thinkLA Mobile Breakfast 2011. Keynote presentation from Scott A. Jones, Founder, Chairman and CEO at ChaCha. Event held on June 16, 2011 at the Hyatt Regency Century City.

1. 2011 thinkLA Mobile Breakfast June 16, 2011 #thinkLAMobile

2. thinkLA Mobile Breakfast 2011 Thank you to our Sponsors! #thinkLAMobile

3. Scott Jones Founder, Chairman and CEO Keynote Speaker #thinkLAMobile

7. Provided over a billion answers so far

8. Fastest-growing Q&A company4

9. Q: What is ChaCha anyway?

10. #1 Real-time Answers 25 Million Monthly unique users 3+ Million Answers provided to users every day 1+ Billion Questions ChaCha’s answered

11. ChaCha Answers on Mobile Mobile App Mobile Web Mobile Messaging What was the final score of the NBA Championship game? Win a working with… Dallas Mavs 105, Miami Heat 95 on 6/12. ChaCha on. 7

12. Some of Our Brand Partners “ChaCha was the perfect partner for our launch. Viewers want to engage with our content and talent in unique, new ways. This provided a completely immersive, cross-platform experience.” Cameron Death, Sr. VP & GM NBC Universal Digital Studios 8

13. Q: Does advertising on mobile phones matter?

14. Mobile is #1 in Audience and Reach 280 Mobile Subscribers Satellite TV Subscribers 20 Cable TV Subscribers 65 TV Households 125 Internet Access 221 In Millions Lifestyle Wireless, 2011

15. Mobile vs. Desktop Internet User Projection Internet users in millions Mobile Web will surpass ‘tethered’ usage within 3 years Source: Morgan Stanley, April 2010, Global Projection

16. Desktop versus Mobile: Different Animals Solitary Fixed location 30 minutes Sift through results Focused on desktop Often Research-oriented Social On the go 30 seconds Need an answer Multi-tasking Timely, contextual, personal topics

17. Mobile Users Express Immediate Intent Vs. 13

18. Mobile Search Users Are Impatient 80% report frustration with mobile web due to speed, too many clicks, and too much irrelevant content. -Qualcomm - 2010 80% Shorter Search Session & 80% Lower CTR 15 + mins < 3 mins 14 Large Scale Study of European Mobile Search Behavior – 2008 – Church et. Al.

19. Smartphone Users Multi-task

20. Mobile is Conversational & Personal I see search moving away from statelessness to something more resembling a conversation. - Peter Norvig Google Director of Research

21. Desktop Experience Does NOT Transfer to Mobile How do over 40,000 results look on a mobile phone? 17

22. Answers vs. Results - Which Would YOU prefer? Answers Results How many licks does it take to get to the center of a tootsie pop? Engineering students from Purdue University reported that their licking machine, modeled after a human tongue, took 364 licks. Source: Tootsie.com vs 18

23. Share of Web Traffic Coming from Mobile Devices Entire Web Global StatCounter, comScoreqSearch, Google Analytics Mobile – May 2010 - May 2011

24. Web and Mobile are Complementary

26. Smartphone vs. Feature Phone Usage

27. Smartphone Penetration is Accelerating 65% 37% of US mobile subscribers have smartphones now Nielsen MarketSight – Q2 2011

28. Smartphone Adoption Surged 12% in 6 Months Feature Phones 2% Other 13% 37% 63% 4% Smartphones 10% 9%

29. Smart? Phones Some early-adopter smartphone users do NOT have data plans Of mobile users who have data plans, 23% consume small amounts of data The top 10% of ‘super users’ consume 90% of the data Android and iPhone users consumer 2x more data than other phones Sources: Nielsen Marketsight and Nielsen Company, Customer Value Metrics, Single Line Accounts

30. 6/21/2011 26 LBS has Reach Challenges 82% use cell phones 71% use SMS 35% have apps 24% use apps 4% Use LBS % of U.S. population Source: PewSeptember 2010

31. Only Some Apps Are Important TechCrunch, 2011

32. Smartphone Users More Likely to Text and Text More Often “What started once as a 'teenager thing' has now reached the total population… “Messaging is the broadestreaching communication platform on the planet.” ~ TomiAhonen Adoption Adoption 705 SMS Per Month 891 SMS Per Month Feature Phones Smart Phones Source: Mobile Media Marketplace Q2 28 Nielsen MarketSight – Q2 2010

33. Mobile Marketing Options and Adoption 29 MORE THAN 3 YEARS 1-3 YEARS LESS THAN 1 YEAR Mobile websites Mobile apps Mobile messaging/SMS Mobile display ads (CPM or CPC) Mobile search Mobile rich media apps Mobile video 2D "smart" barcodes Mobile coupons Location-based services Interactive voice response Mobile gaming Proximity - Bluetooth, RFID Near field communications payments Source: Association of National Advertisers, 2010

34. An Integrated Approach to Mobile Marketing is Key Personalize the User Experience with Context Make sure you’re represented across all mobile media

35. The study used norms developed in online ad testing as a benchmark to draw conclusions around the performance of advertising on mobile devices. InsightExpress compared the two using InsightNorms, the company’s normative database containing 1500 online ad effectiveness campaigns and 150 mobile ad effectiveness campaigns. Mobile InsightNorms are based on InsightExpress’ flagship mobile brand effectiveness solution, Mobile AdInsights, which employs a test/control design to measure the brand impact of mobile advertising campaigns.

36. Are Advertising Dollars Being Spent Wisely? 32 30% of Ad $$ Mobile is Lagging = GIANT Opportunity 15% of Ad $$ Average Weekly Hours Spent vs. % of Ad $$’s 6.3% of Ad $$ 6.3% of Ad $$ 5.7% of Ad $$ 1.7% of Ad $$ MMA – View From Madison Avenue – June 2010 & Microsoft Mobile Consumer Study – Nov 2009

37. Mobile Marketing: It’s Still Very Early 17% 10% 4% Smaato, mobileSQUARED & Lightspeed Research, Nov 2010

38. US Mobile Ad Spending = 2.5B in 2014 CAGR = 44% Source: eMarketer, Sept 2010

39. thinkLA Mobile Breakfast 2011 Thank you to our Sponsors! #thinkLAMobile