December 2010 Kirsty Glenne

DIGITAL BRIEFING 2010 Mobile Business Innovation

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THE WORLD TODAY looks like this

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BUT THERE IS A SHIFT >130 million 50% 70-100,000

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5%

4%

17%

11%

9%

10%

60%

Social Networking

Watch Video/ TV

Listen to Music

Play Games

Mobile Internet

Email

SMS

All Mobile Users

4 Source: European Forrester Technographics® Benchmark Survey, Q2 2010

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5%

4%

17%

11%

9%

10%

60%

47%

36%

61%

52%

85%

67%

92%

Social Networking

Watch Video/ TV

Listen to Music

Play Games

Mobile Internet

Email

SMS

iPhone

All Mobile Users2

5 Source: European Forrester Technographics® Benchmark Survey, Q2 2010

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CREATE CONSUME

IM/ chat

SMS

E-mail/ MMS

Organizer

Voice Alerts

COMMUNICATE

Blogs

Ringtones

Social networks

Pictures

CREATE

CONTROL

Health

Payment Commerce

Banking

Ticketing

Parking

Music

Search

News

Video

TV

Web browsing

Games

Maps

CONSUME

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In the past 10 years, mobile phones have changed the way we communicate and live…

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Google estimates that there will more internet users on mobile phones than PC´s by 2013

(Ian Carrington, Director of Mobile Advertising Google)

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…In the next 10 years, the mobile phone will change the way we do business

(Forrester 15th Jan 2010)

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WHAT DO THESE 3 LUXURY ITEMS HAVE IN COMMON?

$150,000 SPORTS CAR

$120,000 SPORTS BOAT

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>10  MILLION  PEOPLE  GLOBALLY  USED  THEIR  IPHONES  TO  SHOP  EBAY  2009

EBAY SOLD PRODUCTS VIA THEIR MOBILE PLATFORM EVERY 2 SECONDS IN THE LAST QUARTER OF 2009

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(EBAY,  JULY  2010)

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$600 MILLION 2009 –$1.5 BILLION BY 2010

$150,000 SPORTS CAR

$120,000 SPORTS BOAT

eBay Fashion

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2% 4% 4% HAVE PURCHASED

19% 20% 13% WILLING TO

Source: Errol Denger, IBM (E-handelstrender no10/11 2010)

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1E+09

2E+09

3E+09

4E+09

5E+09

6E+09

7E+09

8E+09

THE APPLE APP STORE BUZZ

300,000 7 billion

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WAKE UP – iPHONE ALARM

CHECK YOUR EMAIL ON YOUR BEDSIDE IPAD

BREAKFAST – BROWSE FACEBOOK, TWITTER & THE NEW YORK TIMES

COMMUTE – LISTEN TO PODCAST ON YOUR SMARTPHONE

WORK – SCROLL THROUGH RSS FEEDS, MAYBE SKYPE OR IM CONVESATION

MEETING – GET DIRECTIONS ON YOUR IPHONE

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3%

3%

3%

4%

4%

6%

7%

13%

8%

7%

25%

17%

19%

22%

Germany

Italy

Spain

France

Sweden

Netherlands

UK

Smartphone Users

All Mobile Users

Source: European Forrester Technographics® Benchmark Survey, Q2 2010

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Source: European Technographics Benchmark Survey, Q2 2010

Super Connected

Entertainers

Communicators

Talkers

Inactives

Connectors

• Use primarily communication services (e.g, SMS)

• Primarily use voice

• Do not own a mobile phone

• Use mobile Internet at least weekly • Conduct 2 or more mobile

advanced activities at least monthly

• Play games, listen to music or Watch TV/video at least weekly

• Use mobile phone for work purposes more than 25 percent of their time

13%

19%

7%

35%

28%

10%

20%

27%

12%

41%

20%

4%

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Sent 117,000 MMS picture messages

30% conversion rate

35,000 customers

$1,300 Spend

Cost 60,000 to run ROI per MMS

$758

$45 million

BMW WINTER TYRES MMS CAMPAIGN

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In the past 10 years, mobile phones have

MIXING UP MOBILE & SOCIAL

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 $41 billion 500 million 150 million 2 41 vs 31

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23% 1 in 4

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In the past 10 years, mobile phones have

THERE IS A CONVERGENCE MOBILE, LOCATION & SOCIAL

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CHECK-IN’S ARE MORE OF A SOCIAL GAME THAN TRUE LOYALTY PROGRAM

I “checked in” from my house down the street.

I “checked in” from my house down the street.

Weekly usage estimated 1% of mobile owners

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INCREASE FOOT TRAFFIC TO RESTAURANTS BY 33%

ONE DAY 4SQUARE CAMPAIGN

Used100 randomly awarded $5 and $10 giftcards as checkin bait to lure in potential diners

Cost them a total of $1000

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Location-based application users are heavy mobile researchers

Location-based application users are heavy mobile researchers

1/3rd 11.5%

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38%

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8%

26%

17%

6%

21%

13%

11%

40%

5%

7%

7%

8%

9%

11%

15%

28%

Time sensitive promos (daily sales)

Look up product info

Search for business info

Location-based retail offers (coupon from a store nearby)

Look up nearest shop to check availability

Receive exclusive retailer discounts

Receive coupons while shopping in a store

Get directions from current location

Swedish Users

Europe i Phone Users

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MOBILE WILL ENABLE BRANDS TO INFLUENCE CONSUMERS AT THE POINT OF SALE

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Sephora launched in January 2009 a mobile service to assist shoppers in-store

Product reviews from peers at the point of sale

-  Coupons -  Instant rewards

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CONVERGENCE OF MOBILE, SOCIAL & LOCATION that offers the most potential for companies to engage with consumers in new ways

The drivers are in place for MASS MARKET UP-TAKE of mobile internet & digital services

M-COMMERCE is here but its still relatively niche

LOCATION will become a core enabler of real-time marketing offerings

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“THE MAJORITY OF PEOPLE

UNDER 20 THINK THE INTERNET HAS ALWAYS

BEEN THERE”

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