How are tablets changing consumer behaviour in retail?

An overview of the tablets market and commercial usage. February 2013

How are tablets changing consumer behaviour in retail?

Table of Contents Short summary

Summary items 1. Device and platform market overview 2. Market sizing & growth drivers 3. Consumer engagement 4. Tablet integration in mobile/online strategy 5. Tablet design best practices

Each platform has a different value proposition and maturity stage

Platforms and device summary
iOS (Apple)

Android (Google)

Market leader. Has the most applications, users and sales out of the entire tablet industry. Over 550,000 apps available. Over 275,000 designed specifically for the iPad, most popular applications are available Exclusively on Apple hardware platform. Full compatibility with iTunes and the Apple range of products product ecosystem.

Second in overall market share. Android tablets offer lower prices and good value to their consumers. Over 675,000 apps on the Play Store. Full integration with Google products and services. Wide variety of form factors and manufactures to choose from. Best value in hardware-to-price ratio.

Windows 8 (Microsoft)

Kindle (Amazon)

New player in the tablet space. Very few users and sales not yet released. Full integration with the Microsoft ecosystem. Best implementation of the Office software suite on a tablet, but small app ecosystem due to recent introduction. Multiple devices and manufactures to choose from.

Differentiated market positioning. Positions on the lower end of pricing with subsidized hardware Full support of Amazon Kindle books which sync across devices. A key device in the Amazon Prime ecosystem. Ability to run Android apps and full integration with the Amazon ecosystem, low price.

Sources: Uniqloud research

Tablet ecosystems are growing rapidly and are becoming relevant very quickly
Market size and segments
device shipment (millions) 300 250 200 150 100 50 0 2010 2011 2012 2013 2014 2015

Forecast: Shipment of Tablets vs. Computers

Forecast: Market share by OS

Market share (%) 100% Laptop Desktop Tablet Netbooks 80% 60% 40% 20% 0% 2011

4% 32%

8% 34%

10% 35%

29%

11% 36%

Other Microsoft Android iOS

67%

61%

55%

51%

47%

2012

2013

2014

2015

Desktop PCs: Tablet sales are estimated to overtake Desktop sales by 2016. Netbooks are already being cannibalized by Tablets, there is no growth projected in Netbooks. Laptops are not cannibalized by Tablets as they are viewed as complementary products in an increasingly mobile world.

Apple was the early mover when opening the mass market with the iPad, jumping to a 60-70 % market share in 2011, which is now declining. Android has gained significant traction due to Nexus product line expansion and third party manufacturers. They are picking up on Apple in terms of market share and are expected to reach 40% in 2016 Windows 8 is just entering the stage and is expected to introduce change. As of early indications, it shows only slow momentum.

Sources: MorganStanley, Gartner

Consumers engage with tablets in multiple ways

Consumer engagement survey results
Productivity

46% of respondents were using their tablets for professional purposes 20% of tablet owners use their devices to create or edit files regularly 54% use email and 39% use social networking services daily 74% use their tablets for composing and replying to emails 78% use their tablets to search for shopping 72% of tablet owners make purchases from their devices on a weekly basis

Networking

Commerce

Research

78% use their tablets to search for information 77% read reviews, 63% compare prices and 65% compare product information on their device

Entertainment

84% of tablet users use their device for gaming, 46% read e-books and 51% consume entertainment Games 90% of the top10 paid downloads on the App Store
Sources: Accenture, Google, EmergingSpaces, MorganStanley, Gartner

Consumers endorse tablets for ECommerce more than mobiles

ECommerce
Web
According to Monetate, tablet users convert almost 3x better than Mobile phone users.

Tablet app monetization

According to Distimo, customers seem to be willing to pay higher prices in the Apple App Store for iPad compared to the iPhone store.

In Q2 2012, 7.2% of all Ecommerce website visitors were using tablets; 9 out of 10 tablets were iPads Traffic on Ecommerce sites from tablets increased 348 percent in the first quarter of 2012 compared to the same quarter last year

Average selling price for iPad apps in 2012 was $3.42, compared to $1.86 in the iPhone app store iPad Apps for Navigation, Productivity and Business are most expensive with a price average of $6 12

Ecommerce Conversion Rate by Device (Q1/2 2012, global)

3.19% 3.54% 3.03% 2.10% 1.12% 0.00% 1.00% 2.00% 3.00% 4.00% Kindle Fire Smartphone Traditional PC/ Laptop Android Tablet iPad

App store (mobile + tablet) revenue growth

+19% 120 100 80 60 40 20 0 Jan 2012 iOS Nov 2012 Google Play +311%

Apples iOS App store generates 4x more revenue than Google Play Google Play catches up with a much higher growth rate

Sources: Monetate, Distimo, App Annie

Maturity stages of mobile & tablet adoption for consumer facing retail business
Sample for mobile strategy maturity levels
Characteristics
TRIAL

Technical solution (example)

Simplified app: Cost-efficient app for one popular platform, reduced functionality (e.g. nontransactional, engage a specific customer segment), little or no marketing

External agency development, HTML-based or native standalone app, minimized risk by separation from core in-house applications & infrastructure Native app/ mobile website, basic integration with core systems and partial inhouse capacities Adaptive user frontends across devices, integration with core systems, skills and frameworks go in-house and become mission-critical No separation between mobile and non-mobile, deep integration of skills, technology and methodology Build a deep and diversified skillset in-house to cover multiplatform, in order to react to business requirements quickly across all platforms

FULL FUNCTIONALITY

Complete App: Fully functional and transactional app/ mobile optimized website, targeted towards mainstream customers, start marketing to a broad audience Expansion: Mobile/ tablet becomes a significant part of business volume & strategy, coverage of multiple mobile/ tablet platforms, redundancy & operational overhead require more efforts and deeper integration Integration of mobile, tablet and non-mobile efforts. Adherence with cross-platform strategy, functional changes go by default to all platforms, deep integration and analytics across all frontends Mobile first becomes the main business driver and is permanently on the management mindset, primary target for functional and business changes are mobile platforms

MULTIPLATFORM

CONVERGENCE

MOBILE FIRST

Sources: Uniqloud research

Tablet design is guided by simplification of content, focus on essential functionality and clear, aesthetic and consistent design
Tablet design best practices (1/2)
Challenges

Solution approach

1. Speed & Connectivity

Mobile usage depends on limited bandwidth and unsteady connectivity Web page slow to load is a top mobile frustration point for users Errors with Flash content on iOS

Eliminate redirects, reduce page & image sizes Lightweight JavaScript libraries Use HTML5 features like content loading, caching, CSS3 tags Consider cloud-based caching services for globally minimized latency and load times Focus on key content items and functions, eliminate least used content Clear distinction between information and action items Adaptive interfaces hide advanced or irrelevant functionality

2. Partial attention

Users use the tablet with partial attention and frequent interruptions Cluttered screens and complex interfaces with many small elements become a distractor Users expect Apps to be consistent in UI concepts and simplicity of usage

3. Onscreen direct manipulation

On-the go usage, distraction and instable environment: One hand holds the tablet, one hand manipulates screen Fat-fingered direct manipulation is less accurate and more casual than traditional mouse/keyboard

Minimum button size 44x44px, min. 8 pix spacing between elements Support for common touch gestures (swipe, tap, etc.) Smart input error handling, easy access to undo or correct entry Make content responsive on touch

Sources: Keynote research, Luke Wroblewski, Zmags

The complete market overview contains a 21 page Powerpoint presentation and a comprehensive Excel research sheet

Presentation

Research sheet

21 page Powerpoint/ PDF presentation Fully reusable Source URLs are embedded on each slide in the comments section Embedded charts with figures easily accessible

Sheets for market sizing & segmentation, device overview, user behavioral studies, information sources Complete excel model for market growth and sizing with documented assumptions Link URLs to 100+ sources: Whitepapers, Studies, Presentations, News announcements, Blogs, Twitter, YouTube

Buy the full market overview from http://www.uniqloud.com with flexible license models for individuals, small teams and corporate customers

How are tablets changing consumer behaviour in retail?

Table of Contents 1. Video overview 2. Device and platform market overview 3. Market sizing & growth drivers 4. Consumer engagement 5. Tablet integration in mobile platform strategy 6. Tablet design best practices
A game of tablets

Platform and device summary, device category overview Market size & segments, tablet market growth drivers, App ecosystem growth Consumer tablet usage patterns, engagement survey results, tablets in Ecommerce, Social media & Networking, Publishing and Advertising, Product research, Productivity, Gaming Mobile strategy maturity model, Coverage of mobile platform matrix Best Practices, Twitter Case Study

Preview full market overview presentation

How are tablets changing consumer behavior in retail?
Table of Contents

1. Overview video a game of tablets

How are tablets changing consumer behavior in retail?

An overview of the tablets market and commercial usage. February 2013

1. Video overview 2. Device and platform market overview 3. Market sizing & growth drivers 4. Consumer engagement 5. Tablet integration in mobile platform strategy 6. Tablet design best practices

A game of tablets

Platform and device summary, device category overview Market size & segments, tablet market growth drivers, App ecosystem growth

http://youtu.be/DAJPvNYZw7o?hd=1
Consumer tablet usage patterns, engagement survey results, tablets in Ecommerce, Social media & Networking, Publishing and Advertising, Product research, Productivity, Gaming Mobile strategy maturity model, Coverage of mobile platform matrix Best Practices, Twitter Case Study
!

The tablet industry is taking off in terms of sales and market penetration. Each competitor is positioned with a unique strategy and approach. How companies use the tablet platform will play a big role in their success.

Apple is the first mover and market leader. The iPad is well received by consumers and tightly integrated in Apples product portfolio Google has built with Android an open and more diverse tablet platform, which gains rapid market share and relevance. Amazon is with the Kindle well-positioned in the lower cost segment and has a wide set of media offerings Microsoft is the newcomer with an enterprise friendly product.

Sources: YouTube!

2. Each platform has a different value proposition and maturity stage

Platforms and device summary
iOS (Apple)
!

2. Tablet form factors fill the gap between mobile and laptop
Device category overview

3. Tablet ecosystems are growing rapidly and become relevant very quickly
Market size and segments
Forecast: Shipment of Tablets vs. Computers device shipment (millions) 300 250 200 150 100 50 0 2010 2011 2012 2013 2014 2015
!

Forecast: Market share by OS

Market share (%) 100% Laptop Desktop Tablet Netbooks 80% 60% 40% 20% 0% 2011
!

Android (Google)
!

3-5 inches

6-7 inches

7 inches 8-9 inches 9 11 inches

Market leader. Has the most applications, users and sales out of the entire tablet industry. Over 550,000 apps available. Over 275,000 designed specifically for the iPad, most popular applications are available Exclusively on Apple hardware platform, Full compatibility with iTunes and the Apple range of products product ecosystem. easy to use

Second in overall market share. Android tablets offer lower prices and good value to their consumers. Over 675,000 apps on the Play Store. Full integration with Google products and services. Wide variety of form factors and manufactures to choose from. Best value in hardware-to-price ratio.

4% 32%

8% 34%

10% 35%

29%

11% 36%

Other Microsoft Android iOS

67%

61%

55%

51%

Smartphones
!

E-Readers
!

Small tablets
! ! !

Full-sized tablets
!

Windows 8 (Microsoft)
!

Kindle (Amazon)
! !

New player in the tablet space. Very few users and sales not yet released. Full integration with the Microsoft ecosystem. Best implementation of the Office software suite on a tablet, but small app ecosystem due to recent introduction

Differentiated market positioning. Positions on the low-end of pricing with subsidized hardware Full support of Amazon Kindle books which sync across devices. A key device in the Amazon Prime ecosystem. Ability to run Android apps and full integration with the Amazon ecosystem, low price.

! ! !

Large screen smartphones with high resolution. iOS: iPhone 5 Android: Galaxy Note II, etc. Windows 8: ATIV S, Lumia 920, etc. Optimized for: Mobile & casual use. Quick information search. $300 - $700

With e-Ink display, e-Readers are optimized for reading e-books under any condition. Examples: Amazon Kindle, Nook Simple Optimized for: Battery life, sharp text, front-lit screens, comfortable reading. $50-$180

! !

Portable design for ultimate mobility. Examples: Nexus 7, Kindle Fire, iPad mini Optimized for: Lightweight power, one hand operation with full tablet features. Good balance between portability and convenience for reading, gaming, etc. $199 - $659

Portable power. These tablets have the best screens, fastest hardware. Designed to bridge laptop use and mobile use. Examples: Kindle Fire HD, Nexus 10, iPad, Surface RT Optimized for: Video, web surfing, document review. $299 - $829

Netbook & Notebooks

!

47%

Multiple devices and manufactures to select from.

Full power processors provide the complete web experience. Examples: MacBook Air, Surface Pro, Chrome Books, etc. Optimized for: Document editing, multitasking, media creation. $199 - $1299

2012

2013

2014

2015

Desktop PCs: Tablet sales are estimated to overtake Desktop sales by 2016. Netbooks are already being cannibalized by Tablets, there is no growth projected in Netbooks. Laptops are not cannibalized by Tablets as they are viewed as complementary products in an increasingly mobile world.

Apple was the early mover when opening the mass market with the iPad, jumping to a 60-70 % market share in 2011, which is now declining. Android has gained significant traction due to Nexus product line expansion and third party manufacturers. They are picking up on Apple in terms of market share and are expected to reach 40% in 2016 Windows 8 is just entering the stage and is expected to introduce change. As of early indications, it shows only slow momentum.

Sources: Uniqloud research!

Sources: Uniqloud research!

Sources: MorganStanley, Gartner !

3. Tablets both enlarge and cannibalize the market for computing devices
Tablet market growth drivers
INCREMENTALITY
Nielsen: Tablets [..] are relatively easy to use and a very appealing product for older demographics
! !

3. Apples App ecosystem is leading in monetization, but Google Play is catching up

App ecosystem growth
Apple ! Apple had an early start in establishing their ecosystem and is leading in monthly app store revenues (4x higher in Nov 2012 than Google Play) ! With 180,000 iPad apps in the US presumably the biggest tablet specific App store Android ! Android has quickly gained momentum and taken significant market share. Amongst other factors, Google Play takes its momentum from strong growth outside the US. Tablet specific numbers are not disclosed 2010 year 2011 2012 2013 Amazon ! Amazon focuses on media content, such as video, music and eBooks. Beyond that, Distmo reports 50,000 apps by Nov 2012 in the US Amazon App store. Windows Microsoft Windows 8 was recently released in Oct 2012. ! As of Nov 2012, more than 20.000 apps are available in the App Store, 87% of which are free. The launch of Windows 8 tablets is very recent and no tablet specific numbers have been released.
!

4. Consumers use tablets mostly at home as casual couch device

Consumer tablet usage patters
Time distribution for tablet usage by location

CANNIBALIZATION
MorganStanley estimates that 20-30% of tablet sales will cannibalize PC sales
! ! !

Number of Apps (thousands) 1200 1000 800 600 400 200 0

Global App Marketplaces (mobile + tablet)

Secondary/ Tertiary device: Add-on device for existing users of computers & smartphones Unexposed: Improved usability and lower price points expands the user base towards previously uncomputed audiences, such as seniors and children Productivity: Portable productivity device for presentations, meeting notes, etc.

Consumer: Replace regular computers for casual and media consumption oriented use cases Gaming: Replace dedicated devices for gaming Mobility: Replace mobility computing, dedicated devices and lightweight clients with web apps, e.g. in customer-facing roles (sales, cash registers)

WHERE WHEN HOW

Sources: Nielsen, ABI Research!

! ! ! !

Watching TV/ Couch: 30% Lying in Bed: 21% Shopping/ Running Errands: 13% With Friends/ Family: 10%

Top usage times for tablets (% of consumer use tablet for general & social media): ! ! ! ! Wakeup: 28% for social media, 16% for general use TV-time: ~30% for social media & general use After work: 28% for social & general media Waiting times: ~ 20% for social media & general use

Device market penetration* forecast (US) Tablet Smart phone Laptop Desktop
10% 20% 30% 40% 6% 13% 2010 2012 27% 2014 25% 2010 44% 2012 57% 2016 65% 2014 55% 61% 68% 2010 2012 2014 54% 62% 2014 2010 50% 60% 70% 97% 2016

Tablet penetration grows faster than any other device. Uniqloud estimates that the penetration ceiling in Western markets may be reached between 60% and 80%. Smartphones penetration ceiling is driven beyond 100% as people use multiple phones across carrier contracts and for business/ personal use Laptops replace desktop computers, while desktop computers have reached a penetration ceiling at 60-70%.

Apple iOS App Store Android: Google Play Store

Uniqloud opinion Targeting multiple app ecosystems for smartphones and tablets is costly and difficult for publishers, retailers and developers. In the long run, there may be only 1-2 leading app ecosystems that are sustainable for mainstream business.

Change in consumption habits ! Second screen device while watching TV: Consumers use the tablet for product/ ad research and social networking ! TV: 14% of tablet users watch more TV than before, 24% watch less ! Print: 17% of tablet users read more print than before, 32% read less

80%

90%

Sources: Google, U.S. Census, MorganStanley , PEW Internet

*) 100% penetration represents one device per adult

!
Sources: Forrester, Gartner, Statista.com, Distimo App Annie!

Preview full market overview presentation

4. Consumer engage with tablets in multiple ways
Overview of consumer engagement survey results
Productivity
! !

4. Consumers endorse tablets for ECommerce more than mobiles

ECommerce
Web
According to Monetate, tablet users convert almost 3x better than Mobile phone users.

4. Social media usage is one of the key applications for mobile devices, including tablets
Social media & Networking
Social media growth is driven by mobile and tablet usage1
! 30% of consumers time on mobiles and tablets is spent on social media sites/apps ! Mobile app usage accounts for 1/3 of all social media activity ! Time spent on social media via apps is significantly higher than via mobile web

Tablet app monetization

According to Distimo, customers seem to be willing to pay higher prices in the Apple App Store for iPad compared to the iPhone store.
!

46% of respondents were using their tablets for professional purposes. 20% of tablet owners use their devices to create or edit files regularly. 54% use email and 39% use social networking services daily. 74% use their tablets for composing and replying to emails. 78% use their tablets to search for shopping. 72% of tablet owners make purchases from their devices on a weekly basis.

Top 5 social networks on mobile/tablet1 via app via mobile web

! ! ! ! ! Facebook Twitter Foursquare Pinterest Google Latitude ! ! ! ! ! Facebook Twitter Blogger Tumblr Reddit

Networking
! !

In Q2 2012, 7.2% of all ecommerce website visitors were using tablets; 9 out of 10 tablets were iPads Traffic on ecommerce sites from tablets increased 348 percent in the first quarter of 2012 compared to the same quarter last year.

Average selling price for iPad apps in 2012 was $3.42, compared to $1.86 in the iPhone app store iPad Apps for Navigation, Productivity and Business are most expensive with a price average of $6 12

Commerce
! !

Ecommerce Conversion Rate by Device (Q1/2 2012, global)

3.19% 3.54% 3.03% 2.10% 1.12% 0.00% 1.00% 2.00% 3.00% 4.00% Kindle Fire Smartphone Traditional PC/ Laptop Android Tablet iPad

App store (mobile + tablet) revenue growth

+19% 120 100 80 60 40 20 0 Jan 2012 iOS Nov 2012 Google Play +311%
! !

Social user growth on mobile and tablet

Total users Mobile users 604m +61% YoY 130-140m +90-100% YoY 19.2m +9500% YoY 10.4m (apps only) iPad users 48m +860% YoY n/a n/a n/a

Uniqloud opinion Social media usage on tablets vs. mobile ! Facebook usage is equally popular, different usage contexts (at home vs. on the go) define the device preference ! Pinterests visual concept is more suitable for tablets users, hence we assume a strong tablet penetration ! Twitter & Foursquare are rather on-the-go/ geolocal services, which may result in a stronger mobile penetration than tablet

Research
! !

78% use their tablets to search for information. 77% read reviews, 63% compare prices and 65% compare product information on their device.

Apples iOS App store generates 4x more revenue than Google Play Google Play catches up with a much higher growth rate

Facebook (Oct 2012) Twitter (Dec 2012) Pinterest (US, Jul 2012) Foursquare (Jul 2012)

1.0bn +25% YoY 200m +70% YoY 46m +1600% YoY 23m +111% YoY

Entertainment
! !

84% of tablet users use their device for gaming, 46% read e-books and 51% consume entertainment. Games 90% of the top10 paid downloads on the App Store.
Sources: Accenture, Google, EmergingSpaces, MorganStanley, Gartner !

!
1) 2012 survey amongst U.S. consumers!

Sources: Monetate, Distimo, App Annie !

Sources: Nielsen, Keynote Systems, Enders Analysis!

4. Publishers and advertisers are most prepared for iOS as a commercial platform
Publishing and Advertising for tablets
Publishing adoption
AAM says for the first time [in 2012], publishers are developing more Apps for the iPad than the iPhone.

4. Research and Pre-Commerce: Tablets become decision devices as research tasks shift from computers to tablets.
Research activities on tablets along the marketing funnel

4. Tablet productivity tools are well-established with consumers and will be increasingly adopted in business environments
Productivity
Consumer Business
! On average, 46% of respondents were using their tablets for professional purposes. ! Around 45% of users who use apps on their tablets have apps which are used for productivity and work completion.

Tablet advertising matures quickly

ABI Research: 77% of users interact with ads whilst using a tablet compared to only 53% on smartphones AWARENESS

Pre-purchase activities on tablets

! !

! Reading: 30% of tablet users spend more time reading after purchasing a tablet than before. ! Learning: By 2014, 1 in 5 students will rely solely on etextbooks ! Monetization: Increasing trend to monetize content via Paywalls and new pricing models (content & advertising) Publisher coverage (%) 100% 80% 60% 40% 20% 0% iPad iPhone Android Platform Kindle 2011 2012

! Tablet-centric activities: Consumers prefer tablets for working, online shopping, reading print and video watching over smartphones. ! iOS users show most engagement with advertising

INTEREST

! !

78%: Search for information 77%: Read reviews 65%: Compare product information 63%: Compare prices

Key influence factors for mobile purchase decisions on tablets

! ! ! !

88%: Friends 71%: Emails from Companies 68%: Online Ads 52%: Facebook

! Tablets are a tertiary device in many households, supplementing PCs and smartphones ! Personal data such as documents, communication, Pictures, Video, Music is accessed from multiple devices drives utilization of online storage & services

EVALUATION

Popular Consumer Productivity Use Cases Post-purchase activities on tablets and mobiles
Productivity use cases (Top-selling iPad app examples): ! File storage (Dropbox, Google Drive, Box.net)

Tablet adoption in business environments (2012)

20% 2% 10% 22% 24% Already Deployed This Year Next Year Within Two Years More Than Two Years No Plans 22%

Content targeting for mobile platforms (North America)

Mobile advertising spend forecast (US, by device)

80% 60% 40% 20% 0% Mobile phones Tablets, ereaders other mobile

COMMITMENT

Social care: one in three social media users prefer social media customer service over contacting a company by phone. Sharing & support channels: Consumers use predominantly the following channels to comment or ask questions: ! Facebook (personal & company page) ! Official company Blog ! Twitter ! YouTube ! Personal Blog

REFERRAL

! Music/ Video: Cloud music hosting (Google, Amazon, ..) ! Online office/ collaboration: Google Drive, CloudOn, Microsoft Online Office, etc. ! News/ Information: Flipboard ! Sketching/ taking notes: Evernote, Paper, Write2, Doodle Buddy,

REPEAT

$2.1bn

5 year growth in mobile Ad spend

$14.8bn

Sources: Alliance for Audited Media, IDC, ABI Research!

Sources: Alliance for Audited Media, Adobe, Nielsen, Accenture!

Sources: Dimensional Research for Model Metrics, Distimo

4. Gaming is the biggest monetization driver for Apps

Gaming
Gaming
Flurry Analytics: In 2012, [app revenue] will approach $10 billion, with games taking over 80% of the pie. Consumers spend 71% more of their time using games on tablets [than] [!] on smartphones.
!

6. Maturity stages of mobile & tablet adoption for consumer facing retail business
Sample for mobile strategy maturity levels
Characteristics
TRIAL
!

6. Maturity stages of mobile & tablet adoption for consumer facing business
Challenge: Coverage of the mobile platform matrix

Top Grossing iPad Gaming Apps of 2012

1. DragonVale Management/ Simulation

Technical solution (example)

!

Raise, feed and breed lovable dragons, build and manage a dragon park 2. Slotmania HD/ Slotmania Slot/ Virtual gambling
!

Simplified app: Cost-efficient app for one popular platform, reduced functionality (e.g. nontransactional, engage a specific customer segment), small or no marketing

External agency development, HTML-based or native standalone app, minimized risk by separation from core in-house applications & infrastructure Native app/ mobile website, basic integration with core systems and partial inhouse capacities Adaptive user frontends across devices, integration with core systems, skills and frameworks go in-house and become mission-critical No separation between mobile and non-mobile, deep integration of skills, technology and methodology Build a deep and diversified skillset in-house to cover multiplatform, in order to react to business requirements quickly across all platforms iOS App

Platform matrix coverage considerations

Mobile
Top commercial mktshare, mature market Top mkt share & growth in devices Very early stage, specific target group Mainstream and feature phone volume

Technical solution
Native app: Full utilization of all device features, best look & feel at highest cost in terms of custom effort per platform App with embedded HTML: App encapsulates web app content & functionality. Hybrid solution offering a tradeoff between costs/efforts per platform and multi-platform App coverage

Tablet
Top engaged customer base, high growth Diverse, early stage/ top growth customer base Very early stage, specific target group Capture lower engaged & casual audience
!

! !

Kids (age 6-12) most wanted Christmas gifts in 2012 were iPad (44%), iPod Touch (30%) and iPhone (27%), followed by Computers, gaming consoles, etc Key business model is freemium: Basic game is free to play, premium upgrades are paid Mobile social gaming is targeting a much broader demographic than traditional gaming

Play a large amount of different slot machine themes 3. Kingdoms of Camelot: Battle for the North Strategy Build a medieval kingdom and battle other players 4. Modern War Social turn-based MULTIPLATFORM FULL FUNCTIONALITY

Complete App: Fully functional and transactional app/ mobile optimized website, targeted towards mainstream customers, start marketing to a broad audience, basic Expansion: Mobile/ tablet becomes a significant part of business volume & strategy, coverage of multiple mobile/ tablet platforms, redundancy & operational overhead require more efforts and deeper integration Integration of mobile, tablet and non-mobile efforts. Adherence with cross-platform strategy, functional changes go by default to all platforms, deep integration and analytics across all frontends Mobile first becomes the main business driver and is permanently on the management mindset. primary target for functional and business changes are mobile platforms.

Access to the biggest commercial target audience, leading penetration particularly for high value user engagement on tablets Largest & fastest growing target audience, cross platform, penetration particularly with cost-aware user segments is interesting Highly focused and early adopter target audience, easy integration with Microsoft environment

Android App

Mobile Freemium Games: Money spent by age and sex

30% 20% 10% 0% 13-17 28-24 25-34 35-54 55+
Sources: Flurry, Apple, Nielsen

Build a military empire, conquer the world, forge alliances and destroy the enemies 5. Mystery Manor: Hidden Adventure HD Males Females Hidden object

Windows8 App

29% 20% 16% 12% 7% 1% 1%

Hidden object game, complete quests in a mystic mansion inhabited by people, monsters and ghosts 6. Clash of Clans Strategy

CONVERGENCE

Mobile Web

9% 3% 2%

Combat strategy game, lead your clan to victory. Build your village, train your troops and battle with other players.

MOBILE FIRST

Maximum reach with mainstream audience, mobile web is the key to reach lower engaged user segments across all platforms Most economic solution in terms of cross-platform maintenance

Sources: Uniqloud research!

Sources: Uniqloud research!

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7. Tablet design is guided by simplification of content, focus on essential functionality and clear, aesthetic and consistent design
Tablet design best practices
Challenges
!

7. Tablet design is guided by simplification of content, focus on essential functionality and clear, aesthetic and consistent design
Tablet design best practices
Challenges
!

7. Twitter simplified its mobile site and created a higher compatibility based on user behavioural analytical findings
Example: Twitter mobile website redesign, July 2012
Before After

Solution approach
! ! ! !

Solution approach
! !

1. Speed & Connectivity

! !

Mobile usage depends on limited bandwidth and unsteady connectivity Web page slow to load is a top mobile frustration point for Errors with Flash content on iOS

Eliminate redirects, reduce page & image sizes Lightweight JavaScript libraries Use HTML5 features like content loading, caching, CSS3 tags Consider cloud-based caching services for global Focus on key content items and functions, eliminate least used content Clear distinction between information and action items Adaptive interfaces hide advanced or irrelevant functionality

4. Minimize data entry

User registration and extensive text entry are key reasons for dropoff during purchase/ checkout On screen keyboard is harder to use, errors are slower to correct

Simplify user registration, use social connect features Remember entered text, dropdowns to autopopulate content, predict & autocomplete text Utilize GPS/ IP-address/ camera to replace & minimize data entry Highlight key items such as price, shopping cart items and buy button Avoid scrolling and keep checkout flow as short as possible Allow guest checkout and alternative payment methods

! !

2. Partial attention

Users use the tablet with partial attention and frequent interruptions Cluttered screens and complex interfaces with many small elements become a distractor Users expect Apps to be consistent in UI concepts and simplicity of usage

! ! !

5. Optimize checkout in eCommerce

! !

Many checkout processes are hard to use on mobile devices and impact conversion rate Compulsory user registration with detailed profile to complete Navigation elements/ menus/ popups are not fat-finger friendly

! ! !

3. Onscreen direct manipulation

On-the go usage, distraction and instable environment: One hand holds the tablet, one hand manipulates screen Fat-fingered direct manipulation is less accurate and more casual than traditional mouse/keyboard

! ! ! !

Minimum button size 44x44px, min. 8 pix spacing between elements Support for common touch gestures (swipe, tap, etc.) Smart input error handling, easy access to undo or correct entry Make content responsive on touch

! !

6. OS specific & popular App patterns

Devices and OS platforms have different functionalities & hardware features Most tablet users are avid users of social networking such as Facebook or Twitter & popular System apps

! ! !

Dynamically resize and rearrange screen elements in landscape mode Multi-touch elements, gyroscope and device positioning features Reuse application patters (drag to refresh, etc.) from facebook etc. and comply with expected application behaviour

! ! ! ! !

Statistical analysis of mobile usage behaviour Sign-up/ Sign-in pain points Most important user interaction patterns Iterative development Compatibility testing with a wide array of mobile devices

! ! !

Page size reduction, faster load times Multi-browser support, CSS3/ HTML5 standard adoption, enable JavaScript turned off browsers Dynamic scaling from 240x240 to large resolution screens Look & feel brand-consistent, even without images loaded

Sources: Keynote research, !"#$%&'()*$+,#-.%Zmags%

Sources: Keynote research, !"#$%&'()*$+,#-.%Zmags%

Sources: Twitter%