Your SlideShare is downloading. ×
Mobile Shopping Framework Study 2010
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Mobile Shopping Framework Study 2010

456
views

Published on

Published in: Technology, Business

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
456
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
15
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • According to Nielsen, about 35% of consumers saw a mobile phone ad in their latest Mobile Advertising Report. This represents about 56 million consumers.
  • We know the PC market is large across these categories. However, mobile categories are starting and the scale and potential are large.
  • Mobile shoppers rely heavily on their devices and agree that they can browse the Internet whenever they want because of them, but a strong majority still say that the mobile Internet experience could be betterUsers on all platforms agree in similar numbers that the experience could be betterAnd, iPhone users are most likely to say that browsing is as easy on the Internet as it is on the PC, and that they browse more because they can use a mobile device (while Blackberry users are least likely to agree with both).
  • Only a quarter say browsing the Internet on a phone is as easy as it is on a PC.Teens 13-17 are nearly twice as likely as adults 18+ to say that browsing the Internet on a phone is as easy as it is on PC.And, iPhone users are most likely to say that browsing is as easy on the Internet as it is on the PC, and that they browse more because they can use a mobile device (while Blackberry users are least likely to agree with both).
  • Mobile shoppers are much more likely to access the Internet on weekday than weekend mornings, while the reverse is true after 11:00pm.Mobile usage throughout the week is consistent by gender, but skews older earlier in the day and younger later in the day (starting at about 4PM on weekdays and 12PM on weekends).
  • Virtually all mobile shoppers access the Internet on their mobile devices when they are both in and out of their homesUsage across most locations skews younger and slightly male.
  • Mobile users use mobile internet more when in the living room, at work, in a bedroom, at a hotel, at school, at the dinner table, and in a bathroom.
  • The most common activities while watching TV are communicating with others (via texting, talking, social networking, email, etc.).A quarter say they typically browse content related to programming or advertising that they are watching.While younger and female mobile users are much more likely to communicate with others while watching TV, accessing information related to what’s on is much less skewed, and is very similar across age breaks.iPhone and Android users are more likely to do most of these activities than are Blackberry users.
  • The vast majority of mobile shoppers also access the Internet while in a mall or store
  • Communicating with others while in stores skews younger—including sending pictures of products, which more than half of teens 13-17 say they do. Younger mobile users are also more likely to use/request a coupon and scan a barcode, while older users are more likely to get more information about a product.iPhone and Android users are more likely to do most of these activities than are Blackberry users.
  • Perhaps one way to address the divide between user interest and unsatisfactory experience is through the development of dedicated mobile apps. A full three-quarters of mobile shoppers say they have downloaded apps.Digital content, financial services, entertainment, and restaurants/dining are the most popular categories, but overall usage within most of these categories is low, presenting an opportunity for content developers.App usage skews younger and male across almost all categories, with the exceptions being the largest categories overall and healthcare.Blackberry users typically have the lowest app usage overall.
  • Value, utility, and brand recognition have similar importance across age and gender breaks, while the app’s pedigree, entertainment value, download counts, and reviews are more important for younger than older users.About 1 in 2 find apps that are helpful at finding information in their local area as important when deciding on an APP for their mobile device. And, having a trusted and recognizable app brand is important among 1 in 2 mobile internet users who downloaded apps. Yahoo! app users are much more interested in an app’s ability to help throughout the shopping process than are non-users.
  • Though relatively few plan to use mobile more than PC for purchasing activities, the majority plan to at least use it as much as PC over the next 12 monthsiPhone users are more likely to find the mobile platform to be useful across all stages of the purchase funnel than are users of other platforms. Regardless of platform, perceptions of mobile usefulness also skew younger and ethnic.
  • Relative to shopping, research is seen as much better for doing in a store. As with shopping, there is a sense that mobile’s research value is based on the immediate need and impulse to get more information about a purchase.
  • However, nearly as many say that it is too difficult to research purchases on mobile.Security is less of a concern with research than with purchases.Teens 13-17 are nearly twice as likely as adults 18+ to say that mobile is the most convenient way to research purchases, and that mobile research is no different from PC research.Blackberry users are slightly more likely than iPhone and Android users to say mobile research is not safe/secure.Yahoo! app users are more likely than non-users to say they do more research overall because they can use mobile and that they will be doing more research in the future.
  • Median duration of research is a day or less across all categories, indicating a shortening of the research process—particularly in higher-involvement categoriesYahoo! app users spend nearly twice as long researching purchases as non-users do.
  • Mobile shoppers also typically rely on their PCs, family/friends, and, to a lesser extent, TV, magazines, and in-store displays to supplement their mobile research
  • Categories in which mobile users are passionate about include Electronics, Auto/Auto parts and Apparel. They also spend a lot of time in these categories. Financial, Travel, Health and Dining are those categories in which users are most active and attentive. And, Dining and Food and Beverage triggers the desire to quickly finish what they were doing. Boredom is most relevant for entertainment items/content and mobile digital content.
  • Advertising needs to keep location and geography in context. Consumers believe this is important across categories at 65% to 78%. However, just about 20% to 35% believe that it currently is helpful and finding geographically relevant information.
  • WATCHING VIDEO: Entertainment has by far the most users who successfully watch video, with electronics also leading the other categories by a wide margin; failure rates are similar across categories, at about 10%NOTE MOBILE %s BELOW. Tried & successful Tried and NOT successful Never tried, Interested Visited a website 76% 8% 7% Used a search engine 66% 9% 11% Got store information 58% 9% 13% Compared 38% 10% 19% Compared prices 37% 10% 20% Texting 39% 8% 16% Coupon 24% 10% 29% Pro reviews 32% 9% 19% Deals, coupons, offers or promotions 28% 10% 23% “Click to call” 32% 8% 20% Scanned a barcode 17% 9% 34% Read user reviews 32% 9% 18% Took and sent pic 34% 8% 17% Apps 30% 10% 19% Looked at pics 33% 9% 17% Email 31% 8% 17% Shopping cart 19% 8% 22% Made purchases 19% 8% 21% Gift cards or certificates 16% 8% 23% Online video 19% 9% 18% IMing 18% 8% 17% search results ads 20% 9% 15% Online ads 19% 9% 15% video ads 15% 9% 16%
  • PURCHASING: Digital content users, have by far the most success making a purchase, while entertainment and travel lead the rest of the categories; home improvement, food/beverage, health, and clothing have the least successOFFERS AND PROMOTIONS: Offers and promotions are most successfully accessed by electronics, travel, clothing, and beauty shoppers; digital content users are most likely to have tried and been unsuccessfulDIGITAL ADS: Beauty, food/beverage, and electronics shoppers have the most success responding to ads, and home improvement, travel, and digital content shoppers the leastCOMMUNICATION: Entertainment, travel, and dining users have the highest proportion of shoppers successfully communicating with others, and digital content, home improvement, and travel the lowest
  • More advanced shopping activities—including scanning barcodes, watching video (and responding to video ads), managing a shopping cart, purchasing gift cards, and making purchases have high failure ratesBasic mobile functions typically have low failure rates, but more advanced shopping activities—including scanning barcodes, watching video (and responding to video ads), managing a shopping cart, purchasing gift cards, and making purchases overall have failure rates of 30% or more
  • After looking up category information on their mobile phone about 2 in 5 make a purchase (either offline, online or mobile). Most of these purchases occur either offline or online. They also follow-up by looking for more information online by using a search engine. The third most popular action is updating ones social networking status which is on par with PC as an action after looking up category info.
  • Though they may not go through the entire purchase funnel on their mobile device, more than half of mobile shoppers say that they at least occasionally browse or research using a mobile device first and then purchase afterwardsAs mobile continues to develop as a purchasing platform, the usefulness of each of these steps should grow.
  • Nearly half of mobile shoppers consider it a good alternative when they are not near a computer—and nearly as many say this is the only time they make mobile purchasesA third or more of shoppers see mobile as being good for time-sensitive, impulsive, or unplanned purchases.There is a sense that mobile’s value is less dependent on consumer involvement with the product or service (whether it is cheap or cared a lot about) than on the need and impulse to make the purchase. CATEGORY: (DATA NOT SHOWN)Mobile shoppers in the financial, dining, home, and digital content categories are slightly less likely to agree to that the platform is good for purchasing across most of these situations
  • User experience for purchasing on mobile devices is low however there is hope with some believing they will make more purchases in the future and it’s no different vs. PC A quarter think they will be making more mobile purchases in the future, and a fifth say they make more purchases overall because they can use mobile About a third of mobile shoppers think the platform is not safe/secure enough to make purchases, or that it is too difficult to make purchases.Teens 13-17 are nearly twice as likely as adults 18+ to say they make more purchases overall because they can use mobile; they are also about twice as likely to say it is the most convenient way to make purchases.Blackberry users are more likely than iPhone and Android users to say it is too difficult to make mobile purchases.Yahoo! app users are slightly less likely to say it’s too difficult to make mobile purchases, and are about twice as likely as non-users to say they make more purchases overall because they can use mobile and that they will be making more mobile purchases in the future.
  • Mobile shoppers in the clothing, electronics, travel, and dining categories are most likely to say it doesn’t seem safe/secure to make purchases and that it’s too difficult to make purchases
  • Though fewer mobile shoppers than PC shoppers remember seeing advertising, they are much more likely to say they “always” look at itAbout two-fifths of Mobile Internet Category Users. across categories say they remember seeing related advertising while they were engaged in the shopping process.Yahoo! app users are nearly five times as likely as non-users to say they “always” look at category advertising (23% vs. 5%).Teens 13-17 are about twice as likely as adults 18+ to say they “always” look at advertising (33% vs. 17%).
  • Financial, dining, and digital content shoppers are least likely to say they recall seeing related advertising during their shopping process—and among those who have seen advertising, shoppers in these categories are among the least likely to look at it
  • Overall, mobile shoppers still seem somewhat skeptical about the benefits that advertising can provide Nearly half of Mobile Internet Category Users. say they are okay with advertising if it gives them free content in return. Nearly a third agree that ads can drive them to look for more information, have become more interesting than they used to be, and are helpful at finding geo-targeted information.Accepting advertising in exchange for free content is most acceptable to younger mobile users (60% of 13-17s and 51% of 13-24s agree); they are also most likely to say they sometimes look for more information after seeing an ad.CATEGORY: DATA NOT SHOWNAlong with being the least likely to see and react to related advertising, financial, dining, and digital content shoppers also have lower agreement with most advertising-related statements
  • Mobile shoppers report that for advertising on the platform, presentation is less important than content\\ It is more important that ads be fact-based, informative, clear, and relevant than entertaining.While mobile shoppers give less importance to ad type, simple, text-based ads rate slightly higher than do those that feature graphical or multimedia elements.Ratings of nearly all of these attributes skew younger, male, and ethnic.
  • Mobile shoppers in the auto, beauty, clothing, food/beverage, and home improvement categories are generally most open to related advertising
  • Transcript

    • 1. Why? Yahoo!, in partnership with Nielsen, wanted to create a framework around Mobile Internet Category Users and behaviors  Measurement: Use quantitative means to benchmark and measure mobile behaviors and attitudes in general and by category over time  Categories: Better understand the behaviors of Mobile Internet Category Users both in general and across a set of 12 product/advertising categories  Comparison: How category/shopping attitudes and usage differ among those accessing on the mobile platform versus those accessing only a PC  Shopping: Current and future lower and upper funnel shopping mobile penetration  Mobile Activities: Shopping outcomes tried, successful (or not), and interested in. Actions taken as a result of those shopping outcomes. What sources were used? And, how much time do they spend doing research, etc.  Mobile Attitudes and Experience: Attitudes overall and experience while looking up category level information (i.e. impulsiveness, boredom, active shopping, etc.)  Mobile Advertising: Stated category recall, attitudes, and preferences 2Yahoo! Presentation, Confidential
    • 2. How? WHO 8,384 respondents ages 13-64 5,313 were Mobile Internet Category Users: • Own a mobile device with access the Internet • Access information related to at least one of 12 product categories 3,071 were PC Internet Category Users: • Own a desktop/laptop/tablet PC with Internet access • Access information related to at least one of 12 product categories • PC Internet shoppers could not access any category information on a mobile device but could still own a mobile phone FOOD/ DIG CON ENT DINE C ELEC FIN TRAV APPARL HEALTH BEAUTY HOME AUTO BEV Mobile Base 937 678 663 451 570 370 370 272 282 283 227 210 PC Base NA 454 320 313 293 224 258 264 251 234 223 237 HOW 25-minute-online-survey WHEN June 2010 3Yahoo! Presentation, Confidential
    • 3. What are we covering? Sizing the Mobile Category Market Mobile Consumption Basics Mobile Category Activities Understanding the Core Principles that Impact Mobile Category Usage How Mobile Category Information Impacts Purchase Understanding more about Mobile Advertising 4Yahoo! Presentation, Confidential
    • 4. Where do we go from here? What we learned What it means Mobile is still very much seen as a secondary platform There is a tremendous opportunity for retailers and for shopping. However, mobile and non-mobile users  advertisers to help transform mobile into a full-fledged alike say they are interested in accessing more mobile shopping platform. shopping information in the next 12 months. There seems to be significant latent demand for mobileMore advanced shopping activities—including scanning couponing and the incorporation of barcode scanning and barcodes, managing a shopping cart, purchasing gift  other key mobile shopping activities pressing the need forcards, and making purchases have high failure rates but better services on mobile devices (to encourage usage and also have high interest rates (by about a half or more). acceptance). Mobile shoppers are highly engaged with advertising— The small screen lends itself to more noticeable advertising, one out of five mobile shoppers who have seen but formats need to become more sophisticated. This also  advertising say they always look at it. However, mobile suggests the need for partners that are more sophisticatedadvertising opportunities tend to be more unsuccessful. and experienced in mobile. Nearly one in three mobile shoppers who have tried to It is of utmost importance that, regardless of content or  respond to an ad have not had success, format, ads be as easy as possible for users to interact with. Along with being the least likely to see and react to These high incidence categories have somewhat normalizedrelated advertising, financial, dining, and digital content  their advertising behavior. Lower incidence categories have shoppers also have lower agreement with most more engaged users. advertising-related statements.The vast majority of Internet mobile users also watch TV There are substantial cross-promotional opportunities to  at the same time. reach mobile internet users. 5 Yahoo! Presentation, Confidential
    • 5. Where do we go from here? What we learned What it means Mobile’s value is less dependent on consumer It doesn’t matter how expensive or how important the involvement within the category (whether it is cheap or  product is - advertising can showcase both small and big- cared a lot about) than on the need and impulse to ticket items. make the purchase—especially when not near a PC.Those who use popular categories are more likely to just These niche mobile Internet users are the early adopters of use those categories while those who are niche users  this behavior and it is important that we better understand tend to use a variety. their profile. Smaller categories have the highest percentage of users It’s not just about digital content, dining and entertainment. saying they plan to do the same/more upper to lower  Lower incidence categories provide the greatest opportunity funnel activities on their mobile device in the next 12 for portals and developers to maximize. months. These are the categories that are currently relatively Healthcare, home improvement, and auto have the  underserved, and provide the greatest opportunity to lowest mobile usage relative to PC usage. content developers.Mobile application usage is highest in categories that are If this pattern holds true, clothing and electronics could be mature purchasing engines on the PC (entertainment,  the next successful mobile categories. financial, and digital content). More than half of category research lasts a day or less Mobile could shorten the research and purchase process on a mobile device. Auto and home improvement have  compared to PC. This could typically turn a longer researchthe longest research times, and dining the shortest (with process on the PC to more impulse. 68% of those users making decisions same day). 6 Yahoo! Presentation, Confidential
    • 6. Sizing the Mobile Category Market
    • 7. Only a third of data mobile phone users have seenadvertising on their devicesSizing the Category According to Nielsen Mobile Advertising Report Non-data users 65.3 228M Data users not exposed to 106.3 Mobile Phone Users advertising Data users exposed to 56.3 35% advertising Saw a mobile phone adSource: Nielsen Mobile Advertising Report, March 2010 | Mobile Data Users (n=31,409) 8Yahoo! Presentation, Confidential
    • 8. Although mobile category info seeking is juststarting, the scale and potential are largeSizing the Category Mobile PC Digital content for a mobile phone 23% 38M 46M Restaurants/dining 21% 34M 85M Entertainment items and content 21% 34M 97M Financial services 19% 31M 95M Consumer electronics and technology 17% 28M 93M Personal or vacation travel 16% 26M 85M Clothing apparel and fashion accessories 15% 25M 92M Healthcare or medical related 14% 23M 93M Packaged food and beverage 12% 20M 74M Beauty and personal care 12% 20M 70M Home improvement 12% 20M 83M Automobiles or automobile parts or accessories 10% 16M 67MHow often do you use your Internet-enabled mobile device/computer to access any shopping-related information for thefollowing types of products and services (which can include using your device to research products/services, look upinformation/reviews/ articles, notice or click on advertising, or make a purchase)? “Ever Access.”Base=Total online population. Category sizes based on incidences from Mobile Ad Framework survey and total US onlinepopulation (13-64) of 164 Million. Source=Nielsen NetRatings. 9Yahoo! Presentation, Confidential
    • 9. There is room for even greater growth in thefuture of mobile category developmentFuture: I am interested in using mobile internet to look up… Mobile: PC: Non-Mobile Current Users Internet users Entertainment items and content 73% 56% Restaurants/Dining 73% 54% Digital content for my mobile phone 73% 38% Consumer electronics and technology 66% 50% Personal or vacation travel 61% 41% Financial services 58% 42% Clothing, apparel and fashion accessories 57% 42% Healthcare or medical 48% 39% Packaged food and beverage 47% 34% Beauty and personal care 46% 30% Home improvement 44% 35%Automobiles or automobile parts or accessories 41% 32%Now let’s think about the next 12 months. Regardless of whether or not you do this now please tell us how interested you arein using an Internet-enabled mobile device to access any shopping-related information for the following types of products andservices (which can include using your device to browse, research products/services, look upinformation/reviews/articles, notice or click on advertising, or make a purchase)? “Extremely/very/somewhat interested.”Base=Mobile/PC Internet shoppers. 10Yahoo! Presentation, Confidential
    • 10. Those who shop in niche categories are likely to beshoppers in nearly every other categoryCategory OverlapCategory Incidence 23% 21% 21% 19% 17% 16% 15% 14% 12% 12% 12% 10% Digital Content -- 76% 68% 74% 81% 78% 86% 85% 90% 90% 90% 90% Entertainment 58% -- 64% 65% 84% 77% 86% 84% 92% 90% 92% 94% Dining 53% 62% -- 66% 71% 88% 88% 89% 94% 87% 94% 91% Financial 40% 46% 51% -- 61% 68% 70% 74% 79% 75% 83% 77% Electronics 44% 51% 49% 52% -- 68% 79% 80% 88% 85% 90% 89% Travel 35% 40% 52% 50% 54% -- 65% 73% 80% 72% 85% 85% Clothing 31% 43% 36% 43% 60% 55% -- 77% 79% 92% 81% 76% Health 28% 34% 38% 39% 51% 50% 60% -- 74% 72% 77% 76% Food/ Bev 26% 31% 34% 40% 47% 47% 61% 67% -- 76% 75% 69% Beauty 26% 31% 27% 36% 48% 47% 62% 68% 72% -- 70% 71%Home Improvement 23% 27% 32% 37% 47% 48% 54% 63% 68% 69% -- 71% Auto 23% 26% 32% 33% 40% 47% 53% 56% 64% 61% 74% -- At/above average Below averageHow often do you use your Internet-enabled mobile device/computer to access any shopping-related information for thefollowing types of products and services (which can include using your device to research products/services, look upinformation/reviews/ articles, notice or click on advertising, or make a purchase)? “Ever Access.”Incidence Base=Total online population. Cross-tab base: Mobile Internet Users within that Category. 11Yahoo! Presentation, Confidential
    • 11. Mobile internet users skew younger, non-white,higher income & educated, rural and suburbanand are less likely to own a PC Mobile Internet PC Mobile Internet PC User Internet User User Internet UserMale 51% 47% RIM BlackBerry 25% 16%Female 49% 53% Apple/iPhone 22% 2%13-24 (Net) 28% 20% Samsung 14% 24%25-34 (Net) 27% 19% LG 9% 23%35-44 (Net) 21% 19% Motorola 9% 15% HTC 7% 4%45-54 (Net) 15% 23%55-64 (Net) 9% 19% AT&T 34% 22%MEAN AGE 34.52 39.71 Verizon Wireless 25% 33% Sprint/Nextel (Net) 17% 19%White 76% 82% T-Mobile 12% 9%Yes, of Hispanic origin 13% 7%Black or African-Am 11% 9% DEVICE OWNERSHIP: PC/Laptop computer 79% 100%Average Income Smart/Feature Phone (Net) 94% 49% 78.09K 55.37K(Thousands) Smartphone/PDA 64% 10% Advanced features 43% 40%Yes, Children 42% 33% MP3/portable media player 61% 48% Handheld gaming device 32% 21%Urban 30% 23% Basic mobile phone 15% 45%Suburban 55% 49% Tablet PC 6% 1%Rural 15% 28%College or more 51% 39%Some college 30% 35%High school 12% 17% 12Yahoo! Presentation, Confidential
    • 12. Demographics of high incidence categories alsodiffer compared to PC users within that categoryDemographics – Mobile has more … vs. PC (Within category) More female About the same as PC More male More female More male More likely younger Same average age More likely younger More likely younger More likely younger More likely non-white More likely non-white More likely non-white More likely non-white More likely non-white Higher income Higher income Higher income Higher income Higher income More likely Parents More likely Parents More likely Parents More likely Parents More likely Parents More likely Married and More likely Married More likely Married More likely Single More likely Single Single More likely to have More likely to have More likely to have More likely to have More likely to have graduated college or graduated college or graduated college or graduated college or graduated college or more more more more more More likely to be AT&T More likely to be AT&T More likely to be AT&T More likely to be AT&T More likely to be AT&T subscriber subscriber subscriber subscriber subscriber 13Yahoo! Presentation, Confidential
    • 13. And, demographics of low incidence incidencecategories differ compared to PC category usersDemographics – Mobile vs. PC (Within category) More likely male More likely male More likely male More likely male More likely female More likely male More likely younger More likely younger More likely younger More likely younger More likely younger More likely younger More likely non-white More likely non-white More likely non-white More likely non-white More likely non-white More likely non-white Higher income Higher income Higher income Higher income Higher income Higher income More likely Parents More likely Parents More likely Parents More likely Parents More likely Parents More likely Parents More likely Single More likely Single More likely Married More likely Single More likely Single More likely Single About the same have More likely to have More likely to have More likely to have More likely to have More likely to have completed college or graduated college or graduated college or graduated college or graduated college or graduated college or more more more more more more More likely to be AT&T More likely to be AT&T More likely to be AT&T More likely to be AT&T More likely to be AT&T More likely to be AT&T subscriber subscriber subscriber subscriber subscriber subscriber 14Yahoo! Presentation, Confidential
    • 14. Mobile Attitudes & Consumption Basics
    • 15. Mobile is critical in daily life but many saymobile Internet could be betterI agree with the following… I like being able to use the Internet on my 69% mobile device, but it could be better My cell phone is critical in my daily life 68%I can browse the Internet whenever I want thanks 66% to my mobile device I browse the Internet more often because I can 46% use my mobile devicePlease indicate how much you agree or disagree with each of the following statements. “Agree.” Base=Mobile Internet Users 16Yahoo! Presentation, Confidential
    • 16. Mobile also complements PC usage andenhances the internet experienceI agree with the following… I sometimes visit a site on my mobile device and 59% follow-up on my PC I sometimes visit a site on my PC and follow-up on 34% my mobile device Mobile Internet is more convenient than home 30% connections I visit different sites on my mobile device than I do 29% on my PC Mobile technology is more exciting than PCs 28%Browsing the Internet on my phone is as easy as on 26% my PCPlease indicate how much you agree or disagree with each of the following statements. “Agree.” Base=Mobile Internet Users 17Yahoo! Presentation, Confidential
    • 17. Usage is high throughout the day – with peaksstarting after lunchMobile Internet Usage by Time of Day Weekdays Weekends 70% 69% 70% 65% 58% 71% 71% 66% 64% 43% 58% 40% 26% 23% 29% 17% 6 to 9am 9 to 12pm 12 to 4pm 4 to 6pm 6 to 8pm 8 to 11pm 11 to 1am 1 to 6amWhat times of the day do you typically use the Internet or web-enabled Internet applications on your mobile device?Base=Mobile Internet Users. 18Yahoo! Presentation, Confidential
    • 18. Usage is both in and out of home – with 2 in 5using in the bathroomMobile Internet Usage Locations - Access Frequently/Occasionally At a hotel 63% At school 46% At work 66% At a restaurant/café/bar 65% At a social gathering/function 58% At a concert 29% Out 93% In a movie theater 29% • On the go 89% In the car 66% • Retail 71% On a subway/train/bus 49% Outdoors 69% Waiting on a line 67% In a store 63% At a mall 58% At home 84% At the dinner table in my home 36% In my bedroom 68% In my living room Home 89% 75% Watching TV 71% In a bathroom 41%Please think about when you are in the following locations. When you are in each location below, how often do you access theInternet on the mobile device you use most often? “Frequently/occasionally.” Base=Mobile Internet Users. 19Yahoo! Presentation, Confidential
    • 19. Mobile Internet allows for usage about the sameas PC or more across a variety of locationsMobile/PC Usage Locations - Access Frequently/Occasionally MOBILE PC 74% 75%71% 68% 66% 66% 63% 52% 49% 46% 41% 36% 32% 28% 17% 5%Watching TV In my living At work In my At a hotel At school At the In a bathroom room bedroom dinner table in my homePlease think about when you are in the following locations. When you are in each location below, how often do you access theInternet on the mobile device/PC or Laptop you use most often? “Frequently/occasionally.” Base=Mobile Internet or PC Users. 20Yahoo! Presentation, Confidential
    • 20. The majority of mobile users access mobileInternet while watching TVAccess Internet while watching TV 13% 7% 16% 22% Never 20% 36% Rarely Occasionally Frequently 51% 35% Mobile PC or LaptopPlease think about when you are in the following locations. When you are in each location below, how often do you access theInternet on the mobile device/PC Laptop you use most often? “Frequently/occasionally.” Base=Mobile Internet /PC Users. 21Yahoo! Presentation, Confidential
    • 21. 1 in 5 search for more information related tothe commercials they sawContent they are browsing while watching TV Mobile PC Communicating with a friend or family member via texting 56% NA Updating/reading social networking sites 40% 53% Browsing content on the internet not related to what I’m watching 37% 70% Communicating with friend/family member via email 33% 49% Using mobile applications 33% NA Browsing content on the internet related to what I’m watching 24% 28% Doing Internet searches/looking up information related to a commercial that I saw 23% 32% Communicating with friend/family member via IM 19% 22%What are you typically doing while you are on your mobile device while watching TV?Base=Mobile Internet and PC users who use it while watching TV. 22Yahoo! Presentation, Confidential
    • 22. 9 in 10 have accessed the mobile webat a storeAccess Internet while at a store at the mall 15% 29% Never 23% Rarely 23% Occasionally 41% Frequently 38% 21% 10% At a store At a mallPlease think about when you are in the following locations. When you are in each location below, how often do you access theInternet on the mobile device you use most often? “Frequently/occasionally.” Base=Mobile Internet Users. 23Yahoo! Presentation, Confidential
    • 23. In-store usage is about communication and product information Mobile activities while at a store or mall Communicate with a friend or family member via texting 70%Take and/or send a picture of a product/product details to a friend or family member 48% Communicate with a friend or family member via email 44% Communicate with a friend or family member via IM-ing 25% Help you shop or get information about a product/service 38% Shopping Activities Use or request a coupon 20% 49% Scan a barcode 15% Browse for content not related to what I was in the store/mall for 35% Play a game 24% You mentioned that you use your Internet-enabled mobile device within a store or a mall. Do you ever use it in a store or mall to do the following? Base=Mobile Internet Category Users. who access it in a store or mall. 24 Yahoo! Presentation, Confidential
    • 24. 3 in 4 have downloaded mobile apps clearlyshowing an interestWhat kinds of mobile applications are they using? Digital content for my mobile phone 44% Financial services 33% Entertainment items and content 30% Restaurants/Dining 27% 75%Have Downloaded Consumer electronics and technology Personal or vacation travel Packaged food and beverage 24% 22% 20% An App Clothing apparel and fashion accessories 18% Healthcare or medical related 17% Beauty and personal care 17% Home improvement 17% Automobiles, parts or accessories 16%Now we’d like you to think about what specifically you currently do (or have done) for each of the following product categoriesusing your computer or laptop. Please select all that apply for each. “Used an application on my mobile device.” Base=MobileInternet Users. 25Yahoo! Presentation, Confidential
    • 25. Purchase and passion drive usage and downloadsof applicationsWhat’s important in your decision to download an app? It’s something I’m interested in 75% PASSION It looks entertaining 53% I’m passionate about the content 49% Finding information when I need it 60% Finding information in my local area 52% INFO & Help me search for a product or service 47% PURCHASE User reviews 44% Help me throughout my shopping process 37% Professional reviews 36% It’s free 75% OTHER Recognizable and trusted brand 54% Recommendations from friends or family 45%How important are each of the following in your decision to download an app to your internet enabled mobile device?“Extremely/very important.” Base=Mobile Internet Users who download apps. 26Yahoo! Presentation, Confidential
    • 26. Mobile Shopping Penetration
    • 27. We asked mobile internet users about thecategories they use…  Automobiles or automobile parts or  Packaged food and beverage (such as accessories (such as repair info/tips, tires, groceries, snack items, recipes, cooking tips, tools, wheels, engines, brakes, etc.) etc.)  Beauty and personal care (such as shampoo,  Healthcare or medical related (such as make-up, perfume, grooming, beauty tips, services, remedies, medication, healthy etc.) eating, etc.)  Clothing apparel and fashion accessories  Personal or vacation travel (such as airline (such as style tips, jeans, shirts, outerwear, tickets, hotels, car rentals, etc.) kids clothing, jewelry, footwear, sizing info etc.)  Restaurants/Dining (such as casual, fast food, bakery/café’s, fine dining or local restaurants  Consumer electronics and technology (such as in your area) cell phones, digital cameras, computers, gaming consoles, GPS, etc.)  Home improvement (such as tips, designing- related, furnishings, accessories, repair items,  Entertainment items and content (such as indoor/ outdoor, garden, etc.) DVDs, games, music, concert/movie tickets, TV shows/clips, etc.)  Digital content for my mobile phone (ringtones, apps, music)  Financial services (such as banking, paying bills, financial calculators etc.) 28Yahoo! Presentation, Confidential
    • 28. Currently, the PC experience still offers a betterexperience through the funnel…Mobile & PC – In the Purchase Funnel – Net of all Categories 51% 50-54% plan to To hear about or discover a product and service do more or the same 35% on mobile in the next 12 months across the funnel 78% To help me learn more 45% 74% To help me narrow down the selection PC 43% Mobile 71% To help me make a final decision 42% 62% To keep up-to-date on news or deals 44%How useful is using your mobile device/PC to help you with each of the following aspects of your browsing or research processfor <<CATEGORY>>? “Extremely/very helpful” summary.Base=Mobile/PC Internet shoppers. 29Yahoo! Presentation, Confidential
    • 29. …with great opportunities and strides needed inhigher incidence categoriesMobile Usefulness in Purchase Funnel Dig. Con. Ent. Dining Elect. Finance Travel Apparel Health Food/Bev Beauty Home Auto To hear about ordiscover a product and 34% 34% 32% 37% 26% 31% 38% 45% 36% 41% 40% 38% serviceTo help me learn more 39% 44% 43% 52% 36% 44% 47% 53% 50% 50% 49% 54% To help me narrow down the selection 35% 40% 46% 47% 32% 43% 46% 45% 55% 52% 52% 43% To help me make a final decision 38% 38% 41% 46% 29% 43% 48% 48% 46% 47% 45% 49% To keep up-to-date on news or deals 41% 42% 36% 47% 40% 44% 48% 52% 48% 49% 48% 47% At/above average Below averageHow useful is using the Internet or applications on your mobile device to help you with each of the following aspects of yourbrowsing or research process for <<CATEGORY>>?Base=Mobile Internet Category Users. 30Yahoo! Presentation, Confidential
    • 30. Categories that have lower incidence also have thegreatest ramp for future growthStated Future Use of Mobile in the Purchase Funnel (More or About the Same as PC) To hear about or discover a product 46% 48% 45% 50% 47% 46% 40% 48% 53% 53% 50% 55% and serviceTo help me learn more 47% 48% 45% 52% 49% 46% 46% 47% 54% 56% 53% 57% To help me narrow down the selection 47% 49% 47% 51% 52% 49% 49% 51% 55% 56% 59% 61% To help me make a final decision 48% 49% 47% 48% 50% 47% 52% 51% 55% 57% 56% 57% To keep up-to-date on news or deals 52% 52% 51% 57% 54% 53% 55% 58% 62% 61% 61% 66% At/above average Below averageOver the next 12 months, which will you be using more to do each of the following for <<CATEGORY>> information/products/services, a computer or an internet-enabled mobile device?Base=Mobile Internet Category Users. 31Yahoo! Presentation, Confidential
    • 31. For researching, mobile is great forconvenience, especially when not near a PCI agree with the following… – Net of all Categories Mobile is good for doing research when I’m not near a computer or laptop 56% Proximity to PC I only research purchases on a mobile device when I’m 64% not near a computer 50% It’s good for researching unplanned purchases 45% Mobile is good for doing time-sensitive research 45% Mobile is good for researching impulsive purchases Speed/Convenience 41% 65% I only research purchases on a mobile device when it’s faster than using a computer 33% It’s the most convenient way to research purchases 23%Regardless of whether or not you do this now, please tell us how much you agree or disagree with each of the followingstatements about researching <<CATEGORY>> purchases using a mobile device. “Agree.”Base=Mobile Internet Category Users. 32Yahoo! Presentation, Confidential
    • 32. For higher incidence categories it is aboutproximity, while lower is about convenienceI agree with the following… Dig. Con. Ent. Dining Elect. Finance Travel Apparel Health Food/Bev Beauty Home Auto Proximity to 57% 66% 69% 68% 57% 69% 73% 67% 63% 61% 63% 61% PC Speed & 55% 60% 66% 69% 58% 71% 74% 69% 67% 68% 68% 64% Convenience At/above average Below averageRegardless of whether or not you do this now, please tell us how much you agree or disagree with each of the followingstatements about researching <<CATEGORY>> purchases using a mobile device. “Agree.”Base=Mobile Internet Category Users. 33Yahoo! Presentation, Confidential
    • 33. A third think they will be doing more researchbecause mobile enables themI agree with the following… – Net of all Categories I do more research overall because I can use my mobile device 31% I think I’ll be researching more purchases on a mobile device in the future 31% It’s no different from researching a purchase on a computer 27% It’s the most convenient way to research purchases 23% It’s too difficult to do research 30% It doesn’t seem safe/secure to research 23%Regardless of whether or not you do this now, please tell us how much you agree or disagree with each of the followingstatements about researching <<CATEGORY>> purchases using a mobile device. “Agree.”Base=Mobile Internet Category Users. 34Yahoo! Presentation, Confidential
    • 34. Typically, consumers spend less than a weekusing their phones to researchHow much time did you spend researching? 6% 10% 12% 12% 14% 6% 14% 14% 15% 16% 14% 23% 23% 9% 17% 8% 9% 13% 20% 12% 12% 14% 15% 8% 13% 32% 38% 37% 26% 36% 31% 27% 41% 23% 46% 42% 68% 43% 45% 41% 40% 42% 42% 42% 33% 37% 29% 30% Less than a day 1 day-1 week More than 1 week NoneHow much time did you spend researching <<CATEGORY>> information or products or services on your mobile device?Base=Mobile Internet category Users. 35Yahoo! Presentation, Confidential
    • 35. Travel and auto have the longest average mobile research sessions, while dining has the shortest Length of Mobile Research Session – Mean in Minutes 31.6 28.5 26.0 25.6 25.8 25.1 24.4 19.3 19.7 17.6 17.6 13.8On average, how much time did you spend on each session related to browsing or researching on your mobile device for<<CATEGORY>> information or products or services? Base=Mobile Internet category Users. 36 Yahoo! Confidential
    • 36. 3 in 5 use internet via PC to complement theirmobile category researchOther sources used when looking up category info – Net of all Categories Internet using my PC/Laptop 59% Family, friends, or colleagues 43% TV 26% Magazines 25% In-store displays 21% Newspapers 18% Professional(s) 15% Salespeople 14% Informational brochures 13% Radio 12% Books 10% 800 or toll-free number 9%What other sources besides using your mobile device did you typically use when browsing or researching <<CATEGORY>>information/products/services? Select all that apply. Base=Mobile Internet Category Users. 37Yahoo! Presentation, Confidential
    • 37. Aside from their phones, the Internet and WOMare integrated into their search for category infoOther sources used when looking up category info Dig. Con. Ent. Dining Elect. Finance Travel Apparel Health Food/Bev Beauty Home Auto Internet 53% 64% 60% 64% 51% 72% 62% 61% 54% 55% 56% 57% Family or friends 36% 49% 54% 44% 31% 51% 44% 43% 40% 44% 40% 34% TV 18% 39% 20% 35% 17% 23% 29% 26% 34% 29% 27% 23% Magazines 15% 30% 17% 29% 16% 27% 44% 28% 31% 43% 27% 22% In-store displays 16% 23% 9% 33% 10% 7% 42% 15% 39% 38% 37% 18% Newspapers 9% 22% 21% 17% 19% 22% 18% 17% 26% 18% 20% 21% Professional(s) 5% 8% 13% 16% 21% 17% 14% 40% 8% 25% 25% 23% Salespeople 13% 13% 2% 23% 8% 6% 23% 11% 14% 22% 26% 26% Brochures 7% 11% 10% 15% 14% 23% 9% 25% 14% 12% 20% 13% Radio 7% 21% 12% 15% 8% 11% 8% 11% 14% 16% 8% 10% Books 5% 10% 3% 11% 10% 17% 8% 20% 13% 11% 18% 11% 800 or toll-free number 7% 7% 5% 8% 12% 20% 5% 15% 10% 11% 11% 10% At/above average Below averageWhat other sources besides using your mobile device did you typically use when browsing or researching <<CATEGORY>>information/products/services? Select all that apply. Base=Mobile/PC Internet Category Users. 38Yahoo! Presentation, Confidential
    • 38. And rely on different and sensible sources ofinformationCORRESPONDENCE MAP*: Other sources used when looking up category info WORD-OF-MOUTH +INTERNET Radio Family, friends, or colleagues MEDIA Internet using my PC/Laptop Newspapers TV Magazines In-store displays TRADITIONAL INFORMATION/ 800 or toll-free number Informational brochures IN-STORE *Interpretation Note: The closer the attribute Salespeople Books to the category the higher the association or correlation.What other sources besides using your mobile device did you typically use when browsing or researching <<CATEGORY>>information/products/services? Select all that apply. Base=Mobile/PC Internet shoppers. 39Yahoo! Presentation, Confidential
    • 39. Mobile Principles
    • 40. Mobile Principles LOCATION refers to the importance that ASAP refers to wanting to finish what they consumers place on mobile ads which are were doing as quickly as possible. relevant to their current location. GOAL ORIENATION refers to users knowing TAKING MY TIME refers to users taking their exactly what they were doing and actively time to complete what they were done. shopping and looking up category information. PASSION refers to passion that they feel ATTENTIVENESS refers to users giving their full about the category information they were attention to the category information seeking. BOREDOM refers to when consumers ROUTINE refers to the general routine that experience boredom when accessing this they go about accessing this type of category content. information. TRUST refers to the experience of accessing a trusted source on their mobile device. Safety and security means it’s currently lacking and important for that category. 41
    • 41. Understanding the principles can help tuneadvertising performance across categories Mobile Digital Content  Entertainment     Dining      Electronics       Financial   Travel      Apparel         Health      Food & Bev     Beauty          Home Improvement     Auto       Table above is based on above average scores or correspondence analysis on each of the mobile principles. 42Yahoo! Presentation, Confidential
    • 42. Mobile experiences and mindset differs bycategoryCorrespondence Map*: Describes Mobile Experience With Category PASSION Accessed info is a Accessed Info as part of passion of mine general routine Took my time to complete Gave my full attention to the what I was doing information that I accessed Exploring and no specific Actively shopping/looking up info goal to accomplishACTIVE AND NO GOAL Knew exactly what I needed to do and achieved itATTTENTIVE I was using trusted site/app Wanted to finish as quickly as possible Accessed info *Interpretation Note: because I was bored The closer the attribute to the category the BOREDOM higher the association or correlation.Using the scale below, please tell us how well each statement describes your experience while you are using your mobile devicefor <<CATEGORY>> information or products or services. Base=Mobile Internet category Users. 43Yahoo! Presentation, Confidential
    • 43. Mobile advertising needs to keep location andgeography in context across categoriesMobile Location Based-Advertising 77% 75% 78% 76% 69% 68% 71% 65% 67% 67% 64% 62% 35% 32% 35% 34% 34% 27% 27% 27% 26% 28% 23% 20% Mobile ads relevant to my current location (% Important) Mobile ads are helpful at finding geo-graphically relevant information (% Agree)Using the scale below, please tell us how well each statement describes your experience while you are using your mobile devicefor <<CATEGORY>> information or products or services.Please tell us how important the following types of ad features are to you when it comes to <<CATEGORY>> advertising on yourmobile device. “Extremely/very/somewhat important.” Base=Mobile Internet Category Users. 44Yahoo! Presentation, Confidential
    • 44. Goal orientation is strong for dining, apparel, CPG,and auto categories…Actively Shopping/Looking up Information With a Goal 50% 48% 47% 47% 46% 44% 43% 43% 44% 43% 40% 44% 38% 41% 40% 40% 41% 41% 39% 39% 33% 34% 26% 25% I knew exactly what I needed to do and I achieved it I was actively shopping/looking up category informationUsing the scale below, please tell us how well each statement describes your experience while you are using your mobile devicefor <<CATEGORY>> information or products or services. Base=Mobile Internet category Users. 45Yahoo! Presentation, Confidential
    • 45. Attentiveness varies by category…Gave Full Attention 41% 42% 38% 39% 39% 39% 36% 34% 34% 32% 33% 31% I gave my full attention to the category information I was accessingUsing the scale below, please tell us how well each statement describes your experience while you are using your mobile devicefor <<CATEGORY>> information or products or services. Base=Mobile Internet Category Users. . 46Yahoo! Presentation, Confidential
    • 46. …which impacts the urgency consumers are willingto invest in info seekingThe Element of Time 55% 49% 48% 48% 48% 48% 47% 47% 46% 45% 45% 45% 41% 40% 39% 38% 37% 34% 32% 32% 29% 30% 28% 28% I wanted to finish what I was doing as quickly as possible I took my time to complete what I was doingUsing the scale below, please tell us how well each statement describes your experience while you are using your mobile devicefor <<CATEGORY>> information or products or services. Base=Mobile Internet Category Users. . 47Yahoo! Presentation, Confidential
    • 47. Consumers are willing to explore apparel,entertainment, food/bev, auto, and homeJust Exploring and Bored 45% 37% 37% 38% 37% 34% 35% 33% 38% 30% 30% 35% 29% 28% 30% 30% 28% 23% 26% 26% 19% 23% 14% 18% I was just exploring and did not have a specific goal to accomplish I accessed category information because I was boredUsing the scale below, please tell us how well each statement describes your experience while you are using your mobile devicefor <<CATEGORY>> information or products or services. Base=Mobile Internet Category Users. . 48Yahoo! Presentation, Confidential
    • 48. Trust critical for travel & apparel and safety &security is vital for finance & autoTrust & Safety and Security 55% 55% 49% 48% 48% 49% 45% 46% 46% 46% 44% 45% 39% 43% 43% 42% 39% 40% 39% 38% 37% 36% 35% 33% 30% 29% 28% 28% 27% 26% 26% 27% 24% 23% 20% 22% I was using a website or mobile application I trust (% Describes Experience) Mobile is safe/secure to make purchases (% Agree) Mobile is safe/secure to research (% Agree)Using the scale below, please tell us how well each statement describes your experience while you are using your mobile devicefor <<CATEGORY>> information or products or services. Base=Mobile Internet Category Users. . 49Yahoo! Presentation, Confidential
    • 49. …most notably because they are morecategories of passion or routine for consumersCategory Passion and Routine 32% 30% 29% 30% 29% 30% 26% 29% 28% 21% 21% 22% 22% 26% 20% 20% 19% 20% 19% 19% 18% 16% 15% 14% I accessed category information as part of my general routine Accessing category information is a passion of mineUsing the scale below, please tell us how well each statement describes your experience while you are using your mobile devicefor <<CATEGORY>> information or products or services. Base=Mobile Internet Category Users. . 50Yahoo! Presentation, Confidential
    • 50. Mobile Internet Shopping Category Activities
    • 51. Specific Tasks by Category – Tried & Successful Used search Used search Restaurant Used search Check balance Used search locatorDownloaded a Movie times Store Pay bills Weather ringtone Menu look up information Look at Used search Travel Downloaded pictures Used search Product price engine destination an app comparison information Download Decided where Click to callDownloaded a music, TV to eat Reviews Transportation game schedules Retailer Connected Request a information Compare Downloaded Social sharing with others via coupon prices music of content via email Looked for text Social Finance App Deals and Click to call shopping offers Social travelingEarlier you said you’d accessed <<CATEGORY>> shopping information. What specifically did you do on your Internet-enabledmobile device, and what are you interested in doing? Base=Mobile Internet Category Users. Top Activities Listed outside ofvisiting a website with some responses netted together. 52Yahoo! Presentation, Confidential
    • 52. Specific Tasks by Category – Tried & Successful Used search Used search Used search Used search Got store Used search engine information Got store Researched Got store Dealer information symptoms & information Got store Used search information causes information engine Apparel Recipes Compare car pictures Looked for Compare Comparison prices a doctor Compare prices Shopped Compare prices Safety prices Homeopathic Read reviews Requested a information remedies Nutritional coupon Social Information Some social Financing shopping Learned about shopping Looked for a a key medication Click to call deal Look up promotionsEarlier you said you’d accessed <<CATEGORY>> shopping information. What specifically did you do on your Internet-enabledmobile device, and what are you interested in doing? Base=Mobile Internet Category Users. Top Activities Listed outside ofvisiting a website with some responses netted together. 53Yahoo! Presentation, Confidential
    • 53. Search engines, social networking, and general consumer portals are used most for category info Mobile Websites/Applications Visited & Used– Net of all Categories Search engines (e.g., Google, Yahoo, Bing etc.) 74% Social networking (e.g., MySpace, Facebook) 53% General consumer portals (e.g, Yahoo!, AOL, MSN, etc.) 51% General news (e.g., NY Times, CNN) 45% Stores/retailers (e.g., Walmart or Sears) 44% Online video (e.g., YouTube, Yahoo! Video) 44% Online-only retailers (e.g., Amazon.com) 42% Category retailer/stores 41% Category brand or manufacturer sites 39%Shopping comparison (e.g., Yahoo! Shopping, Google Checkout) 39% Category reviews 35%Category emails (e.g. sent daily, weekly, etc.) that I signed up for 33% Online auction (e.g., Ebay) 32% Coupon/discounts (e.g., couponcabin.com) 28% Category discussion boards/blogs 26% Weekly or Sunday circulars 23% Magazine (e.g., Real Simple, Cosmo) 23% Full-length TV programming online (e.g.,Hulu) 23% And which of the following online sources did you use or access on your mobile device when browsing consumer electronics/technology information/products/services? Please tell us if it was via the internet using your browser or an application installed on your mobile device. Base=Mobile Internet Category Users 54 Yahoo! Presentation, Confidential
    • 54. For those who tried or are interested we seemobile activities approaching similar rates to PCShopping Activities Tried or Interested in – Net of all Categories Mobile PC Visited a website 91% 96% Used a search engine 86% 91% Got store information 79% 85% Compared products or services 67% 82% Compared prices of products or services 67% 83% Read professional reviews for products or services 61% 70% Read user reviews 59% 65% Looked at pictures of products/services 58% 76% Created/managed a shopping cart or list 48% 48% Looked for/purchased gift cards or certificates 47% 48% Watched an online video 46% 50%Earlier you said you’d accessed <<CATEGORY>> shopping information. What specifically did you do on your Internet-enabledmobile device,/PC or Laptop and what are you interested in doing? Base=Mobile Internet Category Users. Or PC Internet Users 55Yahoo! Presentation, Confidential
    • 55. … with social shopping, deal hunting, andadvertising being a part of the mobile experienceShopping Activities Tried or Interested in – Net of all Categories Mobile PC Made a Purchase (Net) 62% 66% Used or requested a coupon 62% 74% Looked for deals, coupons, offers or promotions 61% 76% Took and sent a picture of product /details to others 59% 34% Communicated with someone about ___ via email 57% 44% Communicated with someone about ___ via IMing 44% 24% Interacted with ads w/in search results 44% 54% Interacted with online ads 42% 46% Interacted with video ads 40% 39% Communicated with someone about ___ via texting 63% Click-to-call automatic routing 60% Looked for/downloaded apps to my mobile device 59% Scanned a barcode 60%Earlier you said you’d accessed <<CATEGORY>> shopping information. What specifically did you do on your Internet-enabledmobile device,/PC or Laptop and what are you interested in doing? Base=Mobile Internet Category Users. Or PC Internet Users 56Yahoo! Presentation, Confidential
    • 56. More advanced shopping mobile activities have high failure rates Mobile Shopping Outcomes – Unsuccessful Activities (Among Those Tried) Responded to/viewed/clicked on ___ video ads 37% Scanned a barcode 34% Looked for/purchased ___ gift cards or certificates 33% Watched an online video about ___ products/services 32% Created/managed a shopping cart or list for ___ products or services 31% Communicated with someone about ___ via IMing 31% Responded to/viewed/clicked on ___ ads 31%Responded to/viewed/clicked on ___ ads within mobile search results 30% Used or requested a coupon 29% Made ___ purchases on my mobile phone 29% Looked for ___ deals, coupons, offers or promotions 26% Looked for/downloaded ___ apps to my mobile device 25% Read professional reviews for ___ products or services 23% Read user reviews 23% Compared ___ products or services 22% Compared prices of ___ products or services 21% “Click to call” 21% Communicated with someone about ___ via email 21% Looked at pictures of ___ related products/services 20% Took and sent a picture of ___ product/product details to a others 18% Communicated with someone about ___ via texting 16% Got store information 13% Used a search engine 12% Visited a website 9% Earlier you said you’d accessed <<CATEGORY>> shopping information. What specifically did you do on your Internet-enabled mobile device,/PC or Laptop and what are you interested in doing? Base=Mobile Internet Category Users. Or PC Internet Users 57 Yahoo! Presentation, Confidential
    • 57. Mobile elicits action from category users, thoughat a lower incidence than PCActions Taken After Accessing Mobile Category Information Mobile PC Made a purchase offline/online/mobile (NET) 43% 67% Used a search engine for more info 36% 61% Looked online for more info 24% 50% Posted a comment/updated social networking site 22% 18% Told a friend, family member or colleague 22% 33% Went to a retailer/store/distributor for more information 20% 33% Called a toll-free or 800 number 20% 21% Considered buying product/services 19% 41% Entered a contest or sweepstakes 17% 39% Used a coupon 15% 36% Downloaded apps to my mobile device 15% Recommended product/service to someone else 15% 23% Forwarded a link or video to others 14% 18% Thought more favorably about a brand or product 13% 28% Read or wrote on a blog 12% 14% None of the above 23% 8%Which of these actions have you ever taken as a result of browsing or researching <<CATEGORY>> information or products or serviceson your mobile device/PC or Laptop? Please select all that apply. Base=Mobile Internet Category Users or PC Internet Users. 58Yahoo! Presentation, Confidential
    • 58. Mobile Purchase Drivers
    • 59. When consumers use their phone to research,½ the time they plan on making a purchaseAfter researching on mobile, I purchase product/service…(via any method) 21% Never Rarely 28% Occasionally 38% 51% Frequently or Frequently Occasionally Buy After Research 13%When you are browsing or researching in general, how frequently would you say you do each of the following using yourInternet-enabled mobile device? “Browse or research using my mobile device first and then purchase afterwards.”Base=Mobile Internet Users. 60Yahoo! Presentation, Confidential
    • 60. Convenience drives mobile categorypurchasing, so does impulse buysMobile purchase drivers Mobile is good for making purchases when I’m not near a computer or laptop 46% Proximity to a PC I only make purchases on a mobile device 56% when I’m not near a computer 42% Mobile is good for making time-sensitive purchases 41% It’s good for making unplanned purchases 34% Mobile is good for making impulsive Speed/Convenience purchases 32% 59% I only make purchases on a mobile device when it’s faster than using a computer 27% It’s the most convenient way to make purchases 21%Regardless of whether or not you do this now, please tell us how much you agree or disagree with each of the followingstatements about making <<CATEGORY>> purchases using a mobile device. “Agree.”Base=Mobile Internet Category Users. 61Yahoo! Presentation, Confidential
    • 61. However, a key drawback to more mobilepurchases is security and ease of use…Mobile purchase drivers It doesn’t seem safe/secure to make purchases 36% It’s too difficult to make purchases 34% It’s no different from making a purchase on a computer 28% I think I’ll be making more purchases on a mobile device in the future 24% I make more purchases overall because I can use my mobile device 18%Regardless of whether or not you do this now, please tell us how much you agree or disagree with each of the followingstatements about making <<CATEGORY>> purchases using a mobile device. “Agree.”Base=Mobile Internet Category Users. 62Yahoo! Presentation, Confidential
    • 62. …however, many plan to make more futurepurchases in low incidence categoriesMobile purchase drivers Dig. Con. Ent. Dining Elect. Finance Travel Apparel Health Food/Bev Beauty Home Auto It doesn’t seem safe/secure to make 37% 34% 37% 40% 35% 40% 37% 37% 31% 36% 30% 37% purchases It’s too difficult to make purchases 31% 34% 37% 34% 32% 38% 37% 36% 34% 28% 33% 31% It’s no different from making a purchase on a 25% 28% 25% 29% 25% 27% 31% 33% 25% 34% 25% 35% computer I think I’ll be making more purchases on a mobile device in the 19% 24% 23% 22% 20% 33% 30% 25% 26% 28% 24% 33% future I make more purchases overall because I can 13% 19% 14% 19% 17% 23% 23% 22% 20% 28% 17% 24% use my mobile device At/above average Below averageRegardless of whether or not you do this now, please tell us how much you agree or disagree with each of the followingstatements about making <<CATEGORY>> purchases using a mobile device. “Agree.”Base=Mobile Internet Category Users. 63Yahoo! Presentation, Confidential
    • 63. Understanding Mobile Advertising
    • 64. Less than half remember seeing categoryadvertising, most will look at ads on their phonesAdvertising Recall 14% I never look at it Yes 66% I sometimes look at it No 61% 39% I always look at it 20% Saw category advertising during shopping process Reaction to advertisingWhen you see <<CATEGRORY>> advertising on your mobile device/computer, which best describes your general reaction?Base=Mobile/PC Internet shoppers who have been exposed to advertising. 65Yahoo! Presentation, Confidential
    • 65. Less than half of mobile category informationseekers see ads pertinent to categories they seekAdvertising Recall by Category  I Pay Attention Digital Entertain- Local Consumer FOOD/ Finance Travel Apparel Health Beauty Home Auto Content ment Dine Electronics BEV 84% 83% 77% 88% 91% 87% 87% 89% 89% 97% 91% 82% Always/sometimes pay attention to advertising 49% 50% 48% 46% 43% 42% 41% 39% 40% 34% 34% 26% Recall seeing advertisingUsing the scale below, please tell us how well each statement describes your experience while you are using your mobile devicefor <<CATEGORY>> information or products or services. Base=Mobile Internet Category Users. 66Yahoo! Presentation, Confidential
    • 66. Consumers understand that experiencesaren’t free but have ad expectationsI strongly agree/agree with mobile advertising… I’m ok with advertising if it means that I can 46% access content for free After I see an ad, I sometimes look for more 30% information Ads have become more interesting than they 29% used to be Ads are more helpful at finding geo-graphically 28% relevant information I am more likely to click on ads that 22% incorporate multimedia elements I am more likely to click on ads that are simple 22% text adsRegardless of whether or not you do this now, please tell us how much you agree or disagree with each of the followingstatements about researching <<CATEGORY>> purchases using a mobile device. “Agree.”Base=Mobile Internet Category Users. 67Yahoo! Presentation, Confidential
    • 67. Categories vary based on the quality ofinformation and presentation of the mobile ad Correspondence Map*: Attitudes about Mobile Advertising Ads have become more interesting than they used to be I am more likely to click on ads that incorporate multimedia elements PRESENTATION I’m ok with advertising if it means that I can access content for free Auto FREE CONTENT After I see an ad, I sometimes look for more information QUALITY OF INFORMATION Ads are more helpful at finding geo-graphically relevant *Interpretation Note: information The closer the attribute to the category the I am more likely to click on ads that are simple text ads higher the association or correlation.Regardless of whether or not you do this now, please tell us how much you agreeor disagree with each of the following statements about researching <CATEGORY>purchases using a mobile device. “Agree.” Base=Mobile Category Users. 68Yahoo! Presentation, Confidential
    • 68. Consumers want informative, relevant andsimple mobile advertisingThe following is important when it comes to mobile advertising… Mobile ads that very clearly told me the price of the product 41% Mobile ads that are straightforward and fact-based 40% 53% Mobile ads that are informative 38% Informative Mobile ads that clearly spelled out the features and benefits 36% Mobile ads that are relevant 37% 48% Useful when I’m looking for certain information 37% Relevant Targeted just to me and relevant my interests or background 29% Mobile ads that give a short snapshot of information 31% 41% Mobile ads that contain a simple call to action 26% Simple Mobile ads that are text based 19% Feel good or better about the brand in general 25% 29% Mobile ads that focus on the overall value and not price 18% Branding Mobile ads that incorporate multimedia elements 20% 26% Mobile banner ads which include graphical elements 18% Graphical Mobile ads that are entertaining 35% Mobile ads that are memorable 27% Mobile ads which are more relevant to my current location 27% Mobile ads that I can share with friends or family 20%Please tell us how important the following types of ad features are to you when it comes to <<CATEGORY>> advertisingon your mobile device. “Extremely/very/somewhat important.” Base=Mobile Internet Category Users. . 69Yahoo! Presentation, Confidential
    • 69. Depending on the category, advertising shouldbe more graphical and brandedI strongly agree/disagree with mobile advertising… Dig. Con. Ent. Dining Elect. Finance Travel Apparel Health Food/Bev Beauty Home Auto Informative 49% 52% 49% 54% 47% 56% 61% 54% 57% 63% 58% 57% Relevant to Interests 45% 48% 44% 51% 38% 54% 59% 47% 55% 57% 53% 51% Simple 36% 41% 39% 43% 33% 43% 48% 38% 42% 54% 47% 47% Branding 24% 28% 27% 29% 24% 29% 38% 31% 37% 39% 33% 37% Graphical/ Multimedia 21% 26% 20% 30% 22% 23% 31% 29% 28% 35% 29% 33% At/above average Below averagePlease tell us how important the following types of ad features are to you when it comes to <<CATEGORY>> advertising on yourmobile device. “Extremely/very/somewhat important.” Base=Mobile Internet Category Users. . 70Yahoo! Presentation, Confidential
    • 70. Key Takeaways
    • 71. Key Takeaways Mobile has become a critical part of many users’ daily lives, but more than two-thirds still think the experience could be better. Nonetheless, consumers believe mobile complements PC by in a variety of ways including following up from research conducted on a phone or vice versa. Mobile is by no means an exclusively out-of-home experience. While 93% of mobile internet users claim to have used mobile out of the home, a close 89% say they also use their mobile devices while in the home. Since a television is on in many homes during non-work hours, 86% of mobile internet users (and 92% of 13-24s) are using their mobile devices simultaneously with TV consumption. A quarter of them say they are browsing content related to what they are watching, presenting a compelling opportunity for content providers and advertisers alike to complement the viewing experience on the mobile platform. In-store mobile usage tends to be social in nature, particularly for younger mobile users— 87% of mobile internet users are using their phones while brick-and-mortar shopping, with 70% of those texting friends or family and half sending picture messages about products under consideration. When they are using mobile phones in stores, shoppers seem to be looking less for information about a purchase and more for confirmation or opinions from friends and family. 72Yahoo! Presentation, Confidential
    • 72. Key Takeaways Overall, mobile is still very much seen as a secondary platform for shopping (and shopping- related information). Across most categories, the PC market is currently 3-4 times the size of the mobile market. However, mobile and non-mobile users alike say they are interested in accessing more mobile shopping information in the next 12 months. There is a tremendous opportunity for retailers and advertisers to help transform mobile into a full-fledged shopping platform. Furthermore, interest in using mobile to help the shopping process is clearly there—across all categories, 79% of mobile shoppers have either tried already or are interested in accessing store information; 67% comparing products and services; and nearly half responding to ads or making a purchase. Mobile shopping is strongest in the categories of digital content, restaurants/dining and entertainment—all areas where we know the phone plays a key role. In the case of digital content, the phone is the consumption platform and the latter categories involve events outside the home where the phone is the primary communication/information channel. Mobile shoppers are highly engaged with advertising—1 out of 5 mobile shoppers who have seen advertising during the shopping process say they always look at it. This rises to 27% in auto and 31% in home improvement (the two categories that also have the longest research times). When considering various attributes of mobile advertising, relevant, informational, and factual are more important attributes than rich media, entertainment value or social sharing. This is particularly true for auto, beauty, and apparel—although entertaining ads are also popular in these categories. 73Yahoo! Presentation, Confidential
    • 73. Key Takeaways iPhone and Android users are more likely than Blackberry users to engage in both shopping and communication activities while in a store. They also have stronger interest across categories than Blackberry and Windows Mobile users do. Interest also typically skews younger and ethnic for most categories. These groups are also most likely to say the mobile platform is useful across all stages of the purchase funnel. Specific mobile tasks consumers try on their mobile devices vary by category. However, there are common popular activities including using a search engine, comparison shopping, and reading professional and user reviews. Most activities tried on mobile are dwarfed by those same activities when tried on the PC. However, when you take into account those interested in the mobile activities we see that demand is high - with scores for mobile approaching and sometimes surpassing PC levels. As failure rates reduce because of better wireless networks and the adoption higher performing mobile devices (like Android, etc.) well see many of these mobile activities that have been tried increase. By understanding mobile principles of location, goal orientation, attentiveness, boredom, passion and trust we can tailor our advertising by these experiences and mindsets. Categories that exhibit boredom principles are more entertainment and mobile digital focused while most others tend to be more goal-oriented. Categories in which users exhibit passion include consumer electronics, auto/parts, and apparel. 74Yahoo! Presentation, Confidential
    • 74. APPENDIX
    • 75. Demand is high for category mobile activities and approaches PC levels Mobile Shopping Activities I’ve Tried or Interested In – Net of all categories Mobile PCMobile TriedMobile Interested Visited a website 84% 7% 94% 2%PC Tried Used a search engine 75% 11% 88% 3%PC Interested Got store information 66% 13% 77% 8% Compared products or services 48% 19% 73% 10% Compared prices of products or services 47% 20% 72% 10% Read professional reviews for products or services 41% 19% 56% 14% Read user reviews 41% 18% 52% 12% Looked at pictures of products/services 42% 17% 68% 8% Created/managed a shopping cart or list 27% 22% 32% 16% Looked for/purchased gift cards or certificates 24% 23% 26% 22% Watched an online video 28% 18% 35% 15% Earlier you said you’d accessed <<CATEGORY>> shopping information. What specifically did you do on your Internet-enabled mobile device,/PC or Laptop and what are you interested in doing? Base=Mobile Internet Category Users. Or PC Internet Users 77 Yahoo! Presentation, Confidential
    • 76. Social shopping, deal hunting, and advertising are currently and will be a key part of the experience Mobile Shopping Activities I’ve Tried or Interested In – Net of all categoriesMobile Tried Mobile PCMobile Interested Made a Purchase (Net) 42% 20% 50% 17%PC TriedPC Interested Used or requested a coupon 33% 29% 52% 23% Looked for deals, coupons, offers or promotions 38% 23% 62% 14% Took and sent a picture of product /details to others 42% 17% 19% 14% Communicated with someone about ___ via email 40% 17% 28% 16% Communicated with someone about ___ via IMing 26% 17% 13% 11% Interacted with ads w/in search results 29% 15% 46% 8% Interacted with online ads 28% 15% 37% 9% Interacted with video ads 24% 16% 26% 12% Communicated with someone about ___ via texting 47% 16% Click-to-call automatic routing 40% 20% Looked for/downloaded apps 39% 19% Scanned a barcode 25% 34% Earlier you said you’d accessed <<CATEGORY>> shopping information. What specifically did you do on your Internet-enabled mobile device,/PC or Laptop and what are you interested in doing? Base=Mobile Internet Category Users. Or PC Internet Users 78 Yahoo! Presentation, Confidential

    ×