Mobile 101:Marketing and Commerce Insights27 February 2014

The Digital Ecosystem in 2007

Connected Surfaces

Connected Mobile Games

Connected Consoles

Laptop

Desktop Digital Kiosks & Social Machines

Digital Out of Home, Theaters, Connected TV

Smartphones

Image Codes

Tablets

The Digital Ecosystem in 2014

WearableTechnology

Connected Cars

2010 2011 2012 2013 2014 2015 2016 20170

50

100

150

200

250

62.6

93.1

115.8

140

159.9

178

193.7207.4

20.2%

Half of all Americans own a smartphone

29.7%36.6%

45%

50.1%55.4.%

59.8%

Smartphone ownership in the US 2010-17 | March 2013

(millions and % of population)

Source: 2013 eMarketer, Inc.

63.5%

2012 2013 2014 2015 2016 2017

0

20

40

60

80

100

120

140

160

180

200

93.9

123.1

143.2

157.1

168.1

178

29.9%

38.9%

44.9%

48.9%51.9%

54.6%

Nearly a third own a tablet or eReader

Tablet ownership in the US 2012-17 | March 2013(millions and % of population)

Source: 2013 eMarketer, Inc.

Increasingly, our mobile devices are our preferred access points to the web

Source: Jumptap and comScore, “Screen Jumpin” September 5, 2013

Time Spent Online Among US Internet Users by Platform and Demographic, April 20 % of total minutesTotal 18-24

Males 25-49

Females 25-49

Total 50+

Total

PC

Smartphone

Tablet

41%

55%

59%

49%

39%

50% 9%

35% 10%

11%

12%

16%

50%

25%

39%

Tablets play a slightly different role, primarily

used at home for leisurely browsing and

online shopping activities.

Tablets play a slightly different role

Smartphones are used throughout the day and play a key role in making real-time purchase decisions that happen in the store or, most often later online. Purchases on smartphones are increasing but still outpaced by tablets and desktop.

Tablets, on the other hand, see peak usage during leisure hours and represent greater engagement with site content as well as more frequent and bigger ticket purchases, hence the term couch commerce.

"Tablets surpassing portables in 2013, and total PCs in 2015, marks a significant change in

consumer attitudes about computer devices and the

applications and ecosystems that power them.”

- Ryan Reith, Program Manager for IDC's Mobility Trackers

Pew surveyed 2,252 U.S. adults, and found that

34% owned a tablet, up from:

– 18% in 2012

– 8% in 2011

– 3% in 2010

Adults ages 35 to 44 own tablets at a higher rate

than any other age category

Tablet Ownership

Responsive Web Design

A customer’s mobile context consists of:

– Preferences: the history and personal decisions the customer has shared with you or with his social networks

– Attitudes: the feelings or emotions implied by the customer’s actions and logistics

– Situation: the current location, altitude, environmental conditions and speed the customer is experiencing

The Future of Mobile is Context

Context Drives Device Choices

The amount of time we have or need

The goal we want to accomplish

Our location Our attitude and state of mind

The Role of Mobile in Retail

34% of online traffic & 16% of online sales come from mobile devices

Source: eMarketer

Mobile is often focused on discovery

Source: Nielsen 2013

Mobile has a greater impact on indirect commerce (in-store use) while tablets play a deeper role in research and direct commerce.

Smartphones play a pivotal role in the shopping process

40% of US consumers report using their devices for showrooming, the process of shopping for a better deal or product online while in-store.

For CPG brands, smartphone-optimized .com content (brand site, microsites, landing pages) is essential to capturing the attention and intent of these consumers, particularly at point of sale.

Showrooming, while unsettling for retailers, provides excellent insight into crafting mobile experiences

Use of mobile in showrooming

To compare prices with another retailer 32

To ask my friends or family what they would recommend buying

16

To take a photo of the product or note down product details to help me remember it for later

22

To look up product information or comparisons 18

To check product availability at another retailer 18

To check if it was easier/more convenient to order the product online

15

To check the range of products at another retailer 14

To receive advice or information from another retailer 8

To purchase the product via an app or website while I was still in the store

7

North America

Mobile’s New Role in E-Commerce

The traditional purchase funnel is being replaced by an “always on” mobile shopping life cycle

http://blogs.hbr.org/cs/2013/06/the_mobile_shopping_life_cycle.html

Mobile’s Influence on Retail Sales

Mobile alone will influence $700B in sales by 2016

The Role of Mobile in Omnichannel

Retailers Lag Behind Consumers’ Omnichannel Desires

• Retailers have to overcome a variety of hurdles to create an omnichannel experience, while have customers have already made the leap. Consumers still make most purchases in a physical store, but they’re hopping from device to device as they gather product information and recommendations before leaving home. Even while in a physical store, many augment their shopping by looking for information via mobile devices.

• More than any other technology, smartphones and tablets are changing the shopping experience for consumers, letting them bridge the online and offline experience—even when stores fail to make it easy for them to do so. “Consumers are a couple of steps ahead of the brand,” said Tony King, founder of luxury retail consultancy King & Partners. “People will check something seven or eight times online before they actually buy … [using] several devices. They are experiencing the brand across all those different channels.”

Mobile Coupons

Mobile coupons are driving mobile commerce growth

Mobile Coupons

Mobile Loyalty Programs/Location Check In Loyalty

Mobile Checkout

Mobile Point of Sale

Mobile Checkout

Starbucks averages over one million mobile transactions per week since launching its mobile payment app in 2011.

Mobile Supported Sales

Mobile Supported Sales

Tesco Subway stores transformed waiting time into shopping time.

Mobile Wallet

Augmented Reality

Mobile sites are best for purchasing products, but mobile apps can be value add, brand relevant content for consumers

80% of smartphone owners want more mobile-optimized product information while they’re shopping in stores.

Nearly 50% of shoppers believe they are better informed than store associates.

Mobile Retail Apps

Skullcandy.com

Skullcandy Mobile App

Mobile App Example – Frank & Oak

Mobile App Example – Touch of Modern

The Mobile Commerce Ecosystem

In Summary …

“The future of mobile is the future of everything.”

- Matt Galligan, co-founder of SimpleGeo

Thanks!Discussion