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MAY 2013

MOBILESTATE OF

ADVERTISING

STATE OF MOBILE ADVERTISING

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TOP DEVICES MAY 2012 vs. MAY 2013

0%

5%

10%

15%

20%

25%

30%

SamsungGalaxy S

iPod TouchiPadiPhone

20.4

%20

.4%

27.5

%

13.4

%13

.4% 17

.1%

14.9

%14

.9%

6.6%

2.3%

2.3% 2.7%

May-12 May-13

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Device Index: iOS Played Its Cards Right in 2013

NEW DEVICES SINCE MAY 2012

0%

1%

2%

3%

4%

5%

6%

7%

8%

iPad MiniSamsungGalaxy SIII

iPhone 5

7.9%

2.3%

1.7%

May-13

% S

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• This data shows that iOS played its cards right in 2013 with the release of its new devices, giving iOS an overall 5% increase in impression share from 2012 to 2013.

• Since last year, the iPhone in particular grew 15% with the help of its new iPhone 5, which contributed 7.9%.

• On the other hand, one of Android’s most popular phones over the past year, the Samsung Galaxy S III, only contributed 2.3%, giving Android a boost of only 2.7% since last May.

STATE OF MOBILE ADVERTISING

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41%

iOSAndroid Android iOS

59% 64%

36%

MAY 2012 MAY 2013

Platform Index: Android Continues to Shrink

• Android’s impression share shrinks between May 2012 and May 2013, dropping 5%.

• We predict iOS impression share may start to see a decline until the release of its new iPhone in Fall 2013, as we saw a similar pattern before the release of iPhone 5.

Category Index: Games See More Competition Rising

TOP 10 CATEGORIES

0%

10%

20%

30%

40%

50%

60%

EducationMusicHealthcare &Fitness

ProductivityUtilities SocialNetworking

PhotographyBooksEntertainmentGames

57.8

%57

.8%

42.7

%

15.6

%15

.6% 22

.6%

0.7%

0.7%

7.3%

2.1%

2.1% 6.

1% 10.3

%10

.3%

5.6%

4.0%

4.0% 5.2%

1.4%

1.4% 2.

8%

0.7%

0.7% 2.

7%

3.2%

3.2%

1.5%

0.8%

0.8% 1.3%

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May-12 May-13

• As we look at how impression share changed throughout the year, we see a huge drop in Games impression share since May 2012, almost 15%.

• Entertainment, Books and Photo apps see significant increases in impression share since May 2012, around 7%, 7% and 4% respectively.

• Though the number of Gaming apps continue to increase, there seems to be more competition coming from photography and entertainment apps that mobile users are veering towards in 2013.

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Day of Week: App Usage Shifts from Beginning to End of the Week

IMPRESSION BREAKDOWN BY DAY OF WEEK

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

SunSatFriThuWedTueMon

13.3%

13.2%

16.0%

14.3%13.6%

15.1%15.7%

15.9%

12.8%

15.9%15.6%

12.3% 12.5%

13.8%

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May-12 May-13

• Mobile users shifted smartphone usage since May 2012, from earlier in the week to later in the week, specifically Fridays, which saw a 2.8% increase.

• This year, people with mobile devices tend to start the weekend off at home, playing games or reading books, as opposed to last year, when usage spiked as high as 16% on Tuesdays.

• Throughout the rest of the week, patterns stayed fairly similar to this time last year, with Wednesdays keeping most consistent at 15.9%.

Price Model Index: Brands Better Understand Mobile with CPM Campaigns on the Rise

CPM10%

CPI40%

CPC50%

MAY 2012 MAY 2013

CPI50%

CPM40%

CPC10%

• Since last year, there has been a rise in CPM’s share of campaigns running; CPM campaigns increased 30% since May 2012, grabbing market share solely from CPC campaigns.

• The increase in CPM buys show that real-time bidding (RTB) is the future of mobile advertising—IDC predicts RTB to grow 59% each year through 2016. Since RTB

is only run on a CPM model, this increase helps show that brands are spending more and more on RTB.

• Also, CPM buys drive brand awareness, which is in line with the goals of larger, well-known brands, proving that Fortune 1,000 companies are starting to better understand mobile and allocating more dollars towards it.

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Ad Unit Index: Brands Look to Advertise with Bigger Ad Units

300 x 250

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

iPadiPhone/iPod TouchAndroid

2.9%

2.9%

4.3%

6.7%

6.7%

7.8%

2.7%

2.7%

4.4%

May-12 May-13

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FULL SCREEN INTERSTITIAL 728 x 90

320 x 50

0%

10%

20%

30%

40%

50%

60%

iPhone/iPod TouchAndroid

25.8

%

24.5

%

51.5

%

36.4

%

May-12 May-13

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0.0%

2.0%

4.0%

6.0%

1.0%

3.0%

5.0%

7.0%

8.0%

iPhone/iPod TouchAndroid

0.8%

0.8%

1.3%

2.5%

2.5%

7.2%

May-12 May-13

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0%

2%

4%

6%

8%

10%

12%

14%

iPad

8.4%

12.8

%

May-12 May-13

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• Overall, Android and iOS devices have seen a rise in impression share for ad units with larger real estate.

• The 15.1% drop in iPhone impressions for 320 x 50 ad units shows a shift in brands wanting to advertise with larger ad units, like 300 x 250 and Full Screen.

• Both Android and iOS see an increase in impression share for larger ad units, namely iPhone’s 4.7% increase for Full Screen ads since last May.

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Europe Spotlight: Spain Sees Increase in Engagement Despite Drop in Impressions Since January

EUROPE IMPRESSION BREAKDOWN BY COUNTRY

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

SwitzerlandDenmarkItalySwedenRussiaFranceNetherlandsGermanySpainUK

16.1

%16

.1%

18.6

%

16.7

%16

.7%

15.5

%

8.6%

8.6%

11.3

%

16.4

%16

.4%

9.8%

8.6%

8.6%

8.4%

4.9%

4.9%

7.4%

6.6%

6.6%

6.3%

5.6%

5.6%

5.3%

3.6%

3.6%

2.7%

2.1%

2.1% 2.

4%

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May-12 May-13

• 7 of the top 10 countries in Europe by impressions served, saw impression shares decrease since the beginning of the year.

• Meanwhile, the UK and Russia both saw a 2.5% increase in impression share while Germany saw a 2.7% increase since January.

• However, despite Spain seeing a 1.2% decrease in impression share from January to May this year, CTR increased in the same time frame, proving that impression volume doesn’t always equate to high engagement.

CTR INDEX: SPAINJANUARY 2013 VS. MAY 2013

0

20

40

60

80

100

120

140

Jan 2013 May 2013

100

126

CTR

INDE

X

STATE OF MOBILE ADVERTISING

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About the Velti ‘State of Mobile Advertising’ Report

About Velti

Velti’s ‘State of Mobile Advertising’ report delivers insight into trends in the mobile advertising market on a monthly basis.

The data is from the Mobclix Exchange, which sits at the intersection of +33,500 apps and +45 demand sources. The outcomes of many sales teams, business development teams, and ad networks are aggregated and reflected in this report to give the reader a highly accurate picture of the market.

Velti is the leading global provider of mobile marketing and advertising technology and solutions that enable brands, advertising agencies, mo-bile operators and media to implement highly targeted, interactive and measurable campaigns by communicating with and engaging consum-ers via their mobile devices. The Velti platform, called Velti mGage™, allows customers to use mobile and traditional media to reach targeted consumers, engage the consumer through the mobile Internet and applications, convert them into customers and continue to actively manage the relationship through the mobile channel. Velti is a publicly held corporation based in Jersey, and trades on the NASDAQ Global Select Market under the symbol VELT.

Visit www.velti.com for more information and to read our blog on mobile advertising and marketing insights.