seven years of data on internet, video, gaming, audio and advertising trends for mobile phone users. Mobile user behavior information is derived from general U.S. population samples under established and accepted rules. For more information, please visit Disclaimer for Custom Roll-up : This report is produced for the convenience of Nielsen clients requiring alternative aggregations of audience traffic. These custom roll-ups are user-defined and subject to redefinition and renaming upon client request and may be changed or restated at any point in time. Clients may use the data contained within these custom roll-ups to illustrate their unique business models or partnering relationships for internal analysis. Public use of this data must clearly state that this is nonstandard aggregation ( Source: Nielsen, Custom User-Defined Report, <Date> ) and cannot be compared to other custom reports or the syndicated reports on a rankings basis, including category level rankings. Nielsen does not allow for the double counting of traffic. Nielsen makes no claim as to the correctness of the custom aggregations but does certify the measurement traffic data as accurate. Millennial Media Methodology: Network reach is calculated from the count of unique users across our entire network. Millennial Media uses proprietary techniques to uniquely identify at least 75% of our user base persistently across our network and tracks the unique reach over the course of the month-long period. For the remainder, the unique user data is used to calculate the average frequency of views that a user consumes in a month. We apply that average frequency to the remaining impressions to determine our network-wide reach. Data provided is derived from Millennial Media server log activity for the time period indicated. Cost Per Engaged User (CPEU ) averages overall campaign spend against the number of unique users who engaged with the campaign creative. CPEU is derived by applying the overall media spend to the total number of users that engaged in any one of the actions which campaigns provided, such as expanding a rich media creative, visiting a landing page, watching a video, etc. For questions about the data in this report, or for recommendations for future reports, please contact us at 2010 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners. 6

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