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1 JAMES LODGE DIRECTOR OF MOBILE Clear thinking in a complex mobile world

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2 MOBILE IS IN OUR DNA. IT’S A BEHAVIOUR NOT A TECHNOLOGY

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WE LIVE IN AN INCREASINGLY MOBILE WORLD 3 BY 2017 THE AVERAGE UK CONSUMER WILL SPEND MORE ON THEIR MOBILE THAN WATCHING TV 2017 3.12HRS VS 3.06HRS Source eMarketer

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4 72% OF SMARTPHONE USERS HAVE USED THEIR SMARTPHONE TO GATHER INFORMATION FOR THE PURCHASE OF A PRODUCT OR SERVICE

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Source: Hitwise 5 CONSIDER MOBILE THE MOST IMPORTANT RESEARCH TOOL (UP FROM 19% IN 2013) PREFER TO BUY IN- STORE FOLLOWING RESEARCH ON MOBILE WHO RESEARCH ON MOBILE BUY FROM MOBILE AND THIS BEHAVIOUR IMPACTS OTHER ONLINE AND OFFLINE PROPERTIES 39% 36% 35%

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Source: Hitwise 6 OF SEARCHES FOR ‘SALE’ COME FROM A MOBILE DEVICE OF SEARCHES FOR ‘VOUCHER’ COME FROM A MOBILE DEVICE OF ONLINE SEARCHES FOR RETURNS POLICY TAKE PLACE ON A MOBILE DEVICE LEADING TO PRICE CHECKS | ADDED VALUE SERVICES 77% 66% 71%

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RATINGS MATTER MORE THAN EVER 86% OF ONLINE SEARCHES THAT FOCUS ON REVIEWS, BEGIN ON A MOBILE DEVICE Google 7

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Source: xAd 8 56% OF CONSUMERS MAKE PURCHASING DECISIONS IMMEDIATELY OR WITHIN AN HOUR OF RESEARCHING ON MOBILE

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MAPPING MICRO SHOPPING MOMENTS OVER A 1 MONTH PERIOD 9 72% MOBILE 11% DESKTOP 24 Google searches 10 YouTube video views 359 Brand retailer interactions 87 Mass online retailer interactions 399 Coupon and deal site interactions

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10 BUT WHICH IS OUR DOMINANT PLATFORM? BROWSERS OR APP? IT DEPENDS HOW YOU MEASURE IT… Flurry 2014: Share of US time spent using mobile internet TIME SPENT 86% Apps 14% Browser Morgan Stanley: Unique Users 2015 (US) TIME SPENT 40% Gaming & Ents 14% Browser Flurry 2014: Share of US time spent using mobile internet COMMERCE 6% Apps 66% Browsers 28% Social 18% Other 28% Apps & Browsers Browsers Apps

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11 THE DEMISE OF THE WEB IS GROSSLY EXAGGERATED Morgan Stanley: Unique Users 2015 (US) UNIQUE USERS 32% Apps 68% Browser Browser contribution to growth Apps contribution to growth 95% 23% 4% 96% 89% 11% 5% 77% % of the top 50; Morgan Stanley: Unique Users 2015 (US) TRAVEL Contribution to traffic growth FINANCE TOTAL RETAIL

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Source: Hitwise 12 PROXIMITY | REVIEWS | PRICE OFFER | LOCATION | STOCK REVIEWS | SUITABILITY | PRICE SO HAVE WE BEEN MEASURING MOBILE WRONG THIS WHOLE TIME? STOPWATCH SHOPPING WISHLIST SHOPPING 77% 66% 71%

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AND HOW DOES OUR CREATIVE AND MESSAGING ALIGN TO CONSUMER BEHAVIOUR 13

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14 LEADING RETAILERS ARE DISTANCING EMOTIONAL CONNECTIONS FROM A TRANSACTION

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15 SOME ARE CHOOSING TO BYPASS APPLICATIONS ALTOGETHER… … LOOKING AHEAD TO CHAT-BOTS

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16 THE AVERAGE PERSON SPENDS 80% OF THEIR TIME ON MOBILE USING JUST THREE APPS AND OF THOSE THREE… …THEIR PREFERRED MESSAGING APP RANKS AMONG THEM.

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17 CHATBOTS ARE CURRENTLY UNDERGOING EXPLORATORY INVESTIGATION IN RETAIL AND TRAVEL BUSINESS TRAILING BOTS | SEPHORA | H&M | KLM | MACYS | TESCO

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18 PHOTO PLATFORMS DELIVER STRONG FASHION CONVERSION 1:3 INSTAGRAM USERS HAVE BOUGHT A FASHION ITEM THEY HAVE DISCOVERED ON THE PHOTO-SHARING PLATFORM

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WHILST DISRUPTIVE START-UPS ARE LAYERING IN RICH EXPERIENCES AND PERSONALISATION 19

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20 ACTIVELY PLANNING FOR MOBILE

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AQUIRE NEW CUSTOMERS USING DATA INFORMED TARGETING AND LOCATION BASED AUDIENCE IDENTIFICATION STRATEGY + MEDIA + ANALYTICS INSIGHT Music Magpie is the UK’s leading media selling platform heavily relying on their smartphone application to facilitate quick and easy scanning of items for consumer to exchange for cash. SOLUTION 1)  We introduced an MMP to enable to granular tracking of our media spend. 2)  We create a MVT plan against creative assets to establish commonality across vendors and copy. 3)  Proposed the adoption of UI navigation tracking SDK’s in order to improve user experience and conversion. 21 83% Reduction in cost per sale 61% Reduction in CPI 198% ROI

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22 SOME TAKE AWAY THOUGHTS… HOW DOES YOUR MOBILE INVENTORY PERFORM WHAT MESSAGE, MEASUREMENT AND CREATIVE PERFORMS DO YOU USE? AND HOW ARE THESE COMPLIMENTING DNA BEHAVIOUR WHAT TEST AND LEARN STRATEGIES ARE IN PLACE TO ESTABLISH YOUR USAGE AND MEASUREMENT OF MOBILE WHAT PLATFORMS SHOULD I BE CONSIDERING NOW AND IN FUTURE TO LEVERAGE CONSUMER BEHAVIOUR

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23 THANK YOU