1. The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever? Noah Elkin Senior Analyst eMarketer iAds An agency perspective Brett Barash Vice President, Account Director BBDO

2. eMarketer - A business information service unlike any other Founded in 1996, eMarketer provides unbiased research and trend analysis on digital marketing and media Approach & Expertise – We aggregate, filter, organize and analyze data from more than 4,000 global sources – Analysts put the data into context covering all aspects of the market, with overviews and insights that can’t be found anywhere else

3. 2010 was a watershed year for mobile Nov. 2009 Jan. 4, 2010 Jan. 5, 2010 Jan. 27, 2010 April 2010

4. Mobile ad spending is going UP!

5. What a difference a year makes Source: eMarketer, 9/2010

6. Focus of mobile advertising is shifting Source: eMarketer, 9/2010

7. Apple has played the role of catalyst for mobile advertising The “iAd effect” has produced the following key results: – Benefited the entire mobile ad space by generating awareness and excitement about mobile advertising, particularly interactive rich media – Reinforced the effectiveness of mobile as a branding medium

8. iAd is also having an impact on spending Source: IDC, 9/2010

9. Success comes despite setbacks

10. Richer ads units are driving spending growth CAGR, 2009-2014 (in %) Video74% Total Display60% Search59% Banners and Rich Media 58% Messaging21% TOTAL44%

11. The iPhone audience: exclusivity vs. reach Small audience: ~16.5 million US iPhone users – Represents approx. 30% of US smartphone population (Nielsen, Aug. 2010) Active audience: iPhone users generate 50- 60% of all monthly smartphone ad impressions on networks such as Millennial Media and AdMob Wild card: Verizon iPhone

12. Has iAd changed the mobile market forever? Yes.

13. Thank you Noah Elkin Senior Analyst Email:nelkin@emarketer.com Twitter:@noahelkin Blog:emarketer.com/blog/index.php/author/nelkin Phone:(212) 763-6055

14. iAds An agency perspective Brett Barash Vice President, Account Director BBDO

15. Existing Live iAds

16. Why AT&T? First to market Innovative, Rich Mobile Experiences Partnership (AT&T and Apple) Targeting Capabilities Competitive Exclusivity

17. Challenges Reach – Limited to iPhone and iPod Touch Creative control Reporting and Benchmarks Message Strategy

18. Add A Line / Smartphone Data

19. Introduction of U-verse TV

20. Thank you Brett Barash Vice President, Account Director BBDO Email:brett.barash@bbdo.com Twitter:@brettbarash