Mobile devices are changing how people shop and spend. Smartphone ownership is growing rapidly and most smartphone owners now also own other devices like tablets. Many consumers use multiple devices when shopping or engaging online. Mobile commerce is also growing, with over 25% of online retail visits now coming from smartphones. Consumers are willing to spend on mobile purchases and use their devices to research products, compare prices, and complete transactions both online and in physical stores. Retailers are recognizing the importance of mobile and adapting their online and in-store strategies to engage smartphone and tablet users.

1. Redefining The Shopping Experience
How Mobile is Changing How People Shop and Spend
Hans Fredericks – VP Mobile – hfredericks@comscore.com

2. COMSCORE’S INNOVATIVE MEASUREMENT APPROACH
2 Million Person Panel PERSON-Centric Panel with
360°View of Person Behavior SITE-Census Measurement
Web Visiting
& Search
Online Behavior Online
& Offline Advertising
Buying Exposure PANEL CENSUS
Advertising
Transactions Effectiveness
Media & Video Demographics,
Consumption Lifestyles
PANEL
& Attitudes
Unified Digital Measurement™ (UDM)
Mobile Internet
Usage & Behavior Patent-Pending Methodology
Adopted by 90% of Top U.S. Media Properties
© comScore, Inc. Proprietary. 2 V1011

3. CONTINUING TIDAL SHIFT TO SMARTPHONES
 The total Smartphone audience increased by 42% year-on-year
 Your shoppers have smartphones (and tablets) – or will very soon
Growth of U.S. Smartphone U.S. Smartphone Penetration
Installed Base
180,000
Smartphone
160,000
47.4%
# Phone Owners (000)
140,000
120,000 Not 110.9 million
100,000
Smartphone
80,000
60,000
+47% 52.6%
40,000 Year on Year Growth
20,000
0
Product: comScore MobiLens, US
© comScore, Inc. Proprietary. 3 Data: Three month average ending June 2012

4. MULTI-DEVICE OWNERSHIP BECOMING THE NORM
 In June 2012, 35.5% of all U.S. Smartphone users also owned other connected devices
 Smartphones, tablets, and other connected devices are changing the way consumers seek
information, communicate, engage online, and shop!!
11.9% also
own eReaders
4.5% also own
other handhelds
like portable
gaming devices
25.5% also
own tablets
Product: comScore MobiLens, US
© comScore, Inc. Proprietary. 4 Data: One month snapshot - June 2012

5. EMERGING RETAIL/COMMERCE, SOCIAL CHECK-IN
Top 10 Smartphone Categories by
Growth  Broad retail/commercial sector
growth
social networking check- 29,751 +100%
14,873
in service  Social networking with check-in
insurance services 9,438 +87% service doubles audience size
5,057
adult entertainment 13,380 +86%  Financial services/insurance
services 7,208
gaining in popularity
electronic payments 23,072 +84%
12,538
 Online Retail now accessed by
online retail 27,204
+83% more than 27 million Smartphone
14,891
owners
classifieds 26,698 +81%
14,719
health information 17,298
9,586 +80%
credit cards 24,176
13,701 +76%
home lifestyle 11,064
6,412 +73%
men's magazines 9,994
content 5,837 +71%
0 10,000 20,000 30,000 % YoY
40,000
June 2012 June 2011 # Unique Users (000) Growth
Product: comScore MobiLens, US
© comScore, Inc. Proprietary. 5 Data: Three month average ending June 2012

6. SMARTPHONES ARE CHANGING COMMERCE . . .
E-commerce and Related Services Accessed By % of Smartphone Users
June 2012
Bank Accounts 38%
Online Retail 25%
Credit Cards 22%
Electronic
21%
Payments
Deal-A-Day 16%
Shopping Guides 16%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Product: comScore MobiLens, US
© comScore, Inc. Proprietary. 6 Data: Three month average ending June 2012

9. CONSUMERS WILLING TO SPEND ON DEVICE
Amount Spent for On-Device  Only 7.4% of Smartphone
Purchase Shoppers spend less than $20
on purchase
Less than $20.00 7.4%
 A large share (31.4%) make
purchases for $101- $300
$21 - $100 30.0%
 3.3% even spent more than
$1000
$101 - $300 31.4%
$301 - $500 15.2%
$501 - $1000 12.8%
More than $1000 3.3%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
% Purchased Goods or Services with Smartphone
Product: comScore MobiLens, US
© comScore, Inc. Proprietary. 9 Data: Three month average ending June 2012

10. MOBILE SHOPPING SAVES TIME AND MONEY!!
Reason for shopping on a smartphone instead of
online or in-person
60% 54% 52% 52%
50% 46%
40% 35%
30% 24%
20%
10%
%
Saves me time
Makes it easier to Provides me with on-the-go convenienceAllows me to access special offers coupons
compare prices Makes it easier to find the best deal Don`t have to print directions or coupo
Rate Overall Experience
Mobile
Shoppe 2% 53% 45%
r
Poor Neutral Excellent
© comScore, Inc. Proprietary. 10 Source: Custom Mobile Retail Advisor Survey April 2012

11. ON-DEVICE PURCHASERS SKEW MALE AND YOUNGER
Gender Age 30.8%
22.9%
19.1%
Male  A greater proportion 14.5%
57.4% of Smartphone 6.4%
3.7% 2.6%
Female shoppers are male
42.6%
13-17 18-24 25-34 35-44 45-54 55-64 65+
 25-34 year olds are the key user group
19.7 MM
Smartphone
Household Income Shoppers Operating System
Microsoft
Other OS
$100k+ 35.6% 0.9%
4.6% RIM
 Android and iOS 8.1%
$75k to <$100k 16.5%  Making on- based phone owners
devices make up the majority
$50k to <$75k 20.9% purchases of Smartphone Google
attracts the 44.8%
owners making a
$25k to <$50k 18.3% more affluent Apple
purchase 41.7%
Smartphone
<$25k 8.7%
subscriber
Product: comScore MobiLens, US
© comScore, Inc. Proprietary. 11 Data: Three month average ending June 2012

12. MOBILE SHARE OF E-COMMERCE GROWING FAST
Percentage of Total e-Commerce Dollars Spent via Mobile or Tablet Device
Source: comScore Mobile Measurements
Spike in percentage of 9% 9%
e-commerce sales via
mobile coincides with
8% 8%
surge in tablet ownership
6% 6%
3% 3%
2%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2010 2010 2011 2011 2011 2011 2012 2012
© comScore, Inc. Proprietary. 12

13. VARYING USE OF WEB/APPS AMONG RETAILERS
Top Smartphone Retail Properties,
% Share of Time Spent by Access Method
June 2012
Amazon
Wal-Mart
Netflix
Target
Best Buy
Redbox Web
Ticketmaster App
Blockbuster
Home Depot
shopkick
Walgreens
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Product: comScore Mobile Metrix 2.0
© comScore, Inc. Proprietary. 13 Data: June 2012

14. MOBILE DISRUPTING BRICK AND MORTAR
Penetration of Activities Performed on Phone While in Retail Store
June 2012
Took Picture of Product 21%
Texted or Called Friends/Family about Product 18%
Scanned a Product Barcode 17%
Sent Picture of Product to Friends/Family 17%
Compared Product Prices 11%
Found Store Location 10%
Found Coupons or Deals 9%
Researched Product Features 7%
Checked Product Availability 5%
Product: comScore MobiLens, US
© comScore, Inc. Proprietary. 14 Data: Three month average ending June 2012

15. SURGE IN QR CODES LAST HOLIDAY SEASON
 Almost 21 million U.S. Smartphone owners scanned a QR Code at least
once per month – up 28% since Sep 2011
 19% or nearly 1 in 5 smartphone owners currently scan QR codes each month
 48% scanned a QR Code while in a Retail Store
QR Code Users (M) Among Smartphone Users
25.0
20.0
19.9 19.8 20.9
15.0
16.3
10.0
5.0
0.0
Sep 2011 Dec 2011 Mar 2012 Jun 2012
Product: comScore MobiLens, US
© comScore, Inc. Proprietary. 15 Data: Three month average ending June 2012

16. MOBILE BRIDGES PHYSICAL/DIGITAL CHANNELS
Top Sources of QR Codes Scanned by Smartphone Owners
June 2012
60%
50% 46% 44%
40%
30% 26% 25%
20%
10%
0%
Printed Magazine or Newspaper Packaging
Product Poster or Flyer or KioskWebsite on PC
Mobile
provides
link to
Newsprint Retail Outdoor Digital
Product: comScore MobiLens, US
© comScore, Inc. Proprietary. 16 Data: Three month average ending June 2012

17. OPPORTUNITIES FOR PUSH AND CHECK-IN
Have you used a retail app to alert you about coupons/deals based on
your location (push notifications)?
Among Mobile Shoppers
Yes, I would
like to be
No No, I would
Yes alerted
60% not be
40% 46%
interested
54%
Check in services or sharing location for a reward/discount/deal at the store
Among Mobile Shoppers
Yes, I would
share my
55%
Yes, I use No, I do not location for a
Check-in use check- discount
Services in services No, I would
38% 62% 45
not share my
location
© comScore, Inc. Proprietary. 17 Source: Custom Mobile Retail Advisor Survey April 2012

18. Thank You.
THE GLOBAL SOURCE OF DIGITAL MARKET INTELLIGENCE™
For more information, please contact
Hans Fredericks – hfredericks@comscore.com