Create your roadmap to navigate the ever-changing landscape of Mobile Commerce. Unlock opportunity by demystifying GeoLocation & GeoFencing, gain insight into what behaviors are really happening “on the go”, and get ready for the changes ahead.

1. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
SIMposium
July 2013
Getting Beyond the Hype-
What’s Really Working In Mobile
Marketing Today

2. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute 2
ABOUT ME
SIMposium
Rocks!

3. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute 3
There
are
5
5mes
as
many
cell
phones
in
the
world
as
there
are
PC’s
HubSpot
–
Shocking
Mobile
Marke5ng
Stats
91%
of
adults
always
have
their
phones
within
arms
reach…24/7
Morgan
Stanley
The
average
adult
looks
at
their
phone
41.5
5mes
a
day
Why Mobile
This
jumps
to
109
(mes
for
young
adults
(age
18-­‐24)
–
Pew
Internet
&
American
Life
Project

4. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Media Evolution
! Media is increasingly shifting to mobile
! Local Mobile CAGR = 49.96%
– Traditional Media = -0.3%
– Digital Media = 12.3%
4
2012
0.9%
$132.4B
2013
1.7%
$132.7B
2014
2.9%
$136.6B
2015
4.0%
$139.5B
2016
5.0%
$145.2B
2017
6.1%
$148.8B
BIA/Kelsey Local Media Forecast, March 2013
Mobile
All
other
media

5. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Mobile Is Big
5
$Billions

6. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Mobile Location Is Even Bigger
6
BIA/Kelsey Local Media Forecast, March 2013
$Billions

7. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Location Essential in
Unlocking Mobile’s Potential
! Impacting Mobile Moments that Matter
– Real-time location combined with 1st party geo-search data tells us a lot
about the mobile users needs and intent
7

8. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Evolving Consumer Behaviors
8
Election of the new Pope - 2005 Vs. 2013

9. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Online Mobile Access Growing
! Over 30% of Smartphone users prefer to go online via Mobile vs.
any other device
9
Source: The Pew Research Center Internet & American Life Project, Spring Survey 2012
Preferred
Online
Access
Online
via
Mobile
Other
Online
Access

10. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Online is now Multi-Platform
! 1 out of 3 digital minutes now comes from smartphone and
tablets
10
Source: comScore Media Metrix Multi-Platform (Beta) US, Dec 2012
63%
Desktop
37%
Mobile
Share of Digital Media Time Spent: Desktop Computer vs. Mobile

11. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
The Differences Between
Smartphone and Tablet Usage
Key Findings from our Mobile Path to Purchase Study

12. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Smartphone Usage is more Out of Home,
While Tablets are At Home
20%
35%
32%
51%
59%
82%
83%
83%
77%
65%
60%
47%
37%
16%
16%
15%
GAS/CONVENIENCE
BANKING
&
FINANCE
RETAIL
INSURANCE
GAS/CONVENIENCE
BANKING
&
FINANCE
RETAIL
INSURANCE
SMARTPHONE
TABLET
OTHER
OUTSIDE
OF
HOME
HOME
Ques5on
Used:CQ16A,
CQ16B,
CQ16C:,
CQ16D
Where
were
you
when
accessing
the
website/
app
on
your
smartphone/tablet?
12

13. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Mobile Is No Longer
Just A Last Mile Media

14. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Mobile Is Used Mostly At the Start of the Shopping
Process – with 1/3 of Users Indicating They Used
Their Device Throughout
64%
44%
53%
50%
14%
11%
16%
17%
5%
8%
11%
9%
17%
37%
21%
23%
GAS/CONVENIENCE
BANKING
&
FINANCE
RETAIL
INSURANCE
ALL
THE
WAY
THROUGH
AT
THE
END
IN
THE
MIDDLE
AT
THE
START
Ques5ons
used:
CQ39A/B/C/D:
When
visi5ng
the
<CATEGORY>,
at
what
part
of
the
research
process
did
you
use
your
<DEVICE>?
14

15. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Gas & Convenience Shoppers Are Most
Likely to Use Mobile at the Start of the
Shopping Process
At The Start
In the Middle
At the End
All The Way Through
64%
50%
53%
44%
14%
17%
16%
11%
5%
9%
11%
8%
17%
23%
21%
37%
Insurance
Retail
Banking
&
Finance
Gas
&
Convenience
15

16. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Insurance Shoppers Are Most Likely to Use
Mobile In the Middle of the Shopping
Process
At The Start
In the Middle
At the End
All The Way Through
64%
50%
53%
44%
14%
17%
16%
11%
5%
9%
11%
8%
17%
23%
21%
37%
Insurance
Retail
Banking
&
Finance
Gas
&
Convenience
16

17. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Retail Shoppers Are Most Likely to Use
Mobile At the end of the Shopping Process
At The Start
In the Middle
At the End
All The Way Through
14%
17%
16%
11%
64%
50%
53%
44%
5%
9%
11%
8%
17%
23%
21%
37%
Banking
&
Finance
Gas
&
Convenience
17
Insurance
Retail

18. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
17%
23%
21%
37%
Banking & Finance Users Are Most Likely to
Use Mobile All the way through the
Shopping Process
At The Start
In the Middle
At the End
All The Way Through
5%
9%
11%
8%
14%
17%
16%
11%
64%
50%
53%
44%
Insurance
Retail
Banking
&
Finance
Gas
&
Convenience
18

19. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Mobile User Needs
And Intent Varies

20. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
User Needs and Intent Varies Based on
What They Are Looking For
24%
11%
49%
28%
39%
7%
27%
11%
36%
34%
38%
17%
21%
31%
49%
55%
14%
30%
4%
12%
1%
8%
1%
2%
GAS/CONVENIENCE
BANKING
&
FINANCE
RETAIL
INSURANCE
Not
sure
Other
Just
Browsing
Looking
for
Contact
Info
Looking
for
Business
to
purchase
from
Researching
Op5ons
20

21. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Top Activities Performed When Accessing
The Mobile Device
21

22. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Mobile Users Take Action
However Immediacy Varies

23. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
60% of Mobile Users Were Looking To
Convert Within The Day
35%
45%
18%
12%
31%
10%
14%
6%
24%
12%
27%
7%
7%
7%
26%
24%
2%
2%
15%
2%
25%
14%
36%
GAS/CONVENIENCE
BANKING
&
FINANCE
RETAIL
INSURANCE
NO
IMMEDIATE
NEED
LONGER
THAN
WITHIN
MONTH
WITHIN
MONTH
WITHIN
DAY
WITHIN
HOUR
IMMEDIATELY
Ques5ons
used:
CQ18A,
CQ18B,
CQ18C:,
CQ18D
S5ll
thinking
of
this
most
recent
visit,
how
quickly
were
you
looking
to
make
a
purchase/transac5on?
23

24. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Banking & Finance Users Are More Likely to
Have the Most Urgent Needs
Immediately
Within The Hour
Within The Day
Within The Month
45%
35%
18%
12%
10%
31%
14%
6%
12%
24%
27%
7%
7%
7%
26%
24%
Insurance
Retail
Banking
&
Finance
Gas
&
Convenience
24

25. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Gas & Convenience Users Are More Likely
to Convert Within the Hour
Immediately
Within The Hour
Within The Day
Within The Month
45%
35%
18%
12%
10%
31%
14%
6%
12%
24%
27%
7%
7%
7%
26%
24%
Insurance
Retail
Banking
&
Finance
Gas
&
Convenience
25

26. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Retail Shoppers Are Most Likely to Convert
Within The Day or Within the Month
Immediately
Within The Hour
Within The Day
Within The Month
10%
31%
14%
6%
45%
35%
18%
12%
12%
24%
27%
7%
7%
7%
26%
24%
Insurance
Retail
Banking
&
Finance
Gas
&
Convenience
26

27. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Insurance Shoppers Are most likely to
convert within a month from their mobile
activity
Immediately
Within The Hour
Within The Day
Within The Month
10%
31%
14%
6%
45%
35%
18%
12%
12%
24%
27%
7%
7%
7%
26%
24%
Insurance
Retail
Banking
&
Finance
Gas
&
Convenience
27

28. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Location & Promotions Critical to Conversion
! Nearly 1 out of 3 smartphone users and 1 out of 4 tablet
users reference their device specifically for contact
information such as a phone number, address or map
and driving directions.
! The majority of consumers (60 percent) expected
businesses to be within walking or local driving distance
from their current location.
28

29. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Mobile Consumers Take Action with Strong
Purchase Intent and Conversions
Ques5on
Used:CQ41A/B/C/D:
When
visi5ng
the
<CATEGORY>
on
your
<DEVICE>,
how
was
the
actual
purchase
completed?
60%
Smartphone
-­‐
60%
Convert
53%
Tablet
–
53%
Convert
29

30. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Conversions Are Happening –
On- and Offline
Ques5on
Used:CQ41A/B/C/D:
When
visi5ng
the
<CATEGORY>
on
your
<DEVICE>,
how
was
the
actual
purchase
completed?
30

31. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Key Take Aways
! Consumers are reaching for their mobile devices earlier
and more often for their shopping and purchasing needs.
! Findings demonstrate that mobile marketing can not be
taken as a “One Size Fits All” approach as usage varies
not only by device – but by type of product / service
need as well.
! Mobile is one of the most powerful tools in the
consumer’s path-to-purchase - knowing how to engage
users by device is essential in unlocking it’s full potential.
31

32. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
The Mobile Opportunity
32

33. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
US Mobile Ad Spend Share, By Format!
! Mobile Search and Display will make up 96% of ad spend by
2017
Source:
emarketer,
June
2013
33

34. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Mobile Search – Where It Happens!
! Mobile search occurs in both browser and in application
Top for General
Search
Vertical Specific
Search Engines
34

35. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
LOCAL: Mobileʼs Sweet Spot!
! 90% of mobile consumers have conducted a local
search via their device!
!
!
! More than 75% of time spent on mobile devices is
conducted ON THE GO (or out of home)!
!
!
! Mobile searchers are closer to the !
!buying decision:!
– Mobile – 70% transact within the hour!
– Desktop – 70% transact within a month!
!
Sources:
The
Mobile
Movement
Study,
Google
/
Ipsos
OTX
MediaCT,
April
2011;
Jiwire
January
2012,
Bing
2010

36. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Mobile Driving Softness in Local Content
Categories!
! While most mobile content usage is incremental to desktop usage –
the following categories have experienced significant softness in
desktop usage!
!
-­‐2%
Maps
-­‐4%
Comparison
Shopping
-­‐5%
News
-­‐12%
Weather
-­‐23%
Directories
Source: comScore Media Metrix Multi-Platform (Beta) US, Dec 2012 36

37. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
½ of Smartphone Searchers Purchase!
Source: Google – Mobile Movement Study, 2012
37

38. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Mobile Search Best Practices!
! Pay for top placement!
! Localize your messaging!
!
! Utilize call extensions!
! Have a mobile optimized landing
page!
! Donʼt forget about Apps!!
– Donʼt take a Google only strategy – cover
all of the top most used applications in
your category as well!
38

39. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Client Example: Dunkin Donuts!
3. RESULTS2. SEARCH1. APP HOME
4. WEBSITE / LANDING
PAGE
• RESULTS - Dunkin’ Donuts experienced click-through rates that
where 6 x’s industry rates – with a strong secondary action
rate of 35%
39

40. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Think Outside The Search Box!
! Mobile Display is growing faster than any other ad category
Source:
emarketer,
June
2013
40

41. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Mobile Consumer Usage Trends!
Source:
Nielsen,
2011
41

42. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
The Ability To Reach Your Target Audience
Passively ~ outside of search!
42

43. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Defining Location Targeting!
! Standard Geo-Targeting – the use of zip codes,
cities, DMAs or other standard geo boundary to
define an area in which ads can be targeted.!
!
!
! Geo-Precision Targeting - refers to targeting areas
that do not conform to standard geo-boundaries. !
!
• Geo-Fencing - based on a set proximity or distance around select
places or points of interest. !
!
• Geo-Behavioral Targeting – typically based on real-time,
historical, or location specific consumer behaviors that allow for
dynamically determined targeting areas that change and shift as
relevant user activity is detected. An example of Geo-Behavioral
Targeting is xAdʼs proprietary SmartFencing™ technology which
incorporates first party real-time search behaviors to identify and
dynamically target key audiences.!
Standard Geo
Geo Fencing
Geo Behavioral
43

44. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Targeted Display Performance!
! On average locally
targeted mobile ads
achieve a CTR
between 0.5 – 1%!
!
! However, the true
measure of
performance in
mobile display is in
post-click action!
Top Secondary Actions of Locally
Targeted Mobile Display
44

45. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute 45
Pinkberry Goes Greek with Location
Targeted Ads
! Targeting Solution:
– 1 mile SmartFence™ around Pinkberry locations
! Results:
─ The campaign doubled the
client’s mobile benchmark
CTR and was highly
successful in driving a lift in
store traffic as measured by
mobile coupon redemptions

46. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute 46
Calvin Klein: Enhancing Relevance by Time
of Day
! Targeting Solution:
– Audience target of luxury retail
shopper + 10 mile SmartFence™
around Macy retail locations
– Creative was day parted to drive
in-store traffic during store hours or
an mCommerce shopping
experience after hours
! Results:
─ The campaign exceeded the clients CTR
benchmark by 26% while helping to
increase local sales during the 2-week
campaign.
Evening
Crea5ve
Day5me
Crea5ve

47. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute 47
Outback – Nothing but Gain in their
Conquesting Game
! Targeting Solution:
– To increase local market sales ads
were targeted to appear when
consumers were within 5 miles of
any Outback competitor location
! Results:
─ The campaign exceeded the industry
benchmark CTR by nearly 80% during the
campaign period and has become an
ongoing line item across Outback’s
mobile campaigns

48. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
The Mobile Opportunity - Key Take-Aways!
! In mobile location matters
– Localizing you ad message is just as important as the
targeting
– Pay for top placement
– Coverage in browser + application essential
! Re-Think Mobile Display
– Not at all like traditional desktop display
– Ability to generate performance in addition to local
market awareness
! Performance must be measured past the ad click
48

49. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute
Summary!
! There is an amazing opportunity for
marketers in Mobile Search and Display!
!
! To reap the rewards – think “Mobile First”!
!
! The time to start is NOW.!
!
49

50. © 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute 50
Contact Information
Monica Ho
VP, Marketing
Monica.ho@xad.com
P : 646-831-2168