Mobile Commerce: The Mist has cleared

A4U EXPO EUROPE

zanoxGroup | June 2012

2

• Mobile Landscape

• Performance Barometero Spaino Italyo Scandinaviao Germany

• The Complete Pictureo UK

SOURCE: http://flic.kr/p/8eSh5h

AGENDA

3

MOBILE LANDSCAPE

4SOURCE: Asymco http://goo.gl/yHZHL

Mobile is not about PhonesMobile is the new PC

5SOURCE: KPCB http://goo.gl/qPjbP

• There is a disproportion between viewership & ad spend• Money follows the eyeballs

6

PERFORMANCE BAROMETER

MOBILE INFOGRAPHIC

http://bit.ly/zanoxInfographic

SOURCE:

8

GLOBALCOUNTRY PERFORMANCE

• UK & Scandinavia have the most mobile transactions• EU East is experiencing the largest growth in the mobile space

SOURCE:

9

GLOBALDEVICE PERFORMANCE

• Over 50% of all mobile transactions come from the iPad• All smartphones on average generate the same revenue per transaction• Android recently surpassed iPhone in terms of transactions

iPad

iPhone

SOURCE:

10

GLOBALDEVICE PERFORMANCE

SOURCE:

• France & Germany are ‘iOS countries’ with 80% of their transactions• Spain leads Europe in Android based transactions (over 30%)

11

SPAININDUSTRY PERFORMANCE

SOURCE:

• Spain’s mobile growth out-paces the zanoxGroup across all industries

(YoY Jan - Apr)

12

SPAININDUSTRY PERFORMANCE

SOURCE:

• Answers the question: “Which industries lend themselves to mobile best?”• Financial Services and Retail & Shopping mobile advertisers receive a higher

percentage of m-commerce transaction than via e-comm

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CASE STUDIES

Claim: o Transactions on mobile devices need to be kept simpleo Payment walls are a major barrier on mobile devices

Facts:o Leads make up 87% of their mobile transactionso In 2011 people spent nearly 48% more via e-comm

than on mobileo However the gap has reduced to only 23% in 2012

DATING

87% Transactions are leads3.3x More mobile revenue in 201240.6% Increase in mobile revenue per lead95% Transactions from iOS

Dating (Italy)Device Usage

7.56% Mobile traffic in IT Dating sub-Industry151% Increase in mobile revenue share>8 min Users spend more time on mobile device

DATING

Datingsub-Industry

ElitePartnerDevice Usage

Claim: o People use their mobile device when they have an

immediate need

TRAVEL

Facts:o Most transaction happen in less than 8 min

<8min Average conversion time on a mobile device4.0x More mobile revenue in 2012195% Increase in mobile revenue share43.5% Higher publishers earnings per transaction

on a mobile device however the rest of the industry is experiencing reverse developments

Flightssub-Industry

4.6% Mobile traffic in SE Flights sub-Industry>42min Average Conversion time for e-commerce90% iOS Devices dominate the area

TRAVEL

REAL ESTATE

Claim:o The key to mobile marketing is matching intent with

localization

Facts:o Advertiser found mobile ‘sweet spot’ resulting in

publishers earn more, despite tough economic climate

REAL ESTATE

• Mobile Advertising will be successful when combined with localization & intent

Real Estatesub-Industry

484% Increase in revenue share5.7% Higher publishers earnings per

transaction on mobile deviceNew Mobile optimized websites

3.1% Mobile traffic in DE Real Estate Industry59% iOS has majority shareStable Overall sub-industry growthApps Average time spend on a realtor app is

16 min compared to other apps of 4 min

REAL ESTATE

OTHER INDUSTRY INSIGHTS

Furniture Health & Beauty

CTR Mobile vs. Tablet vs. Desktop1.92% 1.59% 0.93%

Conversion RateMobile vs. Tablet vs. Desktop1.69% 3.19% 3.71%

CTR Mobile vs. Desktop15.07% 4.06%

Conversion RateMobile vs. Desktop2.58% 6.54%

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M-COMMERCE: THE COMPLETE PICTURE

Our data references over 1bn clicks...

...and nearly 28m sales from 1,300 retailers

OPPORTUNITY: 2011 INTO 2012

£23.2m518k

£28.3m405k9.3m 23.7m

% MOBILE TRAFFIC: JAN 2011 – APR 2012

Jan Feb March Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb March Apr0%

2%

4%

6%

8%

10%

12%

14%

45% Increase in share 437% Increase in share

4.2m clicksin Apr 2012

SALES GROWTH: 2011 TO 2012

CONVERSION RATE: 2011 TO 2012

TRUE MOBILE MEASUREMENT

Jan Feb March Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb March Apr0%

1%

2%

3%

4%

5%

6%

7%

8%Clicks Sales

287%

125%

MOBILE DEVICE SPLIT (SALES)

January

February

March

AprilMay

JuneJuly

August

September

October

November

December

January

February

March

April0%

10%

20%

30%

40%

50%

60%

70%

Iphone Ipad Android Blackberry Other

MOBILE DEVICE SPLIT (CLICKS)

January

February

March

AprilMay

JuneJuly

August

September

October

November

December

January

February

March

April0%

10%

20%

30%

40%

50%

60%

Iphone Ipad Android Blackberry Other

DAILY SPLIT OF SALESMOBILE VS. DESKTOP

Monday Tuesday Wednesday Thursday Friday Saturday Sunday0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

90.0%

91.0%

92.0%

93.0%

94.0%

95.0%

Mobile % of sales Desktop % of sales

*w/c 13th February 2012

THE TRACKING THREAT

THE TRACKING THREAT

£132k

£2m

£27m

In lost commissions in May 2012

Revenue unattributed to affiliate marketing

Commissions lost in 2012 (allowing for growth)

Worryingly, the figure could be much higher...

THE TRACKING THREAT

• Cashback, loyalty and reward sites have to serve up interruptive messages

• Stifling mobile innovation

• Advertisers trading on affiliate good will and free traffic

MOBILE BASKET DISSECTED

80-90% of mobile sales incentivised

SimsTakeaways Entertainment Group Buying

UNDER THE BONNET

3-4% of sales through (non iPad) devices

Email affiliate

>8% of sales

>20% of sales

Bespoke mobile strategies

REPORTING REQUIREMENTS HEIGHTENED

•Advertiser: Validate pending commissions

•Advertiser:  Archived commissions

•Publisher:  Transactions

•Focus on m.commerce

13.06.2012 | zanox | mobile update

THE NEW DAWN OF MOBILE

• Affiliates are becoming multi-channel:– Understand the range of activity

• Incremental sales or minimising lost traffic?• Reporting requirements heightened• Tracking is a serious threat• Prioritise, test and optimise• Who knows how big mobile could be…?

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Chris LoonanDirector of the Mobile/Social IncubatorChristopher.Loonan@zanox.comZANOX.de AG

Kevin EdwardsStrategy Directorstrategy@affiliatewindow.comAffiliate Window

GRACIAS