1. © 2008 M:METRICS, INC. Mobile! Mark Donovan Senior Vice President + Sr. Analyst January 2009 Com597

2. © 2008 M:METRICS, INC. Plan for My Talk Who Am I and Why Am I Talking To You? Five Key Trends in the US Mobile Market Topics to Discuss Mobile marketing Smartphones and digital convergence Why things are hard in mobile The geo-politics of mobile

3. © 2008 M:METRICS, INC. Who Am I and Why Am I Talking To You? Mobile industry veteran (though rookie by Kellys standards!) Mobile industry analyst (very interesting place to sit) Head mobile products and marketing for comScore Leading provider of market research about online behavior and marketing Founded in 1999, IPOd in 2007 How I ended up here is a story Ill keep brief...

4. © 2008 M:METRICS, INC. FAIL

5. © 2008 M:METRICS, INC. Up and to the right: 3G, Smartphones, Web and Ads. Oh, and iPhone too.

6. © 2008 M:METRICS, INC. 1. Mobile Broadband

7. © 2008 M:METRICS, INC. 29% Mobile Broadband Penetration 3G = UMTS, EVDO, HSPDA 3G = UMTS, EVDO, HSDPA

8. © 2008 M:METRICS, INC. Mobile Broadband Lifts Media Consumption

9. © 2008 M:METRICS, INC. 2. Smartphones

10. © 2008 M:METRICS, INC. Moving from Geek to Chic January 2005 45 models November 2009 166 models

11. © 2008 M:METRICS, INC. 122% YoY Increase in Smartphone Owners Smartphone = Palm, Windows, Symbian, RIM, Linux, Apple O/Ses 7%

12. © 2008 M:METRICS, INC. Active Media Users Embrace Smartphones

13. © 2008 M:METRICS, INC. 3. Mobile Web

14. © 2008 M:METRICS, INC. 55% YoY Increase in Mobile Web Audience

15. © 2008 M:METRICS, INC. Utility Web Audience Grew Even Faster

16. © 2008 M:METRICS, INC. Smartphones Still Raised the Bar Further

17. © 2008 M:METRICS, INC. 4. Mobile Advertising

18. © 2008 M:METRICS, INC. Mobile Provides New Advertising Platforms Text advertising & marketing Ad-supported Downloadable Applications Ad-supported mobile video 112MM Text Users 48MM Mobile gamers 14MM Mobile video viewers [iLoop Mobile][Greystripe][Mywaves]

19. © 2008 M:METRICS, INC. Mobile Web Drawing Top Brands 1Mobile Publishing 2Mobile Personalization 3Broadcasting & Cable TV 4Automobile Manufacturers 5Internet Software & Services 6Application Software 7Movies & Entertainment 8Aerospace & Defense 9 Specialized Consumer services 10Diversified Banks Top 10 Sources of Mobile Web Advertisements, by Sector, April08, US Selected Mobile Banner Ads, April 2008

20. © 2008 M:METRICS, INC. 5. The iPhone Effect

21. © 2008 M:METRICS, INC. iPhone Crashed the Party (and Raised the Bar)

22. © 2008 M:METRICS, INC. The World After iPhone Small audience, but outsized impact Radical design fueling innovation (or acceptance of innovation) Business model a glimpse of battles ahead for customer ownership Software is the new mobile battleground (cf. Symbian, Android) Success of PC-tether (iTunes) and Web- tether (MobileMe) hints at convergence to come Openness is the new black

23. © 2008 M:METRICS, INC. Thank You! Questions? mdonovan@mmetrics.com

24. © 2008 M:METRICS, INC.

26. The Mobile Media Ecosystem (One Version) advertisers media agencies infrastructure vendors device oems aggregators service enablers mobile network operators technology vendors technology vendors mobile media