UK MOBILE ADVERTISING MARKET GREW 32% IN 2009 TO £37.6 MILLION
IAB and PwC research reveals mobile ad spend beat expectations last year
Industry categories revealed for the first time – Entertainment & Media and
Telecoms brands biggest mobile advertisers
www.iabuk.net

Despite a contraction in the advertising sector in 2009, total spend on
mobile phone advertising in 2009 rocketed by 32% year on year to a new high
of £37.6m, according to second, annual Internet Advertising Bureau (IAB) –
the trade body for digital marketing – and PricewaterhouseCoopers (PwC)
study.

While some brands and media owners cut back their investment in mobile
advertising, the medium grew at a faster rate than predicted due to its
exceptional targeting, immediacy and return on investment.

Every quarter in 2009 showed consistent, strong growth with Q4 delivering a
record Display advertising spend of £5.5 million – an increase of 28% period
on period.

Mobile advertising formats
Both paid-for search and display formats performed above expectations.

Mobile search was the fastest growing format – up 41% to a new high of £20.2
million and a market share of 54% (50% in 2008).

Mobile display – which includes banners, text links, tenancies pre- and
post-roll and in-game advertising – grew by 24% to £17.4 million and a
market share of 46% (50% in 2008).

Driving mobile display was expenditure on banners and text links, which were
up 26% year on year to £14.6 million (£11.7m in 2008), to a new market share
of 39% (41% in 2008).

Tenancies were up 17% year on year to £1.4m (£1.2m in 2008) and a market
share of 3.8% (4.3% in 2008).

Other formats including display advertising within SMS / MMS were up 26%
year on year, to £1.2 million (£1m in 2008) and a market share of 3.2% (3.4%
in 2008).

INDUSTRY CATEGORIES
For the first time the 2009 report reveals the top display ad categories.

The top five are: Entertainment & Media (61.5%); Telecoms (14.7%); Finance
(8.1%); Consumer Goods (3.2%); and Government, social and political (2.7%).

Jon Mew, head of mobile at the Internet Advertising Bureau, said: “While
market conditions saw many advertisers reduce their investment and testing
on mobile, these findings paint a positive picture of a compelling new
advertising medium. Mobile is an effective, highly targeted and
complementary advertising channel.  Signs are that 2010 will be important
year as confidence and budgets increase.”

Eva Berg-Winters, PricewaterhouseCoopers LLP, said: "A successful year for
mobile has been underpinned by mixed performances. There were two distinct
approaches from advertisers and publishers. They either cut spend or
continued to invest and develop their use of mobile - with a view to come
out on top following the downturn.

"Recent investment in mobile has significantly outweighed the budgets cuts.
This signals the belief that it is set to become an important medium."

Key drivers and insights
• Mobile internet usage increased by 21% in 2009 with 18.9m handsets now
accessing the mobile internet every month*
• 23% of time spent accessing internet is on a mobile device – average time
spent surfing on a mobile is now 32 minutes a day *^
• Smartphone usage is up 70% and growing faster in the UK than Europe*
• Unlimited data plans (unlimited internet access) up 113% in 2009*
• 77% of mobile internet sessions now exceed five minutes**
• Time spent on social networks now greater on mobiles than a PC - 41
minutes a day spent on Facebook via mobiles and 31 minutes a day via PC*

Sources: *Comscore/GSMA MMM; ^UKOM/Nielsen; **Yahoo! Appetite

Notes
Only actual media spend is reported to ensure fair comparison to other
media, including display advertising. Figures do not include SMS / MMS
production and delivery costs, and other mobile marketing revenues like app
production.

All growth figures are like for like, meaning that the results compare
companies that submitted in 2008 and 2009.

Ends

For more information, contact:
Amy Kean, senior PR and marketing manager, IAB,  This e-mail address is being protected from spambots. You need JavaScript enabled to view it , 07739 372 042
Mark Terry-Lush, Renegade Media,  This e-mail address is being protected from spambots. You need JavaScript enabled to view it , 07740 432 112
Anna White, PricewaterhouseCoopers, 020 7804 9719 / 07717 577 416
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Notes to editors:
Background to the study
• The IAB has been working with PricewaterhouseCoopers since 1997 to survey
the value of the online advertising market.  This is the first time they
have collaborated to find out the size of mobile advertising in the UK.
• 17 companies have participated in the survey representing hundreds of
websites.
• Total advertising revenue is reported on a gross basis.
• The figures are based on participants’ data except search figures which
are derived from modelling and industry estimates.

About the IAB
The Internet Advertising Bureau (IAB) is the trade association for digital
advertising. With over 480 members, it's run for the leading media owners
and agencies in the UK internet industry. Online is an exciting and
fast-growing medium and our job at the IAB is to work with members to ensure
marketers can identify the best role for online and the emerging mobile
market, helping them engage their customers and build their brands.

Through the dissemination of research and the organisation of regular
events, we aim to put digital on the agenda of every marketer in the UK,
acting as an authoritative and objective source for all internet advertising
issues whilst promoting industry-wide best practice.

About PricewaterhouseCoopers
The member firms of the PricewaterhouseCoopers network provide
industry-focused assurance, tax and advisory services to build public trust
and enhance value for its clients and their stakeholders.

More than 146,000 people in 150 countries across our network share their
thinking, experience and solutions to develop fresh perspectives and
practical advice.

Unless otherwise indicated, 'PricewaterhouseCoopers' refers to
PricewaterhouseCoopers LLP (www.pwc.com/uk) a limited liability partnership
incorporated in England. PricewaterhouseCoopers LLP is a member firm of
PricewaterhouseCoopers International Limited.