January 2011 InsightExpress’ Mobile Consumer Research

Fortifying the Industry with Knowledge In our commitment to providing industry leading education in the Mobile environment, InsightExpress has completed its 14th installment of the Digital Consumer Portrait. First installment (July 2007) Second installment (October 2007) Third installment (January 2008) Fourth installment (August 2008) Fifth installment (December 2008) Sixth installment (January 2009) Seventh installment (April 2009) Eighth installment (June 2009) Ninth installment (September 2009) Tenth installment (December 2009) Eleventh installment (March 2010) Twelfth installment (June 2010) Thirteenth installment (September 2010) Fourteenth installment (November 2010)

Device & Usage Trends

Smartphones Are The New Phone A third of mobile owners have a smartphone

Device Type Influences Features Used Starting to see a slight decrease in Texting

Users Cannot Live By Apps Alone 6

Mobile Doesn’t Necessarily Mean Mobile

Social Pressure Drives Mobile Thinking about the friends/family you communicate the most with - how many of them are doing the following?

Social Networking is Mobile 18% of mobile phone owners have used a social networking site on their phone (up from 9% at beginning of 2009) 52% of Smartphone users; 9% of Regular phone users Have used on their phone Facebook89% MySpace39% Twitter29% LinkedIn12% No differences by device type

Mobile & Shopping Behaviors

Where Have You Used Your Mobile Phone? 11 In a store 82% At a Sporting event 36% In a doctor’s office or hospital 55% While flying on a plane 14% During church service 7% During a movie at the theatre 17%

Men, The Forgotten Shopper Using Mobile Phone While In Store Overall Who is doing this the most? Been on the phone and asked the person you were talking to about a product36%Females (50%) Used your mobile phone to take a picture of an item to send to someone14% Smartphone owners (27%); (21%) Used your mobile phone to search for an item to find reviews8% Males (23%); Smartphone owners (19%) Used your mobile phone to search for an item to find better prices7% Males (20%); Smartphone owners (19%) Looked for a coupon on your mobile phone6% Males (21%); Smartphone owners (16%) Females (14%) Used a coupon that was on your mobile phone already6% Males (17%); Smartphone owners (14%) Used your mobile phone to find a recipe6% Smartphone owners (16%); Males (13%); Made a purchase using your mobile phone5% Smartphone owners (13%); Males (12%) Used your mobile phone to search for an item to compare nutritional information5% Males (16%); Males (12%); Smartphone owners (12%); Scanned a barcode with your mobile phone4%Smartphone owners (10%) 12

Tidbits About the Male Mobile Shopper 53% have a smartphone Overindex in coupon usage in the past month at the following types of stores Electronics store – 30%(general pop 10%) Clothing store - 33% (general pop 15%) Department store – 30% (general pop 15%) Service location – 16% (general pop 7%) They are more inclined to go hunting for coupons When asked preference for receiving mobile coupons… 51% said they would prefer to find coupons themselves via an application (28% of the general pop) 39% said they want to text in to receive them at the store (27% for general pop) 13

I Want This Please 17% of Mobile Users have shown a clerk in a store a picture of a product on their mobile phone 14

Send Them To Me Please! 15

The Informed & Armed Mobile Shopper 16

Shopping on Mobile Isn’t One or the Other 17 56% of Smartphone owners have visited a retail store website on their phone

Kids & Mobile

The Pass Back Effect 70% of Smartphone owning parents have given their child their phone to do some activity 19

But Everyone Else Has One… Parents of kids these ages tell us 53% of their year olds have a mobile phone Regular phone - 85% Smartphone - 15% 78% of their year olds have a mobile phone Regular phone - 76% Smartphone - 24% 84% their year olds have a mobile phone Regular phone - 64% Smartphone - 36% 20

Texting with Companies

When asked how many brands they’d be willing to receive text messages from, consumers say around 2 Which companies are top of mind when we asked consumers which ones they’d most like to receive text messages from? Most mentioned are retailers… Wal-Mart Amazon Target Apple eBay 1 out of 3 People Are Receiving Text Alerts Signed up for some text alert 38% Weather15% Banks or other financial13% Sports11% Stores9% Restaurants or bars8% Airlines7% Traffic7% Music groups6% Food or drink products6% Radio stations6% Other6% Magazines5%

Text Messages Are Not a Substitute for For Smartphone owners, 24% of their is read on the mobile phone (only 4% for Regular phone owners) 23

Behavioral Profiles of Mobile Users

Three Faces of Mobile 25 Mobile Intensives Mobile Casuals Mobile Restrained

Mobile Intensives In early 2008, this group made up ~15% of the mobile universe and now they are up to 23% 86% are between years old & 54% make over $50k a year 68% own a smartphone More likely to have decision making responsibility for and consider themselves to be Influencers (people come to them for advice) in the following categories… Travel (Hotels, Airlines, Car rentals) Investments Discretionary spending (Restaurants, Clothing, Electronics, Movies, Cable/Satellite) Prescriptions & Personal Care items 45% say that when they wake up, they check their mobile phone as the first or second thing (bathroom is what mobile is competing with) 53% agree that they ‘Look at advertisements to see what I should purchase’ 44% agree that they ‘Make a “want list” from advertisements about products’ 26

Mobile Casuals In early 2008, this group made up ~25% of the mobile universe and now it is stable at 24% 65% are females 59% are between years old & 59% make under $50k a year 85% report owning a regular phone; 15% a smartphone More likely than Mobile Restrained group to text and use their camera to take and send photos Text once a week – 73% Take pics once a week - 43% Send pics once a week – 21% 46% agree that they ‘Look at advertisements to see what I should purchase’ 35% agree that they ‘Make a “want list” from advertisements about products’ 27

Mobile Restrained In early 2008, this group made up ~60% of the mobile universe and now it is down to 53% 57% are 45+ years old & 55% make under $50k a year 96% own a regular mobile phone 47% text once a week 27% take a picture with the camera on their mobile once a week 47% agree that they ‘Look at advertisements to see what I should purchase’ 28% agree that they ‘Make a “want list” from advertisements about products’ 28

With So Many Choices, What Do We Focus On?

Consumer Reaction to Mobile Ad Units in Context 30 InsightExpress’ Digital Consumer Portrait March 2010, all mobile users Legend: - Smaller bubbles are better (less annoying) - The higher up the better (more people likely to click) - The further to the right the better (more people noticed it)

Consumer Reaction to Mobile Ad Units in Context 31 InsightExpress’ Digital Consumer Portrait March 2010 By Mobile Behavior Segments Legend: - Smaller bubbles are better (less annoying) - The higher up the better (more people likely to click) - The further to the right the better (more people noticed it)

Mobile Norms & Best Practices

33 The study used norms developed in online ad testing as a benchmark to draw conclusions around the performance of advertising on mobile devices. InsightExpress compared the two using InsightNorms, the company’s normative database containing over one thousand online ad effectiveness campaigns and over one hundred mobile ad effectiveness campaigns. Mobile InsightNorms are based on InsightExpress’ flagship mobile brand effectiveness solution, Mobile AdInsights, which employs a test/control design to measure the brand impact of mobile advertising campaigns.

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38 Mobile Best Practices Stage 1 – Clear Branding Not surprisingly, campaigns that incorporate the brand in all creative sizes see higher lifts in awareness. Stage 2 – Consistent Messaging Campaigns that focus on one message (even with multiple different executions) outperform mobile norms. Stage 3 – Foster a Connection Targeted campaigns, rather than general marketing, see greater movement in favorability of the brand. Stage 4 – Give Them a Reason Successful campaigns do not let an engagement opportunity pass by and have multiple interaction elements available to the consumer. Stage 5 – Developing Preference Successful brands use this stage to send coupons that can be forwarded to friends, develop a mobile Web site with an easy-to-use store locator, compare prices, or highlight another tangible benefit that keeps consumers coming back and trusting their brand.

39 Mobile Best Practices: Creative Development Copy needs to follow the guideline of ‘the shorter the better’ Number of words ranged from depending on the size of the units Connect with the consumer Either entice them with a need, make things relevant on a personal level and/or use the words “Get” and “You” Logo size and placement is important Logo or product name should take up at least a third of the total ad unit and be placed on the left side Everybody loves a picture Incorporate some imagery rather than featuring only plain copy Cool hues rule The background color of the best performing campaigns leaned more heavily towards the cool end of the color spectrum

Think Mobile! InsightExpress is leading the future of marketing research. Joy Liuzzo Senior Director, Mobile Research (203)