Hipcricket®:

2012 Mobile Advertising Survey Research Brief

Copyright 2012 Hipcricket®, a wholly-owned subsidiary of Augme®

Technologies, Inc. All Rights Reserved.

This research brief is for informational purposes only. Hipcricket makes no warranties, expressed or implied, in this document.

The names of actual companies or products mentioned herein may be

the trademarks of their respective owners.

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Research Brief 2012 Mobile Advertising Survey The 2012 Hipcricket Mobile Advertising Survey is a national survey designed to

provide insight into consumer behavior and attitudes toward mobile advertising. The

survey was conducted in June 2012 via email and is based on 650 respondents. It

was sponsored by New York-based Hipcricket.

Survey Overview and Respondent Profile The survey was completed by 650 respondents who were invited to participate via

email by Zoomerang, an online survey services provider. Respondents were:

Cell phone owners in the U.S.

Distributed across five age categories (18-24, 25-30, 31-35, 36-40, 41-45)

and four income ranges ($25,000-$50,000; $50,000-$75,000; $75,000-

$100,000; greater than $100,000)

50% male; 50% female

27% reside in the Northeast; 21% reside in the Midwest; 30% reside in the

South; 22% reside in the West

The margin of error is +/- 3.84%.

Of the respondents, all owned cell phones. Some 73 percent owned smartphones and

43 percent owned tablets.

Of the smartphone users:

o 43 percent owned iPhones

o 38 percent owned Android-based devices

o 16 percent owned BlackBerry devices

Key Findings

1. Affluent customers have significant interest in mobile advertising—

and making mobile purchases through mobile ads.

Affluent customers are more likely to have engaged with mobile ads:

55 percent of those who have clicked on a mobile advertisement have an

annual income of more than $75,000.

29 percent of those who have clicked on a mobile advertisement have an

income of more than $100,000.

45 percent of those with an income of more than $75,000 have made a

purchase as the result of a mobile ad.

2. Young (25-34) customers have the most interest and interactivity

with mobile ads.

The study found the most interest and interactivity with mobile ads among the 25-34

age demographic. Specifically:

70 percent have made a purchase as a direct result of a mobile ad.

58 percent would be willing to provide personal information via a mobile

website in return for a reward or coupon—twice as likely as those in the

45-54 year old category.

48 percent think more positively about their favorite brands after interacting

with them via their mobile device, significantly more than any other age

group.

3. Overall, consumers who are familiar with mobile ads are comfortable

making purchases or recommendations using them. But many still

haven’t viewed them.

Forty-six percent of smartphone owners have viewed a mobile ad—and a whopping

64 percent of those who have viewed an ad have made a purchase as a

result of mobile advertising. Of note: more than half have never viewed a mobile

advertisement on their phone.

The responses varied by sex: men were more likely to make a purchase as the result

of a mobile ad (68 percent vs. 58 percent).

There is a social—in the classic, “sharing” sense of the word—element to mobile

advertising too, as 45 percent of users have referred a friend to a product or service

as the result of seeing or engaging with a mobile ad. Men are more likely to refer a

friend as the result of a mobile ad than women (52 percent vs. 37 percent).

Consumers have viewed and engaged with a variety of types of mobile ads, primarily

mobile banner ads (70 percent) and SMS/text-based ads (44 percent).

Their primary means of interaction has been clicking/tapping an ad (38 percent),

followed by mobile coupon redemption (31 percent), clicking on a sponsored link in a

text message (29 percent), downloading an application (28 percent) or viewing a

mobile website (24 percent).

2. Context is still king. Offers need relevance for engagement.

For those who have yet to engage with a mobile ad, the reasons were varied—led

primarily by context: 43 percent stated the ads weren’t relevant to their interests

and 39 percent responded that “it did not appeal to me.”

Consumers would be more likely to engage with brands if they include a reward,

coupon or deal (58 percent). Many (44 percent) are willing to exchange personal

information in return for a reward, coupon or deal—yet, to date just 28 percent have

done so.

3. Despite this familiarity and positive results, major brands are not

engaging with consumers via mobile advertising … yet.

An overwhelming 74 percent of consumers say that their favorite brands are not

advertising to them on their mobile device—a significant missed opportunity.

These figures echo the sentiment of Hipcricket’s annual Mobile Marketing Survey,

which most recently (October 2011) showed when asked if any of their favorite

brands market to them via their mobile phone, only 9 percent replied “yes,”

essentially holding steady with figures from 2010.

4. Tablet owners want in.

Some 43 percent of respondents own a tablet (primarily iPad or Android-based

device). Of those, 28 percent are more inclined to engage on their tablet device than

their smartphone (18 percent).

About Hipcricket

Hipcricket, a wholly-owned subsidiary of Augme Technologies, Inc. (OTC.BB: AUGT),

is the one-stop mobile marketing and advertising company that empowers brands,

agencies and media properties to engage customers, drive loyalty and increase

sales. Hipcricket’s customers connect with consumers across every mobile channel,

including SMS, 2D/QR codes, mobile websites, advertising networks, social media

and branded apps. Hipcricket’s proven technology, strategic and marketing services

and experienced account management teams have provided measurable success to a

broad range of national and regional brand-name leaders (e.g., Macy’s, MillerCoors,

Nestle, Clear Channel) across an industry-leading 200,000+ campaigns. The

company has also created the first comprehensive mobile ad network that taps into

the buying power of the mass market with industry-leading capabilities to target

customers via location and highly-specific demographic information across SMS,

display, rich media and video.

Hipcricket is based in New York, with operations in Seattle, Dallas, Chicago, Atlanta,

Los Angeles, San Francisco, and Miami.