mobile ads trends in 2012-2013

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MARCH 2013

2012 Global TrendsCHART A

Source: Millennial Media, 2012.

Manufacturers around the world released dozens of new mobile devices in 2012, at a number of different sizes and price points, with a number of new functions and features. The infrastructure to support these new mobile devices also increased throughout the year, providing the platform for enhanced mobile features and use.

Device ManufacturersConsumers evolved the way they interacted

with mobile in 2012. As consumers across the world adopted new devices, or added a second device to their life, users increasingly relied on and engaged with mobile devices in different ways throughout the day.

Consumers

In Southeast Asia, phones with bigger screens grew an average of 63% a month in 2012.

Advertisers in North America leveraged data to reach real-world audiences, such as Moms, Sports Fans, and Gadget Geeks.

Approximately 46% of Entertainment campaigns used social media actions.

85% of tablet owners use their devices while watching TV.

Advertisers in the Southeast Asia region invested in hyper-local targeting in 2012 – campaign spend grew at 233% a month.

As consumer and manufacturer trends merged and developed, the mobile advertising opportunities for both advertisers and developers evolved in 2012.

What they mean for Mobile AdvertisingAdapt Mobile Ads to

Shorter Use Sessions Mobile is Always On

Gameification Across Verticals

Increased Rich Media Engagement

Mobile-Optimized Experiences

Tablet-Sized Ads

Audience Targeting & Intelligence

Socialization

Multi-Screening

Hyper-Local TargetingMore Video Viewing

There are More Devices than Humans

on the Planet

Content Contributors

More Frequent, but Shorter,

Mobile Sessions

Increased Screen Size

Increased Availability of Devices at

Decreasing Price Points

Increased Mobile Infrastructure – Better Speed & Connection

Mobile behavior changes throughout the day; with mobile primetime from 4 pm to midnight.

2012 Global Mobile Trends

Source: Online Publishers Association, 2012.

Utliized in 64% of Product Launch / Release Campaigns.

Retail & Restaurants was the number one vertical on the Top 10 Global Brand Verticals on the Millennial Media platform in 2012, growing 106% year-over-year to move up and into that position from 2011 (Charts B & C). Retail & Restaurant brands made up 16% of the total brand advertiser campaigns in 2012 (Chart D). These advertisers ran mobile campaigns year-round which drove consumers to both their retail and online stores.

Health: Fitness & Wellness was the fifth largest growth vertical on our platform after seeing large increases in year-over-year spend both in 2012 (281%, Chart C) and 2011 (229%). Advertisers in this vertical invested in mobile’s ability to target audiences and deliver relevant messages to mobile users interested in health living content.

Travel showed a 495% year-over-year increase to move up to the seventh largest brand vertical on our platform in 2012 (Charts B & C). Travel brands, such as hotels, booking sites, and airlines ran mobile campaigns year-round to motivate consumers to plan and book their vacations for any season, often through their branded applications. Travel campaigns made up 9% of total brand advertiser campaigns on our platform in 2012 (Chart D).

Twelve verticals experienced triple-digit growth on our platform in 2012 (Chart C). Six of these verticals are not in the list of Top 10 Brand Verticals on our platform. This set of emerging verticals has grown their investment in mobile advertising, as others have grown from an already established base of spending.

Insights:


RETAIL & RESTAURANTSENTERTAINMENTTELECOMMUNICATIONSFINANCEAUTOMOTIVECPG / FMCGTRAVELTECHNOLOGYEDUCATIONPORTALS & DIRECTORIES

123456789

10

2012

2341579

1086

2011CATEGORIES

Top 10 Global Brand VerticalsRanked by SpendCHART B

Source: Millennial Media, 2011 & 2012.

MARCH 2013

Mobile Vertical Spending in 2012

VERTICALS GROWTH

Vertical ExplosionYear-Over-Year Spend – 2012/2011CHART C

Source: Millennial Media, 2011 & 2012.

GOVERNMENT SERVICES

EMPLOYMENT

TRAVEL

PERSONAL & HOME SERVICES

HEALTH: FITNESS & WELLNESS

ENERGY & POWER

CPG / FMCG

ENTERTAINMENT

AUTOMOTIVE

TELECOMMUNICATIONS

RETAIL & RESTAURANTS

REAL ESTATE

860%

523%

495%

461%

281%

265%

235%

224%

193%

143%

106%

103%

Top 10 Global Brand Verticals asPercent of Total Brand Business Count of CampaignsCHART D

16%

14%

14%

12%

3%

3%2% Retail & Restaurants

TelecommunicationsFinanceEntertainmentTravelAutomotiveCPG / FMCGTechnologyEducationGovernment ServicesOthers9%

7%

6%

14%


Source: Millennial Media, 2012. Data is based on the Top 3,000 campaigns on Millennial Media’s Platform in 2012.

RETAILPROMOTION

ENROLL / JOIN /SUBSCRIBE

STORE LOCATOR /VIEW MAP

WATCH VIDEOPLACE CALLAPPLICATIONDOWNLOAD

SITE SEARCHMCOMMERCE SOCIAL MEDIA

Post-Click Campaign Action MixCHART E

Store Locator / View Map was included as a Post-Click Campaign Action in 21% of campaigns on our platform in 2012 (Chart E). Restaurant advertisers utilized the unique Store Locator / View Map function mobile provides. A consumer’s location was pinpointed through a maps application and then showed the proximately to brand locations.

In 2012, 16% of all advertisers on the Millennial Media platform integrated m-Commerce experiences into their campaigns (Chart E). Entertainment advertisers created campaigns that promoted new motion picture or DVD releases and then provided a link to purchase tickets or the DVD.

Brand Awareness represented 14% of Advertisers’ Campaign Goals on our platform in 2012 (Chart F). Travel advertisers ran mobile campaigns aimed to keep their brand name top of mind with consumers to drive hotel stays and trip planning. In 2012, Site Traffic made up 14% of all Advertisers’ Campaign Goals (Chart F). Car Manufacturers heavily utilized the “learn more” or “site search” functions in their campaigns to drive consumers to their webpages where they could explore the many vehicles and features offered.

Insights:


2012 Mobile Advertising Trends :Campaign Engagement Methods

MARCH 2013

0%

10%

20%

30%

40%

37%

19% 18%9% 9%

29%21%

16%16%

Sustained In-Market PresenceBrand AwarenessSite TrafficProduct Launch/ReleaseRegistrationsIncreased Foot Traffic

Source: Millennial Media, 2012.Data is based on the Top 3,000 campaigns on Millennial Media’s Platform in 2012.

Advertisers’ Campaign GoalsCHART F

39%

14%14%

12%

12%

10%

Site Traffic increased 13% year-over-year as more advertisers wanted to drive consumers to learn more about their brand.

Did You Know?of CPG / FMCG campaign spend on our platform included some form of location-based targeting.40%



2012 Mobile Audience Trends MARCH 2013

Brand advertisers on our platform leveraged audience targeting technology to make sure their messages were delivered to the right consumers at the right time. Of the audiences targeted by brand advertisers on our platform in 2012, the 10 most often targeted audiences are shown in Chart G.

Moms were the 10th most targeted audience by brand advertisers on our platform in 2012 (Chart G). Moms are an increasingly active mobile audience, and were most frequently targeted on our platform in Q3 as Moms prepared their kids to go back to school for a new year.

On the Millennial Media platform in 2012, Small Business Decision Makers were the 5th most frequently targeted audience (Chart G). Small Business Decision Makers were often targeted in the first and fourth quarters of the year, likely around fiscal year budget spending needs.

In 2012, Avid Shoppers were the 6th most targeted audience on our platform (Chart G). Avid Shoppers were most frequently utilized as an audience targeting segment by Retail advertisers in Q4, likely in preparation for the holiday shopping season.

Insights:

Top Targeted Audiences CHART G


Mobile Switchers

DIYers

Small BusinessDecision Makers

IT Decision Makers

Gadget GeeksAvidShoppers

Business Travelers

Vacationers In-Market Auto Buyer

Moms

CAMPAIGN HIGHLIGHT:ADIDAS

To download the full campaign summary, visitwww.millennialmedia.com/advertise/campaign-successes

GOAL:Drive foot traffic to New York City’s Penn Station to view an Adidas “Light You Up” promotional light show.

STRATEGY:Adidas, in collaboration with Mullen’s medihub, worked with Millennial Media to target mobile users and invite them to a light show event featuring Argentinian soccer player Lionel Messi, while promoting the launch of the new Adidas Adizero F50 soccer cleat. Adidas utilized Millennial Media’s targeting capabilities to reach thousands of mobile device users, across platforms, within a 3-mile radius of Penn Station in the hours prior to the event.

“With the addition of mobile advertising for the “Light You Up” event promotion, Adidas was able to reach local users with a relative and time sensitive message and drive foot traffic to the event.” ~ Gina Preziosa, VP, Group Media Director, mediahub/Mullen

In 2012, dozens of new smartphone and tablet devices entered the mobile market, in addition to new versions of existing devices. Chart I highlights a few of the key new devices that were introduced into the mobile market in 2012. In November 2012, the iPad mini entered the market as Apple’s first 7-inch tablet. The Samsung Galaxy Note II was released in Q3 of 2012, an upgrade to the original Galaxy Note, one of the first mobile phones considered a smartphone/tablet hybrid, which some term a “phablet.”

Games were the number one application category on our platform in 2012, maintaining the position from 2011 (Chart H), mirroring that of app stores, such as iTunes and Google Play.

Highlights of Device & Developer Trends:


MARCH 2013

2012 Device & Developer Trends

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10

12348–65–7

CATEGORIES

GamesMusic & Entertainment

Mobile Social MediaCommunications

Productivity & ToolsScience & Technology

SportsNews

Books & ReferenceWeather

Top 10 Application CategoriesRanked by ImpressionsCHART H

20112012

Source: Millennial Media, 2011-2012.

2012 Device IntroductionsCHART I

Windows Surface TabletOCTOBER 2012

Apple iPad miniNOVEMBER 2012

HTC One XAPRIL 2012

Nokia Lumia 900JANUARY 2012

Kindle Fire HDSEPTEMBER 2012

Apple iPhone 5SEPTEMBER 2012

Samsung Galaxy Note IISEPTEMBER 2012

Nokia Lumia 920NOVEMBER 2012

Samsung Galaxy S3MAY 2012

Google Nexus 7JUNE 2012

Source: Public news outlets, 2012.


MARCH 2013

2012 Developer Trends

In 2012, Finance, Dating, and Entertainment were the top three brand verticals using our self-serve tool mMedia.

Device MixRanked by ImpressionsCHART L CHART M

75%

20%

5%

68%

15%

17%

Source: Millennial Media, 2011-2012.Smartphone data does not include what could be considered Smartphones running proprietary Operating Systems, e.g. Samsung Instinct, LG Vu.

SmartphonesFeature PhonesNon-Phone Connected Devices

2012 2011


Top 5 Tablets Ranked by ImpressionsCHART N

Apple iPad* Amazon Kindle Fire*Samsung Galaxy Tab*

1 2 3

Motorola Xoom

5

Acer Iconia

4

* Ranked in the top 20 among all mobile devices.

OS MixRanked by ImpressionsCHART J CHART K

48%

3% 1% 1%2%

16%

32%

47%

16%

33%

Source: Millennial Media, 2011-2012.

AndroidiOSBlackBerry OSWindowsSymbian

2012 2011

In 2012, the OS mix on our platform remained relatively unchanged from 2011 (Charts J & K). The Android operating system led the OS mix on our platform, representing 48% of impressions. iOS was the second largest OS on our platform in 2012 with 32% of the impression share.

Non-Phone Connected Devices increased five percentage points year-over-year to represent 20% of impressions we saw on our platform (Charts L & M). The growth of this category is largely attributed to the increased adoption of tablet devices.

Highlights of Device & Developer Trends:

For more information, visit: www.mmedia.com

Mobile Audience Solutions – Targeting solutions built using Millennial Media’s proprietary technology and access to diverse volumes of data. Millennial Media’s platform accesses and analyzes data – Location, Social, Interest and Mobile – to provide a unique, multi-dimensional view of individual profiles. We call this our Relevance Graph. This view gives us deep insight into what is relevant to individuals at any given moment. Because the Millennial Media platform operates in real-time, the Relevance Graph, is responsive to every shift in data, continually refreshing audience segments for our Mobile Audience Solutions as individual interests, activities and needs change.

Cross-Platform – Pertaining to multiple devices (smartphones, tablets, feature phones, non-phone connected devices), carriers (AT&T, Verizon, Vodafone, etc.), or platforms (iOS, Android, BlackBerry, Windows Phone, Symbian, etc.). Millennial Media is cross-platform – or “platform agnostic” – because we do not focus on one single OS or device type. This enables advertisers to reach as many mobile users as possible, regardless of their mobile device or carrier of choice.

Developer – Provider/creator of mobile applications and sites. Developers range from large entities (brands, portals, news sites, etc.) to individuals who focus on just a handful of applications.

Feature Phone – Any web-enabled mobile phone that is not a smartphone.

Impression – A count of the number of times an ad unit appears on a mobile device.

Interactive Video – A high-impact video ad layered with interactive features that deliver a uniquely mobile, actionable experience to customers.

Inventory – The ad space available on mobile websites and applications.

Non-Phone Connected Device – A non-phone mobile device. This includes tablets, gaming devices, e-readers, MP3 players, etc.

Post-Click Campaign Action – The action a marketing campaign is driving the customer to take once an ad is viewed (i.e., Place Call, Download Application, View Map, etc.).

SDK – Software Development Kit. A tool that enables developers to seamlessly integrate mobile advertising into their applications, thus monetizing their apps. Developer partners on Millennial Media’s platform download and integrate our SDKs (available for a variety of operating systems – iOS, Android, Windows Phone, etc.) to gain access to the ads run by our advertising partners.

Smartphone – Any web-enabled and application-enabled mobile phone that runs on an operating system and offers the user more advanced capabilities beyond just voice and mobile web access.

Vertical – The classification of advertisers by industry.

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S.M.A.R.T.™ Glossary of TermsMARCH 2013

9

Summary & Reporting Methodology

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©2013 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners.

About Millennial Media

Millennial Media is the leading independent mobile advertising and data platform. Our technology, tools and services help app developers and mobile website publishers maximize their advertising revenue, acquire users and gain audience insights. Our platform also enables us to offer advertisers powerful Mobile Audience Solutions (MAS) that utilize our significant scale, sophisticated targeting and uniquely engaging creative capabilities to deliver meaningful results.

About S.M.A.R.T.™

The Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™ delivers regular insights on key trends in mobile advertising based on actual campaign and platform data from Millennial Media.

Visit www.millennialmedia.com/mobile-intelligence to sign up to receive Millennial Media-related news including the Mobile Mix™ report, the Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™ report, and the Mobile Intel Series.

For questions about the data in this report, or for recommendations for future reports, please contact us at [email protected].

MARCH 2013

mobile ads trends in 2012-2013

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