This document outlines the key factors for success of a mobile offers app. It discusses how mobile is influencing retail sales and the coupons industry. The app will provide all major offer types in one place to offer value to both consumers and merchants. Success will rely on optimizing the user experience, effective targeting, distribution methods, and partnerships to source offers and content. The total addressable market for mobile offers is approximately $4 billion across various offer categories.

1. © 2013 Karthik Ethirajan, all rights reserved
Offers App Product Positioning
Karthik Ethirajan
September 2013

2. © 2013 Karthik Ethirajan, all rights reserved
Agenda
2
1. Mobile Influence on Retail
2. Coupons Industry Outlook
3. Offer App Success Factors
4. Offer Types
5. Business Model
6. Targeting Techniques & Offers TAM
7. UX
8. Distribution
9. Merchant Value Proposition
10. Consumer Value Proposition

3. © 2013 Karthik Ethirajan, all rights reserved
Mobile influence on in-store retail sales, not to be
confused with mCommerce, is significant
3
Mobile levers
can enhance
“in-store”
experience
Retail
Store
Online
2012 Sales ($ in Billion)
Mobile
Source: Mobile Shopping from In-Store, eMarketer, Jun 2010; The
Dawn of Mobile Influence, Deloitte, Jun 2010; US Online Retail
Forecast, Forrester, Mar 2010
Mobile-Influenced Retail Sales
Mobile influence on store sales will
increase from 5% today to 19% by 2016
Consumer Retail Shopping Experience
Myth Reality
1. Shoppers have channel
preferences
Path to a transaction (e.g., first
research point) traverse many
channels
2. Deal seekers are bad
customers
The most savvy and active
coupon users have the highest
income
3. Consumers are
overwhelmed with coupons
and deals
Deal fatigue from consumer
point of view is overstated
4. Mobile commerce is a
force to be reckoned with
Most retail sales still happen
in-store
5. Showrooming will kill
bricks-and-mortar retail
Mobile levers can help
counteract effect of
showrooming

4. © 2013 Karthik Ethirajan, all rights reserved
4
Consumer data shows that mobile is poised to disrupt
the coupons industry
Coupons Today Future
FSI
44%
Instant
Redeemable
18%Electronic
Checkout
8%
Shelf Pad
6%
Internet
5%
Direct Mail
4%
Others
16%
FSI
88.8%
In-ad
2.6%
Magazine
1.2%
Internet
0.4%
Others
7.0%
Distribution Redemption
Distribution
(billions)
Redemption
(millions)
Redemption
Rate
Use
Print 310 3000 1% In-store
Online 1.5 173 13%
In-store &
Online
Mobile - 34 35-60%*
In-store &
Online
Distribution
 Consumers and merchants are disconnected
when it comes to coupon distribution and
redemption methods
 Redemption rates show consumer preference
for digital coupons
 Digital coupons are set to grow rapidly
Opportunity Gap
• Location aware for mobile redemption rate
• 2/3rd of all coupons redeemed are food related
Source: 2013 Coupon Trends, Inmar; How Big is
Coupon Industry, Savings.com C; Vibes

5. © 2013 Karthik Ethirajan, all rights reserved
5
Success of a carrier branded Offers app relies on
delivering these values to consumers and merchants
Save money on-the-go while
shopping or consuming services by
utilizing our offers and value-added
functions that are easy to use
Identify new profitable customers
and drive in-store sales using our
refined targeting and understand
consumer behavior from our reports
Consumer Value Proposition Merchant Value Proposition
Our differentiation lies in our execution of the success factors and bringing to
bear the unique carrier assets (a) subs (b) subs data and (c) distribution
Success
Factors
Premium Relevancy
UX with Opt-in,
Search, Redeem, etc.
Premium Targeting & Reporting
Onboarding,
Campaign execution
Content Data Experience
Consumer
Merchant
Key Metrics:  Downloads
 Active Users
User
Adoption
 CTR
 Revenue
Campaign
Performance

6. © 2013 Karthik Ethirajan, all rights reserved
6
Offers app will have all offer types under one roof
Direct Premium
Premium Offers from Partners
Regular Offers from Partners
Deals CLO
National
eGifting
Local
Venues
/Events
National
Drives
Revenue
Drives
Engagement
Value
Volume
• Partners shown may be in consideration, and not necessarily operational

7. © 2013 Karthik Ethirajan, all rights reserved
7
Offers will be sourced directly from merchants as well
as from content providers via a rev share model
Business Model
with Merchant
Transaction
Type
Typical Offer Types Purpose
CPS Closed
CLO, Deals, National,
eGift
Premium
Drives
RevenueCPC
Open
Local
CPM Venues/Events
Non-
Monetizable
National Regular
Drives
Impressions
3rd Party
Content
Providers
Direct Sales
Merchants Publisher
CPS/ CPC/ CPM
Email
App
Web
SMS
Notification
Ad
CPS/ CPC/ CPM
APIs
Merchant
Portal
Rev Share
100% Commission
Offer Source
Each business model from merchant lends itself well to certain offer types

8. © 2013 Karthik Ethirajan, all rights reserved
8
Targeting techniques differ by offer type and are
constantly evolving. Offers TAM is ~4B across all offer
types with varying growth rates.
Offers
$0.5B
CLO
< $100M
Venues
/Events
< $100M
eGift
Cards
$0.6B
Daily Deals
$2.7B
FUTURE
Local
Merchants
National
Brands
Targeting Demographic Contextual Behavioral
Data
• Personal data
• Interests
• Time
• Place (real-time
location)
• Shopping habits
• Mining social graph
• Predictive measures
Application Works for Deals Ideal for mCoupons Convergence
 Smaller
segments are the
fastest growing
 Market includes
online & mobile
 Share of mobile
traffic growing
faster than online
 TAM is based on
sales commission
(not coupon face
value)
 Revenue share
with partners not
accounted yet
Offers TAM
~ 4B

9. © 2013 Karthik Ethirajan, all rights reserved
Key elements of consumer and merchant experiences
9
 Search
 By brand, price, product type, etc.
 Web Portal
 Opt-in/out, one stop for housekeeping,
dashboard view, cloud saving of offers, etc.
 Preloaded App
 No downloads necessary
Merchant Experience
 Registration
 Simple and a few steps
 SMS enabled
 Double opt-in for location is industry
standard
 Key to reducing opt-in abandonment
 Preference Settings
 Greater control over category selections,
profile data and privacy settings
 Purchase
 Seamless in-app checkout for offer types
that require payments
 Redeem
 Paperless results in higher consumer
engagement
 Experience contained within the app
 Key to reducing shopping cart
abandonment
 Easy Opt-out
Consumer Experience
Experience is about how features are implemented.
Meaningful features that are well tested are a value-add,
and those that are not are value-subtracted
 Onboarding
 Provisioning
 Campaign setup
 Templates
 Reporting
 Self-reporting
 Real-time reporting that allows campaign
parameters to be adjusted
 Payments
 Fast
 Automatic
Superior UX will lead to better star
rating in app stores making
discoverability easier

10. © 2013 Karthik Ethirajan, all rights reserved
Push Pull
While there are many distribution methods, messaging
is important for reaching non-smartphone customers
10
Messaging is key to reaching
feature phones (~50% subs)
SMS is the most preferred method of receiving
mobile coupons. It has 10x CTR as pull methods.
U.S. consumer on averages sends 600
messages per month. 97% of all text
messages are opened (83% within one hour).
Email
App
Web
SMS / MMS
Notification
Mobile
PC
Desired
Effect
• Brand
reminder
• Promote
impulse buy
• Retention
consumer
behavior
• Drive impressions
for Pinsight
Media+
Push & pull distribution influences different
but complimentary traits of consumer
behavior
Distribution Methods Power of Messaging

11. © 2013 Karthik Ethirajan, all rights reserved
11

12. © 2013 Karthik Ethirajan, all rights reserved
Finally, a consumer shopping app that provides
all discount offer types for major brands as well as
local merchants under one roof
12
Top Brands Shop With
 Mobile Coupons
 Daily Deals
 eGift Cards
 Loyalty Cards
 Card Linked Offers
 Discounts at Local
Merchants
 Retail Offers
 Offers at Venues &
Events
 Premium Offers*
Opt-in: Simple
registration flow,
app preloaded on
new devices
* Requires subscription to
Entertainment Books
Coupons On-
the-go: Find
offers en route,
use them in the
store
Local Events:
Find information
about events
happening near
you
Mobile Loyalty
Cards: Why
carry store cards
when you can
scan & load them
in your mobile
Create Product
Lists: May be
you will find
coupons related
to the items on
your list
Deals Near
You: View deals
near you on a
map or sorted by
distance
Be Social: You
can Like/Dislike,
save or share
your favorite
offers with your
friends
Your One Stop Deal Shop!!

13. © 2013 Karthik Ethirajan, all rights reserved
13
Scan a
barcode or
read a
redemption
code at the
POS
A stored
loyalty card
ready for use
at the store
Search for
coupons or
browse a
category
Share cool
offers on your
favorite social
networks or
via email or
text
User
preference
settings
Create and
manage your
product lists