A GLOBAL VIEW OF MOBILE ADVERTISING: North America Regional Summary

Quarter Ending July 2011

InMobi Mobile Insights - Network Data

Release date: August 17, 2011

ABOUT THE RESEARCH

Project Background

After launching in 2007 in Asia, InMobi quickly grew to become the world's largest independent mobile advertising network. In the quarter ending in July of 2011, we served 113 billion impressions in 165 markets worldwide. With a physical presence in 5 continents, over 5,000 publisher partners, and a broad, independent market footprint, InMobi is well positioned to provide an objective, comprehensive, and representative view of the mobile advertising market.

Research Objectives

We have three goals with this research: 1.  Help educate the market. Statistics and information about the state of mobile

advertising are lacking in most regions of the world. 2.  Track consumer opinions regarding mobile advertising. With any emerging

medium, the consumer perspective is critical to overall market success. We see a need for trending across regions in this area.

3.  Collaborate with industry thought leaders to increase market insight and improve information quality ongoing. As a global independent company, we value partnerships that will strengthen our understanding of the market. Researchers, thought-leaders, and analysts are encouraged to contact us and apply for full partner access.

Contact Information

www.inmobi.com/research research@inmobi.com Twitter: @inmobi

Beginning July 2011, InMobi has moved towards quarterly data views which will highlight broader industry trends and provide an overview of the

global mobile advertising market.  

NETWORK DATA

Data in this report are sourced from our global mobile advertising network which served 113 billion impressions in the quarter ending in July of 2011. With 165 countries receiving over 1 million impressions monthly, we are able to claim one of the broadest and most representative networks in the world. Exact specifications are as follows: • Global Available Impressions during May - July, 2011: 113 billion • Regions Represented: Africa, Asia Pacific, Europe, Middle East, North America, and South America • Countries Represented: 165 countries with over 1 million impressions per month • Base Measure: Available Impressions • Reports: Market Summary, Manufacturer Share, OS Share, and Top Handsets & Connected Devices • Time Periods: QE April 2011 (February – April 2011), QE July2011 (May- July 2011) • Comparisons: QE April 2011 versus QE July 2011

InMobi is committed to an independent and transparent leadership position in mobile advertising. With that in mind, the following issues are present in this data.

Mobile Advertising Market Definition: This report covers mobile display advertising only including both WAP and APP. SMS/Text and Search are NOT included in this synopsis.

Scale and Time In Market: Representation within the network is a function of the both scale and time in market. Readers can expect more fluctuation and variance in younger, smaller markets for the company.

Publisher Mix: As with any ad network, market representation is a function of the publisher mix. We have over 5,000 publishers of all sizes and content types, but changes to the publisher mix in a given market could impact the data.

Advertiser Mix: Similar to publisher mix, the advertiser mix could impact the numbers in our network, although to a much lesser extent than publishers.

Specifications

Representation

Available Impression Volume & Composition

QE April 2011 QE July 2011 % Chg Global

Development Index

Total 15,466,851,895 20,878,864,162 35.0% n/a

Smartphone 11,461,253,994 16,338,381,570 42.6% 164

Advanced 4,005,597,901 4,540,482,592 13.4% 37

Mobile Web 8,008,706,372 10,429,870,433 30.2% 61

App 7,458,145,523 10,448,993,729 40.1% 286

NORTH AMERICA SUMMARY North America ad impression growth of 35% outpaces Global ad growth of 22% in the quarter ending July 2011 across the InMobi network. "  InMobi now serves over 20.8 billion impressions

per quarter in North America. The volume of mobile impressions in North America signifies the reach mobile devices can offer local, regional and global brands.

Mobile ad growth was mostly driven by smartphones, which grew by 42.6% versus a 13.4% growth among advanced phone ad impressions in QE July. "  Smartphones gained over 4.8 billion impressions

over the last quarter and now represent 78% of all mobile ads in the region. With nearly 4 of 5 ads on smartphones in North America, brands have ample opportunity to market effectively through this mass-reach medium.

50% of ads in North America are now in a native mobile application. "  In-App impressions grew by 40% over the quarter

to match the share of Mobile Web impressions in North America. Total impressions are equally distributed across both the Mobile Web and Native Applications.

Source: InMobi Mobile Insights – Network Research, QE July 2011

NORTH AMERICA

Android remains the top mobile platform in the region by ad impressions and gained 2 billion impressions during the quarter ending in July 2011, while, iPhone OS gained 1 billion impressions. "  Three fourths of all North America ad impressions are delivered across the top three – Android, iPhone OS, and RIM

operating systems.

"  Nokia and Symbian OS which are top two global mobile platforms based on ad share, index extremely low in North America with global development indices of 28 and 38 respectively.

North America OS Share: Quarter Ending July 2011

Available Impressions

35%  

26%  

16%  

7%  

5%  

11%   Android

iPhone OS

RIM OS

Symbian OS

Nokia OS

Others

OS Impressions % Share Pt Chg Global

Development Index

Android 7,331,533,235 35.1% +1.0 212

iPhone OS 5,407,047,476 25.9% -2.4 196

RIM OS 3,244,071,664 15.5% +2.9 208

Symbian OS 1,493,222,146 7.2% +0.4 38

Nokia OS 1,142,967,655 5.5% +1.6 28

Others 2,260,021,986 11.0% -3.5 n/a

Source: InMobi Mobile Insights – Network Research, QE July 2011

NORTH AMERICA North America Manufacturer Share: Quarter Ending July 2011

Available Impressions Manufacturer Impressions % Share Pt Chg

Global Development

Index Apple 5,407,047,476 25.9% -2.4 196

RIM 3,244,071,664 15.5% +2.9 208

Nokia 2,554,165,736 12.2% +2.5 32

HTC 2,516,597,105 12.1% -0.1 240

Samsung 1,954,824,623 9.4% -1.8 60

Motorola 1,744,151,418 8.4% -2.0 279

LG 1,475,092,245 7.1% +1.0 171

Huawei 479,518,453 2.3% +0.0 281

SonyEricsson 328,756,724 1.6% -0.3 24

Others 1,174,638,719 5.6% +0.2 n/a

Apple lost -2.4 share points in QE July 2011, regardless, Apple leads the next manufacturer, RIM, by 10.4 share points. "  Among the top five manufacturers in North America, only RIM and Nokia managed to gain share during the QE July 2011.

(RIM: +2.9 and Nokia: +2.5 share points)

"  Due to high smartphone penetration and usage rates in North America, Apple, RIM, HTC, and Motorola considerably over-index in North America when compared with their global share.

26%  

16%  

12%  12%  

9%  

8%  

7%  

2%  2%  6%   Apple

RIM Nokia HTC Samsung Motorola LG Huawei SonyEricsson Others

Source: InMobi Mobile Insights – Network Research, QE July 2011

NORTH AMERICA

North America Handset and Connected Device Detail: Quarter Ending July 2011

Handset Impressions % Share Pt Chg Global

Development Index

Apple iPhone 2,774,450,081 13.3% -1.5 156 Apple iPod 2,244,239,217 10.7% -1.1 307

RIM BlackBerry 8520 987,057,968 4.7% +1.2 165 HTC PC36100 493,670,976 2.4% -1.4 428

RIM BlackBerry 9800 489,637,016 2.3% +1.7 260 HTC ADR6300 477,022,576 2.3% -0.1 434

Motorola DroidX 451,190,615 2.2% -0.8 426 Huawei M860 395,995,684 1.9% -0.0 434

Apple iPad 388,358,177 1.9% +0.2 159 LG LS670 375,052,141 1.8% -0.0 437

RIM BlackBerry 9700 334,670,030 1.6% +0.2 173 Motorola Droid 2 330,336,099 1.6% -0.2 427

RIM BlackBerry 9300 319,478,672 1.5% +0.8 175 HTC Desire HD 286,679,324 1.4% +0.6 224 Motorola Droid 274,514,868 1.3% -0.3 428

While both the top two Apple devices lost market share, these devices continue to over-index in the NA when compared with their global share. "  All the top ten devices over-index considerably compared to their global share, underling the unique composition of

smartphone devices in the North America mobile eco-system and thus the magnitude of rich-mobile advertising opportunity.

Source: InMobi Mobile Insights – Network Research, QE July 2011

NORTH AMERICA

North America Summary: Quarter Ending July 2011

Top 5 Manufacturers: % Share of Available Impressions QE April 2011 QE July 2011 Pt. Chg

Apple 28.3% 25.9% -2.4 RIM 12.6% 15.5% +2.9

Nokia 9.7% 12.2% +2.5 HTC 12.2% 12.1% -0.1

Samsung 11.2% 9.4% -1.8

Top 3 OS Systems: % Share of Available Impressions

QE April 2011 QE July 2011 Pt. Chg

Android 34.1% 35.1% +1.0

iPhone OS 28.3% 25.9% -2.4

RIM OS 12.6% 15.5% +2.9

Available Impression Volume & Composition QE April 2011 QE July 2011 % Chg

Total 15,466,851,895 20,878,864,162 35.0%

Smartphone 11,461,253,994 16,338,381,570 42.6%

Advanced 4,005,597,901 4,540,482,592 13.4%

Mobile Web 8,008,706,372 10,429,870,433 30.2%

App 7,458,145,523 10,448,993,729 40.1%

Top Countries within Region: % Share of Available Impressions

QE July 2011 Pt. Chg USA 73.3% -4.3

Canada 12.5% +2.7 Mexico 12.4% +1.6

"   InMobi North America network grew by 35% impressions during QE July 2011, mostly driven by smartphones.

"   Within the region, Canada and Mexico mobile ad growth was faster than in the USA.

"   Among the top three operating systems, Android gained 1.0 share point and RIM gained 2.9 share points.

Source: InMobi Mobile Insights – Network Research, QE July 2011

MEASURES AND TERM DEFINITIONS

Measures: Available Impressions: The total number of ads requests made to the InMobi network % Share (of Available Impressions): The % of total available impressions in the specified region allocated to the inventory type, device, manufacturer, or OS under analysis. Global Development Index: An index of the % share of the inventory type, device, manufacturer, or OS under analysis in the specified region or country relative to that same inventory type, device, manufacturer, or OS share globally. Regional Development Index: Global Development Index: An index of the % share of the inventory type, device, manufacturer, or OS under analysis in the specified country relative to that same inventory type, device, manufacturer, or OS share in the relevant region. % Chg: The percentage change in absolute value between two different time periods. Pt Chg: The difference between two share percentages for an inventory type, device, manufacturer, or OS under analysis in different time periods.

Definitions: Smartphone: Any impression served to an iPhone OS, Android OS, RIM OS, webOS, Windows Mobile OS, Linux Smartphone OS, Palm OS, Nokia N & E Series Phones, or Samsung Bada. Advanced: Any impression served to any OS or handset not included in the smart phone definition above. Mobile Web: Any impression served to a user that accesses the internet through a browser on a mobile device. This includes WAP based access. App (Application): Any impressions served to a mobile application resident on the consumer mobile device. Carrier: The mobile network operator (MNO), carrier service provider (CSP), wireless service provider, wireless carrier, or cellular company providing service for mobile phone subscriber served the impression. OS (Operating System): The system software (programs and data) running on the mobile devices that manages the hardware and provides common services for execution of various application software receiving the impression. Handsets and Connected Device: The make and model of the mobile device receiving the impression. Manufacturer: The OEM manufacturer of the mobile device receiving the impression. Other: An aggregation of any remaining impressions not specifically detailed previously. Typically an aggregation of everything under 1% share.

InMobi Regional Definitions: InMobi defines all regions per Wikipedia with the following modifications: “Asia Pacific” includes the 15 Oceania countries as listed in Wikipedia. “South America” includes South & Central Americas as listed in Wikipedia.

This data is part of a series of network reports that are released monthly. Additional regions and markets will be released throughout the quarter. Release Schedule Once a quarter InMobi will release a full data report which will include global, regional and country data views. The next full release is planned for mid October. Monthly data updates including key information by market will be released via our mailing lists and website. While we move to a quarterly release schedule, we will still continue to releases insightful data on key markets across regions on a monthly basis. These releases will shed light on emerging trends and unique developments specific to those key markets. Open Source Research: Getting Involved Objective industry analysts and thought-leaders are encouraged to comment, question, and participate. We will be sure to consider and update the research based on feedback and questions to improve the quality for all end users. To join our monthly research mailing list, contact us at Research@InMobi.com To download the full reports, visit us at www.InMobi.com/research

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