1. Mobile retail opportunities
A new way to look at the market
by
All data/forecasts contained in this presentation copyright of mobileSQUARED unless stated otherwise. Data from Mobile Consumer Trends product

2. Mobile Commercialisationarisms
E-commerce projections, UK
£69 billion in 2011, + 18% in 2012 =
100 £81.42 billion
80
(IMRG estimations + mobileSQUARED data)
60 E-commerce
£ bil.
40 mobile
20
M-commerce potential
0
2011 2012
7,000,000,000
6,000,000,000
5,000,000,000
4Q11 = £5.6 billion 4,000,000,000
One purchase
3Q12 = £6.6 billion
£
3,000,000,000 Multiple purchases
2,000,000,000
NOT ACTUAL MARKET 1,000,000,000
FORECASTS! -
4Q11 3Q12

3. Your view of the UK mobile market ...
82.91 million subs
22.8 mobile internet users
17.9 mobile app users

4. ... & this is ours

5. In data we trust
We segment the UK mobile subscriptions by:
• Advertising
• Apps
• Internet
• Messaging
• Commerce
Then by:
• Device type
• Age
• Gender
• Location
• Socio-economics
And forecast:
• 6 quarters out

6. Our UK view, 1Q2011... Mob Int: 7%
M-comm: 5%
Apps: 1%
Mob Int: 11% M-comm: 1%
M-comm: 12%
Mob Int: 5%
Apps: 5%
M-comm: 5%
Mob Int: 2%
Apps: 2%
Mob Int: 10%
Mob Int: 5% M-comm: 10%
M-comm: 5%
Apps: 6%
M-comm: 6%
Apps: 7%
M-comm: 7%
Mob Int: 19%
Apps: 14% Apps: 18%
Mob Int: 12% M-comm: 22%
M-comm: 16%
M-comm: 9%

7. Investing in Android yet?
24,670
2.4 million
Number of Android mobile internet
users in 2Q2011
107,207
439,693

8. Forgotten the featurephone massive?
7.2 million 1,092,142
Number of featurephone mobile internet
users in 2Q2011
498,673 904,794

9. Total m-commerce users, by device
14.5 million
Users of m-commerce in 1Q2011
M-commerce users by device
20,000,000
18,000,000
19.2 million
Users of m-commerce in 3Q2012
16,000,000
14,000,000
12,000,000 Non-smartphone
10,000,000 Other smartphones
Android
8,000,000
iPhone
6,000,000
4,000,000
2,000,000
-
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
72%
of m-commerce users on
smartphones in 3Q2012

10. Demographics
M-commerce: iPhone vs Android
1,600,000 Android m-commerce usage will
1,400,000 overtake iPhone in 4Q2013
1,200,000
1,000,000
800,000 iPhone 18 - 24
600,000 Android 18 - 24
400,000
200,000
M-commerce: iPhone vs Android
-
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000 iPhone 25 - 34
800,000 Android 25 - 34
600,000
400,000
200,000
-
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

11. What is the iPhone’s appeal?
25-34 y.o.s: largest m-commerce users and will experience most growth
18-24 y.o.s are the next largest demographic group for m-commerce
iPhone m-commerce activity, by age
6,000,000
5,000,000
4,000,000 55 - 64
45 - 54
3,000,000 35 - 44
25 - 34
2,000,000 18 - 24
1,000,000
-
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

12. 3,799,533 2.1
Central, 3Q12 Total number of mobile internet users
million
responsive to
mobile
Mobile internet users by device advertising
iPhone
47%
Android
Other smartphones
Total featurephones
Total legacy phones increase in
Total app users
1Q11-3Q12
M-Commerce by device
iPhone
Android
Other smartphones
Total featurephones
Total legacy

13. Conclusion
iPhone will remain the largest device-type for m-commerce.
Discount featurephones at your peril
Largest demographic group for m-commerce will be 25-34 y.o.s
– 32% (1Q2011) & 43% in (3Q2012)
Smallest demographic group for m-commerce will be 55-64
y.o.s – 6% (1Q2011) & 8% in (3Q2012)
Regions with the greatest propensity for m-commerce: London,
Central & Granada
Nick Lane
Chief strategy analyst
mobileSQUARED
nick@mobilesquared.co.uk
+44 118 979 5339