1. Retail, Mobile and OOH
See Notes Pages for Details

2. Retail, Mobile and OOH
• Retail Status
- Stores, E-Commerce and M-Commerce
- Category comparisons
- Why consumers prefer to purchase in store
• Mobile’s Role
- Researching > Buying
- Mobile Influence Factor for Retail Stores
• OOH & Mobile
- Immediacy
- Review, Locate, Compare and Convert
- OOH Mobile Poster Interactions
- EE Partnership

3. Onlineretailisgrowingatafastpace
butbyfarthemajorityofretail
purchasesstilltakeplaceinstores
OOH drives consumers online but
its key USP is driving in store due
to proximity to retailers

4. High street retailer sales hit by online at Christmas

5. M-Commerce is perceived as threatening high street retailers
… but Mobile could actually be a blessing in disguise

6. Online accounts for spent on Retail in GB
4.4
6
7.1
8.7 9.4
10.5 10.7
0
2
4
6
8
10
12
2008 2009 2010 2011 2012 2013 2014
%
Source: Retail Sales Jan 2014 – Office National Statistics
Internet as a % of all Retail Sales
(January Monthly Figures for Each Year)
11%
89%
over £1 in £10
- Almost treble that of 2008
Almost £9 in
£10 still takes
place in stores

7. Need to consider all months in the year
- Online Sales are always higher at Christmas
5.6
6.9 6.4
8.5
7.7
9.4
8.5
10.9
9.7
11.7
0
2
4
6
8
10
12
14
2009
June
2009
Dec
2010
June
2010
Dec
2011
June
2011
Dec
2012
June
2012
Dec
2013
June
2013
Dec
Source: Retail Sales 2014 – Office National Statistics
Internet as a % of all Retail Sales
(June and Dec Monthly Figures for Each Year)
+ 23%
+ 33%
+ 22% + 28%
+ 21%

8. Stores still generate by far the majority of all Retail Sales yet
E-Commerce and M-Commerce are growingsignificantly faster
Source: Deloitte Mobile Influence 2013

9. TheHighStreetandOutofTown
ShoppingMallsarethepredominant
placeofpurchaseformostcategories
OOH is ideally suited to influence
purchases on both the High Street
and Out of Town locations
EE data identifies hotspots for
consumers accessing websites/apps on
their smartphones when OOH & is
targeting pedestrians

10. Source: Retail Sales Jan 2014 – Office National Statistics
Category Average Weekly
Sales (£billion)
%
Online
ALL RETAIL £6.4bn 10.7%
Predominantly Food Stores £2.7bn 3.7%
Non-specialised stores
(department stores)
£0.5bn 10.5%
The Textile, clothing and
footwear stores
£0.7bn 12.1%
Household goods stores £0.6bn 5.6%
Other stores £0.8bn 7.7%
Non-store retailing
(Stalls, markets, mail order &
retailers that sell mainly online)
£0.4bn 66.1%
Fuel Stores £0.7bn -
Official Figures from the ONS highlight the importance of
stores for most product categories although online is growing

11. Stores in High Street locations are still the main
place of purchase for consumers
Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street)
Where do you shop for the following categories?

12. And stores in Out of Town locations are key for
several product categories
Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street)
Where do you shop for the following categories?

13. Purchasing & Delivery options across categories demonstrate
the range of opportunities for consumers and retailers
Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street)

14. TheHighStreetisthemainlocationfor
-Services:Banks,GPs,Hairdressers
-Leisure:Cafes,Restaurants,Bars
OOH has a proximity to Services &
Leisure facilities that no other
traditional ATL media can achieve

15. The High Street is the predominant place to
access services
Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street)
Where do you usually go to access the following services or activities?

16. The High Street is also the predominant place to
access health/beauty services & Leisure activities
Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street)
Where do you usually go to access the following services or activities?

17. Consumersstillprefertoshopin
physicalstoresfor:
-Experience
-Discovery
-Convenience
-Interaction
-Promotions
-Design/Aesthetics

18. Why consumers still prefer to
shop in stores
Source: Paco Underhill – The Science of Shopping
Discovery
The adventure of finding things that weren’t
researched/planned - Impulse shopping is exciting
Convenience / Changing Priorities
Stores are still the most convenient place to purchase for
many product categories. Many decisions also don’t warrant
as much thought as they did in the past so convenience is key
Touch / The Senses
We now live in a tactile deprived society so consumers
still like to experience the material world first hand to
make decisions

19. Source: Paco Underhill – The Science of Shopping
Interaction
Consumers still like to get advice from people face to
face and in store best environment for this
In Store Promotions / Bargains
Recession has lead to a value conscious consumer
constantly looking out for in store offers. With the threat of
e-commerce, retailers now have more sales than ever
Packaging
With the abundance of choice, consumers now look more
and more to designs/aesthetics to help them make decisions
Why consumers still prefer to
shop in stores

20. Retail, Mobile and OOH
• Retail Status
- Stores, E-Commerce and M-Commerce
- Category comparisons
- Why consumers prefer to purchase in store
• Mobile‟s Role
- Researching > Buying
- Mobile Influence Factor for Retail Stores
• OOH & Mobile
- Immediacy
- Review, Locate, Compare and Convert
- OOH Mobile Poster Interactions
- EE Partnership

21. Onlinesalesonmobileplatformshave
increasedsignificantlyinthelastyearalone
but increaseisdrivenmorebytabletsthan
smartphones. Most onlinepurchases are
stillmadeviaPCs/laptops
When OOH drives consumers online
to make a purchase, it is more than
likely the sale was made on a desktop

22. Mobile (Smartphone/tablet) as a sales platform
Q2 2012 =
Q2 2013 =
Source: 2013 Capgemini and IMRG
MOBILE (SMARTPHONE / TABLET) AS A % OF ONLINE SALES
11.6%
X 2
23.2%
has doubled over the last year

23. Tablets are driving this growth more than smartphones
- but desktops make up the majority of online purchases
Source: Affiliate Window Data for October 2013
Oct 2012
11.2%
Oct 2013
22.7%
X 2
7.9% 14.6% 77.5%
MOBILE (SMARTPHONE / TABLET) AS A % OF All ONLINE SALES
Smartphone Tablet Desktop

24. Smartphonesroleintheconsumerjourney
ismuchgreaterasaStoreSalesInfluencer
thanasasalesplatformasconsumersdo
Mobileresearchwhichinfluencesthe
purchasedecisionstheymake
OOH can be the trigger for
consumers to research products or
services on their smartphones

25. Mobiles role in the consumer journey is greater as a
“stores sales influencer” than as a sales channel
Source: Deloitte Mobile Influence 2013 (Sample 2,013)
Mobile Influence
Store Factor
“Retailers need to
shift their attention
from mobile as a
sales channel to
viewing mobile as a
driver of store
sales”
2013 2017 (Predicted)

26. Consumers using mobiles on shopping trips are both
more likely to purchase (convert) and spend more
Source: Deloitte Mobile Influence 2013 (Sample 2,013)
Consumers using their smartphones
either before or during shopping trips
were more likely to make a purchase
And they spend more on average

27. The“MobileInfluenceFactor”varies
byretailcategorybutforallitwillgrow
significantlyoverthenextfewyears
OOH drives consumers onto their
smartphones to research all retail
categories but for many brands this
is becoming a commercial necessity
rather than a nice to have

28. A“Mobile Influence Factor” can be calculated
and applied to different categories
Source: Deloitte Mobile Influence 2012/2013
“Mobile Influence Factor”
= % Store Sales where Smartphones
influenced sale during shopping journey
Electronic
Category
Example
(2012)
Total
buying
population
Own
smartphone
Use for
store
related
shopping
Use for
specific
retail
category
Frequency
use for
specific
category
Mobile
Influence
Factor
58% 46% 52%77% 10.7%X X X

29. The Mobile Influence factor varies by category
Source: Deloitte Mobile Influence 2013
Used
smartphones
to shop
Frequency
of use
for category
Mobile
Influence
Factor 2013
Predicted
Mobile Influence
Factor 2017
Electronic/
Appliance
Sports, Toys,
Games, Hobbies
Furniture/
Home Furnishings
Health/Personal Care
/Pharmacies
Food /
Beverage
Convenience Store /
Petrol Station
AVERAGE
(WEIGHTED)

30. Source: Deloitte Mobile Influence 2012
Mobile Influence factor by category (2012)
(Categoriesnotmeasuredin2013Survey)
Used
smartphones
to shop
Frequency
of use
for
category
Mobile
Influence
Factor
2012
Predicted
Mobile Influence
Factor 2016
Books and
Music stores
65% 43% 7.4% 18.7% - 23%
Clothing /
Footwear /
Accessories
62% 36% 5.9% 14.9%- 18.3%
Department
Stores
63% 34% 5.8% 14.6% - 17.9%

31. Smartphoneownersspend15hoursa
weekdoingresearchontheirmobiles,
mostofwhichleadstopurchasesin
storeratherthanonline
If OOH creative is engaging enough
to drive a consumer to research on
their smartphone then the chances
of it converting to a purchase in
store are high

32. Consumers spend over 15 hours a week on mobile
research which influences store sales
Source: Nov 2013 Google Mobile Path to Purchase
(Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days)
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Mobile
Web Time
Mobile
App Time

33. Source: Nov 2013 Google Mobile Path to Purchase
(Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days)
Most products researched on mobiles are
still primarily purchased in store
Where did you make your most recent purchase in the following categories?
(9 different verticals: Restaurants, Food & Cooking, Finance, Travel, Home & Garden, Apparel & Beauty, Automotive, Electronics, Health & Nutrition)
Where did you make your most recent purchase in the following categories?
Purchased
In-store
Purchased
Online
(desktop/tablet)
Purchased
Directly on
mobile

34. Those researching on smartphones usually go on
to make a purchase
Source: Nov 2013 Google Mobile Path to Purchase
(Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days)
Convert
to Purchase
77%
63%
59%
93%
Of people who
have ever
used mobile to
research go on
to make
purchase

35. Whenconsumersareinstore,mobiles
couldactuallyencouragethemto
makepurchasesthereandthenand
reducetheeffectofshowrooming

36. Mobile showrooming fears for retailers
“Showrooming” is the tactic of visiting a store to examine a product
with the intention of buying it elsewhere later
• Mobiles are commonly perceived as a threat to retailers regarding
showrooming as they make it easy for shoppers to seek out better prices
elsewhere & undermine the authority of store’s sales assistants
• 1/3 (33%) phone owners admit to showrooming
• 1/5 (21%) phone owners have used their mobiles for showrooming
• But only 8% have purchased product researched in store on their mobile
• Mobiles can provide retailers with chance to reassert their influence
• Reassure on Price (Check price comparison)
• Reassure on Suitability (Seek opinions of friends/family, reviews)
• Mobile Coupons
• Improving Store Navigation
Source: 2013 TNS‟s Mobile Life (Global)

37. Retail, Mobile and OOH
• Retail Status
- Stores, E-Commerce and M-Commerce
- Category comparisons
- Why consumers prefer to purchase in store
• Mobile’s Role
- Researching > Buying
- Mobile Influence Factor for Retail Stores
• OOH & Mobile
- Immediacy
- Review, Locate, Compare and Convert
- OOH Mobile Poster Interactions
- EE Partnership

38. OOHAdvertisingandMobileshave
immediacyincommonprovidingthe
opportunityforconsumerstorespond
totriggersanddesiresinstantaneously

39. OOH advertising generates 5 major types of response
- both immediate and delayed
36
24
11
9
8 7
5 4
9 8
1
20
12
6 5
4
1 1
13
8
6
2 1 1
16
12
9
0
20
40
60
80
100
120
140
160
180
.
10.
20.
30.
40.
%ofTargetAudience
% of Target Audience (Smartphone Owners)
Thinking about advertising you may have seen in places such as on the side of buses, on posters
on the high street, in rail or tube stations, bars or shopping centres and by the side of the road.
Have you taken any of the following actions in the last seven days?
Went online Word of Mouth
Further Brand
Consideration/Enquiries
Interaction /
Mobile Response
Purchased
Product /Service
Index

40. Both OOH & Mobiles have immediacy in common which
maintains momentum on the consumer journey
Maps
MOBILE HELPS TO
MAINTAINS MOMENTUM
DRIVING CONSUMERS TO
THE NEXT STAGE IN
CONSUMER JOURNEY
IMMEDIATE
ONLINE
RESPONSE
DELAYED
ONLINE
RESPONSE
CONSUMERS MOST
COMMON RESPONSE IS
TO LOOK ONLINE LATER
- MORE LIKELY BUY ONLINE
- ADVERT LESS FRONT OF
MIND SO MAY FORGET
IMMEDIATE
STORE VISIT
RESPONSE
Pricing
Reviews

41. Source: McKinsey Journey
When OOH & Mobiles Converge, this generates the
highest level of engagement on the consumer journey
IMMEDIATE
ONLINE
RESPONSE
IMMEDIATE
STORE VISIT
RESPONSE

42. Immediacy is key to converting to purchase after
researching on mobile
Source: Nov 2013 Google Mobile Path to Purchase
(Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days)
NB. This varies significantly by category
Q: Usually how quickly after you begin engaging with your Smartphone are you looking to make a category purchase?

43. Consumersusetheir smartphonesfor
-Reviews
-Locations/directions
-Openinghours
-InventoryChecking
-MakingReservations
-Pricecomparison

44. Most consumers used smartphones/tablets to look up
reviews, locations/directions and price comparison
Activities done on
smartphone/tablet
in past 30 days
Restaurant Travel Automotive
Looked up reviews 58% 53% 37%
Looked up business location 64% 29% 43%
Looked up directions to business 49% 26% 29%
Looked up pricing info/compared prices 45% 70% 53%
Source: xAd/Telmetrics Mobile Path to Purchase Study 2013
2,000 UK Adults (Smartphone owners: 1,455, Tablet owners: 1,179)
Engaged in activities relating to either Restaurant, Travel, Automotive categories in last 30 days

45. 7 in 10 smartphone owners have used a
Store Locator to find a store
Source: Nov 2013 Google Mobile Path to Purchase
(Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days)
Restaurants Electronics Apparel &
Beauty

46. 7 in 10 smartphone owners who regularly use mobile search
have used Click to Call function often to find store information
Source: Google, Ipsos “Click to Call” Research September 2013
3,000 smartphone users aged 18-74 who use mobile search at least a few times week and made
purchase in product category in last 6 months
Click to Call
The largest reasons for
“click to call” all
demonstrate consumers
are interested
in visiting a store

47. Click to Call reasons vary by category but most
have a high level of store visiting intent
Source: Google, Ipsos “Click to Call” Research September 2013
3,000 smartphone users aged 18-74 who use mobile search at least a few times week and made
purchase in product category in last 6 months
% who may call a business directly from a search for each task

48. Consumershaveanappetitetouse
their smartphonestointeractwith
OOHifitprovidesarealbenefittothem
ofteninproximitytotheposter

49. Consumers see access to similar types of information as the
main reasons to interact with posters using smartphones
Q: If you saw a poster advert that interested you, how likely would you be to use the NFC (Near Field Communications)
technology on your mobile for the following
Source: Smartphone Real World Interactors 2012 (Posterscope/Clear Channel)
Sample: 1,000 UK/US Smartphone users all ever used 1 of 7 Mobile Interaction Technologies

50. Proximity Interactive OOH is proven to generate
sales
Voucher downloaded by 2,265
passengers from just one 6 sheet
Approximately 75 downloads a day
Proximity campaign London Luton Airport
17th Dec - 16th Jan 2010
Activating Bluetooth and accepting
invitation from Burger King, airport
visitors received 15% off their meals at
the airport

51. EEdatahelpsselectpostersitesproviding
theadvertiserswiththebestpossiblechance
theiradvertwillevokeaconsumerresponse
-DrivingonlineonMobile
-Drivinginstore
Both

52. Mobileusage
hotspots
Data
Re-inventing theapproach to OOH
planning using big data.
Inpartnership withEE, using aggregated
and anonymised location based mobile
data to understand „hotspots‟of mobile
web and app usage
EE Data provides information to plan in hotspots
relevant to a particular category
Selecting sites in geographical locations which are hotspots for consumers accessing
websites or apps relevant to a particular retailer category such as electronics,
= hyper-targeted posters that provide the featured advertiser with the best possible
chance that their advert will evoke a consumer response

53. Fashion,Mobile&OOHExample

54. Fashion, Mobile & OOH
• £1bn is spent in GB weekly on Fashion & Footwear and 11% of this
online so the vast majority is spent in OOH stores (ONS Nov 2013)
• 50% shop for clothing/footwear/accessories on the high street, 36%
in town but not on the high street, 44% in out of town shopping
centres and 41% online (Deloitte Consumer Review 2013)
• 59% of consumers buy clothing/footwear/accessories in store and
take it home, 13% order online and collect in store
(Deloitte Consumer Review 2013)
• Consumers like to discover and purchase clothes on impulse
• 60% of GB adults have bought clothes on impulse and 61%
like to try clothes before they buy them (OCS 2013)
• 2012 Mobile Influence Factor of 5.9% for Clothing/Footwear/
Accessories and this is predicted to grow to 15-18% by 2016
(Deloitte Mobile Influence Factor)
• Of all people who have ever used smartphones to help them
shop, 62% have done this for the clothing/footwear/accessories
category (Deloitte Mobile Influence Factor)

55. • Consumers want to make immediate purchases and 83% of those
using mobile to research want to purchase within a day –
demonstrating the desire to act immediately, often to visit stores
(Google Path to Purchase Study Nov 2013)
• Of the 63% of consumers who considered making a Fashion purchase
40% went on to buy something – 63% conversion rate
(Google Path to Purchase Study Nov 2013)
• 31% of smartphone owners have used a Store Locator to find a
fashion store (Google Path to Purchase Study Nov 2013)
• 59% who use “Click to Call” for Retail want to check for business hours
& 52% to inquire about inventory demonstrating a desire to visit stores
(Google Click to Call Sept 2013)
• 84% smartphone owners would consider interacting with a poster with
the mobile to get local information directions if they saw a poster that
interested them - demonstrating a desire to visit a store
(Posterscope 2012 Smartphone Real World Interactors)
Fashion, Mobile & OOH