U.S. Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.™)

AUGUST 2010

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Contents

Millennial Media’s Reach & Quick Stats

Special Section: Why Mobile isa Must this Holiday Season

U.S. Mobile Advertising Engagement Data

U.S. Mobile Campaign Targeting Methods

Summary & Reporting Methodology

August 2010 S.M.A.R.T.™ Highlights

U.S. Mobile Internet Reach (Nielsen data from July 2010)

The U.S. mobile Web increased by approximately 1.67%, from 78.7M to 80M users.

Millennial Media’s U.S. unique audience reach increased to 72M unique users month-over-month; Millennial Media continues to reach more than 8 out of 10 Mobile web users.

Special Section:Why Mobile is a Must this Holiday Season

We partnered with comScore to conduct a research survey focused on mobile retail advertising, usage and growth over the past year in preparation for the upcoming retail holiday buying season.

The study found that nearly 30% of mobile subscribers accessing retail content on their phones cannot be reached online or of�ine (in-store). For advertisers this means there is a NEW retail audience that can only be reached through mobile. To reach this untapped market, it is imperative that brands double down with mobile this holiday season.

Engagement & Targeting

Retail Promotion as a post-click campaign destination had the largest increase of 3 percentage points month-over-month. Travel brands –particularly in the Hotel sub-vertical– were actively engaging consumers with special o�ers for mobile users looking for a last chance summer getaway. Additionally, CPG brands were leveraging this campaign action to increase awareness through promotions around new product launches for the back-to-school season.

(Data compiled from 8/1/10 to 8/31/10)

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Place Call was the top performer in the MYDAS™ Portfolio Mix™ in August. This tactic was leveraged by government agencies utilizing the mobile web and the Place Call post-click campaign action as a recruiting tactic. Additionally, a social advocacy group promoting sober rides home to prevent drunk driving leveraged the ease of Click to Call action on mobile in their campaign.

U.S. Mobile Campaign Targeting Methods

Behavioral Audience represented 15% of campaigns on our network as a targeted reach method in August. This targeting tactic was highly leveraged by Telecom and Entertainment brands looking to create customized audiences of sports fans to promote their football o�erings.

Demographic as a targeted reach method represented 37% of the Targeted-Audience Reach in August. Brands in the Pharmaceutical vertical leveraged this tactic to promote new products for women. This tactic was also leveraged by an Automotive advertiser who wanted to reach the Millennials demographic with an end of model year promotion.

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August 2010

Millennial Media’s Reach & Quick Stats

*The Mobile Web number was extracted from the Nielsen Mobile Report: Standard Metrics (Internet Applications included), July 2010, All Carriers. The Millennial Media number is a Nielsen Custom User-De�ned Report. See Nielsen methodology and disclaimer information on page 7.

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U.S. MOBILE WEB80,087,000*

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(Re�ects Nielsen data from July 2010)

DID YOU KNOW?Millennial Media also publishes the Mobile Mix™ Report which covers the latest trends with top mobile manufactures, devices, operating systems, etc.? Click here to sign up today!

MILLENNIAL MEDIA72,012,000*

MOBILE CAMPAIGN QUICK STATS

13% 1.03

Advertisers who usedrich media creative

Number of ads requestedper page view

Source: Millennial Media, 8/10.

4:46 Average user session time(min : sec)

122 Average monthly page views per user

Millennial Media Reaches MoreThan 8 out of 10 Mobile Web Users

U.S. MOBILE INTERNET REACH

August 2010

MAY 2009 JULY 2010

59.8

44.2

80.172.0

Millennial Media’s U.S. reach has grown at the same rate as, or better than, the U.S. Mobile WebU.S. REACH GROWTH

U.S. MOBILE WEB

MILLENNIAL MEDIA

MIL

LIO

NS

MIL

LIO

NS

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The study found that nearly 30% of mobile subscribers accessing retail content on their phones cannot be reached online or of�ine (in-store). For advertisers, this means there is a NEW retail audience that can only be reached through mobile. To reach this untapped market, it is imperative that brands double down with mobile for the 2010 holiday season (Chart A).

The mobile retail user tends to be slightly more af�uent than the total mobile audience with nearly 34% making >$100k per year. Luxury Retail brands should look to target this af�uent group through

mobile. The results also showed that mobile retail users are active in nearly every income bracket, making mobile a great investment for all Retail brands (Chart B).

The products and services mobile retail users purchased varied greatly, but Electronics and Clothing/Accessories proved to be the most popular items purchased. Brands in the Automotive, Entertainment, CPG and Travel verticals could bene�t greatly from mobile, as each of these areas had strong mCommerce activity (Chart C).

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Study Insight:

August 2010

Special Section: Why Mobile isa Must this Holiday SeasonA Joint Study by comScore and Millennial Media

Methodology: The online data was sourced from comScore’s global panel of 2 million Internet users and sourced from a custom survey analysis.

Mobile Subscriber Shopping BehaviorsCHART A

Source: comScore, Q2 2010

27%

73%

Mobile Users vs. Mobile Retail Users IncomeCHART B

mCommerce Retail Items Purchased CHART C

Source: comScore, Q2 2010

0%

5%

10%

15%

20%

25%

30%

35%

<$25k $25k to<$50k

$50k to<$75k

$75k to<$100k

$100k+

Total Mobile AudienceMobile Retail Users

0%

5%

10%

15%

20%

25%

30%

35%

Electronics Clothing/Accessories

Food EntertainmentTickets

AirplaneTickets

Books(non-digital)

Hotel Stays Flowers Tools/Auto/Industrial

Sports/Fitness

Car Rentals

31%29%

26%21% 21% 21% 19% 19% 17% 15% 14%

With the holiday shopping season upon us, we partnered with comScore to conduct a research survey focused on mobile retail advertising, usage and growth over the past year. The goal of the study was to gain a better understanding of mobile retail users, including their purchase habits. The results show that it is imperative advertisers invest now for the holiday season or they will be missing out on revenue that can only be gained through mobile. Below you will �nd highlights of the study. Look for a full presentation of the joint study in the coming weeks.

Source: comScore, Q2 2010

Mobile OnlyOf�ine, Online & Mobile

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Source: Millennial Media, 8/10Numbers in parentheses represent a month-over-month change. *MYDAS™ Portfolio represents the multiple calls to action for any given campaign.

Source: Millennial Media, 8/10Numbers in parentheses represent a month-over-month change.*Campaign destinations represent the immediate click-through from creative to site, landing page, or rich media.

U.S. Mobile Advertising Engagement Data

Mobile web destinations (Traf�c to Site and Custom Landing Page) represented nearly 80% of the Campaign Destination Mix for the third consecutive month, signaling that brands are continuing their commitment to the mobile platform by creating persistent mobile websites and landing pages (Chart A).

Expand Rich Media was on the rise again in August and represented 22% of the Campaign Destination Mix. This increase can be attributed to new advertisers, including insurance and CPG brands leveraging the high engagement Rich Media element in their campaigns to promote Apps and video content (Chart A).

Retail Promotion as a post-click campaign destination had the largest increase of 3 percentage points month-over-month. Travel brands –particularly in the Hotel sub-vertical– were actively engaging consumers with special o�ers for mobile users looking for a last chance summer getaway. Additionally, CPG brands were leveraging this campaign action to increase awareness through promotions around new product launches for the back-to-school season (Chart B).

Place Call was the top performer in the MYDAS™ Portfolio Mix™ in August. This tactic was leveraged by government agencies utilizing the mobile web and the Place Call post-click campaign action as a recruiting tactic. Additionally, a social advocacy group promoting sober rides home to prevent drunk driving leveraged the ease of the Click to Call action on mobile in their campaign (Chart B).

August Insight:

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MYDAS™ Portfolio Mix – August 2010Campaign Destination Mix – August 2010CHART BCHART A

Traf�c to SiteCustom Landing PageExpand Rich Media

0

5

10

15

20

25

30

18%

7%

14%

3%

23%

20%

25%

28%

16% 16%

MOBILEONLY

MOBILEONLY

MOBILEONLY

MOBILEONLY

ApplicationDownload

PlaceCall

RetailPromotion

Submit Form

Join/Subscribe

Watch Video

m-CommerceStore Locator

View map

SocialMedia

SiteSearch

MOBILEONLY

47%31%

22%

August 2010

GEODemographicBehavioral AudienceAudience Takeover

57%BROAD REACH

43%TARGETEDAUDIENCEREACH

37%

41%

15%7%

Campaign Targeting Mix – August 2010 Average

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Source: Millennial Media, 8/10*Numbers in parentheses represent a month-over-month change.

CHART A

U.S. Mobile Campaign Targeting Methods

Targeted-Audience campaign methods (GEO, Demographic, Behavioral, Audience and Audience Takeover) made up 43% of campaigns on our network leveraging these methods. Targeted-Audience methods allow advertisers to engage in a deeper dialog with mobile users and the result is stronger campaign interaction rates (Chart A). Brands in the Automotive, Travel, Retail & Restaurants vertical could emulate the highly-sophisticated Telecom vertical, which leveraged all of the targeted-audience methods in their campaigns to optimize engagement rates.

GEO remained the top targeted-audience campaign method in August. Retail & Restaurant franchise locations and small businesses leveraged this tactic to drive foot traf�c to their brick-and-mortar locations through relevant targeted promotions. Banking brands were also actively targeting speci�c geographic locations with new customer promotions (Chart B).

“Location-based services (GEO) provide marketers with compelling data that can enable them to present relevant o�ers and rewards right when customers are at the point of decision. Marketers should keep in mind that consumers expect a value exchange in return for sharing location information”. ~ e-Marketer, Seven Key Trends in Mobile Usage, September 6, 2010

Demographic as a targeted reach method represented 37% of the Targeted-Audience Reach in August (Chart B). Brands in the Pharmaceutical vertical leveraged this tactic to promote new products for women. This tactic was also leveraged by an Automotive advertiser who wanted to reach the Millennials demographic with an end of model year promotion.

Behavioral Audience represented 15% of campaigns on our network as a targeted reach method in August. This targeting tactic was highly leveraged by Telecom and Entertainment brands looking to create customized audiences of sports fans to promote their football o�erings (Chart B).

August Insight:

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Source: Millennial Media, 8/10*Numbers in parentheses represent a month-over-month change. *GEO is de�ned as a campaign targeting method which includesgeographic location, DMA, state, international country, etc.

Targeted Audience Mix – August 2010 AverageCHART B

August 2010

About Millennial Media

Millennial Media is the proven leader in mobile advertising. With the largest mobile media audience in the U.S., Millennial Media uniquely o�ers brand advertisers the only set of speci�c, scalable audiences. Our ability to reach, target and engage consumers is unparalleled. As an innovative technology leader, our mobile decisioning, serving and mediation platforms are powering some of the largest companies in the media business today. The company is committed to growing the mobile advertising marketplace by becoming the preferred partner to all advertisers seeking to reach mobile consumers, all publishers and developers seeking to maximize ad revenue and all mobile operators seeking to further monetize their networks. For more information, please visit http://www.millennialmedia.com or follow us on Twitter @millennialmedia. Millennial Media was named the 2010 OnMedia Top Private Company in Digital Media and was awarded a 2010 Stevie Award (American Business Awards) for Most Innovative Company of the Year.

About S.M.A.R.T.™

The Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.™) delivers monthly insights on key trends in mobile advertising based on actual campaign and network data from Millennial Media, Inc. Millennial Media partners with major carriers, media networks and top-tier publishers to deliver the largest data set of any third-party U.S. mobile advertising network. As such, we are uniquely capable of reporting and analyzing the richest sets of carrier, device and campaign data collected over billions of monthly ad requests. Elevating and driving the whole mobile ecosystem forward is central to our company mission.

Visit www.millennialmedia.com/research to sign up to receive Millennial Media-related news, including Millennial Media’s Mobile Mix™ and the Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™ report. S.M.A.R.T.™ was designed to speak to brand advertisers; however, for information on our performance product, Decktrade™, please contact us directly or visit our website.

Nielsen Reach Methodology & Disclaimer: Nielsen Mobile, a service of The Nielsen Company, is the world’s largest independent provider of syndicated consumer research to the telecom and mobile media markets. Nielsen Mobile focuses exclusively on tracking the behavior, attitudes and experiences of mobile consumers. Their reports also provide up to seven years of data on internet, video, gaming, audio and advertising trends for mobile phone users. Mobile user behavior information is derived from general U.S. population samples under established and accepted rules. For more information, please visit www.nielsenmobile.com. Disclaimer for ‘Custom Roll-up”: This report is produced for the convenience of Nielsen clients requiring alternative aggregations of audience traf�c. These custom roll-ups are user-de�ned and subject to rede�nition and renaming upon client request and may be changed or restated at any point in time. Clients may use the data contained within these custom roll-ups to illustrate their unique business models or partnering relationships for internal analysis. Public use of this data must clearly state that this is nonstandard aggregation (”Source: Nielsen, Custom User-De�ned Report, <Date>”) and cannot be compared to other custom reports or the syndicated reports on a rankings basis, including category level rankings. Nielsen does not allow for the double counting of traf�c. Nielsen makes no claim as to the correctness of the custom aggregations but does certify the measurement traf�c data as accurate.

Millennial Media Methodology:Network reach is calculated from the count of unique users across our entire network. Millennial Media uses proprietary techniques to uniquely identify at least 75% of our user base persistently across our network and tracks the unique reach over the course of the month-long period. For the remainder, the unique user data is used to calculate the average frequency of views that a user consumes in a month. We apply that average frequency to the remaining impressions to determine our network-wide reach. Data provided is derived from Millennial Media server log activity for the time period indicated. Cost Per Engaged User (CPEU™) averages overall campaign spend against the number of unique users who engaged with the campaign creative. CPEU is derived by applying the overall media spend to the total number of users that engaged in any one of the actions which campaigns provided, such as expanding a rich media creative, visiting a landing page, watching a video, etc.

For questions about the data in this report, or for recommendations for future reports, please contact us at research@millennialmedia.com.

©2010 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners.

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Summary & Reporting Methodology

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August 2010