LSA|14: Gian Fulgoni, Executive Chairman and Co-Founder, comScore

For info about the proprietary technology used in comScore products, refer to http://comscore.com/About_comScore/Patents

Mobile and the Path to Purchase

Gian Fulgoni, Co-Founder & Chairman

comScore, Inc.

April 29, 2014

© comScore, Inc. Proprietary. 2

The Digital Omnivore

Mobile Search & Local Content

Consumers’ Path to Purchase

Key Takeaways

Topics for Today


PERSON-Centric Panel with WEBSITE-Census Measurement

2 Million Person Panel 360°View of Person Behavior

Data sourced from comScore’s global panel of 2 million Internet users

Web Visiting &

Search Behavior

Online AdvertisingExposure

Demographics,Lifestyles& Attitudes

Media & VideoConsumption

Transactions

Online& Offline

Buying

Mobile InternetUsage & Behavior

PANEL

Plus 5 Million TV Set Top Boxes for 3-Screen Measurement

CENSUS

Unified Digital Measurement™ (UDM)Patent-Pending Methodology

1 Million Domains ParticipatingAdopted by 90% of Top 100 U.S. Media Properties

PANEL

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 4

Emergence of the Digital Omnivore


The Brave New Digital World: Adoption of Smartphones & Tablets has dramatically changed the digital media landscape

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

Nu

mb

er o

f D

evic

e O

wn

ers

Number of U.S. Device Owners (Smartphone and Tablet)

163 MILLION

+22%vs. YA

87 MILLION

+51% vs. YA

Source: comScore MobiLens/TabLens 3 month average ending February


Millennials have a substantially higher rate of smartphone penetration than their older counterparts

U.S. Smartphone Penetration of Mobile Phones Within Age GroupcomScore MobiLens, U.S., Age 18+, 3 Month Average Ending Nov-2013

Age 18-34

Age 35-54

Age 55+

81%

68%

40%


47%

42%

12%

Desktop

Smartphone

Tablet

The Post-Desktop era begins: More than half of all digital media time now occurs on mobile platforms

Source: comScore Media Metrix Multi-Platform, December 2013


Millennials are heavier internet users across all devices and spend a full day of every week online. Mobile engagement outpaces desktop in all age groups

Average Monthly Time Spent in Hours per User by PlatformcomScore Media Metrix Multi-Platform, U.S., Age 18+, Nov-2013

Age 18-34 Age 35-54 Age 55+

96.087.0

58.949.1

43.635.2

65.957.2

42.9

Total Digital

Desktop

Mobile


Total digital media consumption has nearly doubled in the past three years, led by massive growth in smartphone engagement

Source: comScore Media Metrix Multi-Platform, June 2013

Note: Jun-2010 Mobile is estimated based on earliest observed comScore smartphone engagement

data calibrated by number of smartphone users at that time

Total U.S. Internet Usage in Minutes (Billions) by Platform Desktop, Smartphone and Tablet

June 2010 June 2013

404,711 419,316

83,071

381,351

105,577

906

487

+4%

+86%

+359%

N/A


4,929 +530%

Engagement with Coupon sites has seen tremendous growth across all platforms, including desktop

* Note: Feb-2010 Mobile is estimated based on earliest observed comScore smartphone engagement data calibrated by

number of smartphone users at that time

U.S. Coupon Site Usage in Minutes (MM) by Platform: Desktop, Smartphone and Tablet

Source: comScore Media Metrix Multi-Platform, U.S., February 2013

43

782

+385%

172

610

2,962

683

Feb-2010 Feb-2013

N/A

+645%1,284


Desktop consumption of Weather content has declined markedly, but because of extensive phone use, overall engagement from digital platformshas increased modestly

Time Spent on Weather Sites(Millions of Minutes)

Source: comScore Media Metrix & Mobile Metrix, US

43

Feb-2010 Feb-2013

4,169

3,641

-46%

+15%

+385%

3,214

427

1,723

2,073

373 N/A


Maps have benefitted massively from phone usage but desktop use has declined

Time Spent on Map Sites(Millions of Minutes)

Source: comScore Media Metrix & Mobile Metrix, US

43

5,811

2,303

-13%

+152%

+386%

1,406

897

1,217

4,355

239

Feb-2010 Feb-2013

N/A


The digital population now spends slightly more time engaging with retail sites on their smartphone than on their desktop

Total Minutes (MM) Spent in Retail Category by PlatformSource: comScore Media Metrix and Mobile Metrix, U.S., Feb-2013 – Dec-2013

Feb-2013

Mar-2013

Apr-2013

May-2013

Jun-2013

Jul-2013

Aug-2013

Sep-2013

Oct-2013

Nov-2013

Dec-2013

0

5,000

10,000

15,000

20,000

25,000

30,000

Desktop Smartphone Tablet

To

tal

Min

ute

s (M

M)

Feb-2013 Dec-20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

49%40%

37%43%

14% 17%

Desktop Smartphone

Tablet


37%

31%

74%

50%

100%

92%

99%

90%

61%

98%

63%

69%

26%

50%

0%

8%

1%

14%

39%

2%

Browser App

Amazon

eBay

Walmart

Target

Craigslist

BestBuy

Macy's

Sears

Etsy

Home Depot

40%

44%

48%

45%

61%

49%

56%

59%

53%

51%

31%

26%

20%

15%

18%

14%

13%

9%

12%

10%

29%

30%

32%

40%

20%

37%

30%

31%

34%

38%

PC only PC + Mobile Mobile Only

88M145M

74M63M

50M47M

28M25M24M22M

Mobile is a fundamental part of Online Retail; mobile apps generally much more popular for pure-plays

Mobile = Smartphone + Tablet

Entities represent the online branded domain and mobile app for each retailer

Select Online Marketplaces: Total U.S. Digital Population

Unique Visitors (Millions) by PlatformSource: comScore Media Metrix Multi-Platform, U.S., December 2013

% of Mobile Time Spent – Browser vs. AppSource: comScore Mobile Metrix, U.S., Dec-2013


Mobile obviously stands out on navigation-based searches; apps generally much more popular for on-the-go type searches

Google Maps

Yahoo Answers

YELP.COM

WEATHER

YP

CRAIGS

ZILLOW

Fandango

39%

52%

40%

64%

46%

61%

50%

43%

18%

15%

16%

13%

10%

18%

13%

8%

43%

33%

44%

23%

44%

20%

37%

48%

PC only PC + Mobile Mobile Only

93M

87M

63M

59M

54M

50M

32M

26M

Mobile = Smartphone + Tablet

Entities represent the online branded domain and mobile app for each retailer

1%

100%

27%

14%

56%

100%

42%

19%

99%

73%

86%

44%

58%

81%

Browser App

Select Local Sites: Total U.S. Digital PopulationUnique Visitors (Millions) by Platform

Source: comScore Media Metrix Multi-Platform, U.S., December 2013

% of Mobile Time Spent – Browser vs. AppSource: comScore Mobile Metrix, U.S., Dec-2013


Mobile Search & Local Content


Each device has a skew in category of local search. 80% of phone used for Restaurants, Shops and Services. Businesses need to consider what device appeals to their audience when marketing.

Source: comScore custom research - 15miles/Neustar Localeze Local Search Usage StudyFrom what device did you do your last online local business information search?

Category of Local Search by Platform Percent of Device Users

PC/Laptop Mobile phone Tablet

24%30% 28%

23%

28% 33%

21%

21% 11%

11%

4% 15%

13% 5%5%

4% 8% 4%3% 4% 4%

Restaurants

Shops

Services

Health / Fitness

EntertainmentTravelFinancial


Compared to other devices, mobile phones have the highest conversion rate. Nearly 80% of mobile phone searches end in a purchase.

Source: comScore 15Miles Neustar // Localeze 7th annual Local Search Study

Did you make a purchase from the local business?

PC/Laptop Mobile Phone

Tablet

59%

78% 77%

61%

78%

64%

2012

2013

% of Searches that Resulted in a PurchaseSource: comScore custom research - 15miles/Neustar /Localeze Local Search Usage Study


PC/Laptop Mobile Phone Tablet

70% 73% 65%

17% 16%15%

13% 11%20%

Purchased in store Called to make purchase Purchase online

Nearly 3 out of every 4 mobile phone searches that end in a purchase bring customers into brick-and-mortar stores.

Location of PurchaseSource: comScore custom research - 15miles/Neustar /Localeze Local Search Usage Study

Source: comScore Local Search Usage Study

Did you make a purchase from the local business?

Online

Called to make purchase

In Store


Need information on the go

It's easy Can find information quickly

Can find more complete information

More opportunities to find the information on this

device

Device is inexpensive

65%

34%30%

16%22%

25%

38% 39%

31%25% 25%

35%

60%

49% 48%42%

33%

PC/Laptop Mobile Phone Tablet

Mobile phone and tablet search is driven by a need for information on the go. PC/Laptops are used for quick, easy, complete information.

Source: comScore custom research - 15miles/Neustar Localeze Local Search Usage Study

From what device did you do your last online local business information search?

Reasons for Using Device for Local Search(Percent of those who use each device)

* Local Content defined as Business Directories, Classifieds, Maps, Movie Information, Real Estate Listings, Restaurant Info, Traffic, and/or Weather category access

© comScore, Inc. Proprietary. 21Access methods include Browser, Application and SMS

Source: comScore MobiLens U.S, December 2010 - 2013

Local Content Access on Mobile Phones(Millions of People)

61.469.8

20.1

104.0

52.645.5

29.0

Any Access Method

85.774.5

16.013.710.5

Browser

50.744.2

31.5

Application SMS

54.4

+92%

+95%+140%

+98%

Dec-13

Dec-12

Dec-11

Dec-10

Access to local content on mobile phones has grown significantly, with apps seeing the greatest increase.

*Local content defined as searching for information on maps, movies, business directories or restaurants.

© comScore, Inc. Proprietary. 22Access methods include Browser, Application and SMS

Source: comScore MobiLens U.S, December 2012 - 2013

Every subset of local content saw strong growth over the last year, as more mobile phone users consumed more types of content.

Mobile Audience Size and Growth

Local Content Categories

(Millions)

+34%+23%

+21%

+38%+25%+29%+24%

+22%

Real Estate

2619

+24%

135

Job Listings

3025

Business Directories

3428

Traffic

43

31

Classifieds

4435

Restaurant Info.

52

40

Movie Info.

5444

Maps

89

72

Weather

118

96

Total Local Content

113

+20%

Dec-13Dec-12

Au

die

nce

(M

M)

People are using a wider variety of Local Content, with subcategory growth

outpacing the total segment.

* Local Content defined as Business Directories, Classifieds, Maps, Movie Information, Real Estate Listings, Restaurant Info, Traffic, and/or Weather category access


Heavy local content users on mobile skew male, more affluent (48% report income of $75+), and younger (42% aged 18-34).

Access methods include Browser, Application and SMS

Source: comScore MobiLens U.S, December

Total Mobile Heavy Local Searchers

49% 54%

51% 46%

Females

Males


7% 5%

13% 17%

17%

25%

17%

21%18%

16%15%

10%15%

6%65+

55-64

45-54

35-44

25-34

18-24

13-17


17% 13%

22%20%

20%

20%

14%16%

27%32%

$100k+

$75k to <$100k

$50k to <$75k

$25k to <$50k

<$25k

*Heavy user defined as mobile user who reported accessing content “almost every day”** Local Content defined as Business Directories, Classifieds, Maps, Real Estate Listings, Job Listings, Restaurant Info, Traffic, and/or Weather category access


In 2013, Mobile ad spending surged 110% while Video (up 22%) also showed rapid growth

SOURCE: IAB Internet Advertising Revenue Report, Full Year 2013, IAB & PricewaterhouseCoopers

ONLINE AD REVENUES IN 2013

Dollars (Billions) % of Total % Change vs. YA

Search $18.4 43% +9%

Display Related $12.8 30% +7%

Banner Ads $7.9 19% +3%

Video $2.8 7% +22%

Rich Media $1.3 3% +18%

Sponsorship $0.8 2% -9%

Mobile $7.1 17% +110% Classifieds $2.6 6% +7%

Lead Generation $1.7 4% +4%

TOTAL ONLINE $42.8 100% +17%


Consumers’ Multi-Media Path to Purchase


The Shopper’s Multi-Channel Journey Today: Not so much a funnel, more like a flight map

Source: Google ZMOT Handbook


comScore asked consumers to rate a wide variety of shopping tools, including “traditional” tools such as newspapers and TV, as well as digital and mobile shopping tools

Source: comScore Survey – June 2013

Shopping Tools Evaluated

“Traditional” Shopping ToolsDigital

Shopping ToolsMobile

Shopping Tools

• Direct mail• Magazines• Newspapers• Radio• Recommendations from

friends and family• Television

• Deal of the day sites• Digital coupons• Facebook• Online circulars• Online customer reviews/ratings• Online search engine• Printable shopping lists• Retailer or manufacturer email• Retailer website• Twitter

• Mobile brand websites• Mobile coupons• Mobile location-based services• Mobile payments• Mobile retailer websites• Mobile search• Retailer smartphone app• Scannable QR codes• Text alerts from a retailer• Use of a smartphone in a

physical store


Different tools for different purposes…and still a role for traditional media. Mobile coupons becomes the first mobile element in top-10!

Overall Rankings for Each Tool, by Statement(Ranking among tools, % Top-2 Box, 7-pt scale)

Source: comScore Survey – February 2014

Rank “Saves Me Money” “Saves Me Time” “Helps Me With New Ideas”#1 Digital coupons Online search engine Online search engine

#2 Online search engine Digital Coupons Retailer website

#3 Retailer or manufacturer email Retailer website Recommendations from friends and family

#4 Newspapers Online circular Television

#5 Recommendations from friends and family Printable shopping lists Retailer or manufacturer email

#6 Online circular Recommendations from friends and family Online customer reviews/ratings

#7 Retailer website Retailer or manufacturer email Magazines

#8 Deal of the day (e.g. Groupon) Online customer reviews/ratings Online circular

#9 Direct mail Direct mail Direct mail

#10 Online customer reviews/ratings Mobile coupons Digital coupons

Denotes Traditional Media


Mobile Search Moves up in the Rankings But Has Yet to Crack Top Ten

Top 2 Box Ranking for Importance of Mobile Search

2013 2014

Saves Me Money #17 #16

Saves Me Time #16 #14

Helps With New Ideas #21 #16

© comScore, Inc. Proprietary. 30SOURCE: comScore Media Metrix Multi-Platform, US, Dec-2013

online retailer sites222 million monthly visitors26 visits per visitor

comparison shopping sites98 million monthly visitors3 visits per visitor

search sites229 million monthly visitors33 visits per visitor

coupon sites91 million monthly visitors11 visits per visitor

Pricing Power is in the hands of the consumer:Finding the lowest price has never been easier


More than 1 in 3 online consumers have showroomed…

However, among these consumers, most only

showroom ‘sometimes’ or ‘occasionally’

Among smartphone owners, usage of phones to

showroom has increased significantly

For most consumers, showrooming remains an ‘occasional’ shopping tactic

Source: comScore Survey – July 2013

% who have ever showroomed

34%

Q. Based on this definition, have you ever done this activity? (seen an item in-store but instead purchased online) Q. When thinking of your online shopping and the previous questions,

which statement best describes when you use showrooming?Q. Have you ever used your mobile device (smartphone / tablet) to

assist in showrooming?

% smartphone owners who have used thei...

41%

49%

Q2 2013 Q3 2013

11%

76%

11%

Only for major purchases

Sometimes / Occasionally

Often

11%% among showroomers


Why Consumers Are ‘Showrooming’

Although the top reason for showrooming remains finding a better price online, 44% of ‘showroomers’ never planned to buy in person

Q. Which of the following describe why you utilized showrooming? (Please select all that apply)

Source: comScore Survey – October 2013

Price was better online

Planned to buy online but wanted to see item(s) in person be-fore ordering

Item was out of stock at store

Would rather have item(s) shipped to home than take home with me

Was not convenient to buy in-person at the time

Other

73%

44%

25%

16%

15%

5%

% among those who engaged in 'showrooming'


2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

$42 $53 $67 $82 $102$123 $130 $130 $142 $162

$186$211

$30$40

$51$61

$69$77

$84 $80$85

$94$103

$111Retail Travel

Desktop e-Commerce Dollar Sales ($ Billions)Source: comScore e-Commerce Measurement

U.S. Desktop e-Commerce (retail + travel) reached $322 billion in 2013, up +11% Y/Y overall and +13% Y/Y for Retail

$72$93

$117$143

$171$200

$214 $209$228

$289$256

$322

Bil

lio

ns

($)

+29%

+26%

+22%

+19%

+17%

+7%-2%

+9%

+12%

+13%

+26%

+33%

+26%

+28%

+20%

+24% +24%

+13%

+20%

+12%

+6%

+9%

0%

-5%

+10%

+6%

+15%

+9%

+14%

+11%

+11%

+13%

+8%


Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

$0.6 $0.8

$1.6

$2.4 $2.6

$3.5

$4.9 $4.5

$3.8

$4.6

$7.2

$5.9

$4.7

$5.8

$8.3

In Q4 2013, m-Commerce reached $25 billion & grew +22% vs 2012

Retail e-Commerce Dollars Spent in Billions via Mobile (Smartphone & Tablet)Source: comScore e-Commerce & m-Commerce Measurement

Approx $25 billion in m-Commerce spending in 2013


m-Commerce continues to gain share, accounting for 12% of all e-commerce sales in Q4 2013

m-Commerce Share of e-Commerce Dollars

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

0%

2%

4%

6%

8%

10%

12%

2%2%

4%

6%7%

9% 9% 9%

8%

10%

11%11%

9%

11%12%


Desktop users have the highest likelihood of purchase, followed by tablets, then smartphones – bigger screen, higher conversion

Q4 2013 Buyer Penetration by PlatformSource: comScore e-Commerce & m-Commerce Measurement

Desktop Tablet Smartphone0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

79%

42%

25%


67%

33%

Smartphone Tablet

Tablet

Phone

Total m-Commerce Spending ($)

per Buyer by PlatformSource: comScore m-Commerce Measurement, U.S., Q4 2013

Share of m-Commerce Spending ($)

by PlatformSource: comScore m-Commerce Measurement, U.S., Q4 2013

During Q4 2013, spending per buyer was relatively even between smartphone and tablet – did urgency of shorter season lead to increased showrooming on smartphones?

Smartphone Tablet

$209$195


m-Commerce buying can see significant variation across product categories, with digital content & tickets skewing mobile

Q4 2013 Share of Product Category Digital Commerce

Dollar Spending by Platform for Selected CategoriesSource: comScore e-Commerce & m-Commerce Measurement

Total Digital Commerce

Computer Hardware

Consumer Electronics

Apparel & Accessories

Books & Magazines

Digital Content & Subscriptions

Event Tickets

60% 65% 70% 75% 80% 85% 90% 95% 100%

88%

96%

93%

90%

85%

78%

71%

8%

3%

4%

6%

11%

15%

22%

4%

1%

3%

3%

5%

7%

6%

% Desktop % Smartphone % Tablet


Key Takeaways• The Digital Omnivore has emerged

• Americans now spend more time on mobile platforms (smartphones + mobile) than on desktop computers

• The leading retail properties now see a third of their monthly audiences coming exclusively from mobile platforms

• Retailers and marketers MUST have a mobile strategy, but don’t forget legacy media

• Mobile search and advertising growing rapidly in importance 75

Consumers are accessing a broader variety of local content, with apps growing faster than browser

Almost 80% of mobile searches end in a purchase, with 75% occurring in-store

Spending on mobile advertising surging and now equal to banner ads

• Successful multi-platform marketing can mean the difference between realizing valuable opportunities vs. suffering damaging consequences

• Mobile devices have helped accelerate the movement of pricing power to the consumer

• Mobile devices impacting both offline and online buying decisions

• While somewhat limited, m-Commerce growing rapidly – but importance varies substantially across product categories

For info about the proprietary technology used in comScore products, refer to http://comscore.com/About_comScore/Patents

Thank you!

For copy of slides, please email:

[email protected]

Date post:	10-May-2015
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LSA|14: Gian Fulgoni, Executive Chairman and Co-Founder, comScore

Marketing