Mobile Landscape: Towards Connected Devices

agenda21 Mobile Media Innovation Seminar

Scott Joslin, Sr. Director Advertising Solutions

sjoslin@comscore.com, +44 7901 585557

UK Mobile

26 million people
are going to spend

7.9 Billion
minutes online

This Month
comScore, Inc. Proprietary.

Source: comScore GSMA Mobile Media Metrics, May 2012

Agenda

Mobile Landscape
Mobile Media Mobile Commerce

comScore, Inc.

Proprietary.

More than 55% of the Total Mobile Audience Own a Smartphone in the United Kingdom
In April 2012, 27.6 million people from the United Kingdom age 13 and older owned a Smartphone,
representing 55.8% of the mobile population.

The total Smartphone audience increased by 40.4% year-on-year.

Growth of UK Smartphone Installed Base

30,000 25,000 # Phone Owners (000) 20,000 15,000 10,000 5,000 0

UK Smartphone Penetration

+40.4% +47% YoY Growth

Not Smartphone 44.2%

Smartphone 55.8% 27.6 million

Year on Year Growth

Product: MobiLens Data: Three month average ending April 2012

comScore, Inc. Proprietary.

Country: UK, N= 15,682

Continuous Decline of Feature Phones as Newly Acquired Devices

May 2010 was the first time when more than half of new phone acquisitions were Smartphones. By April
2012, that figure had risen to 71.9%.

When looking at all Smartphone acquisitions in April 2012, Google and Apple accounted for the majority
of new devices. Google had a share of almost 50%, while iPhones made up around 30% of newly acquired Smartphones.

New Devices Acquired by Type

100% % Acquired Device in Month 90% 80% 70%

Newly Acquired Smartphones by OS

Microsoft 5.2% Symbian 4.3% RIM 12.1%

41.1%

43.2%

32.8%

30.1%

28.1%

60%
50% 40% 30% 20% 10% 0%

58.9%

56.8%

67.2%

69.9%

71.9%

Google 49.2% Apple 29.2%

Q3 2010 Q1 2011 Q3 2011 Q1 2012 April 2012 Smartphone Not Smartphone

Product: MobiLens Data: Three month average ending April 2012
comScore, Inc. Proprietary.

Country: UK, N= 15,682

Android And Apple Devices Dominate UK Smartphone Market

Smartphone Operating System Share
100% 90% 80% % Smartphone Installed Base 70% 60% 50%

Googles Android platform share grew

rapidly over the past year, driven by the proliferation of Android devices manufactured by different OEMs and the wide availability of such devices across carriers. In the past year, Android increased its market share to 40.6%.

24.8% 40.6%

Google

Apple 27.7% RIM 26.6%

Apples share stayed relatively

consistent. Android and Apple combined now account for over 65% of the Smartphone market.

40% 30%

18.2%

Symbian

RIM managed to hold market

share and only lost minor percentage points.

17.8%
20% 10%

Microsoft

23.7% 11.2% 3.8% Other OS

Symbians market share has

dropped from over 20% to just around 11%.

0%

2.8%
April 2012

Microsoft based devices lost market

share and represented 2.8% in April 2012. Product: MobiLens
Data: Three month average ending April 2012

April 2011

comScore, Inc.

Proprietary.

Country: UK, N= 15,682

Top 5 Smartphones (Installed Base) for Selected Age Groups

13-17 Age Group: 2.3 million
RIM BlackBerry Curve 8520

55+ Age Group: 5.0 million

Samsung Galaxy Ace S5830

14.0%
reach within age group

6.4%
reach within age group

RIM BlackBerry Curve 9300

8.3%

RIM BlackBerry Curve 8520

5.3%

RIM BlackBerry Curve 9360

4.4%

HTC Wildfire S

4.7%

Samsung Galaxy Ace S5830

4.2%

Apple iPhone 3G S 8GB (Third Generation)

4.6%

RIM BlackBerry Curve 8900

3.7%

Apple iPhone 4 16GB (Fourth Generation)

3.5%

comScore, Inc.

Proprietary.

Product: MobiLens Data: Three month average ending April 2012 :UK, N= 15,682

NFC-Capable Device Market Still Small

NFC is a technology that allows two-way communication / connectivity between enabled devices. NFC
can be used for contactless mobile payment, as currently trialed by Google Wallet and PayPal.

In April 2011, there were only two NFC-enabled models with an Installed Base of around 106,000. By
April 2012, that number had risen to 15 device models.

NFC still a nascent technology with only 3.4% of the total Smartphone Installed Base: just around
947,000 devices in the UK are NFC capable.

Number of NFC-Capable Device Models

April 2011

Installed Base: 106,000

April 2012

15

Installed Base: 947,000

8
# Device Models

10

12

14

16

Product: MobiLens / Big Grid Data: Three month average ending April 2012
comScore, Inc. Proprietary.

Country: UK, N= 15,682

Multi-Device Ownership: The Rise of the Digital Omnivore

In April 2012, 15.0% of all UK Smartphone users also owned a tablet device, an increase
of 151% from the previous year.

Tablets have spurred the rise of the Digital Omnivore consumers who now go about
their days engaging seamlessly through multiple online touch points.

As Smartphones, tablets, and other connected devices provide the means to connect
outside of home and workplace, these devices have changed the way many consumers seek information, communicate, and engage online.

Percentage of Total Mobile Audience Also Owning a Tablet

Percentage of Smartphone Audience Also Owning a Tablet

15.0% 10.8% 8.3% 4.4% April 2011 April 2012 April 2011
Product: MobiLens Data: One month snapshot, April 2011 / April 2012
comScore, Inc. Proprietary.

April 2012

Country: UK, N=5,317

Demographic Split of Tablets and Smartphone Owners

The demographic profile of Smartphone owners who also own a Tablet is different to the average
Smartphone owner profile.

59% of those multi-device owners are male, mirroring the typical heavy male, early adopter profile. The split by age group shows more similarities to average Smartphone owner, attracting a more senior
audience.

Smartphone and Tablet Ownership by Gender

% Smartphone and Tablet Owners

Age Breakout of Smartphone and Tablet Owners

25% 20%

23%

24%
20% 16%

41%

15% 10% 5% 0%

13%

59%

4%

13-17

18-24

25-34

35-44

45-54

55+

Product: MobiLens Data: one month snapshot April 2012

comScore, Inc. Proprietary.

10

Country: UK, N=5,317

11.8% of Internet Traffic in the UK Is Driven by Non-Computer Devices

The largest proportion of non-computer internet traffic came from mobile devices, which drove 7.7% of
total digital traffic in the United Kingdom.

The second largest driver of non-computer traffic was the tablet category, contributing around 3.6% of
total traffic.

Share of Non-Computer Device Traffic in the UK

Mobile , 7.7% Computer, 88.2% Non-Computer, 11.8%

Tablet , 3.6%

Other , 0.5%

comScore, Inc.

Proprietary.

11

Source: comScore Device Essentials, UK, March 2012

PCs for Lunch, Tablets for Dinner on Weekdays

Most tablet activity was observed in the late evening between 9pm and 11pm. Otherwise mobile and tablet consumption patterns were similar with mobile traffic showing
peaks during typical commuter travel hours (around 9am and 6pm).

Computer-based traffic had its highest relative consumption during typical office hours,
spiking around lunchtime.
Share of Device Page Traffic Over a Day: Wednesday 7 December 2011
Tablet 10% 9% 8% Mobile Computer

7%
6% 5% 4% 3% 2% 1% 0% 12:00 AM 6:00 AM 12:00 PM
Product: Custom Analytix Data: 7 December 2011
comScore, Inc. Proprietary.

6:00 PM

12

Country: EU5

Weekend Activity Closely Aligned

Usage patterns of all three devices align more closely with one another at weekends. Two spikes occurred on the Saturday analysed at around 11am and 6pm.
Share of Device Page Traffic Over a Day: Saturday 10 December 2011
Tablet 8% 7% 6% 5% 4% 3% 2% 1% 0% 12:00 AM 6:00 AM 12:00 PM
Product: Custom Analytix Data: 10 December 2011
comScore, Inc. Proprietary.

Mobile

Computer

6:00 PM

13

Country: EU5

Agenda

Mobile Landscape
Mobile Media Mobile Commerce

comScore, Inc.

Proprietary.

14

More than 60% of UK Mobile Audience Now Uses Mobile Media

61.0% of the total UK mobile audience now uses Mobile Media. The Mobile Media
population has grown 25.3% in the past year to almost 30.2 million people in April 2012.

The growth in Mobile Media use can largely be attributed to the increase in
Smartphone adoption.

United Kingdom Mobile Market Segments

Just Voice, 8.0%
Mobile Media, 49.7% Just Voice, 6.4% Mobile Media, 61.0% 30.2 MM

+25% YoY

SMS (and not mobile media), 42.4%

SMS (and not mobile media), 32.6%

April 2011
Mobile Media User = Used browser, application, native email, stream or download music and broadcast or on-demand video (does not include SMS)
comScore, Inc. Proprietary.

April 2012
Product: MobiLens Data: Three month average ending April 2012

15

Country: UK, N= 15,682

The Differences in Access Method for Online Content

The top Smartphone categories mainly consist of news and information services. Search attracted the largest browser audience with more than 12 million Smartphone users in May 2011 Social Networking, Weather and Maps were accessed by more people in the UK via an Application than
a browser

Product: MobiLens Data: Three month average ending May 2012

comScore, Inc. Proprietary.

16

Country: UK, N=15,376

GSMA MMM UK Selected Apps by % Reach

YouTube Google Maps

22.9%

63.6%
Reach among connected app users

Google Search

15.8%

Apple iTunes

53.2%
BBC iPlayer

14.1%

Yahoo! Stocks

34.8%
Twitter

11.4%

Draw Something Free

27.4%
BBC News

10.8%

Product: GSMA MMM Application Key Measures

comScore, Inc. Proprietary.

17

Data: April 2012 [total observed audience = 14.2m] Country: UK

Smartphones Driving Majority of Growth for UK Social Networks

Social Network sites attracted an audience of more than 40 million unique visitors via computers during
April 2012, seeing a year-on-year increase of 1.9%.

Nearly 17 million Smartphone owners accessed social networks/blogs via their devices, seeing a
stronger growth rate of 42.1%.

Growth rates of LinkedIn and Twitter accessed via Smartphones outpace growth rates of computer users
by far.

Year on Year Growth of Social Networking - Smartphone vs. PC

Social Networking 42.1% 1.9% 111.3% 44.1% 88.0% 67.5%
0.0% 20.0% 40.0% 60.0% % YoY-Growth 80.0% 100.0% 120.0%

April 2012: Unique Users

17.0 million 41.1 million 1.5 million 7.0 million

LinkedIn

Twitter

5.3 million 9.7 million

Smartphone Access

PC Access

Product: MobiLens / MMX Data: April 2011 / April 2012

comScore, Inc. Proprietary.

18

Country: UK, N= 5,317

The Importance of Mobile Social Networking as Advertising Platform

While mobile Social Networking users showed the highest propensity to read posts from people they knew
personally, more than half of those also reported reading posts from brands, organizations, and events

With people increasingly using Social Networking sites not just to interact with their friends but also with
brands and organizations, this platform is important for those advertisers seeking to engage their Social Networking audiences through mobile with location-based services.

Frequency of Social Networking Activities

25 25 35 50 55 59 74 89 % % % % % % % %
89%

Read posts from people known personally Posted status update Followed posted link to website Read posts from organizations/brands/events Read posts from public figures/celebrities Posted link to website Received coupon/offer/deal Clicked on advertisement
0%

62.3% 31.9% 39.6%

23.2%

14.5% 28.5%

74%

59%

23.8%
36.3% 44.2% 24.5% 21.8% 22.9%
20%

41.8%
33.8% 32.7% 36.5% 34.9% 33.8%
40% 60%

34.4%
29.8% 23.1% 39.0% 43.2% 43.3%
80% 100%

55% 50% 35% 25%

25%

Almost every day

At least once each week

Product: MobiLens

Once to three times throughout the month

Data: Three month average ending April 2012

comScore, Inc. Proprietary.

19

Country: UK, N= 15,682

Brands Can Choose a Number of Methods to Start a Dialogue with Consumers Using a Smartphone
Place banner and text ads on mobile internet sites or in applications. 89.2% of the UK Smartphone
audience use Mobile Media and 28.3% of Mobile Media users already recalled seeing a web/app ad in April 2012.

Go Social: 61.0% of all UK Smartphone owners access Social Networking sites and 55.4% of those read
posts from organizations, brands or events.

Place an ad inside a game: Youll reach 53.8% of the Smartphone market who play games, 37.6% of
mobile games players said, they have already seen in-game ads.

Methods of Interacting
100.0% 90.0% 80.0% % Smartphone 70.0% 60.0% 50.0% 40.0%

89.2%

61.0%

28.3% of Mobile Media users recalled seeing a web/app ad

53.8% 55.4% of Social Networking users read posts from organizations /brands / events Social Networking
Product: MobiLens Data: Three month average ending April 2012

30.0%
20.0% 10.0% 0.0%

37.6% of Mobile Games Players saw in-game ads

Mobile Media

Played Games

comScore, Inc.

Proprietary.

20

Country: UK, N= 15,682

Agenda

Mobile Landscape
Mobile Media Mobile Commerce

comScore, Inc.

Proprietary.

21

Double-Digit Growth in All Mobile Retail and E-Commerce Categories

Access to all types of retail and e-commerce services is increasing in popularity.

More than 6 million Smartphone owners accessed auction sites such as eBay, representing 24.2% of the
total UK Smartphone audience, growing on 58.2% year on year.

Online retail was accessed by more than 6.4 million (23.1% of UK Smartphone owners) and has
increased its user base by 74.0% over the past year.

Retail / E-Commerce
8,000 # Smartphone Owners (000) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

74.0% 58.2%

80.0% 70.0% % Year on Year Growth

52.3%
37.6% 16.3% 22.3%

60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

Auction Sites

Online Retail

Shopping Guides Travel Service May-2011 May-2012

Classifieds

Automotive Services

YoY-Growth
Product: MobiLens Data: Three month average ending May 2012

comScore, Inc.

Proprietary.

22

Country: UK, N=15,735

15.4% of UK Smartphone Owners Made On-Device Purchases

In April 2012, almost more than 4 million made a purchase using their phone. This
represents 15.4% of all Smartphones owners in the UK.

Surprisingly, the majority of Smartphone Shoppers are male (more than 55%), with the
age groups 25-34 and 35-44 being represented strongest.

Females accounted for just over 40% of all Smartphone Shoppers.

Demographic Profile of UK Smartphone Shoppers

%Purchased Goods or Services with Smartphone 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

17.2% 13.1% 10.5%

14.1% 8.9%
7.3% 5.3% 9.7% 4.6% 2.1%

3.4%

3.7%

13-17

18-24

25-34

35-44

45-54

55+

13-17

18-24

25-34

35-44

45-54

55+

Male

Female 43.1%

56.9%
comScore, Inc. Proprietary.

Product: MobiLens

Data: Three month average ending April 2012

23

Country: UK, N= 15,682

43% of UK Smartphone Owners Use Their Phone for a Shopping Activity While in Retail Store
43% of all UK Smartphone owners have performed at least one of the shopping activities analyzed
below while they were in a physical retail store.

Taking a picture of a product is the most common activity with 39.6% reach amongst all Smartphone
owners who have performed shopping activities, followed by texting or calling friends or family about a product with 36.9% reach.

Activities Performed in Retail Store with Smartphone

Took picture of a product Texted or called friends/family about a product Scanned a product barcode Sent picture of product to family/friends Compared product prices Found store location Found coupons or deals Researched product features Checked product availability Purchased goods or services (online)
0.0% 5.0%

39.6% 36.9% 23.6% 21.6% 15.7% 13.1% 10.6% 43% of all UK Smartphone owners have performed at least one of the shopping activities in May 2012

9.7%
6.3% 6.0%

10.0% 15.0% 20.0% 25.0% 30.0% 35.0% % Performed Shopping Activity with Smartphone
Product: MobiLens Data: Three month average ending May 2012

40.0%

45.0%

comScore, Inc.

Proprietary.

24

Country: UK, N=15,735

Clothing or Accessories Most Popular Goods Purchased by UK Smartphone Shopper

Type of Goods or Services Purchased Using Smartphone
Clothing or accessories Books (not ebooks) Tickets Groceries Consumer electronics / household appliances Meals for delivery or pickup Daily deals or discount coupons Personal care / hygiene products Sports/Fitness equipment Gift certificates 38.6%

24.6%
22.0% 19.1% 18.2% 17.9% 15.1% 14.2% 8.4% 7.3%

Of all 4.6 million Smartphone Shoppers,

38.6% purchased clothing or accessories.

Purchasing books proved to be second

most popular.

The range of goods and services

purchased by more than 7% of mobile shoppers is quite diverse.

0.0% 20.0% 40.0% 60.0% %Purchased Goods or Services with Smartphone

Product: MobiLens Data: Three month average ending May 2012
comScore, Inc. Proprietary.

25

Country: UK, N=15,735

The Smartphone Acts as a Bridge Between Different Types of Media

52.9% of QR Codes scanned are found
in printed magazines or newspapers.

QR Codes are mostly scanned while

being at home, with a 63.2% reach among Smartphone owners who scanned a QR Code.
3.4 Million Smartphone owners scanned QR Code

Mobile successfully reaches different

type of media; 7.2% of all QR Codes scanned are even seen on TV!

Retail Stores take second position with

30.0%.

Source of QR Code Scanned

Printed magazine or newspaper Product packaging Poster or flyer or kiosk Website on PC Storefront Business card or brochure TV 0.0%

Location when Scanning QR Code

At home Retail store At work

52.9% 34.0% 24.6%

63.2% 30.0% 19.1%

22.8% 7.7% 7.6% 7.2%

20.0% 40.0% 60.0% Outside or on public transit

17.7%
13.5% 5.7%

Grocery store
Restaurant

%Scanned QR Code with Smartphone

Product: MobiLens

0.0% 50.0% 100.0% %Scanned QR Code with Smartphone

Data: Three month average ending May 2012

comScore, Inc. Proprietary.

26

Country: UK, N=15,735

Takeaways

The smartphone and tablet audience continues to grow rapidly

Consumers are willing and able to engage in connected media Early days in terms of tablets as mass media device Used throughout the day Ever increasing mobile media user base

Connected devices offer constant, personalised access to content The mobile media market in the UK is growing rapidly

App and browsing usage is creating ever more opportunities for consumer engagement
Connected devices enable engagement online & in bricks-and-mortar locations Identify which media they engage with, how and through which devices Robust market intelligence data adds value to campaign planning and targeting The reality as revealed by measurement is often different from intuition Full visibility of the mobile media market means no need to be blindsided

Mobile retail and transaction is a reality

Consider carefully the mobile audience you wish to reach

Dont get left behind on mobile

comScore, Inc.

Proprietary.

27

Thank You.

THE GLOBAL SOURCE OF DIGITAL MARKET INTELLIGENCE

Scott Joslin, Sr. Director Advertising Solutions sjoslin@comscore.com, +44 7901 585557