Source: Placecast Harris Poll: The Alert, Shopper II, July 2010

04/19/23 1Source: Placecast Harris Poll: The Alert, Shopper II, July 2010

It’s the economyFamilies with young children tend to have increased promotional usage most – digital usage as common as traditional. Base: Those who have done more of the following in the past year:

Mobile Marketing Q2 ReportMobile Couponing 2011

HAS CHILD IN HOUSEHOLD

TOTAL

HAS CHILD UNDER SIX

40%

40%

38%

33%

36%

36%

16%

36%

35%

33%

28%

28%

26%

12%

30%

28%

28%

24%

28%

21%

8%

Looked for promotion codes/discounts

when shopping onlineClipped and redeemed coupons from

an insert in a newspaperClipped and redeemed coupons that arrived at my home (via postal mail

or fliers)Redeemed promotional/discount offers received via email from a

retailerSubscribed to receive promotional/

discount offers via email froma retailer

Signed up to receive coupons online(i.e., from Groupon, DealOn)

Signed up to receive text alerts from retailers/merchants

04/19/23 2Based on survey data and projections. Source: Nielsen

Smartphones will be a majority in the U.S. by Q2 2012 Consumers are armed with in-store portable computers/potential coupon delivery devices. Projected smartphone penetration:

FEATURE PHONE

SMARTPHONE


Projected

34%

41%45%

50%55%

61%

69%66%

59%

50%45%

39%37%

28%25%

21%17%16%

10%

22%

14%13%

19%

31%

63%

72%

81%84%

87%90%

86%

75%

83%79% 78%

55%

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

04/19/23 3Note: Location based services here refers to using anything from GPS on a phone to weather and entertainment info that are plotted to location – not specifically a “check in” service. Source: Nielsen

Mobile media activities that relate to couponing have reached critical mass: SMS/MMS, email, apps, LBS


U.S. mobile media usage (past 30 days), Q4 2010; Yellow boxes note number of users for each activity.

66%

39%36%

31%

23% 22%18%20%

14%8%

15%

7%

61%

80%

62%

40%

50%

60%

32%

77%

86%

TextMessaging/SMS

Picture Messaging Mobile Internet Email App Downloads Text Alerts Location-BasedServices

FEATURE PHONE OWNERS

SMARTPHONE OWNERS

ALL SUBSCRIBERS

152.3 M 90.8 M 83.2 M 71.8 M 52.4 M 50.0 M 42.3 M

04/19/23 4

Smartphone owners are using apps for shopping and couponingApplications used on smartphones while shopping*:


*Base: those who have used a smartphone app/web browser while shopping. Q: Which of the following smartphone apps have you used in store when deciding to make a purchase or comparing products/services? Check all that apply.

Source: Chadwick Martin Bailey, Consumer Pulse, March 2011

44%

38%

31%

26%

22%

13%

Scanner apps (i.e., Scan & Shop, Red Laser, Barcode Scanner)

Discount apps (i.e., Groupon, LivingSocial)

Expert/customer reviews apps (i.e., Consumer Reports)

Store-branded apps

Product comparison apps

Geo-location apps (i.e., Foursquare, Shopkick, GeoPlum)

04/19/23 5Source: comScore Survey, January 2011

Nearly half of smartphone owners are finding store locations while 30% access Daily Deal apps Q: For which of the following have you used your smartphone? Percent of smartphone owners:


44%

40%

30%

30%

30%

28%

26%

21%

11%

4%

49%

46%

Finding nearby stores

Comparing prices before shopping for an item

Researching product detailsComparing prices while shopping for

an item in person at a store

Accessing deal of the day apps

Searching for product reviews/recommendations from a website

Mobile barcode scanning to compare prices

Purchasing an item online

Searching for product reviews/recommendations

via a social networking site or appSharing product recommendations via email

Sharing product recommendations via a social networking site or app

None of the above

29% of ‘deal of the day’ app users use their phones to access deals every day

70% of these consumers compare prices at least a couple times a month

04/19/23 6Source: Babycenter 21st Century Mobile Mom Report, March 2011

Mobile moms love those coupons…along with Groupon and retailer apps…she’s even barcode scanning in her spare timeTypes of apps used by moms when shopping with a smartphone:


52%

49%

42%

39%

37%

34%

22%

10%

Retailer apps (Walmart, Amazon, etc.)

Deal sites (Groupon, etc.)

Barcode scanners

Product reviews

Coupon apps

Price comparison

Location-based application for deals nearby

Photo recognition of products

Of those that shop with their smartphones, 37% are using coupon apps

04/19/23 7Source: Insight Express Digital Consumer Portrait, Q1 2011

Mobile users are starting to use mobile couponsNotice the increase in activity among smartphone users. Q: Which of these have you ever done?


Total Regular Phone Smartphone

Number of respondents 958 597 400

Shown an email coupon to a clerk using your mobile phone

12.0% 5.0% 26.0%

Used a coupon you received in a text message 14.0% 6.0% 28.0%

Used a coupon you found in a mobile application 11.0% 3.0% 23.0%

Put your store cards (loyalty or shopper cards) on your mobile phone so you don’t have to carry them

8.0% 3.0% 18.0%

Used an app that gave you loyalty points or rewards based on you entering or checking into retail locations

9.0% 3.0% 20.0%

Downloaded a coupon to print later 13.0% 6.0% 26.0%

Downloaded coupon to store loyalty card 8.0% 4.0% 15.0%

None of the above 72.0% 87.0% 47.0%

04/19/23 8*Including gym services and/or nutritional supplements. Source: Placecast: The Alert Shopper II, Harris Poll, July 2010

For text-alert marketing, grocery coupons garner the most interestRestaurant chain promotions and entertainment are also highly sought by consumers. Base: Those at least somewhat interested in text alert marketing:


68%

64%

58%

50%

42%

37%

35%

33%

24%

22%

21%

21%

16%

15%

5%

3%

Grocery coupons and promotions

National restaurant chain promotions and offers

Entertainment products and availability

Fast food menu items and promotions

Electronics product offers and promotions

Coffee and beverage promotions

Travel services, special rates and amenities

Beauty and fashion

Health-related offers*

Sporting goods and equipment

Bar or nightclub offers and promotions

Convenience store products

Home furnishings

Infant and child-related products/services/events

Other

None

04/19/23 9Source: Insight Express Digital Consumer Portrait, Q1 2011

Text messaging is the preferred mode of receiving coupons on mobileBoth regular mobile users and smartphone users cite text messaging as a top preference, tied with using an app to find deals on their own. Q: How would you like to receive coupons on your mobile phone?

Total Regular Phone Smartphone

Number of respondents 958 597 400

Have them sent to me via text message 25.0% 17.0% 38.0%

Get them via email on my phone 18.0% 9.0% 34.0%

Text in to receive them when I’m in a store

17.0% 9.0% 30.0%

Find them myself using an application 13.0% 7.0% 25.0%

Get them in exchange for checking-in to various locations

8.0% 4.0% 15.0%


04/19/23 10Source: Cellfire/Market Dynamics survey of Cellfire users, February 2011

Cellfire mobile users are incremental couponersQ: How often do you use regular “paper” coupons (e.g. from the mail, newspaper, printable)?

26%

28%

30%

14%

3%

53%

28%

13%

5%

1%

5-Always

4-Usually

3-Sometimes

2-Rarely

1-Not at all

TRADITIONAL MEMBERS

MOBILE APP MEMBERS


04/19/23 11Source: Cellfire/Market Dynamics survey of Cellfire users, February 2011; No users ranked any responses as ‘1’

Cellfire mobile users cite convenience and environmental friendliness as top factors for usageQ: Compared to other grocery coupons (e.g., from the mail, newspaper, printable, etc.), how would you rate Cellfire coupons on the following factors from 1-5, with 5 being the highest*?

85%

78%

77%

72%

40%

32%

29%

20%

11%

17%

18%

15%

36%

25%

28%

4%

4%

6%

8%

36%

26%

31%

27%

18%

3%

6%

10%

18%

Friendly to the environment

Convenience

Ease of use

Time at checkout

Other

Savings

Trial of new brands

Selection of grocery offers

5-HIGHEST 4 3 2


04/19/23 12Source: NCH Marketing Services

NCH: 2010 volume of coupons hits high of 332B(Total U.S. CPG coupon distribution volume, in billions/all media)

279 285 281

311332

2006 2007 2008 2009 2010

+0.4% +2.2% -1.4%+10.7%

+6.8%+9.8%


04/19/23 13Source: Kantar Media

There’s a lot at stake in the growing traditional couponing market: $451B in FSI dollars to drop 291B couponsFree Standing Insert Couponing by the numbers:

Measure 20102010 vs. 2009

% Change

Dollars circulated $451 billion 17.1%

Coupons dropped $291 billion 7.2%

Pages distributed $212 billion 4.5%

Face value (average) $1.55 9.2%


04/19/23 14

The Digital Coupon Ecosystem: Now add mobile complexity


http://www.prologicredemption.com/index.html

http://www.kroger.com/

04/19/23 15Source: Pew September 2010

For marketers looking to deploy coupons through LBS there are some reach challenges. When will they get to the crucial 40M user mark?% of U.S. population


4% Use LBS

24% use apps

35% have apps

71% use SMS

82% use cell phones Company Downloads

(Global)80/20 Rule (Active Users)

Foursquare 7,500,000 1,5000,000

Loopt 4,000,000 800,000

Booyah My Town

4,000,000 800,000

Waze 2,300,000 440,000

SCVGR 1,000,000 200,000

Gowalla 750,000 150,000

Source: Company reports as of 4/11;*Estimate based on typical active user base of any web-based media

Source: Placecast Harris Poll: The Alert, Shopper II, July 2010

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Transcript of Source: Placecast Harris Poll: The Alert, Shopper II, July 2010