The Future of Retail

TapSense # 1 Platform for Mobile Marketing

By Gregory Kennedy, VP of Marketing

The 19th Century Introduced Mass Production

And The Consumer Society Was Born

Retailers Quickly Embraced Marketing

The Industry Continued to Evolve

And Grow

Post WW2 The Car Changed How We Live

It Also Brought Destination Shopping Malls

Today Retail is a $15 Trillion Industry (26% of GDP)

It’s Something We All Experience

And Enjoy

Other Innovations Emerged in the 19th Century

The Telegraph Connected the World

Soon the Telephone Emerged

It Evolved As Well

It Evolved Significantly

The 20th Century Saw it’s Share of Innovation

Computing Transformed Everything

Now it’s All Converging Into One Device

“A whopping 56% of all of Fab’s revenue in the U.S. was via our mobile apps on Christmas in the U.S. — a new single day record.”

Jason Goldberg,CEO of Fab

“Mobile sales for Amazon.com Inc. will reach $4 billion in mobile sales in 2012.”

Internet Retailer ResearchThe Mobile 400

“eBay mobile finished [2012] with $13 billion in volume – more than double the prior.”

John Donahoe,CEO of Ebay

350 Million iPhones Shipped Globally

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q3 '10

Q4 '10

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

Q2 '12

Q3 '12

Q4 '12

Q1 '13

0.00

10.00

20.00

30.00

40.00

50.00

60.00

Source: Apple

120 Million iPads Shipped Globally

Source: Apple

Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '120

2

4

6

8

10

12

14

16

18

Source: NetMarketShare

Over 61% of Mobile Traffic is iOS

62%

22%

8%

2% 2%3%

Safari

Android Browser

Opera Mini

Chrome

Microsoft Internet Explorer

Other

0

100

200

300

400

500

600

700

800

Source: Google and Apple

Even With More Android Devices Shipped

750 Million

500 Million

Android iOS

In Q1 2013 81% of TapSense 2013Impressions Are From iOS

Source: TapSense

Q1 2012 Q1 2013

iOS; 61

Android; 49

iOS; 81

Android; 19

Why iOS is Great for Retailers

Affluent DemographiciPhone Avg annual household income $105,200 (Forrester)

Live in US80% of iPhones are sold in the US (Apple)

Active Shoppers88.3% of 2012 Black Friday tablet shopping from iPad (IBM)

Impulse Buying

Happy Hour

Ease of Use

From Ecommerce to Mcommerce

Push Notifications

Time of Day Based Promotions

Touchscreen Device Intuitive

The PC is Officially in DeclineSales Drop 14% in Q1 of 2013

Source: Needham and IDC

Nearly 1 million iPads to U.S. schools in the 3rd quarter 2012

iPad is The Ultimate Convergence Device

50% of inflight wifi traffic is from iPads (Gogo InFlight)

40% of mobile ecommerce website traffic is from iPads (Monetate)

Avg order value in ecommerce is higher on iPad than PC (Adobe)

The Tablet is the Future of All Retail

Even in Physical Stores

Which There Will be Less Off

Mall Investment at 35 Year Low, Vacancy Rates Near All Time High

Source: Reis and CalcualtedRiskBlog

Storefronts Will Transform

Digital to Physical

Mcommerce Everywhere for Everyone

Takeaways for Retailers

A Focus on Brand and Channel Creates Differentiation

Mobile to Physical Retail Innovation Big Opportunity

Provide Tools to Help Facilitate Peer to Peer Selling

Marketing Platform Implementation Key to Future Success