MARCH 2010ContentsPAGE 3Celebrating One Year of S.M.A.R.T.™ Mobile Advertising Insight!

PAGE 4U.S. Mobile Internet Reach

PAGE 5Vertical Snapshot

PAGE 6Special Section: Travel Goes Mobile. Travel’s Mobile Targeting Strategies

PAGE 7Top U.S. Mobile DMAs by Ad Requests

PAGE 8U.S. Mobile Advertising Engagement Data

PAGE 9U.S. Mobile Campaign Targeting Methods PAGE 10Mobile Network Quick Statistics

PAGE 11Summary and Reporting Methodology

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

S.M.A.R.T. ™ turns 1

MARCH 2010 S.M.A.R.T.™ Highlights

Happy Birthday S.M.A.R.T™:

As of April 2010, S.M.A.R.T.™ has nearly 3,200 active subscribers and has been downloaded more than 5,300 times.

S.M.A.R.T.™ subscribers consist of: Agencies & Brands (40%), Media & Analysts (24%), Mobile Developers, Tech Community (18%), Mobile Publishers (13%), Mobile Operators (4%), and Others (1%).

U.S. Mobile Internet Reach (Nielsen data from February 2010):

Millennial Media’s U.S. unique audience reach increasedby 2.7% in February, from 58.1M to 59.6M unique usersmonth over month; or 83% reach of the mobile Web, according to Nielsen.

The U.S. mobile Web has grown from ~57M users to ~72M users in one year, according to Nielsen.

Top Verticals Snapshot:

The Education vertical jumped three spots from number nine to the number six position in Q1 2010. As educators ramped up recruiting efforts for fall semesters – the 63% increase in revenue from Q4 to Q1 demonstrated brands in this vertical are finding value in mobile.

The Pharmaceutical vertical made its debut to the TopTen this quarter at number nine; as predicted in our Top10 Mobile Predictions for 2010.

(Data compiled from 3/1/10 to 3/31/10)

2

Special Section: Travel Goes Mobile – Travel’s Mobile Targeting Strategies:

Travel moved up four spots to the number four position in the Q1 Top Ten Advertising Verticals. With peak travel season around the corner, we took a closer look at how some of the travel sub-verticals (Hotels, Tourism and Transportation) are leveraging mobile-specific capabilities and engaging consumers at different stages of the campaign lifecycle.

The Hotel sub-vertical delivered rich brand experiencesto targeted audiences; 67% of these campaigns weredelivered to a Custom Site List (CSL).

Top U.S. Mobile DMAs by Ad Requests:

L.A. was the top U.S. DMA in March’s S.M.A.R.T.™ 2009 and again in March 2010. The Southwestern U.S. accounted for 6 of the top 15 DMAs; and eight of the top 15 were in Texas and California.

Twelve of the top 15 DMAs featured Blackberry devices as the top smartphones, while the iPhone was the top smartphone in three markets: San Francisco, Fresno and Sacramento.

Engagement & Targeting:

In March we introduced a new targeting category, GEO,which is defined as a campaign targeting method whichincludes geographic location, DMA, state, international country, etc. This newly reported targeting category had a CPEU of $.35 and accounted for 16% of the campaigns on our network.

Average quarterly page views per users increased to 125 in Q1 2010 from 115 in Q4 - a potential behavior trend that consumers familiar with the mobile web are now engaging in deeper mobile experiences.

MARCH 2010

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Celebrating One Year of S.M.A.R.T.™ Mobile Advertising Insight!

3

MARCH 2010

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As of April 2010, S.M.A.R.T.™ has nearly 3,200 active subscribers and has been downloaded more than 5,300 times.

The number of active S.M.A.R.T.™ subscribers per month grew an average of 39% year over year.* In 2010, S.M.A.R.T.™ subscription has grown 58%.

S.M.A.R.T.™ subscribers consist of: Agencies & Brands (40%), Media & Analysts (24%), Mobile Developers, Tech Community (18%), Mobile Publishers (13%), Mobile Operators (4%), and Others (1%).

“S.M.A.R.T.™ is essential material for anyone who wants a quick and concise snapshot on mobile opportunities. It is required reading for my team.”

S.M.A.R.T.™ Fast Facts

S.M.A.R.T.™ has evolved month-over-month to provide real-time trends and insight on the most innovative medium in the market – mobile advertising.

Where was S.M.A.R.T.™ One Year Ago?

Millennial Media would like to know how we can improve S.M.A.R.T.™ for our readers. Post your thoughts on Twitter using the #HAPPYBDAYSMART hashtag and look for our upcoming reader survey. We appreciate your feedback!

For a special collection of images from the S.M.A.R.T.™ Anniversary Edition, charts and images from past editions, and a copy of the S.M.A.R.T.™ logo, view the image gallery here.

S.M.A.R.T.™ Subscribers

S.M.A.R.T.™ and YOU!

First Birthday Photo Album

Agency & BrandsMedia & AnalystsMobile Developers, Tech CommunityMobile PublishersMobile OperatorsOthers

Source: Millennial Media, 3/10.

APRILSpecial Feature : Device Applications vs. Browser Actions

Special Section: High and Mid-Funnel Effectiveness Analysis (InsightExpress)

NEW: Retail Promotion Call to Action

NEW: Campaign Destination Mix

NEW Quick Stat: Apple impressions

MARCH

S.M.A.R.T.™ IS BORN

Special Feature: Campaign tracking by ad serving tools

Special Section: Top U.S. Mobile DMAs by Ad Requests

MAYVertical Special: Retail Break-out

Special Section: What Labor Day Advertisers Can Learn From Memorial Day

QUARTERLY REPORT: JUNEVertical Special: Entertainment Break-out

AUGUSTNEW: S.M.A.R.T.™ gets a new look!

Special Section: Mobile Consumer Research (InsightExpress)

QUARTERLY REPORT: SEPTEMBERVertical Special Section: Top 10 Mobile Ad Verticals Ranked by Spend; Retail & Restaurant Break-out

OCTOBERSpecial Section: Mobile App Snapshot (mobclix)

NEW: Application Download Engagement Data

NEW: U.S. Smartphone & Feature Phone; U.S. Smartphone OS Mix

NOVEMBERSpecial Section: Thanksgiving Mobile Consumer Behavior Trends

QUARTERLY REPORT: DECEMBERVertical Special Section: Top 10 Mobile Advertising Vertical Ranked by Spend; Travel Break-Out

SPECIAL: 2009 Year in Review

JANUARYNEW: S.M.A.R.T.™ gets a fresh facefor the New Year!Vertical Special Section: Mobile Consumer Research – Campaign Effectiveness by Advertising Vertical (InsightExpress)

NEW: Social Media, m-Commerce& Site Search Mobile Calls to Action

FEBRUARYSpecial Section: Mobile Cause Marketing

NEW: Mobile Only Calls to Action

NEW Quick Stats: % Change in RIM & Android Impressions

MARCHNEW: S.M.A.R.T.™ decoupled - introducing Millennial Media’s Mobile Mix™ report

Mobile Interaction Lifts Among Featured Advertising Verticals (November 24th-27th)

CPG - FOOD (A)

11/24 11/25 11/26 11/27

ENTERTAINMENT - MOVIES (B)

11/24 11/25 11/26 11/27

RESTAURANTS FAST FOOD C

11/24 11/25 11/26 11/27

DATING (D)

11/24 11/25 11/26 11/27

FEATURED ADVERTISING VERTICAL

CPG FOODENTERTAINMENT MOVIES RESTAURANT FAST FOODDATING

INTERACTION LIFT*

31% 30% 51% 19%

(E)Source: Millennial Media 11/09.

*Holiday Peak Day vs. MTD through 11/23

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

*This average includes the average of nine months in 2009, from the first report launched in April 2009, to the first four months in 2010, up to current S.M.A.R.T.™ subscribers in April 2010.

!"#$

"%#$

"&#$

"'#$

"#$"#$

Consumer ElectronicsE-commerceNon Apparel, Non Home FurnishingsHome FurnishingsFast FoodApparel

CHART B

Source: Millennial Media 09/09.

Q3 Retail & RestaurantVertical Break-out

Maria Mandel, Senior Partner/Executive Director Digital Innovation/Digital Lab NA, Ogilvy NA Chair Mobile Marketing Association (MMA)

1%

40%

24%

40%18%

13%

4%

U.S. Mobile Internet Reach

Millennial Media’s Audience Reach = 83% of U.S. Mobile Internet Users

*The Mobile Web number was extracted from the Nielsen Mobile Report: Standard Metrics (Internet Applications included), February 2010, All Carriers. The Millennial Media number is a Nielsen Custom User-Defined Report. See Nielsen methodology and disclaimer information on page 11.

4

Millennial Media59,661,000*

Mobile Web72,050,000*

MARCH 2010

Millennial Media’s U.S. unique audience reach increased by 2.7% in February, from 58.1M to 59.6M unique users month over month, to an 83% reach of the mobile Web, according to Nielsen. Millennial Media’s network includes 11 of Nielsen’s Top 25 sites.

Millennial Media’s reach has nearly doubled (from ~31M to ~60M) in one year.

The U.S. mobile Web has grown from 57M users to 72M users in one year for a year-over-year growth of 26%, according to Nielsen.

MARCH 2010 Insight:

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Millennial Media30,815,000*

Mobile Web56,783,000*

2009 vs. 2010 Insight:

REACH 2009 REACH 2010(Reflects Nielsen data from February 2009) (Reflects Nielsen data from February 2010)

Entertainment moved up two spots putting it back intothe top three in Q1 2010 (Chart A). We anticipate that the Entertainment vertical will continue its upward spend throughout Q2, in order to create and sustain excitement around upcoming summer blockbuster movie releases.

Education jumped three spots, from the number nine to the number six position in Q1 2010. As educators ramped up recruitment efforts for the Fall semester – the 63% increase in revenue from Q4 to Q1 demonstrated brands in this vertical are finding value in mobile (Chart A, B).

Travel climbed from the number eight spot in Q4 to number four in Q1 2010. See our special section, Travel Goes Mobile, for a closer look at how this vertical is leveraging mobile.

Q1 Vertical Snapshot Top 10 Mobile Advertising Verticals by Spend – Q1 2010

5

MARCH 2010

Our network’s Top Ten Advertising Verticals, ranked byspend, experienced several changes in Q1 2010. While Portals and Directories placed in the number one spot for the second consecutive quarter (Chart A, B), Automotive fell out of the top 10.

The average number of searches per unique user has grown from eight searches per unique user per month to more than 13 searches per unique user in the last 12 months. ~ Mobile Commerce Ltd, Mobile Search: What are people searching for and how do they search for it, April 26, 2010

The Pharmaceutical vertical made its debut to the Top Ten this quarter at number nine (Chart A), as predicted in the Top 10 Mobile Predictions for 2010.

Q1 2010 Insight:

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Top Mobile Advertising Verticals* – Ranked by Spend

*Does not include mobile apps, ringtones, or downloads. Source: Millennial Media, Q1 2010.

CHART A CHART B

123456789

10

Portals & DirectoriesEntertainmentTelecommunicationsTravel FinanceEducationDatingCPGPharmaceuticalsRetail & Restaurants

123456789

10

Portals & DirectoriesTelecommunications Finance Entertainment DatingRetail and RestaurantsCPG Travel EducationAutomotive

RANK Q4 2009 VERTICALSRANK Q1 2010 VERTICALS

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Travel moved up four spots to the number four position in the Q1 Top Ten Advertising Verticals. With peak travel season around the corner, we took a closer look at how some of the travel sub-verticals (Hotels, Tourism and Transportation) are leveraging mobile-specific capabilities and engaging consumers at different stages of the campaign lifecycle.

Within the Tourism sub-vertical, the Retail Promotioncampaign action was used in 67% of all campaigns. Travel related discounts and promotions will continue to increase in all sub-verticals through Q2 2010 (Chart B).

A report conducted by PhoCusWright in 2010 predicted “US travelers will spend $76 million on direct domestic hotel bookings through a mobile device.” ~ E-Marketer, April 2010

Special Section: Travel Goes Mobile. Travel’s Mobile Targeting Strategies

MARCH 2010

The M-Commerce campaign action was frequentlyutilized in campaigns within each Travel sub-vertical(Tourism 21%, Hotel 33%, and Transportation 45%);signaling that the mobile ad platform is not just a brandplay for advertisers, but it is also a critical tool to drive revenue (Chart B).

The Transportation sub-vertical had the most diverse use of campaign targeting methods with a mix of both broad and targeted reach methods (Chart A). Along with the broad reach of products advertised within the sub-vertical, this targeting diversity is also attributed to innovative brands testing mobile consumer engagement with their brands.

The Hotel sub-vertical delivered rich brand experiences to a targeted audience – 67% of these campaigns were delivered to a Custom Site List (CSL) (Chart A).

Q1 2010 Insight:

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Q1 Travel Sub-Vertical Campaign Targeting CHART A

Q1 Travel Campaign Actions Sub-Vertical Break-OutCHART B

Source: Millennial Media, 3/10.*The sub-vertical transportation includes airlines and railways

Source: Millennial Media, 3/10.*The sub-vertical transportation includes airlines and railways

TRANSPORTATIONHOTELTOURISM

70%

60%

50%

40%

30%

20%

10%

0%

Channel Audience CSL Meta Take Over RON

The Samsung Freeform™ was the leading feature phone in seven of the top 15 DMAs, including: Miami, Philadelphia, Atlanta, San Francisco and LA. While the Samsung Messager™ was the top feature phone in five of the remaining eight DMAs.

Washington, D.C. (not shown) was number 16 on the Top DMA by ad requests for March 2010. The Blackberry Curve represented the top smartphone , the Samsung Instinct represented the top feature phone, and the iPod Touch was the top connected device in D.C.

Top U.S. Mobile DMA’s* by Ad Requests – March 2010

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MARCH 2010

L.A. was the top U.S. DMA in March’s S.M.A.R.T.™ 2009 and again in March 2010. The Southwestern U.S. accounted for six of the top 15 DMAs; and eight of the top 15 were in Texas and California.

The iPod Touch was the top connected mobile device in all of the top 15 DMAs.

Twelve of the top 15 DMAs featured Blackberry devices as the top smartphones, while the iPhone was the top smartphone in three markets: San Francisco, Fresno and Sacramento.

Q1 2010 Insight:

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Source: Millennial Media, 3/10.*Designated Market Area (DMA) is a geographic area defined by Nielsen Media Research Company as “a group of counties that make up a particular market. For the most part, the metropolitan areas correspond to the standard metropolitan statistical areas (see metro area ) defined by the Federal Government Office of Management and Budget. The areas do not overlap, and every county in the United States belongs to only one DMA. DMAs are used in the evaluation of audience data as well as in the planning and buying of media.”

123456789101112131415

Los Angeles, CADallas, TXHouston, TXNY, NYChicago, ILSacramento, CAPhoenix, AZSan Francisco, CAAtlanta, GASan Antonio, TXPhiladelphia, PAFresno, CATampa, FLMiami, FLHarlingen, TX

Blackberry CurveBlackberry CurveBlackberry CurveBlackberry CurveBlackberry CurveiPhoneBlackberry CurveiPhoneBlackberry CurveBlackberry CurveBlackberry CurveiPhoneBlackberry CurveBlackberry CurveBlackberry Curve

Samsung FreeformSamsung FreeformSamsung MessagerSidekick LXLG TritanSamsung FreeformSamsung MessagerSamsung FreeformSamsung FreeformSamsung MessagerSamsung MessagerSamsung MessagerSamsung FreeformSamsung FreeformPCD TXT8026

MARKET TOP SMARTPHONE TOP FEATURE PHONE

MYDAS™ Portfolio Mix* – Q1 2010 Campaign Destination Mix* – Q1 2010

8

CHART B

Source: Millennial Media, 3/10.*MYDAS™ Portfolio represents the multiple calls to action for any given campaign.

Source: Millennial Media, 3/10.*Campaign destinations represent the immediate click-through from creative to site, landing page, or rich media.

CHART A

MARCH 2010

U.S. Mobile Advertising Engagement Data

Traffic to Site remained the primary campaign destination in Q1—it represented a three month average of 43% (Chart A). Custom Landing Page grew 6% in March to represent 37% of campaigns on our network in March. These two Campaign Destinations accounted for 77% of the destinations on our network in Q1 vs. 64% in Q4 2009, representing advertisers’ investment in directing consumers to a mobile web destination.

Application Download dominated the MYDAS™ Portfolio Mix in Q1 2010 and represented approximately 30% of all campaign actions on our network for the quarter (Chart B).

Place Call represented a quarterly average of 29% of all campaign actions on our network in Q1 2010, the second highest average in the mix for the quarter (Chart B).

According to a survey conducted by the Mobile Marketing Association and Luth Research, location-based mobile services and advertising are starting to find traction – 26% of respondents reported having used this service at some point compared to 53% of Apple iPhone owners who use location services at least once a week.

Q1 2010 Insight:

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Full report available for MMA members http://mmaglobal.com/main

Did You Know?

0

5

10

15

20

25

30

35

30%29%

22%23% 24%

18%

14%

11%

7%

4%

ApplicationDownload

PlaceCall

RetailPromotion

Submit Form

Subscribe Purchase

Watch Video

m-Commerce Store Locator

View map

SocialMedia

SiteSearch

MOBILEONLY MOBILE

ONLY

MOBILEONLY

MOBILEONLY

MOBILEONLY

Campaign Targeting Mix –Q1 Average 2010

Cost Per Engaged User (CPEU)™ by Targeting Method – Q1 2010

9

Source: Millennial Media, 3/10.GEO is defined as a campaign targeting method which includes geographic location, DMA, state, international country, etc. R.O.N. is defined as a campaign targeting method which coversa broad placement of sites on the network, including device and carrier targeted campaigns.

CHART BCHART A

Broad Reach Targeted Reach

MARCH 2010

U.S. Mobile Campaign Targeting Methods

In March we introduced a new targeting category, GEO, which is defined as a campaign targeting method to include: geographic location, DMA, state, international country, etc. This new category had a CPEU in March of $.35 (Chart A) and accounted for 16% of the campaigns on our network in Q1 (Chart B).

Advertisers leveraged highly targeted reach methods, including Takeover, Demographic, GEO and Behavioral Audience, which represented 35% of all campaign targeting methods in March (Chart B).

Broad reaching campaign targeting methods including R.O.N., Custom Subnet, and Channel, remained flat quarter over quarter, while targeted reach methods grew 4% from Q4 to Q1 2010 (Chart B).

Q1 2010 Insight:

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R.O.N.Custom SubnetChannelDemographicAudienceTakeoverGEO

35%

20%19%

13%

16%5%

3%

Source: Millennial Media, 3/10.GEO is defined as a campaign targeting method which includes geographic location, DMA, state, international country, etc. R.O.N. is defined as a campaign targeting method which coversa broad placement of sites on the network, including device and carrier targeted campaigns.

MARCH 2010

Mobile Campaign Quick Statistics

10

14% 1.02

Advertisers used rich media creative

Number of ads requestedper page view

Average quarterly page views per users increased to 125 in Q1 2010 from 115 in Q4 - a potential behavior trend that consumers familiar with the mobile web are now engaging in deeper mobile experiences.

Android impressions experienced the largest month-over-month increases, with 72% change in March. For more mobile manufacturer and OS trends, read Millennial Media’s March Mobile Mix Report.

The average number of ads requested per page view for Q1 2010 decreased to 1.03 from 1.04 in Q4, allowing the advertiser greater share of voice per page.

Continuing the consumer behavioral trend of heightened mobile engagement, the average user session time increased slightly quarter-over-quarter to remain above five minutes in Q1 2010.

Did You Know? Millennial Media launched the Mobile Mix Report in April covering the top mobile manufacturers, devices, operating systems, etc:

March & Q1 2010 Insight:

Source: Millennial Media, 3/10.*As reported in Millennial Media’s Mobile Mix from March 2010. Apple, RIM and Android impressions reflect a combination of U.S. and Non-U.S. impressions.

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129.74:55

Average monthly page views per user

Average user session time(min:seconds)

20% Change in Apple impressions*

25%72%

Change in RIM impressions*

Change in Android impressions*

http://www.millennialmedia.com/research/mobilemix/

Did You Know?

About Millennial Media

Millennial Media is the proven leader in mobile advertising. With the largest mobile media audience in the U.S., Millennial Media uniquely offers brand advertisers the only set of specific, scalable audiences. Our ability to reach, target and engage consumers is unparalleled. As an innovative technology leader, our mobile decisioning, serving, and mediation platforms are powering some of the largest companies in the media business today. The company is committed to growing the mobile advertising marketplace by becoming the preferred partner to all advertisers seeking to reach mobile consumers, all publishers and developers seeking to maximize ad revenue, and all mobile operators seeking to further monetize their networks. Millennial Media was named the 2010 OnMedia Top Private Company in Digital Media.

About S.M.A.R.T

The Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.™) delivers monthly insights on key trends in mobile advertising based on actual campaign and network data from Millennial Media, Inc. Millennial Media partners with major carriers, media networks, and top-tier publishers to deliver the largest data set of any third-party U.S. mobile advertising network. As such, we are uniquely capable of reporting and analyzing the richest sets of carrier, device and campaign data collected over billions of monthly ad requests. Elevating and driving the whole mobile ecosystem forward is central to our company mission.

Visit www.millennialmedia.com/research to receive Millennial Media-related news. The S.M.A.R.T.™ was designed to speak to brand advertisers; however, for information on our performance product, Decktrade™, please contact us directly or visit our website.

Nielsen Reach Methodology & Disclaimer: Nielsen Mobile, a service of The Nielsen Company, is the world’s largest independent provider of syndicated consumer research to the telecom and mobile media markets. Nielsen Mobile focuses exclusively on tracking the behavior, attitudes and experiences of mobile consumers. Their reports also provide up to seven years of data on internet, video, gaming, audio and advertising trends for mobile phone users. Mobile user behavior information is derived from general U.S. population samples under established and accepted rules. For more information, please visit www.nielsenmobile.com. Disclaimer for ‘Custom Roll-up”: This report is produced for the convenience of Nielsen clients requiring alternative aggregations of audience traffic. These custom roll-ups are user-defined and subject to redefinition and renaming upon client request and may be changed or restated at any point in time. Clients may use the data contained within these custom roll-ups to illustrate their unique business models or partnering relationships for internal analysis. Public use of this data must clearly state that this is nonstandard aggregation (”Source: Nielsen, Custom User-Defined Report, <Date>”) and cannot be compared to other custom reports or the syndicated reports on a rankings basis, including category level rankings. Nielsen does not allow for the double counting of traffic. Nielsen makes no claim as to the correctness of the custom aggregations but does certify the measurement traffic data as accurate.

Millennial Media Methodology:Network reach is calculated from the count of unique users across our entire network. Millennial Media uses proprietary techniques to uniquely identify at least 75% of our user base persistently across our network, and tracks the unique reach over the course of the month-long period. For the remainder, the unique user data is used to calculate the average frequency of views that a user consumes in a month. We apply that average frequency to the remaining impressions to determine our network-wide reach. Data provided is derived from Millennial Media server log activity for the time period indicated. Cost Per Engaged User (CPEU™) averages overall campaign spend against the number of unique users who engaged with the campaign creative. CPEU is derived by applying the overall media spend to the total number of users that engaged in any one of the actions which campaigns provided, such as expanding a rich media creative, visiting a landing page, watching a video, etc.

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

©2010 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners.

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MARCH 2010

Summary and Reporting Methodology

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