TMK.edu : MOBILEAugust 19, 2015

THE GROWTH OF MOBILE CONTINUES TO BE STAGGERING

IN 2000, THERE WERE 0.5 BILLION PEOPLE ONLINE AND 0 SMARTPHONES3

3.5

3.0

2.5

2.0

1.5

0.0

1.0

0.5

20001995

People Online (billion)

People Online Smartphones

Source: ITU, a16z

IN 2014, THERE WERE 3 BILLION PEOPLE ONLINE AND 2 BILLION SMARTPHONES4

3.5

3.0

2.5

2.0

1.5

0.0

1.0

0.5

20001995

People Online Smartphones

2014

People Online (billion)

Source: ITU, a16z

IN THE NEXT 5 YEARS, ANOTHER 1 BILLION PEOPLE WILL COME ONLINE... THROUGH SMARTPHONES5

Source: ITU, a16z

5

4

3

2

0

1

20001995 2014

People Online (billion)

2020

People Online Smartphones

BY 2020, 80% OF ADULTS ON EARTH WILL HAVE A SMARTPHONE6

Source: World Bank, GSMA, a16z

8

7

6

5

4

0

3

2

ADULTSPOPULATION

2014 Growth to 2020

PCs

Global Population (billion)

1

SMARTPHONESMOBILETV AUDIENCE

THE SMARTPHONE INDUSTRY ALREADY DWARFS THE PC INDUSTRY7

Source: Gartner, Apple, Google, a16z

PCs iOS & Android

Quarterly Shipments (million)

300

250

200

150

100

0

50

MARCH95

MARCH97

MARCH99

MARCH01

MARCH03

MARCH05

MARCH07

MARCH09

MARCH11

MARCH13

WE ARE AT THE BEGINNING OF THE POST-PC ERA OF CONNECTIVITY AND MOBILE IS DRIVING IT

BUT WHY HAS MOBILE SEEN SUCH GROWTH?

A SMARTPHONE IS A SUPERCOMPUTER IN YOUR POCKET9

A NEW IPHONE HAS625 TIMES MORE COMPUTING POWER THAN A 1995 PENTIUM PROCESSOR

Source: Apple, Intel, a16z

APPLE SOLD 25 TIMES MORE PROCESSING POWERDURING iPHONE LAUNCH WEEKEND

THAN EXISTED IN ALL THE PCS ON EARTH IN 1995

SMARTPHONES SELL TO EVERYONE (YES, EVERYONE) AND AS INCOME FALLS, THE UTILITY OF MOBILE INCREASES

10

Source: Ericsson, McKinsey

Sub-Saharan Africa Population Coverage (%)

80%

70%

60%

50%

40%

0%

30%

20%

CELLULARCOVERAGE

10%

3G COVERAGENOW

3G COVERAGEBY 2019 ELECTRICITY MOBILE

USERS

BUT A SMARTPHONE IS ALSO INHERENTLY DIFFERENT AND MORE USEFUL THAN A PC11

Source: Apple, Intel, a16z

PERSONALSOCIAL

GOES EVERYWHERESENSORS, CAMERAS, GPS, PAYMENTS

AND IS THE ENABLER OF THE INTERNET OF THINGS

MOBILE HAS CHANGED HOW WE INTERACT WITH CONTENT

TODAY, OUR MOBILE ECOSYSTEM HAS EXPANDED TO ALL OF THIS13

CONSIDERATION

BANK/BUY/GIVE

GET SMARTER

EAT/DRINK

COMMUNICATE

READ/WATCH/LISTEN

GAME TRAVELZOCDOC

MD LIVEAETNA

MY FITNESS PALDOC ON DEMAND

WEB MDKAISER PERMANENTE

FITBIT

LIVE HEALTHIER

STITCHERSPOTIFY

PANDORAFLIPBOARD

NETFLIXNYTIMES

YOUTUBE

FACEBOOKYOUTUBE

GMAILINSTAGRAMWHATSAPP

TWITTERSKYPE

SNAPCHATGOOGLE+

VINEPINTERESTLINKEDIN

LINE

CHASECAPITAL ONEMINTVENMOPAYPALGOOGLE WALLET

SEARCHGOOGLE MAPSGOOGLE TRANSLATEGOOGLE DRIVEEVERNOTEWEATHER CHANNELCAMERADROPBOX

SEAMLESSYELPOPEN TABLESTARBUCKSFOOD NETWORKMY RECIPE BOOK

UBERKAYAKHOTELSTRAVELOCITYWAZE

SHOP

FRUIT NINJAANGRY BIRDS

CANDY CRUSH

GILTAMAZON

FANDANGOEBAYETSY

GROUPON

READ14

Source: Reuters Institute Digital News Report 2014, Venturebeat

50%37%

50% OF U.S. MOBILE POPULATIONUSE THEIR DEVICE TO

READ NEWS ONCE A WEEK

65% OF ALL EMAILS IN THE U.S. GET OPENED ON

A MOBILE DEVICE FIRST

GLOBAL U.S % of emails opened by platform

Other

Mobile

WATCH15

Source: Ooyala Global Video Index Report Q3 2014

Digital Video Views Occurring On Mobile (%)

50%

20120%

25%

2013 2014 2015

GLOBAL VIEWERS WATCHING VIDEO VIA TABLETS & SMARTPHONES ACCOUNTED FOR 30% OF ALL VIDEO VIEWS IN 2014 (AND EXPECTED TO REACH 50% IN 2015)

LISTEN16

Source: 2015 Edison Research: The Infinite Dial. Base: Population +12Digital Audio Content: Traditional Radio Programs via Online (i.e. wNYC), Audio Content Available Only Online (i.e. Pandora, Serial)

‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

53%

47%45%

39%

34%

27%27%

21%20%21%

15%16%17%12%

7%5%

53% OF THE U.S. POPULATION LISTENS TO DIGITAL AUDIO CONTENT MONTHLY 73% LISTEN VIA MOBILE DEVICES

Listened To Any Digital Audio Content* (%)

COMMUNICATE17

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

31%

35%37%

41%43%

45%47% 47%

START JOB SEARCH ON MOBILE

86%

70%

Job Seekers (%)LinkedIn Traffic on Mobile (%)

WILLING TO APPLY ON MOBILE

Source: LinkedIn, CareerBuilder

18

COMMUNICATE

LINKEDIN JOB SEARCH RESUME BUILDER JOBR

BUY19

MOBILE NOW ACCOUNTS FOR 50% OF ALL E-COMMERCE TRAFFIC,

AND MILLENNIALS ARE THE DRIVING FORCE

Source: IBM Digital Analytics Report, Adobe 2014 Mobile Consumer Survey

20

STARBUCKS APPLE PAY AMAZON

BUY

BANK21

Source: eMarketer, Adobe 2014 Mobile Consumer Survey Mobile Elite: Segment making up 22% of online U.S. adults and the furthest along on the mobile mind shift: “They connect frequently on multiple devices from multiple locations and use a variety of applications.”

Most Engaged Financial Services on Mobile Device

8 OF 10 BANKING CUSTOMERS SAY MOBILE BANKING

IS IMPORTANT

TOP 3 MOBILE FINANCIAL SERVICES1. REVIEWING BANK ACCOUNT BALANCES2. CONDUCTING BANK TRANSACTIONS3. MAKING PERSON TO PERSON PAYMENTS

BANK22

MOVEN VENMO BANK OF AMERICA

WHAT DO BRANDS NEED TO KNOW?

BRANDS THAT UNDERSTAND ALL OF THEIR AUDIENCE’S MOBILE TOUCH POINTS HAVE AN ADVANTAGE

24

$

UNITED

BRANDS THAT DESIGN GREAT MOBILE EXPERIENCES WIN25

UBER AMERICAN EXPRESS SQUARE REGISTER

26BRANDS THAT DELIVER PERSONALIZED EXPERIENCES ARE MORE CONNECTED WITH THEIR USERS

FEEDLY APPLE iOS STITCHER

BRANDS THAT INTEGRATE INTO OTHER APPS CAN FIND SUCCESS27

Shopping Assistant

Private Chef

Grocery Getter

Personal Banker

TENCENT WECHAT (CHINA ONLY) FACEBOOK MESSENGER

EXPERIENCES MATTER, EVEN WITH ADS

BRANDS WHO TAKE ADVANTAGE OF AD PLATFORM CAPABILITIES CREATE UNIQUE AD FORMATS AND EXPERIENCES

29

Creative should be more than repurposing traditional desktop banner ads; it should

leverage the mobile platform and the unique app capabilities that it’s appearing in (e.g., swiping,

accelerometer, gyroscope, GPS, etc.)

Video content needs to be adapted for the mobile audience so that it grabs users’ attention

within a few seconds

Location data is the cookie of mobile and it can unlock unique targeting capabilities and

drive new behavioral insights

NATIVE/DYNAMIC VIDEO LOCATION

NATIVE30

TWITTER QUARTZ LINKEDIN PANDORA

DYNAMIC31

WESTIN

VIDEO32

INSTAGRAM VINE

LOCATION33

MCDONALD’S

HOW DO BRANDS MEASURE MOBILE EFFECTIVENESS?

THREE COMPLEMENTARY METHODS THAT BRANDS CAN USE TO MEASURE35

Mobile App Mobile Web

PAID MEDIA CROSS-DEVICEPROPRIETARY APP

CROSS-MEDIA ATTRIBUTION36

product: Online Campaign Ratings (OCR) Cross-Platform Campaign Ratings (XCR)

OCR: next-day view of online & mobile audienceXCR: unduplicated cross-platform reach

CROSS-MEDIA ATTRIBUTION37

product: PIQ PrimeTimeHH set-top box data from Rentrak is merged with location analytics from PlaceIQTarget consumers when they are mobile and on-the-go, based on their TV viewership

RETAIL ATTRIBUTION38

connect:

target:

determine:

determine:

TV viewing data to mobile devices in same HH

Those TV viewers when they are near retail

Whether consumers actually visit the stores

Whether store visits resulted in purchases

SUMMARY39

Smartphones are always with us

The digital experience has become overwhelmingly mobile, social, and personal

Mobile connects digital & physical (experiences, media, devices)

Every brand has mobile moments with its customers (good or bad)

New platforms drive new experiences which, in turn, create new expectations

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THANK YOU