An overview of the tablets market and commercial usage.

How are tablets changing consumer behaviour in retail?

February 2013

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

How are tablets changing consumer behaviour in retail?

Table of Contents – Short summary

Each platform has a different value proposition and maturity stage

iOS (Apple)

¤  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.

Android (Google)

¤  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)

¤  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.

Kindle (Amazon)

¤  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.

Platforms and device summary

Sources: Uniqloud research  

Tablet ecosystems are growing rapidly and are becoming relevant very quickly Market size and segments

Sources: MorganStanley, Gartner  

¤  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.

67% 61% 55% 51% 47%

29% 32% 34% 35% 36%

4% 8% 10% 11%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015

Market share (%)

Other

Microsoft

Android

iOS

0 50

100 150 200 250 300

2010 2011 2012 2013 2014 2015

device shipment (millions)

Laptop

Desktop

Tablet

Netbooks

Forecast: Market share by OS Forecast: Shipment of Tablets vs. Computers

Consumers engage with tablets in multiple ways

Sources: Accenture, Google, EmergingSpaces, MorganStanley, Gartner  

Consumer engagement survey results

Commerce ¤  78% use their tablets to search for shopping ¤  72% of tablet owners make purchases from their

devices on a weekly basis

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

Productivity ¤  46% of respondents were using their tablets for

professional purposes ¤  20% of tablet owners use their devices to create or

edit files regularly

Networking ¤  54% use email and 39% use social networking

services daily ¤  74% use their tablets for composing and replying to

emails

Consumers endorse tablets for ECommerce more than mobiles

Sources: Monetate, Distimo, App Annie  

ECommerce

Web ¤  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

App store (mobile + tablet) revenue growth

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

1.12%

2.10%

3.03%

3.54%

3.19%

0.00% 1.00% 2.00% 3.00% 4.00%

Traditional PC/Laptop

Android Tablet

iPad

Kindle Fire

Smartphone

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

Tablet app monetization

¤  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

0

20

40

60

80

100

120

Jan 2012 Nov 2012

iOS Google Play

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

compared to the iPhone store.

+19%

+311%

¤  Apple’s iOS App store generates 4x more revenue than Google Play

¤  Google Play catches up with a much higher growth rate

Maturity stages of mobile & tablet adoption for consumer facing retail business

Sources: Uniqloud research  

Sample for mobile strategy maturity levels

TRIAL

FULL FUNCTIONALITY

MOBILE FIRST

Characteristics

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

Technical solution (example)

¤  External agency development, HTML-based or native standalone app, minimized risk by separation from core in-house applications & infrastructure

MULTI-PLATFORM

¤  Complete App: Fully functional and transactional app/ mobile optimized website, targeted towards mainstream customers, start marketing to a broad audience

¤  Native app/ mobile website, basic integration with core systems and partial inhouse capacities

¤  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

CONVERGENCE

¤  No separation between mobile and non-mobile, deep integration of skills, technology and methodology

¤  Adaptive user frontends across devices, integration with core systems, skills and frameworks go in-house and become mission-critical

¤  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

¤  Build a deep and diversified skill-set in-house to cover multi-platform, in order to react to business requirements quickly across all platforms

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

¤  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

¤  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  

1. Speed & Connectivity

2. Partial attention

Challenges Solution approach

¤  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. On-screen

direct mani-pulation

¤  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

¤  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

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

Presentation

¤  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

Research sheet

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?

1.  Video overview “A game of tablets”

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

Mobile strategy maturity model, Coverage of mobile platform matrix

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

Best Practices, Twitter Case Study

Table of Contents

Preview full market overview presentation

An overview of the tablets market and commercial usage.

How are tablets changing consumer behavior in retail?

February 2013

How are tablets changing consumer behavior in retail?

1.  Video overview “A game of tablets”

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

Mobile strategy maturity model, Coverage of mobile platform matrix

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

Best Practices, Twitter Case Study

Table of Contents

1. Overview video – a game of tablets

http://youtu.be/DAJPvNYZw7o?hd=1

!  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 Apple’s 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

iOS (Apple)

!  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

Android (Google)

!  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)

!  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 select from.

Kindle (Amazon)

!  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.

Platforms and device summary

Sources: Uniqloud research!

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

Device category overview

Smartphones

!  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

E-Readers

!  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

Small tablets

!  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

Full-sized tablets

!  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

!  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

3-5 inches

6-7 inches 7 inches

8-9 inches 9 – 11 inches

Sources: Uniqloud research!

3. Tablet ecosystems are growing rapidly and become relevant very quickly Market size and segments

Sources: MorganStanley, Gartner !

!  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.

67% 61% 55% 51% 47%

29% 32% 34% 35% 36%

4% 8% 10% 11%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015

Market share (%)

Other

Microsoft

Android

iOS

0 50

100 150 200 250 300

2010 2011 2012 2013 2014 2015

device shipment (millions)

Laptop

Desktop

Tablet

Netbooks

Forecast: Market share by OS Forecast: Shipment of Tablets vs. Computers

3. Tablets both enlarge and cannibalize the market for computing devices Tablet market growth drivers

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

INCREMENTALITY CANNIBALIZATION

!  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)

Device market penetration* forecast (US) !  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%.

2012

10% 20% 30% 40% 50% 60% 70% 80% 90%

Tablet

Smart phone

Laptop

2010 2012

2010

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

2010 44% 25%

2014 65%

6% 13% 27% 2014

57% 2016

97% 2016

Nielsen: “Tablets [..] are relatively easy to use and a very appealing product for older demographics”

55%

*) 100% penetration represents one device per adult

Desktop 2010

61% 2012

68%

54% 62% 2014

2014

3. Apple’s App ecosystem is leading in monetization, but Google Play is catching up App ecosystem growth

0 200 400 600 800

1000 1200

2010 2011 2012 2013

Number of Apps

(thousands)

year

Global App Marketplaces (mobile + tablet)

Apple iOS App Store Android: Google Play Store

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

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

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.

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. !

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

Sources: Nielsen, ABI Research!

Consumer tablet usage patters

Time distribution for tablet usage by location

!  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

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

WHERE

WHEN

HOW

Preview full market overview presentation

4. Consumer engage with tablets in multiple ways

Sources: Accenture, Google, EmergingSpaces, MorganStanley, Gartner !

Overview of consumer engagement survey results

Commerce !  78% use their tablets to search for shopping. !  72% of tablet owners make purchases from their

devices on a weekly basis.

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.

Productivity !  46% of respondents were using their tablets for

professional purposes. !  20% of tablet owners use their devices to create or

edit files regularly.

Networking !  54% use email and 39% use social networking

services daily. !  74% use their tablets for composing and replying to

emails.

4. Consumers endorse tablets for ECommerce more than mobiles

Sources: Monetate, Distimo, App Annie !

ECommerce

Web !  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.

App store (mobile + tablet) revenue growth

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

1.12%

2.10%

3.03%

3.54%

3.19%

0.00% 1.00% 2.00% 3.00% 4.00%

Traditional PC/Laptop

Android Tablet

iPad

Kindle Fire

Smartphone

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

Tablet app monetization

!  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

0

20

40

60

80

100

120

Jan 2012 Nov 2012

iOS Google Play

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

compared to the iPhone store.

+19%

+311%

!  Apple’s iOS App store generates 4x more revenue than Google Play

!  Google Play catches up with a much higher growth rate

4. Social media usage is one of the key applications for mobile devices, including tablets

Sources: Nielsen, Keynote Systems, Enders Analysis!

Social media & Networking

Social media growth is driven by mobile and tablet usage1

!  30% of consumer’s 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

Social user growth on mobile and tablet

Top 5 social networks on mobile/tablet1

via app

!  Facebook !  Twitter !  Foursquare !  Pinterest !  Google Latitude

via mobile web

!  Facebook !  Twitter !  Blogger !  Tumblr !  Reddit

1) 2012 survey amongst U.S. consumers!

Total users Mobile users iPad users

Facebook (Oct 2012)

1.0bn +25% YoY

604m +61% YoY

48m +860% YoY

Twitter (Dec 2012)

200m +70% YoY

130-140m +90-100% YoY

n/a

Pinterest (US, Jul 2012)

46m +1600% YoY

19.2m +9500% YoY

n/a

Foursquare (Jul 2012)

23m +111% YoY

10.4m (apps only)

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

!  Pinterest’s 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

!

4. Publishers and advertisers are most prepared for iOS as a commercial platform

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

Publishing and Advertising for tablets Publishing adoption !  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 e-

textbooks !  Monetization: Increasing trend to monetize content via

Paywalls and new pricing models (content & advertising)

0%

20%

40%

60%

80%

100%

iPad iPhone Android Kindle

Publisher coverage

(%)

Platform

2011

2012

Tablet advertising matures quickly

!  Tablet-centric activities: Consumers prefer tablets for working, online shopping, reading print and video watching over smartphones.

!  iOS users show most engagement with advertising

AAM says “for the first time [in 2012], publishers are developing more Apps for the iPad than the iPhone.”

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

0%

20%

40%

60%

80% Mobile phones

Tablets, e-readers

other mobile

$2.1bn $14.8bn

Mobile advertising spend forecast (US, by device)

5 year growth in mobile Ad spend

Content targeting for mobile platforms

(North America)

4. Research and “Pre-Commerce”: Tablets become decision devices as research tasks shift from computers to tablets.

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

Research activities on tablets along the marketing funnel

Pre-purchase activities on tablets

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

AWARENESS

INTEREST

EVALUATION

COMMITMENT

REFERRAL

REPEAT

Post-purchase activities on tablets and mobiles !  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

Key influence factors for mobile purchase decisions on tablets !  88%: Friends !  71%: Emails from Companies !  68%: Online Ads !  52%: Facebook

4. Tablet productivity tools are well-established with consumers and will be increasingly adopted in business environments

Sources: Dimensional Research for Model Metrics, Distimo

Productivity

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.

22%

22%

24%

10%

2% 20%

Already Deployed This Year Next Year Within Two Years More Than Two Years No Plans

Consumer !  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

Popular Consumer Productivity Use Cases Productivity use cases (Top-selling iPad app examples):

!  File storage (Dropbox, Google Drive, Box.net)

!  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,

Tablet adoption in business environments (2012)

4. Gaming is the biggest monetization driver for Apps

Sources: Flurry, Apple, Nielsen

Gaming

Gaming

!  Kid’s (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

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.”

Top Grossing iPad Gaming Apps of 2012

1. DragonVale

2. Slotmania HD/ Slotmania

3. Kingdoms of Camelot: Battle for the North

4. Modern War

5. Mystery Manor: Hidden Adventure HD

6. Clash of Clans

3% 9%

29%

16%

1% 2% 7%

20%

12%

1% 0%

10%

20%

30%

13-17 28-24 25-34 35-54 55+

Males

Females

Mobile Freemium Games: Money spent by age and sex

Management/ Simulation Raise, feed and breed lovable dragons, build and manage a dragon park

Slot/ Virtual gambling Play a large amount of different slot machine themes

Build a medieval kingdom and battle other players

Strategy

Social turn-based

Build a military empire, conquer the world, forge alliances and destroy the enemies

Hidden object game, complete quests in a mystic mansion inhabited by people, monsters and ghosts

Hidden object

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

Strategy

6. Maturity stages of mobile & tablet adoption for consumer facing retail business

Sources: Uniqloud research!

Sample for mobile strategy maturity levels

TRIAL

FULL FUNCTIONALITY

MOBILE FIRST

Characteristics

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

Technical solution (example)

!  External agency development, HTML-based or native standalone app, minimized risk by separation from core in-house applications & infrastructure

MULTI-PLATFORM

!  Complete App: Fully functional and transactional app/ mobile optimized website, targeted towards mainstream customers, start marketing to a broad audience, basic

!  Native app/ mobile website, basic integration with core systems and partial inhouse capacities

!  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

CONVERGENCE

!  No separation between mobile and non-mobile, deep integration of skills, technology and methodology

!  Adaptive user frontends across devices, integration with core systems, skills and frameworks go in-house and become mission-critical

!  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.

!  Build a deep and diversified skill-set in-house to cover multi-platform, in order to react to business requirements quickly across all platforms

6. Maturity stages of mobile & tablet adoption for consumer facing business

Sources: Uniqloud research!

Challenge: Coverage of the mobile platform matrix

iOS App

Android App

Windows8 App

Mobile Web

Tablet Mobile

Top commercialmktshare,

mature market

Top engaged customer base, high

growth

Top mkt share &

growth in devices

Diverse, early stage/ top growth customer

base

Very early stage,

specific target group

Very early stage,

specific target group

Mainstream and feature

phone volume

Capture lower

engaged & casual

audience

Platform matrix coverage considerations

!  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

!  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

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

Preview full market overview presentation

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

!  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

!  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, !"#$%&'()*$+,#-.%Zmags%

1. Speed & Connectivity

2. Partial attention

Challenges Solution approach

!  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. On-screen

direct mani-pulation

!  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

!  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

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

!  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 auto-populate 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

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

4. Minimize data entry

6. OS specific & popular

App patterns

Challenges Solution approach

!  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

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

!  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

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

Sources: Twitter%

!  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

After

!  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