This slide deck examines the topic of location-based mobile advertising and shares key takeaways from a new BIA/Kelsey report, "From National to Local: Mobile Advertising Zeros In. Joining BIA/Kelsey speakers - Rick Ducey, managing director and Michael Boland, senior analyst - is Monica Ho, vice president of marketing at xAd, who offers perspective from inside the industry on what’s working both locally and nationally.

1. Mobile Local Reaches a
Tipping Point –
The ‘Localization’ Opportunity for National Mobile
Ad Campaigns
January 30, 2013
For Audio: You may listen through your speakers or dial in:
Toll: +1 (646) 307-1705 | Access Code: 996-723-292

2. Webinar Overview
 Webinar Goal • Speaker Introduction
 Examine the state of
mobile local advertising
from both an analysis and
industry perspective
 Agenda Rick Michael
 Preview key findings from Ducey Boland
Managing Director,
our new mobile report BIA/Kelsey
Senior Analyst,
BIA/Kelsey
 Examine mobile’s growth
and value generation
 Drill down on status of
location-based mobile ad
adoption
 Evaluate what’s working Monica
Ho
and why VP, Marketing,
xAd, Inc.
2
© 2013 BIA/Kelsey. All Rights Reserved.

3. Mobile Local Advertising: New Report
Examines Topic
• From National to Local: Mobile Advertising
Zeros In
• Published on Jan. 22, 2013, report first in a series
of reports focused on “Leading in Local”
• Examines models for success in mobile local ad
targeting
• Emphasizes how location targeting is boosting
mobile ad performance
• Identifies where the opportunity best presents itself
• Synthesizes best practices and examines biggest
marketplace challenges
• Profiles leading mobile ad networks, ad-tech
providers, and location data/analytics players
• Available for sale. Special offer to webinar attendees
Report details: www.biakelsey.com/MobileAdvertisingReport.asp
3
© 2013 BIA/Kelsey. All Rights Reserved.

4. U.S. Mobile Ad Spend
$12
$10
$9.92
$8
$8.07
US$ Billions
$6
$5.97
$4
$4.22
$2 $2.67
$1.62
$0
2011 2012 2013 2014 2015 2016
Note: Numbers are rounded.
4
© 2013 BIA/Kelsey. All Rights Reserved.

5. Smartphones vs. PCs
5
© 2013 BIA/Kelsey. All Rights Reserved.

6. Mobile Time Share vs. Ad Share
Source: KPCB, eMarketer, IAB
6
© 2013 BIA/Kelsey. All Rights Reserved.

7. Mobile eCPMs 5x Higher on the Desktop
7
© 2013 BIA/Kelsey. All Rights Reserved.

8. Local Saves the Day
Consumer Usage Non-location Targeted Location Targeted
• 50% of Google $12
mobile searches are $9.9
local $10
$8.1
Advertiser Evolution $8 $5.8
• Location is the US$ Billions 58
$4.5
fastest growing form $6.0 %
$6
of mobile ad $3.1
$4.2
targeting says $4
Millennial Media $2.7 $2.1
(Brands and SMBs) $1.6
$2 41% 1.20 $3.6
$4.1
$0.7 $2.9
$2.2
Premium Ad Rates $1.0
$1.5
$0
• A function of higher- 2011 2012 2013 2014 2015 2016
performing localized Note: Numbers are rounded, which affects some of the totals.
ads Source: Balihoo
8
© 2013 BIA/Kelsey. All Rights Reserved.

9. Mobile Local Ad Performance
Source: Millennial Media 9
© 2013 BIA/Kelsey. All Rights Reserved.

10. Mobile Local Ad Performance, cont’d
10
© 2013 BIA/Kelsey. All Rights Reserved.

11. Localize Across the Board… Including Ad
Creative
11
© 2013 BIA/Kelsey. All Rights Reserved.

12. Example: Scout/Telenav
Situational Targeting:
“Get a 7-day free
pass…Come run on a
Treadmill, Not in the rain”
12
© 2013 BIA/Kelsey. All Rights Reserved.

13. Example: YP
• Calls to action integrated into ad units
(store locators, etc.)
• Closest locations are automatically
provided, based on YP’s extensive location
database – Great for national advertisers
• Campaigns drive and measure whatever
actions the advertiser specifies (calls,
clicks, directions)
• Blockbuster trial saw half of all clicks
launch a map, 20 percent clicked a coupon
and 22 percent of those shared coupon via
Facebook
• YP also provides a customized landing
page to advertisers so that users are given
a consistent and optimized experience.
13
© 2013 BIA/Kelsey. All Rights Reserved.

14. Example: Native Ads
14
© 2013 BIA/Kelsey. All Rights Reserved.

15. What Do We Mean By “Location
Targeting”?
15
© 2013 BIA/Kelsey. All Rights Reserved.

16. Harnessing Location
Within a single campaign, Verve will vary the execution based on the
quality of the location data
ACCURACY: METRO LEVEL ACCURACY: BLOCK LEVEL
EXECUTION: GEO-AWARE EXECUTION: GEO-FENCE
16 16
© 2013 BIA/Kelsey. All Rights Reserved.

17. xAd: Getting More Granular
STANDARD GEO-FENCE xAd SMARTFENCE™
17
© 2013 BIA/Kelsey. All Rights Reserved.

18. Location Defines Audience
18
© 2013 BIA/Kelsey. All Rights Reserved.

19. Monica Ho, VP Marketing, xAD
At the helm of New York City operations, Monica develops
and leads xAd’s marketing functions and oversees the
company’s communications to strategically position it in
the local-mobile marketplace.
Well-regarded in the space, Monica is currently active on
the Interactive Advertising Bureau’s (IAB) Local Search
Committee and the Mobile Marketing Association’s (MMA)
Research Committee.
19
© 2013 BIA/Kelsey. All Rights Reserved.

20. What’s Working
• Location “+” Context
• Leveraging Location from targeting to creative
• Measuring beyond the initial ad click
20
© 2013 BIA/Kelsey. All Rights Reserved.

21. Location + Context
There is more to context than just location
21
© 2013 BIA/Kelsey. All Rights Reserved.

22. Location + Context
What Can Local Context Tell Us?
• General User Demographics • Weather
• Type of local interest based on past & • Time Zone
present behaviors • Mix of businesses in area etc.
22
© 2013 BIA/Kelsey. All Rights Reserved.

23. Location + Context
Targeting = Location(s)
23
© 2013 BIA/Kelsey. All Rights Reserved.

24. Location + Context
Targeting = Geo-Fence
24
© 2013 BIA/Kelsey. All Rights Reserved.

25. Location + Context
Targeting = Geo-Fence + Local Context
25
© 2013 BIA/Kelsey. All Rights Reserved.

26. Location + Context
Results:
Increased Ad Reduction in
Performance Ad Waste
26
© 2013 BIA/Kelsey. All Rights Reserved.

27. Location Relevant Ad Copy
Top Reason Why Mobile Users Engage With Ads?
Source: xAd/Telmetrics Mobile Path to Purchase Study, 2012 27
© 2013 BIA/Kelsey. All Rights Reserved.

28. Location Relevant Ad Copy
Great Mobile Creative
Standard Banner
28
© 2013 BIA/Kelsey. All Rights Reserved.

29. Location Relevant Ad Copy
Even Better Mobile Creative
SmartCreative Banner
Weather-related
message
Specific business
information displayed for
nearest location
29
© 2013 BIA/Kelsey. All Rights Reserved.

30. Going Beyond the Ad Click
TOUCHSCREEN SMART DEVICES
INCREASE THE CHANCE OF
ACCIDENTAL CLICKS/CALLS.
– Approx. half of all mobile clicks
are accidental* HELLO?
HELLO?!
Source: xAd/Telmetrics Mobile Path to Purchase Study, 2012 30
30
© 2013 BIA/Kelsey. All Rights Reserved.

31. Top Mobile Secondary Actions
Source: xAd Network, 2012 31
Source: xAd Campaign Data, Q4 2011 © 2013 BIA/Kelsey. All Rights Reserved.

32. Go Beyond the Click
Don’t fall prey to the “Fat Finger Syndrome”
Measure performance results that
demonstrate ready-to-transact
consumer activity:
• Phone calls
• Reservations
• Map and direction views
• Coupon redemption
• In-Store Check-in etc.
32
© 2013 BIA/Kelsey. All Rights Reserved.

33. JOIN US AT
March 18-20, 2013
Boston, MA
Westin Copley Place
LEADING IN LOCAL: The National Impact will zero in on
how local has evolved as an important channel not only for Attend LEADING IN LOCAL for
small businesses, but for national players who are targeting actionable insights from today's
locally. The conference will focus on how to leverage local interactive local leaders.
and win your share of the $134 billion local media market.
VIKRAM SHARMA
SESSIONS INCLUDE: CEO, Gannett
Digital Marketing
Services
 The Mobile/Social SuperForum:
From National to Local
DOM MOREA
 Local Services Marketing: Adding SVP, First Data
in Social, Mobile and Content
 Geolocal: New Targeting, New BRIAN HALLIGAN
CEO, HubSpot; Senior
Search, New Maps Lecturer, MIT
 Media Leaders: Applying The
Lessons of Leading in Local DAVID KIDDER
Author, The Startup
 Local Deals and Sales: The New Playbook
Online and Mobile Models
Special Code: MOBILELOCAL (Save $200 on registration)
33
www.biakelsey.com/LeadinginLocalBoston Reserved.
© 2013 BIA/Kelsey. All Rights

34. About BIA/Kelsey’s Mobile Report
• Report Details
– Pages: 53
– Figures: 43
– Tables: 8
– Companies Included in Report: 24
• Who Should Read This Report?
– Senior leaders interested in the opportunity
in mobile advertising
– Companies building mobile local
products and vetting opportunities based
Price
on mobile user behavior • $1,495
– Anyone focused on the trends and • $1,995 (Report plus a one-
hour custom analyst briefing)
direction of mobile/local communications
and advertising Download executive
summary:
www.biakelsey.com/MobileAdvertisingReport.asp
34
© 2013 BIA/Kelsey. All Rights Reserved.

35. Questions?
35
© 2013 BIA/Kelsey. All Rights Reserved.

36. Questions and Comments:
Michael Boland, Senior Analyst, BIA/Kelsey
mboland@biakelsey.com
Monica Ho, VP, Marketing - xAd, Inc.
monica.ho@xad.com
© 2013 BIA/Kelsey. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any
unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under federal law.
BIA/Kelsey disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or
consequential damages that may result from the use or interpretation of this information.