U.S. Mobile Benchmark Report

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1 U.S. Mobile Benchmark Report ADOBE DIGITAL INDEX % 40%

2 Methodology Report based on aggregate and anonymous data across retail, media, entertainment, financial service, and travel websites. Behavioral data from Adobe Marketing Cloud solutions; website traffic trends via Adobe Analytics and mobile app usage patterns from Adobe Mobile Services. 18+ billion visits to U.S. consumer facing websites in June, More than 1 trillion visits since million mobile app use sessions. 10,000+ US websites and apps under measurement. Survey (Sentiment) Data: Over 3000 mobile users spread across US, Canada, UK, France & Germany. Over 100 mobile marketers working for US companies Adobe Systems Incorporated. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. Android is a trademark of Google Inc. Windows is either a registered trademark or a trademark of Microsoft Corporation in the United States and/or other countries. ios and iphone are trademarks of Apple Inc, registered in the US and other countries. All other trademarks are the property of their respective owners.

3 Key findings 1. iphone screen size has to increase: Without the introduction of a larger phone, Apple s browser share will decline further. Consumers prefer to browse on phones with 5 or larger screens. Browsing on 4 devices fell by 11% YoY. 2. Pinterest is the most mobile social network: Outpacing Facebook, Pinterest is the most mobile social network with 64% of its referred traffic coming from mobile browsers. Tumblr referrals produce the highest revenue per visit (RPV) from mobile devices well ahead of Facebook. 3. imessage sharing up 259%: Users of digital magazine apps use person-to-person article sharing via text messaging twice as often as sharing via Social. While imessage sharing is up, sharing via Facebook is down 43%. 4. Cellular networks on decline: For the first time, more than 50% of web browsing via smartphones and 93% of browsing via tablets come from wi-fi. 5. Bounce rates high on mobile: Bounce rates for referrals from social networks are much higher on mobile devices than desktops 61% vs. 53%. Marketers are cautioned to track mobile ad bounce rates.

4 MOBILE WEB Screen size and browsing share Without larger screen phone, Apple s browser share will further decline. Phones with larger screens (>4 ) drive higher web traffic than ever before. Browsing on smaller phones ( 4 ) down over 11% YoY. Tablet browsing has flattened. A year ago, tablet browsing surpassed smartphones and was expected to continue to outpace smartphones. Consumers choose to browse more on bigger screen phones now than tablets. 65% 15% 10% BROWSING SHARE BY PHONE SIZE (MAY MAY 2014) _ < 4 INCHES > 4 INCHES BROWSING SHARE PAGE VIEWS (JUNE JUNE 2014) PHONE TABLET

5 MOBILE WEB Mobile browsers Chrome has grown at the expense of Safari and Android Browser. 1.8% 1.8% 2.8% 20.3% Chrome s share up 5.7%. 14.3% Safari s share fell by 2.6%. 59.1% Android Browser s share fell 0.9%. Safari still drives more traffic than all other mobile browsers combined % MOBILE BROWSER SHARE (APRIL 2014) SAFARI 60% 30% + 5.7% CHROME 10% MOBILE BROWSER SHARE (DECEMBER MAY 2014) SAFARI ANDROID CHROME OPERA INTERNET EXPLORER OTHER

6 MOBILE WEB Browsing share by device manufacturer Apple still drives the majority of mobile visits to U.S. websites. iphone drives 54% of smartphone traffic. ipad drives 80% of tablet traffic. 40% ANDROID IOS Besides Apple, Samsung users browse more than all other smartphone users combined. For Smartphones, LG follows Apple and Samsung. OTHER ANDROID IOS 3% 5% 1% 6% 5% 2% 6% 7% 5% SMARTPHONE TABLET 24% 54% DEVICE USE BY MANUFACTURER APPLE SAMSUNG LG MOTOROLA HTC NOKIA ZTE AMAZON GOOGLE OTHER OTHER DEVICE USE BY OS 2% Amazon tablets are the third most popular with 5% of visits. TABLET 40% Samsung is #2 for both smartphone and tablets. 3rd place is up for grabs. 80% 54% SMARTPHONE 80%

7 MOBILE WEB Mobile and social networks 64% of Pinterest s referred traffic comes from mobile browsers, ahead of Facebook. 62% of Twitter referrals are from tablets and smartphones. 36% of all social referred visits to retailers come from a tablet or smartphone. Tumblr referrals produce highest revenue per visit (RPV) from mobile devices. Bounce rates for referrals from social networks are higher on mobile devices than desktops (61% vs. 53%). 50% 25% $2.00 $ % PC TUMBLR FACEBOOK TWITTER PINTEREST SHARE OF VISITS REFERRED TO WEBSITES BY DEVICE TYPE $ 2.57 TABLET TUMBLR FACEBOOK TWITTER PINTEREST REVENUE PER VISIT (RPV) REFERRED TO RETAIL WEBSITES BY DEVICE TYPE SMARTPHONE TABLET PC

8 MOBILE APPS Content sharing Personalized content sharing (text messaging, ) is more popular than group sharing via Social 70% vs. 30%. Sharing behavior is progress towards a more personalized experience. 70% imessage sharing up 259%. Pinterest sharing up 131%. 30% sharing up 5.2%. Q Facebook sharing down 42.6%. Q Q PERSONALIZED MESSAGE GROUP MESSAGE URL link sharing down 26.8%. Twitter sharing down 22.6%. Q % 259% imessage 25% Q Q Q Q DIGITAL MAGAZINE SOCIAL SHARING ME THODS imessage LINK (URL) FACEBOOK PINTEREST TWITTER

9 MOBILE WEB Cellular vs. wi-fi As cell data charges increase, more consumers choose to browse via wi-fi. Over 50% of smartphone browsing now comes from wi-fi. 43% 7% 93% 93% of tablet browsing uses wi-fi rather than cellular data. 57% SMARTPHONE TABLET 50% JANUARY % PHONE BROWSING BY CONNECTION TYPE (JANUARY JUNE 2014) JUNE 2014 CELL WIFI

10 MOBILE SURVEY Mobile geo targeting trends ibeacons and Geo targeting are becoming mainstream. 49% ibeacons: 18% of mobile marketers already use Apple ibeacons (Expected to double in 15 to 36%). Geo targeting (GPS): 49% of marketers already use device position to deliver content (37% plan to add it over next 12 months). Mobile Elite user trends. of marketers already use device position to deliver content. 7% 8% 17% 37% 28% 22% used mobile wallets in last 3 months (14% of average mobile users). 13% used apps with augmented reality in last 3 months (9% of average mobile users). 36% used mobile assisted in-store shopping (33% of average mobile users). 18% 49% REQUEST GPS LOACTION DATA 36% USE OF ibeacon TECHNOLOGY CURRENTLY USING NO, BUT PLAN TO USE IN NEXT 12 MONTHS NO, AND NO PLANS TO USE IN NEXT 12 MONTHS NOT SURE

11 MOBILE SURVEY Mobile app publishing trends 53% of companies have 1-10 mobile apps (17% have 40+ mobile apps for download). ios apps lead with 67% of respondents publishing to the Apple App Store (Google Play 61%). Only 3% of companies admit to only refreshing mobile apps annually or less often. 53% 1-10 APPS On average, mobile marketers spend: $5.5 million/year on mobile app. $4.9 million/year on mobile websites. 10% NONE 1-10 APPS APPS APPS APPS >60 APPS CURRENTLY AVAILABLE FOR DOWNLOAD PER ORGANIZATION (n=103, mean:*19)

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