Mobile retail opportunities

A new way to look at the market

by

All data/forecasts contained in this presentation copyright of mobileSQUARED unless stated otherwise. Data from Mobile Consumer Trends product

Mobile Commercialisationarisms

0

20

40

60

80

100

2011 2012

£ b

il.

E-commerce projections, UK

E-commerce

mobile

-

1,000,000,000

2,000,000,000

3,000,000,000

4,000,000,000

5,000,000,000

6,000,000,000

7,000,000,000

4Q11 3Q12

£

M-commerce potential

One purchase

Multiple purchases

4Q11 = £5.6 billion3Q12 = £6.6 billion

£69 billion in 2011, + 18% in 2012 = £81.42 billion (IMRG estimations + mobileSQUARED data)

NOT ACTUAL MARKET FORECASTS!

Your view of the UK mobile market ...

82.91 million subs22.8 mobile internet users17.9 mobile app users

... & this is ours

In data we trust

We segment the UK mobile subscriptions by:• Advertising• Apps• Internet• Messaging• Commerce

Then by:• Device type• Age• Gender• Location• Socio-economics

And forecast:• 6 quarters out

Our UK view, 1Q2011...

Apps: 6%M-comm: 6%

Mob Int: 5%M-comm: 5%

Mob Int: 12%M-comm: 9%

Mob Int: 19%Apps: 18%

M-comm: 22%

Apps: 7%M-comm: 7%

Mob Int: 2%Apps: 2%

Mob Int: 10%M-comm: 10%

Mob Int: 11%M-comm: 12%

Apps: 1%M-comm: 1%

Mob Int: 5%Apps: 5%

M-comm: 5%

Apps: 14%M-comm: 16%

Mob Int: 7%M-comm: 5%

Investing in Android yet?

2.4 millionNumber of Android mobile internet

users in 2Q2011

439,693

107,207

24,670

Forgotten the featurephone massive?

7.2 millionNumber of featurephone mobile internet

users in 2Q2011

904,794498,673

1,092,142

Total m-commerce users, by device

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

M-commerce users by device

Non-smartphone

Other smartphones

Android

iPhone

14.5 millionUsers of m-commerce in 1Q2011

19.2 millionUsers of m-commerce in 3Q2012

72%of m-commerce users on smartphones in 3Q2012

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

M-commerce: iPhone vs Android

iPhone 18 - 24

Android 18 - 24

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

M-commerce: iPhone vs Android

iPhone 25 - 34

Android 25 - 34

Demographics

Android m-commerce usage will overtake iPhone in 4Q2013

What is the iPhone’s appeal?

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

iPhone m-commerce activity, by age

55 - 64

45 - 54

35 - 44

25 - 34

18 - 24

25-34 y.o.s: largest m-commerce users and will experience most growth18-24 y.o.s are the next largest demographic group for m-commerce

Central, 3Q12 2.1million

responsive to mobile

advertising

47%increase in app users

1Q11-3Q12

3,799,533Total number of mobile internet users

Mobile internet users by device

iPhone

Android

Other smartphones

Total featurephones

Total legacy phones

Total

M-Commerce by device

iPhone

Android

Other smartphones

Total featurephones

Total legacy

Conclusion

iPhone will remain the largest device-type for m-commerce.Discount featurephones at your peril

Largest demographic group for m-commerce will be 25-34 y.o.s– 32% (1Q2011) & 43% in (3Q2012)

Smallest demographic group for m-commerce will be 55-64 y.o.s – 6% (1Q2011) & 8% in (3Q2012)

Regions with the greatest propensity for m-commerce: London, Central & Granada

Nick LaneChief strategy analystmobileSQUAREDnick@mobilesquared.co.uk+44 118 979 5339