Presentation at Mob Ad UK, June 15th 2009, of preliminary results of Mobile Advertising Research UK.

1. RESEARCH FACTS AND VISIONS ON AND BY THE MARKET Tarik Fawzi Peggy Salz London - June 15th 2009

2. WHY THIS PROJECT? All encompassingend-to-end research Advertiserperspective Mobile ecosystemperspective Consumerinsights Focus onlocalmarket Mobile in the media mix Realistic/constructive outlook

3. HOW WAS IT DONE? Deskresearch Analysis of existing data, research, cases and other relevant information IAB Ad spendstudy, Comscore, Informa, Nielsen Consumerinsights Online research amongst 1000 + consumers,their attitudes and opinionson mobile advertising and media UK (region, gender), youngsters, frequent mobile internet users Expert interviews Individual interviews on the topic withmarket experts Operators, advertisers, media buyers, saleshouses, infrastructuresuppliers, applicationparties

4. WITH WHOM? Endorsements Executive partners Launch partners Research partners

5. RESEARCH RESULTS 2009

6. MOBILE IS IN IT’S INFANCY market: £17,5 bn mobile: £28,6 m Source: IAB/PwC/ WARC 2009

7. MOBILE IS INTERNET 10 YEARS AGO YoYgrowth mobile 2008 99,2%Opera and eMarketerforecastsimilargrowthfor 2009(whiletotalmarket is expected to decreasewith 10%) Informaforecast of 2.2%marketshare in 2013 is comparable to Internet’s 2.9% in 2003 2,9% Source: ÆNEAS STRATEGY 2009 (basedon IAB/PwC/WARC 2009, Opera 2008, Informa2008, eMarketer 2008)

8. TIME AND MONEY DON’T ADD UP ** * * 1) Time spendonpress is sum of 22 minutesfornewspapers and 15 minutesfor magazines/tabloids 2) Ad spend is sum of pressclassified and press display ** Ad spend is indicativebasedon 0,04% of total ad spend 2008 USA (Nielsen) Source: IAB/PwC/WARC 2009, ÆNEAS STRATEGY 2009

9. VALUE CHAIN Infrastructure suppliers Ad serving Application parties Consumers Advertisers Media buyers Sales houses Operators

10. MOBILE THROUGH CONSUMER EYES EVERYWHERE DEFAULT ON PERSONAL NOT TRUSTWORTHY VIRAL INTERACTIVE Source: ÆNEAS STRATEGY 2009

11. MOBILE IS NOT TRUSTWORTHY =32% positive attitude towardsadvertisingon the mobile phone 16 - 44 34% 40% 37% Source: ÆNEAS STRATEGY 2009

12. MOBILE IN THE MIX Television Radio Press Cinema 70% 77% 58% 68% Outdoor Direct mail Internet Mobile 59% 34% 32% 74% Source: ÆNEAS STRATEGY 2009

14. Men are most conservative and show the least attitude change

15. 84% of youngsters has a positive attitude towards mobile advertisingifincentivizedSource: ÆNEAS STRATEGY 2009

16. Relevance > Privacy Income is toopersonal Location: killer app? Source: ÆNEAS STRATEGY 2009

17. IT IS ALL ABOUT THE MONEY 64% of UK consumerswouldgrantpermission to receive mobile advertising ifthey are incentivized 70% of UK consumerswouldgrantpermission to receive mobile advertising ifthey are incentivizedAND are in control Messages a day 5 25% Source: ÆNEAS STRATEGY 2009

18. MOBILE IN THE MIX REVISITED Television Radio Press Cinema 70% 77% 58% 68% Outdoor Mobile Direct mail Internet 57%wouldprefer mobile over Internet 58%wouldprefer mobile over television 59% 34% 32% 64% 70% 74% Source: ÆNEAS STRATEGY 2009

21. Medium choice

26. Focus

28. Delivery

29. Interfacing

31. MEDIA BUYERS & SELLERS “…Mobile adds the what and the where and that's what triggers a fundamental shift for advertisers.” OPPORTUNITIES “…Exposure to multi-channel advertising gives you exponential impact in terms of response rate and brand awareness” OBSTACLES “…I can't see a campaign that isn't opt-in. I'm surprised that any can exist” “…We need to realize that there's much more we can do on mobile than banner advertising” ROAD AHEAD “…But where it’s going to win is the integration. Cross-media. No company or individual with a channel approach; you need people that are total specialists”

32. APPLICATION DEVELOPERS “…advertising has to be relevant because is mobile is also a personal medium.” OPPORTUNITIES “…big opportunity in every country to make mobile advertising really work is to have media sales bureaus or agencies who sit in between the owners of the inventory and the advertisers ” OBSTACLES “…Operators themselves are not organized to open up the inventory to advertisers, and the market is divided between multiple operators that don't really work together” ROAD AHEAD “…Core to mobile advertising is mobile messaging” “…Opportunity for advertisers to interact via messaging linked to a certain location or time, and that will develop”

33. INFRASTRUCTURE SUPPLIERS “the mobile directing advertising to the most relevant screen ...for mobile to truly take off it needs to be integrated...requested from the mobile screen and delivered elsewhere” OPPORTUNITIES “…you’re going to start seeing those players just sort of die away, when mobile advertising is serious business, then you're talking about millions of adverts and not just a few hundred thousand. ” OBSTACLES “…interesting for a carrier when the revenue they can envisage starts off at 2 percent over their overall revenue That's the revenue that will make them sit up and listen and we're not there yet” ROAD AHEAD “for the next 2-4 years, text multimedia messaging, voicemail notifications, and even voice are opportunities for advertising that we should start with first. If we start there it will benefit the whole value chain, and specifically the carriers”

34. OPERATORS "Mobile is not a mainstream channel for advertising – yet” OPPORTUNITIES “…opportunities such as advertising actually embedded within a widget” OBSTACLES “…more mainstream brands are entering the space. But we need more…” ROAD AHEAD “…If brands want to reach a customer base, we can offer banners and messaging”

35. INFLUENCERS “Mobile is at its most effective when integrated with other traditional means of communication.” OPPORTUNITIES “…Text-based advertising is still vastly under-rated,… and it keeps growing” “…Every operator and major player in the industry is scrambling to have some kind of app store availability” OBSTACLES “…It’s the role of the industry to reach out and educate the marketers, not the other way around and we’re failing to do it” ROAD AHEAD “…The ambition for mobile ought up to be that it has its place at the table alongside all the other channels” “…There’s kind of an unhealthy expectation of mobile”

36. WEAKEST LINK Infrastructure suppliers Ad serving Application parties Consumers Advertisers Media buyers Sales houses Operators

37. IT IS NOT ABOUT WINNING

38. BUT ABOUT BUILDING TOGETHER Don’tEvangelise, butInspire

39. NEXT STEPS Final report July 2009 Workshops as of July USA, The Netherlands (2nd) and GermanyFall 2009 UK (2nd) 2010 International comparison and best practises

40. www.mobileadvertisingresearch.com MSEARCHGROOVE Peggy Ann Salz +49 1722451028 peggy@msearchgroove.com ÆNEAS STRATEGY Tarik Fawzi +31 6 531 15 971 tarik@aeneasstrategy.nl Atva van Zanten +31 6 414 39 757 atva@aeneasstrategy.nl