Why Mobile Advertising

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    CONFIDENTIAL & PROPRIETARY

    Consumers are voting with their time, withtheir passions, and moving into a mediaspace where marketers are simplyuncomfortable following them

    -IAB President Randall Rothenberg

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    Why Mobile?

    PersonalAlways on

    Always with you

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    The Expansion of the Mobile Internet

    Mobile Internet adoption is happening at a faster rate than desktop internet adoption, and the

    prevalence of smartphones will continue to drive this trend

    In 2009, famed tech analyst MaryMeeker compared adoption ofiPhone/iPod touch to that of AOL and

    Netscape in the early 1990s, and found that

    adoption of the Apple devices is taking place

    more than 11 times faster than that of

    desktop internet

    The release of the iOS devices has been the

    fastest new tech device ramp up in history

    Predicts mobile internet market will be at

    least 2x the size of Desktop Internet

    the pace and force of mobilegrowth is unlike anything I haveever seen

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    Why Mobile?

    5

    Per the Mobile Marketing Association, well

    see a 124%increase in year-over-yearspending in the US and the top 100 brandswill elevate mobile budgets to a 4% lineitem on the budget.

    Mobile Advertising Networks Deliver

    $794 Million in Media Spend in 2010

    Mobile Marketing spend to increase 59% in

    2011

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    Smartphone Penetration - ProjectionAll Subscribers Q4 10

    Without accounting for innovation and increased adoption to themarketplace Smartphones will be a majority by Q3/4 2011

    34%

    42% 46%

    51%56%

    61%69%

    66%

    58%54%

    49%44%

    39%

    38%

    28%25%

    21%17%16%

    10%

    22%

    14%13%

    19%

    31%

    62%

    72%

    81%84%

    87%90%

    86%

    75%

    83%79% 78%

    Q22008

    Q32008

    Q42008

    Q12009

    Q22009

    Q32009

    Q42009

    Q12010

    Q22010

    Q32010

    Q42010

    Q12011

    Q22011

    Q32011

    Q42011

    Q12012

    Q22012

    Q32012

    Smartphone

    Feature phone

    Nielsen said today it forecasts more

    smartphones than feature phones in the U.S.

    market by the end of 2011 -3/30/11

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    Why Mobile?

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    Basic Functionality (Call,

    Text, Email)

    Basic Functionality +

    Some Applications

    (Weather, GPS, Social

    Media)

    I use my smartphone for

    all functionsit's my life

    Smartphone Owners

    16.7%30.4%

    52.9%

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    Mobile Advertising

    Mobile advertising is three-to fourtimes more effective than onlineadvertising on average, according toInsight Express

    10

    Ad awareness (23%/8%)

    Message Association (14%/4%)

    Purchase Intent (11%/3%).

    Mobile vs Online

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    Thank YouHeather Menery

    Sales Manager, Mobile Solutions

    [email protected]+1.646.812.0050

    For more info on Velti go to www.velti.com &

    for details on mGage visit www.veltimgage.com