December 2010Kirsty Glenne

DIGITAL BRIEFING 2010Mobile Business Innovation

© Creuna2

THE WORLD TODAYlooks like this

© Creuna3

BUTTHERE IS A SHIFT>130 million 50%70-

100,000

© Creuna4

Social Networking

Watch Video/ TV

Listen to Music

Play Games

Mobile Internet

Email

SMS

5%

4%

17%

11%

9%

10%

60%

All Mobile Users

Source: European Forrester Technographics® Benchmark Survey, Q2 2010

© Creuna5

Social Networking

Watch Video/ TV

Listen to Music

Play Games

Mobile Internet

Email

SMS

5%

4%

17%

11%

9%

10%

60%

47%

36%

61%

52%

85%

67%

92%

iPhoneAll Mobile Users2

Source: European Forrester Technographics® Benchmark Survey, Q2 2010

© Creuna

6

CREATE CONSUME

IM/chat

SMS

E-mail/ MMS

Organizer

VoiceAlerts

COMMUNICATE

Blogs

Ringtones

Social networks

Pictures

CREATE

CONTROL

Health

PaymentCommerce

Banking

Ticketing

Parking

Music

Search

News

Video

TV

Web browsing

Games

Maps

CONSUME

© Creuna

In the past 10 years, mobile phones have changed the way we communicate and live…

© Creuna8

Google estimates that there will more internet users on mobile phones than PC´s by 2013

(Ian Carrington, Director of Mobile Advertising Google)

© Creuna9

…In the next 10 years, the mobile phone will change the way we do business

(Forrester 15th Jan 2010)

© Creuna

WHAT DO THESE 3 LUXURY ITEMS HAVE IN COMMON?

$150,000 SPORTS CAR

$120,000 SPORTS BOAT

© Creuna11

© Creuna12

>10  MILLION  PEOPLE  GLOBALLY  USED  THEIR  IPHONES  TO  SHOP  EBAY  2009

EBAY SOLD PRODUCTS VIA THEIR MOBILE PLATFORM EVERY 2 SECONDS IN THE LAST QUARTER OF 2009

(EBAY,  JULY  2010)

© Creuna

$600 MILLION 2009 –$1.5 BILLION BY 2010

$150,000 SPORTS CAR

$120,000 SPORTS BOAT

eBay Fashion

© Creuna14

2%4%4%HAVE PURCHASED

19%20%13%WILLING TO

Source: Errol Denger, IBM (E-handelstrender no10/11 2010)

© Creuna

10-Ju

l-04

17-A

ug-0

4

24-S

ep-0

4

1-Nov

-04

9-Dec

-04

16-Ja

n-05

23-F

eb-0

5

2-Apr

-05

10-M

ay-0

5

17-Ju

n-05

25-Ju

l-05

1-Se

p-05

9-Oct

-05

16-N

ov-0

5

24-D

ec-0

5

31-Ja

n-06

10-M

ar-0

6

17-A

pr-0

6

25-M

ay-0

6

2-Ju

l-06

9-Aug

-06

16-S

ep-0

6

0

1000000000

2000000000

3000000000

4000000000

5000000000

6000000000

7000000000

8000000000

THE APPLE APP STORE BUZZ

300,000

7 billion

© Creuna

WAKE UP – iPHONE ALARM

CHECK YOUR EMAIL ON YOUR BEDSIDE IPAD

BREAKFAST – BROWSE FACEBOOK, TWITTER & THE NEW YORK TIMES

COMMUTE – LISTEN TO PODCAST ON YOUR SMARTPHONE

WORK – SCROLL THROUGH RSS FEEDS, MAYBE SKYPE OR IM CONVESATION

MEETING – GET DIRECTIONS ON YOUR IPHONE

© Creuna

© Creuna

Germany

Italy

Spain

France

Sweden

Netherlands

UK

3%

3%

3%

4%

4%

6%

7%

13%

8%

7%

25%

17%

19%

22%

Smartphone Users

All Mobile Users

Source: European Forrester Technographics® Benchmark Survey, Q2 2010

© Creuna

Source: European Technographics Benchmark Survey, Q2 2010

Super Connected

Entertainers

Communicators

Talkers

Inactives

Connectors

• Use primarily communication services (e.g, SMS)

• Primarily use voice

• Do not own a mobile phone

• Use mobile Internet at least weekly• Conduct 2 or more mobile advanced activities at least monthly• Play games, listen to music or Watch TV/video at least weekly• Use mobile phone for work purposes more than 25 percent of their time

13%

19%

7%

35%

28%

10%

20%

27%

12%

41%

20%

4%

© Creuna20

Sent 117,000 MMS picture messages

30% conversion rate

35,000 customers

$1,300 Spend

Cost 60,000 to runROI per MMS

$758

$45 million

BMW WINTER TYRES MMS CAMPAIGN

© Creuna

In the past 10 years, mobile phones have

MIXING UPMOBILE & SOCIAL

© Creuna

$41 billion500 million150 million241 vs 31

© Creuna

23%1 in 4

© Creuna

In the past 10 years, mobile phones have

THERE IS A CONVERGENCEMOBILE, LOCATION & SOCIAL

© Creuna

CHECK-IN’S ARE MORE OF A SOCIAL GAME THAN TRUE LOYALTY PROGRAM

I “checked in” from my house down the street.

I “checked in” from my house down the street.

Weekly usage estimated 1% of mobile owners

© Creuna26

INCREASE FOOT TRAFFIC TO RESTAURANTS BY 33% ONE DAY 4SQUARE CAMPAIGN

Used100 randomly awarded $5 and $10 giftcards as checkin bait to lure in potential diners Cost them a total of $1000

© Creuna

Location-basedapplication usersare heavy mobile researchers

Location-basedapplication users are heavy mobile researchers

1/3rd

11.5%

© Creuna28

38%

© Creuna29

Time sensitive promos (daily sales)

Look up product info

Search for business info

Location-based retail offers (coupon from a store nearby)

Look up nearest shop to check availability

Receive exclusive retailer discounts

Receive coupons while shopping in a store

Get directions from current location

8%

26%

17%

6%

21%

13%

11%

40%

5%

7%

7%

8%

9%

11%

15%

28%

Swedish Users

Europe i Phone Users

© Creuna30

MOBILE WILL ENABLE BRANDS TO INFLUENCE CONSUMERS AT THE POINT OF SALE

Sephora launched in January 2009 a mobile service to assist shoppers in-store

Product reviews from peers at the point of sale

- Coupons- Instant rewards

© Creuna31

CONVERGENCE OF MOBILE, SOCIAL & LOCATION that offers the most potential for companies to engage with consumers in new ways

The drivers are in place for MASS MARKET UP-TAKE of mobile internet & digital servicesM-COMMERCE is here but its still relatively niche

LOCATION will become a core enabler of real-time marketing offerings

© Creuna32

“THE MAJORITY OF PEOPLE

UNDER 20 THINK THE INTERNET HAS

ALWAYS BEEN THERE”

© Creuna33

100%