The Mobile Landscape for Travel

‘The Mobile Digital Omnivore’ Trends across Online, Mobile and Social in the UK and beyond……

Wednesday 12th December, Centre for Contemporary Arts, Glasgow

Gregor Smith, Mobile Sales Director Europe [email protected] Contents

. comScore Introduction . Online Trends UK . Mobile Device Trends UK . Mobile Internet UK . Mobile Shopping UK . European Connected Consumer . F-Commerce – Retail and Facebook . Online Retail Trends US . Takeaways

NASDAQ SCOR Clients 2000 + worldwide Employees 1200 + Headquarters Reston, VA 170+ countries under measurement; Global Coverage 43 markets reported

Local Presence 32 locations in 23 countries

Media Owners / Advertisers Agencies

In the UK, 44 million people go online via PC 33.9 hours on average each month

+84% 16x +34% Growth Growth Growth vs 2011 vs 2011 vs 2011

5.6million 1.7million 0.7million users users users

More than 10 billion videos have been watched in Sept alone

UK’s Video Engagement Grows 20% Percent

55 billion minutes 45.5 spent watching billion online videos

minutes

Sep-11 Sep-12

Tablet Ownership (%) Among Smartphone Users Source: comScore MobiLens, UK 3 month average ending September 2011 vs September 2012 Multimedia tablets now included in the basket of goods used by the ONS to calculate inflation in 18% 16.8% the UK for 2012 16%

14%

12%

10% 9%

0% September-11 September-12

Average Time Spent Per Day Following Olympics

8hr 29min 47 min Tablet 6hr 50min 40 min Mobile 51 min 55 min PC 5hr 18min 59 min 4hr 19min 50 min

6hr 7min TV 5hr 4hr 19min 4hr 28min

TVTV Only Only TV TV+ PC/Laptop + TV +TV PC/Laptop + + TV + TVPC/Laptop + + PCOnly MobilePC + Only MobilePC ++ Tablet Mobile Mobile + Tablet

Source: comScore Olympics Single Source Multi-Platform Study. A18© comScore,+. 7/27/12 Inc. – 8/12/12 Proprietary.. Total Day. Screen Status12 Definitions: TV+PC Only = Followed the Olympics on TV and PC but not on Mobile or Tablet, TV+PC+Mobile = Followed the Olympics on TV, PC and Mobile but not on Tablet, TV+PC+Mobile+Tablet = Followed the Olympics on all 4 screens. UK Digital Ad Landscape is stealing share

In the UK, 42 million people are exposed to 77 billion ad impressions a month

Growth in smartphone user base UK (millions)

35 Smartphone Feature 30

10 34% YoY 34% 5

- Aug 11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug 12

Source: MobiLens™. © comScore, Inc. Proprietary. 15 Data based on three month moving average to August 2012 Almost 80% of All New Handset Acquisitions are Smartphones

Newly acquired handsets in August 2012

Smartphone, 0% Google 55%

Feature 21% Apple Smartphone 79% Symbian 2% 25% RIM Windows 4% 12%

Source: MobiLens™. © comScore, Inc. Proprietary. 16 Data based on three month moving average to August 2012 Three Quarters of the Smartphone Landscape Is Dominated by Android and iOS Devices

Smartphone platform market share and growth 87% 8% 19% 16% Other 47% 20% 19% Microsoft 38% 29% Symbian 21% RIM 17% 26% Apple 20% Google 32% 42% 31% 44% 22% -46%

Aug 11 Aug 12

Device market share by OEM

LG Other Motorola 1% 3% 2% Other LG 7% Sony 4% 6% Samsung Sony 24% Nokia Apple 7% 9% 29%

HTC 9% HTC 15%

RIM Nokia 10% 20% Samsung RIM 21% Apple 16% 17%

Total Base = 49.5 Million Smartphone Base = 29.6 Million

iPhone 4 HTC Wildfire S 3.3M 0.9M

iPhone 4S BB Curve 9300 2.5M 0.7M

Galaxy S2 HTC Wildfire 1.4M 0.7M

Galaxy Ace HTC Desire 1.4M 0.6M

BB Curve 8520 Galaxy S3 1.1M 0.6M

Tablet ownership among mobile users (000s)

Multimedia tablets now included 6,259 in the basket of goods used by the ONS to calculate inflation in 4.7 the UK for 2012 million iPads

2,458

Aug 2011 Aug 2012

Source: MobiLens™. © comScore, Inc. Proprietary. 20 Data based on three month moving average to August 2012 Mobile Internet

Used connected media

(millions)

25% YoY 25%

Connected Media = Used browser, application, native email, stream or download music and broadcast / on-demand video (does not include SMS)

Share of non-PC device traffic in the UK

Non PC, 0.0% Mobile, 11.5% Non PC, PC, 81.3% 18.7% Tablet, 6.5%

Other, 0.7%

Source: Device Essentials™, © comScore, Inc. Proprietary. 23 UK, September 2012 Apple iOS Devices Generate 60% of UK Non-PC Traffic

Platform share of UK tablet & mobile Internet traffic

iOS 42% 54% 4% 4% 12%

iOS Android Android 93% 7% RIM 25% 60% Other

RIM 95% 5%

Mobile Tablet Other

Source: Device Essentials™, © comScore, Inc. Proprietary. 24 UK, September 2012 Almost 70% of All Mobile Phone Data Usage Takes Place Over a Wi-Fi Network

Mobile phone traffic by network access method and platform

Wi-Fi Mobile Network

44% 69% 74%

56% 31% 26%

Mobile Traffic iOS Android

Source: Device Essentials™, © comScore, Inc. Proprietary. 25 UK, September 2012 Tablet Usage Overtakes PC and Smartphone Usage During the Weekday Evenings

Share of device page traffic over a working day - Dec 11

10%

9% Tablet 8% Mobile Computer 7% 6% 5% 4% 3% 2% 1% 0% 12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM

Mobile messaging by type (millions) / % of total base

92%

61% 23

16 47% 14 32% 8 28%

15%

Sent SMS SMS Daily Used IM IM Daily Used Email Email Daily

Growth of WhatsApp usage in UK (millions)

3 WhatsApp

Top 10 Internet categories by access method (millions)

Browser Application

Search 17 Social networking 13

Social networking 12 Weather 12

News 11 Maps 10

Weather 9 News 7

Sports 9 Search 5

Entertainment news 8 Sports 5

General reference 8 Auction sites 5 Tech news 5 Photo / video sharing 5 Photo / video sharing 5 Bank accounts 5 Online retail 5 Entertainment news 4

15.7 million 199 pages unique mobile visits viewed per visitor 3.6 million average daily 23 minutes visitors spent per day

39 pages 8 minutes viewed per day per visitor per visit

Mobile video audience reach by video category (000s)

11,026 10,502

5,950

2,036

Mobile Video Video Web Video TV Video Paid (any)

Shopping activities performed (millions)

Found store location 7.9

Made Online Purchase 6.0

Compared prices 5.5

Researched products 5.4

Found coupons or deals 5.1

Checked product availability 4.8

Shopping activities performed in store (millions)

Contacted someone about product 9.0 Took picture of product 7.0 Sent photo of product 3.5 Scanned product barcode 3.2 Compared prices 2.2 Found store location 2.0 Found coupons or deals 1.6 Researched product 1.5 Checked product availability 1.1 Made Online Purchase 0.8

Goods and services purchased on mobile (millions)

Clothing / accessories 2.2 Books 1.5 Tickets 1.3 Groceries 1.1 CE / appliances 1.1 Take aways 1.0 Daily deals / coupons 0.8 Personal care / hygiene 0.8 Sports / Fitness 0.6 Gift certificates 0.5 Furniture 0.3 Flowers 0.3 Hotel 0.3 Automotive 0.3 Flights 0.3 Ground transportation 0.1

QR Source (millions) Scan Location (millions)

Magazine / newspaper 1.7 At home 2.1

Product packaging 1.2 Retail store 1.1

Website on PC 0.9 Outside / public 0.7 Poster / flyer 0.9

At work 0.7 Card or brochure 0.3

Storefront 0.3 Grocery store 0.6

TV 0.3 Restaurant 0.2

Source: MobiLens™. © comScore, Inc. Proprietary. 37 Data based on three month moving average to August 2012 Product Information the Biggest Category For QR Code Results

Result of scanning QR code (%)

Product information 2.5

Event information 0.9

Coupon or offer 0.6

Application download 0.4

Charity / cause info. 0.4

Source: MobiLens Data: Three month average ending July 2012 © comScore, Inc. Proprietary. 38 Country: EU5, N= 67,650

The European Connected Consumer The Shift from Phones to Connected Devices

Great Britain 18.7%

Germany 7.5%

Italy 7.1%

France 5.7%

Spain 4.1%

© comScore, Inc. Proprietary. 40 Source: comScore Device Essentials, EU5, September 2012 62% of multi-device owners are male, mirroring the typical early adopter profile and different from the average Smartphone owner

Smartphone and Tablet Smartphone and Tablet Ownership by Gender 30.0% Ownership by Age

25.0% 24.0% 23.4%

38% 20.0% 17.2% 14.8% 15.0% 13.5%

10.0% 7.0%

5.0%

0.0% 62% 13-17 18-24 25-34 35-44 45-54 55+

© comScore, Inc. Proprietary. 41 Source: comScore MobiLens; 3 month average June 2012; Country: EU5, N= 67,650 A typical day on the internet also looks very different depending on the device with tablet use spiking at night.

Share of Device Page Traffic Over a Day

+8%

+12%

+18%

+0%

+13% +60%

+14%

+30%

+56%

+85%

% Share of Social Networking Visitors and Minutes by Region Source: comScore MMX, May-2012

Europe North America Asia Pacific Latin America Middle East - Africa

9% 11%

10% 15%

18% 34%

19%

17%

38% 29%

Share of Visitors Share of Minutes

Friends of Fans: Extending the Social Influence of Fans

“ASOS has been at the forefront of Facebook marketing for many years, and in order to continue increasing investment it is crucial to have access to reliable ROI measurement” Fiona Marshall, Head of Marketing Womenswear, ASOS © comScore, Inc. Proprietary. 50 Social networkers tend to be heavier online buyers, but Pinterest has significantly higher propensity than average

Buying Power Index (BPI)* for Selected Leading Social Networking Sites Source: comScore MMX, U.S., June 2012

250 226

200 163

150 130 111 106 109 100

Facebook Twitter Linkedin Myspace Tumblr Pinterest

*Buying Power Index = Average Spending per Buyer for Site / Average Spending per Buyer for Total Internet x 100; Index of 100 represents average spending behavior

Pinterest & Instagram: U.S. Unique Visitor (000) Trend Source: comScore MMX, May 2011 – July 2012 25,000

20,000 Pinterest.com +22x Y/Y

15,000 Instagram.com

10,000 +5x Y/Y

5,000

U.S. e-Commerce Dollar Sales Growth ($ Billions) Source: comScore e-Commerce Measurement +13% +12% +7% +9% $256 +17% -2% $228 +19% $214 $209 $209 $200 $94 +11% +22% $171 $85 +6% +26% $84 +9% $80 -5% $77 +12% $80 +29% $143 +9% $117 $69 +13% $93 $61 +20% $51 +28% $72 +14% +33% +10% $162 $40 +6% 0% $142 Travel $123 + 20% $130 $130 $129 +16% $30 $102 +24% $82 +24% +26% $67 +26% Retail $42 $53

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1-Q3 2012

© comScore, Inc. Proprietary. 54 In Q3, online sales growth continued to outpace offline, with online retail posting a 15% year-over-year growth rate, which was more than 7x greater than the apples to apples offline retail rate

Quarterly e-Commerce Sales Growth vs. YA Source: comScore e-Commerce Measurement 23% 23% 17% 19% 17% 14% 13% 11% 12% 14% 10% 13% 15% 15% 11% 3% -3% 0% -1% -2% 9% 9% 6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012

Quarterly Retail & Food Services Sales Growth* vs. YA *Note: The U.S. Department of Commerce calculation includes total Source: U.S. Department of Commerce (DOC) retail and food service sales, which also includes motor vehicles and parts dealers. 8% 7% 8% 4% 5% 4% 6% 4% 3% 2% 4% 3% 1% 2% 5% 7% 7% 7% 5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 -8% -7% -10% -9%

Quarterly Retail & Food Services Sales Growth vs. YA (excluding autos, gas and food/beverage) 7% 5% 6% 6% 3% 3% 3% 2% 4% 6% 4% 4% 3% 2% 1% 3% 2% 2% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 -5% -5% -6% -6%

© comScore, Inc. Proprietary. 55 The channel shift appears to be accelerating, with e-Commerce representing nearly 9% of all discretionary dollars spent in Q3 2012, an increase of 1.1 points compared to 2011

e-Commerce Share of Corresponding Consumer Spending* Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail 10.0% 9.4% 8.9% 9.0% 8.6% 8.7% 8.1% 8.0%

7.7% 8.7% 8.0% 7.7% 7.4% 7.3% 7.6% 7.7% 7.6% Share 7.0% 6.7%

6.4% 5.9% 6.9% 7.1% 7.1% 6.6% 6.8% 6.0% 6.3% 6.5% 5.1% 5.9% 5.0% 5.3%

4.3% 5.3% Commerce

- 5.0% e 4.5% 4.0% 4.6% 4.3% 4.0% 3.7% e-Commerce share peaks in 3.0% colder seasons (Q4 & Q1) 2.0%

1.0%

0.0%

*Note: e-Commerce share is shown as a percent of DOC’s Total Retail Sales excluding Food Service & Drinking, Food & Bev. Stores, Motor Vehicles & © comScore, Inc. Proprietary. 56 Parts, Gasoline Stations and Health & Personal Care Stores. Mobile phones and tablets are among the fastest growing e-Commerce sub categories – portable devices are growing at more than double traditional desktop computers

Q3 2012 e-Commerce Sales Growth vs. YA by Retail Category Source: comScore e-Commerce Measurement

Q3 2012 Growth Product Category Mobile phones and plans vs. YA +27% Digital Content and Subscriptions Very Strong Consumer Electronics (x PC Peripherals) Very Strong Audio/video equipment (e.g. TVs) Event Tickets Very Strong +12% Apparel & Accessories Very Strong Video Games, Consoles & Accessories Very Strong Flowers, Greetings & Misc. Gifts Very Strong Portable devices (e.g. tablets) Jewelry & Watches Very Strong +20% Computers/Peripherals/PDAs Strong Books & Magazines Strong Consumer Packaged Goods Strong Desktop computers Sport & Fitness Strong +8% Office Supplies Strong Home & Garden Strong Furniture, Appliances & Equipment Strong Growth rate definitions: Very Strong: +15% or higher

Avg. Monthly UVs (MM) on Select Coupon Sites in Q3 2012 Unique Visitors to Groupon in Sep-2012 Source: comScore Media Metrix & Mobile Metrix, U.S. Source: comScore Media Metrix, U.S. Y/Y Change

Groupon 13.0 +4% Groupon WhaleShark Media 9.2 N/A (via PC) LivingSocial 7.5 +10% 12.8 million

Coupons, Inc. 6.7 -7%

DEEDORGREED.COM 2.6 N/A

DEALSPL.US 2.1 +28% Groupon 2.0 FREEBIEGROCERIES.COM N/A (via mobile*) COUPONALERT.COM 1.7 -16% 19.9 million FATWALLET.COM 1.6 +56%

MyPoints Sites 1.6 +34%

* - WhaleShark Media includes RetailMeNot.com, Deals2Buy.com, CouponShare.com and CouponsEven.com

Source: Google ZMOT Handbook

© comScore, Inc. Proprietary. 59 #SOR12 Compared to 2010, consumers are increasingly comfortable receiving coupons online; nearly 1 in 3 respondents stated their preference for online coupons over another format

Q. Would you rather receive coupons online rather than any other format? Source: comScore Surveys - October 2010 & April 2012 2010 2012 Yes 23% Yes 32%

No 47% No 45%

Not Not sure 30% sure 24%

Q. Would you rather receive coupons online rather than any other format? Source: comScore Survey – April 2012

22% 24% 32% 29% 27% 45% 37%

45% 48% 56% 45% 40% 36%

27% 19% 23% 25% 22%

25 to 34 35 to 44 45 to 54 55 to 64 65 or older

Overall Rankings for Each Tool, by Statement (Ranking among tools, % Top-2 Box, 7-pt scale) Source: comScore Survey – September 2012

(shown in order of “Saves Me “Saves Me “Helps Me With average overall ranking) Money” Time” New Ideas”

#1 - Online Search Engine 2nd 1st 3rd

#2 - Retailer Website 6th 2nd 1st

#3 - Recommendations th th nd from family / friends 5 4 2

#4 - Digital Coupons st rd th (excluding deal of the day) 1 3 9 #5 - Retailer Email 4th 8th 5th

#6 - Newspapers 3rd 11th 11th

Content Categories Consumed by Mobile Phone Owners (000) & Growth vs. YA Source: comScore MobiLens, U.S., 3 Mo. Avg. (includes browser or application access)

50,000

Q3 2011 Q3 2012 40,000

+65% +59% 30,000 +67% +46%

20,000

10,000

0 Retailer Websites E-Payments Credit Cards Auction Sites

Percentage of Retail e-Commerce Dollars Spent via Mobile or Tablet Device Source: comScore Custom Mobile Research 10% 9% 9% 8% 8%

6% 6%

3% 3%

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012

Share of Daily U.S. Device Page Traffic Category Spending Among Tablet Buyers: Source: comScore Device Essentials, U.S., Jan. 24, 2012 (Weekday) Percent of Buyers via Tablet Who Conducted a Purchase within Category Source: comScore TabLens, U.S., 3 Mo. End Sep 2012 Tablet 10% Apparel & 9% Smartphone 50% Accessories 8% Computer 7%

6% Books 33%

4% Tickets 29% 3%

2% 1% Daily deals 28% 0%

Consumer

25%

5:00PM 9:00PM 1:00PM 2:00PM 3:00PM 4:00PM 6:00PM 7:00PM 8:00PM

2:00AM 3:00AM 4:00AM 5:00AM 6:00AM 7:00AM 8:00AM 9:00AM

1:00AM Electronics

12:00PM 10:00PM 11:00PM

12:00AM 10:00AM 11:00AM

“Showrooming” – verb. Visiting a brick-and-mortar store to see a product but instead purchasing the product online. Shoppers may intend from the start to purchase the product online, or may decide to purchase online, rather than in-person, after viewing the item at the store.

Although only 16% of consumers were aware of the term 37% “showrooming” unaided, 37% agreed they engaged in the activity after seeing a definition

32% 16% 12%

% who have heard of 'showrooming' % who have engaged in 'showrooming'

Share of Mobile Time Spent by Retailer Selected Leading Retailer Mobile Web Properties App vs. Mobile Web Unique Visitors (MM): Mobile Web + App Combined Source: comScore Mobile Metrix, U.S., Sep-2012 Source: comScore Mobile Metrix, U.S., Sep-2012 App Mobile Web

Amazon 58.0 Amazon 84% 16%

eBay 37.5 eBay 84% 16%

Wal-Mart 18.6 Wal-Mart 42% 58%

Netflix 17.1 Netflix 99% 1%

Target 11.1 Target 38% 62%

RedBox 7.9 RedBox 86% 14%

Best Buy 6.5 Best Buy 30% 70%

Etsy 4.7 Etsy 65% 35%

Barnes & Noble 3.8 Barnes & Noble 92% 8%

. Share of Internet Traffic from non-computer devices will continue to rise . Connected devices will continue to drive E/M/F Commerce . Economic hardship is not effecting the growth of E/M/F Commerce . Facebook should not be underestimated in its power to drive incremental sales for Brands . The channel shift to online is accelerating: online sales increased by +15% in Q3, while on a comparable category basis, offline sales increased only 2% – E-Commerce sales growth driven by more buyers, buying more – Mobile commerce accounted for 10% of all retail e-commerce sales in Q3 . All product categories showed strong sales growth YoY – Sales of mobile phones up 27%; portable devices up 20% in US alone . Search, retailer websites and recommendations from family/friends were identified as top shopping tools by consumers in Q3 . The Four S’s expected to be key drivers of e-Commerce over Christmas Trading period: – Social Commerce, Smartphones, Showrooming, Sit-Back Shopping

For free graphical representations of key “data gems” Thank you! visit the comScore Data Mine at:

http://www.comscoredatamine.com/category/mobile/

Gregor Smith, Sales Director Mobile, Europe [email protected]