CONFIDENTIAL

Mobile now, first and only

September 2012

CONFIDENTIAL

64% of consumers would give up TV before their smartphone

2

© 2012

80% will not leave home without their smartphone

People LOVE and NEED their phones

CONFIDENTIAL

Greater access to mobile phones than safe drinking water

3

© 2010

CONFIDENTIAL

4.3 hours

TV

2.5 hours

Internet

44 minutes

Newspaper/Magazine

>1 hour (30% increase from last year)

Mobile Device

Time spent on mobile versus other activities

4

© 2012

5.00

4.50

4.00

3.50

3.00

2.50

2.00

1.50

1.00

.50

0

Hou

rs

Time spent per day

CONFIDENTIAL

5

© 2012

Mobile cannibalizes PC’s & Internet

1B PC’s 6.0B

mobile devices

Source: IDC 2012, Mary Meeker Global Internet Report 2012

3.0

2.5

2.0

1.5

1.0

0.5

0

Use

rs in

bill

ions

37% growth

8% growth

Mobile growth outpacing internet

1.1B 3G Mobile Subs

1.5B Internet Users

CONFIDENTIAL

Mobile is a marketer’s goldmine

� Always on, always connected

� Advanced computing

� Deep personal relationship

6

© 2012

� Data, data, data! � Unprecedented engagement

CONFIDENTIAL

Mobile advertising spend lags time spent

7

© 2012

Magazines

Share of Average Time Spent per Day with Select Media by Adults vs. US ad Spending Share, 2011

Time spent share Ad spending share 50

45

40

35

30

25

20

15

10

5

0

% o

f spe

nd

Newspapers Mobile Radio Internet* TV

Note: *time spent with the internet excludes internet access via mobile, but online ad spending includes mobile internet ad spending; due to this, the total of the ad spending shares for all the media adds up to more than 100%

Source: eMarketer, Dec 2011

CONFIDENTIAL

50% of Facebook activity is on mobile and 45% of tweets are from mobile devices

30% visit a business based on mobile search or reviews

Mobile pervades all elements of life

8

Web email 34% Mobile email 32%

Source: Pew Internet Research, Comscore, Nielsen

© 2012

65% use phone for turn by turn directions

Voice 41% coordinate get togethers & meetings

77 minutes/day on smartphone apps

52% smartphone owners use device while watching TV

CONFIDENTIAL

Elements of a mobile first

9

© 2012

User Interface: •  Simplify •  Prioritize •  Delight with new ways to

interact: touch, swipe, speak, shake

User experience: •  Leverage hardware: camera,

GPS, sensors •  Multi-facet engagement:

•  Work and play •  Content and commerce •  Travel and at home

CONFIDENTIAL

Thirst

10

© 2012

CONFIDENTIAL

Mobile approaches

11

© 2012

•  Deep brand identity •  Control •  Full phone features

•  Expensive •  Long lead time •  Limited distribution •  Siloed data

•  Network effects •  Collective data •  Native app benefits

•  Developer management •  Continuous discovery •  Less control

•  Lightweight •  Easy to deploy •  Cheaper than native

•  Feature tradeoffs

CONFIDENTIAL

Distributed mobile strategy

© 2012

12

CONFIDENTIAL

Leverage growth and engagement

13

© 2012

Growth +

Engagement

CONFIDENTIAL

Brands engage through the product

14

© 2012

Targeting through: Age Gender Location Interests

CONFIDENTIAL

Integrated marketing driving retail and commerce

15

© 2012

CONFIDENTIAL

What are brands doing

16

© 2012

Physical presence H

ome

base

d

Deep Engagement

Opportunistic

CONFIDENTIAL

Where brands are spending time

17

© 2012

Identify •  Demo days •  Agency programs •  Task forces

Experiment •  Hackathons •  Incubators and

labs •  Pitch days

Integrate •  Test budget •  Investment /

acquisition •  Co-marketing •  API generation

CONFIDENTIAL

Embrace the Silicon Valley ethos

� Shorter timelines

� Test, explore, learn

� Take risks

18

© 2012

CONFIDENTIAL

19

© 2012

CONFIDENTIAL

Thank you!

20

© 2012

Cheryl Cheng

ccheng@brv.com