DECEMBER CONTENTS 2 Millennial Media s Mobile Landscape 3 Advertising Vertical Growth Q4 in Review 4 Mobile Advertising Engagement Data Q4 in Review Mobile Campaign Targeting Methods 6 Summary & Reporting Methodology Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T. )
Millennial Media s Mobile Landscape December 20 U.S. MOBILE INTERNET REACH (Reflects Nielsen data from November 20) U.S. MOBILE WEB 91,770,000* MILLENNIAL MEDIA 79,031,000* Millennial Media Reaches More than 8 out of Mobile Web Users *The Mobile Web number was extracted from the Nielsen Mobile Report: Standard Metrics (Internet Applications included), November 20, All Carriers. The Millennial Media number is a Nielsen Custom User-Defined Report. See Nielsen methodology and disclaimer information on page 6. U.S. REACH GROWTH 66.6 2.9 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 NOVEMBER 2009 NOVEMBER 20 MILLIONS 91.8 79.0 THE NEW MOBILE NORMS Campaign Effectiveness Smartphones vs. Feature Phones Campaign Effectiveness Mobile Norms Yearly Comparisons November 2007 December 20 40 30 20 0 17% 13% UNAIDED 7% 9% AIDED 39% 28% MOBILE AD 1% 12% PURCHASE INTENT 40 30 20 0 8% 8% % 8% 6% 11% UNAIDED AIDED 16% 14% MOBILE AD 31% % 11% MESSAGE ASSOCIATION 20% 8% 13% 13% PURCHASE INTENT SMARTPHONES FEATURE PHONES 2007-2008 2008-2009 2009-20 Smartphones defined as iphone, Android, Blackberry, Palm, Windows devices. Feature Phones defined as all other mobile phones. See InsightExpress methodology and disclaimer information on page 6. Insights: As brands continue to plan media buys for 2011, we wanted to highlight findings from InsightExpress Mobile InsightNorms study. The study reported on the growth of mobile campaigns and campaign effectiveness by device over the last three years. Compared to Feature Phone users, Smartphone users are most impacted by mobile campaigns, likely due to larger screen sizes and rich media offerings. However, the small discrepancy between the two types of devices across metrics indicates that mobile advertising can be effective, regardless of device (Chart A). Millennial Media is the only major mobile advertising company that has the audience reach across all Smartphone and Feature Phone operating systems. Year-over-year comparisons show that mobile campaigns in the last year have been more effective in capturing consumer attention (Mobile Ad Awareness) and educating them (Message Association). Other brand metrics have also stabilized over the last three years indicating that mobile is an established and effective advertising platform (Chart B). 2
Advertising Vertical Growth Q4 in Review December 20 Top Advertising Verticals Q4 20 Ranked by Spend Q3 Q4 VERTICALS Vertical Explosion Year-Over-Year Revenue Growth Q4 20/Q4 2009 VERTICALS GROWTH 2 3 1 9 8 6 4 7 1 2 3 4 6 7 8 9 TELECOMMUNICATIONS RETAIL & RESTAURANTS ENTERTAINMENT FINANCE AUTOMOTIVE DATING PORTALS & DIRECTORIES TRAVEL CPG EDUCATION AUTOMOTIVE RETAIL & RESTAURANTS ENTERTAINMENT TRAVEL FINANCE EDUCATION 623% 72% 274% 249% 201% 127% December & Q4 Insights: Telecom claimed the number one spot in the Q4 Top Advertising Verticals (Chart A). During the holiday season, multiple carrier brands and device manufacturers doubled-down their mobile buys, utilizing a combination of Broad and Targeted Reach strategies to create awareness of new mobile devices, namely Windows Phone 7 devices. Retail & Restaurants moved up one spot on the Top Advertising Vertical to the number two position in Q4 (Chart A) and experienced explosive growth of more than 72% year-over-year (Chart B). Retail & Restaurant advertisers leveraged mobile to drive foot traffic with Store Locator as the primary post-click campaign action. Entertainment has consistently placed in the top 3 advertising verticals throughout 20 and has experienced triple digit year-over-year growth on our network (Chart B). Brands in this vertical leveraged Rich Media video capabilities to promote new movie releases and holiday sales of DVDs in Q4. In the number four spot, Finance increase its standing by five spots in Q4 (Chart A) and has grown over 200% year-over-year (Chart B). Banking brands turned to mobile to promote new services and drive application downloads while insurance advertisers utilized Place Call as the primary post-click campaign action to drive lead generation. Automotive brands are heavily investing in a persistent mobile web presence demonstrated by the 623% growth year-over-year (Chart B). Mobile websites and applications created by automotive brands are extremely robust and enable customers to conduct research, identify retail promotions, find a local dealership and schedule vehicle service appointments. DID YOU KNOW? Android surpassed ios as the largest Smartphone OS on Millennial Media s network in December? To learn more about Smartphone sales and popular mobile devices, download Millennial Media s December 20 Mobile Mix TM Report. Click here to download now! http://www.millennialmedia.com/research/ 3
Mobile Advertising Engagement Data Q4 in Review December 20 Campaign Destination Mix Q4 20 Post-Click Campaign Action Mix Q4 20 16% 30 2 30% 3% 49% TRAFFIC TO SITE CUSTOM LANDING PAGE APPLICATION DOWNLOAD 20 1 17% 23% % 22% 22% 24% 22% 11% 14% 0 APPLICATION DOWNLOAD JOIN/ M-COMMERCE SUBSCRIBE PLACE CALL RETAIL PROMOTION SITE SEARCH SOCIAL MEDIA STORE LOCATOR/ VIEW MAP SUBMIT FORM WATCH VIDEO Numbers in parentheses represent a month-over-month change. Campaign destinations represent the immediate click-through from creative to site, landing page, or rich media. Data is based on the Top 20 Campaigns on Millennial Media s Network. Numbers in parentheses represent a month-over-month change. Data is based on the Top 20 Campaigns on Millennial Media s Network. December & Q4 Insights: Traffic to Site represented 49% of the campaign destinations during the holiday season in 20 (Chart A). Advertisers are investing in their mobile sites with features and functionality as robust as their online sites. The Travel vertical has taken a page from Retail launching full-service mobile sites which allow customers to research and transact on the go. Both the Travel and Retail verticals contributed to the 4% growth of m-commerce quarter-over-quarter (Chart B). Custom Landing Page was the second most popular campaign destination in Q4 with a 2% increase quarter-over-quarter, representing 3% of the impression share (Chart A). Telecom brands created custom landing pages to promote the release of new products, services and holiday promotions. Store Locator as a post-click campaign action accounted for 22% of the campaign actions in Q4, a 7% increase quarter-over-quarter (Chart B). Auto and Retail verticals used store locator to drive foot traffic to retail locations for end-of-year sales. Social Media had the second-highest growth of 6% quarter-over-quarter, and accounted for 14% of the campaign actions in Q4 (Chart B). Campaigns with the goal of increased brand awareness or affinity utilized social media as a post-click campaign action. CPG brands used new product launches to drive consumer engagement via their social media presence in Q4. 4
Mobile Campaign Targeting Methods December 20 Campaign Targeting Mix Q4 20 Targeted Audience Mix Q4 20 % 7% BROAD REACH 43% TARGETED AUDIENCE REACH 19% 42% DEMOGRAPHIC GEO BEHAVIORAL AUDIENCE AUDIENCE TAKEOVER 34% GEO is defined as a campaign targeting method which includes geographic location, DMA, state, international country, etc. Data is based on the Top 20 Campaigns on Millennial Media s Network. December & Q4 Insights: Targeted Audience Reach campaign methods (GEO, Demographic, Behavioral Audience and Audience Takeover) continued to resonate with advertisers in Q4 with 43% of campaigns leveraging these targeting methods (Chart A). Broad Reach methods (Run of Network, Custom Subnet and Channel) represented 7% of the Campaign Targeting Mix in Q4. Dating, Entertainment and Telecom leveraged these methods to increase awareness of new products and services during the holidays, a peak advertising time (Chart A). DID YOU KNOW? A recent survey found 87% of retailers believe that shoppers can easily find a better deal when using their mobile devices. ~ Mobile Commerce Daily, 1/11 Behavioral Audience, represented 19% of the Targeted Audience Reach in Q4, a 4% increase quarter-over-quarter (Chart B). This targeting method allows advertisers to customize their message to a customer who is known for engaging with similar products or brands. Travel brands targeted moms and business traveler segments with convenient booking tools to accommodate their busy lifestyle and a popular beverage company targeted college students with a new product campaign. Demographic as a targeting method experienced the largest quarter-over-quarter growth of % and represented 42% of the Campaign Targeting Mix in Q4 (Chart B). Restaurant brands with new menu items and various Retail advertisers leveraged demographic targeting to effectively achieve their diverse campaign goals.
Summary & Reporting Methodology December 20 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 http://www.millennialmedia.com or follow us on Twitter @millennialmedia. Millennial Media was named the 20 OnMedia Top Private Company in Digital Media and was awarded a 20 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 www.nielsenmobile.com. 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. InsightExpress Methodology The study used norms developed in online ad testing as a benchmark to draw conclusions around the performance of advertising on mobile devices. InsightExpress compared the two using InsightNorms, the company's normative database containing 100 online ad effectiveness campaigns and 10 mobile ad effectiveness campaigns. Mobile InsightNorms are based on InsightExpress' flagship mobile brand effectiveness solution, Mobile AdInsights, which employs a test/control design to measure the brand impact of mobile advertising campaigns. 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 7% 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 research@millennialmedia.com. 2011 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners. 6