Mobile, Social, & Local: The 3-Way Intersection of Future Commerce

1. Mobile Social & Local: The 3-way Intersection of Future Commerce Mike Boland Analyst BIA/Kelsey

2. Collision of Social, Local Mobile

3. Mobile + Social: Part of the Formula Source: ComScore

4. LBS/ Geo-social: The Story of 2010 2010: Foursquare, Facebook Places, check-in craze 2011: Revenue models in flux but starting to materialize Virtual prizes will lose novelty: need value exchange We’re at the “Frienster Stage” of LBS

5. Check-ins: Just the Beginning

6. What Have We Learned From Groupon? Appeal of driving tangible foot traffic Cost of acquiring a new customer is the new marketing Even better with proximity and immediacy of mobile/LBS Incremental opportunity for new users and merchants Already in motion: Groupon, SCVNGR and Foursquare

7. Local vs. National Mobile Ad Spend US$ Millions Source: BIA/Kelsey Note: Numbers are rounded.

8. MoLo Ad Performance xAD: 80% fill rates and 10% CTRs. Half of those clicks result in secondary actions such as phone calls WHERE :11% of clicks result in calls or directions Chitika: Locally targeted mobile ads clicked 64 percent more than non-locally targeted mobile ads

9. Using the Eyes and Ears of Mobile Image Credit: Google

10. Platforms, Platforms Platforms

11. It’s Not Just About Smart Phones… Source: ComScore

12. Questions and comments:Michael Boland | mboland@kelseygroup.com | 415.462.1935 Copyright © 2011 BIA/Kelsey. All Rights Reserved. This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under federal law. BIA/Kelsey disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.