The future is digital...the future of digital is mobile. Findings presented to the Australian marketing industry from TNS' global Mobile Life study - the largest ever study into the mobile device consumer.

1. Australia | Presentation 2011

3. Europe: UK, France, Germany, Spain, Italy, Netherlands, Sweden, Russia

4. Developed Asia: Australia, Hong Kong, Japan, South Korea, Malaysia, New Zealand, Singapore, Taiwan

5. China: China only

6. India: India only

7. Emerging Asia: Indonesia, Pakistan, Philippines, Thailand, Vietnam

8. Latin America: Argentina, Brazil, Chile, Guatemala & Cost Rica, Mexico

9. Middle-East & North Africa: Morocco, Saudi Arabia, UAE

10. Sub-Saharan Africa: Benin, Cameroon, Ghana, Kenya, Nigeria, Senegal, South Africa, Tanzania, Uganda43 markets; 34,000 respondents

11. Australian Mobile Landscape In Context 24 million active mobiles – that’s 1.1 per Aussie Smartphones now owned by >50% of adults High technology ownership - mobile is one of many devices We are a nation of car drivers Highly active internet users, but historically not via the mobile But usage is beginning to change... TNS GTI 2011 Study

12. Whilst Australia mobile usage may be evolving, SMS remains the key mobile activity Australia mobile usage through the day commuting lunch dinner TNS GTI 2011 Study

13. China has much heavier mobile users compared to Australia commuting lunch dinner in bed AUSTRALIA CHINA TNS GTI 2011 Study

14. Traditional barriers to mobile data usage are breaking down Proliferation of Smartphones & mobile data usage

15. What role can the mobile play for brands? Creating Brand Saliency Creating Brand Engagement and Loyalty Influencing the Path to Purchase (sometimes) A Market Changer

16. 7 key areas to consider as you connect to the Australian mobile consumer [1] [5] Web vs. Apps Finance at your Fingertips [2] [6] 24/7 Social Location Location [3] [7] Entertainment not just Child’s Play Tablets …Today & Tomorrow [4] The In-store Catalyst

17. 1. Web vs. Apps

18. Mobile apps and mobile web are used for different reasons Apps most commonly used (Australia) Sites most commonly visited (Australia) TNS GTI 2011 Study

19. Apps provide entertainment and utility value Creating Brand Saliency Creating Brand Engagement and Loyalty Influencing the Path to Purchase (sometimes) A Market Changer

20. Utility that can change the market: CBA Property App

21. Stickiness driven by utility and entertainment Loaded App Usage: USA Top 25 2010 Proportion of People Using each month Average Usage Occasions per Month

22. Mobile web about finding information and keeping up to date Creating Brand Saliency Creating Brand Engagement and Loyalty Influencing the Path to Purchase (sometimes) A Market Changer

23. You need to address both and integrate the experience

24. Must consider OS during app / mobile web development – players have changed and will continue to do so Australia and Global smartphone operating system share Australia Global TNS GTI 2011 Study

25. Mobile Web vs. Apps: Implications for your business Mobile Web and Apps used by consumers in different ways. Consider Mobile Web for its role in path to purchase. Consider Mobile Apps to raise awareness or engage via entertainment or utility. Ensure your mobile development covers multiple OS.

26. 2. 24/7 Social

27. The social media revolution is now firmly led by mobile

28. People accessing social networking sites on mobile rose from14%last year to 27% this year B1.19. Service usage - Checking and updating social networking sites Base: All mobile users 469 / 486 TNS GTI 2011 Study

29. Social media presents the opportunity for a new level of brand engagement and consumer loyalty Creating Brand Saliency Creating Brand Engagement and Loyalty Influencing the Path to Purchase (sometimes) A Market Changer

30. Social networking is used throughout the day and night Most popular usage occasions amongst Mobile Social Networkers % choosing occasion A30a: Time of day analysis Bases: All social networking users 111 TNS GTI 2011 Study

31. ’24/7 Social’ can be a catalyst for business growth

32. 24/7 Social: Implications for your business Social networking will continue to explode via Smart Phones, because of display and ease of interaction. Its relevance to consumers is throughout the entire day. Communicating relevant messages to audiences is key – as its as much about entertainment and social connection.

33. 3. Entertainment not just Child’s Play

34. Entertainment has always been a part of mobiles… Remember snakes?

35. Mobile entertainment offers a myriad of opportunities for brands and consumers to connect Creating Brand Saliency Creating Brand Engagement and Loyalty Influencing the Path to Purchase (sometimes) A Market Changer

36. Frequent gaming has increased most over the last year relative to other mobile entertainment % using feature daily/weekly Males and 16-40 year old consumers show a higher usage of all entertainment features A22: Feature usage Significant increase since 2010 Bases: All mobile users 469 / 486 TNS GTI 2011 Study

37. Games have strong usage throughout the day and even in bed before sleep Most popular usage occasions (amongst users of each feature) % choosing occasion A30a: Time of day analysis Bases: All music users 238; All games users 254; TNS GTI 2011 Study

38. Heineken mix TV & mobile gaming to create engagement Heineken App (Launch 1 May ‘11 iOS only) The app is synced live with each UEFA Champions League match Consumers predict game play for points and prizes as it happens…Will he score? Where? Top left? Bottom right? Play against friends or anyone with the app. Potential to be a very powerful tool for Heineken.

39. Mobile Entertainment: Implications for your business It doesn’t have to be complex – sometimes simple can capture our attention just as well. Consider traditional banner advertising in-game. YouTube is going to increase in its mobile usage – and a simple way to engage with a dialled in audience. Use entertainment as a loyalty reward e.g. give away a free MP3 when a customer buys 10 items.

40. 4. The in-store catalyst

41. Australian consumers are starting to turn to their mobile phones for information whilst in the retail environment Source: TNS Omnibus – April 2011, general population

42. Latent interest in mobile centric retail initiatives is strong Interest in mobile based services MobileCoupons BarCodeScanning SMSSalesNotice Source: TNS Omnibus – April 2011, general population

43. Maximising the retail experience

44. Smart phones are being used extensively by consumers for retail. Consumers are dialling into a live information service, comparing prices and reading reviews in situ – is your business ready for the competition? Think laterally about how you can connect the retail experience with mobile. Mobile Retail: Implications for your business

45. 5. Finance at your Fingertips

46. Mobile Banking: Account transactions, checking bank accounts, payments, credit applications, secure purchases , etc Mobile Wallet: Like a debit or credit card to pay for a wide range of services and digital or hard goods. A 101 on what is Mobile Banking and what is Mobile Wallet

47. Mobile Finance is the beginning of a greater cashless society – representing opportunities to provide solutions in a new consumer market Creating Brand Saliency Creating Brand Engagement and Loyalty Influencing the Path to Purchase (sometimes) A Market Changer

48. The desire for mobile financial services is growing fast in Australia Mobile Banking Mobile Wallet Checking account balances, making purchases securely from your mobile phone Paying for items in a shop or restaurant or bar on a mobile phone 6% 52% 19% 52% currently using would like to use currently using would like to use TNS GTI 2011 Study

49. Visa USA is trialling ways to help retailers target consumers’ with SMS offers based on their spending habits Visa partners with GAP to offer real-time, location based offers Customers opt-in through GAP Receive real-time offers based on location Potential for power consumer behavioural data now at Visa and retailers disposal

50. Consumers ready to pay via their mobile phone, today. Simple payment experiences via the smartphone for location activities will increase opportunities. Create partnerships with financial payment operators for retail. Mobile Finance: Implications for your business

51. 6. Location Location

52. GPS is all about using location to literally influence the path to purchase! Creating Brand Saliency Creating Brand Engagement and Loyalty Influencing the Path to Purchase (sometimes) A Market Changer

53. Usage of GPS enabled services has grown rapidly Navigation and location-based services usage almost doubled in the last year reaching 18%& 17%respectively B1: Service usage Base: All mobile users 486 / 469 TNS GTI 2011 Study

54. And these GPS enabled services have further growth potential Service prioritisation Size of bubble = Current usage level Social networks Mobile wallet Speech to text Blogging Live TV Banking Frequency of use Stream music Navigation DL TV / Video Social video Graphics Subscriptions Stream TV Caller tunes Ringtones DL Music DL apps DL Games Location services Growth potential TNS GTI 2011 Study

55. GPS enables infinite possibilities that interest mobile consumers to locate nearby places on maps like landmarks/ shops/ banks/cafes 62% ** 62% for public transport & local travel information, e.g. timetables, nearby stations/ stops, other travel options* to help navigate while travelling 58% ** 22% for location-based social networking, e.g. location of friends, brands and places on Facebook* …and for dating(e.g. list of singles in your area) 7% Plus there’s turn by turn street directions on your smartphone, locate my lost smartphone, track my run, ride or ski, traffic alerts, find best fuel prices, to name but a few TNS Omnibus August 2010; TNS Omnibus July 2010:

56. How can I use mobile location to help connect customers to my brand? GPS enabled services truly differentiate mobile marketing from PC for all businesses Consumer concerns (e.g. privacy) are diminishing– only 15% believe barriers outweigh the benefits EBay to Acquire Location-Based Service Where April 20, 2011, AdAge EBay has announced plans to acquire mobile location-based service Where. Why? To beef up the e-commerce giant's mobile and location tools…to bring big brand and retailers into e-commerce. Where includes both a mobile app for discovering businesses in close proximity and a mobile network for hyper-local ads and deals from more than 120,000 retailers and brands. TNS Omnibus August 2010

57. Location Location: Implications for your business If you can’t create your own app, some ways to start include: Get your website and SEO right (include business addresses, opening hours) – so you maximise map based search results (e.g. Google Maps). Allow consumers to check-in to your business (e.g. via Facebook) and consider offering a tangible benefit for doing so. Consider partnering with a mobile ad agency who can help with localized targeting.

58. 7. Tablets …Today & Tomorrow

59. What does our business need to know about tablets? Tablet ownership in Australia is 6%, This is double global ownership, but in line with developed markets High potential growth - 26%in next 6 months TNS GTI 2011 Study

60. The rise of tablets is unlikely to impact mobile phone usage seen as additional device by66%of intenders… Reading eBooks emerges as the only key activity where tablet preference is stronger than PC or mobile Only 13% will replace their PC with a tablet only 2%of Australian tablet intenders will replace a mobile and mobile remains preferred for communication, navigation & music

61. So what are tablets likely to be used for? For consumers its currently about: in-home usage for similar activities to a PC (esp. media consumption) running on a home network

62. Tablets: Implications for your business Distinct marketing strategies for mobile phones and tablets – they are not the same. Focus your spend where the users are now – smartphones first, then consider tablets depending on your target. Tablets used more like a PC and so reaching tablet users can be done via your broader digital strategy. GPS/navigation/LBS mobile marketing should be optimised for smartphones as they go everywhere, rather than tablets.

63. 7 key insights to consider as you connect to the Australian mobile consumer [1] Mobile Web vs. Mobile Apps are used for different reasons – ensure you know what to develop, when [2] Social Media can afford you the opportunity to ‘push’ content, as long as it’s simple, entertaining and relevant [3] Mobile entertainment can be used to engage consumers throughout the day [4] Mobiles will make your in-store experience open to ‘live’ price & product comparison – is your business ready for this?

64. 7 key insights to consider as you connect to the Australian mobile consumer (Cont’d) [5] Consumers are ready to use mobile finance today for simple transactions – can you offer this option? [6] GPS enabled services range have the power to change the path to purchase; start simple and don’t be left behind [7] Australians use tablets like PCs, so for now use your digital strategy to target tablet users rather than your mobile strategy

65. Thank you…