1. The State of Mobile: Key Emerging Digital Trends Evan Neufeld VP + Sr. Analyst M:Metrics, the mobile market authority

2. © 2007 M:METRICS, INC. Insight on key trends and topics from thought-leading analysts. Quarterly key performance indicator reports Eight topical reports Monthly Delta reports Client-only Web briefings Granular data on the most active segment of mobile media consumers. Direct measurement via on- device meter Tracking Symbian, Windows, Palm devices Browsing and messaging Monthly data Client-only Web briefings Device, content, and market tracking Direct measurement of operator channels Large scale surveys of consumer behavior Syndicated reports, online interface, and custom queries Monthly data Client-only Web briefings Comprehensive intelligence that helps companies profit from mobile convergence. M:Metrics: The Mobile Market Authority

3. © 2007 M:METRICS, INC. #1: Still Only 24 Hours in a Day: Fighting for Consumer Mindshare in an Increasingly Fragmented Environment Media Consumption Evolution Death of mass marketing Need to understand multi-modal consumption 360 campaigns to become more the rule than the exception Decreased Impact of Advertising Over-messaging endemic Need to rise above the clutter via improved messaging and targeting The Era of Consumer Control More savvy consumers demand fair exchange for value

4. © 2007 M:METRICS, INC. #2: 213mm & Counting: Mobile Penetration to Grow 43% by 2011 Source: Nikkei Electronics Asia -- March 2007 + 43% WW

5. © 2007 M:METRICS, INC. #3: Mobile Phones: A Uniquely Personal & Portable Connection to the Digital World Networks Devices Content Advertising As convergence disrupts multiple sectors, the mobile phone emerges as the key personal connection to the digital world.

6. © 2007 M:METRICS, INC. Driven by device evolution, speed, and developing business models, the mobile phone is moving from being just a portable phone ….. …. to becoming a mobile communication and media management platform

7. © 2007 M:METRICS, INC. # 4: Moving from Mobile 1.0 to Mobile 2.0: Key Characteristics 1.Ubiquitous Indoor plumbing penetration levels of phones Consumers are incorporating the Mobile Web into the fabric of their daily life. In the US: Passed 24+ million consumers using mobile browsers in Q4 06 Those who engage are active, frequent users 56% turn to mobile daily and weekly for news and information 2.Devices getting more sophisticated 3.Business model proliferation & experimentation

8. © 2007 M:METRICS, INC. Popular Mobile Content Mirrors Popular Web Content – Immediate, Necessary & On-the-Go Weather information is the top destination on mobile browsers in the US: 44% of those who use their mobile browser in the US (4.8% of all mobile users) access weather info sites. However, it leads by a slim margin. Top U.S. browsing genres: CategoryUsers% of browser users Weather10,272,251 44% Search10,108,453 43% News 9,919,201 42% Sports Info 8,861,84538% Ent. News 7,718,528 33% Monthly users: accessed weather info (3-month average ending June-07) 3 month avg ending JUL 2007

9. © 2007 M:METRICS, INC. However, Consumption Is Showing Signs of Evolving.. Q1-07 to Q2-07 changes Increase: SMS, photo and video messaging, email News & info via applications Ringbacks Sideloaded music Steady, or Slight Decline: IM News & info via browser, text alerts Ringtones, graphics Carrier music downloads, programmed video Played games, downloaded games

10. © 2007 M:METRICS, INC. Paradigm Shift Anyone? Mobile 2.0 Activities Pick Up News 2.0: Downloading of News & Info Applications grows … Viral: 1 in 10 mobile subscribers creating/sharing content today. UGC on The Rise: Some of the highest growing consumption categories involve user-generated photo and video sharing via MMS, email, or uploading to sites. Old Business Models Disrupted: Homemade personalization (ringtones, graphics) is taking the place of purchased personalization – with the exception of ringbacks. PC Integration: Tracking to the proliferation of music-enabled handsets, listening to ones own music collection (transferred from a computer) is experiencing much faster uptake than downloading from a carrier music store. Mobile Video: Nascent but Growing: From 2.6% In Jan 07 - 3.9% on Sept 07; Current usage: Any Type of Video: 8.2 million Users as of Sept 07 Viral: 7.1 million watched videos sent by family or friends Key Content Categories: News, Sports, Weather Utility & Communication Categories Growth Driven by New Devices: Multimedia functionality drives adoption and next generation services 50% + own camera Phones 1 in 5 Own Music Phones Music phones were the fastest-growing handset category, increasing a whopping 239% Category Reach & Growth Year Over Year Growth Q2 06 - Q2 07

11. © 2007 M:METRICS, INC. Pricing: iPhone vs. Blackberry Bandwidth: Consumers want to drink from the hose Devices: Better devices = more usage Subsidization The ad card… # 5: What is Holding Us Back in Driving Us Forward …

12. © 2007 M:METRICS, INC. Pricing: Consumers Getting Nickel and Dimed to Death… +15% +10%

13. © 2007 M:METRICS, INC. 3 month avg ending JUL 2007 The Broadband Effect: 19% 3G Penetration (and Climbing) But we already knew that mobile broadband Is a game-changer

14. © 2007 M:METRICS, INC. Usage :Smartphones Provide 400-800% Lift

15. © 2007 M:METRICS, INC. It must lend self to targeting It must accommodate a wide range of marketing activities and pricing / inventory models It must allow for optimization & management of campaigns It must provide clear, concise and actionable reporting Must provide value back to consumers How Do We Get There? Five Key Requirement for Effective Mobile Advertising

16. © 2007 M:METRICS, INC. Thanks

17. © 2007 M:METRICS, INC. The (nearly) Ubiquitous Device: Global, with Significant Variance by Market Place. Select consumer penetration measures, US & EU% 3 month avg ending AUG 2007