Hipcricket: 2012 Mobile Advertising Survey Research Brief

Copyright 2012 Hipcricket, a wholly-owned subsidiary of Augme Technologies, Inc. All Rights Reserved. This research brief is for informational purposes only. Hipcricket makes no warranties, expressed or implied, in this document. The names of actual companies or products mentioned herein may be the trademarks of their respective owners. Hipcricket 350 7th Ave., 2nd Fl. New York, NY 10001 855-423-5433

Research Brief

2012 Mobile Advertising Survey

The 2012 Hipcricket Mobile Advertising Survey is a national survey designed to provide insight into consumer behavior and attitudes toward mobile advertising. The survey was conducted in June 2012 via email and is based on 650 respondents. It was sponsored by New York-based Hipcricket.

Survey Overview and Respondent Profile

The survey was completed by 650 respondents who were invited to participate via email by Zoomerang, an online survey services provider. Respondents were: Cell phone owners in the U.S. Distributed across five age categories (18-24, 25-30, 31-35, 36-40, 41-45) and four income ranges ($25,000-$50,000; $50,000-$75,000; $75,000$100,000; greater than $100,000) 50% male; 50% female 27% reside in the Northeast; 21% reside in the Midwest; 30% reside in the South; 22% reside in the West

The margin of error is +/- 3.84%. Of the respondents, all owned cell phones. Some 73 percent owned smartphones and 43 percent owned tablets. Of the smartphone users: o o o 43 percent owned iPhones 38 percent owned Android-based devices 16 percent owned BlackBerry devices

Key Findings
1. Affluent customers have significant interest in mobile advertising
and making mobile purchases through mobile ads. Affluent customers are more likely to have engaged with mobile ads: 55 percent of those who have clicked on a mobile advertisement have an annual income of more than $75,000. 29 percent of those who have clicked on a mobile advertisement have an income of more than $100,000. 45 percent of those with an income of more than $75,000 have made a purchase as the result of a mobile ad.

2. Young (25-34) customers have the most interest and interactivity with mobile ads. The study found the most interest and interactivity with mobile ads among the 25-34 age demographic. Specifically:

70 percent have made a purchase as a direct result of a mobile ad. 58 percent would be willing to provide personal information via a mobile website in return for a reward or coupontwice as likely as those in the 45-54 year old category. 48 percent think more positively about their favorite brands after interacting with them via their mobile device, significantly more than any other age group.

3. Overall, consumers who are familiar with mobile ads are comfortable making purchases or recommendations using them. But many still havent viewed them. Forty-six percent of smartphone owners have viewed a mobile adand a whopping 64 percent of those who have viewed an ad have made a purchase as a result of mobile advertising. Of note: more than half have never viewed a mobile advertisement on their phone.

The responses varied by sex: men were more likely to make a purchase as the result of a mobile ad (68 percent vs. 58 percent). There is a socialin the classic, sharing sense of the wordelement to mobile advertising too, as 45 percent of users have referred a friend to a product or service as the result of seeing or engaging with a mobile ad. Men are more likely to refer a friend as the result of a mobile ad than women (52 percent vs. 37 percent).

Consumers have viewed and engaged with a variety of types of mobile ads, primarily mobile banner ads (70 percent) and SMS/text-based ads (44 percent).

Their primary means of interaction has been clicking/tapping an ad (38 percent), followed by mobile coupon redemption (31 percent), clicking on a sponsored link in a text message (29 percent), downloading an application (28 percent) or viewing a mobile website (24 percent).

2. Context is still king. Offers need relevance for engagement. For those who have yet to engage with a mobile ad, the reasons were variedled primarily by context: 43 percent stated the ads werent relevant to their interests and 39 percent responded that it did not appeal to me.

Consumers would be more likely to engage with brands if they include a reward, coupon or deal (58 percent). Many (44 percent) are willing to exchange personal information in return for a reward, coupon or dealyet, to date just 28 percent have done so.

3. Despite this familiarity and positive results, major brands are not engaging with consumers via mobile advertising yet.

An overwhelming 74 percent of consumers say that their favorite brands are not advertising to them on their mobile devicea significant missed opportunity.

These figures echo the sentiment of Hipcrickets annual Mobile Marketing Survey, which most recently (October 2011) showed when asked if any of their favorite brands market to them via their mobile phone, only 9 percent replied yes, essentially holding steady with figures from 2010.

4. Tablet owners want in. Some 43 percent of respondents own a tablet (primarily iPad or Android-based device). Of those, 28 percent are more inclined to engage on their tablet device than their smartphone (18 percent).

About Hipcricket Hipcricket, a wholly-owned subsidiary of Augme Technologies, Inc. (OTC.BB: AUGT), is the one-stop mobile marketing and advertising company that empowers brands, agencies and media properties to engage customers, drive loyalty and increase sales. Hipcrickets customers connect with consumers across every mobile channel, including SMS, 2D/QR codes, mobile websites, advertising networks, social media and branded apps. Hipcrickets proven technology, strategic and marketing services and experienced account management teams have provided measurable success to a broad range of national and regional brand-name leaders (e.g., Macys, MillerCoors, Nestle, Clear Channel) across an industry-leading 200,000+ campaigns. The company has also created the first comprehensive mobile ad network that taps into the buying power of the mass market with industry-leading capabilities to target customers via location and highly-specific demographic information across SMS, display, rich media and video. Hipcricket is based in New York, with operations in Seattle, Dallas, Chicago, Atlanta, Los Angeles, San Francisco, and Miami.