MOBILE INDUSTRY OVERVIEW & TRENDSPART 1

KRISTINE VAN DILLENPOLLY LIEBERMANVERONIKA SONSEV

Prepared for Golden Seeds – April 12, 2012

Agenda

Mobile Penetration

Mobile Usage & Consumption

Monetization of Mobile

Distribution & Discovery

Convergence

Future of Mobile

Mobile Penetration

4

Mobile phones surpass shoes…

5

…and will dwarf PC penetration

Smartphones are driving growth

Smartphones and tablets sales exceeds that of PCs and notebooks combined

We are just starting to upgrade globally

UK 38%

US46%

Germany 27%

Italy50%

Egypt 37%

Russia 36%

Indonesia 18%

Kuwait56%

Global Smartphone Penetration Q3 ‘11Source: Nielsen Mobile Insights

Youth adopted first, but others segments are catching up

Affordability is driving US growth

iOS and Android are dominating

Tablets have become 4th screen

Mobile Usage & Consumption

A mobile phone is the Swiss Army Knife 2.0

GPS

LocationSocial

Mobile Web

Applications

Messaging

Camera

Content

Voice

Regional Considerations

Different capabilities result in different uses

• Network Speed• Device Types• Network/ Data Costs• Local Regulations

Regional Usage

SMS & VoicemBankingGaming

Business TransactionsMobile Web

Content Consumption, Social MediamCommerce

Content Consumption Range

weather

news

sports information

movie information

bank accounts

restaurant information

business directories

classifieds

gaming information

auction sites

49%44%

36%34%

31%29%

24%22%

21%21%

20%18%18%17%

15%13%13%

12%12%12%

Top 20 Mobile Content Categories Reach Among Active Users (Browsing, Apps, SMS), April 2010, US

Product:comScore MobiLensData: Three month average ending April 2010

Apps are exceeding mobile browser usage

Why are people using apps?

Apps provide direct connections to information

35%

46%

53%

64%

74%

Get more info about an eventyou're attending

Help shop or make purchases

Get info about a destinationyou're visiting

Learn about something you'reinterested in

News, weather, sports or stocksupdates

Based on August 2011 Pew Internet Tracking Survey

Popular Apps

Monetization of Mobile

Mobile Business Models

Consumer Paid Advertising mCommerce

Consumer Paid

One-time payments Subscriptions

What are people buying? Ringtones Apps Premium Content Virtual Goods

Billing methods: iTunes Credit Card and Paypal Carrier Billing

Advertising

SMS Display Performance Video Search

Pricing Models: CPM CPC CPI Sponsorships Paid Search/Key words

Mobile Advertising Examples

SMS tags Sponsored SMS Banner Sponsorship

Mobile Advertising Examples

Rich MediaExpandable

Full ScreenInterstitials

Mobile Video Search

mCommerce

Mobile Shopping Tickets Apparel Much more…

Mobile Bookings Hotels Auto Flights