This document examines digital trends moving into 2013. It identifies three major forces driving digital growth: an increasingly globalized world connected by technology, economic recovery fueling new device sales and innovation, and a "now" culture demanding 24/7 access. Key trends include rising internet and mobile device penetration globally, the growth of mobile commerce led by tablets, and social media's evolution across more platforms and age groups. Digital advertising is also shifting to follow online audiences to platforms like mobile.

1. THE STATE OF DIGITAL
TRENDS MOVING INTO 2013
2.5.13
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2. PURPOSE
To examine the current state of digital and identify trends growing and expanding in 2013.
Image Source: Shu+erstock ‐ KROMKRATHOG, 2013 business place concept ideas.

3. THE FORCES OF CHANGE BEHIND
DIGITAL GROWTH
THE GLOBAL WORLD ECONOMIC RECOVERY THE “NOW” CULTURE
• Technology has made a once • More disposable income has • With expanded convenience
divided world connected aided the increase in sales comes the need for
• With technology embedded for new devices immediacy
into daily life, widespread • This demand has inspired • The development of 24/7
accessibility is now an innovation which continues access creates the consumer
expectation this circular process who is always plugged-in
Image Sources: Global Trade Allied. 123RF, A green chart arrow in front of an economic recover graph. Shu+erstock ‐ Oleksly Mark,
Touchscreen smartphone with cloud of colorful applica3on icons.

4. MARKETING FOCUS 2013 –
WHAT’S ON MARKETERS’ MINDS
MICRO-TARGETING BIG DATA
• Today’s transparency gives the consumer the • Data is allowing marketers to understand
control lifestyles and psychographics
24/7 CUSTOMER EXPERIMENTATION
• Since consumers are “plugged-in” 24/7, • The explosion of innovation provides new
brands must operate as a 24/7 experience flexibility to explore undiscovered practices
Image Sources: Shu+erstock – Gibsons, Target Market. 123RF, Stock photo. Photos.com, Iris Scan.

5. AGENDA
The Internet Devices Social Media
Expanding to more corners of the globe Moving Mobile Evolving for consumers and brands
Image Sources: 123RF – alexmillos. Mashable, Facebook to Let Adver3sers Bid on Ads Using Your Browser Data.

6. THE INTERNET
Image Source: Tech News, Don’t Get Stuck in the World Wide Web.

7. INTERNET POPULATION
REACHING 1/3 OF THE WORLD
• Global online population: 2.4 billion
– Penetration growing 8% YOY
• U.S. online population: 244 million
– 79% of the U.S. population is online
Sources: Business Insider, The Future of Digital, 2012. Internet World Stats, 2012. Mary Meeker, 2012 Internet Trends Year‐End
Update, 2012.

8. CONTENT: NEWS AND ENTERTAINMENT
THE WAY PEOPLE ARE CONSUMING MEDIA IS CHANGING
• Traditional media platforms are
declining
• Consumption of online news is
rising
– An increasing numbers of
Americans are consuming their
news via mobile devices, as well
as social networking sites
• Over 50% of Americans stream
TV episodes and movies
– Netflix is now used in 25% of
U.S. households, up 20% from
2011
Sources: Pew Research, In Changing News Landscape, Even Television is Vulnerable, 2012. Business Insider, The
Future of Digital, 2012. USA Today, Love of Streaming Video Lis Ne]lix: In 25% of Homes, 2013.

9. DIGITAL ADVERTISING
WHERE THE PEOPLE GO, ADVERTISING WILL FOLLOW
• Online advertising now accounts
for 37% of U.S. advertising
revenue
– Google owns 23% of this
– Amazon is becoming a valuable
ad platform due to consumer data
• In the past year, online ad
revenue grew by 23%
• In 2012–for the first time–Google
surpassed newspapers in U.S. ad
revenue by approximately $1
billion
Sources: Business Insider, The Future of Digital, 2012. Warc, Amazon Pushes New Ad Tool, 2013.

10. DEVICES - MOVING MOBILE

11. 2013 WILL BE THE YEAR FOR THE
TABLET MARKET
• Globally, Apple and Android
smartphone and tablet sales
have exceeded the number of
PCs
• 31% of U.S. adults now own a
tablet
• Apple’s iPad is the leader in the
global tablet market with a 55%
share
– 14% share was given up in Q3,
2012
Sources: Business Insider, The Future of Digital, 2012. Mary Meeker, 2012 Internet Trends Year‐End Update, 2012.
Gartner Says Worldwide Media Tablets Sales to Reach 119 Million Units in 2012, 2012. ABI Research, Apple Maintains Lead in Tablets
but Market Share Down 14% in Q3 2012, 2012. Pew Internet, Mobile, 2012.

12. SMARTPHONE MARKET
U.S. PENETRATION HAS NOW REACHED 55%, GLOBAL PENETRATION IS 17%
• Globally, there are 1.1 billion
smartphone users
• U.S. smartphone market has
passed penetration with 55%
– 87% of Americans have a standard
mobile phone
• 4 out of every 5 minutes on
smartphones are spent on apps
- Smartphone apps remain the top
environment for post-PC media
consumption
• *Android holds the most global
smartphone market share with 52%
while Apple controls 36%
* Sales for 12-week period ending Nov. 25, 2012
Sources: Business Insider, The Future of Digital, 2012. Mary Meeker, 2012 Internet Trends Year‐End Update, 2012. comScore,
Facebook Vaults Ahead of Google Maps to Finish 2012 as #1 U.S. Mobile App, 2012. comScore, Reports November 2012 U.S. Mobile
Subscriber Market Share, 2013. Kantar World Panel, Apple Achieves its Highest Ever Smartphone Share in U.S., 2012.

13. MOBILE COMMERCE
TABLETS LEAD M-COMMERCE GROWTH
• Mobile commerce currently makes
up 11% of total U.S. retail online
sales
• Tablets are leading m-commerce
sales accounting for
approximately 55%
• Smartphone owners are 3-times
more likely to use their mobile
device for in-store activities
– Retailer apps are growing and are
consuming 27% of consumers
time spent in shopping apps
Sources: Adver3sing Age, Mobile Payments S3ll Tiny, Set to Explode in Next Four Years, 2012. Catalog Spree, Why are Tablets the Future of
E‐Commerce?, 2012. Symphony Telecas, The Meaning of Like 2012,2012. eMarketer. Tablets, Smartphones Drive Mobile Commerce to
Record Heights, 2013. Business Insider, Tradi3onal Retailers Succeed In Winning Back Mobile Shoppers, 2013.

14. SHOPPING EXTENDS BEYOND SALES
MOBILE AND SOCIAL HAVE MADE COMMERCE A CONNECTED
EXPERIENCE WHETHER IN-STORE OR ONLINE
• Currently, consumers use their smartphones to help make their purchasing decisions
– Consumers are using their smartphones to locate stores, compare competitors’ prices, look up
reviews and coupons, scan QR codes, navigate stores’ web site and use company app
• Some ecommerce retailers are pushing social sharing by offering discounts and deals
• The growth of social searching and feedback:
– 40% of twitter users search for products via twitter
– 60% of Facebook users will discuss a product/service if they were offered a discount or deal
Sources: Symphony Telecas, The Meaning of Like 2012. Nielsen, Mobile Devices Empower Today’s Shoppers In‐Store and Online, 2012.
Image Source: Tobi, Screengrab.

15. MOBILE PAYMENTS
STRENGTH OF PURCHASE EXPECTED TO EVOLVE
• By 2016, U.S. gross
transactions via mobile
payments is expected to reach
$62 billion U.S. Annual Payment Transac3ons via Mobile
• The average mobile payment
user spent $62 in 2012, that is
expected to grow to $1,294 in
2016
• With this increase we will see a
transition from low-strength
purchase (i.e. coffee and movie
tickets) to medium-strength
purchase (i.e. groceries, gas,
dining)
Sources: Adver3sing Age, Mobile Payments S3ll Tiny, Set to Explode in Next Four Years, 2012. eMarketer, Proximity Mobile Payments Set
to Explode in US, 2012.

16. MOBILE APPS
SOCIAL COMES IN AT TOP SPOT
• U.S. smartphone owners have
an average of 41 apps
• Facebook surpassed Google
Maps to finish off 2012 as the
#1 U.S. mobile app
– The change in power is mainly
due to the iOS 6 update
• Facebook ranks highest in
mobile app engagement,
accounting for 23% time spent
on apps
• Total Google apps account for
10% of time spent
Sources: Comscore, Facebook Vaults Ahead of Google Maps to Finish 2012 as #1 U.S. Mobile App, 2012. Nielsen, State of the Appna3on –
A Year of Change and Growth in U.S. Smartphones, 2012.

17. MOBILE ADVERTISING
STILL IN ITS INFANCY, CHALLENGES COME FROM DEVICE CAPABILITIES
• Mobile ad revenue accounts for
approximately 5% share of U.S.
digital advertising market
– In the U.S., mobile ad revenue
has grown 71% over the past 5
years
• Currently, mobile ads are 62%
search, 28% display and 10%
messaging
• By 2014, the U.S. mobile
advertising market is predicted
to reach $6.6 billion
Sources: Business Insider, The Future of Digital, 2012. eMarketer, Twi+er Tops Facebook in US Mobile Adver3sing Revenue, 2012.

18. SOCIAL MEDIA
Image Source: Crea3ve Agent Solu3ons, Social Media Management.

19. SOCIAL NETWORK SITE BREAKDOWN
FACEBOOK TWITTER LINKEDIN TUMBLR
• Launched: Feb. 2004 • Launched: July 2006 • Launched: May 2003 • Launched: April 2007
• Users: 1 billion • Users: 517 million • Users: 200 million • Users: 58 million
• Time Spent: 7 hours • Time Spent: 21 • Time Spent: 17 • Pageviews: 15 billion
per month minutes per month minutes per month monthly
• Time Spent: 1.5 hours
per month
YOUTUBE INSTAGRAM GOOGLE+ PINTEREST
• Launched: Feb. 2005 • Launched: Oct. 2010 • Launched: June 2011 • Launched: March
• Users: 2 billion views • Users: 90 million • Users: 170 million 2010
per day • Time Spent: 4 hours • Time Spent: 3 minutes • Users: 20 million
• Time Spent: 3 hours per month per month registered
per month • Time Spent: 1.5 hours
per month
Sources: AnalystTechCrunch, Analyst: Twi+er Passed 500M Users In June 2012, 140M Of Them In US; Jakarta ‘Biggest Twee3ng’
City, 2012. Slide Share, LinkedIn Sta3s3cs, 2013. Jeff Bullas, 48 Significant Social Media Facts, Figures and Sta3s3cs Plus 7
Infographics, B2C, 2012. Forbes, Why Pinterest Could Be The Next Social Media Giant, 2012. Mashable, Tumblr Hits 15 Billion
Monthly Pageviews, 2012. Mashable, This Is How Much Time You Spend on Facebook, Twi+er, Tumblr, 2012.

20. SOCIAL MEDIA POPULATION
STILL VERY ACTIVE WHILE AGE RANGE IS EXPANDING
• Globally, there are more than
1.5 billion social network users
– It is fastest growing form of
media technology
• 57% of 50-62 year olds now
use social media sites
– 49% growth since 2005
• In the U.S. social media now
accounts for 18% of total time
spent online
– The average American user is
spending 6.9 hours per month
on social media
Sources: Pew Internet: Social Networking, 2012. McKinsey Global Ins3tute, The Social Economy: Unlocking value and produc3vity
through social technologies, 2012. Morrison Foerster, Socially Aware, The Growing Impact of Social Media, 2012.

21. MOBILE + SOCIAL + TV = 2013
Distribution of Social Media Time Spent
• U.S. consumers have increased
their social app time by 76% in
the past year alone
• Facebook’s mobile app has 680 61% 34% 5%
million monthly active users
– Facebook’s mobile app
audience is up 88% YOY
– Access via PC has shrunk 4%
YOY
• 25% of 18-34 year olds use
social media to comment about
a storyline while watching TV
Sources: Nielsen, State of the Media: The Social Media Report, 2012. Facebook, Facebook Q4 2012 Quarterly Earnings, 2013.

22. SOCIAL MEDIA = SOCIAL CARE
• 47% of social media users
engage in social customer
service
– 70% of these users engage on
a monthly basis
• Facebook is the top social site
for customer service (both on
company and personal page)
Sources: Nielsen, State of the Media: The Social Media Report, 2012.

23. FACEBOOK 2013 UPDATE
GRAPH SEARCH
• Graph search is currently in beta and is only available to a limited audience pool. The
concept behind it is to make your social community more searchable and useful along
with providing real life benefits to the user.
• The caveat: privacy constraints
Professional Personal
Image Source: Facebook, 2013.

24. KEY TAKEAWAYS
Recap and trend forecast for 2013
Image Source: Shu+erstock – KROMKRATHOG, 2013 business place concept ideas.

25. THE INTERNET
While internet access reaches more of the globe, it will continue to consume individuals’
personal and professional time. With this accessibility comes the convenience of accessing all
types of content–online TV, news and music–anytime, anywhere.
The growing dominance of this medium allows advertisers new opportunities to reach consumers
while gaining measureable metrics and performance.
Image Sources: 123RF – alexmillos.

26. DEVICES
With the expansion of mobile, new opportunities are presenting themselves here. 2013 will be
the beginning of the mobile wallet, with mobile not only being an environment for ones’ identity
and social circles but also their financial spending.
Consumers now have the ability to access anything through their fingertips at anytime.
Advertisers must keep on-top of the capabilities here for they will continue to evolve as
functionality matures on this platform.

27. SOCIAL MEDIA
Social media will continue to expand as its mobile focus accelerates. With this we will see social media
incorporated into even more areas of consumers’ lives. It is ever present as people document the micro-
moments of their lives and a constant companion, whether out with friends, hanging on the couch or
shopping.
With its evolving presence in daily life, social media demands equal attention from both marketers and
advertisers.
Image Sources: Mashable, Facebook to Let Adver3sers Bid on Ads Using Your Browser Data.

28. WHAT DOES THIS ALL MEAN?
A HYPER CONNECTED WORLD:
We have reached the age where all touch-points are aligning. As access continues to
evolve for consumers, so will the transparency that lives here. In today’s connected
world, the line that once divided these platforms has begun to blur. Consumers can
engage anywhere with your brand and touch points (Website, online ads or social
media)—whether on the couch, in the aisle or on the street.
Image Sources: Oregon Live, Retailers use Facebook’s ‘like’ bu+on to drive sales, 2012.

29. MARKETING IN A CONVERGED WORLD
Marketers and advertisers need to look beyond the platforms themselves and take a holistic approach to
their communications planning. It is important to understand how, when and where consumers are
interacting with your brand digitally to fully engage with consumers as they discover and purchase.
Sources: Experian, Empower Meaningful Connec3ons, 2013.

30. THANK YOU.

31. SOURCES
ABI Research, Apple Maintains Lead in Tablets but Market Share Down 14% in Q3 2012, 2012.
Advertising Age, Mobile Payments Still Tiny, Set to Explode in Next Four Years, 2012.
Berg Insight, 2012.
Business Insider, The Future of Digital, 2012.
Business Insider, Traditional Retailers Succeed In Winning Back Mobile Shoppers, 2013.
Catalog Spree, Why are Tablets the Future of E-Commerce?, 2012.
comScore, Reports November 2012 U.S. Mobile Subscriber Market Share, 2013.
comScore, Facebook Vaults Ahead of Google Maps to Finish 2012 as #1 U.S. Mobile App, 2012.
eMarketer, Proximity Mobile Payments Set to Explode in US, 2012.
eMarketer. Tablets, Smartphones Drive Mobile Commerce to Record Heights, 2013.
eMarketer, Twitter Tops Facebook in US Mobile Advertising Revenue, 2012.
Experian, Empower Meaningful Connections, 2013.
Facebook, Facebook Q4 2012 Quarterly Earnings, 2013.
Forbes, Why Pinterest Could Be The Next Social Media Giant, 2012.
Forrester Research, Inc., Forecast: US Retail Revenues and Growth Rates, 2012-2016, 2012.
Gartner, Gartner Says Worldwide Media Tablets Sales to Reach 119 Million Units in 2012, 2012.
iMedia Connection, 6 Trends That Will Shape Digital in 2013, 2012
Jeff Bullas, 48 Significant Social Media Facts, Figures and Statistics Plus 7 Infographics, B2C, 2012.
Internet World Stats, 2012.
Kantar World Panel, Apple Achieves its Highest Ever Smartphone Share in U.S., 2012.
Mary Meeker, 2012 Internet Trends Year-End Update, 2012.
Mashable, Tumblr Hits 15 Billion Monthly Pageviews, 2012.

32. SOURCES
Mashable, This Is How Much Time You Spend on Facebook, Twitter, Tumblr, 2012.
McKinsey Global Institute, The Social Economy:Unlocking Value and Productivity Through Social
Technologies,2012.
Morrison Foerster, Socially Aware, The Growing Impact of Social Media, 2012.
Nielsen, Mobile Devices Empower Today’s Shoppers In-Store and Online, 2012.
Nielsen, State of the Media: The Social Media Report, 2012.
Nielsen, State of the Appnation – A Year of Change and Growth in U.S. Smartphones, 2012.
Pew Internet, Mobile, 2012.
Pew Internet, Social Networking, 2012.
Pew Internet, The Rise of In-Store Mobile Commerce, 2012.
Pew Research, In Changing News Landscape, Even Television is Vulnerable, 2012.
Slide Share, LinkedIn Statistics, 2013.
Symphony Telecas, The Meaning of Like 2012.
TechCrunch, Analyst: Twitter Passed 500M Users In June 2012, 140M Of Them In US; Jakarta
‘Biggest Tweeting’ City, 2012.
USA Today, Love of Streaming Video Lifts Netflix: In 25% of Homes, 2013.
Warc, Amazon Pushes New Ad Tool, 2013.

33. IMAGES SOURCES
123RF – Alexmillos.
123RF, A green chart arrow in front of an economic recover graph.
123RF, Stock photo.
Creative Agent Solutions, Social Media Management.
Global Trade Allied.
Facebook, Screengrab.
Mashable, Facebook to Let Advertisers Bid on Ads Using Your Browser Data.
Shutterstock – Gibsons, Target Market.
Shutterstock – KROMKRATHOG, 2013 business place concept ideas.
Shutterstock – Oleksly Mark, Touchscreen smartphone with cloud of colorful application icons.
Photos.com, Iris Scan.
Oregon Live, Retailers use Facebook’s ‘like’ button to drive sales, 2012.
Tech News, Don’t Get Stuck in the World Wide Web.
Tobi, Screengrab.