© Madhouse Inc.

The Role of the AgencyManaging Expectations and Delivering Realistic

Campaigns

Madhouse Inc.China's Largest and Most Intelligent Mobile Ad

Network

November 2008

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

The Role of the Agency

Mobile Marketing: Necessity VS. Novelty ???

How does one identify realistic/appropriate solutions?

How can creative be effectively executed on different media?

Mobile Marketing: Necessity VS. Novelty ???

How does one identify realistic/appropriate solutions?

How can creative be effectively executed on different media?

Ad Agency

Ad Campaign Creative and Production

Creative Impact

Media Agency

Ad CampaignMedia Planning and Buying

Measurable Result

Bluetooth

Bluetooth

Interactive SMS

Interactive SMS

Mobile Video

Mobile Video

Mobile Web Media

Mobile Web Media

2D Barcode

2D Barcode

PhotoRecognition

PhotoRecognition

Mobile Search

Mobile Search

Mobile Coupon

Mobile Coupon

Mobile IM

Mobile IM

Mobile SNS

Mobile SNS

GPS GPS

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

The Mobile Advertising/Marketing Enabler

We work closely with ad and media agencies to enable the best mobile marketing solutions for their clients.

Ad Agency

Ad Campaign Creative and Production

Creative Impact

Media Agency

Ad CampaignMedia Planning and Buying

Measurable Result

Ad Agency

Assess/access mobile solutions

earlier in creative process

Media Agency

Integrated Cross Media LeverageMeasurable Results

Maximize ROI

Mobile Marketing AdvisorMobile Marketing Trend and Implementation Training

Integrated Mobile Marketing SolutionsMobile Advertising Network

Delivering Realistic Mobile Marketing Solutions to Meet KPIs

Mobile Marketing AdvisorMobile Marketing Trend and Implementation Training

Integrated Mobile Marketing SolutionsMobile Advertising Network

Delivering Realistic Mobile Marketing Solutions to Meet KPIs

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

Mobile Media PlanningStep 1: Choose Target AudienceUser profile targetingGeography targetingContextual targeting Step 2: Set frequency capsROI: Measureable and manageable results throughout the campaign

Traditional Media PlanningStep 2: Select MediaEvaluate media based on relevancy and reach and create a media listStep 3: Define desired exposure level and create a media spot planROI: Estimated post-campaign

TV, Radio, Print, Outdoor,

Internet, DM…

Ste

p 1

: C

hoose a

Targ

et

Au

die

nce

Advancing the Media Planning Effort

Mobile media allows directly targeting desired audiences with the optimal frequency

A traditional media plan aims to achieve (hopefully) the best possible targeting of the desired audience through different media

Tra

dit

ion

al m

edia

pla

nn

ing

Vs.

Mo

bil

e m

edia

pla

nn

ing

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

About Madhouse Inc.

Founded in January 2006, Madhouse has 170+ employees in Shanghai, Beijing and Guangzhou Madhouse is China’s Largest and Most Intelligent Mobile Ad Network, providing cutting-edge mobile marketing solutions to join advertisers with mobile publishers to unleash the power of mobile media and advertising.

Founding Member and Board Director of MMA Asia Pacific (APAC)Chairman of Mobile Advertising Committee APAC, developed and released Mobile Advertising Guideline APAC 1.0 at 17 Dec 2007

Founding Member and Board Director of MMA Asia Pacific (APAC)Chairman of Mobile Advertising Committee APAC, developed and released Mobile Advertising Guideline APAC 1.0 at 17 Dec 2007

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

The Madhouse Approach

We work closely with ad and media agencies to provide comprehensive mobile marketing solutions for their clients.

Media Agencies

Media Agencies

Reseller Agents

Reseller Agents

Creative AgenciesCreative Agencies

Brand AdvertisersBrand Advertisers

SME AdvertisersSME Advertisers

Display Ad NetworkContextual Ad NetworkVideo Ad NetworkClient Media NetworkMessage Ad Network

* 25 patents pending for MadServing’s proprietary technology in serving and optimizing ads

SMS Interaction Bluetooth interaction2D BarcodeCross Media LeverageMobile CRM

Multi-trait TargetingPerformance

OptimizationVisual OptimizationFrequency Caps Tracking and

Reporting

Mobile Media Publishers• Mobile Internet Media• Client App Media• Carrier Media

Mobile Media Publishers• Mobile Internet Media• Client App Media• Carrier Media

Cross Media Resources

• Traditional Media (Outdoor, Print, Internet, Packaging, Stores…)

• Existing Customer Databases

Cross Media Resources

• Traditional Media (Outdoor, Print, Internet, Packaging, Stores…)

• Existing Customer Databases

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

Our Clients and Media Partners

more…more…more…

© Madhouse Inc.

Mobile Internet Advertising

+

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

Madhouse Enables Mobile Marketing

Massive User Base600+ million mobile users

155 million mobile Internet users

65,000 mobile internet sites in China

1,100 major mobile websites in MadNetworkCovering 75%+ mobile internet traffic

Intelligent Mobile Serving Platform Multi-trait User targeting Campaign/Ad performance optimization Visual optimization Frequency caps Ad tracking and reporting

Flexible Pricing Model Mobile Internet Display Ad Network

Mobile Internet Display Ad Network

Mobile VideoAd Network

Mobile VideoAd Network

Client MediaAd Network

Client MediaAd Network

MessageAd Network

MessageAd Network

Always-on,AlwaysPresentMedium

+

Contextual Ad Network

Contextual Ad Network

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

The Advantage of the Mobile Internet

传统互联网 无线媒体

Potential Audience (China)

273 million(Including Mobile Internet Users)

600+ million (155mm internet users

by end of 2008)

Interactivity Yes Yes

Content Richness HighLow

(until 3G)

User Attention Low High

24/7 Accessibility No Yes

Targeting Capability ContextualContextual / User ID / User

Agent / Location

Traditional Internet Mobile Internet

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

Madhouse’s Role in Mobile Ad Serving

When a user visits mobile websites on

MadNetwork

MadServing analyzes

the user profile/page content

Select the campaign that matches the

targeting criteria

Identify if the user already meets the frequency caps

Select the best performing banner

Select another

campaign

Select the optimal ad banner size

He/She will see a visually

optimized ad banner which is

targeted to meet his/her interests

NO YES

+

+

Wide Reach Optimal Ad Targeting & Delivery

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

Sample Case: Nokia - User profile Targeting

Nokia achieved multiple marketing goals through one campaign

4 user segments were shown different banners and communication programs to achieve different objectives:

Nokia Nseries Users

Nokia Non-Nseries Users

Non-Nokia High End Users

Non-Nokia Mid-low End Users

Customer Loyalty ProgramFree S60 Software Download

Up sell Program Product Feature Highlightswith Discount

Brand Switch Program Handset function comparison *users were asked different questions, varying by handset model, that highlighted their handset’s lack of features relative to Nokia phones.Market Education ProgramBrand/Product Quiz

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

Geography Targeting:Beijing, Shanghai, Zhejiang, Guangdong, Chengdu, Fujian, Tianjin

Sample Cases: High-end Consumer Targeting

User Device Profile Targeting:Retail Price: 3000RMB +Smart PhoneMusic PhoneFemale-oriented Phone

……

© Madhouse Inc.

Integrated Mobile Marketing Solutions

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

China Ad Spending Breakdown 2008

Cross Media Leverage

Source: GroupM

+ Mobile Internet Ad

Serving

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

Integrating Mobile Marketing Into Existing Channels

Cross Media Interaction Combination instantly adds always-on, always present element to any existing media; instant fulfillment for viewers + real-time feedback

Mobile Phone as a Digital HubThe mobile phone is the critical link between different forms of media i.e. traditional and digital, and should be utilized as such

CRM Integration/CreationMobile marketing can help improve understanding of customer behavior and play an important role in existing processes e.g. sampling, cross product selling

And More……

Mobile CRMMobile CRM

SMS Interaction SMS Interaction

Bluetooth Interaction

Bluetooth Interaction

2D Barcode2D Barcode

Always-on,AlwaysPresent

Tool

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

Sample Case ： Nike ZOOM Mobile + Cross Media Integration

Campaign of the Year @ Venice Festival

Shanghai – Beijing - Guangzhou

Integrated Bluetooth/SMS Interaction/Mobile Internetwith traditional channels to drive consumer engagement

© Madhouse Inc.

Key Takeaways

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

Key Takeaways

Formulate the right mobile strategy and solutions is challenging due to the variety of emerging mobile technologies and media and relative youth of mobile marketing in China

Mobile Marketing Enablers can help advise AD/Media agencies on entering the mobile arena, and has both the technological platform and other necessary resources needed to help agencies quickly get up to speed in the mobile arena.

Working with good Mobile Marketing Enablers will help generate both creative and operational synergies that will help provide integrated and differentiated mobile marketing and media solutions

The ability to provide mobile marketing solutions will become increasingly important in the future and working with Madhouse is the best means of entry in China

© Madhouse Inc. China’s Largest and Most Intelligent Mobile Ad Network

In Mad We Trust!