Tablets: Landscape, Behaviors and Trends

SSLA Tablets 101 Lunch + LearnTABLETS 101

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HISTORY

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“Floyd sometimes wondered if the Newspad, and the fantastic technology behind it, was the last word in man's quest for perfect

communications. Here he was, far out in space, speeding away from Earth at thousands of miles an hour, yet in a few milliseconds he could

see the headlines of any newspaper he pleased.”-2001, A Space Odyssey

https://www.youtube.com/watch?v=QQkXSDKcslI

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In 1987 Apple Computer started its tablet project, which, eventually released in 1993, the Apple Newton, with a 6" screen and 800 grams weight. It used Apple's own new NewtonOS, initially running on hardware manufactured by Motorola

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THE TABLET COMPUTER MARKET WAS REINVIGORATED

BY APPLE THROUGH THE INTRODUCTION OF THE IPAD

DEVICE IN 2010.

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TABLET GROWTH

TABLETS HAVE ALREADY ACHIEVED A LEVEL OF ADOPTION IN THREE YEARS THAT IT TOOK SMARTPHONES NEARLY A DECADE TO REACH

7Smartphone and Tablet Ownership (MM)Source: comScore MobiLens & TabLens, U.S., 2003-2012

THE RACE FOR TOP OEM SHOWS FAVOR TO APPLE

8OEM Share of the Tablet Market Source: comScore TabLens, U.S., 3 Month Avg. Ending Dec-2012

TABLETS SEE HIGHER PERCENTAGES OF OLDER AND LESS AFFLUENT MEMBERS OF THEIR AUDIENCE (VS. SMARTPHONES)

Age Breakdownof Smartphone and Tablet OwnersSource: comScore TabLens and MobiLens, U.S., 3 Month Avg. Ending Dec-2012

WHY?11

TABLETS ARE VERY INTUITIVE, OLDER GENERATIONS ARE STARTING TO USE THESE DEVICES IN PLACE OF COMPUTERS,

WHICH CAN BE MORE COMPLICATED TO SET UP AND MAINTAIN

TABLETS ARE INCREASINGLY PROVIDING A LESS EXPENSIVE ALTERNATIVE TO COMPUTERS AND CAN BE MORE AFFORDABLE THAN SMARTPHONES IN THE LONG

RUN, AS THEY DON’T REQUIRE A DATA PLAN FOR USE

REMEMBER THE SMACKDOWN?

OEMS STILL COMPETE FOR TABLET MARKET SHARE LEADERSHIP : ANDROID MODELS ARE NOW THE MOST-OWNED TABLETS IN U.S. HOUSEHOLDS

Unique Tablets (000) by Platform Source: comScore TabLens, U.S., 3 Month Avg. Ending Dec-2012

PLATFORM LOYALTY IS STILL IMPORTANT IN THE REPLACEMENT CYCLE OF TECHNOLOGY

Percentage of Tablet Users by Platform Who Use Smartphone Platforms

Source: comScore MobiLens, U.S., 3 Month Avg. Ending Dec-2012

TABLET BEHAVIORS

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CONSUMERS ARE NOW ‘DIGITAL OMNIVORES’

Share of Browser-Based Page Traffic by Hour for Computer, Smartphone and Tablet Platforms Source: comScore Device Essentials, U.S., Monday, Jan. 21, 2013

Tablet consumption is highest during the late evening hours when people are curled up on the couch or winding down for the night in bed.

©2013 eMarketer Inc.

Is mobile becoming the new desktop? Is mobile becoming the new desktop?

ALREADY A PC-TO-TABLET SHIFT IN USER PREFERENCE UNDERWAYmillions of unitsPC* vs. Tablet Shipments Worldwide, 2010-2017

2010358

19

2011364

76

2012349

145

2013322

229

2014318

287

2015323

332

2016329

375

2017333

410

PC* Tablet

Note: *includes desktop and portable PCsSource: International Data Corporation (IDC), "Worldwide Quarterly TabletTracker" as cited in press release, May 28, 2013157945 www.eMarketer.com

SIMILARLY IN TABLET BEHAVIORS

% of respondents

US Tablet Owners Who Are Comfortable Using TheirTablet for Laptop/Desktop Activities*, by Demographic,Jan 2013

Female86% 14%

Male80% 20%

18-24

Gender

Age

Race/Ethnicity

88% 12%

25-3482% 18%

35-4484% 16%

45+76% 24%

Hispanic92% 8%

Total84% 16%

Yes No

Note: n=1,000; *such as retail purchases or banking/paying billsSource: Mojiva, "Tablets Rule: A Consumer Snapshot on Tablet Use andTablet Advertising," April 10, 2013155433 www.eMarketer.com

WHY?22

THE CASE FOR THE “LIGHT COMPUTING” MODEL—WHERE DOCUMENTS, DATA AND CONTENT ARE STORED IN THE CLOUD AND ACCESSIBLE ANYWHERE WITH AN

AVAILABLE INTERNET CONNECTION—IS MORE COMPELLING IN 2013 THAN IN 2010, WHEN THE IPAD WAS INTRODUCED TO THE MARKET.

SMARTPHONES VS. TABLETS

SMARTPHONES, BECAUSE OF THEIR SMALLER SIZE, ARE MORE

PORTABLE THAN TABLETS. AS SUCH, THEY LEND THEMSELVES

TO MORE ON-THE-GO USES

TABLETS, WITH THEIR LARGER SCREENS, OFFER A BETTER EXPERIENCE FOR “LEAN-BACK” ACTIVITIES SUCH AS

MEDIA CONSUMPTION, SHOPPING AND EXPERIENCES REQUIRING DEEPER

ENGAGEMENT

REMEMBER CONTEXT?

26OEM Share of the Tablet Market Source: comScore TabLens, U.S., 3 Month Avg. Ending Dec-2012

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28Percentage of Tablet Users by Platform Who Use Smartphone Platforms

Source: comScore MobiLens, U.S., 3 Month Avg. Ending Dec-2012

FOR TABLET OWNERS, THE DEVICES LEND THEMSELVES WELL TO LEISURELY BROWSING + SOCIAL NETWORKING FOR PROLONGED PERIODS OF TIME

Source: comScore MobiLens and TabLens, U.S., 3 Month Avg. Ending Dec-2012

SMARTPHONES DRIVE SHOWROOMING, TABLETS DRIVE PURCHASE

Source: comScore MobiLens and TabLens, U.S., 3 Month Avg. Ending Dec-2012

2013 eMarketer

MULTI-SCREENING, CROSS-PLATFORM AND MULTITASKING

THE EFFECTS OF MOBILE FRAGMENTATION CAN BE SEEN IN BOTH

DISPLAY AND SEARCH ADVERTISING % change vs. same period of prior year

US Mobile Paid Search Metric Growth, by Device, Q4 2012

Impressions212%

20%

Spending163%

87%

Clicks135%

29%

CPC12%

45%

Tablet Smartphone

Source: IgnitionOne, "Online Advertising Report Q4 2012," Jan 10, 2013150414 www.eMarketer.com

% of total

US Mobile Ad Requests Served by Jumptap, by Device Type, 2011-2013*

201179% 14% 7%

Smartphone Feature phone Tablet

Note: numbers may not add up to 100% due to rounding; *projectedSource: Jumptap, "Simple Targeting and Audience Trends (STAT)," March 5,2013153396 www.eMarketer.com

2013*70% 2% 29%

201278% 4% 18%

TABLET MARKETING EXAMPLES

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LEAN-BACK IMMERSIVE EXPERIENCES

SHOPPING IN THE LIVING ROOM

http://www.youtube.com/watch?v=wwsdbRM91mc

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LOCATION AND CONTEXT RELEVANCE

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NATIVE FUNCTIONALITY

http://vimeo.com/60968776

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SOCIAL

SO WHAT?why does all of this matter?

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a aa

design for multi-platform and fluid experiences

MULTI-PLATFORM PARADIGM SHIFTS DRIVE OPPORTUNITIES

PRIMETIME IS ANYTIME WITH A CONNECTED DEVICE

take advantage of key dayparts to target specific messages

LOCATION, CHANNEL AND INTENT ARE CRITICAL

a tablet search query could mean future intent - not immediate conversion

THE LINES BETWEEN DEVICE TYPES WILL CONTINUE TO BLUR

continue to innovate and experiment with our offering to find consumer sweet spots

PURCHASING ISN’T JUST HAPPENING IN THE STORE

have a tablet-optimized experience that enables purchase behaviors

2013 140.0M users 123.1M users

2014 159.9M users 143.2M users

2015 178.0M users 157.1M users

2016 193.7M users 168.1M users

2017 207.4M users 178.0M users Source: eMarketer, March 2013

CONSUMERS WILL CONTINUE TO ADOPT SMART DEVICES AT A RAPID RATE

focus on the behavior, not the technology

@kaylam

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See you on the internets.THANKS