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Industry updates on key mobile trendsWEEK ENDING 8/17/2012

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Mobile Trends More than a dozen big name retailers, including Target, Walmart, Best Buy, 7-Eleven and CVS have formed a new

company called Merchant Customer Exchange (MCX), a mobile payment network that will let customers pay by a mobile phone application at participating retail stores, supermarkets, restaurants, and gas stations. The added push to create mobile wallets is due to the expectation that mobile-payment transactions are expected to surge to nearly $600 billion world-wide by 2016, up from $172 billion in 2012, according to Gartner Inc. The retailers participating believe they can create a system more attractive to consumers than Google’s NFC Wallet or Isis.

Mobile ad network InMobi recently released the US mobile Media Consumption Report for Q2, highlighting that media consumption on mobile devices has outpaced TV for the first time. Attached to the weekly email is an infographic covering key insights, but also see below: – U.S. consumers are engaging in mobile activities more often and consistently throughout the day. 71% use mobile search while

64% use mobile Internet.– U.S. consumers are often in casual settings when using their mobile device, with 77% most often lying in bed, 70% watching TV

and 65% waiting for something.– On average, women access their mobile device more than men. For example, 84% of women access a mobile device while in

bed compared with 70% of men and 40% of women also access their mobile device while shopping compared with 26% of men.

TOP MOBILE & TABLET ACTIVITY – WEEK ENDING 8/17/2012

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Mobile Trends (cont.) In July, Performics saw new highs in mobile paid search impressions and clicks as a percentage of total clicks

(desktop + mobile) for our aggregate client group. Additionally, mobile CTRs—especially tablet CTRs—continue to outpace desktop, and mobile CPCs remain below desktop. See below for our latest mobile paid search benchmarks: (Performics Blog)– Mobile impression share continues to grow every month in 2012, and is up 137.9% year-over-year. Mobile devices

(smartphones) took more July impression share (18.2%) than tablets (7.4%).– Mobile clickshare also peaked in July, at 31.8%. Of the 31.8%, mobile devices (smartphones) took 20.6% clickshare, while

tablets took 11.2%.– CTRs by device rank, in order from lowest to highest: desktop, mobile devices (smartphones) and tablets. In particular, tablet

CTRs are up 38.7% year-over-year.– In July, mobile device (smartphone) CPCs were 52.1% of desktop, and tablet CPCs were 77.7% of desktop. Mobile device and

tablet CPCs actually dropped from June (-18.8% and -7.1%, respectively). We believe that mobile CPCs have remained low, and have recently fallen, because more advertisers are creating custom mobile device and tablet experiences, as well as separating their desktop, mobile device and tablet search campaigns.

TOP MOBILE & TABLET ACTIVITY – WEEK ENDING 8/17/2012