Mobile

Strategy
iUM Client Mobile Seminar Copenhagen, 9th June 2011

Background

MOBILE SUBSCRIPTIONS TO HIT 5B THIS YEAR, GLOBALLY OUR PLANET IS HOME TO 6.8 BILLION PEOPLE!
0.8B 1.2B 1.3B 1.4B 1.6B

5.3B
1 out of every 7 minutes of media consumed today happens on mobile devices 10 BILLION apps have been downloaded to date Half of all time spent on mobile Internet is on social networks; a quarter of all Facebook updates come via mobile phones
Source: International Telecommunication Union (ITU) 2010; comScore 2010; TomiAhonen Consulting 2010

ONE THIRD OF MOBILE USERS AROUND THE WORLD CHOOSE MOBILE INTERNET OVER PC ACCESS"

50% among innovators

Source: Initiative mobile consumer research study, June, 2010

SMARTPHONES WILL SOON BE MAINSTREAM SURPASSING 50% ADOPTION BY Q3-2011"

Accumulated benefits +

Personal Computer Organization of information

Internet Flow of information

Mobile Location Convenience Presence

SMARTPHONES WILL SOON BE MAINSTREAM SURPASSING 50% ADOPTION BY Q3-2011"

Robust mobile browsing experience coupled with full QWERTY input fast becoming consumer expectation

Source: The Nielsen Company

RESULTING IN SHIFT TO MOBILE MEDIA & CONTENT POWER USERS AS MAJORITY

80% 70% 60% 50% 40% 30% 20% 10% 0% Mobile Media

% adoption among owners

80% 70% 65% 59% 43%

26% 12%
E-mail

37%
14%
Browser

13% 8%
Apps Social Networking

10%
IM

Non-smartphone

Smartphone

Mobile Trends: Comscore Android Crashing Smartphone Party; ComScore and AdMob

MOBILE IS ABOUT CONSUMERS THAT ARE MOBILE"

Not just smartphones

MOBILE IS ABOUT CONSUMERS THAT ARE MOBILE"

Not just smartphones

MOBILE DEVICES ACT AS OUR CENTRAL HUB TO INFORMATION & COMMUNICATION"

Foursquare

Social

Location

Rewards

Facebook Places

User can check-in at current location

Share what they are doing with friends

Check Friends Nearby

Earn badges or coupons from local merchants

MOBILE IS BEST AS A PARTICIPATION CHANNEL VS. INTERMITTENT EXPOSURE" Mobile usage of Facebook grew 130%+ between 2009 and 2010, with mobile users displaying 2X more activity on average"

CONSUMPTION

CONTRIBUTION

COMMUNICATION mobiles forte

SMARTPHONES HAVE ENABLED CONSUMPTION OF MEDIA THROUGHOUT DAILY ROUTINES

Mobile is changing the locations and contexts of interactions between brands and consumers
WHEN DO MOBILE USERS USE THEIR PHONES?

Other downtime

At work

While shopping

At home Commuting

Source: UM & AOL Study of Smartphone Users

Using Mobile To Win

MOBILE IS MOST EFFECTIVE WHEN APPLIED TO CONSUMERS CONTEXTS"

Portable Searchable Social

Interactive

Viral

Transactional

KEY BENEFITS TO MARKETERS"

Mobile can ll a number of criFcal roles for marketers

Close to point-of-sale and during decision process Extends campaign reach Response mechanism Unduplicated audiences Cost-eecQve delivery of CRM Customized content to opted-in consumers Complements to brand awareness

MOBILE HAS MARKETING VERSATILITY"

Brand Awareness

Trial / Sampling

Customer Acquisition

Name Capture, Sweepstakes & Prizing

Promotions

Integrated Marketing

Couponing

Loyalty / CRM

MOBILE MARKETING ROADMAP"

Personal
Relationships & Loyalty

Profitable Relationships

Demand & Lead Generation

Value & ROI

New Revenue

Advanced Interactivity & Information

Interactivity

Awareness & Branding Basic Interactivity

Presence

Mass
Interactivity & Complexity

MOBILE MARKETING ROADMAP"

An And not Or World: Branding & AcFvaFon

Personal
Relationships & Loyalty

CRM Programs
Demand & Lead Generation

Profitable Relationships

New Revenue Actions

Value & ROI

1:1 Communications
Advanced Interactivity & Information

Interactivity

Awareness & Branding Awareness & Branding Basic Interactivity

Presence

Mass
Interactivity & Complexity

SMARTPHONE MOBILE WEBSITE USAGE"

Chart Source: eMarketer.com

APPLYING MOBILE TO THE WHOLE MARKETING ECOSYSTEM"

Price & Consumer Promotions Digital
iGRPs Impressions Site Visits Keyword Search Rich Media Site TV Advertising Mobility Total TRPs By Daypart By Unit Length (:15s and :30s) By Copy Price Discounts Prior Purchase Behavior

PR
Positive, negative Print, TV, blogs, online Word of Mouth Major news events (lawsuit)

Brand Sales

Trade Promotions & Shopper Marketing

Features Displays In-store discounts

Print Advertising
Magazine Impressions By Size (Spread vs.. Page) By Copy Newspaper Impressions

External Influences Loyalty & CRM

Seasonality Global economic trends Major news events

Database

Radio & OOH Advertising Cross-sell & Up-sell

Total TRPs

MOBILE ECOSYSTEM
MEDIA
Display SMS Niche

Paid Media
Portals

Vending

Outdoor

Kiosk

Location Aware

MERCHANDISING
In-Store

POS
RFID Tags

Syndication

Content Blog Publishing Aggregation

Conversations
Viral Blogs Geek Squad Indirect Geosocial Networking

Bluecasting

Messaging

Mobile SitesRetailer mobile site

Forums

Affinity/Loyalty Groups Knowledge Base Coupons

In-Game Newsletters On-Deck

Search CONSUMERS

Direct

Community
Customer Service

CRM/ Loyalty Direct Purchase

Mobile Payments

Circulars Keywords

Support
SEO Blog Search

Mobile Devices & Apps

PR

iPhone Smartphones PSP/ Gaming Systems GPS

Applications

Mobile Apps Widgets Portal Apps Web-to-Store SKU Lookup Retailer Promos Manufacturer Promos

Store Maps

Drive To Store

Promotions

CUSTOMER VALUE

RETAILER MOBILE STRATEGY"

Key Strategic Initiatives
Expanded & Enhanced Loyalty

Link to loyalty cards

Interact with consumers in the aisle

Effective Cross-Selling & Up-Selling Informed & Productive Shoppers

Promote hot items, specials and bigger basket sizes

Retailer Mobile Strategy Merchandising Media Customer Value

ESPECIALLY FOR SMARTPHONE USERS, MOBILE IS NOT A STANDALONE EXPERIENCE"

have been driven from mobile to other media

follow brands have been across multiple driven to mobile media via other media

use TV and mobile concurrently

Source: UM & AOL Study of Smartphone Users

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Measuring Success

MEASUREMENT APPROACH: MEASURING WHAT MATTERS"

Tracking Brand and Direct Response Results

Loyalty & Advocacy Lead Generation Intent Driven Interactivity Branding Reach & Exposure
Impressions Clicks / CTR Awareness Consideration Engagement Time spent Purchase Intent Cost per Lead Transactions Cost per New Customer / Transaction Cross-Channel ROI Financial contribution to bottom-line Channel-Specific ROI Cross-Channel Optimization Strategic Planning and Forecasting

Furthest From Sales

Closest to Sales

Metrics gain importance the closer they get to contribuQon to sales

MEASUREMENT APPROACH: MEASURING WHAT MATTERS"

Tracking Brand and Direct Response Results

Lead Generation Intent Driven Interactivity Branding Reach & Exposure
Impressions Clicks / CTR Awareness Consideration Engagement Time spent Purchase Intent Cost per Lead Transactions Cost per New Customer / Transaction

OpQmizaQon, Cross-Channel ROI Cross-Channel Tracking, ROI to Financial contribution to Financial contribution ReporQng bottom-line bottom-line
Channel-Specific ROI Channel-Specific ROI Cross-Channel Cross-Channel Optimization Optimization Strategic Planning and Strategic Planning and Forecasting Forecasting

Loyalty & Advocacy Loyalty & Advocacy

Furthest From Sales

Closest to Sales

Metrics gain importance the closer they get to contribuQon to sales

Examples

STARBUCKS!
Starbucks leverages mobile from awareness to transaction
Mobilized loyalty card program to enable payments & boost CRM insights

Guide to Starbucks products + save to favorites

Location-based paid media promotion to drive users to store

Multichannel, check-in based social program via Foursquare creating Frapp Badge and share with friend

28

TARGET
Piloting Shopkick to reward store visits Mobile My Target Weekly Ads via SMS, mobile Web iPhone & iPad apps

360 COVERAGE ACROSS MULTIPLE TACTICS"

Consistent experience across web, mweb, apps Opt-in to deals & shopping lists pushed via SMS save coupons Smart for in-store Recommendation scanning Engine extended to mobile web & apps

Ads can be personalized based on preference

29

TARGET

EXPANDING PRINT MARKETING TO IPAD"

Online Catalog

Product line-up

Special offer and coupon

Shopping list

Store locator

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MOBILE FOR MOBILE CONSUMERS

INVESTING IN CHANNEL BEST SUITED FOR BRAND PERSONALITY
Workout utilities for Nike purchasers

Nike ID mobile integration with OOH exactly where Nike wearers are likely to be

Extension of sponsorship, promotion via rich mobile experiences

iPhone geotagged content for users on-thego looking to get the inside track on a city

31

CREATING CONTENT DESIGNED FOR MOBILE USE"

Branded App

Urban hiking paths using locaFon based services Timberland store and product integraFon Outdoor adventure gaming and music integraFon 5000+ downloads in rst month 30,000+ visits monthly to product catalog

Results

32

PROXIMITY TRIGGERED PROMOTIONS"

Geo-Fencing Utilized Placecast opt-in subscribers, utilizing virtual geofences around retail locations and outdoor points of interest throughout the U.S. When consumers moved within a specified proximity of stores, North Face offers were pushed to the user, along with location details for the store. Results 54% of consumers visited The North Face 1-3 times after receiving a location-based text alert 41% made a purchase after receiving a location-based text alert, and another 42% were reminded of an upcoming purchase they needed to make 48% visited The North Face within 1-3 days after a locationbased text alert

33

MOBILE MEDIA: AWARENESS"

SMART PHONES AND LOCATION BASED SERVICES"

Best Buy Banner Ad

Opens Google Maps to find the nearest Best Buy

Users can call or get directions to the retail location near them

LOCATION BASED: 3RD PARTY APPS"

User Scrolls To nd Supermarkets

User Lands on Banner Expands Supermarkets Results Over Content Page and Clicks User Touches Retailer CoverGirl Banner They Want to Shop

Retailer locaFons AutomaFcally appear Mapped on iPhone Map ApplicaFon

SHIFTING FROM MASS TO MICRO MARKETING"

125M+ downloads in Year 1. 230MM+ PR Media impressions since Launch 3MM web/mobile impressions in year 1

IPHONE SLEEP TRACKER APP"

Track hours Tips

History

ZIPCAR"

View, extend or Unlock and lock cancel reservaFons Reserve Zipcars around the on the go corner or across the globe

ENTERTAINMENT: AWARENESS, INTEREST & TICKET SALES"

ENTERTAINMENT: AWARENESS, INTEREST & TICKET SALES"

Trending on Twitter ahead of opening day
Full-length trailer Tweeted from the @Super8Movie Twitter account"

Viewable on Twitter.com and popular Twitter clients"

From Twitvid, can be shared with friends on Twitter and Facebook"

Written and directed by J.J. Abrams Produced by Steven Spielberg

In less than 10 hours, amassed 1.5 million views on TwitVid"

HOLIDAY GIFT ADVISOR"

AMERICAN EXPRESS CARD ACQUISITIONS"

Click on Banner

Drive to landing page

Click to call the Amex call center

BEST WESTERN"
Capture consumers making hotel booking decisions on the go. " " 18 million promotional messages across 3.4 million navigation devices were activated by hotel proximity or search. " " Mobile interactions 700X greater than PC. " " " 23% of mobile users became " new loyalty members" " " "68% higher than from PC" " " " " " "

COVERGIRL MCOMMERCE USER EXPERIENCE MOBILE MEDIA"

Select Product

Select Quantity & Add to Cart

"

Discovery via mobile media banner ad

" "
"
Complete Checkout

COVERGIRL MCOMMERCE - MOBILE"

Mobile banners and below banner text calls to action "

" "
"

Shop Now Buy Now Get it! Buy it! Click & Shop Click & Buy Click 2 Shop Now Click to Buy Buy In 4 Luxe shades Shop 4 Luxe shades Tinted with shimmers For bold, notice-me lashes For big, bold, notice-me lashes For lashes with a hint of shimmer For bold lashes - Shop Now For bold lashes - Buy Now

COLLABORATIVE M-COMMERCE"
ReadyU: Parents and college kids stay stocked up

IN- STORE"

SHOPPER MARKETING"
Push Online Shopping List to Mobile

Mobile ColorMatch

CPG FIRMS EXPERIMENTING WITH MOBILE COUPONS"

3rd Party delivery for Huggies, Jimmy Dean, Kelloggs, Kotex, Trident and Tyson. P&G loading coupons onto store loyalty cards. Target: rst naFonal retailer to oer scannable mobile coupons.

MOBILE COUPONING"
What works: Retailer coupons Foot trac drivers/DiscounQng Retailers: Old Navy, Bath & Body Works, McDonalds

MOBILE COUPONING"
Whats complicated: NaQonal coupons Trial and price incenQves Switchers, lapsed users

OpQcal scanners vs. Laser scanners

Scanner

Point of Sale System

MOBILE COUPONING"
Things are changing: Next generation: " Applied Couponing

MOBILE COUPONING"
Things are changing: Next generation: " Applied Couponing

MOBILE COUPONING"
Things are changing: Next generation: " Applied Couponing

Q&A

Appendix

PRICING AND SPENDING"

Media: Typical CPMs in mobile adverFsing range from $10-$50 Test buys are typically in the $25K-$50K range, Expanded buys are in the $50K-$150K range, Scaled buys are $250K+ for avg. 8 week ights" Suciency: Need to spend at least $150k/month general market and $75k in segmented/ targeted. Trial:" Based on Sampling ROI X # of samples