In 2013 proximity mobile investment was certain but not clear to everyone. This Play Book demonstrates why $28B was invested in the following 2 years.

1. PLAY BOOK

2. INVASIVE

3. 92% of Teens Surveyed
Want Control of their
Personal Information.
85% insist that obtaining permission in shorter
clearer language should be required before
collecting data.
Fast Company 10.08.10

4. ACLU to Siri, “Sorry, I Didn’t
Get That, Say Again”
"The only thing that's clear is we really don't know
what may be happening to the personal
information we have told Siri”
—NicoleOzer,AmericanCivilLibertiesUnionattorney

5. DNT gets Volatile in
Congress Session.
Rockefeller’s Do-Not-Track OnlineAct calls for FTC
oversight, accuses industry of dragging its feet
purposely.
AdAge Digital, 04.24.13

6. DISRUPTIVE

7. Retailers dissatisfied with
Google, Isis and others, Rally
to Reclaim Customer
Experience
MCX companies including Walmart, Target, Best Buy and
7-Eleven operate more than 75,000 stores and process
more than $1 trillioninannual payments.
Fierce Mobile, 04.17.13

8. Consumer Attention has
Shifted to Mobile, Brands
are Caught Off Guard.
AccordingtoanEconsultancy survey, brands areinvesting
moreheavilyinmobile butmobile consumer experienceand
themetricsthatdriveperformance areamystery.
ClickZ 03.07.13

9. IAC backed Aereo
delivers Broadcast TV
Over-the-Air to Multi-
screen Devices: iPad,
iPhone, Roku.
CNET 05.13.13

10. APATHETIC

11. 80% of Respondents have
Never Downloaded a Hotel
or Airline App to their
Smartphones.
63% of respondents never wanttointeract withatravel
brand via social media.
—Deloitte survey
Loyalty 360º 04.03.13

12. “Mobileadoption isoutpacing any historical adoption
trend. Businesses that willsucceed on this next wave
need to understand how tonot only buildoutstanding
experiences onmobile platforms, but also leverage user
data rigorously inorder to best measure and improve
their mobile offerings.”
—JeffTseng,CEOofKontagent
ClickZ 03.07.13

14. New Rules, Content as
Nearly Indistinguishable
from Commerce
Nearly half of Thrillist earnings are generated from the
JackThreads e-commerce site’s companion iPhone app.
Tech Crunch 03.22.13

15. 60% of Consumers Surveyed are
Interested in Mobile Payments.
—IMSResearchsurvey
"Consumers now recognize the value of the data they
create on social networks and search engines and the
power isshifting, as brands begin toacknowledge the
real value of consumer networks.”
—"TheNewValueShift."ZoeLazarus,LoweCounsel
Secure ID News 12.06.12

16. Mobile Commerce
Transactions Expected
to Total $670 Billion by
2013.
SOURCE: Forbes 05.16.12

17. PERVASIVE

18. By 2016 there will be
more than 550 Million
NFC Handsets.
Up from 80 million in 2012
and 35 million in 2011
—IMS Research report
SOURCE: RFGLOBALNET 12.15.11

19. YOU
ARE
HERE
AND
HERE

20. 74% of Developers
Surveyed Plan on Building
Apps for Connected Cars.
Developers predict that by 2015 they willbe building
mobile applications for more than smartphones and
tablets. Televisions, connected cars, game consoles,
Google Glass, and foldable screens all ranked high onthe
list of form factors for 2015.
— Appcelerator/IDC Q3 2012 Mobile Developer Report
INC. 12.20.12

21. MediaPortabilitywillIncrease
asDevelopersBuildApps
forInteroperableDevices,
NetworksandThings.
AnAppcelerator 2013 survey revealed the following
developer diversification by 2015.
- Televisions 83.5%
- Game consoles 71.2%
- Foldable screen 68.1%
- Google Glass 67.1%
SOURCE: INC 09.26.12

22. COLLECTIVE

23. Marketers Express Desire for a
New a Operating Model…
Anew toolbox and collaborative digital partnerships that
demonstrate value interms of higher revenue and
increased market share.
— AccentureInteractiveresearch,TurbulencefortheCMO,2013
SOURCE: Online Media Daily 04.29.13

24. 66% of Marketing Executives Plan
to Allocate at Least 1/4 of their
Budget to Digital Marketing
-23%saidmorethanhalfoftheirspendwillgotowarddigitalmarketing
-48%admittheywillspendmoreonmanagingcustomerdata
-40%willincreasebudgetspendonWebanalytics
-39%willspendmoreonmarketinganalytics
Only44%saidagencypartnershelpmarketingexecutivestransformtheir
marketingorganization,whichisacleargoalformarketingexecutivesin2013.
— AccentureInteractiveresearch,TurbulencefortheCMO,2013
SOURCE: Online Media Daily 04.29.13

25. “ We can't match the volume of
our consumers' creative output,
but we can spark it with the right
type of content.”
— Joe Tripodi, CMO Coca-Cola
- 26 millionYou Tube viewsof content that
Coca Cola created
- 120 millionYou Tube viewsof content created
by others
SOURCE: HBR Blog by Joe Tripodi 04.27.11

26. Twitter Innovation is a Process of
Organic Learning, Crowd Sourcing
whereby Key Functionality Pioneered
by Ecosystem Developers Includes:
- Retweets
- Replies
- Hashtags
- Mobile app
- Social ads
SOURCE:BusinessInsider03.17.13

27. Pocket Change Rewards Users
with Digital Currency for
“Positive, Organic Behavior,”
…such as achieving goals ingame play, shopping, travel
and social activity. Pocket Change digital currency is
earned on400 apps redeemed by 50 millionusers at retail
and online environments such as, Target, Sephora, Fab,
Playstation and XBox.
SOURCE: Tech Crunch 03.21.13

28. FUTURE

29. Apple Users Downloaded Nearly as
Many Apps in 2012 Alone as they
have Since iPhone’s 2007 Launch.
- 4 year period June 2007 –October 2011:
18 billiondownloads
- 1 year period October 2011 – September 2012:
17 billiondownloads
Google Play reached 25 billion downloads
Q3 2012 and offers 800,000 apps.
SOURCE:ReadWrite12.26.12

30. January2012
“Apple’smomentumisincrediblystrong,andwehavesome
amazingnewproductsinthepipeline.”
—TimCook,AppleCEO
Source:InvestmentU01.12
July2012
Appleacquiresfingerprintsensortechnologydeveloper,
AuthenTecInc.,forapproximately$356million.
Source:DigitalTimes07.28.12
September2012
"It'snotclearthatNFCisthesolutiontoanycurrentproblem.”
—PhilSchiller,AppleVPofWorldwideMarketing
Source:PatentlyApple05.02.13

31. VISION

32. October2012
Applefiles9th NFCpatent,thistimewithanewanddistinct
focusrelatingtoestablishinganNFCsession
Source:PatentlyApple05.02.13

33. MEDIA NETWORKS

34. RMG Networks with 200,000
Displays, adds NFC at
Shopping, Air Travel and
Fitness Locations.
SOURCE: NFC Rumors 06.25.11

35. Clear Channel Deploys
NFC 10,000 Panel
Offering Nationwide
in the UK.
SOURCE:ClearChannel12.11.2012

36. Blue Bite Deploys NFC
LBS at 140 Malls
for Clip’d coupon platform distribution on
Adspace’s 2,900 DOOH display network
reaching 48 million shoppers per month
SOURCE: Media Post 03.08.13

37. Cross Device Behavior
is an Essential Metric
Defining Media Value
“Canyou attributespendingtoactionsthatyou aregettingthe
consumertotake?Thishelpsyou validatewhatmediaor
inventoryisvaluableandwhatisn't.”
—CassBaker,executivevicepresidentatLeapfrogOnline
SOURCE:ClickZ,03.05.13

38. RTB is in Demand, along
with “Viewability”
RTB Growth
- 2012 146%
- Q4 85%
— Accordant Media. The “Q1 Market Pulse” report

39. TRANSACTION
NETWORKS

40. A New Monetary Exchange is
Evolving from within the Hyper-
connected Environment.
Lifestyle behavior and engagement rewards developers,
gamers and brand ambassadors withvirtual currency.
Amazon launches virtual currency, courts developer’s
engagement.
ZDNet02.05.13

41. Commerce on Mobile Devices
will Exceed $1 Trillion within 4
years, Worldwide
— IDC
Worldwidebusinessandconsumerspendingovermobile
devicesispredictedtoexceed$1trillion by2017,according
tothelatestresearchfromIDC.
FierceMobileIT 11.19.12

42. m-Commerce is a Proven
and Rapidly Evolving
Growth Market
InQ12013, 17.4% of retail transactions are
m-commerce, Up 31% from Q1 2012
SOURCE: Media Post 04.26.13

43. m-Commerce is about
TVs and Digital Displays
as much as it is about
Turnstiles and Terminals
Of TVviewers age 18 to24; 80% simultaneously use a
phone or tablet whilewatchingthe bigscreen.
“Second screen isa bigopportunity”
—HenryBlodget,BusinessInsiderCEO
SOURCE:BusinessInsider04.25.13

44. Cash and Checks are being
Displaced by Digital Payments
as Payment Cards are
Migrating to Mobile Devices.
Paper-based forms of payment are expected to
decline from 50% in 2005 to 31% by 2015
—The Nilson Report (Issue 985)

45. Gift Cards have Emerged as a
Leading Segment of the
Prepaid Market
— Blackhawk
Retailers are increasingly embracing third-party
distribution of gift cards as a means to capture
market share and to increase traffic and average
spending in their stores.
—National Retail Federation

46. Worldwide Mobile Payment
Transactions in 2012: $172 billion
Worldwide Mobile Payment
Transactions in 2016: $617 billion
—Gartner’s “Forecast: Mobile Payment, Worldwide, 2009-
2016” May 2012 research report
SOURCE:BLACKHAWK

47. NEURAL
NETWORKS

48. “Artificial intelligence, the
science and engineering of
making intelligent machines”
—John McCarthy, StanfordAI Lab
AI is applying technology agents to automate tasks
typically requiring human reasoning such as learning,
planning, perception and communication.

49. An Intelligent Agent Perceives
it’s Environment and Takes
Actions that Maximize its
Chances of Success

50. Application of AI to RFID /NFC
Referencing data in context aware hyper-
connected environments for successful
engagement experience
- Historical
- Behavioral
- Social
- Preference
-Analytic

51. Cloud connected, collective intelligence
data feeds inform anAI network system
architecture that’s mobile device coupled
on user impulse for commerce
automation.

52. SOCIAL NETWORKS

53. Facebook Launched
Reloadable Gift Cards
in January This Year
"After you've received a card, the next time you get a
Facebook Card gift, itwillinstantly be added toyour
existing card…Your card can hold multiple gift balances,
and each balance is dedicated to the retailer associated
withthe gift.”
SOURCE: Mashable 01.31.13

54. Mobile Social Advertising Channel
to Exceed $2 Billion in Revenue by
2017 fueled by Facebook and Twitter
Mobile Frequency
— BIA/Kelsey
SOURCE: ClickZ, April 11, 2013

55. Kraft NFC Campaign Streamlines
Mobile Engagement on Thinaire,
Delivers Brand Socialization with 12
times the Activation of QR Codes.
SOURCE:MobileCommerceDaily 10.18.12

56. Finnish Start-up 6Starz NFC
Check-in Attracts Patrons,
Socializes Proprietor Offers
Bars, restaurants and nightclubs use NFC-based
service to communicate with customers, provide
incentives for inviting friends to meet up in venue.
SOURCE:NFCWorld04.24.11

58. Good2gether’s NFC Social Media Check-
in and Social Good, Offer Alerts Match
Socially Responsible Business with
Conscientious Consumers.
- businesses check inonsocial media,
register for notifications
- donate apercentage of purchases to local non-profit
- customers check-in at retailers using NFC window
sticker badges
SOURCE:NFCTimes02.21.13

59. Bonnaroo’s Best Program of 2012
“Probablyoneofthebestprogramsin2012oranyyearwasour
RFIDthatwebuiltoutwithFord.Sobasically,everybodywho
comestothefestivalgetsanRFIDwristband.It’stheirticket,so
theycanregisteritonline…ThroughapartnershipwithSpotify,
aftertheevent,wewereabletosendyou afullsetlistfromthat
show.Tohavethatjournalallinoneplace,allofitbrandedwith
Ford…[madefor]200millionimpressions,
2millionlikesandcomments.”
SOURCE:ADWEEK03.18.13

60. QUANTUM
NETWORKS

61. Application of quantum mechanics,
superposition, entanglement, qubits,
in artificial intelligence and content
addressable memory systems will
make everyday computing entirely
invisible, ubiquitous and perceptually
indistinguishable from our biology.

62. Cisco Estimates there are
Now 1 Trillion Devices
Connected to the Internet
— Padma Warrior, Cisco Chief Technology Officer

63. INTERNET OF THINGS

64. The Internet of Things
Includes Marketing,
Gaming and Brand-
Licensed Things
Flomio Brings NFC RFID to3D Objects
The company has launched aservice inwhichit
manufactures figurines and other three-dimensional plastic
objects withembedded RFID tags, for applications that
include marketing and gaming.
SOURCE: RFID Journal 02.22.13

65. Disney Announces Disney Infinity
Multiplatform Game Combining
Potentially Every Disney Franchise
with RFID on Xbox 360, PlayStation
3, Nintendo 3DS, Wii U, Wii, PC and
iOS.
“This isone of the most creative things inthe interactive
worldthat Ihave ever seen…It’s a tool chest for creativity.”
—JohnLasseter,Disneychiefcreativeofficer
Source: WIRED 01.15.13

66. Skylanders RFID Toys Outsold
All Other Action Figure Lines
Last Year, Topping Even Star
Wars with Sales Upward of
$500 Million in the US Alone.
— Activision
Source: WIRED 01.15.13

67. Rayman Uses Wii U’s
NFC to Add Characters
within Online Multiplayer
Game Play.
Source: Nintendo Life 04.27.12

68. “Assuming growth similar to what
prevailed during the Internet boom, the
Industrial Internet revolution will add
about $15 trillion to global GDP by 2030.
That’s the equivalent of adding another
U.S. economy to the world.”
— Jeff Immelt, CEO GE
Gigaom,GENOV.28,2012

69. "Cloud computing, mobility and the internet
of everything are the most network-centric
computing transitions that have ever
been…they present Cisco with an opportunity
to lead the communications and IT industry
for the next decade”
— Cisco Chairman and CEO John Chambers
SOUCE:EuropeanCommunications10.05.12

70. The Internet of Things
Includes Machine
Vending and Social
Cause Things
TheCoca-ColaCo.aimstodrumupmorefinancialsupportfortheAmericanRed
Crossthroughanewdonationoptionpilotedonsomeofitsinteractivevending
machinesinAtlanta.
SOURCE: the Atlanta Business Journal 09.17.12

72. TREE OF KNOWLEDGE

73. “In the next age of computing — which we at IBM
are calling the era of cognitive systems — hardware
and software will gain amazing new human brain-like
capabilities to learn, adapt and sense that will
fundamentally improve the way people live, work
and interact with each other.”
— Paul Bloom
SOURCE: IBM'S TELECOM RESEARCH 01.17.13

74. QUANTUM
COGNITION

75. Ray Kurzweil Joins Google In Full-
Time Engineering Director Role;
Will Focus On Machine Learning,
Language Processing
SOURCE: Tech Crunch 12.14.12