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

™)

DECEMBER CONTENTS
2 Millennial Media’s Mobile Landscape
3 Advertising Vertical Growth Q4 in Review
4 Mobile Advertising Engagement Data Q4 in Review
5 Mobile Campaign Targeting Methods
6 Summary & Reporting Methodology
 Millennial Media’s Mobile Landscape
December 2010

U.S. MOBILE INTERNET REACH Millennial Media’s U.S. reach has grown at the
(Reflects Nielsen data from November 2010) U.S. REACH GROWTH same rate as, or better than, the U.S. Mobile Web

U.S. MOBILE WEB

U.S. MOBILE WEB 91.8
91,770,000* 79.0
MILLENNIAL MEDIA
66.6
79,031,000*
52.9
Millennial Media Reaches More

MILLIONS

MILLIONS
than 8 out of 10 Mobile Web Users
*The Mobile Web number was extracted from the Nielsen Mobile Report: Standard Metrics (Internet NOVEMBER 2009 MILLENNIAL MEDIA NOVEMBER 2010
Applications included), November 2010, All Carriers. The Millennial Media number is a Nielsen Custom
User-Defined Report. See Nielsen methodology and disclaimer information on page 6.

THE NEW MOBILE NORMS

Campaign Effectiveness Campaign Effectiveness

Smartphones vs. Feature Phones Mobile Norms Yearly Comparisons November 2007 – December 2010
CHART A CHART B

40 40
39%
30 30
31%
28%
20 20
20%
17% 16%
10 15% 10 14%
13% 12% 13% 13%
9% 10% 11% 10% 11%
7% 8% 8% 8% 8%
6%
0 0
UNAIDED AIDED MOBILE AD PURCHASE UNAIDED AIDED MOBILE AD MESSAGE PURCHASE
AWARENESS AWARENESS AWARENESS INTENT AWARENESS AWARENESS AWARENESS ASSOCIATION INTENT

SMARTPHONES FEATURE PHONES 20072008 20082009 20092010

Smartphones defined as iPhone, Android, Blackberry, Palm, Windows devices.
Feature Phones defined as all other mobile phones.

Insights:
As brands continue to plan media buys for 2011, we wanted to highlight findings from InsightExpress’ Mobile InsightNorms study.
The study reported on the growth of mobile campaigns and campaign effectiveness by device over the last three years.

Compared to Feature Phone users, Smartphone users Year-over-year comparisons show that mobile
are most impacted by mobile campaigns, likely due to campaigns in the last year have been more effective in
larger screen sizes and rich media offerings. However, capturing consumer attention (Mobile Ad Awareness)
the small discrepancy between the two types of devices and educating them (Message Association). Other
across metrics indicates that mobile advertising can be brand metrics have also stabilized over the last three
effective, regardless of device (Chart A). Millennial Media years indicating that mobile is an established and
is the only major mobile advertising company that has effective advertising platform (Chart B).
the audience reach across all Smartphone and Feature
Phone operating systems.

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 Advertising Vertical Growth
Q4 in Review
December 2010

Top 10 Advertising Verticals Vertical Explosion

Q4 2010 – Ranked by Spend Year-Over-Year Revenue Growth – Q4 2010/Q4 2009
CHART A CHART B

Q3 Q4 VERTICALS VERTICALS GROWTH

2 1 TELECOMMUNICATIONS
3 2 RETAIL & RESTAURANTS AUTOMOTIVE 623%
1
9
3
4
ENTERTAINMENT
FINANCE
RETAIL & RESTAURANTS 572%
8 5 AUTOMOTIVE ENTERTAINMENT 274%
6 6 DATING
5 7 PORTALS & DIRECTORIES TRAVEL 249%
4
10
8
9
TRAVEL
CPG
FINANCE 201%
7 10 EDUCATION EDUCATION 127%
Source: Millennial Media, 12/10. Source: Millennial Media, 12/10.

December & Q4 Insights:

Telecom claimed the number one spot in the Q4 Top
10 Advertising Verticals (Chart A). During the holiday
season, multiple carrier brands and device
manufacturers doubled-down their mobile buys,
utilizing a combination of Broad and Targeted Reach
strategies to create awareness of new mobile devices,
namely Windows Phone 7 devices.
In the number four spot, Finance increase its standing
by five spots in Q4 (Chart A) and has grown over 200%
year-over-year (Chart B). Banking brands turned to
mobile to promote new services and drive application
downloads while insurance advertisers utilized Place
Call as the primary post-click campaign action to drive
lead generation.

Retail & Restaurants moved up one spot on the Top
10 Advertising Vertical to the number two position in
Q4 (Chart A) and experienced explosive growth of
more than 572% year-over-year (Chart B). Retail &
Restaurant advertisers leveraged mobile to drive foot
traffic with Store Locator as the primary post-click
campaign action.
Automotive brands are heavily investing in a persistent
mobile web presence demonstrated by the 623%
growth year-over-year (Chart B). Mobile websites and
applications created by automotive brands are
extremely robust and enable customers to conduct
research, identify retail promotions, find a local
dealership and schedule vehicle service appointments.

Entertainment has consistently placed in the top 3

advertising verticals throughout 2010 and has
experienced triple digit year-over-year growth on our
network (Chart B). Brands in this vertical leveraged
Rich Media video capabilities to promote new movie
releases and holiday sales of DVDs in Q4.
DID YOU KNOW?
Android surpassed iOS as the largest Smartphone OS
on Millennial Media’s network in December? To learn
more about Smartphone sales and popular mobile
devices, download Millennial Media’s December 2010
Mobile MixTM Report.
Click here to download now!
http://www.millennialmedia.com/research/

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Mobile Advertising Engagement Data
Q4 in Review
December 2010

Campaign Destination Mix Post-Click Campaign Action Mix

Q4 2010 Q4 2010
CHART A CHART B

16% 30

25 30%

TRAFFIC TO SITE 20
23% 24%
49% CUSTOM LANDING PAGE
15
22% 22% 22%
APPLICATION DOWNLOAD 17%
35% 10
11%
14%
10%
5

0
APPLICATION JOIN/ MCOMMERCE PLACE RETAIL SITE SOCIAL STORE SUBMIT WATCH
DOWNLOAD SUBSCRIBE CALL PROMOTION SEARCH MEDIA LOCATOR/ FORM VIDEO
VIEW MAP

Source: Millennial Media, 12/10. Numbers in parentheses represent a month-over-month change. Source: Millennial Media, 12/10.
Campaign destinations represent the immediate click-through from creative to site, landing page, Numbers in parentheses represent a month-over-month change.
or rich media. Data is based on the Top 250 Campaigns on Millennial Media’s Network. Data is based on the Top 250 Campaigns on Millennial Media’s Network.

December & Q4 Insights:

Traffic to Site represented 49% of the campaign Store Locator as a post-click campaign action
destinations during the holiday season in 2010 accounted for 22% of the campaign actions in Q4, a
(Chart A). Advertisers are investing in their 7% increase quarter-over-quarter (Chart B). Auto and
mobile sites with features and functionality as Retail verticals used store locator to drive foot traffic to
robust as their online sites. The Travel vertical has retail locations for end-of-year sales.
taken a page from Retail launching full-service
mobile sites which allow customers to research Social Media had the second-highest growth of 6%
and transact on the go. Both the Travel and Retail quarter-over-quarter, and accounted for 14% of the
verticals contributed to the 4% growth of campaign actions in Q4 (Chart B). Campaigns with the
m-Commerce quarter-over-quarter (Chart B). goal of increased brand awareness or affinity utilized
social media as a post-click campaign action. CPG
Custom Landing Page was the second most brands used new product launches to drive consumer
popular campaign destination in Q4 with a 2% engagement via their social media presence in Q4.
increase quarter-over-quarter, representing 35%
of the impression share (Chart A). Telecom
brands created custom landing pages to
promote the release of new products, services
and holiday promotions.

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Mobile Campaign Targeting Methods
Campaign Targeting Mix
Q4 2010
CHART A
43%
57%
TARGETED
AUDIENCE
BROAD REACH REACH
Source: Millennial Media, 12/10.
December & Q4 Insights:
Targeted Audience Reach campaign methods
(GEO, Demographic, Behavioral Audience and
Audience Takeover) continued to resonate with
advertisers in Q4 with 43% of campaigns
leveraging these targeting methods (Chart A).
Broad Reach methods (Run of Network, Custom
Subnet and Channel) represented 57% of the
Campaign Targeting Mix in Q4. Dating,
Entertainment and Telecom leveraged these
methods to increase awareness of new products
and services during the holidays, a peak
advertising time (Chart A).
DID YOU KNOW?
A recent survey found 87% of retailers believe that
shoppers can easily find a better deal when using
their mobile devices.
~ Mobile Commerce Daily, 1/11
December 2010
Targeted Audience Mix
Q4 2010
CHART B
5%
19%
DEMOGRAPHIC
42% GEO
BEHAVIORAL AUDIENCE
AUDIENCE TAKEOVER
34%
Source: Millennial Media, 12/10.
GEO is defined as a campaign targeting method which includes geographic location, DMA, state,
international country, etc. Data is based on the Top 250 Campaigns on Millennial Media’s Network.
Behavioral Audience, represented 19% of the
Targeted Audience Reach in Q4, a 4% increase
quarter-over-quarter (Chart B). This targeting method
allows advertisers to customize their message to a
customer who is known for engaging with similar
products or brands. Travel brands targeted moms
and business traveler segments with convenient
booking tools to accommodate their busy lifestyle
and a popular beverage company targeted college
students with a new product campaign.
Demographic as a targeting method experienced
the largest quarter-over-quarter growth of 5% and
represented 42% of the Campaign Targeting Mix in
Q4 (Chart B). Restaurant brands with new menu
items and various Retail advertisers leveraged
demographic targeting to effectively achieve their
diverse campaign goals.
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Summary & Reporting Methodology
December 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 offers brand advertisers the only set of specific, 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.

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Millennial Media’s Mobile Mix™ and the Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™
report.

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 traffic. These custom roll-ups are user-defined and subject to redefinition 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-Defined 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 traffic. Nielsen makes no claim as to the correctness of the custom aggregations but does certify the measurement traffic 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.
©2011 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners.

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