MOBILE EXPERIENCE STUDY 1234567

Motorola DynaTAC Motorola 4500X Motorola MicroTAC 1011 IBM Simon Nokia 8110 Motorola StarTAC Ericsson GF 768 1983 1988 1989 1992 1993 1996 1996 1998 First cellphone Pocket sized Mass-produced Phone & PDA Featured in Clamshell GSM phone combination ‘The Matrix’

Nokia 9000 Nokia 3210 Nokia 8210 Nokia 7110 Sharp J-SH04 Samsung SGH M100 Ericsson T39 1996 1998 1999 1999 1999 2000 2000 2001 ‘Smart’ phone Interchangeable Internal antenna WAP Fully integrated MP3 Player Bluetooth faceplates & vibrate function camera and colour screen

Nokia 3330 Blackberry 5810 Ericsson T68 Blackberry Quark Motorola Razr Nokia 7280 LG U8138 Nokia N95 Samsung SGH-X460 2001 2002 2003 2003 2003 2004 2004 2006 2006 Sold 120 million Sleek looks The ‘lipstick’ Video mobile 5 megapixel handsets globally phone network launched camera

Samsung F210 HTC Kaiser iPhone HTC Dream Blackberry Curve iPhone 4 HTC HD7 iPhone 5 Samsung Galaxy S4 2007 2007 2007 2008 2009 2010 2010 2012 2013 iOS Android OS Windows 7 OS 4G Why is the mobile experience so important? 1234567

Mobile advertising.

It’s one of the most elusive opportunities of our current age. Every single industry estimate, including our own, recognizes the ever- Motorola DynaTAC Motorola 4500X Motorola MicroTAC Nokia 1011 IBM Simon Nokia 8110 Motorola StarTAC Ericsson GF 768 widening delta between explosive mobile usage 1983 1988 1989 1992 1993 1996 1996 1998 First cellphone Pocket sized Mass-produced Phone & PDA Featured in Clamshell and the current level of advertising. Estimates GSM phone combination ‘The Matrix’ easily range in the billions.

Why can’t we, as a marketing industry, figure this out?

It’s a complex problem to solve, with many barriers created by the industry itself, such as the need for better KPIs for marketers to measure and justify ROI.

Nokia 9000 Nokia 5110 Nokia 3210 Nokia 8210 Nokia 7110 Sharp J-SH04 Samsung SGH M100 Ericsson T39 So, in order to find out more about how 1996 1998 1999 1999 1999 2000 2000 2001 consumers are using their mobiles, and ‘Smart’ phone Interchangeable Internal antenna WAP Fully integrated MP3 Player Bluetooth faceplates & vibrate function camera and how advertising fits into that experience, we colour screen undertook a complete rethink. In our latest study we have used our proprietary panel of consumers to study smartphone use in a range of countries in a bid to understand the most relevant and productive ways to reach people on their mobile.

Nokia 3330 Blackberry 5810 Ericsson T68 Blackberry Quark Motorola Razr Nokia 7280 LG U8138 Nokia N95 Samsung SGH-X460 2001 2002 2003 2003 2003 2004 2004 2006 2006 Sold 120 million Sleek looks The ‘lipstick’ Video mobile 5 megapixel handsets globally phone network launched camera

Samsung F210 HTC Kaiser iPhone HTC Dream Blackberry Curve iPhone 4 HTC HD7 iPhone 5 Samsung Galaxy S4 2007 2007 2007 2008 2009 2010 2010 2012 2013 iOS Android OS Windows 7 OS 4G South Korea 68%

Sweden UK Australia US 58% 55% 54% 50%

Canada France Germany Italy 49% 46% 46% 41%

China Russia Brazil 26% 23% 23%

India 5%

Range of markets by smartphone penetration 2013 projected smartphone penetration, Strategy Analytics South Mapping Korea a global 68% experience

The mobile experience worldwide is extremely diverse and complex. We needed to fully Sweden UK Australia US understand how the mobile experience was different and how it was common across a wide 58% 55% 54% 50% variety of markets – 13 in total – speaking to 1000 smartphone users in each.

We chose the markets according to smartphone penetration. We had very high penetration markets like South Korea and Sweden, but we also had markets that were just emerging as enthusiastic smartphone Canada France Germany Italy users like India. However, in interpreting what we saw we also needed to take into account 49% 46% 46% 41% significant legislative, structural, and cultural considerations in each market, for example:

1. The proportion of early adopters (in India, nearly the entire sample) show enthusiastic participation across a wide range of activities, which will decline as China Russia Brazil penetration grows. 2. Brazil smartphone users, in spite of 26% 23% 23% strong penetration and predisposition, have not become enthusiastic mobile shoppers due to the unreliability of the mobile network services.

3. Chinese mobile habits have definitely been shaped by popular home-grown web institutions, like Weibo, and the India mobile payment system, Alipay. 5%

Range of markets by smartphone penetration 2013 projected smartphone penetration, Strategy Analytics Clickthroughs/Downloads/Interactions with touchpoints Initiative’s Mobile Experience Study, March 2013. All Markets.

Voucher codes QR codes 74% 73% Brand mobile websites 71% Brand social media sites TEXT ‘VOTE’ TO 6332 Branded 69% emails Short code texts 67% 66%

Branded texts 63% Video ads Branded apps 61% 60%

Mobile banner ads Mobile search ads 52% 51% Clickthroughs/Downloads/Interactions with touchpoints The rise of the Initiative’s Mobile Experience Study, March 2013. All Markets. ‘Native Mobile Experience’ Voucher codes QR codes 74% As marketers we’re often guilty of applying tried and true methodologies and best practices 73% from one medium to another. This is certainly Brand mobile true of mobile – the mobile banner being the websites classic case. Mobile, however, is so specific 71% and so unique that we believe that ‘tried and Brand social true’ is being surpassed in effectiveness by media sites ‘native mobile experiences’ – activities and TEXT ‘VOTE’ touchpoints that can only happen on mobile. TO 6332 Branded 69% emails When we aggregate our engagement metrics Short code for all 13 markets (clickthroughs/downloads/ texts 67% interactions) across a wide variety of mobile 66% touchpoints, we see that mobile banners fall far away from the most engaging. The top performers are, simply put, touchpoints that Branded don’t occur anywhere else but mobile – QR texts codes, mobile websites, branded applications. 63% Namely, native mobile experiences. Video ads But where and how should these native mobile Branded experiences help marketers? apps 61% 60%

Mobile banner ads Mobile search ads 52% 51% What each mobile touchpoint is good at Initiative’s Mobile Experience Study, March 2013. All Markets.

Advocacy Sharing Purchase Likeability Information Awareness

Ad on a website accessed via mobile

Branded text/picture message

Branded email received on mobile

Advertising/informational video via mobile

Brand’s mobile website

Brand’s social media site via mobile

Audio recognition service (eg: Shazam)

QR code to access website

Tapping your phone (NFC) to access website

Ad on a microblog (eg: Twitter)

Texting a word to a short number

Voucher code/coupon accessed via mobile

Ad on a search engine

Ad within radio show/music service

Branded downloads (eg: apps, games)

Ad within a game on a

Ad seen pre/post a video on a mobile phone

Fullscreen ad in an app

Information/deals via augmented reality 9% 14% 19% 24% 29% What each mobile touchpoint is good at The funnel conundrum Initiative’s Mobile Experience Study, March 2013. All Markets. The other problem we have is that we are thinking of mobile in terms of another old model – the ‘funnel’.

We asked consumers what each existing mobile touchpoint was best at – from awareness, to liking a brand, to helping them buy. Currently, mobile touchpoints are outperforming in awareness and purchase but dropping off significantly in the deeper Advocacy Sharing Purchase Likeability Information Awareness emotional connections of delivering likeability Ad on a website accessed via mobile and advocacy.

Branded text/picture message Why should this worry us?

Branded email received on mobile Simply put, consumers are deeply attached to their mobile phones. We conducted qualitative Advertising/informational video via mobile research groups across four very different Brand’s mobile website markets and discovered that people treasure and depend upon their smartphones in the Brand’s social media site via mobile same way for the same reason: it makes their lives easier. So why is mobile advertising so Audio recognition service (eg: Shazam) functional? Is the state of mobile advertising QR code to access website the result of a self-fulfilling prophecy, in that marketers have simply not delivered truly Tapping your phone (NFC) to access website engaging mobile experiences?

Ad on a microblog (eg: Twitter) We believe that there are strategies that marketers can pursue to deliver these deeper Texting a word to a short number emotional experiences – those experiences that Voucher code/coupon accessed via mobile deepen familiarity and advocacy for a brand. We have four key strategies: Ad on a search engine 1. Remember, it’s a phone. Ad within radio show/music service 2. Embrace the new mobile mindsets. Branded downloads (eg: apps, games) 3. Help people live in the here and now.

Ad within a game on a mobile phone 4. Mobile browsing is the ‘missing link’. Ad seen pre/post a video on a mobile phone

Fullscreen ad in an app

Information/deals via augmented reality 9% 14% 19% 24% 29% Connecting Being entertained Gathering info Shopping 58% 37% 5% 25% 68% 7% 19% 74% 7% 15% 80% 5%

% of time spent on each device by activity Initiative’s Mobile Experience Study, March 2013. All markets.

IM / Text Social networks Email 79% 18% 3% 41% 51% 8% 32% 62% 6%

High penetration smartphone markets lead social behaviors Initiative’s Mobile Experience Study, March 2013. South Korea, Sweden, Italy, UK, Australia. 1. Remember, it’s a phone

The first and perhaps most obvious native mobile experience is centered on the fact that the mobile is, after all, a phone. We as marketers have tried to come up with various metaphors for what the smartphone represents for people: it’s a wrist watch, it’s a fourth screen, or it’s a personal assistant. It is, in fact, all of these – but we often forget that what drives the success of the smartphone is its Connecting Being entertained Gathering info Shopping ability to connect us with the people in our lives. 58% 37% 5% 25% 68% 7% 19% 74% 7% 15% 80% 5% What’s most striking about this is how people across all 13 surveyed markets are transferring their digital social behaviors – as well as live conversation – to the smartphone, away from laptops and emerging tablet behaviors. When consumers look to be entertained, they turn to their smartphone 25% of the time. However, when connecting with other people digitally, smartphone usage rises to 58%. Connecting and smartphones are made for each other.

What is remarkable about this trend is how much the ability for the smartphone to deliver instant communications has really migrated social behavior. When we look at the top five smartphone penetration markets, we see how texting and instant messaging are leading the migration of other social behaviors, such as social networking and email.

IM / Text Social networks Email 79% 18% 3% 41% 51% 8% 32% 62% 6%

High penetration smartphone markets lead social behaviors Initiative’s Mobile Experience Study, March 2013. South Korea, Sweden, Italy, UK, Australia. Activity throughout the day Initiative’s Mobile Experience Study, March 2013. All markets.

80%

70%

60%

50%

40%

Connecting 30%

Being entertained

20%

10%

0%

Just woken up While traveling to During work/school During lunchtime While traveling home While relaxing Just before work/school (not a break or lunchtime) or a break from work/school at home bedtime Activity throughout the day It’s a frequency game Initiative’s Mobile Experience Study, March 2013. All markets. The mass migration of online social behaviors to the smartphone is the sheer frequency with which it happens. When we look at the daily patterns of connecting on smartphone vs. entertainment, the next most popular activity, 80% connecting happens constantly throughout the day, only giving way to entertaining during the evening when relaxing at home.

70% It’s also a compulsion that crosses demographics. When we look at both age and gender, the compulsion to constantly check all day every day (via IM, email, status updates) 60% crosses all ages.

However, there are no huge surprises in the frequency with which the different age groups 50% carry out these functions: 18-24 year olds are most active – particularly on IM (71% check several times a day) – 45-54 year olds the least so (though 62% still check their emails several 40% times a day) with the 25-34 and 35-44 groups decreasing at a proportional rate between the oldest and youngest groups. Connecting 30% Being entertained

20%

10%

0%

Just woken up While traveling to During work/school During lunchtime While traveling home While relaxing Just before work/school (not a break or lunchtime) or a break from work/school at home bedtime Social applications are the ‘stickiest’ Initiative’s Mobile Experience Study, March 2013. All markets. play games at 44% least once a day have a branded (both solo and social) 71% social application

Gaming

Applications

are played with 36% someone else (social gaming) 67%

use it daily

Check out my new shoes! SHARE

check it several will regularly take a picture 49% times a day 26% to share with their friends Shopping

regularly post updates 25% or comments on what they are buying Social applications are the ‘stickiest’ A wider social circle Initiative’s Mobile Experience Study, March 2013. All markets. This compulsion to connect via the smartphone play games at has become so crucial to marketers because 44% least once a day the effect of social networks, enhanced by the have a branded (both solo and social) smartphone, has been to materially increase the 71% social application size of the average circle of friends.

In our 2012 study, The Age of Social Influence, Gaming we proved that consumers have contact with a wide variety of people – some of whom they have never met. Our updated statistics here show that in fact smartphone users across our Applications markets have an average social circle of 52 people whom they talk to on a regular basis, either face-to-face or online, including 13 whom they have never met.

Simply put, everything is more successful when seen through a social lens, thanks to the huge benefit of word-of-mouth.

are played with Social applications are by far the most popular 36% someone else of all branded smartphone apps, and the ‘stickiest’, with nearly everyone who has one on (social gaming) their phone checking it daily and half of those doing so several times a day. The rise of social 67% gaming has increased dramatically with the aid of the smartphone while social shopping use it daily is reaching significant penetration rates: one quarter of consumers regularly post what they are buying and the same number take pictures to share with their friends.

Check out my new shoes! Key learning SHARE Everything we do must allow people to connect with their friends and family as frequently as possible, via as many touchpoints as possible. check it several will regularly take a picture 49% times a day 26% to share with their friends Shopping

regularly post updates 25% or comments on what they are buying Viewing and sharing video while passing the time Initiative’s Mobile Experience Study, March 2013. All markets.

40% 39%

34% 34%

30% 82% 28% 28% view to share 25% conversion 24% globally

19%

Watched video while passing the time

Uploaded or shared video while passing the time Global North America EMEA LATAM APAC Viewing and sharing video while passing the time 2. Embrace Initiative’s Mobile Experience Study, March 2013. All markets. the new mobile mindsets

40% The second native mobile experience is 39% the emergence of two new mindsets that produce the highest relevance and openness to advertising that we’ve seen through the smartphone. 34% 34% First, there’s boredom

30% The first one – and we’ve all been there – is boredom. What’s the first thing we do when 28% 28% we’re bored and need to pass the time? 82% Across all 13 of our markets, almost uniformly, view to share 25% we connect with other people, through social 24% networking, gaming or texting. On average, conversion 40% of global respondents turn to social globally networks, gaming or text/IM when bored.

However, what’s truly wonderful is what 19% happens next. It’s during this mindset that people are most likely to download or view content and, most importantly, when they are most likely to download or view video.

So – people are bored, they use their smartphone to socialize, see some great content…and then what happens? It’s also Watched video during this mindset that people share the most while passing content – again the most significant sharing the time happens for video. People are most likely to upload and share video when they are bored or need to pass the time. In fact this behavior has Uploaded or nearly doubled since the last time we looked at it in 2010. Boredom leads to people telling your shared video brand story for you, across their social circle. while passing the time Global North America EMEA LATAM APAC 85% of all viewers talk about TV shows 54% of all viewers talk about TV shows online TV Talkers 22% of all viewers talk about TV shows online more than once a week

58% of TV Talkers will talk about brand ads

Multitasking with mobile is a benefit to brands Initiative’s The New Power of TV, November, 2012. All markets. Second, there’s multitasking

As an industry, we’ve often thought multitasking detracts people’s full attention from ads. Smartphones are now the main facilitator of multitasking, and we think that’s a good thing.

We asked people from all 13 countries surveyed 85% what they are doing when they turn to their of all viewers talk about smartphone as a multitasking tool. The three TV shows most prevalent activities were watching TV (56%), commuting (54%) and listening to radio (53%): not, coincidentally, all paid media.

But here’s the good news: multitasking is a great opportunity to connect the sociability of mobile with brand advertising. 54% In Initiative’s The New Power of Television: of all viewers talk about How Social is Revitalizing the Future of TV, we TV shows online TV Talkers talked about a new breed of young consumers, identified as the TV Talker, who use social media to discuss traditional mediums, such as TV shows and ads. Far from detracting from television viewing, social media has actually enhanced TV, as people take to the internet (usually via their phones) to talk about TV shows (54%) with 22% doing so more than once a week. Of those people 58% discuss brand ads 22% online – music to the ears of marketers. of all viewers talk about TV shows online more than once a week That’s how brand stories get told. And it starts with having your phone on all the time.

Key learning The two mindsets that we’ve always thought of as negatives – boredom and multitasking – are actually incredible opportunities for marketers. 58% of TV Talkers Targeting these mindsets will directly amplify the will talk about already social nature of the smartphone. brand ads

Multitasking with mobile is a benefit to brands Initiative’s The New Power of TV, November, 2012. All markets. At least once a day, I use my smartphone to... Initiative’s Mobile Experience Study, March 2013. All markets.

76% 69%

21% 19% 15%

IM / Text Update Post Post Check-in Status Video Photos At least once a day, I use my smartphone to... 3. Living in the Initiative’s Mobile Experience Study, March 2013. All markets. here and now

76% One of the most anticipated areas of improvement that smartphones can bring to consumers’ lives is the increase in productivity 69% and the ability to truly live mobile. We have certainly seen that happen, with the mobile’s impact on journalism, for example. However, we believe that the power of the here and now has the potential to be a rich native mobile experience for marketers.

There is an app for that, but is it ‘sticky’?

The first and most obvious area of study would be applications. Many of us have over 40 applications on our smartphone, but use 15 or less on a weekly basis. Our study showed, not surprisingly, that the most popular and ‘sticky’ applications are social. That’s followed in popularity by banking and shopping.

The ever-increasing use of social apps is giving 21% way to living in the here and now and the 19% emergence of ‘live reporting’. Smartphones are increasingly allowing people to report, in the 15% moment, what’s going on in their lives. Whether it’s texting – by far the largest activity – or complex actions like posting video or photos, we are being the ‘live reporter’ at least once a day.

Where we think this has tremendous potential for marketers is in building on the previous two strategies – be as connected as possible, during the mindsets of boredom and multitasking.

IM / Text Update Post Post Check-in Status Video Photos When people post online about a TV show Initiative’s The New Power of TV, November, 2012. All markets.

During the show 43%

Directly after watching the show 39% Sometime later During the after watching commercial the show break 37% 36%

Before watching the show 31% When people post online about a TV show Initiative’s The New Power of Television: How Social is Revitalizing the Future of TV, also Initiative’s The New Power of TV, November, 2012. All markets. shows how smartphones are helping TV become more social. That study showed how TV Talkers have transformed the TV broadcast, and in this project we have tracked when and how they approach the program as an event.

There is plenty of posting before and after the During the show show, but crucially online conversation peaks during the show, driving a return to live viewing. 43% And how do TV Talkers prefer to chat? Social networks through the computer still rule (64% say they post this way about a TV show) but are quickly being overtaken by – you guessed it – posting through smartphones (34% text, Directly after 23% use IM and 33% hold mobile phone watching the show conversations). In fact, this group is starting to prefer using their mobile phones as it allows 39% Sometime later them to maintain several conversations at once, after watching and to share different kinds of content with During the different people. commercial the show break 37% 36% Key Learning Use the smartphone’s ‘live reporting’ strengths to create in-the-moment social surges – starting with TV, when people are multitasking across their social circles. Before watching the show 31% Highest and lowest mobile browsing/shopping countries % likely to browse and/or shop. Initiative’s Mobile Experience Study, March 2013. All Markets.

91% 66% 91% 65% 88% 63% 67% 29% 64% 29%

Mobile browsing/shopping categories Initiative’s Mobile Experience Study, March 2013. All Markets.

Clothing Applications

Groceries Books

Highest Highest mobile browsing mobile shopping categories categories Home electronics Music

Mobile phones Clothing Highest and lowest mobile browsing/shopping countries 4. Mobile % likely to browse and/or shop. Initiative’s Mobile Experience Study, March 2013. All Markets. browsing is the ‘missing link’

The fourth and final native mobile experience that we found is what we call the ‘missing link’ — the role of the smartphone in shopping behavior. We call it the missing link because the mobile phone is the only touchpoint that connects what happens before people go in store to the moment of purchase.

We measured the effect of mobile shopping behavior in 23 different categories across 13 91% 66% 91% 65% 88% 63% 67% 29% 64% 29% markets. Naturally there is much variation across all those categories and markets, but we undertook extensive analysis to really understand in aggregate what was happening.

We found that as mobile browsing accelerated Mobile browsing/shopping categories as a behavior, the ability of the smartphone Initiative’s Mobile Experience Study, March 2013. All Markets. to act as the closer for the final sale also increased. In other words, the more you browse on mobile, the more you shop on mobile. This is highly variable across our 13 markets: Asia leads the world in mobile browsing and shopping, while consumers in European countries are slower to adopt these trends, so Clothing Applications are typically less active in mobile shopping.

Likewise, particular categories are far more likely to be high for mobile browsing – generally in those sectors where applications are the Groceries Books most popular – but the categories can vary considerably by market, with a high percentage Highest Highest of early adopters skewing current behavior. mobile browsing mobile shopping categories categories High mobile browsing and shopping conversion Home electronics Music is driven by countries and groups that use the mobile web heavily, use branded mobile sites, are more likely to use branded shopping applications and, of course, are more advertising responsive.

Mobile phones Clothing Make the most of the ‘Relaxing at home’ context Initiative’s Mobile Experience Study, March 2013. All Markets.

52% shop on their smartphone while relaxing at home 40% Mobile check product Smartphone specifications shopping browsing 40% 42% use price comparisons check product reviews 51% text while they are relaxing at home 50% Relaxing watch videos while they at home are relaxing at home 47% share videos while they are relaxing at home Constantly connecting Watching paid media 50% use social networks while they are relaxing at home Make the most of the ‘Relaxing at home’ context How can marketers Initiative’s Mobile Experience Study, March 2013. All Markets. drive more mobile browsing and shopping?

Mobile shopping isn’t that mobile – in fact, 52% much of it is done at home. shop on their smartphone While a lot of shopping is done via mobile, while relaxing at home more than half is actually done while people are relaxing at home, usually in the evening. What’s excellent news for marketers is how this 40% extremely valuable time allows them to connect Smartphone Mobile check product the mobile browsing and shopping experience browsing specifications to the other three native mobile experiences shopping outlined in this study.

This is the perfect environment for brands to 40% promote content, benefit from social influence 42% use price comparisons and tap into real shopping behaviors. At home a brand can link experiences to really build a check product reviews relationship with the consumer and express its brand personality.

This is critical because when it comes to in- 51% store the game changes entirely. Smartphones text while they are are used at that point to validate and to close relaxing at home the deal. The brand communications are entirely focused on rational short term decision- Relaxing making. Use of QR codes, accessible only 50% via smartphones, is now heavily involved in watch videos while they at home smartphone shopping (39%), while comparison are relaxing at home sites and coupon/voucher sites are used in 30% of cases. Price comparison sites are used the same amount, with 29% of people using 47% their smartphone to read about the product share videos while they online, and 27% to read a product review. are relaxing at home Constantly connecting Watching paid media 50% use social networks while they are relaxing at home Research and comparison is important for all categories Mobile activity index. Initiative’s Mobile Experience Study, March 2013. All Markets.

167 167

159 157

150 151 149 Each category 149 has unique areas

136 136 where mobile is used in the 129 shopping 128 128 123 121 process 118 114 114

108

103

Purchase Post or Research Compare Take a photo Take a photo Call/text Refer Use Purchase item with share on Activity product prices to send for self for opinion to list coupon item online phone (NFC) social Recommend

98 96 96 93 88 88 88 84 82 80 79 77

72 72 69 67 62 59

51 48 46

40

31 29

Automotive Music Household Non-alcoholic cleaners beverages Research and comparison is important for all categories While our research shows that home is the most popular place to shop and research, Mobile activity index. Initiative’s Mobile Experience Study, March 2013. All Markets. in-store research and price comparison is also a big market. In fact, almost half of all research and price comparison happens in-store.

Whilst research and price comparison are popular for all categories, mobile has particular strengths for individual categories, which marketers should play to. For example, ‘taking a photo to send’ indexes particularly highly for automotive versus the other categories and 167 167 ‘recommend’ is strong for

159 non-alcoholic beverages. 157

150 151 Mobile browsing at home continues to be 149 Each category 149 has unique areas a vital way to build brand preference, but where mobile is marketers should also bolster and monitor 136 136 price comparison sites, product reviews and used in the 129 resources for product specifications closely to shopping 128 128 123 ensure the sale happens. 121 process 118 114 114

108 Key Learning 103 Make the most of the at-home browsing and shopping experience to drive brand preference, before the fight to close the deal.

Purchase Post or Research Compare Take a photo Take a photo Call/text Refer Use Purchase item with share on Activity product prices to send for self for opinion to list coupon item online phone (NFC) social Recommend

98 96 96 93 88 88 88 84 82 80 79 77

72 72 69 67 62 59

51 48 46

40

31 29

Automotive Music Household Non-alcoholic cleaners beverages The four native mobile Help people experiences connect as often as possible through we consider to be the building blocks for more successful mobile strategies: as many ways as possible

Embrace the new mobile mindsets and give them the right components of the brand story 1. Social has to be an endemic strategy – but importantly, to get the most from it, marketers should embrace two distinct tactics. First, don’t just use one social outlet - use every means possible for people to spread the word, from texts to Facebook to check-ins. Second, social through mobile is a frequency game – make sure you constantly provide a constant stream of reasons for people to pass on your brand story.

2. Boredom and multitasking provide the moments of deepest receptivity – and the natural means to engage them through social (of course), video and gaming. Once you’ve got their engagement, give them two key ways to access your brand. First, make sure your content – video, games, promotions, are short form and easy to pass on. Then give them ways to access more information about your brand so they can tell the full brand story for you.

Live in the now 3. There are moments in every marketing plan as a brand when you can take full advantage of the ‘live reporting’ native mobile experience. Whether it’s an investment in a buzz- worthy TV integration or a live PR event, pre and post event are important, but if you do nothing else focus on mobile as the means to spike conversation live and create a brand event.

4. All three native mobile experiences culminate in one key moment that drives brand preference – using social, mobile dayparts and live reporting to drive mobile browsing at home. We seriously underestimate the power of mobile as a lean-back device that connects all of these Mobile elements that drive brand likeability – with a proven link to driving brand sales. Keep browsing the mobile tactics that drive the final deal – price comparisons, reviews, product is your features – for closing the deal at shelf. ultimate goal Methodology The Mobile Experience Study is part of Initiative’s Consumer Connections global research program which now spans in excess of 50 countries. To understand how consumers are using their mobile and the role it plays in their lives we first ran a series of in-depth discussions amongst 160 individuals covering UK, Brazil, China and India. These interviews then informed our quantitative study which covered a total of 13,000 smartphone users aged 18-54 in US, Canada, Brazil, UK, Sweden, France, Germany, Italy, Russia, India, China, South Korea and Australia. These countries were selected to represent markets at different stages of development in terms of mobile activity to provide a truly global view.

About Initiative Initiative is a global communications network within IPG Mediabrands (NYSE: IPG) one of the world’s pre-eminent media services entities. We believe in four basic principles when solving our clients’ business challenges: fast, brave, decisive and simple. Fast and responsive to the changing world of business. Brave in tackling serious issues. Decisive with our insights, opinions and recommendations and committed to making marketing complexity simple. This approach is conveyed by our talented team, industry leading tools, processes and conduct.

Initiative employs more than 2,500 creative and dynamic colleagues in 94 offices in 73 countries managing approximately $14 billion in billings annually. Our comprehensive range of communications services include: insight and strategy, analytics, media planning and buying, digital communications, branded content creation, evaluation and accountability services, social media strategy and community management. www.initiative.com

© Initiative 2013