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

SPECIALTRAVELREPORT

JULY 2012

This special S.M.A.R.T. report focuses on mobile advertising trends within the travel industry. We highlight what travel brands are doing on mobile, which travel audiences are resonating with brand advertisers, how vacationers are consuming content, what travel-centric purchases mobile users are making, and how travel brands can evolve their mobile advertising strategies moving forward. From booking agents and sites to hotels, resorts, cruise lines, airlines, tourist attractions, tourism boards, regional transit companies, and rental car companies, a wide variety of travel brands are using mobile advertising to reach and engage their customers.

Travel Industry: Mobile Advertising Trends

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Source: Millennial Media, Q1 2012.

VERTICALS GROWTH

Vertical GrowthYear-Over-Year Spend – Q1 2012/Q1 2011CHART B

287%

261%

200%

179%

111%

SPORTS

NEWS

TRAVEL

CPG/FMCG

HEALTH: FITNESS & WELLNESS

Source: Millennial Media, Q1 2012.

TELECOMMUNICATIONSFINANCETRAVELRETAIL & RESTAURANTSENTERTAINMENTCPG/FMCGEDUCATIONPORTALS & DIRECTORIESAUTOMOTIVEDATING

123456789

10

RANK CATEGORIES

Top 10 Global Brand Advertising VerticalsRanked by SpendCHART A

Travel was the number three vertical on the Top 10 Global Brand Advertising Vertical ranking (Chart A). While present among the top verticals throughout 2011, travel advertisers were particularly active in Q1 as they targeted mobile users with post-holiday getaway ideas and travel deals. Spending among travel advertisers grew 200% year-over-year in Q1 2012 (Chart B). Campaigns purchased by booking agents and sites, hotels, resorts, cruise lines, airlines, tourist attractions, regional transit companies, and rental car companies all contributed to this growth. For a more detailed breakout of the types of travel advertisers running mobile advertising campaigns, see Chart A on page 3. According to eMarketer data, vacationers stay connected through their smartphones and tablets and access a wide variety of content (Chart C). While most check personal email, two-thirds also access GPS and map content and keep in touch with those back home. They search for local restaurants and attractions, make reservations, and use their devices for entertainment purposes. With such heavy mobile consumption, the opportunity for advertisers to reach consumers – particularly during peak vacation periods – is great.

Insights:

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JULY 2012

Source: eMarketer, March 2012.

How Vacationers are Using Smartphones & TabletsPercent of RespondentsCHART C

Checking Personal Email

GPS/Maps

Keeping in Touch with those Back Home

Searching for Local Restaurants or Attractions

Posting Photos/Status Updates to Social Media

Entertainment while on Vacation(at the Beach, in a Hotel, etc.)

Entertainment while Traveling(on a plane, in the car, etc.)

Checking Work Email

Making Reservations for Restaurants or Attractions

Checking in at an Airport Ahead of Time

85%

67%

67%

62%

58%

55%

54%

29%

27%

23%

Source: Millennial Media, Q1 2012.

BOOKING AGENTS & SITESHOTELS, RESORTS & CRUISE LINESAIRLINESTOURIST ATTRACTIONS &DESTINATIONSREGIONAL TRANSITBUSES & TRAINSRENTAL CARS

18%

57%11%

9%

3% 2%

Travel Vertical MixCHART A

Source: Millennial Media, Q1 2012.Data is based on the Top 250 Campaigns on Millennial Media’s Platform in Q1 2012.

SUSTAINED INMARKETPRESENCESITE TRAFFICREGISTRATIONSBRAND AWARENESSINCREASED FOOT TRAFFIC16%

62%11%

9%

2%

Travel Campaign GoalsCHART B

Booking Agents & Sites accounted for 57% of the travel campaigns run with Millennial Media in Q1 (Chart A). Travel advertisers leveraged mobile to promote getaway specials and trip ideas for spring break and summer holidays.

Hotels, Resorts, and Cruise Lines made up 18% of all travel campaigns in Q1 (Chart A). In anticipation of the summer travel season, a number of campaigns focused on brand awareness, while campaigns designed to drive immediate reservations allowed consumers to make reservations and book travel directly from custom mobile sites and apps.

Sustained In-Market Presence was the number one campaign goal, representing 62% of the Travel Campaign Goal Mix (Chart B). A number of advertisers ran application download campaigns to encourage adoption of their booking and travel planning apps.

To encourage customers to complete their reservations directly through custom mobile sites, 16% of campaigns focused on Site Traffic as a campaign goal; while just 9% of campaigns focused on driving broader brand awareness – a common goal among travel & tourism boards (Chart B).

Insights:

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Travel Industry: Mobile Advertising TrendsJULY 2012

SEE HOWTRAVEL BRANDSARE SUCCEEDINGIN MOBILE

Download campaign summaries from Westin Hotels, JetBlue Airlines and more at www.millennialmedia.com/brands.

Source: Millennial Media, Q1 2012.

REACHING TRAVEL AUDIENCES Advertisers leveraging Millennial Media’s travel audiences were

3X MORE LIKELYto target business travelers than vacationers.

Application Download represented 59% of the Post-Click Campaign Action Mix for Travel Advertisers (Chart A). With 16 million consumers booking travel on their mobile devices (see box on right), and 36 million researching travel options, travel brands have good reason for wanting a persistent presence on consumers’ mobile devices. By using mobile advertising to drive downloads of their apps, travel advertisers have ensured they are top of mind and can provide consumers easy access to research and booking tools when they need them.

Mobile Social Media represented 20% of the Post-Click Campaign Action Mix for Travel Advertisers in (Chart A). By driving mobile users to social media outlets, travel advertisers encouraged these consumers to engage with their brands and provide feedback on their services.

Insights:

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JULY 2012

Travel Industry: Mobile Advertising Trends

Source: Millennial Media, Q1 2012.Data is based on the Top 250 Campaigns on Millennial Media’s Platform in Q1 2012.

RETAILPROMOTION

ENROLL/JOIN/SUBSCRIBE

STORE LOCATOR WATCH VIDEOPLACE CALLAPPLICATIONDOWNLOAD

SITE SEARCHmCOMMERCE MOBILE SOCIALMEDIA

Post-Click Campaign Action MixCHART A

0%

10%

20%

30%

40%

50%

60%

59%

22%

7% 7% 9%9%

20% 21% 21%15%17% 18%19%

2% 2%

42%

34%

7%

TRAVEL ADVERTISERSALL ADVERTISERS

REACHING TRAVELERSAT ALL STAGES OFTHE PURCHASE FUNNELIn 2012, 16 million consumers are expected to book travel on their smartphones, with 36 million researching travel.*

Mobile ads help drive these direct bookings. Broader awareness campaigns enable travel brands to expand their customer base. Retargeted campaigns can reach those that have already downloaded an app or engaged with an ad to build loyal brand advocates.

*Source: eMarketer, April 2012.

Consumers purchase a variety of goods and services on their smartphones. 29% of those who have made a purchase on their smartphone have booked hotel reservations, 24% have booked rental cars and 24% have purchased airline tickets directly from their mobile device.

Source: comScore, 2011.

DID YOU KNOW?

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Summary & Reporting Methodology

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©2012 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners.

About Millennial Media

Millennial Media is the leading independent mobile advertising platform company. Our technology, tools and services help app developers and mobile website publishers maximize their advertising revenue, acquire users for their apps and gain insight about their users. We offer advertisers significant audience reach, sophisticated targeting capabilities and the ability to deliver rich and engaging ad experiences to consumers on their mobile connected devices.Visit www.millennialmedia.com for more information.

About S.M.A.R.T.™

The Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™ delivers regular insights on key trends in mobile advertising based on actual campaign and platform data from Millennial Media.

Visit www.millennialmedia.com/mobile-intelligence to sign up to receive Millennial Media-related news including the Mobile Mix™ report, the Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™ report, and the Mobile Intel Series.

For questions about the data in this report, or for recommendations for future reports, please contact us at research@millennialmedia.com.

JULY 2012