Explore the customer relationship management role that mobile can play as part of a broader advertising campaign and the mobile operator business transition from communications services to a more holistic client service model. While it is now commonplace for billboards and television commercials to call on viewers to send a text to a short code, the growing popularity of location-based social networking services opens up the possibility of combining the mobile medium and the physical world in much more sophisticated ways

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3. Andy Vogel, SVP, Digital/Mobile Mobile Marketing Assoc. Board, and Chair of Mobile Publishing Cmte. IAB Board for Mobile Center of Excellence Tribune: Top 6 ComScore in traffic with 8 daily newspapers, including the Chicago Tribune and Los Angeles Times, 23 broadcast stations, including #1 news in LA, NYC, and Chicago 75+ apps, 30 + mobile websites, and over 200 concurent mobile messaging campaigns Founder of MIMA, ran digital sales and strategy for Journal Comm., and part of the initial start-up team at cars.com 3

4. Top Takeaways 4 Smartphones a near-majority. Nearly 60% of mobile consumers now have them, up more than two-fold since 2009. Mobile video becoming mainstream. 39% of smartphone users say they regularly watch video on their phones. Only 11% of all mobile users said they watched mobile video in 2009 Broad base of activity, Most 2009 mobile activities were of the obvious on-the go type – email, telephony, social media, gaming, and music. Today, a variety of 20+ activities show double-digit mobile usage. Mobile replacing the PC as the go-to device. Over 30% of mobile users prefer to get weather and listen to music on a phone instead of a computer. Tablet users prefer tablet to PC for video content on this platform. Industry standards are developing. The Mobile Marketing Assoc. and Interactive Advertising Bureau and Direct Marketing Assoc. are closely coordinating the release of advertising standards along with consumer best practices.

6. Evolving and relevant advertising platform

7. Multiple OS platforms with clear monetization distinctions

8. Preferred device for on-the-go activities such as weather, games, music, maps, and social networking

9. More male, younger, higher HH. Intenders skewing older

10. iPad is clear market share leader, few content consumption or monetization differences between platforms

11. Broad content consumption, but fewer “Killer Apps”

13. Smartphone User: Skews Male and Tops in All Under 50 Demos Huge with 25-34s 69% of that demo owns or uses a smartphone 42% of White mobile consumers 67% of AA mobile consumers 65% of Hispanic mobile consumers Base: Smartphone user N=1,973 QEA-D. Which best describes your ownership and/or usage of the following devices? I own a and use a smartphone or owned by someone else in home and I use a smartphone

14. Smartphone Rapidly Becoming like US - Intenders Skew Older and Female Rapid Transition Older demos moving quickly to smartphones and becoming a large addressable audience on the platform Base: Cellphone only, smartphone intenders Q1.1 Even if already owned, how likely is it that you or anyone in your household will purchase (for yourself) or receive one of the following within the next 12 months? Probably or definitely will purchase a smartphone

15. Tablet Data Highlights I’ve used a newspaper or magazine app (53%) Its my preferred device for reading (69% vs. PC, 58% vs. Newspaper, Magazine, or eReader) I ‘m happy with my tablet (77% top 2 box) I take it with me (42%) I share it (41%)

17. In the early stages iOS seems to be the dominant player, but lower-priced Android devices now making a volume play

18. Print potential

19. Usability and enhanced features are driving consumers to show a clear tablet reading preference. Advertising is compelling and continuing to evolve

20. Monetizable platform

22. 235+ million unique users5+ Billion Other Devices

24. Text Ads

25. Expandable Ad Units for iPhone and Android

26. Interstitials for iPhone and Android

27. Text Ads in SMS or MMS

28. Picture messaging in MMS

29. Pre-roll video

30. Post-roll video

31. Banner (Idle Screen)

32. Rich Media Ad Units (In App)

33. Static/Animated Banners

34. Text

35. Interstitials

36. Wallpapers

37. Interactive Ad UnitsOther Ad channels: Voice, Bluetooth, Search Matt Murphy/Margaret Meeker Top Mobile Internet Trends Presentation 2/11/11

38. Half of Your Audience Use Mobile After Seeing an Ad in Other Media Channel / Ads Seen: Look for More Info On: Look for More Info On: 40% 76% 58% 37% 69% 37% 37% 62% 57% 33% 53% 84% Any Channel Future of Mobile Advertising, 2010

39. Mobile Ads More Effective vs Other Media 14

40. Mobile Ad Campaign Effectiveness 15

41. Mobile Web On the Rise Android OS Source: Sharma Consulting (2010) Apple OS Source: Sharma Consulting (2010)

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43. Strong Mobile Trends for Leading Social Companies 18 Matt Murphy/Margaret Meeker Top Mobile Internet Trends Presentation 2/11/11

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45. 1 in 3 mobile search queries have local intent Mobile Influenced Sales & Engagements Find local store hours Search near My Location Get driving directions Find friends nearby Browse What’s Near Me Now Call a local business Locate a business on maps Source: Kelsey Group as presented by Google, 2o11 20

46. Upcoming Trends 21 Matt Murphy/Margaret Meeker Top Mobile Internet Trends Presentation 2/11/11

47. Upcoming Trends 22 Matt Murphy/Margaret Meeker Top Mobile Internet Trends Presentation 2/11/11

48. Upcoming Industry Standards MMA is in close coordination with IAB and DMA on joint standards creation 1st pass advertising unit guidelines slated for January 2012 MRAID (Mobile Rich Media Ad Interface Definitions) just released by Mobile Center of Excellence Board via IAB Consumer Best Practices via MMA Ad Serving Guidelines underway via Mobile Publishing Cmtevia MMA 23

49. Appendix 24

50. How To Approach Mobile Strategy Execute Validate Hypotheses Identify Goals Usage Behavior Content Strategy and Testing Platform Strategy Message Effectiveness Purchase Intent Consumer Attitudes Technology Adoption Distribution Paths Potential Partners Brand Building Consumer Engagement Promotion Direct Marketing Direct Sales Content Distribution Integrated Marketing/ Communication Plan Content Development Content Optimization Ad Optimization Understanding how mobile fits in to your overall media and communication strategy is key

51. Will Google’s Dominance in Search Translate to Mobile? 26

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53. Mobile Influenced Commerce 28 Source: Booz & Company, 2010

54. 1941 First Television Advertisement 29 Mobile Advertising has only existed for about 10 years