A LOOK AT THE SIZE OF THE SMARTPHONES AND NFC ENABLED MOBILE DEVICES MARKET.

• The size of the global Smartphone market• The most popular devices• Smartphone user demographics• NFC Device penetration• Smartphones and retail in-store marketing• Case studies• Appendix

CONTENTS

THE SIZE OF THE KEY REGION SMARTPHONE MARKET.

Country Smartphone sales

UK 25,386,000

Spain 17,855,000

Canada 9,103,000

Italy 21,067,000

US 97,865,000

France 18,788,000

Germany 21,300,000

Japan 16,902,000

UK

Spain

Canada

Italy

US

France

Germany

Japan

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

51%

51%

45%

43%

41%

40%

37%

16%

Smartphone market share

WHICH PHONES ARE MOST POPULAR?

IDC Report

Gartner Report

SMARTPHONE USER DEMOGRAPHICS.

Male Femal0%

10%

20%

30%

40%

50%

60%

55%

44%

UK Smartphone market by gender

Female

Age 13-17

Age 19-24

Age 25-34

Age 35-44

Age 45-54

Age 55+

7.60%

14.40%

22.00%

21.00%

16.00%

18.90%

UK Smartphone users by age

NFC ENABLED DEVICE PENETRATION.

2011 2012 2013 2014 2015

97%90%

70%

50%

25%

4%10%

30%

50%

75%

NFC Penetration of Smartphone market

NFC EnabledSmartphones

1. HTC One X

2. HTC One XL

3. Nexus S

4. Google Nexus S 4G

5. Samsung Galaxy S II (not all versions)

6. Samsung Galaxy Note (not all versions)

7. Galaxy Nexus

8. HTC Amaze 4G

9. Huawei Sonic T20

10. Huawei Sonic (U8650NFC-1)

11. Sony Xperia S

12. Sony Xperia P

13. Sony Xperia SOLA

14. Nokia 6212 Classic

15. Nokia 6131 NFC

16. Nokia 3220 + NFC Shell

17. Nokia 5140(i) + NFC Shell

18. Nokia 603

19. Nokia 700/701

21. Nokia C7/ Nokia N9

22. Nokia Lumia 610 NFC

23. Samsung S5230 Tocco Lite/Star/Player One/Avila

24. Samsung SGH-X700 NFC

25. Samsung Wave 578/ Samsung Wave Y

26. Motorola L7 (SLVR)

27. Blackberry Bold 9790

28. BlackBerry Bold 9900/9930

29. BlackBerry Torch 9810/9860

30. Blackberry Curve 9350/9360/937

NFC ENABLED SMARTPHONES

SMARTPHONES AND RETAIL IN-STORE.

Took

pict

ure

of p

rodu

ct

Text f

riend

abo

ut p

rodu

ct

Scann

ed a

pro

duct

cod

e

Sent p

ic of

pro

duct

Found

sto

re lo

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n

Compa

red

price

s

Found

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duct

cou

pon

Resea

rche

d pr

oduc

t fea

ture

s

Check

ed p

rodu

ct a

vaila

bility

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Tasks performed in-store using Smartphones

MaleFemale

Product information

Coupon

Event info

Charitable info

App download

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

Activity taken by scanning a QR code in-store

The previous graphs show that there is a desire on the behalf of your audience to engage with brands in store, using a mobile device, to share info about a product with their friends, and to access rewards or view richer content that relates to a product or service.

We looked at QR code engagement as a benchmark to see what sort of engagement is achieved in the retail space when rewards or exclusive content is offered to shoppers, since the mechanic between a QR code and NFC is similar in principle.

The opportunity for NFC and retail is large, but if there are concerns about the number of people with NFC enabled devices then there are other proximity solutions available such as loyalty cards with RFID readers, which we will look at in the case studies section, and can be viewed in more detail here:

http://www.rjw-tap.com/events/#header

THE RETAIL OPPORTUNITY

CASE STUDIES FOR NFC AND PROXIMITY MARKETING.

Advertisers who participated in the pilot included Morrisons, H&M, Universal DVD and Universal Special Projects, Mercedes, TV channel ITV2, energy drink Lucozade Sport, games maker EA Games and Unilever's Lynx, Toni & Guy, Magnum and Vaseline brands.

The results show that more than 3,000 people in Reading scanned the poster sites during the trial, the equivalent of one million people if the project had been run nationally across the UK.

JCDecaux READING TRIAL

Consumers were positive (78%) about the experience, citing ease-of-use of NFC as key to the trial's success.

The brands that elicited the most positive interactions did so through a combination of relevance, dynamic content and a strong call-to-action.

There were strong download conversion rates, including an average of 28% for video content, rising to a high of 49% when the content was new and previously unseen.

Voucher redemptions were found to attract new customers, with activity highest where the poster site was in proximity to the store but also in the area around the university and right across the city.

Voucher redemption rates increased across the four-week period as consumers became more familiar with the technology and the possible reward. One campaign yielded a redemption factor of 18%; the average across the trial was 7%.

87% of people with NFC-enabled phones said they are likely to repeat the experience. 80% of non-NFC phone owners said they would like to use it in the future.

RESULTS

While adoption rates increase for NFC, there is the possibility of including contactless payment and entry mechanics at events using NFC technology, that does not require a mobile device.

More than 10,000 attendees at the Isle of Wight music festival opted to use a contactless wristband to replace their entry ticket and make payments.

Prior to the festival, general ticket holders were given the chance to upgrade their standard entry wristband to one containing a contactless payments chip that could be used to store prepaid funds. They could then link their wristband to their debit or credit card account to load funds onto the account.

This technology can be used for any interaction with a bracelet or card, including loyalty points, Facebook likes and voucher redemption.

Contactless Payments at Isle of Wight

Thank you.

For any additional information contact:

Rob Wingrove

M: 07805035493

E: rob@rjw-tap.com

All information in this deck is © RJW_Tap

APPENDIX.

www.nfcworld.com

YouGov

Comscore – 2012 Mobile Future Focus

nfcrumors.com

nfctimes.com

wikipedia

Reuters.com

idc.com http://www.idc.com/getdoc.jsp?containerId=prUS23455612

Gartner

http://www.email-marketing-reports.com/wireless-mobile/smartphone-statistics.htm#smartphones

Data sources