1.Mobile IQ L2 2012 L2ThinkTank.com January 11, 2012 SCOTT GALLOWAY NYU Stern

2. register now Mobile Clinic Welcome Scott Galloway Founder, L2 Digital Omnivores: Key Insights Into Todays Connected Consumer Mark Donovan SVP Mobile, comScore, Inc. Mobile is Dead, Long Live Mobile Andy Weissman Partner, Union Square Ventures The Game Changer on the Path to Purchase Jeremy Arnon Strategic Partner Development, Google Q&A Session Evolving Strategy for Creative Execution in Mobile Nuri Djavit Partner & CEO, Last Exit HTML5: Going Web vs. Going App Jason Baptiste Cofounder & CEO, OnSwipe Lessons from The Collection MZ Goodman & Simone oliver New York Times Influencing Real Life Networks Tanuj Parikh Business Development Manager, GroupMe Insights from Prestige 100 : Mobile IQ MAUREEN MULLEN & Colin Gilbert Research & Advisory, L2 Q&A Session Welcome Scott Galloway Founder, L2 The Mobile Landscape in Europe Jeremy Copp VP, Mobile, Europe, comScore, Inc. Evolving Strategy for Creative Execution in Mobile Kent Valentine Engagement Director, Last Exit Retail Forever Transformed Chuck Goldman Chief Strategy Officer, Apperian, Inc. Case Studies & Best Practices in Prestige Mobile Patrick Sarkissian CEO & Founder, Sarkissian Mason Q&A Session The Google Mobile Platform Robbie Douek Head of Mobile Sales & Operations, Google France L2 Mobile Research Maureen Mullen & Colin Gilbert Research & Advisory, L2 Hugo Boss: A Case Study Markus Aller Teamleader, Online Media, Hugo Boss Joachim Bader Managing Director, CLANMO GmbH Q&A Session nyc ParisJanuary 19, 2012 NYU Stern January 24, 2012 Palais Brongniart register now Module 1: Module 1: Module 2: Module 2: 3. L2 2012 L2ThinkTank.com 3 Want to know more about your brands Mobile IQ? CONTACT US Mobile IQ In the fourth quarter of 2010, more smartphones were shipped than PCs for the first time.1 By 2015, more users will access the Internet wirelessly via a mobile device than from a wired Ethernet connection.2 Over the next five years, m-commerce sales are set to quintuple.3 On the years biggest shopping day, Black Friday, online retail traffic from mobile devices comprised 14.3 percent of page views, up from 5.6 percent last year, and mobile sales ballooned to 9.8 percent of online sales, up from 3.2 percent last year.4 Throughout the past decade, analysts have relentlessly predicted The Year of Mobile. It now looks as if we are in the fledgling innings of a mobile era. Game Changer The introduction of the iPad in April 2010 has escalat- ed the mobile opportunity. Tablets register e-commerce conversion rates of four to five percent versus three percent on traditional PCs.5 The user demographics for the iPad and other tablets illuminate the opportunity for prestige brands: 20 percent of individuals with $1 million or more in investable assets own a tablet and spend 50 percent more time on the device than on their smartphone.6 APPeal Prestige brands have been prudish with mobile. The mobile strategy for most brands has been dominated by blind investments in iOS apps that lack utility and stickiness. Seven in 10 brands in the Index maintain at least one iOS app, but less than a third of all apps produced are commerce-enabled. Use of features such as notifications, geolocation, and language specification is more limited. Less than a fifth of brands have developed a distinct, iPad-specific experience. M-Commerce We believe the game will be won or lost via develop- ment and optimization of robust, device-agnostic mobile commerce sites. Although two-thirds of brands currently maintain a mobile site (the majority launched within the past year), only 67 percent of these sites are commerce- enabled. Furthermore, use of such marketing tactics as mobile- optimized search marketing, cross-platform mobile promotion, and mobile display advertising is scant. Mobile:End of the Beginning 1. Smartphone Shipments Surpass PCs for the First Time. Whats Next? Chloe Albanesius, PC Magazine, February 8, 2011. 2. IDC: Mobile Internet to Pass PCs by 2015, Mark Hachman, PC Magazine, September 12, 2011. 3. Mobile Commerce Forecast: 2011 to 2016, Sucharita Mulpuru, Forrester, June 17, 2011. 4. Shoppers Research Deals via Mobile and Online Ahead of 2011 Black Friday Sales, Miranda Miller, Search Engine Watch, November 28, 2011. 5. Tablets: Ultimate Buying Machines, Dana Mattioli, Wall Street Journal, September 28, 2011. 6. Why Millionaires Love Steve Jobs (and the iPad), Robert Frank, WSJ Blog: The Wealth Report, August 25, 2011. 4. L2 2012 L2ThinkTank.com 4 Want to know more about your brands Mobile IQ? CONTACT US Mobile IQ Scott Galloway Founder, L2 Clinical Professor of Marketing, NYU Stern Iconic, but Immobile While more than half the brands in the Index maintain both an app and a mobile site, 16 percent of brands have yet to produce either. Icons such as Herms, Patek Philippe, Bottega Veneta, and Marc Jacobs rely exclusively on their traditional site experience, which in some cases proves inaccessible on mobile devices. Mobile competence may be a crystal ball for a brands global prospects. Ground zero for growth in prestige exists in emerging markets among a burgeoning middle class who are increasingly turning to a small screen to learn about and ultimately purchase prestige brands products. Mobile IQ = Innovations Canary in the Coal Mine Our thesis is that competence in mobile is inextricably linked to shareholder value in the prestige industry. Key to managing and developing a competence is an actionable metric. This study attempts to quantify the mobile and tablet competence of Prestige 100 brands. Our aim is to provide a robust tool to diagnose strengths and weaknesses and help managers achieve greater return on incremental investment. Like the platforms we are assessing, our methodology is dynamic, and we hope you will reach out to us with comments that improve our investigation and findings. You can reach me at scott@stern.nyu.edu. Regards, 52% Both 70% Mobile App 66% Mobile- Optimized Site 16% Neither prestige 100 mobile investments (December 2011) 2010 2011 2012 2013 2014 2015 2016 3 6 10 14 19 25 31 BILLIONSOFDOLLARS mobile commerce sales FORECAST 20102016 United States (Source: Forrester, June 2011) cagr: 39% 5. L2 2012 L2ThinkTank.com 5 Want to know more about your brands Mobile IQ? CONTACT US Mobile IQ Methodology mobile sites: Mobile-Optimized Sites: Technology Navigation & Search Social Media Integration Customer Service Product Page Account & Check-Out Mobile Applications: Availability: iOS (iPad Differentiation) Android Blackberry Windows Phone Series 7 Symbian mobile marketing: Mobile SEO on Google & Bing Email: Mobile Compatibility & Cross-Promotion of Mobile Properties SMS: Sign-Up & Activity innovation & integration: Integration: Promotion of Mobile Efforts on Site, Facebook, and Twitter Geolocal: Presence & Activity on Foursquare Innovation: Mobile Ad Campaigns, QR Codes, Mobile Wallet Support, etc. 30% 15% 40% 15% Mobile IQ Classes IQ Range Class 140+ GENIUS Mobile competence is a point of differentiation. Brands pursue a device-agnostic app/site strategy, embrace m-commerce, and consciously integrate mobile across wider digital footprint. 110139 GIFTED Brands demonstrate high-quality, high-impact approach to mobile within a select dimension, sometimes at the expense of a wider mobile offering. 90109 AVERAGE Efforts are siloed and inconsistent. Mobile presence suggests explicit preference for site versus app strategy or is primarily concentrated in low-cost entry platforms (e.g., geolocal). 7089 CHALLENGED Limited mobile investment reflects low prioritization relative to other digital efforts.