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Mobile – November Update

Monthly Traffic

As expected, we have seen a considerable increase in mobile traffic in the run up to Christmas. A staggering 16.29% of all network traffic came through

mobile (including tablets). This is up from 13.25 last month and 6.82% for the same period last year.

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% Traffic Through Mobile Devices

2011 2012

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Monthly Traffic – Handsets Only

The data above looks at everything we classify as a mobile device, so includes all traffic through tablet devices. To get a true indication of mobile

handsets, the data below has stripped out traffic through tablet devices. We also saw a considerable rise in traffic through mobile handsets as it hit

9.45% (up from 7.76% in October). With the considerable growth in consumers accessing the internet through mobile handsets, it is increasingly vital to

add affiliate tracking to mobile optimised sites.

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2011 2012

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Device breakdown – past 4 weeks

Traffic through the iPhone remained steady across the last 4 week period. It experienced a peak of 33.34% of traffic in week 46 while the low was

32.46% in week 48. The iPad hit a peak of 43.48% in week 48. Android experienced a slight drop off in its share of traffic while Blackberry fluctuated

between 1.48% and 1.62% over the 4 week period.

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Clicks

iPhone iPad Android BlackBerry Other

WeekNum iPhone iPad Android BlackBerry Other

45 32.88% 41.32% 19.76% 1.48% 4.56%

46 33.34% 41.07% 19.41% 1.57% 4.60%

47 33.12% 42.26% 18.27% 1.47% 4.88%

48 32.46% 43.48% 18.29% 1.62% 4.15%

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Sales

Sales through mobile devices continued to grow. With the significant increase in the share of traffic through mobile devices, sales also peaked –

exceeding 12% for the first time (12.30%).

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% Sales through mobile devices

2011 2012

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Monthly Sales – Handsets Only

Again it is possible to break the share of sales down mobile handsets only. This grew from 4.14% in October to 4.64% in November. With consumers

expected to turn to mobile devices as we get closer to Christmas, we could realistically anticipate sales through mobile handsets to reach 5% in

December.

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2011 2012

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Device breakdown – past 4 weeks

Again it is possible to look at the breakdown by device to see where our mobile sales are coming from. The iPad has continued to dominate and we have

seen the share of sales through the iPad remain consistent between 61.5% and 63%.

The share of iPhone sales has been relatively steady between 19.5% and 20.5% while Android has dropped slightly week on week – from a high of 13.04%

in week 45 to a low of 12.20% in week 48.

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Sales

iPhone iPad Android BlackBerry Other

WeekNum iPhone iPad Android BlackBerry Other

45 20.45% 61.48% 13.04% 3.25% 1.78%

46 19.67% 62.43% 12.47% 3.87% 1.56%

47 19.64% 62.84% 12.23% 3.72% 1.57%

48 20.14% 62.44% 12.20% 3.64% 1.59%

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Device breakdown year to date

The weekly device breakdown above also reflects what we have seen year to date in terms of the split of sales by device. The iPad continues to

dominate with the iPhone being the most popular handset for transactions. This month has seen the iPhone drop by 1% at the expense of the iPad.

Android has remained steady at 12% and we are continuing to see month on month growth from Android devices. Android growth is examined in more

detail later in this document.

YTD

iPhone iPad Android BlackBerry Other

The percentage of mobile device sales generated by particular devices. 24% 59% 12% 3% 2%

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Conversion Rates

As with traffic and sales, conversion rates through mobile devices experienced a significant improvement – as we predicted last month. Mobile devices

converted at 3.89%, up on October’s conversion rate of 3.20% and eclipsing last year’s December peak of 3.68%.

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Mobile conversion rate

2011 2012

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Conversion rate by device

As well as looking at the conversion rate through mobile devices as a whole, it can also be broken down by device in order to split out tablet traffic and

compare each device against what we have seen for desktop. The chart below looks at the conversion rate by device for the year so far.

Each of the devices monitored again saw an increase in conversion rate with the largest increase seen by Blackberry once again. Blackberry is now

converting at an incredibly impressive 9.16% although it is important to note that this is from a significantly lower volume of traffic.

Android and iPhone conversion continue at a similar rate although Android devices have shown a slightly greater increase this month.

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Conversion rate by device

iPhone iPad Android BlackBerry Other Non Mobile

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iPhone vs. Android

We have also been monitoring the growth rates of Android vs. iPhone throughout the year. The chart below has traffic and sales through Android devices

as a percentage of all traffic/sales driven by these two devices. Android experienced a slight decrease in terms of traffic vs. the iPhone dropping to

36.37% (from 37.65% in October). Android did see a slight increase in terms of sales though from last month 38.47% vs. 38.09%.

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Growth of Android vs iPhone

Clicks Sales

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It is also possible to look at the monthly increases in traffic and sales for each of the devices to see how their growth rates compare. The chart below

looks at traffic. From July through to September traffic through Android devices grew at a much greater pace than the iPhone. Although it must be

pointed out that this is from a lower volume of clicks so the increase in percentage is greater.

Both the iPhone and Android experienced month on month growth in terms of traffic in November, with the iPhone growing at a greater rate.

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Month on Month Growth - Clicks

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In terms of sales, both device types also saw a month on month increase. Android grew at a faster rate though with 40.43% growth on October’s sales

figures, while the iPhone grew at 38.14%.

This data again backs up how important the growth of Android will be for m-commerce. With upgrade options typically Android devices, more and more

consumers will be accessing the internet through these devices. It is important that advertisers also optimise for Android rather than simply focussing on

Apple devices.

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Month on Month Growth - Sales

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Mobile Reporting in Interface

While we have been monitoring mobile performance internally for the past 18 months, mobile reporting is now available within the interface. This

allows advertisers and affiliates to monitor the device that their sales are originating from. Mobile data can be found in the following reports:

* Advertiser: Validate Pending Commissions

* Advertiser: Archived Commissions

* Publisher: Transactions

The data can be viewed on screen or exported via .csv or .xml downloads. With this intriguing information now available to all, the true impact of

mobile on your campaigns can be seen for the first time.

Please refer to our mobile tracking guide for instructions on how to manipulate this data for analysis purposes.

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Advertisers with mobile tracking

With such a significant amount of traffic coming through mobile devices, it is essential that advertisers are tracking these sales.

The primary focus for us to date within the mobile arena has been to ensure our advertisers are tracking through mobile devices. With the vast amount of traffic that is now coming through mobile handsets it is essential this is tracked. We have put a number of checks in place to protect affiliates against the loss of commission for mobile sales and we will soon be rolling out additional controls to ensure this loss is minimised.

Looking at the detail, it’s important to understand how mobile sales track essentially in three ways:

- Optimised mobile site complete with affiliate tracking - Optimised mobile site running off and tracking through the same domain - No optimised mobile site, so sales track through a standard desktop site

16 of our top 20 revenue drivers for the network are tracking sales through mobile devices in one of these ways and we are working closely with the remaining advertisers in this group to ensure they are tracking through mobile devices.

Of the advertisers that do have a mobile optimised site, almost half of them are tracking sales through mobile handsets. Considering that a large proportion of our advertiser base does not have a mobile optimised site, we estimate that 85% of our advertisers are tracking sales through a mobile device and the majority of the largest revenue drivers for the network are included in this.

In November, across the network we tracked over 11,000 mobile transactions a day.

Mobile commerce continues to be a major priority for us as we focus on ensuring that our advertisers are tracking through mobile devices – be this through adding affiliate tracking to their optimised mobile site, or directing mobile traffic to their desktop site where a mobile version of the site or affiliate tracking is not available.

Our aim is to provide as much visibility as possible as to which of our advertisers are tracking through mobile devices. Currently we highlight every advertiser that has an optimised site complete with tracking. This will be expanded to highlight every advertiser that is tracking through mobile -whether this is through a mobile optimised site complete with full tracking, a mobile site that sits within the same domain as the desktop site, or where only a desktop version of the site is available.

By providing this information, affiliates will be able to exclude any advertiser that is not tracking through mobile from their sites/apps. With affiliates holding a significant amount of control over their traffic, advertisers not tracking mobile sales will suffer and this will hopefully create a sense of urgency for them to ensure they are tracking mobile sales.

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While we wait for this functionality to be displayed within the interface, you can find a full version of this list here. We will aim to update this list on a monthly basis.

If you are an advertiser that is tracking through mobile but not included on this list, please contact strategy@affiliatewindow.com