GETTING TO GRIPS WITH MOBILE

Gavin Stirrat, MD EMEA gavin@millennialmedia.com @gavjs

December 2011

MOBILE DISPLAY ADVERTISING MARKET SHARE

Independent Founded in 2006 by mobile,

advertising, and media innovators No operating system bias Platform and device agnostic Listed on NYSE in March 2012

Mobile Focus Not part of a major PC internet portal

or search engine We don’t sell handsets or own an app

store Mobile advertising is all we do

Industry Insight Monthly SMART and Mobile Mix

reports are widely sourced, with more than 3000 press and analyst references

Millennial Media

Agenda for this session

￭Getting to grips with mobile

￭ The world is changing

￭Millennial facts and figures

￭ Dive into finance

￭How brands are using mobile

￭Q&A

Putting Mobile in Context

Source: Chetan Sharma Consulting, April 2012

Population in billions % Penetration

Rapidly shrinking adoption cycles

Source: Apple

Global Units Shipped (000s)

Quarters after launch

Mobile overtaking PCs

Source: Morgan Stanley

Mobile media day

20

25

30

35

40

45

50

6-9am 9am-12pm 12-3pm 3-6pm 6-9pm 9pm-12am

Aver

age

enga

gem

ent s

core

mobile media TV Newspaper / magazine Radio PC / laptop

Can you score each media in terms of your attention level out of a total of 100?

Source: IAB’s Mobile & the Media Day Study, Jan 2011

• Average of 18 mobile media occasions per day

• 69% of users access content through their browser

• Mobile is an evolving companion presenting different opportunities at different times of the day

• 40% of respondents are more likely to respond to an ad on their mobile

• 27% use their mobile as their preferred media of choice

Smartphone ownership by OS

Source: Millennial Media 2011

Delve into finance

Industry Sector Market Shares

• Finance 16%• Consumer Goods 15%• Entertainment & the media 12%• Travel & transport 10%• Retail 10%

Top 5 Online Advertisers H1 2011

Source: IAB / PwC mobile ad spend survey 2011

Top 5 Online Advertisers H1 2011

Change in Industry Sector Market Shares 10-11

Source: IAB / PwC mobile ad spend survey 2011

£15.4mFinance Ad-Spend 2010

Finance Ad-Spend 2011£20.9m

36% YOY Growth

£83mAll sectors Ad-Spend 2010

All Sectors Ad-Spend 2011£203m

145% YOY Growth

User demographics

>£16k £16k>£45k £45k>£65k £65k+

Source: comScore/Millennial Media Mobile Finance Study 2011

37% of mobile subscribers who access financial services via mobile, also own a tablet or e-reader.

2nd device ownership

22% of all mobile subscribers also own a tablet or e-reader.

Source: comScore/Millennial Media Mobile Finance Study 2011

Mobile Finance Access

Mobile banking content is accessed the most frequently, but mobile finance users find value in accessing all types of finance content on their mobile devices.

Source: comScore/Millennial Media Mobile Finance Study 2011

Mobile Finance Access

The majority of mobile finance users access content via browser, yet interactions with apps are rapidly increasing

and remain critically important.

Source: comScore/Millennial Media Mobile Finance Study 2011

2011 Finance Vertical Mix

Source: Millennial Media 2011

Finance Advertisers’ Campaign Goals Vs All Sectors

Source: Millennial Media 2011

Finance Post-Click Campaign Action Mix Vs All Sectors

Finance Advertisersover-Index on Place Call& Enroll/Join/Subscribe

Finance Advertisersdo not spend heavily on local or brand activities

Source: Millennial Media 2011

2011 Verticals Year-in-Review

Source: Millennial Media 2011

Conclusions

Ad Spending Follows Consumer Behaviour

￭ Consumer behaviour has evolved as a result of Smartphone and tablet penetration

￭ How brands connect with consumers has also changed

￭ Increased mobile spending by brands has followed this change in consumer behaviour and is a result of:￭ New brands entering the space

￭ Increased investment made by brands who have leveraged mobile advertising from the start

Opportunities for Brands

￭ Mobile consumer behavior will continue to evolve

￭ Mobile consumers select known, trusted brands

￭ Not all brands are focusing yet beyond immediate-conversion activities

￭ There is great growth opportunity for brands who also use mobile to drive brand awareness, product launches, etc.

Lloyds TSB Mobile Banking

Objective:Launch the mobile banking app to a tech savvy audience.

A combination of ad units gave maximum impact

Expandable Ads Standard Ads

SMS Ads

Results were incredible.

• App went straight to No. 1 and has been in Top 5 since

• Hyper-targeted SMS ads had 5x engagement

• CTR for Christmas burst was 1.5% higher than initial burst

Visa Spring 2012

For this campaign Visa had a dual objective;• opt-ins to the database

• Extend the reach of the TV creative.

25

Visa: Banner to Video

26

Visa: Standard Pre Roll

27

Visa: Interactive Video

Visa Spring 2012

Results were strong with

• over 50% of videos viewed to completion

• interactive pre-rolls delivering around a 10% CTR, which is phenomenal.

Q&A

THANK YOU