Mobile Media Landscape -Usage, Devices & Market Drivers -Smartphone Trends -Mobile Gaming -Who Does What & How? -Which Handsets? -Who are the Consumers? Monetisation -Advertising -Paid Downloads & Freemium -In Game Purchases -Takeaways

1. Mobile Gaming: State of the European Market
Mobile Gaming Forum - 25 January 2012
Jeremy Copp, Vice President Mobile Europe
jcopp@comscore.com, +44 7876 567742

2. Agenda
– Mobile Media Landscape
 Usage, Devices & Market Drivers
 Smartphone Trends
 Mobile Gaming
 Who Does What & How?
 Which Handsets?
 Who are the Consumers?
Monetisation
 Advertising
 Paid Downloads & Freemium
 In Game Purchases
 Takeaways
© comScore, Inc. Proprietary and Confidential. 2

3. Mobile Media Landscape
Usage, Devices & Market Drivers
Smartphone Trends
© comScore, Inc. Proprietary and Confidential. 3

4. The Market Open to Mobile Gaming is Growing
 More than 40% of the total EU5 mobile audience now use Mobile Media.
 Mobile Media population has grown 22% Y-o-Y: now more than 100 million users.
 Smartphone ownership has reached 94 million - 40.1% of the mobile population.
 The total Smartphone audience increased by 46% year on year.
EU5 Smartphone Penetration EU5 Mobile Market Segments
Just Voice
Smartphone 13.1% Mobile
40.1% Media
42.9%
94 million
100.9 million
SMS (and
Not
not mobile
Smartphone
media)
59.9%
43.9%
Mobile Media User = Used browser, application, native email, stream or download music
Product: MobiLens
and broadcast or on demand video (does not include SMS)
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 4 Country: EU5, N= 67,003

5. Smartphone Ownership a Key Market Driver
 Since December 2010, smartphones have dominated new mobile phone purchases
 Now more than 59% of devices sold in EU5 are smartphones
Acquired Device in Month by Type
100%
90%
28% 30% 30% 31%
38%
% Acquired Device in Month
80% 41%
48% 51% 53%
70% 58% 59%
60%
50%
40%
72% 70% 70% 69%
30% 62% 59%
52% 49% 47%
20% 42% 41%
10%
0%
Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
Not Smartphone Smartphone
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 5 Country: EU5, N= 67,003

6. Google’s Android Has Rapidly Grown its Smartphone Market Share
 In the past year, Android increased its market share from 8.3% in September 2010
to its current 26.2%.
 Apple has increased its share from 19.4% to 20.7% while all other major operating
systems saw their share decline.
60.0%
Smartphone Operating Systems - Trend % YoY
51.8% Growth
50.0%
% Smartphone Installed Base
40.0% - 4%
33.9%
30.0% +361%
26.2%
19.4% 20.7% +56%
20.0%
10.6% +74%
10.0% 8.3% 9.5%
7.9% 6.3% -13%
0.0%
2.0% 3.4%
Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 +158%
Symbian Google Apple RIM Microsoft Other
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 6 Country: EU5, N= 67,003

7. Smartphone Owners are Over 237% More Likely to Use Mobile Media
than Non-Smartphone Users
 Smartphones have revolutionized the market for Mobile Media. More than 94% of Apple’s user base
consume Mobile Media.
 Google, Apple and RIM platform users over-index on consumption behavior, compared to the
Smartphone average.
 Mobile owners with Microsoft and Symbian based devices are less likely to use Mobile Media than the
average Smartphone user.
Mobile Media Consumption by Operating System
100.0% 94.3%
90.0% 85.7% 86.0% 84.8%
80.0% 89.1% 76.2% 74.2%
72.0%
68.5%
70.0% 76.5% 75.4% 63.8%
%Penetration
57.9%
60.0% 51.6% 64.6%
50.0% 56.5%
40.3%
40.0%
40.0%
30.0% 22.0%
20.0% 15.8%
10.0% 14.4%
0.0%
Apple Google RIM Microsoft Symbian Smartphone Not Smartphone
Used connected media (except SMS) Used application (except native games) Used browser
Mobile Media User = Used browser, application, native email, stream or download music
Product: MobiLens
and broadcast or on demand video (does not include SMS)
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 7 Country: EU5, N= 67,003

8. Mobile Gaming
Who Does What & How?
Which Handsets?
Who Are the Consumers?
© comScore, Inc. Proprietary and Confidential. 8

9. Most Prevalent Installed Game Genres are Not Always Most Purchased
 Most popular genres purchased are not always the same as the most popular installed
 Action/adventure, board, card, strategy & casino games highest volume purchases
 Arcade, card, strategy & word or number games largest installed volume
Most Popular Gaming Genres
14,000 800
12,000 700
Number Purchased (000)
Number Installed (000)
600
10,000
500
8,000
400
6,000
300
4,000
200
2,000 100
0 0
Role Playing Games
Card
Racing
Casino
Board
Retro arcade
Sports
Word or Number
Other
Strategy
Quiz
Action/adventure
Music/Rhythm
First person shooter
Arcade puzzle
Kids/Family
Simulation
Installed Purchased
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 9 Country: EU5, N= 67,003

10. Distinct Audiences for Different Game Genres
 Young, heavily male audience for action/adventure, RPG, sports and first person shooter games
 Puzzles, card games, quizzes and board games attract an older audience more evenly spread
between genders
 Musical and strategy games have a younger, more female demographic
65% Demographic Profile of Installed Game Users
Arcade puzzle Kids/Family
55% Word or Number
Simulation
Other
Quiz
Music/Rhythm Card
45% Strategy
% Female
Retro arcade
Board
35%
Role Playing Games
Casino
Action/adventure
25% Racing Size of bubbles = % of the market
Higher on chart = More female
First person shooter Further to right = Older
Sports
15%
10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0
Median Age
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 10 Country: EU5, N= 67,003

11. Consumers Continue to Play Mobile Games Regularly
 Over 25% of mobile phone users (62m consumers) played a game in the month
 Nearly 13m users play a game almost every day
Frequency of Playing Games
30.0
25.0
Proportion of Total Audience (%)
20.0
15.0
10.0
5.0
0.0
Almost every day At least once each week Once to three times Ever in month
throughout the month
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 11 Country: EU5, N= 67,003

12. Pre-installed Games Still Most Popular
 Most games played are already on the handset – 16% of the audience access them.
 Growing usage of downloaded games - 13% of the audience.
 Browser game play is in the minority, but still accounts for more than 4m players.
Method of Playing Games
40,000
35,000
30,000
Number of Consumers (000)
25,000
20,000
15,000
10,000
5,000
0
Played native/preloaded games Played downloaded games Used browser to play games
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 12 Country: EU5, N= 67,003

13. Most Consumers Download Two or Fewer Games Per Month
 More than 60% of downloaders added up to two games in the month
 Heavy users account for 12% of downloaders, adding 5 or more games in the month
 More than one third of those with games installed have five or more on their phone
Number of Games Downloaded in
Number of Games Installed
Month
1
12% 2 1
12%
2
35% 3 3%
17% 33% 3
7%
4
4
5 5
17%
7% 18% 5+ 5+
11% 28%
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 13 Country: EU5, N= 67,003

14. Chat and Gifting Not Yet a Draw For Social Gaming
 Multi-player and sharing scores are the primary activities within social gaming
 Chat perhaps is used more outside of the gaming environment
Social Gaming Activities
Sent/received gift
Used chat
Invited friend to play
Shared score on leaderboard
Played with other people
Logged in
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Audience (000)
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 14 Country: EU5, N= 67,003

15. iPhone is the Mobile Gaming Device of Choice
 iPhones predominate as gaming devices with more than 10m players.
 53% of iPhone owners played a game – users of Android based devices show a similar
propensity with 45% playing
Handset Model Number Playing Games (000)
Apple - iPhone 4 16GB (Fourth Generation) [GSM] 3,466
Apple - iPhone 3G S 16GB (Third Generation) 1,528
Apple - iPhone 4 32GB (Fourth Generation) [GSM] 1,321
RIM - BlackBerry Curve 8520 1,318
Samsung - Galaxy S I9000 8GB 1,223
Apple - iPhone 3G S 32GB (Third Generation) 1,145
Nokia - 5800 XpressMusic 1,132
HTC - Desire [GSM] 969
Apple - iPhone 3G 16GB (Second Generation) 887
HTC - Wildfire [GSM] 831
Apple - iPhone 3G S 8GB (Third Generation) 789
Samsung - Galaxy S II 16GB (no NFC) 696
Samsung - Galaxy Ace S5830 588
HTC - Desire HD 568
Nokia – 5230 523
Samsung - S5230 521
HTC - Wildfire S [GSM] 515
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 15 Country: EU5, N= 67,003

16. Monetisation
Advertising
Paid Downloads & Freemium
In Game Purchases
© comScore, Inc. Proprietary and Confidential. 16

17. In-Game Advertising Gets Noticed
 In-game ads reach the 39.3% of the smartphone market who play games.
 29% of mobile games players recall seeing ads.
Methods of Interacting
80.0%
74.2%
70.0%
60.0%
50.0%
% Smartphone
44.2%
39.3%
40.0%
27% of Mobile
Media users
30.0% recalled seeing a
web/app ad
47% of Social
20.0% Networking users
read posts from 29% of Mobile
organizations Games Players saw
10.0%
/brands / events in-game ads
0.0%
Mobile Media Social Networking Played Games
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 17 Country: EU5, N= 67,003

18. Increasingly Users Download Trial Rather Than Purchase
 Unsurprisingly more than half of consumers download games for free
 Increasing proportion of users are downloading trial versions rather than purchasing games
Game Download Methods
27%
Trial only download
52% Purchased by paying a fee
Downloaded full version of game for free
21%
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 18 Country: EU5, N= 67,003

19. Apple App Store & Android Market Dominant Destination for Games
 Android market not favoured for paid downloads: operator stores, Google & EA have larger
audience.
Game Acquisition Locations
4,000
3,500
3,000
Audience (000)
2,500
2,000
1,500
Free Game Downloaded
1,000
Game Purchased
500
0
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 19 Country: EU5, N= 67,003

20. 15% of Games Players with a Smartphone Made an In-Game Purchase
 15% of those playing games spent money to either purchase virtual goods, cash, points, or tokens, a gift
for another player or to upgrade game or add levels.
 Most in-game purchases are made to buy cash points or tokens with 46.7% reach among in-game
purchases, followed by purchasing virtual goods with 42.4%.
More than 36 million Type of In-Game Purchase
played mobile games,
that’s 39.3% of the total 50.0% 46.7%
% Made In-Game Purchase with
EU5 Smartphone market 45.0% 42.4%
40.0%
35.0%
Smartphone
30.0%
25.1%
15% of 25.0%
those made 20.0%
in-game 15.0%
purchases 10.0%
4.2%
5.0%
0.0%
Purchased Purchased Upgraded Purchased
cash, points, virtual goods game or gift for
or tokens added levels another
player
Product: MobiLens
Data: Three month average ending September 2011
© comScore, Inc. Proprietary and Confidential. 20 Country: EU5, N= 67,003

21. Takeaways
© comScore, Inc. Proprietary and Confidential. 21

22. Takeaways
 The market for mobile gaming in Europe continues to grow
– Ever more smartphone owners driving the update in gaming
– More than 25% of mobile phone owners in Europe play games every month
 The installed base of games & most popular download genres differ
– Downloading becoming more popular but browser based games a minority
– Ensure you understand the route to market for your products
 There are distinct target audiences for different types of games
– Know how to reach them with your marketing and delivery channels
 The iPhone is a good bet as a target platform
– Users have a high propensity to play games
– Currently represent the highest volume platform for gamers in Europe
– However, Android based phone users show similar characteristics
 Monetise through in-game purchases or advertising
– Paid downloads a decreasing proportion of the market
 Consider the market carefully – how will you reach your target
audience?
– The reality as revealed by measurement is often different from intuition
© comScore, Inc. Proprietary and Confidential. 22

23. Thank you
Any Questions?
Jeremy Copp
jcopp@comscore.com