MOBILE ADVERTISING MARKETPLACE REPORT

Q4 2014

2

3

About the report

• The Mobile Advertising: Marketplace Report provides market data from real-time bidded auctions for mobile ad impressions, aggregated from mobile applications, advertisers, and demand side platforms on MoPub Marketplace, one of the world’s leading advertising exchanges for mobile apps.

• MoPub Marketplace is a real-time bidding exchange for mobile ads, where advertisers, agencies and their trading desks, and demand side platforms can bid on ad inventory from thousands of mobile application publishers in an efficient, real-time market. MoPub Marketplace data is representative of over 170 billion monthly ad requests, more than 1 billion unique devices, and 140+ demand-side platforms.

• The data reflected here is solely representative of exchange-traded media on MoPub Marketplace and does not include any ad network or ad network mediation data.

• The information contained herein is based on internal data and data from a third-party that we do not control, so could be subject to errors and omissions.

• Questions, comments, or data inquiries about this report can be sent to MoPub-datareports@twitter.com

© MoPub, Inc. 2015. All Rights Reserved.

Twitter, Inc., MoPub, Inc, the Twitter logo and MoPub logo are trademarks or registered trademarks of Twitter, Inc. and MoPub, Inc. respectively. All other trademarks and logos are the property of their respective owners. This data is provided for information purposes only and while efforts are made to ensure accuracy, errors may arise.

4

Summary Highlights

• Brand Spend: Brands arrive on mobile programmatic in a big way, place majority of spend leading up to holidays

• Growth in Ad Prices: Mobile publisher eCPMs see steady increases, indicating advertisers are finding increasing value in mobile app inventory

• Interactive Formats Perform Better: Video and Rich Media formats help publishers monetize inventory at the highest rates

5

Brand spend arrives on mobile, overtaking performance in week leading up to holidays

Brands have recognized the value of reaching users on mobile and have continued to spend more through this medium. In contrast to 2013 when brand spend hovered closer to 20%, it accounted for the majority of spend for parts of December leading up to the holidays.*Brand spend measured based on spend from top 25 adomains

0%

20%

40%

60%

80%

Dec. 4

– 10

Dec. 1

1 – 17

Dec. 1

8 – 24

Dec. 4

– 10

Dec. 1

1 – 17

Dec. 1

8 – 24

BrandPerformance

Brand vs. Performance Spend2013

Brand vs. Performance Spend2014

Perc

enta

ge o

f Ad

Spen

d on

MoP

ub

6

Publishers saw more diverse spend in Q4 with brands outspending performance advertisers in top games like Trivia Crack, #1 overall in Apple App Store

Performance46% Brand

54%

Etermax’s Trivia Crack, the #1 overall app in the Apple App Store, saw the majority of their ad impressions paid for by brands throughout December. During the week leading up to Dec. 25, brands significantly outspent performance buyers.

Etermax % of Revenue: Brand vs. Performance December 2014

Etermax % of Revenue: Brand vs. Performance December 18-24 2014

% o

f Rev

enue

0%

10%

20%

30%

40%

50%

60%

70%

80%

Dec. 18 Dec. 19 Dec. 20 Dec. 21 Dec. 22 Dec. 23 Dec. 24

PerformanceBrand

72% 75% 69% 64% 68% 70% 69%

28% 25% 31% 36% 32% 30% 31%

7

Ad pricing continues to grow, indicating advertisers are finding increasing value in mobile app inventory

The MoPub Marketplace saw considerable year-over-year percentage gains in eCPM, signaling YoY strength in the mobile advertising economy.

Q4

20132014

Q4 Monthly eCPMs 2013 – 2014

+14.7%

$

$$

$$$

8

Publishers achieve better monetization through interactive ad formats

Rich media and video formats are helping publishers monetize inventory at higher rates. Publishers who introduced Native ads in Q4 2014 also cited an ability to increase ad revenue while maintaining customer satisfaction.

Q4 14 eCPM

Non-VideoVideo

Interstitial Q4 eCPM: Video vs. Non-Video

Q4 14 eCPM

Non-MRAIDMRAID

Banner Q4 eCPM: MRAID vs. Non-MRAID

+33.4% +29.5%

$

$$

$$$

$

$$

$$$

$$$$

9

Gaming outperforms other top categories in eCPM and CTR

Gaming leads the pack in terms of both eCPM and CTR performance across top mobile app categories. Entertainment and sports round out the top three for eCPM while entertainment and utilities rank second and third for CTR, respectively.

Social Networking

Entertainment

Gaming

Sports

Lifestyle

Health & Fitness

Utilities

News

eCPM by Category Q4 2014

Social Networking

Entertainment

Gaming

Sports

Lifestyle

Health & Fitness

Utilities

News

CTR by Category Q4 2014

$ $$ $$$ $$$$ % %% %%% %%%%

10

About MoPub

MoPub is one of the world’s leading ad servers for mobile application publishers, designed to drive more ad revenue through a single solution. We offer a sophisticated, full-featured monetization platform for mobile app publishers that combines real-time bidding, ad serving, cross-promotional capabilities and ad network mediation into one, easy-to-use platform. Our real-time bidding exchange, MoPub Marketplace, gives app publishers the power and flexibility to customize their monetization strategy for their business goals.

MoPub was acquired by Twitter, Inc. in 2013.

For more information, please visit www.mopub.com and follow MoPub on Twitter at www.twitter.com/mopub.

For specific data inquiries, email mopub-datareports@twitter.com.