TMK | Mobile Overview | March 2015

MOBILE OVERVIEW | MARCH 2015

WE LIVE IN A MULTI-DEVICE WORLD...

...AND MOBILE IS AT THE CENTER

4

IN 2000, THERE WERE 0.5 B PEOPLE ONLINE AND 0 SMARTPHONES

3.5

3.0

2.5

2.0

1.5

0.0

1.0

0.5

20001995

Billion People Online

People Online Smartphones

Source: ITU, a16z

5

IN 2014, THERE WERE 3 B PEOPLE ONLINE AND 2 B SMARTPHONES

3.5

3.0

2.5

2.0

1.5

0.0

1.0

0.5

20001995

People Online Smartphones

2014

Billion People Online

Source: ITU, a16z

6

IN THE NEXT 5 YEARS, ANOTHER 1 B PEOPLE WILL COME ONLINE...THROUGH SMARTPHONES

Source: ITU, a16z

5

4

3

2

0

1

20001995 2014

Billion People Online

2020

People Online Smartphones

7

BY 2020, 80% OF ADULTS ON EARTH WILL HAVE A SMARTPHONE

Source: World Bank, GSMA, a16z

8

7

6

5

4

0

3

2

ADULTSPOPULATION

2014 Growth to 2020

PCs

Global Population (bn)

1

SMARTPHONESMOBILETV AUDIENCE

8

THE SMARTPHONE INDUSTRY ALREADY DWARFS THE PC INDUSTRY

Source: Gartner, Apple, Google, a16z

PCs iOS & Android

Quarterly Shipments (m)

300

250

200

150

100

0

50

MARCH95

MARCH97

MARCH99

MARCH01

MARCH03

MARCH05

MARCH07

MARCH09

MARCH11

MARCH13

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SMARTPHONES & TABLETS = 50% OF ALL CONSUMER ELECTRONICS

Source: GfK, a16z

Smartphone & Tablet Share of Global CE retail Revenue

50%

40%

30%

20%

10%

0%2008 2009 2010 2011 2012 2013 2014

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45% OF ALL VIDEO PLAYERS ARE MOBILEAND ONLY 24% ARE TVS

Source: Apple, Google, nokia, blackberry, displaysearch

Global Install Base of Video Players

TVs24%

iOS13%

Google Android23%

Chinese Android9%

PCs & Macs30%

WP/RIM1%

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WHICH MEDIA WOULD CHILDREN MISS THE MOST?

Source: Ofcom

100%

75%

50%

25%

0.0BOYS

OtherTV set

‘Media You Would Miss Most’. UK aged 11-15

Games ConsolePC

GIRLS

Mobile & Tablet

MOBILE IS THE “ENABLER” OF THE INTERNET OF THINGS

13

WEARABLE TECH PEOPLE ACTUALLY WANT TO WEAR

14

MOBILE INTELLIGENCE EMBEDDED IN CARS

15

NEURAL CENTER OF THE CONNECTED HOME

“THE TALK OF CES 2015”

Consumers Intending to Buy Smart HomeDevices in NEXT 12 Months

U.S. Broadband Households

16

PHYSICAL OBJECTS COME TO LIFE:

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WE ARE AT THE BEGINNING OF THE POST-PC ERA OF CONNECTIVITY

AND MOBILE IS DRIVING IT

BUT WHY HAS MOBILE SEEN SUCH GROWTH?

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A NEW iPHONE HAS625 TIMES MORE COMPUTING POWER THAN A 1995 PENTIUM

Source: Apple, Intel, a16z

A SMARTPHONE IS A SUPERCOMPUTER IN YOUR POCKET

APPLE SOLD 25 TIMES MORE PROCESSING POWERDURING IPHONE LAUNCH WEEKEND

THAN EXISTED IN ALL THE PCS ON EARTH IN 1995

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SMARTPHONES SELL TO EVERYONE. YES, EVERYONEAS INCOME FALLS, THE UTILITY OF MOBILE INCREASES

Source: Ericsson, Mckinsey

Sub-Saharan Africa Population Coverage

80%

70%

60%

50%

40%

0%

30%

20%

CELLULARCOVERAGE

10%

3G COVERAGENOW

3G COVERAGEBY 2019 ELECTRICITY MOBILE

USERS

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BUT A SMARTPHONE IS ALSO INHERENTLY DIFFERENT AND MORE USEFUL THAN A PC:

Source: Apple, Intel, a16z

PERSONALSOCIAL

GOES EVERYWHERESENSORS, CAMERAS, GPS, PAYMENTS

AND MUCH, MUCH EASIER TO USE

22Source: Comscore Multi-platform & Mobile Metrix, us, June 2013 - June 2014

MOBILE APPS ARE OFTEN HIGHLY VERTICALIZED MARKETPLACESCONTAINING WILDLY SUPERIOR USER EXPERIENCES

P.S. MORE TIME IS SPENT IN MOBILE APPS THAN ON ALL OF THE WEB

GREAT EXPERIENCES WIN

23

UBER

Revenue is 100% mobile

Revenue grew 300% in 2014 and is accelerating

Gross revenue run rate of $10 B by end of 2015

Operates in 150 cities in 46 countries

Source: Business Insider, Nov 2014

>>>>

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PANDORA

78% of total revenue comes from mobile

Mobile revenue grew 52% year-over-year (Q3 2014)

3.9 billion hours of music listened via mobile (Q3)

Source: Pandora Q3 2014 Financial Results

>>>

25

AMAZON

86 million mobile users each month

41% of audience is coming via mobile only

60% of 2014 holiday sales were on mobile

Total holiday sales via app doubled in 2014

Source: TechCrunch, Dec 2014

>>>>

26

STARBUCKS

mobile is 20% of total US revenue

7 million mobile payment transactions per week

New COO is former technology pioneer

Source: WSJ, Jan 2015

>>>

MEDIA - DISRUPTIONS & IMPLICATIONS

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Mobile connects — digital & physical experiences, devices, media

Every brand has mobile “moments” with their customers — good or bad

Mobile increases opportunities for all media channels

New mobile platforms will create new user experiences and moments

4 IMPORTANT THINGS ABOUT MOBILE & MEDIA

1:2:3:4:

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The Retail Example

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OLD SHOPPING MODEL

AWARENESS CONSIDERATION PURCHASE

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PURCHASE

MOBILE DISRUPTION IN RETAIL

CONSIDERATION

AWARENESSCONSIDERATION

CONSIDERATION

PURCHASE

AWARENESSPURCHASE

CONSIDERATION

AWARENESSCONSIDERATION

PURCHASEADVOCACY

AWARENESSADVOCACY

AWARENESST.V., PRINT

CONSIDERATIONASK A FAMILY MEMBER

PURCHASEIN STORE

THE NEW MOBILE PURCHASE FUNNEL COMBINES AWARENESS, CONSIDERATION, PURCHASE & ADVOCACY

INTO ONE EXPERIENCE THAT TRAVELS WITH YOU ANYWHERE, ANYTIME

PAST PRESENT

SHOPKICK - USES GEO FENCING TO PROVIDE SHOPPERS DEALS WHILE IN-STORE

SHOPKICK - USES GEO FENCING TO PROVIDE SHOPPERS DEALS WHILE IN-STORE

REDLASER - BARCODE SCANNER. PRICE COMPARE INSTANTLY WITH TOP TIER RETAILERS

FANCY - COMBINES PINTEREST AND MOBILE ECOMMERCE

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MOBILE DISRUPTION IN RETAIL

PURCHASE

AWARENESSADVOCACY

CONSIDERATIONPURCHASE

CONSIDERATIONADVOCACY

MOBILE EMPOWERS SHOPPERS AND MAKES BRAND ADVOCACY POSSIBLE, IN REAL-TIME

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MOBILE LANDSCAPE

CONSIDERATION

BANK/PAY

GET SMARTER

EAT/DRINK

COMMUNICATE

WATCH/LEARN/LISTEN

GAME TRAVELZOCDOC

MD LIVEAETNA

MY FITNESS PALDOC ON DEMAND

WEB MDKAISER PERMANENTE

FITBIT

LIVE HEALTHIER

DOWNCASTSPOTIFY

PANDORAFLIPBOARD

NETFLIXNYTIMES

YOUTUBE

FACEBOOKYOUTUBE

GMAILINSTAGRAMWHATSAPP

TWITTERSKYPE

SNAPCHATGOOGLE+

VINEPINTERESTLINKEDIN

CHASECAPITAL ONEMINTVENMOGOOGLE WALLET

SEARCHGOOGLE MAPSGOOGLE TRANSLATEEVERNOTEWEATHER CHANNELCAMERADROPBOX

SEEMLESSYELPOPEN TABLESTARBUCKSFOOD NETWORKMY RECIPE BOOK

UBERKAYAKHOTELSTRAVELOCITYWAZE

THE EXTENT OF MOBILE DISRUPTION HAS ONLY SCRATCHED THE SURFACE

THE MOBILE TECH STACK

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MOBILE STACK

2

CREATIVE

Native

Dynamic

Video

ANALYTICSTARGETING

Location (GPS) Cross-deviceAttribution

In Store (Beacon)

Retail POS

Cross-mediaAttribution

36

Creative

Native

37

38

Creative

Dynamic

39

40

41

Creative

Video

42

43

44

Targeting

Location (GPS)

45

product: Place Visit Rate (PVR)

PVR = # of exposed devicesobserved in location

# of exposed devices

46

Targeting

In-Store (Beacon)

47

48

49

Analytics

Cross-Device Attribution

50

How It Works

51

We’re Building The Technology That Maps The Cross-device World.

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Analytics

Cross-Media Attribution

53

product: Online Campaign Ratings (OCR) Cross-Platform Campaign Ratings (XCR)

OCR: next-day view of online & mobile audienceXCR: unduplicated cross-platform reach

54

product: PIQ PrimeTimeHH set-top box data from Rentrak is merged with location analytics from PlaceIQTarget consumers when they are mobile and on-the-go, based on their TV viewership

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Analytics

Retail Point-of-Sale

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connect:

target:

determine:

determine:

TV viewing data to mobile devices in same HH

Those TV viewers when they are near retail

Whether consumers actually visit the stores

Whether store visits resulted in purchases

THANK YOU