A GLOBAL VIEW OF MOBILE ADVERTISING: Global Summary Q2 2011

InMobi Mobile Insights - Network Data

Release date: July 13, 2011

ABOUT THE RESEARCH

Project Background

After launching in 2007 in Asia, InMobi quickly grew to become the world's largest independent mobile advertising network. In the second quarter of 2011, we served 104.9 billion impressions in 165 markets worldwide. With a physical presence in 5 continents, over 5,000 publisher partners, and a broad, independent market footprint, InMobi is well positioned to provide an objective, comprehensive, and representative view of the mobile advertising market.

Research Objectives

We have three goals with this research: 1.  Help educate the market. Statistics and information about the state of mobile

advertising are lacking in most regions of the world. 2.  Track consumer opinions regarding mobile advertising. With any emerging

medium, the consumer perspective is critical to overall market success. We see a need for trending across regions in this area.

3.  Collaborate with industry thought leaders to increase market insight and improve information quality ongoing. As a global independent company, we value partnerships that will strengthen our understanding of the market. Researchers, thought-leaders, and analysts are encouraged to contact us and apply for full partner access.

Contact Information

www.inmobi.com/research research@inmobi.com Twitter: @inmobi

Beginning July 2011, InMobi is moving towards quarterly data views which will highlight broader industry trends and provide an overview of the

global mobile advertising market.  

NETWORK DATA

Data in this report are sourced from our global mobile advertising network which served 104.9 billion impressions in the second quarter of 2011. With 165 countries receiving over 1 million impressions monthly, we are able to claim one of the broadest and most representative networks in the world. Exact specifications are as follows: • Global Available Impressions in Quarter 2, 2011: 104.9 billion • Regions Represented: Africa, Asia Pacific, Europe, Middle East, North America, and South America • Countries Represented: 114 countries with over 10 million impressions per month • Base Measure: Available Impressions • Reports: Market Summary, Manufacturer Share, OS Share, and Top Handsets & Connected Devices • Time Periods: Q1 2011 (January – March 2011), Q2 2011 (April – June 2011) • Comparisons: Q2 2011 versus Q1 2011

InMobi is committed to an independent and transparent leadership position in mobile advertising. With that in mind, the following issues are present in this data.

Mobile Advertising Market Definition: This report covers mobile display advertising only including both WAP and APP. SMS/Text and Search are NOT included in this synopsis.

Scale and Time In Market: Representation within the network is a function of the both scale and time in market. Readers can expect more fluctuation and variance in younger, smaller markets for the company.

Publisher Mix: As with any ad network, market representation is a function of the publisher mix. We have over 5,000 publishers of all sizes and content types, but changes to the publisher mix in a given market could impact the data.

Advertiser Mix: Similar to publisher mix, the advertiser mix could impact the numbers in our network, although to a much lesser extent than publishers.

Specifications

Representation

Available Impression Volume & Composition Q1 2011 Q2 2011 % Chg

Total 85,045,126,065 104,911,803,910 23.4%

Smartphone 27,302,465,830 39,643,613,075 45.2%

Advanced 57,742,660,235 65,268,190,835 13.0%

WAP 72,952,821,747 87,429,623,550 19.8%

App 12,092,304,318 17,482,180,360 44.6%

GLOBAL SUMMARY

The global mobile ad ecosystem continues its significant growth, increasing ad impressions by 23% from Q1 2011 to Q2 2011. "  The InMobi network gained nearly 20 billion ad

requests in Q2 2011. Continued significant growth in this global ecosystem highlights the healthy mix of increasing consumer mobile usage, advertiser adoption and publisher focus on mobile advertising.

Smartphone impression growth far outpaces advanced phones. Smartphones now represent 38% of all mobile ads on the InMobi network. "  45% growth in impressions on smartphones over

the past quarter clearly underlines the shift towards smartphone usage among consumers globally.

In application advertising continues to grow quickly, although it only represents 17% of all mobile ads on the InMobi network. "  In application ads are highly utilized in only a few

key markets across the globe. Globally, most mobile ads are still delivered in the mobile web experience that is platform agnostic.

Source: InMobi Mobile Insights – Network Research, Q2 2011

GLOBAL

Both the leading operating systems, Nokia and Symbian lost share points, however maintained their positions. "  Although Android gained significant traction in Q4 2010 and Q1 2011, iOS growth has outpaced Android on the InMobi

network over the past quarter. This is driven by the strength of the iPhone globally, including launching with Verizon in the United States, and the iPad.

"  Ad impressions are fairly well distributed across the top four mobile platforms, with no single player controlling over 20% of market share.

Global OS Share: Q2 2011

Available Impressions

20%  

19%  

15%  15%  

6%  

25%  

Nokia OS

Symbian OS

Android

iPhone OS

RIM OS

Others

OS Impressions % Share Pt. Chg

Nokia OS 20,874,960,105 19.9% -1.9

Symbian OS 19,849,450,815 18.9% -0.9

Android 15,891,694,091 15.1% +1.3

iPhone OS 15,420,293,972 14.7% +4.7

RIM OS 6,713,921,481 6.4% +1.5

Others 26,161,483,447 24.9% -4.8

Source: InMobi Mobile Insights – Network Research, Q2 2011

GLOBAL Global Manufacturer Share: Q2 2011

Available Impressions

39%  

15%  

15%  

7%  

6%  

5%  

4%  

3%  6%   Nokia

Apple

Samsung

SonyEricsson

RIM

HTC

LG

Motorola

Others

Manufacturer Impressions % Share Pt. Chg

Nokia 40,580,435,664 38.7% -2.6

Apple 15,420,293,972 14.7% +4.7

Samsung 15,419,660,186 14.7% -0.6

SonyEricsson 7,746,314,348 7.4% -1.7

RIM 6,713,921,481 6.4% +1.5

HTC 5,253,479,606 5.0% +0.1

LG 4,204,629,697 4.0% -0.2

Motorola 3,274,563,266 3.1% +0.1

Others 6,298,505,690 6.0% -1.3

Source: InMobi Mobile Insights – Network Research, Q2 2011

Nokia holds the top manufacturer spot by global ad impressions, holding a commanding 38.7% share of impressions. "  Apple gained +4.7 share points to surpass Samsung to secure second spot in the manufacturer category.

"  Outside of top three manufacturers, the global ad impression market is considerably fragmented across the remaining five major manufacturers.

GLOBAL

Global Handset and Connected Device Detail: Q2 2011

Handset Impressions % Share Pt Chg Apple iPhone 10,034,663,568 9.6% +1.7

Apple iPod 4,129,050,385 3.9% +1.7 RIM BlackBerry 8520 2,492,096,877 2.4% +0.7

Nokia 6300 2,287,615,978 2.2% -0.3 Nokia 3110c 2,065,146,384 2.0% -0.4 Nokia N70 1,604,627,990 1.5% -0.3 Nokia N73 1,572,909,572 1.5% +0.3 Nokia 5233 1,476,066,515 1.4% +0.3 Nokia C3-00 1,381,430,513 1.3% +0.1 Nokia E63 1,267,300,231 1.2% -0.1 Apple iPad 1,257,251,638 1.2% +1.0

Samsung GT-I9000 1,249,357,080 1.2% +0.2

Source: InMobi Mobile Insights – Network Research, Q2 2011

The Apple iPhone and Apple iPod each gained +1.7 share points to remain the top two devices globally. Nearly 1 out of every 10 ads in Q2 globally was on an Apple iPhone. "  Device fragmentation beyond the Apple iPhone and iPod is clear, with most devices holding less than 2.4% global share.

"  The top ten handsets are mostly smartphones, once again underlining the rich opportunity for advertisers to reach audiences at scale with rich experiences.

GLOBAL

Global Summary: Q2 2011

Top 5 Manufacturers: % Share of Available Impressions Q1 2011 Q2 2011 Pt. Chg

Nokia 41.3% 38.7% -2.6 Apple 10.0% 14.7% +4.7

Samsung 15.3% 14.7% -0.6 SonyEricsson 9.1% 7.4% -1.7

RIM 4.9% 6.4% +1.5

Top 3 OS Systems: % Share of Available Impressions

Q1 2011 Q2 2011 Pt Chg

Nokia OS 21.8% 19.9% -1.9

Symbian OS 19.8% 18.9% -0.9

Android 13.8% 15.1% +1.3

Available Impression Volume & Composition Q1 2011 Q2 2011 % Chg

Total 85,045,126,065 104,911,803,910 23.4%

Smartphone 27,302,465,830 39,643,613,075 45.2%

Advanced 57,742,660,235 65,268,190,835 13.0%

WAP 72,952,821,747 87,429,623,550 19.8%

App 12,092,304,318 17,482,180,360 44.6%

Source: InMobi Mobile Insights – Network Research, Q2 2011

"   InMobi global network grew by over 19.8 billion impressions over the past quarter.

"   45% growth in both smartphone ad impressions and in application ads, points towards increasing consumer adoption of smartphones and the popularity of applications.

"   Among the top 3 operating systems, only Android managed to gain share points (+1.3).

Top 10 Handsets: % Share of Available Impressions Q1 2011 Q2 2011 Pt Chg

Apple iPhone 7.9% 9.6% +1.7 Apple iPod 2.2% 3.9% +1.7

RIM BlackBerry 8520 1.7% 2.4% +0.7 Nokia 6300 2.5% 2.2% -0.3 Nokia 3110c 2.4% 2.0% -0.4 Nokia N70 1.8% 1.5% -0.3 Nokia N73 1.2% 1.5% +0.3 Nokia 5233 1.1% 1.4% +0.3 Nokia C3-00 1.2% 1.3% +0.1 Nokia E63 1.3% 1.2% -0.1

MEASURES AND TERM DEFINITIONS

Measures: Available Impressions: The total number of ads requests made to the InMobi network % Share (of Available Impressions): The % of total available impressions in the specified region allocated to the inventory type, device, manufacturer, or OS under analysis. Global Development Index: An index of the % share of the inventory type, device, manufacturer, or OS under analysis in the specified region or country relative to that same inventory type, device, manufacturer, or OS share globally. Regional Development Index: Global Development Index: An index of the % share of the inventory type, device, manufacturer, or OS under analysis in the specified country relative to that same inventory type, device, manufacturer, or OS share in the relevant region. % Chg: The percentage change in absolute value between two different time periods. Pt Chg: The difference between two share percentages for an inventory type, device, manufacturer, or OS under analysis in different time periods.

Definitions: Smartphone: Any impression served to an iPhone OS, Android OS, RIM OS, webOS, Windows Mobile OS, Linux Smartphone OS, Palm OS, Nokia N & E Series Phones, or Samsung Bada. Advanced: Any impression served to any OS or handset not included in the smart phone definition above. WAP (Wireless Application Protocol): Any impression served using Wireless Application Protocol (WAP) which is an open international standard for application-layer network communications in a wireless-communication environment. App (Application): Any impressions served to a mobile application resident on the consumer mobile device. Carrier: The mobile network operator (MNO), carrier service provider (CSP), wireless service provider, wireless carrier, or cellular company providing service for mobile phone subscriber served the impression. OS (Operating System): The system software (programs and data) running on the mobile devices that manages the hardware and provides common services for execution of various application software receiving the impression. Handsets and Connected Device: The make and model of the mobile device receiving the impression. Manufacturer: The OEM manufacturer of the mobile device receiving the impression. Other: An aggregation of any remaining impressions not specifically detailed previously. Typically an aggregation of everything under 1% share.

InMobi Regional Definitions: InMobi defines all regions per Wikipedia with the following modifications: “Asia Pacific” includes the 15 Oceania countries as listed in Wikipedia. “South America” includes South & Central Americas as listed in Wikipedia.

This data is part of a series of network reports that are released monthly. Additional regions and markets will be released throughout the quarter. Release Schedule Once a quarter InMobi will release a full data report which will include global, regional and country data views. The next full release is planned for mid October. Monthly data updates including key information by market will be released via our mailing lists and website. While we move to a quarterly release schedule, we will still continue to releases insightful data on key markets across regions on a monthly basis. These releases will shed light on emerging trends and unique developments specific to those key markets. Open Source Research: Getting Involved Objective industry analysts and thought-leaders are encouraged to comment, question, and participate. We will be sure to consider and update the research based on feedback and questions to improve the quality for all end users. To join our monthly research mailing list, contact us at Research@InMobi.com To download the full reports, visit us at www.InMobi.com/research

NEXT STEPS