This document summarizes mobile trends and innovations, discussing emerging devices and technologies like wearable tech and the internet of things. It also covers trends in mobile content like video and apps, as well as mobile commerce. Some key points include: smartphones and tablets are becoming the dominant way people consume content; video consumption is rising significantly on mobile; mobile app usage and downloads are growing rapidly; and mobile commerce, especially on tablets, is expected to nearly quadruple by 2018 and account for over 25% of all online sales. Marketers are advised to focus on location-based services, personalization, and responsive design to provide added value to consumers on mobile.

1. Mobile Trends & Innovations
Hamutal Schieber | October, 2014

2. Introduction
• Consumers are becoming increasingly dependent on mobile technology. Consumers not only own more
mobile devices, but they also use them more often for an increasing number of tasks.
• Marketers are searching for ways to grasp opportunities stemming from the extraordinary mobile
penetration and usage patterns. Mobile devices provide easier ways for marketers to provide added-values
to the consumer and shopper, making their lives easier.
• The following presentation discusses several trends and enablers, mainly:
Emerging Devices &
Technologies
• Internet of Things
• Wearable Tech
• Mobile TV
Consumer added values from
mobile
• health & wellness
monitoring
• Convenience & location
based services
• Money / time saving
• Entertainment and
education
• personalization
Marketing Best Practices
• Browsers vs. apps
• Gaming
• Payments
• Content
• Advertising
• commerce

3. Market Trend Mapping
Market Trends
• Smartphone & Tablet
• Wearable Tech
• Internet of Things
• Channel convergence
Mobile Content
• Video
• Growth of Apps
• Gaming
• Social
Mobile Commerce
• Research, m-commerce
• Mobile wallet
• Self service
Strategies to Provide Added Value
• Consumer health & wellness monitoring
• Convenience & location based services
• Money / time saving
• Entertainment and education
• personalization

4. Market Trend Mapping
Market Trends
• Smartphone & Tablet
• Wearable Tech
• Internet of Things
• Channel convergence

5. Mobile Penetration
• According to GSMA, the mobile industry has scaled
dramatically over the last decade.
• By 2020, the majority of the world’s population (56%)
is expected to have their own mobile subscription.
2003: 1 billion unique subscribers (1 in 6 people)
2013: 3.4 billion unique subscribers (47% of population)

6. Mobile Penetration
• eMarketer predicts that by the end of 2014, 1.76
billion people will own and use smartphones
monthly, up more than 25% over 2013. Just
under a quarter of the world's total population
will use smartphones this year, and by 2017,
more than a third of all people around the globe
will be smartphone users.
• By 2015, eMarketer estimates that 15 countries
worldwide will have seen more than half their
populations adopt smartphones.

7. Mobile Penetration
• According to KPCB, between 2013 and 2014
there had been a huge growth in mobile usage
share of web usage.

8. Mobile Penetration | By Device
• According to Gartner, global PC,
tablet, “ultramobile” and mobile
phone shipments are set to break
2.4 billion units in 2014,
and nearly 88 percent of that
number will be attributable to
mobile phones and tablets —
specifically devices built on
Google’s Android operating
system, which on their own will
account for nearly 1.2 billion
devices.
• Within mobile phones,
smartphones are very much
becoming the norm rather than
the rising trend. They will account
for 66 percent of all mobile sales
in 2014, and Gartner projects that
number to be 88 percent in 2018.
Gartner predicts the tipping point in favor of tablets will
happen in 2015, when there will be nearly 321 million
tablets shipped, versus close to 317 million PCs.

9. Mobile Penetration | By Region
• According to GSMA, the global unique subscriber base has
been growing at a rate of 7.3% per annum. Growth is
forecast to continue, but at a slower rate of 3.5% out to
2020.
• Unique subscriber penetration rates vary significantly
across regions. Europe has the highest penetration rates,
followed by North America and then the CIS.
Source: GSMA

10. Mobile Penetration | By Region
• Consumers in the Asia-Pacific region will account for more than half of all global smartphone
users this year, totaling 951 million. Western Europe is the second largest region of global
smartphone users with 196.6 million this year, eMarketer estimates.

11. Mobile Penetration | US & UK
• eMarketer expects 65.0% of US mobile phone
users, or 51.4% of the total population, to use a
smartphone at least monthly in 2014. That compares
with two-thirds of mobile phone users in the UK, or
53.7% of the total population.
• A recent Deloitte study found that 66% of UK
consumers state that they have their mobile device
with the all the time, and 34% state that their
smartphone / tablet is the first device that they reach
for when they want information on a product or
service.
• The over 55s will experienced the fastest y-o-y rise
in smartphone penetration. As a large percentage of
the population will be over 55 in 2014 (for instance,
25% of adults in the UK), this is a lucrative market.

12. Mobile Penetration | Wearable Tech
• The mobile user experience is breaking out of the classic phone form factor.
• Juniper Research expects worldwide spending on wearable devices to jump from $1.4 billion this year to
$19 billion by 2018.
• In another report, ABI Research claims that sales of wearable computing devices will exceed 485 million
shipments worldwide by 2018.
• And, per Ericsson, once the physicality of mobile payments is altered through wearable tech, mobile
wallets will be the idea providers of the necessary identity and value transfer infrastructure to make all
this scale.
• Garmin is one of the most dominant competitors in the wearable
tech sphere, with watches that track location, heart rate, speed and
other measurements.
• Nike, with Nike+ Fuelband, and Fitbit, are other dominant
competitors.
• Apple is now entering the field with iWatch.

13. Mobile Penetration | Internet of Things
• Internet of Things / IoT is a network of networks of uniquely identifiable
endpoints (“things”), that communicate without human interaction, using IP
connectivity. (IDC, 2014)
• IDC (2014) estimates that the IoT market revenue was $ 1,928 B in 2013,
expected to reach $ 7,065 B ($ 7 Trillion) by 2020.
Source: Gridley & Company, Jan. 2014

14. Mobile Penetration | Internet of Things
• LG’s tie-up with Line, the popular Asian messaging
service, allows customers to chat with LG’s
HomeChat suite of ovens, fridges and washing
machines. It even includes the ability to send
Line’s famous range of cartoon animal stickers to
home appliances.
• Alarm.com: The connected home platform
connects a wide range of supported devices
across the internet of things, through a cloud-based
services platform and a mobile app.

15. Market Trend Mapping
Mobile Content
• Video
• Growth of Apps
• Gaming
• Social

16. Mobile Content
• As a recent KPCB
report indicates,
smartphone and tablet
are becoming the
most significant
mediums for content
consumption.

17. Mobile Content | Video
• According to research from Digitalsmiths, just over 42% of internet users
in North America watched news video content on their smartphones, and
more than 36% watched previews for TV shows or movies.
• That compared with 30.9% of respondents who said they watched full-length
movies on their phones, and 27% who watched TV show reruns.
• eMarketer estimates that in the US alone, 72.1 million smartphone users
watched video on their devices at least monthly in 2013, a figure that will
rise to 86.8 million by the end of 2014.
• Mobile owners use devices in conjunction with tv
watching (multi-tasking)

18. Apps vs. Browsers
• Mobile app downloads are predicted to double
between 2013 and 2017 according to Juniper
Research.
• In Q4 2013, Nielsen found that US adult Android
and iPhone users were spending 65% more time
with mobile apps than they had just two years ago:
30 hours, 15 minutes in Q4 2013, vs. 18 hours, 18
minutes in Q4 2011. However, the average
number of apps owners used had barely risen over
the past two years, from 23.2 in Q4 2011 to 26.8 in
Q4 2013, indicating that users were spending more
time with the apps they had, as opposed to
downloading new ones.

19. Apps vs. Browsers | Motivations
• The main reasons for using apps, per April 2014 data from
comScore Mobile Metrix, are:
– Easy access
– Mobile optimization

20. Apps vs. Browsers | Leaders
• Data from app analytics provider Flurry
indicates that gaming still dominates
mobile usage with 32% of time spent on
iOS and Android devices, while Facebook
remained a strong second with 17% of
time spent on mobile.
• Facebook, combined with Twitter (1.5%)
and Social Messaging apps (9.5%) grew to
28% of time spent on mobile in 2014, up
from 24% last year, indicating the broader
shift from socializing on Facebook to
sharing within smaller, more private
messaging applications.

21. Apps vs. Browsers | Browser Success
• For some, however, browsers
actually claimed an overwhelming
chunk of time.
– Wikimedia Foundation sites –
88% of time spent done on a
browser
– Glam Media - 84% of time
spent done on a browser
• What makes these and other content
hubs a Browser success, are:
– Responsive design – a must
– Easy, quick access, and a great
User Experience

22. Apps vs. Browsers | Browser Strategies
• According to a Google Think study, if the mobile experience isn’t properly designed, then the
customer might leave or switch to a competitor’s site.
• The experience is reliant upon 6 major factors:
– Speed
– Usability
– Content
– Consistency
– Path to Purchase
– M-Commerce
• The main strategies to achieve these goals, per Google, are: responsive web design, dynamic
serving and separate sites.
• Google claims these lead to better search visibility, more effective campaigns and greater
brand value.

23. Apps vs. Browsers | Browser Strategies
Type Responsive Web Design Dynamic serving Separate sites
Description Same URL, Same HTML: Optimises
experiences across different screen sizes
without creating multiple websites. Responds
to screen size and orientation to adjust
images, layout and content visibility. Uses
touch-screen acts e.g. dragging, swiping.
Easier for people to share links that work well.
Same URL, Different HTML: Server
detects device type and presents
custom page on same URL. Pages
designed for any kind of device. Some
code maintenance on a per device
basis.
Different URL, Different HTML: Mobile site
independent of desktop site. Browser detects
if visitor is on a mobile device and redirects
them to the mobile site. Mobile sites tailored to
needs of mobile user.
Pros Single URL for a piece of content: Easier to
share/link to content and build URL equity
(SEO).
Content parity: Same content regardless of
device being used, providing streamlined user
experience.
No redirection: This will reduce load time.
Breakpoints can easily be added for new
screen sizes.
Fully customized device experience:
Content and layout created for a specific
user
segment.
Easier to make changes: Changes can
be limited to specific customer
segments.
Faster load times: Opportunity to
streamline and optimize content for
optimal load times.
Single URL: Builds brand equity across
devices and makes sharing easy
Fully customized to mobile users: Content and
overall experience created for a specific user
segment.
Easier to make changes: Changes can be
limited to the mobile version of a website,
other devices do not have to be considered.
Faster load times: Opportunity to streamline
and optimize content for optimal load times.
Cons Limited flexibility: Challenge to develop a fully
customized device-specific experience, and
fully address user’s context.
Content forking: Several sets of content
which can make management more
complex (unless CMS is used).
Multiple URLs: Sharing a web page requires
flawless redirecting integration.
Content forking: Two different sets of content
which can make management more complex.
Source: Google Think

24. Apps vs. Browsers | Responsive Web Design
• Athletic apparel retailer Champs Sports has seen its mobile commerce
sales increase 183% in two months, since implementing Responsive Web
design.
• Content is at the heart of Champs’ mobile efforts: the retailer has been
partnering with lifestyle publisher Complex Media to boost the content on
its own site and to drive traffic to its ecommerce platforms.

25. Apps vs. Browsers | Responsive Web Design
• According to Google Think, Plusnet
saw a rise in visits from
smartphones and tablets and
implemented a multi-screen
strategy, using responsive web
design (RWD) to build a new site
that works across devices and
screen sizes.
• The new site has resulted in online
sales via smartphone and tablet
devices growing tenfold year over
year, and "time to convert" has
decreased 40%.
Source: Google Think

26. Apps vs. Browsers | Separate Site
• According to Google Think, Since
moving to a separate site,
AutoTrader receives more than
30% of all traffic from users on
mobile devices.
Source: Google Think

27. Mobile Gaming
• A study by Smashing Ideas found that the number one reason for
Smartphone Gaming in the US, is stress relief.
• In addition, nearly one in five US females said they played
smartphone games to interact with friends and family, compared with
just 14% of male respondents. Males' No. 1 reason for playing with
pals, on the other hand, was fueled by competition, with 16% of men
saying they played because they liked to outrank their friends.
• More than eight in 10 respondents said they played games on a
smartphone or tablet at home.
While the mobile gaming market may
be expanding, time spent with the
activity is limited. Among US
smartphone and tablet gamers, the top
amount of time spent playing
smartphone or tablet games daily was
just 0 to 30 minutes, according to
Smashing Ideas.

28. Mobile Gaming
• Games are an important source of
revenue in mobile commerce.
• In the US, game in-app purchases
are estimated to reach $1.5 billion in
2014, while game downloads
generate $1.1 billion this year.

29. Mobile Gaming | Strategies
• Mobile gaming is far from being restricted to
classic game applications. In fact, many
companies now offer gaming features in their
apps, in order to increase consumer
engagement.
Keeping scores at the Aviva insurance app

30. Market Trend Mapping
Mobile Commerce
• Research, m-commerce
• Mobile wallet
• Self service

31. Mobile Commerce
• Data from eMarketer indicates that U.S. m-commerce sales on tablets
are soaring while the influence of smartphones on purchases grows:
U.S. retail mobile commerce sales (on smartphones and tablets,
including sales of digital goods but excluding sales of travel services
and event and movie tickets) will soar from $42.13 billion in 2013
(16.0% of total web sales of $263.31 billion) to $132.69 billion in 2018
(27.0% of $491.44 billion).
• In 2014, eMarketer expects $38.02 billion in sales on tablets
compared to $18.49 billion on smartphones; this already exceeds a 2-
to-1 ratio. By 2018, 72.6% of m-commerce will take place on tablets,
totaling $96.31 billion.
• Tablet sales are growing considerably faster than smartphone sales
in the UK, even though smartphone usage is far more common than
tablet usage, and is expected to account for two-thirds of total UK m-commerce
sales in 2014.
• eMarketer expects tablet-based retail m-commerce sales to more
than double from £9.28bn this year to £20.96bn by 2018.
Forrester, 2014

32. Mobile Commerce
• In the US, m-commerce constitutes a small share of
e-commerce sales.
• Goldman Sachs estimates that worldwide, mobile
commerce sales will account for almost half of total
web sales by 2018. That’s in large part because,
compared with the U.S., a much higher percentage of
Internet users in developing countries with huge
populations access the Internet via mobile devices.
• In any case, the importance of mobile is not only
for sales via mobile devices, but also stems from
the use of mobile in-store and its influence on
purchase made online.

33. Mobile Commerce | By Age Group
• The most active group for mobile commerce in the UK is 25 to 34 year olds, according to a
recent Deloitte survey. 50% of respondents reported browsing retailer websites from their
phone in the last week, and 21% reported buying goods from the phone.

34. Mobile Payments
• According to eMarketer, the significant jump in total and per-user
spending, will be driven by consumers adopting mobile
payments for a wider array of products and services
constituting an equally broad gamut of price points.
• Another important factor is the fact that payment enabling
devices are becoming more widespread, and they include
the mobile payment integration in the new iPhone by Apple.
Competing technologies include PAYM, NFC, BLE, MPOS,
QR Codes, MasterPass, Paywave, Pingit, Zapp and others.
• Electronics online retailer Newegg reported that
adding Google Wallet Instant Buy to its mobile
site, caused shoppers to convert 100% more often
compared to other payment options
• The PayPal app enables to make payments and
money transfers anytime, anywhere.

35. Mobile Payments | USA
• According to eMarketer, mobile proximity payments (i.e., as
transactions for goods or services made by scanning, tapping,
swiping or checking in with a mobile phone at the point of sale), will
top $1 billion in the US this year, before expanding rapidly to reach
an estimated $58 billion by 2017.
• Driven by consumers buying items like daily coffee via closed-loop
payment systems, as well as an increase in in bigger-ticket
purchases made via smartphones, mobile
• payment transactions more than tripled from 2011 to 2012 in the US,
eMarketer estimates, reaching $539 million last year.
• Still, the market is growing slower than previously expected, as
evidenced by eMarketer’s scaled-back estimates of user adoption
and transaction value from initial projections in October 2012. Delays
and adoption issues facing numerous mobile wallet initiatives, as well
as a congested landscape of competing technologies, materially
affect eMarketer’s outlook on mobile payment transaction values,
which will not top $20 billion until 2016. The previous forecast
predicted mobile payments would top $20 billion by 2015.

36. Market Trend Mapping
Strategies to Provide Added Value
• Consumer health & wellness monitoring
• Convenience & location based services
• Money / time saving
• Entertainment and education
• Personalization

37. Best Practice | Mobile Service
• Akbank Direkt is one of Turkey’s top mobile
banking application and an award winning
app, allowing to perform all money
transactions on the go.
• Hotels use mobile technology to create a
personalized self-service experience: smart
phone as a key, self-service check-in and
booking available 24/7.

38. Best Practice | Mobile Service
• Customers of German health insurer DKV can submit their invoices over iPhone, iPodTouch or iPad by simply
scanning the square QR code printed on the document into their device. The scanned data is encoded and sent to
DKV. The only requirement is that the correct barcode is printed on the doctor’s invoice.

39. Best Practice | Mobile Commerce
• JUST EAT revealed that its iOS and Android apps have reached the milestone of 1.3 million total downloads. During
2013, download numbers have increased by 500%.
• Users of the app are now able to save their card details, filter search results by cuisine and customer rating, write
their own reviews, and find nearby takeaways with new geolocation features.
• The result is an environment that empowers both restaurant and consumer. JUST EAT customers are able to use the
app to find the highest rated takeaway restaurants in their area and make informed decisions on where to place their
order. Meanwhile, small local restaurants have the opportunity to expand their customer base, enter the growing
online marketplace and compete with national takeaway chains.

40. Best Practice | Mobile Commerce
• US retail giant Target is pursuing an aggressive omnichannel agenda, and it views mobile as the bridge between the
online and physical worlds. In 2013, Target has been named 2013 Mobile Retailer of the Year. Target worked to
understand how its customers shopped and met them there, blurring the lines between channels.

41. Best Practice | Mobile Commerce
• Starbucks is seeing big results via mobile, with the
beverage giant generating more than three million
United States mobile payment transactions per
week.
• Starbucks reported that new mobile users are
embracing its mobile payments app because it lets
them track their loyalty status in an interactive way.
In October 2013, Starbucks’ mobile app surpassed
70M mobile payments transactions.
• The company recently announced its plans to
launch a mobile-based delivery service, tying the
app’s loyalty and payment plans.

42. Best Practice | Mobile Commerce
• Glasses.com offers a virtual try-on feature

43. Best Practice | Mobile Commerce
• Asos.com offers to sell unwanted clothes via the mobile app.
• eBay RedLaser – Barcode Scanner, Shopping assistant & QR
Code Reader.

44. Best Practice | Mobile Commerce
• On June, 2014, Amazon launched Fire, the first smartphone designed by
Amazon.
• It features two unique technologies - Dynamic Perspective and Firefly. The
Dynamic Perspective uses a new sensor system to respond to the way you
hold, view, and move Fire.
• The phone has two dedicated shopping/consumption functions, designed to
funnel more mobile commerce through Amazon.
• The Firefly button, Amazon's real-world shopping recognition technology:
Customers can use the phone's cameras to scan physical objects in the real
world, like a store, and Firefly will identify them, and then provide a channel
through which users may be able to buy the objects more cheaply.

45. Best Practice | Mobile Personal Assistant
• Organize your travel plans in one place with TripIt from
Concur: forward your travel confirmation emails to
plans@tripit.com and TripIt automagically creates a detailed
daily itinerary for every trip.
• Everything.me: creates a personalized phone, based on the
user’s preferences, time of day etc.

46. Best Practice | Mobile Socializing
• Glympse is a fast way to share your location safely using GPS tracking in real time with friends and family

47. The research was conducted by:
Hamutal Schieber
Schieber Research | Market Research & Competitive Intelligence
www.researchci.com | hamutal@researchci.com
Executive Summary. For the full research - please contact
Carmelon Digital Marketing
http://www.carmelon-digital.com
Thank You