2011 Interactive TrendsPresented July 2011

Topics Everything Mobile Interactive Media Grows Up Gaming Gets Serious Location, Location, Location! Content is King, Context is Queen Curation is Critical Website Evolution Social Goes Shopping One-to-One stays strong The Cloud

Everybody Wants What’s Next

What’s New in Mobile

Mobile Industry Snapshot

89% of US Population has a mobile device 40% of those devices are smartphones and

tablets 94% of SMS messages are read, with 75% of

them read instantly and 90% read within 3 minutes

26% of Smartphone users played games

Everything Mobile

Mobile Wallets/NFC t/mCommerce Location Based Services Gaming

Mobile Wallets

The State of Mobile Wallets Mobile Wallets are looming from all the major

players Near Field Communications (NFC) is still in it’s

infancy Will lead to more robust mobile marketing

campaigns and loyalty programs Can present new ways to drive POS Interactions

with Customers

Where are Mobile Wallets Going?

Everywhere! BUT… …there is not an industry leader yet It will be a hybrid solution – new hardware, add-

on accessories and more

t/mCommerce

Mobile market explosion Number of mobile purchases according to US Tablet vs.

Smartphone owners– Size is the main factor driving the better online experience– Not competitors but bridging the gap to better brick and

mortar experience

Source: ecommerce, 2011

The State of t/mCommerce

2011 has been dubbed ‘The Year of the Tablet’ According to Apple, over 25 million iPads have

been sold– First year of iphone: 6.1 million sold

Highly Customized Shopping Experiences– Examples – Gilt, Boutiques.com App, Apple store

Where is t/mCommerce Going?

UP! With new offerings from Microsoft, Google and Apple

Even more exclusive and unique shopping experiences

Seamless shopping between in-store and mobile

Google Shopper App that allows users to search items, scan barcodes

and use voice recognition Search results include prices from most online retailers When user taps a listed item, the Android browser

launches to display the retailer’s shopping page Product reviews pulled from all of the retailers that sell

that particular product

Location Based Services

The State of Location Based Services

16.7 million unique check-ins from mobile devices in March 2011

Location-Based Services are evolving beyond the Check-In

Proximity based offers are growing

Where is LBS Going?

Consumers want to play the ‘game’, want rewarded for their loyalty

Next generation of LBS – stiqrd, Groupon Now, Amazon Local, Facebook Places, Shopkick, etc.

Focus shifting to include groups

GroupMe Group app for friends to text each

other deals, to meet up for shopping trips, etc.

Supports push notifications as the default messaging option

Integration with Twitter, Facebook, Foursquare and email

One of top SXSWi 2011 apps

Mobile and Social Gaming

The State of Mobile and Social Gaming

Mobile Gaming is exploding– eMarketer: 728 million people will play a mobile

game in 2011 (23% of the US Population) – Apple’s GameCenter App has 50 million users in just

under a year Zynga has 50 million active daily users

– Will hit 1 billion active worldwide users on Cityville soon

Where is Mobile/Social Gaming Going?

More in-store ties with games via mobile, and through loyalty programs

More exclusive, branded content for established games like Cityville

Mobile Take-Aways

Mobile is going to be more important than ever in attracting and maintaining customers– eCommerce will continue to explode as smartphone and

tablet sales rise – On-Demand information and seamless experience to exclusive

content will be king Social and Location Based services will dominate

customer loyalty

Mobile Media Trends

Mobile Spending

Source: eMarketer 2011

(Millions)

Mobile Social Media Usage

Source: eMarketer 2011

Location Based Apps

ImplicationSaturation in the marketplace is still distantEarly adopters for new technology like this are high, but interest is waning Facebook Places and Deals must be continually investigated

Source: White Horse, April 2011

Full Screen DisplayData Collection/Survey Click to Map

ImplicationClick to map feature would be an interesting technique for events/concerts and the data collection could be beneficial for “The Club”

Online Media Trends

Ad Spending Shifts to Online

Source: eMarketer 2011

ImplicationWith more brands shifting ad spending online, an increase in digital media costs will follow

Search is the Leader; Video is the One to Watch

ImplicationVideo executions are becoming the new standard for online media

Source: eMarketer 2011

Search Grows for Consumers and Marketers

ImplicationCost per clicks are likely to increase with competitive pressure, but response is also likely to increase

Online/Mobile Video Boom 2011

Source: Brightroll Video Advertising Report, 2011

PPC Shifts Focus

Sign-In Ads

Facebook Video Ads

Social Media Trends

Social Media Penetration

49% of the total population will be active social network users by 2012

Growth slowing, but still increasing

Millennial (18-34) use is almost at saturation (83%)

Source: eMarkter 2011

Social Shopping

The latest trend in content creation

Bridge between offline and online commerce

Social Shopping

Crowd-Source feedback through social networks in real-time

Share and suggest what to buy and where

Social Shopping: Pose iPhone App

Share an individual shopping experience with other "Posers" in a Pose community

Online look book + a community devoted to sharing and discussing fashion, all from a mobile phone

Growing roster of brands and retailers such as Levi’s and Aerie by American Eagle, as well as Fashion Industry personalities

Social Shopping: Pinterest.com

Virtual pin board where users can create collections of things they love

Users can find inspiration and "follow" collections created by people in their social networks

Create boards with inspiration from store websites to build looks and wish lists

Social Shopping: Polyvore Members curate digital fashion collages (sets) to share

on social networks Sets include pricing and link back to the original

shopping site 2 million active users, 35K sets daily Partnerships with American Eagle,

designer Rebecca Minkoff and more

Interactive Shopping Experience

Interactive Shopping Experience Retailers are seamlessly integrating the physical

and digital shopping experience Shopping behavior and in-store tools are

evolving

Mobile Checkout Similar to Apple Store Sales associates able to look up past purchases via

mobile Spend more time with consumers on the floor Personalized experience Differentiate in-store experience

Augmented Reality Virtual Fitting Room

The Virtual Fitting Room

Brands and designers are looking to innovate shopping for fashion

The Fitting room can be Social, Mobile and Virtual

Better cameras and software are changing the game

Fashion shopping in unexpected places

Where is it going?

Personal and delightful experience is the key The same players leading the way – Microsoft is

leading a concept with their Kinect system Social apps like Pose are looking to monetize and

partner with retailers Growing along with mCommerce via

smartphones and tablets

In this “interface” age, everything is valued by how the customer interacts

with a product

Digital Signage Market

Digital Signage Market

source ABI Research

Digital Signage Recent Executions

Replaces static wayfinding with more dynamic experience- Shift from find a store to search by store, product or category

Opportunity for staff extension Enhanced sponsorship opportunities

Trend Influencers ThoughtsMobile Wallets Google, Amazon, Mozido, PayPal, Isis, Square, Visa,

Mastercard, Banks, etc In it's infancy, but the market will be won by a solution that is simple for

consumer and retailer

tCommercs/mCommerce

Retailers, Gilt, Boutiques.com, etc. Seemless shopping between in store and online

LBS Foursquare, Facebook Places, Savengr, Google Places, and deals (Groupon Now, Amazon Local)

Transition from individual to group check-in, and emerging as an important loyalty tool

Mobile/Social Gaming

Zynga More exclusive branded content for established games

Ad Spending Shifts -Audience usage expands-Interactive media budgets rise

Media costs will increase along with competition

Video -Fueled by social and mobile-Increase in ad space

Continued shift in media support and viewership

Online/Mobile ads focus on recall, awareness, and conversion

Facebook Video Ads, Sign-in verification, Greystripe Full Screen Mobile Ads

Closer association with brand metric goals

Social Shopping Pose, Woot, Amazon, Social Currency, Pinterest, Polyvore

Crowd-Source real-time feedback and suggestions on what to buy and where

Virtual Fitting Rooms Microsoft Kinect, Pose Growing along with mCommerce via smartphones and tablets

Digital Signage Digitial Aisle, usage increasing by retailers Providing customers with a unique interactive experience at point of purchase