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Mobile – May Update

Highlights

May saw us record 572 sales per hour through mobile devices

The iPhone generated 3,100 sales per day throughout May

One in every seven clicks and one in every 13 sales in May came through a mobile handset

We have recorded more mobile sales so far this year than we did in January – November in 2012

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Monthly Traffic

Having seen a drop off in the share of traffic in April, May saw this pick up again with 22.31% of traffic coming through mobile devices. This is the

highest share we have ever reported and was up from 10.95% in May 2012.

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Jan Feb March Apr May Jun Jul Aug Sep Oct Nov Dec

% Traffic Through Mobile Devices

2011 2012 2013

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Monthly Traffic – Handsets Only

While the above data looks at all mobile devices (including tablets) it is worthwhile to focus specifically on handsets. The user behaviour associated with

these two devices differs considerably so it is important to investigate handsets in isolation. Just as we saw mobile traffic as a whole down in April, we

also saw this through mobile handsets. In May we saw 13.61% of traffic through mobile handsets. This was up from 11.4% in April and 6.51% from May

last year.

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% Traffic through mobile handsets

2011 2012 2013

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Device breakdown – past 4 weeks

The iPad has continued to dominate mobile traffic throughout May. For the four month period this was around 39% of our mobile traffic. We saw a peak

of 39.71% in week 20 while the low was 38.92% the following week. Of the handsets, the iPhone has continued to be the dominant player. It recorded a

high of 34.17% in week 19 and a low of 32.83% in week 22. Android increased from what we saw last month with their share of traffic between 20-21%.

Blackeberry maintained a minimal share of traffic while ‘other’ devices saw a peak of 5.25% in week 22.

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Clicks

Other

BlackBerry

Android

iPad

iPhone

WeekNum iPhone iPad Android BlackBerry Other

19 34.17% 39.35% 20.30% 1.32% 4.85%

20 33.77% 39.71% 20.71% 1.21% 4.61%

21 34.12% 38.92% 20.68% 1.16% 5.12%

22 32.83% 39.26% 20.80% 1.86% 5.25%

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Sales

As well as seeing a growth in the share of traffic through mobile devices, we also saw sales increase once again. This increased to 18.16% - up from

16.48% in April and 7.85% in May 2012.

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Jan Feb March Apr May Jun Jul Aug Sep Oct Nov Dec

% Sales through mobile devices

2011 2012 2013

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Monthly Sales – Handsets Only

Again it is possible to break the share of sales down by mobile handsets only. We also saw an increase in the share of sales through mobile handsets as

this surpassed the 7% mark for the first time – hitting 7.5%. A significant proportion of the increase was due to a major advertiser adding mobile tracking

towards the end of May. As more advertisers continue to optimise their mobile experience and add tracking to their sites we expect these figures to

increase further in the coming months.

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% Sales through mobile handsets

2011 2012 2013

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Device breakdown – past 4 weeks

Again it is possible to look at the breakdown by device to see where our mobile sales are coming from. As with traffic, the iPad continues to be the

dominant device. Sales peaked at 59.32% in week 20 after a low of 56.88 in week 19. The iPhone is still the dominant handset and peaked at 22.96% in

week 19. Android remains some way behind the iPhone with a peak of 15.24% in week 19. Blackberry maintained a minimal share of sales with a peak of

1.88% in week 19 while ‘other’ devices remained fairly constant at around 3%.

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Other

BlackBerry

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iPad

iPhone

WeekNum iPhone iPad Android BlackBerry Other

19 22.96% 56.88% 15.24% 1.88% 3.04%

20 21.56% 59.32% 14.41% 1.63% 3.07%

21 22.28% 58.44% 14.59% 1.72% 2.96%

22 22.95% 58.65% 14.37% 1.25% 2.78%

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Device breakdown year to date

It has been possible to look at the breakdown of the share of sales across 2012 and also compare this to what we have seen to date for 2013.

2012

The iPad was the dominant mobile device over the duration of 2012. 59% of all mobile sales through the network were driven by the iPad. Of the mobile

handsets, the iPhone was the main driver of sales with 23% of all mobile sales. However, over the year we did see Android devices close the gap and by

the end of the year Android had a 12% share of mobile sales.

YTD

iPhone iPad Android BlackBerry Other

The percentage of mobile device sales generated by particular devices. 23% 59% 12% 3% 2%

*Please note – these percentages do not add up to 100% due to rounding

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

iPhone iPad Android BlackBerry Other

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2013

2013 to date has seen the iPhone’s share of sales drop to 21%. This has been at the expense of Android which has increased to 15%. The other devices

have remained consistent with what we saw throughout 2012.

YTD

iPhone iPad Android BlackBerry Other The percentage of mobile device

sales generated by particular devices. 21% 59% 15% 3% 2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

iPhone iPad Android BlackBerry Other

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Conversion Rates

Mobile conversion rates increased to 3.84% in May (up from 3.43 in April). As more of our advertisers add tracking to their mobile sites, we expect to see

conversion rates improve further.

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Mobile conversion rate

2011 2012 2013

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Conversion rate by device

As well as looking at the conversion rate through mobile devices as a whole, it can also be broken down by device in order to split out tablet traffic and

compare each device against what we have seen for desktop. The chart below looks at the conversion rate by device for the year so far.

Each of the devices saw an increase in conversion rate with the exception of Blackberry. The iPad continued to be the best converting device (5.71%),

remaining above desktop (4.97%).

We continue to see greater conversion rates through Android than we are through the iPhone (although this is from a lower volume of traffic) and the

two devices are looked at in greater detail below.

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Conversion rate by device

iPhone iPad Android BlackBerry Other Non Mobile

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iPhone vs. Android

We have also been monitoring the growth rates of Android vs. iPhone since January 2012. The chart below has traffic and sales through Android devices

as a percentage of all traffic/sales driven by these two devices. Traffic through Android gained on the iPhone for the first time since January but the

share of sales once again dropped.

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Growth of Android vs iPhone

Clicks Sales

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It is also possible to look at the monthly increases in traffic and sales for each of the devices to see how their growth rates compare. The chart below

looks at traffic. Traffic through the iPhone saw a decrease in terms of volume from what was generated in May while the volume of clicks through

Android increased.

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Month on Month Growth - Clicks

iPhone Android

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In terms of sales, the iPhone saw an increase despite a drop off in traffic volumes. Android also saw an increase in sales although this was lower than

the growth we saw for the iPhone.

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Month on Month Growth - Sales

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Mobile Reporting in Interface

While we have been monitoring mobile performance internally for over two years, mobile reporting is now available within the interface. This allows

advertisers and affiliates to monitor the device that their sales are originating from. Mobile data can be found in the following reports:

* Advertiser: Validate Pending Commissions

* Advertiser: Archived Commissions

* Publisher: Transactions

The data can be viewed on screen or exported via .csv or .xml downloads. With this intriguing information now available to all, the true impact of

mobile on your campaigns can be seen for the first time.

Please refer to our mobile tracking guide for instructions on how to manipulate this data for analysis purposes.

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Advertisers with mobile tracking

With John Lewis becoming the latest advertiser to track sales through their mobile site, we are now tracking and reporting on 90 of the top 100 clients

through mobile handsets.

With traffic through mobile handsets exceeding 12% of the total network traffic in recent months, it has become increasingly important for mobile

tracking to be added to advertiser’s sites.

Mobile commerce has been a major focus for Affiliate Window over the past few years. While other networks have focused on other areas of mobile, our

priority has been to ensure our advertisers are tracking sales through mobile devices and publishers are being correctly rewarded for the sales they are

driving in the here and now.

Earlier this year, we launched an initiative to ensure advertisers that did not have tracking on their mobile sites were diverting mobile traffic through to

the desktop version of the site so the sale would in fact track. While this did not lend itself to a seamless mobile customer experience, it meant

publishers were being fairly rewarded for the sales they were driving through mobile handsets. This was put in place as an interim measure and as soon

as advertisers added tracking to their mobile sites, all traffic was sent back to the mobile site to ensure a fully optimised mobile customer journey.

We were extremely proud to see this initiative recognised within the industry as we received a Performance Marketing Award for Network Innovation.

The initiative went on to win the ultimate prize, the ‘best of the best’ Grand Prix on the night. This came hot on the heels of the Mobile Retail Award in

the best mobile affiliate campaign category.

When we first launched this initiative, we reported 85% of our advertisers were tracking sales through mobile devices.

These sales were being tracked in one of the following ways:

- Optimised mobile site complete with affiliate tracking

- Optimised mobile site running off and tracking through the same domain

- Non optimised mobile site, so sales track through desktop site

- Affiliate Window solution in place to divert mobile traffic to the desktop site

Since this list was first provided, we have been working hard to ensure additional advertisers are tracking mobile sales. While the percentage of the

number of advertisers with mobile tracking in place is one metric to measure, it is more important to consider the percentage of revenue and

commission that is being tracked. By ensuring the largest advertisers on the network are tracking, publishers can be assured they are receiving the

commission earned through mobile devices.

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With John Lewis being the latest advertiser to announce tracking has been added to their mobile site, we are now tracking 91% of revenue and

commission generated through our advertisers. We are continually educating advertisers on the importance of mobile tracking and we have made

great strides. By tackling the advertisers in batches we are confident we can reach 95% within a few months with the intention of being 99% tracked by

year end.

Our aim is to provide as much visibility to publishers as possible, allowing them to make informed choices on which advertisers to promote. A full list of

our advertisers and their status with regards to mobile tracking can be downloaded here. This list will be updated regularly as more advertisers begin to

track mobile sales.

If you are an advertiser with mobile tracking in place that is listed incorrectly, please contact strategy@affiliatewindow.com so we can update this

accordingly.

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