The document discusses trends in mobile devices, applications, and marketing. It notes that smartphones are increasingly popular and overtaking basic phones. Tablets are also growing in ownership. Most mobile activities involve social, local, and mobile (SoLoMo) elements. Location-based services and augmented reality provide engagement opportunities. Mobile shopping faces challenges but can be enhanced through offers, reviews, and in-store functions. The document advocates an integrated mobile strategy including websites, apps, messaging and analytics to attract and service mobile customers.

2. A VISION OF THE FUTURE

3. WHAT WE WILL SHARE TODAY Devices and destinations Attracting the mobile customer Making the mobile sale It’s not just about mobile Anthology does mobile

4. UNDERSTANDING MOBILE & WHY IT’S DIFFERENT DEVICES & DESTINATIONS

5. DIGITAL DEVICE ECOSYSTEM STATIONARY IN-HOME OUT-OF-HOME MOBILE & CONNECTED DEVICES

6. US SMARTPHONE VS TABLET OWNERSHIP Tablets Smartphones Source: eMarketer, March 2011 WILL OWN A SMARTPHONE BY THE END OF 2011 23.4% WILL OWN A TABLET BY THE END OF 2011 7.6%

7. 2011 US MOBILE PHONE OWNERSHIP Smartphones Source: Nielsen, Mobile Insights, May - July 2011 OF MOBILE PHONES ARE SMARTPHONES 40% Feature Phones Smartphones are predicted to overtake feature phones by the end of 2011.

8. 2011 TOP SMARTPHONE OPERATING SYSTEMS Source: Nielsen, Mobile Insights, May - July 2011 It is no longer just an iPhone world. 40% 19% 28% 7%

9. MOBILE DEVICE DESTINATIONS OR Mobile App Resides on the device and is unique to each OS Mobile Website Resides on the Internet and accessed via mobile web browser

10. MOBILE APP VERSUS MOBILE WEBSITE USAGE SOURCE: Adobe Experience Survey, October 2010

11. MOBILE APP VERSUS MOBILE WEBSITE Need to develop separate app for each OS Rich user experience due to direct access to device hardware Requires app store approval and has associated costs Updates must be downloaded One website can be viewed on any device Not as rich of a user experience Lower development cost and faster time to market Updates are immediately available Search engine friendly Mobile App Mobile Website

12. HTML 5 - LEVELING THE PLAYING FIELD Technology improvements for mobile website and web apps: Hardware integration - access to GPS, camera, sensors, etc. Off-line storage/capabilities 2D graphics capabilities Video/audio streaming Geo-location User interface tools

13. DIFFERENT DEVICES = DIFFERENT EXPERIENCES VS Smartphones Tablets

14. DIFFERENT DEVICES = DIFFERENT EXPERIENCES VS Always on and available Always on or near your body Often used in motion Primary use is communication Focus is on “right here, right now” One owner, not shared Starting to replace personal items such as watches, cameras, loyalty cards, credit cards, etc. Smartphones Tablets

15. DIFFERENT DEVICES = DIFFERENT EXPERIENCES VS Smartphones Tablets Selectively on Not always with you Portable but used stationary Primary use is media consumption Not necessarily about immediacy Starting to replace media delivery vehicles such as magazines, newspapers, books, TV, etc. Most often a shared device

16. DIFFERENT DEVICES = DIFFERENT DESTINATIONS MOBILE WEBSITE/WEB APP NATIVE APP

17. DIFFERENT DEVICES = DIFFERENT DESTINATIONS NATIVE APP MOBILE WEBSITE/WEB APP

18. DIFFERENT DEVICES = DIFFERENT DESTINATIONS MOBILE WEBSITE/WEB APP NATIVE APP

19. DIFFERENT DEVICES = DIFFERENT DESTINATIONS MOBILE WEBSITE/WEB APP NATIVE APP

20. ATTRACTING THE MOBILE CUSTOMER

21. UNDERSTANDING MOBILE BEHAVIOR Source: North American Technographics Benchmark Survey, Q2 2010 (US, Canada) Super Connecteds 19% Access mobile Internet at least weekly or do multiple advanced activities monthly or more often. These are the most sophisticated users of mobile phones. Entertainers 15% Listen to music, watch video, or play games at least weekly Connectors 9% Use of mobile phone for work is at least 25% of usage. Also use advanced services at least monthly. They are productivity oriented. Communicators 21% Communicate at least weekly using SMS. May use MMS, IM or personal email at least monthly. Use at least two of these communication services at least monthly. Talkers 34% Use mobile phones primarily to talk. Maybe very occasional – less than monthly – users of SMS. May do one of the activities such as vote via SMS. Inactives 11% Do not own a mobile phone.

22. THE IMPORTANCE OF CONTEXT Source: The Mobile Shopping Framework Study, Yahoo/Nielsen, Jan. 2011 Mobile Internet Usage 93% Out-of-Home 89% At Home Context TIME ENVIRONMENT LOCATION PHYSICAL ACTIVITY DEGREE-OF-FOCUS TASK-AT-HAND DEVICE CAPABILITIES Content

23. MOBILE MARKETING OPPORTUNITIES Display Ads QR Codes SMS/MMS Search Ads Geo-location

24. 82% OF SMARTPHONE USERS NOTICE ADS Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT, April 2011 Banner or graphical ads Ads featured on the sites I’m visiting Ads embedded within an app I’m using Display Ads 45% 43% 35% Ads within mobile search engine listings Search Ads 34% Ads based on my location Ads featured on online maps Location Maps/Ads 21% 19% Text message/SMS ads Video Ads 28% 21% SMS/MMS Ads

25. HALF OF THOSE WHO SEE A MOBILE AD TAKE ACTION Actions Ever Taken As a Result of Seeing A Mobile Ad Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT, April 2011 … computer 33% 32% … smartphone Looked for More Information 49% Instore 31% 24% Online on computer Purchase 49% Online with smartphone 23% Click to call advertiser on mobile 18% 17% Called advertiser / retailer at later time Contacted Advertiser 27% Went to store for additional info 22% 20% Located directions on map Visit / Locate Retailer 33%

26. SEARCH IS THE MOST VISITED MOBILE WEBSITE Search engine websites Social Networking websites Retail websites Review websites, blogs or msg boards 77% 65% 46% 19% Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT, April 2011 Websites Visited Via Smartphones Video sharing websites 43% General consumer websites Brand or manufacturer websites 38% 26% 25% Coupon websites Health information websites 24% Finance-related websites Travel-related websites 23% 18% 24% Full-length TV programming websites 17% Magazine websites 15% Other websites 14%

27. MOBILE SEARCH HAS A STRONGER LOCAL INTENT SEARCHES IS LOCAL 1 IN 3 Source: Google

28. MOBILE SEARCH ENGINES ARE GEARED FOR LOCAL Hyperlocal Distance Info Click-to-call Location Info & Maps Mobile-specific Search Ad

29. MOBILE DISPLAY ADVERTISING Banner Ads Audio Ads Video Ads

30. MOBILE DISPLAY ADVERTISING - STATISTICS Source: Millennium Media Q1 2011 Top Campaign Goals

31. MOBILE DISPLAY ADVERTISING Source: Millennium Media Q1 2011 Top Campaign Destinations

32. MOBILE DISPLAY ADVERTISING - STATISTICS Place Call Download Application MocIal (Social Media) Retail Promotion 39% 26% 18% mCommerce 12% Enroll / Join Watch Video 39% 25% 22% Subscribe Store Locator 22% Site Search View Map 13% 12% 2% Mobile Only Campaigns Source: Millennium Media Q1 2011 Post-Click Campaign Actions Integrated Campaigns

33. SMS STILL VALUABLE AS A MARKETING TOOL 28% of mobile subscribers in the US received one or more SMS Ads in March 2011 of those subscribers responded to at least one SMS ad Source: The State of the U.S. Mobile Advertising Industry and What Lies Ahead, ComScore, June 2011 Info about product/ service/brand 50% 12% 36% 16% 32% 18% 30% 8% Coupon or discount Contest Donation to charity/non-profit SMS Ads Received SMS Ads Responded 17%

34. QR CODES BRIDGE THE PHYSICAL & DIGITAL WORLDS Print Ads Outdoor Packaging Point-of-Sale Specialty Items TV Commercials

35. US HAS THE FASTEST GROWING QR CODE USAGE US UK Netherlands Spain Canada 181.1% 166.5% 146.3% 94.4% 94.0% Source: 3GVision as cited in press release, April 5, 2011 Top 5 Countries, Ranked by Growth in Mobile Barcode Scans, Q1 2011 (% change versus. prior quarter)

36. ABOUT HALF OF QR CODES SEEN ARE SCANNED Yes No Don’t know 166.5% 48% 94.0% Source: MGH QR Code Usage and Interest Survey, Feb 2011 If you have seen a QR code, have you ever used one? 3% 49%

37. LOCATION WHEN QR CODE IS SCANNED Source: ComScore, MobiLens, August 2011 At home Retail store Grocery store 58% 39.4% 24.5% At work 19.7% Outside or on public transit Restaurant 12.6% 7.6% QR codes are scanned more while at home

38. SOURCES OF SCANNED QR CODES 166.5% Source: ComScore, MobiLens, August 2011 Printed magazine or newspaper Product packaging Website on PC 49.4% 35.3% 27.4% Business card or brochure 13.4% Storefront TV 12.8% 11.7% Print media is the most common source

39. DEALS AND INFORMATION ARE THE MOST POPULAR USES Source: MGH QR Code Usage and Interest Survey, Feb 2011 To get a coupon, discount or deal Access additional information Enter a sweepstakes Interact with social media properties 53% 52% 33% What QR Codes Are Used For Most? Sign up to receive more information 26% Access video Make a purchase 24% 23% 23% Other 11% Don’t know 38% 2%

40. QR CODES PROVIDE BRANDING OPPORTUNITIES Discover LA Tourism HBO’s True Blood

41. GEO-LOCATION TOOLS Location-based services common place for brick and mortar company apps.

42. GEO-LOCATION MARKETING OPPORTUNITIES 3rd party tools help build customer loyalty by rewarding check-ins with special offers

43. GEO-LOCATION MARKETING TRENDS App rewards customers for walking into participating stores

44. GEO-LOCATION USAGE Source: Pew Internet & American Life Project , September 2011 Use a geo-social (“check in”) service such as Foursquare or Gowalla 12% 4% 55% 28% 58% 29% Get location-based directions and recommendations Has done at least one of the above Smartphone Owners All cell phone owners Smartphone owners ages 18-49 are more likely than those over 50 to use location-based services

45. AUGMENTED REALITY - ENHANCING THE REAL WORLD 3rd party app/browser platforms provide a way to reach established audiences

46. AUGMENTED REALITY FOR BRAND ENGAGEMENT Starbucks Cup Magic Just Launched

47. MOBILE SHOPPING EXPERIENCE

48. MOBILE WEB PURCHASES SLOW IN COMING Forrester’s “Mobile Commerce Forecast, 2011 To 2016”, June 2011 Only of online web sales in will be transacted through mobile devices, growing to in 2% 2011 7% 2016.

49. AWKWARD EXPERIENCE AND SECURITY ARE TOP CHALLENGES Source: The “Shopping” Mindset of the Mobile Consumer, 2011 Awkward shopping experience on phone Concerns over credit card information Slow connection / connectivity Product information is limited 49% 36% 31% Image of product not good 26% Not easy to view product information Takes too long 23% 20% 18% Full product selection is not offered 13% Customized experience based on location Other (Please specify) 12% 9% Perceived Challenges to Making a Mobile Web Purchase

50. MOBILE SHOPPING ISN’T JUST ABOUT SHOPPING ONLINE Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT, April 2011 79% Use phone for shopping-related activities 70% Use phone while shopping in-store 74% Of smartphone shoppers made a purchase as a result of using smartphone

51. COMMON MOBILE SHOPPING TASKS Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT, April 2011 Called a retailer 46% 22% Contacted retailer in another way Contact Retailer 52% In-store Drivers 78% Located a retailer 54% 49% Compared prices to decide Searched store’s inventory 34% Get More Product Information 69% Read product information and reviews 44% 40% Compared features of a product Watched online video 26% 21% Used barcode scanner Find and Use Offers & Discounts 48% Looked for promotions and coupons 40% 28% Used discount coupon on phone

52. MOBILE EXTENDS TRANSACTIONS Retailers can now conduct non-cash transactions beyond the register.

53. STARBUCKS MOBILE PAYMENTS APPROACH iPhone and Blackberry app released January 2011 Android app just released in June Allows customers to check balance, purchase by scanning a barcode and reload account balance

54. MOBILE WALLETS RACE HEATING UP Contactless NFC- and RFID-based payments IN THE NEWS… Isis, a venture of AT&T, Verizon and T-Mobile, join forces with Visa, MasterCard, American Express and Discover July 19, 2011 Google Wallet launches on its first smartphone, the Samsung Nexus S offered on Sprint Nextel September 19, 2011

55. IT’S NOT JUST ABOUT MOBIILE UNDERSTANDING MOBILE & WHY IT’S DIFFERENT

56. THE NEW CONVERGENCE Social Local Mobile SoLoMo

57. SOCIAL IS THE FASTEST GROWING USE Source: The State of the U.S. Mobile Advertising Industry and What Lies Ahead, ComScore, June 2011 Social Networking Maps Weather Sports Information 45.7% 43.3% 40.2% News 38.1% Entertainment News Search 33.4% 32.1% 31.5% Personal Email 30.7% Work Email Instant Messaging (IM) 16.9% 24.8% Top 10 Mobile Categories Year-on-Year Growth (March 2010 - March 2011)

58. LOCATION-BASED SERVICES CONTINUES GROWTH Source: The State of the U.S. Mobile Advertising Industry and What Lies Ahead, ComScore, June 2011 Maps Restaurant Information Travel Service 43.3% 40.4% Weather 40.2% Search 32.1% 29.2% Movie Information 27.5% Traffic Reports 28.4% Location-based Services Year-on-Year Growth (March 2010 - March 2011)

59. SoLoMo PURCHASE FUNNEL Courtesy: Social Studio SOCIAL MOBILE LOCAL AWARENESS FAMILIARITY OPINION CONSIDERATION INTENTION SHOPPING PURCHASE

60. SoLoMo IS EVERYWHERE & EVER EVOLVING Group Texting Reviews Geolocation Check-In /Deals Group Discounts Search Microblogs Social Networks Photo Sharing Price Comparison Social Local Mobile Music & Entertainment

61. MOBILE USERS ARE MEDIA MULTI-TASKERS Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT, April 2011 USE THEIR SMARTPHONE WHILE… 72% Listen to music Watch TV Read newspaper/magazine 44% 33% Use Internet 29% Play video games 27% 22% Read a book 16%

62. MOBILE USERS GO ONLINE WHILE WATCHING TV Source: Mobile Shopping Framework, Nielsen/Yahoo, November 2010 Communicating with a friend/ family member via texting Updating/reading social networking sites Browsing content on the Internet not related to what I’m watching Doing Internet searches/looking up info related to a commercial I saw 56% 40% 37% Communicating with a friend/family member via email 33% Using mobile applications Browsing content on the Internet related to what I’m watching 33% 24% 23% Communicating with a friend/family member via IM 19% 1 out of 5 search for more information related to TV commercial they saw.

63. ANTHOLOGY DOES MOBILE

64. MOBILE OFFERINGS SERVICES PROGRAMS & CAMPAIGNS Demand & Lead Generation Direct Response Customer Service Customer Loyalty Brand Awareness & Engagement Websites & Web Apps Mobile Website Starter Package Custom Mobile Website/Web App Development Tablet Accessible Website Development Native Apps iPhone App Android App iPad App Marketing Messaging (SMS/MMS) Mobile Search Mobile Display Location-based Marketing Social Media Integration Analytics mCommerce Commerce- enabled Mobile Website Mobile Shopping Tools

65. CURRENT MOBILE CLIENTS Mobile Websites Mobile Campaigns

66. MOBILE WEBSITE m.anthologymarketing.com

67. QUESTIONS? ?