2011 MOBILEDATA SNAPSHOT

FOR RETAILERS

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of Canadian mobile phone users are now using multifunction smartphones such as BlackBerrys and iPhones.

Canadian Smartphone Market Share

32.8%Canadian Mobile Statistics

32%

22%

21%

21%

15%

Top 5 Types of MobileApps Downloaded

Games

Social Networking

Music

Entertainment

News

9.15m

7.28m

7.10m

489k

317k

203k

25.1m

42%12.5%

31%

6.4%5.1%

Number of Mobile Subscribers in Canada

Total Subscribers

Sources:http://www.cwta.ca/CWTASite/english/industryfacts.htmlhttp://www.cbc.ca/fp/story/2011/06/02/4879881.html, June 2011http://www.comscore.com/Press_Events/Presentations_Whitepapers/2011/2010_Canada_Digital_Year_in_Review

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44%

62%

44%

39%

35%

of all mobile subscribers in the US are mobile shoppers. 35% prefer using their mobile device as opposed to their desktop computer to shop.

Percentage of PeopleWho Have Shopped Online

Purchasing from Phones Quadrupled Year Over Year

Most Common Shopping Related Activities In-Store

Call, text, or photo message someone to get their opinion on an item

Check the price of an item

Review a product description

Look for product coupons

Make a purchase

67%Mobile Shopping

2%

8%2010

2009

83%Half of North Americans said they most frequently purchase from online-only stores

Sources:Global Trends in Online Shopping, A Nielsen Global Consumer Report, June 2010http://www.foreseeresults.com/news-events/press-releases/explosion-in-mobile-retail-u.s.-2010.shtmlhttp://www.internetretailer.com/

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When Mobile Users Search

How Mobile Search Converts

Mobile Search

of smartphone owners search for retailers on mobile web. 77% report using mobile search more than 5 times in the previous month. 84%

59%

47%

61%

from home

duringcommute

fromwork

81% in theevening

Mobile search + watch TV

66%

45%

56%

74%

Mobile search + use computer

Mobile search @ social events

Mobile search + running errands

84%82%73%

search for retailercontact info

find onlineretailers

find productwebsites

68% compare productor service prices

63% search beforepurchasing offline

When Mobile Users Multitask

Sources:www.performics.comwww.roiresearch.comwww.marketingzeus.com www.cylinder8.com

2011$3.3 billion USD

2015$20.6 billion USD

21%

26%

26%

29%

36%

of retailers expect to launch a mobile commerce site. 52.6% expect to have it up and running in under one year.

Consumers Would Be Interested in Receiving:

SMS ads in proximity of a retailer

Movie theatre offers/promos

Offers you can pursue at leisure

A barcode scanned by phone

Grocery Coupons

Top 4 Countries for Mobile Ad Impressions

Worldwide Mobile Ad Spend Predictions

75.9%Mobile Advertising

1st

2nd

3rd

4thDriven by mobile search ads and local ads. Over half of U.S. mobile ad spending is local. Asia – Japan particularly – continues to dominate global mobile ad spend.

Sources:http://blog.mobclix.com/index/, August 2010http://www.360i.com/http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats#mobileads www.cylinder8.com

How are Mobile Coupons Being Delivered?

Mobile Couponing

of shoppers would not have bought an item if they did not have a coupon. 91% (with coupon) vs. 85% (without) were more likely to purchase from the store again.57%

QR Codes SMS

NFC Smart Posters Apps

Geolocation

A QR Code allows its content to be decoded quickly. They normally are used as a quick link to access paper or online content from a mobile device. These are more frequently being used as a tool for retail coupons.

Promotions and coupon codes have been sent to mobile phones via SMS for some time, but with new technologies, informational SMS can now be triggered automatically by proximity to a service or retail outlet.

By passing their device near a ‘smart poster’ with a near field communication tag embedded within it, users can interact directly with the content / promotion by information being sent straight to the device.

There are now a variety of apps available on iPhone, Android, and BlackBerry that users can interact with and find coupons relevant to them by location and category.

‘Checkin’ services such as FourSquare are now pairing up with companies to offer their customers offers based on their current or most visited locations. Events can also be triggered automatically by proximity.

Sources:Borrell Associates ReportMobile Marketing Association

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1

2

3

4

16% of consumers compareprices via mobile

10% visit the same brandor store’s website

7% look for coupons ordiscounts

6% see ratings or reviewson a product or service

5% collect rewards forvisiting a store

Men and Women Mobile Browsing In-Store (%)

What are They Talking About?

In-Store Shopping Mobile Activities

Mobile In-Store

of online shopping conversations happen in-store. If you are a retailer, you no longer have a shoppers’ undivided attention.25%

44%

While on their way, they are most likely to ask for assistance

While browsing, they are most likely to talk about your staff

While deciding to buy, they are most likely to talk about your products

While checking out, they are most likely to talk about other customers

Sources:www.marketingcharts.com/direct/in-store-mobile-product-browsing grows-78-from-09-16926www.slidehsare.net/listenlogic/listenlogic-mobile-social-shoppers

51%

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Users that Share Social Deals with Friends

Smartphone Users Prefer Shopping via Online Catalog

What Does This Mean for Retailers?

1 Search

2 Advertising

3 Couponing

4 In-Store Opportunities

of smartphone owners are open to receiving offers on their mobile phones. 91% of mobile internet access is to socialize and share.65%

62%

69%

55%

of people underthe age of 24

of people between the ages of 25 - 44

13.2% of Smartphone ownersused catalogs to browse foritems, compared with a staggering48.7% who use mobile websitesand apps for the same purpose.

of people aged45 and over

Utilize Mobile Devicesto Extend Reach Through:

13.2% 48.7%

Sources:JiWire, “Mobile Audience Insights Report: Q1 2011,” May 24, 2011http://mkt.gs/mobileretail

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WE’LL GET YOUR BRAND WHERE IT NEEDS TO BE.We create the digital marketing campaigns that unite ideas, people, and brands.

Who is C8?

We are Cylinder 8, a digital-marketing ideas factory. We make authentic brand connections,

propelled by incredible technology, for the “Screen Age.” Through these connections, people

exchange ideas, share culture, and influence social change, making the world a better place.

Contact Us

Kevin Krossing

T: 416 628 4160 x8334

E: kevin.krossing@cylinder8.com

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