© 2011 Crain Communications Inc. Mobile Marketing Q4 Trend Report - The Incredible Potential World of Mobile Commerce: Is it a Phone, a Wallet or a Shopping Mall?

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce People Use Mobile Phones Everywhere In-store usage is third most-common location. Q: Where do you use your smartphone? Base: Smartphone users (5,013); *On the go defined as while commuting, walking Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT, April Chart 1

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Base: Smartphone owners Source: Insight Express Q Digital Consumer Portrait Chart 2 Smartphone Owners’ Plans for Holiday Shopping Q: What do you anticipate doing at the holidays on your mobile phone while you are in a store?

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Deal-a-Day Usage Frequency, and Method of Accessing Deal-a-Day Source: comScore MobiLens US; One-Month Average ending August million mobile consumers access deal-a-day, with a larger percentage of those accessing through a browser. Chart 3

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Top Deal-a-Day Brands Source: comScore MobiLens U.S.; One-month average ending August 2011 Chart 4 Groupon is the largest player, but plenty of others are getting into the game.

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Tablets Win Out Over Phones for Purchases; Phones for In-store Related Activity Base: Own smartphone and tablet (N=286) Source: PayPal/IPSOS, October 2011 Chart 5

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Purchases via Tablets Tablet purchases skew toward electronics and media. Food, travel and clothing also popular. Q: What have you purchased on your tablet instead of on your computer or in a store? Base: Tablet owners Source: Insight Express Q Digital Consumer Project Chart 6

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Tablet and Mobile Phone Search: It’s Couch Commerce Source: Google internal data Indexed traffic volume shown hourly for one day. Tablets and mobile-phone search have distinctly different patterns than desktop search Chart 7

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce U.S. Mobile-Commerce Projections Through 2016 Forrester projects $6 billion in mobile commerce in the United States this year and $10 billion next year. Source: Forrester Research Chart 8

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Source: U.S. Online Retail Forecast, , Forrester Research, Feb. 28, 2011 Chart 9 U.S. Online and Web-Influenced Retail Sales, Even e-commerce is tiny compared with web-influenced retail. Mobile will impact both.

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Shopping Activities on Mobile Phones Source: comScore MobiLens U.S., One month average ending August 2011 Chart million consumers, or 19% of the mobile audience, have performed the most common shopping activities on their mobile phones. 8.8 million consumers have done all of the above shopping activities on their mobile phones.

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Chart 11 M-Commerce, Purchases via Mobile 18% of mobile owners have purchased something on their phone. Source: Insight Express Q Digital Consumer Portrait. Base: Cell Phone Owners

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Chart 12 Demographics of Mobile Shoppers Let’s hear it for the younger dads: They’re the most likely to be mobile-shopping. Source: comScore MobiLens U.S., One month average ending August 2011

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Chart 13 Top Retail Sales via Mobile Mix of top e-commerce, electronics, couponing, entertainment Source: GroundTruth, August 2011 SITECATEGORYUNIQUESPAGE VIEWS Amazon.com Department stores15,258,444107,105,148 Microsoft Electronics14,258,56211,770,807 eBay Auction10,985,296167,460,741 Apple Electronics8,283,64519,580,872 Walmart Department stores6,807,488141,001,318 Groupon Coupons5,866,58814,949,292 Netflix Games, music, movies, books4,212,04729,548,634 Endless.com Apparel, shoes and accessories4,134,0478,842,497 Target Department stores4,081,01077,492,780 Fandango Entertainment and tickets3,972,36423,860,113

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Chart 14 Source: The Nielsen Company. Base: All M-commerce users, Q Mobile Commerce Activities by Users M-commerce activities continued to increase quarter over quarter in 2011.

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Source: comScore MobiLens U.S., One month average ending August 2011 Chart 15 Mobile Browser vs. Apps: Shopping Activities Retailers went mad for apps, but the reality is that an optimized mobile website will deliver much more bang for the buck.

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Mobile Initiatives of E-tailers Survey of top 500 e-tailers and mobile initiatives: Progress being made but a long way to go. Source: Acquity Group 2011, M-Commerce Audit Summary Chart 16

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Mobile App Presence of E-tailers Mobile app presence of top 500 e-tailers: Android has gained the most. Source: Acquity Group 2011 M-commerce Audit Summary Chart 17

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Mobile vs. Salesperson: The Scan-and-Scram Customer Get your salesperson out there meeting the scan-and-scram customer head-on. Percentage who will reach for mobile in-store before asking a salesperson Source: Insight Express, Q Digital Consumer Portrait, Base: Smartphone Owners Chart 18

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Mobile Commerce: Many Touch Points Mobile-related commerce is not one simple mode but many. Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT, April Base: Have used a smartphone to help shop or purchase in some way (3533) Q: Which of the following ways do you typically approach shopping with your smartphone? Note: “None of these” 15% excluded Chart 19

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce See Products In-Store, Order via Phone 71% of innovators are in-store checking out products, but then ordering via their phones. % of those who looked at a product in-store and ordered from phone immediately Source: OgilvyOne and OgilvyAction Global Mobile Recall Study, March Base: 1,500 United States, United Kingdom, Singapore Chart 20

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Chart 21 Privacy Concerns Around Mobile Payments Consumers aren’t all sold on using their mobile devices as wallets, and not everyone trusts his or her privacy will be protected. Source: Nielsen, Consumer Confidence Survey Q1 2010, Q3 2010

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Chart 22 Mobile Phone Shopping Barriers Security is still a hurdle for many consumers. Q: What stops you from using your mobile phone to shop? Base: Smartphone owners Source: Insight Express Q Digital Consumer Portrait.

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Chart 23 The Coffee Commerce Timeline How and when Starbucks rolled out its mobile-payment strategy Source: Starbucks

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Chart 24 Challenges to Mobile Payments Chief technology officers see NFC as the most likely way mobile payments will be rolled out. Source: Deloitte Future of Mobile Payments Survey, April 2011

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Chart 25 Challenges to Mobile Payments Several hurdles need to be cleared before mobile payments become widespread in the United States. Source: Deloitte Future of Mobile Payments Survey, April 2011

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Chart 26 Preparedness of Key Players to Deploy Mobile Payments Merchants are the laggards at getting ready for mobile payments. Note: Percentages may not add up to 100% due to rounding. Source: Deloitte Cell Me the Money, April 2011

Mobile Marketing Q4 Trend Report The Incredible Potential World of Mobile Commerce Chart 27 Most Trusted Brands in Mobile Payments Google may want to own the mobile wallet, but other brands have a leg up on trust for payments; % of respondents expressing trust: Source: Ogilvy & Mather Mobile Shopper Survey, August 9, 2011