mobile and the path to purchase

For info about the proprietary technology used in comScore products, refer to http://comscore.com/About_comScore/Patents

Mobile and the Path to Purchase

Gian Fulgoni, Co-Founder & Chairman

comScore, Inc.

April 29, 2014

© comScore, Inc. Proprietary. 2

The Digital Omnivore

Mobile Search & Local Content

Consumers’ Path to Purchase

Key Takeaways

Topics for Today


PERSON-Centric Panel with

WEBSITE-Census Measurement

2 Million Person Panel

360°View of Person Behavior

Data sourced from comScore’s global panel of 2 million

Internet users

Web Visiting &

Search Behavior

Online Advertising Exposure

Demographics, Lifestyles & Attitudes

Media & Video Consumption

Transactions

Online & Offline

Buying

Mobile Internet Usage & Behavior

PANEL

Plus 5 Million TV Set Top Boxes for 3-Screen Measurement

CENSUS

Unified Digital Measurement™ (UDM)

Patent-Pending Methodology

1 Million Domains Participating Adopted by 90% of Top 100 U.S. Media Properties

PANEL

© comScore, Inc. Proprietary. © comScore, Inc. Proprietary. 4

Emergence of the Digital Omnivore


The Brave New Digital World: Adoption of Smartphones &

Tablets has dramatically changed the digital media landscape

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Nu

mb

er

of

Devic

e O

wn

ers

Number of U.S. Device Owners (Smartphone and Tablet)

163 MILLION

+22%

vs. YA

87 MILLION

+51%

vs. YA

Source: comScore MobiLens/TabLens 3 month average ending February


Millennials have a substantially higher rate of smartphone

penetration than their older counterparts

U.S. Smartphone Penetration of Mobile Phones Within Age Group

comScore MobiLens, U.S., Age 18+, 3 Month Average Ending Nov-2013

81%

68%

40%

Age 18-34

Age 35-54

Age 55+


47%

42%

12%

Desktop

Smartphone

Tablet

The Post-Desktop era begins: More than half of all digital

media time now occurs on mobile platforms

Source: comScore Media Metrix Multi-Platform, December 2013


Millennials are heavier internet users across all devices and spend a full day of

every week online. Mobile engagement outpaces desktop in all age groups

Average Monthly Time Spent in Hours per User by Platform

comScore Media Metrix Multi-Platform, U.S., Age 18+, Nov-2013

96.0

87.0

58.9

49.1 43.6

35.2

65.9 57.2

42.9

Age 18-34 Age 35-54 Age 55+

Total Digital

Desktop

Mobile


Total digital media consumption has nearly doubled in the past three

years, led by massive growth in smartphone engagement

Source: comScore Media Metrix Multi-Platform, June 2013

Note: Jun-2010 Mobile is estimated based on earliest observed comScore smartphone engagement

data calibrated by number of smartphone users at that time

Total U.S. Internet Usage in Minutes (Billions) by Platform Desktop, Smartphone and Tablet

405 419

83

381

106

June 2010 June 2013

906

487

+4%

+86%

+359%

N/A


4,929 +530%

Engagement with Coupon sites has seen tremendous

growth across all platforms, including desktop

* Note: Feb-2010 Mobile is estimated based on earliest observed comScore smartphone engagement data calibrated by

number of smartphone users at that time

U.S. Coupon Site Usage in Minutes (MM) by Platform: Desktop, Smartphone and Tablet

Source: comScore Media Metrix Multi-Platform, U.S., February 2013

43

782

+385%

172

610

2,962

683

Feb-2010 Feb-2013

N/A

+645% 1,284


Desktop consumption of Weather content has declined markedly, but

because of extensive phone use, overall engagement from digital platforms

has increased modestly

Time Spent on Weather Sites

(Millions of Minutes) Source: comScore Media Metrix & Mobile Metrix, US

43

Feb-2010 Feb-2013

4,169

3,641

-46%

+15%

+385%

3,214

427

1,723

2,073

373 N/A


Maps have benefitted massively from phone usage but

desktop use has declined

Time Spent on Map Sites

(Millions of Minutes) Source: comScore Media Metrix & Mobile Metrix, US

43

5,811

2,303

-13%

+152%

+386%

1,406

897

1,217

4,355

239

Feb-2010 Feb-2013

N/A


The digital population now spends slightly more time engaging with

retail sites on their smartphone than on their desktop

Total Minutes (MM) Spent in Retail Category by Platform Source: comScore Media Metrix and Mobile Metrix, U.S., Feb-2013 – Dec-2013

0

5,000

10,000

15,000

20,000

25,000

30,000To

tal M

inu

tes (

MM

)

Desktop Smartphone Tablet

49% 40%

37% 43%

14% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Feb-2013 Dec-2013

Desktop

Smartphone

Tablet


37%

31%

74%

50%

100%

92%

99%

90%

61%

98%

63%

69%

26%

50%

0%

8%

1%

14%

39%

2%

Browser App

40%

44%

48%

45%

61%

49%

56%

59%

53%

51%

31%

26%

20%

15%

18%

14%

13%

9%

12%

10%

29%

30%

32%

40%

20%

37%

30%

31%

34%

38%

Amazon

eBay

Walmart

Target

Craigslist

BestBuy

Macy's

Sears

Etsy

Home Depot

PC only PC + Mobile Mobile Only

88M

145M

74M

63M

50M

47M

28M

25M

24M

22M

Mobile is a fundamental part of Online Retail; mobile apps

generally much more popular for pure-plays

Mobile = Smartphone + Tablet

Entities represent the online branded domain and mobile app for each retailer

Select Online Marketplaces: Total U.S. Digital Population

Unique Visitors (Millions) by Platform Source: comScore Media Metrix Multi-Platform, U.S., December 2013

% of Mobile Time Spent – Browser vs. App Source: comScore Mobile Metrix, U.S., Dec-2013


Mobile obviously stands out on navigation-based searches; apps

generally much more popular for on-the-go type searches

39%

52%

40%

64%

46%

61%

50%

43%

18%

15%

16%

13%

10%

18%

13%

8%

43%

33%

44%

23%

44%

20%

37%

48%

Google Maps

Yahoo Answers

YELP.COM

WEATHER

YP

CRAIGS

ZILLOW

Fandango

PC only PC + Mobile Mobile Only

93M

87M

63M

59M

54M

50M

32M

26M

Mobile = Smartphone + Tablet

Entities represent the online branded domain and mobile app for each retailer

1%

100%

27%

14%

56%

100%

42%

19%

99%

73%

86%

44%

58%

81%

Browser App

Select Local Sites: Total U.S. Digital Population

Unique Visitors (Millions) by Platform Source: comScore Media Metrix Multi-Platform, U.S., December 2013

% of Mobile Time Spent – Browser vs. App Source: comScore Mobile Metrix, U.S., Dec-2013


Mobile Search & Local Content


Each device has a skew in category of local search. 80% of phone used for

Restaurants, Shops and Services. Businesses need to consider what device

appeals to their audience when marketing.

Source: comScore custom research - 15miles/Neustar Localeze Local Search Usage Study

From what device did you do your last online local business information search?

Category of Local Search by Platform Percent of Device Users

24% 30% 28%

23%

28% 33%

21%

21% 11%

11%

4% 15%

13% 5% 5%

4% 8% 4%

3% 4% 4%

PC/Laptop Mobile phone Tablet

Restaurants

Shops

Services

Health / Fitness

Entertainment Travel Financial


Compared to other devices, mobile phones have the highest conversion rate.

Nearly 80% of mobile phone searches end in a purchase.

Source: comScore 15Miles Neustar // Localeze 7th annual Local Search Study

Did you make a purchase from the local business?

59%

78% 77%

61%

78%

64%

PC/Laptop MobilePhone

Tablet

2012

2013

% of Searches that Resulted in a Purchase Source: comScore custom research - 15miles/Neustar /Localeze Local Search Usage Study


70% 73% 65%

17% 16%

15%

13% 11% 20%

PC/Laptop Mobile Phone Tablet

Purchased in store Called to make purchase Purchase online

Nearly 3 out of every 4 mobile phone searches that end in a purchase bring

customers into brick-and-mortar stores.

Location of Purchase Source: comScore custom research - 15miles/Neustar /Localeze Local Search Usage Study

Source: comScore Local Search Usage Study

Did you make a purchase from the local business?

Online

Called to

make purchase

In Store


60%

49% 48%

42%

33%

65%

34% 30%

16% 22%

25%

38% 39%

31% 25% 25%

35%

Need information on the go It's easy Can find information quickly Can find more completeinformation

More opportunities to findthe information on this

device

Device is inexpensive

PC/Laptop Mobile Phone Tablet

Mobile phone and tablet search is driven by a need for information on the go.

PC/Laptops are used for quick, easy, complete information.

Source: comScore custom research - 15miles/Neustar Localeze Local Search Usage Study

From what device did you do your last online local business information search?

Reasons for Using Device for Local Search

(Percent of those who use each device)

* Local Content defined as Business Directories, Classifieds, Maps, Movie Information, Real Estate Listings, Restaurant Info, Traffic, and/or Weather category access

© comScore, Inc. Proprietary. 21 Access methods include Browser, Application and SMS

Source: comScore MobiLens U.S, December 2010 - 2013

Local Content Access on Mobile Phones

(Millions of People)

61.4 69.8

20.1

104.0

52.6 45.5

29.0

Any Access Method

85.7

74.5

16.0 13.7 10.5

Browser

50.7 44.2

31.5

Application SMS

54.4

+92%

+95%

+140%

+98%

Dec-13

Dec-12

Dec-11

Dec-10

Access to local content on mobile phones has grown

significantly, with apps seeing the greatest increase.

*Local content defined as searching for information on maps, movies, business directories or restaurants.

© comScore, Inc. Proprietary. 22 Access methods include Browser, Application and SMS

Source: comScore MobiLens U.S, December 2012 - 2013

Every subset of local content saw strong growth over the last year, as

more mobile phone users consumed more types of content.

Mobile Audience Size and Growth

Local Content Categories

(Millions)

+34% +23%

+21%

+38% +25%

+29% +24%

+22%

Real Estate

26 19

+24%

135

Job Listings

30 25

Business

Directories

34 28

Traffic

43

31

Classifieds

44

35

Restaurant

Info.

52

40

Movie Info.

54

44

Maps

89

72

Weather

118

96

Total Local

Content

113

+20%

Dec-13 Dec-12

Au

die

nce

(M

M)

People are using a wider

variety of Local Content,

with subcategory growth

outpacing the total segment.

* Local Content defined as Business Directories, Classifieds, Maps, Movie Information, Real Estate Listings, Restaurant Info, Traffic, and/or Weather category access


Heavy local content users on mobile skew male, more affluent (48%

report income of $75+), and younger (42% aged 18-34).

Access methods include Browser, Application and SMS

Source: comScore MobiLens U.S, December

49% 54%

51% 46%

Total Mobile Heavy LocalSearchers

Females

Males

7% 5%

13% 17%

17%

25%

17%

21% 18%

16% 15%

10% 15%

6%


65+

55-64

45-54

35-44

25-34

18-24

13-17

17% 13%

22%

20%

20%

20%

14%

16%

27% 32%


$100k+

$75k to <$100k

$50k to <$75k

$25k to <$50k

<$25k

*Heavy user defined as mobile user who reported accessing content “almost every day”

** Local Content defined as Business Directories, Classifieds, Maps, Real Estate Listings, Job Listings, Restaurant Info, Traffic, and/or Weather category access


In 2013, Mobile ad spending surged 110% while Video (up

22%) also showed rapid growth

SOURCE: IAB Internet Advertising Revenue Report, Full Year 2013, IAB & PricewaterhouseCoopers

ONLINE AD REVENUES IN 2013

Dollars (Billions) % of Total % Change vs. YA

Search $18.4 43% +9%

Display Related $12.8 30% +7%

Banner Ads $7.9 19% +3%

Video $2.8 7% +22%

Rich Media $1.3 3% +18%

Sponsorship $0.8 2% -9%

Mobile $7.1 17% +110% Classifieds $2.6 6% +7%

Lead Generation $1.7 4% +4%

TOTAL ONLINE $42.8 100% +17%


Consumers’ Multi-Media Path to Purchase


The Shopper’s Multi-Channel Journey Today: Not so much a

funnel, more like a flight map

Source: Google ZMOT Handbook


comScore asked consumers to rate a wide variety of shopping tools, including

“traditional” tools such as newspapers and TV, as well as digital and mobile

shopping tools

Source: comScore Survey – June 2013

Shopping Tools Evaluated

“Traditional” Shopping Tools

Digital

Shopping Tools

Mobile

Shopping Tools

• Direct mail

• Magazines

• Newspapers

• Radio

• Recommendations from

friends and family

• Television

• Deal of the day sites

• Digital coupons

• Facebook

• Online circulars

• Online customer reviews/ratings

• Online search engine

• Printable shopping lists

• Retailer or manufacturer email

• Retailer website

• Twitter

• Mobile brand websites

• Mobile coupons

• Mobile location-based services

• Mobile payments

• Mobile retailer websites

• Mobile search

• Retailer smartphone app

• Scannable QR codes

• Text alerts from a retailer

• Use of a smartphone in a

physical store


Different tools for different purposes…and still a role for traditional

media. Mobile coupons becomes the first mobile element in top-10!

Overall Rankings for Each Tool, by Statement (Ranking among tools, % Top-2 Box, 7-pt scale)

Source: comScore Survey – February 2014

Rank “Saves Me Money” “Saves Me Time” “Helps Me With New Ideas”

#1 Digital coupons Online search engine Online search engine

#2 Online search engine Digital Coupons Retailer website

#3 Retailer or manufacturer email Retailer website Recommendations from friends and

family

#4 Newspapers Online circular Television

#5 Recommendations from friends and family Printable shopping lists Retailer or manufacturer email

#6 Online circular Recommendations from friends and family Online customer reviews/ratings

#7 Retailer website Retailer or manufacturer email Magazines

#8 Deal of the day (e.g. Groupon) Online customer reviews/ratings Online circular

#9 Direct mail Direct mail Direct mail

#10 Online customer reviews/ratings Mobile coupons Digital coupons

Denotes Traditional Media


Mobile Search Moves up in the Rankings But Has Yet to

Crack Top Ten

Top 2 Box Ranking for Importance of Mobile Search

2013 2014

Saves Me Money #17 #16

Saves Me Time #16 #14

Helps With New Ideas #21 #16

© comScore, Inc. Proprietary. 30 SOURCE: comScore Media Metrix Multi-Platform, US, Dec-2013

online retailer sites 222 million monthly visitors 26 visits per visitor

comparison shopping sites 98 million monthly visitors 3 visits per visitor

search sites 229 million monthly visitors 33 visits per visitor

coupon sites 91 million monthly visitors 11 visits per visitor

Pricing Power is in the hands of the consumer: Finding the lowest price has never been easier


More than 1 in 3 online

consumers have

showroomed…

However, among these

consumers, most only

showroom ‘sometimes’ or

‘occasionally’

Among smartphone owners,

usage of phones to

showroom has increased

significantly

For most consumers, showrooming remains an ‘occasional’

shopping tactic

Source: comScore Survey – July 2013

34%

% who have ever showroomed

Q. Based on this definition, have you ever done this activity? (seen

an item in-store but instead purchased online) Q. When thinking of your online shopping and the previous

questions, which statement best describes when you use

showrooming?

Q. Have you ever used your mobile device (smartphone / tablet) to

assist in showrooming?

41% 49%

% smartphone owners who have used theirphone to showroom

Q2 2013 Q3 2013

11%

76%

11% Only for majorpurchases

Sometimes /Occasionally

Often

11%

% among showroomers


Why Consumers Are ‘Showrooming’

Although the top reason for showrooming remains finding a better price online,

44% of ‘showroomers’ never planned to buy in person

Q. Which of the following describe why you utilized showrooming? (Please select all that apply)

Source: comScore Survey – October 2013

73%

44%

25%

16%

15%

5%

Price was better online

Planned to buy online but wanted to see item(s) in personbefore ordering

Item was out of stock at store

Would rather have item(s) shipped to home than take homewith me

Was not convenient to buy in-person at the time

Other

% among those who engaged in 'showrooming'


$42 $53 $67 $82 $102

$123 $130 $130 $142 $162

$186 $211

$30 $40

$51 $61

$69

$77 $84 $80

$85

$94

$103

$111

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Retail Travel

Desktop e-Commerce Dollar Sales ($ Billions) Source: comScore e-Commerce Measurement

U.S. Desktop e-Commerce (retail + travel) reached $322 billion in 2013, up +11%

Y/Y overall and +13% Y/Y for Retail

$72 $93

$117 $143

$171

$200 $214 $209

$228

$289

$256

$322

Bil

lio

ns (

$)

+29%

+26%

+22%

+19%

+17%

+7%

-2%

+9%

+12%

+13%

+26%

+33%

+26%

+28%

+20%

+24% +24%

+13%

+20%

+12%

+6%

+9%

0%

-5%

+10%

+6%

+15%

+9%

+14%

+11%

+11%

+13%

+8%


$0.6 $0.8

$1.6

$2.4 $2.6

$3.5

$4.9 $4.5

$3.8

$4.6

$7.2

$5.9

$4.7

$5.8

$8.3

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

In Q4 2013, m-Commerce reached $25 billion & grew

+22% vs 2012

Retail e-Commerce Dollars Spent in Billions via Mobile (Smartphone & Tablet) Source: comScore e-Commerce & m-Commerce Measurement

Approx $25 billion in m-Commerce

spending in 2013


m-Commerce continues to gain share, accounting for 12%

of all e-commerce sales in Q4 2013

m-Commerce Share of e-Commerce Dollars

0%

2%

4%

6%

8%

10%

12%

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

2% 2%

4%

6% 7%

9% 9% 9%

8%

10%

11% 11%

9%

11%

12%


Desktop users have the highest likelihood of purchase, followed by

tablets, then smartphones – bigger screen, higher conversion

Q4 2013 Buyer Penetration by Platform Source: comScore e-Commerce & m-Commerce Measurement

79%

42%

25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Desktop Tablet Smartphone


67%

33%

Smartphone Tablet

Tablet

Phone

Total m-Commerce Spending ($)

per Buyer by Platform

Source: comScore m-Commerce Measurement, U.S., Q4 2013

Share of m-Commerce Spending ($)

by Platform

Source: comScore m-Commerce Measurement, U.S., Q4 2013

During Q4 2013, spending per buyer was relatively even between smartphone

and tablet – did urgency of shorter season lead to increased showrooming on

smartphones?

$209 $195

Smartphone Tablet


m-Commerce buying can see significant variation across product

categories, with digital content & tickets skewing mobile

Q4 2013 Share of Product Category Digital Commerce

Dollar Spending by Platform for Selected Categories Source: comScore e-Commerce & m-Commerce Measurement

88%

96%

93%

90%

85%

78%

71%

8%

3%

4%

6%

11%

15%

22%

4%

1%

3%

3%

5%

7%

6%

60% 65% 70% 75% 80% 85% 90% 95% 100%

Total Digital Commerce

Computer Hardware

Consumer Electronics

Apparel & Accessories

Books & Magazines

Digital Content & Subscriptions

Event Tickets

% Desktop % Smartphone % Tablet


Key Takeaways

• The Digital Omnivore has emerged

• Americans now spend more time on mobile platforms (smartphones + mobile) than on desktop computers

• The leading retail properties now see a third of their monthly audiences coming exclusively from mobile

platforms

• Retailers and marketers MUST have a mobile strategy, but don’t forget legacy media

• Mobile search and advertising growing rapidly in importance 75

Consumers are accessing a broader variety of local content, with apps growing faster than browser

Almost 80% of mobile searches end in a purchase, with 75% occurring in-store

Spending on mobile advertising surging and now equal to banner ads

• Successful multi-platform marketing can mean the difference between realizing valuable

opportunities vs. suffering damaging consequences

• Mobile devices have helped accelerate the movement of pricing power to the consumer

• Mobile devices impacting both offline and online buying decisions

• While somewhat limited, m-Commerce growing rapidly – but importance varies substantially across product

categories

For info about the proprietary technology used in comScore products, refer to http://comscore.com/About_comScore/Patents

Thank you!

For copy of slides, please email:

[email protected]

mobile and the path to purchase

Marketing

comscore mobilenstablens

comscore products

age group comscore mobilens

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founder chairman comscore

mobile engagement

total digital desktop

digital media time