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TABLETs THE ADDICTIVE PILL?

In today’s episode…

1. How tablets are affecting consumer behaviour2. Their growing importance to marketers3. How tablets should form a key part of any

marketing strategy4. Case studies of brands doing it right

THE RISE OF THE TABLET

A massive and growing market

THE MOBILE TABLET ERA IS ONLY 3 YEARS OLD

It’s THE FASTEST GROWING COMPUTING PLATFORM IN

HISTORY

Source: Mary Meeker, KPCB

Tablet shipments expected

to continue growing

2013 2014 2015 2016 2017 -

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

Tablet shipments

Source: The Yankee Group, May 2013

Source: The Yankee Group, May 2013

Tablet shipments will grow from 233 million in 2013 to 1.094 billion in 2017, growing at a CAGR of 36%

BUT WHAT IS A TABLET ANYWAY?

THE TABLET IS BECOMING HARD TO DEFINE

• A touch screen laptop without the keyboard?

• A big smartphone with no network capabilities?

• A large one-piece device without a mouse

PLATFORMS ARE CONVERGING

Ubuntu Edge Mac OS X / iOS

Mobile operators are catering TO this demand too

2 distinct categories emerging?

7” tablets set to dominate market, but still a place for

10” devices

2011 2013 20170%

10%

20%

30%

40%

50%

60%

70%

80%

<8"8"-11"11">

Source: IDC, May 2013

APPLE’S DOMINANCE

Apple still dominates tablet shipments

Apple Samsung ASUS Amazon Microsoft Others -

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

Q1 2013 tablet shipments

Source: IDC, May 2013

Source: IDC, May 2013

Apple has seen its iPad shipments grow by 247.5% over the last year alone

Source: IDC, May 2013

However, Apple’s market share has declined from 58% of shipments in Q1 2012 to 40% in Q1 2013…

THE RISE OF THE TABLET

• Tablets have not been around long, but are making a huge impact

• There are two categories emerging within tablets, but convergence could blur the lines

• Apple dominates the market, but for how much longer?

TABLET DISRUPTION

THERE ARE 3 AREAS OF significant DISRUPTION

Content consumptio

n

M-Commerce

Social

CONTENT CONSUMPTION

TABLETS ARE TAKING ATTENTION

FROM OTHER DEVICES…

37% use their desktop

computer less

35% use their laptop

less

12% use their

smartphone less

Source: Forrester, UK

…AND ADDING NEW LAYERS

Source: BBC, UK

43% of tablet owners say that they watch more TV now than they did five years ago

83% say they use tablets alongside TV

Consumers more likely to watch mobile video on tablet than smartphone

Source: Adobe, April 2013

iPLAYER MOBILE TRAFFIC NOW

COMES mostly from TABLETS

Source: BBC

Tablets overtaking smartphones in web traffic

Source: Adobe, March 2013

MANY APPS CATER FOR content CONSUMPTION

The Guardian Flipboard

M-COMMERCE

TABLET COMMERCE IS increasing AS A PROPORTION OF

ECOMMERCE

Source: eMarketer, April 2013

Tablet commerce sales far outpacing smartphones

2011' 2012' 2013' 2014' 2015' 2016'0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

5.45

13.86

24.00

34.33

46.44

61.06

24.32

TabletSmartphone

US Retail Mcommerce Sales, by Device, 2011-2016 ($ billions)

Source: eMarketer, Jan. 2013

TABLETS ARE THE PERFECT SHOPPING

TOOL (WHEN BRANDS DO IT RIGHT)

• Tablets will drive 65% of mobile commerce sales in 2013 in the US

• By 2017, a quarter of digital sales will come from mobile devices, with three-quarters coming via tablets

Source: eMarketer, April 2013

iPad accounts for most mcommerce

Source: Adyen, 2013, US

retailers are not ALWAYS catering to demand

8% of the UK’s top 50 retailers have optimised their sites for tablet devices

48% of retailers who have a branded mobile application let consumers make purchases from within the app

4.4 hours each week browsing retailer websites by average UK tablet user

Source: Marketing Week, June 2013

SOCIAL

THE GAP IS CLOSING BETWEEN

TABLETS AND OTHER DEVICES

Source: Mintel, April 2013

SOCIAL IS A HUGELY POPULAR

ACTIVITY FOR TABLET OWNERS

• 57% state they like to use their tablet for social/sharing services

• 2nd most popular activity

• 6th amongst PC users

Source: Mintel, April 2013 (UK)

CONTENT-BASED SOCIAL NETWORKS

PERFORM BETTER ON TABLETS

• Pinterest accounts for 48.2% of total sharing on iPad

• Facebook accounts for 66% of total sharing on iPhones

Source: ShareThis

Tablets IN RELATION TO OTHER MEDIA

MULTI-SCREENING

There are four ways in which

consumers are multi-tasking

Content Grazing Spider-Webbing

Social Spider-Webbing QuantumSource: Microsoft, Cross-Screen Engagement, May 2013

IN THE INTERESTS OF Brutal SIMPLICITY

Parallel Simultaneous

Social Simultaneous Sequential

PARALLEL the common method

Simultaneous ADDS LAYERS

Social SIMULTANEUOS focused on sharing & connecting AROUND

CONTENT

SEQUENTIAL allows consumers

to achieve goals effectively

See TV ad Research Product Purchase Product

TABLET’S ROLE VARIES IN EACH INSTANCE

Parallel: Simultaneous:

Social Simultaneous: Quantum:

Often a distraction

Adds layers

More likely to be used than a

laptop

Great discovery and browsing

tool

IMPLICATIONS FOR MARKETERS

IT’s DIFFERENT TO A SMARTPHONE

IT’S NOT A LARGER SMARTPHONE!

Source: http://peopletakingpictureswithipads.tumblr.com/

OFTEN AN INCREMENTAL mobile DEVICE

Both(5.3m)

Tablet(7.5m)

Smartphone(23.1m)

Source: TGI 2013

BEHAVIOURS ARE DIFFERENT

JUDGE YOUR TIMING CAREFULLY

Source: Flurry, Sept 2012

It’s NOT AS PERSONAL A DEVICE

59% of tablet owners share their device

49% with their spouse/partner,

22% with children,

9% with others

Source: Forrester

THE Tablet IS THE WIZARD OF SCREENS

Source: Microsoft, Meet the Screens

Relationships still forming

The tablet is a constant source of amazement and

wonder.

It shows awesome power, scope and range

The growth and capabilities of the tablet are exponential

However, tablets are nascent in their development and consumers are still forming relationships

with themSource: Microsoft, Meet the Screens

PLAN AROUND TABLET ATTRIBUTES

For marketers, tablets are flexible & nimble

Different strategies needed for TABLETS

• Don’t lump smartphones and tablets together

• Think about usage in home context - tablets aren’t actually that mobile

• Make the experience immersive, especially for those researching and discovering brands and products

• Extend ATL media such as adding new layers to TV content

• Consider for harder to reach audiences who spend less time with TV and print

PEOPLE GETTING IT RIGHT

Axe GRAPHIC NOVEL

WIReD PUZZLE ADVERT

AMAZON WINDOW SHOP

CREATE SOMETHING WITH PAPER

SUMMARY

CONSIDER ALL STAGES FOR MAXIMUM IMPACT

1. Tablets are bigger and more disruptive than you may think

2. Consider tablet behaviours in relation to other media when planning. What modes are they in?

3. Play to the tablet’s strength – content, emersion etc. How is it different to a smartphone?

Will tablet be an ‘addictive pill’ for your business in future?

QUESTIONS?