state ofMoBILeaDVeRtIsING

aUGUst 2012

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iPhone 5: Growth Prediction

Older Models iPhone 4S iPhone 5

iPH

ON

E IM

PRES

SIO

N S

HAR

E

Oct

’12

10

20

30

40

50

60

70

80

90

100

Nov

’12

Dec

’12

Jan’

13

Feb’

13

Mar

’13

Apr’1

3

May

’13

June

’13

July

’13

Aug’

13

Sep’

13

MONTHS AFTER RELEASE

1 2 3 4 5 6 7 8 9 10 11

2%

4%

6%

8%

10%

12%

14%

16%• As Apple prepares to release its iPhone 5, it’s a good

moment to look back and see how quickly iPhone 4S captured market share after release.

• iPhone 4S claimed over 10% of exchange-wide impression share in just 4 months after release.

• Based on past iPhone releases, we predict that within 6 months, iPhone 5 will drive over 25% of all iPhone impressions, and its release will result in a major upgrade cycle.

• We believe that the iPhone 5 will be adopted more quickly than the iPhone 4S, it will become one of the top 5 devices on the exchange within the next 6 months.

iPhone 4s Impression share

* Source: Mobclix Global data October 2011 – August 2012

* Methodology: Calculated market size for devices on monthly basis for iPhone 4S, 4, 3G, 3 from

October 2011 – August 2012. We used the growth patterns for iPhone 4S as a base for

iPhone 5 in Y1, and the growth patterns for iPhone 4 and 3GS as a base for iPhone 4S

in Y2.

* Source: iPhone impression data, Mobclix exchange October 1, 2011 – August 31, 2012

* Source: iPhone 4S and exchange-wide impression data, Mobclix exchange October 14, 2011 – August 31, 2012

Data feature: iPhone 5 Release

iPhone 4s: top Device Within Months of Release

iPhone 5: another Powerhouse Device?

STATE OF MOBILE ADVERTISING

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AT&T52%

Verizon25%

Sprint22%

T-Mobile1%

Weather

Education

Games

Lifestyle

Utilities

Travel

Enterta

inment

Reference

Productivity

Navig

ation

$

$0.20

$0.40

$0.60

$0.80

$1.00

July

August

27%

28%

20%

17%

12%

12%

3% 3%

0.3% 1.

4%

iPhone iPod touch iPad SamsungGalaxy SII

KindleFire

SamsungGalaxy

1% 1.1%

0.4% 0.7%

HTC Desire

0.4% 0.6%

Evo 4

August

July

• Education apps took the lead as the category with the highest eCPMs for publishers, increasing from $0.82 to $0.97.

• 8 of the top 10 app categories by eCPM saw an increase in August, and exchange-wide eCPMs rose 6% in August from July.

• August was the second month in a row in 2012 that Android took share from Apple.

• This is a change from the consistent pattern we saw from January – June 2012 in which iOS grew market share considerably.

• Between October and November 2011, directly after the iPhone 4S release, Android impression volume dropped by over 5%. We will see how Android fares this month with the upcoming iPhone 5 release, and the subsequent iOS app updates.

• AT&T remained the dominant carrier for smartphones and tablets in the US, accounting for over 50% of the smartphone market despite losing market share in August.

• Sprint was the only major carrier to gain share in August, gaining 2%; AT&T and Verizon both lost 1% share, while T-Mobile held steady at 1% of overall smartphone market share.

• iPhone continues to be the device leader by a significant margin over other devices.

• Kindle Fire made an appearance in the top 5 devices for the first time ever in August.

Monthly Indices

Platform Index: android surge Continues

Carrier Index: at&t Leads smartphone and tablet Impression Volume

eCPM Index: education apps Push ahead of Weather apps

Device Index: Kindle fire enters top 5

* Source: Mobclix Global data July 1 – August 31, 2012* Source: Mobclix Global data July 1 – August 31, 2012

* Source: Mobclix US data July 1 – August 31, 2012 * Source: Mobclix US data July 1 – August 31, 2012

iOS

Android58%42%

iOS

Android57%43%

AT&T51%

Verizon24%

Sprint24%

T-Mobile1%

JULY

JULY

aUGUst

aUGUst

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 VELTI.

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