This document discusses trends in mobile device adoption and usage. It notes that smartphone penetration continues to increase, with Android growing significantly. It finds that the top apps are similar across platforms, and most users are willing to pay for apps. Finally, it provides data on tablet usage, finding that the iPad skews younger and is used mostly at home for media like print and video due to its large screen.

1. Mobile, Media, Apps, Tablets and How your Pay for it!! Jerry Rocha, VP Digital Solutions Twitter: jerryrocha Jerry.rocha@nielsen.com

2. Page 2 Smartphones have seen steady adoption – this rate of adoption will only increase with better devices and cooler features Smartphone Penetration All Subscribers Among recent acquirers Smartphone penetration is at 45%

3. Page 3 Without accounting for innovation and increased adoption to the marketplace Smartphones will be a majority by Q3/4 2011 Smartphone Penetration - Projection All Subscribers – Q4 10

4. Smartphones continue to drive data usage with Apple and Android leading the way Media Activities Used by Operating System All Subscribers – Q4 10 Source: Nielsen Mobile Media Survey, US, Q2 2009 Question used: T1910

5. Android jumped 36% from last quarter and has grown ~625% YoY Share of Smartphone Market by Operating System Smartphone Owners

6. Apple is leveling off, showing moderate growth again in Q4 Media Activities Used by Operating System – AT&T Smartphone Users – Q4 10 Smartphone

7. Smartphones have plenty of room to grow at Verizon, Android continues to take market share Media Activities Used by Operating System – Verizon Smartphone Users – Q4 10 Smartphone

8. Smartphones continue to drive data usage with Apple and Android leading the way Smartphone Penetration by Race/Ethnicity Recent Acquirers – Q4 10 Source: Nielsen Mobile Media Survey, US, Q2 2009 Question used: T1910

9. Early App leaders similar across OS platforms; Web carryovers out to early lead Most Popular Used Apps on the Android OS Past 30 Day App Downloaders (n=414) Most Popular Used Apps on the iPhone OS Past 30 Day App Downloaders (n=1,014) Most Popular Used Apps on the Windows Mobile OS Past 30 Day App Downloaders (n=449) Most Popular Used Apps on the BlackBerry OS Past 30 Day App Downloaders (n=715) Source: Q2 2010 Nielsen App Playbook Brands Application Track 9

10. Most App users willing to pay for content % of Smartphone App Downloaders that would Pay for an App within a Category Source: Q2 2010 Nielsen App Playbook Brands Application Track 10

11. Nearly half of branded app downloaders have joined a rewards program following the download Action Taken after Branded App Download Base: Downloaded a Branded App (n=484) Source: August 2010 Nielsen App Playbook Questions used: CQBA8 Which of the following actions have you taken after downloading a branded app? Brands Application Track 11

12. Tablets are still a nascent market favored by early adopters Penetration of Connected Devices Percentage of Owners Who Identify as “Early Adopters” Questions used: Q6 Which of the following categories of connected devices do you or any one in your household currently own? Source: September 2010 Nielsen Connected Devices Playbook General Population Sample N=9590, Netbook Owners (n=1,293), Tablet owners (n=749), e-readers (n=1,089), Portable Media Players (2,118), Portable game Player (1,678), Smartphones (2,336) * Smartphone penetration is derived from Nielsen’s Q2 2010 Mobile Insights study.

13. The iPad skews younger and male Smartphone Tablet Media Player Netbook eReader Tablet Smartphone Media Player Netbook eReader Gaming Gaming N= 195, 569, 452, 864, 879, 510

14. The iPad spends most of the time at home.. Gaming Netbook eReader Media Player Tablet Smartphone Primary Usage: Sedentary Mobile Q29: Think of your [connected device] usage, what percentage of the time were you… N=510, 195, 569, 879, 452, 864

15. Print and video benefit from the iPad’s larger screen size Publishers are rushing to iPad and Tablets, going to save industry? Q38: Which of the following media content do you regularly access through your connected device? N= 452, 864

16. And less personal than a smartphone Q9: Who in your household uses each of these device categories that you own? N= 1,793; 1,560; 562; 1,293; 1,041; 2,242

19. Brand Favorability

20. Purchase Intent

21. Search

22. Site visits

23. Sales (CPG Vertical)

24. General Recall

25. Brand Recall

26. Message Recall

27. Ad Favorability

28. Purchase Intent IncreaseMetrics Used Control/Exposed survey OTS-based Recall survey Control/Exposed observation Method