1. Mobile Behavior Unveiled Joy Liuzzo Senior Director, InsightExpress

2. Fortifying the Industry with Knowledge In our commitment to providing industry leading education in the Mobile environment, InsightExpress has completed its 16th installment of the Digital Consumer Portrait. July 2007 – February 2011

3. Device & Usage Trends

4. Smartphones Are The New Phone More than a third of mobile owners have a smartphone

5. But, Things Are Not What They Seem… The Surprise Finding That Will Shift Our Thinking

6. Pleasantly Confused Consumers 25% of Smartphone owners call their phone a ‘regular’ phone, aka, not smart These consumers do not act like the typical smartphone user, but they don’t act like the typical regular phone user either Forrester included this as part of their 2011 predictions – it’s already happening

7. Activities Done At Least Once a Week

8. What Does This Mean? We Are Not Dealing With a Homogenous Group of Smartphone Users Anymore

9. Users Cannot Live By Apps Alone

10. Mobile Doesn’t Necessarily Mean Mobile

11. Mobile & Shopping Behaviors

12. Where Have You Used Your Mobile Phone? In a store 87% At a Sporting event 38% In a doctor’s office or hospital 57% While flying on a plane 14% During church service 9% During a movie at the theatre 22%

13. Mobile as Important For Pre-Shopping as In-Store

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

15. QR Codes

16. QR Codes…For Some 17% of smartphone owners have downloaded a QR reader application Heavily concentrated in the 25-34 year old group, with males, and iPhone and Blackberry users Limited appeal to scanning a QR code to receive a coupon – only 10% 20% Smartphone owners; 13% Males vs. 7% Females Scanning a QR code is not an experience happening all the time 25% of Smartphone owners report doing this Always or Almost Every time in the store

17. Mobile Coupons

18. Email, Text are Popular for Mobile Coupons Have you ever… 18-24 yr old25-34 yr old35-44 yr oldSmartphone Shown an email coupon to a clerk using your mobile phone15%20%23%26% Used a coupon you received in a text message15%23%25%28% Used a coupon you found in a mobile application18%19%15%23% Downloaded a coupon to print later15%22%19%26% Downloaded coupon to store loyalty card11%14%10%15%

19. More than 1/3 of Smartphone Owners Look For or Use Coupons In-Store

20. Grocery is the Most Popular Mobile Coupon 50% say they have made a special trip to a store after receiving a mobile coupon

21. Again, Text & Email are Preferred

22. Mobile Commerce

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

24. Lots of Stores Are in the Moderately Visited Bucket Most activity is driven by iPhone users

25. 18% of Mobile Owners Have Purchased Something on Their Phone; 35% of Smartphone Owners

26. Knowing Who I Am & Giving Me a Reason Will Encourage Me to Buy on My Phone

27. Texting with Companies

28. 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%

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

30. Mobile Norms & Best Practices

31. 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.

36. Mobile Best Practices: Creative Development Copy needs to follow the guideline of ‘the shorter the better’ Number of words ranged from 5 -16 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

37. Think Mobile! InsightExpress is leading the future of marketing research. Joy Liuzzo Senior Director, Mobile Research (203) 252-7005 jliuzzo@insightexpress.com