Mobile Marketing Q2 Report Mobile Couponing 2011 It’s the economy HAS CHILD IN HOUSEHOLD TOTAL HAS CHILD UNDER SIX Families with young children tend to have increased promotional usage most – digital usage as common as traditional. Base: Those who have done more of the following in the past year: Looked for promotion codes/discounts when shopping online Clipped and redeemed coupons from an insert in a newspaper Clipped and redeemed coupons that arrived at my home (via postal mail or fliers) Redeemed promotional/discount offers received via email from a retailer Subscribed to receive promotional/ discount offers via email froma retailer Signed up to receive coupons online (i.e., from Groupon, DealOn) Signed up to receive text alerts from retailers/merchants 11/23/2018 Source: Placecast Harris Poll: The Alert, Shopper II, July 2010

Mobile Marketing Q2 Report Mobile Couponing 2011 Smartphones will be a majority in the U.S. by Q2 2012 Consumers are armed with in-store portable computers/potential coupon delivery devices. Projected smartphone penetration: FEATURE PHONE SMARTPHONE Projected 11/23/2018 Based on survey data and projections. Source: Nielsen

Mobile Marketing Q2 Report Mobile Couponing 2011 Mobile media activities that relate to couponing have reached critical mass: SMS/MMS, email, apps, LBS U.S. mobile media usage (past 30 days), Q4 2010; Yellow boxes note number of users for each activity. 152.3 M 90.8 M 83.2 M 71.8 M 52.4 M 50.0 M 42.3 M FEATURE PHONE OWNERS SMARTPHONE OWNERS ALL SUBSCRIBERS 11/23/2018 Note: Location based services here refers to using anything from GPS on a phone to weather and entertainment info that are plotted to location – not specifically a “check in” service. Source: Nielsen

Mobile Marketing Q2 Report Mobile Couponing 2011 Smartphone owners are using apps for shopping and couponing Applications used on smartphones while shopping*: *Base: those who have used a smartphone app/web browser while shopping. Q: Which of the following smartphone apps have you used in store when deciding to make a purchase or comparing products/services? Check all that apply. Source: Chadwick Martin Bailey, Consumer Pulse, March 2011 11/23/2018

Mobile Marketing Q2 Report Mobile Couponing 2011 70% of these consumers compare prices at least a couple times a month Nearly half of smartphone owners are finding store locations while 30% access Daily Deal apps Q: For which of the following have you used your smartphone? Percent of smartphone owners: Finding nearby stores Comparing prices before shopping for an item Researching product details Comparing prices while shopping for an item in person at a store Accessing deal of the day apps Searching for product reviews/ recommendations from a website Mobile barcode scanning to compare prices Purchasing an item online Searching for product reviews/recommendations via a social networking site or app Sharing product recommendations via email Sharing product recommendations via a social networking site or app None of the above 29% of ‘deal of the day’ app users use their phones to access deals every day 11/23/2018 Source: comScore Survey, January 2011

Mobile Marketing Q2 Report Mobile Couponing 2011 Mobile moms love those coupons…along with Groupon and retailer apps…she’s even barcode scanning in her spare time Types of apps used by moms when shopping with a smartphone: Of those that shop with their smartphones, 37% are using coupon apps 11/23/2018 Source: Babycenter 21st Century Mobile Mom Report, March 2011

Mobile Marketing Q2 Report Mobile Couponing 2011 Mobile users are starting to use mobile coupons Notice the increase in activity among smartphone users. Q: Which of these have you ever done?   Total Regular Phone Smartphone Number of respondents 958 597 400 Shown an email coupon to a clerk using your mobile phone 12.0% 5.0% 26.0% Used a coupon you received in a text message 14.0% 6.0% 28.0% Used a coupon you found in a mobile application 11.0% 3.0% 23.0% Put your store cards (loyalty or shopper cards) on your mobile phone so you don’t have to carry them 8.0% 18.0% Used an app that gave you loyalty points or rewards based on you entering or checking into retail locations 9.0% 20.0% Downloaded a coupon to print later 13.0% Downloaded coupon to store loyalty card 4.0% 15.0% None of the above 72.0% 87.0% 47.0% 11/23/2018 Source: Insight Express Digital Consumer Portrait, Q1 2011

Mobile Marketing Q2 Report Mobile Couponing 2011 For text-alert marketing, grocery coupons garner the most interest Restaurant chain promotions and entertainment are also highly sought by consumers. Base: Those at least somewhat interested in text alert marketing: 11/23/2018 *Including gym services and/or nutritional supplements. Source: Placecast: The Alert Shopper II, Harris Poll, July 2010

Mobile Marketing Q2 Report Mobile Couponing 2011 Text messaging is the preferred mode of receiving coupons on mobile Both regular mobile users and smartphone users cite text messaging as a top preference, tied with using an app to find deals on their own. Q: How would you like to receive coupons on your mobile phone?   Total Regular Phone Smartphone Number of respondents 958 597 400 Have them sent to me via text message 25.0% 17.0% 38.0% Get them via email on my phone 18.0% 9.0% 34.0% Text in to receive them when I’m in a store 30.0% Find them myself using an application 13.0% 7.0% Get them in exchange for checking-in to various locations 8.0% 4.0% 15.0% 11/23/2018 Source: Insight Express Digital Consumer Portrait, Q1 2011

Mobile Marketing Q2 Report Mobile Couponing 2011 Cellfire mobile users are incremental couponers Q: How often do you use regular “paper” coupons (e.g. from the mail, newspaper, printable)? TRADITIONAL MEMBERS MOBILE APP MEMBERS 11/23/2018 Source: Cellfire/Market Dynamics survey of Cellfire users, February 2011

Mobile Marketing Q2 Report Mobile Couponing 2011 Cellfire mobile users cite convenience and environmental friendliness as top factors for usage Q: Compared to other grocery coupons (e.g., from the mail, newspaper, printable, etc.), how would you rate Cellfire coupons on the following factors from 1-5, with 5 being the highest*? 5-HIGHEST 4 3 2 11/23/2018 Source: Cellfire/Market Dynamics survey of Cellfire users, February 2011; No users ranked any responses as ‘1’

Mobile Marketing Q2 Report Mobile Couponing 2011 NCH: 2010 volume of coupons hits high of 332B (Total U.S. CPG coupon distribution volume, in billions/all media) +9.8% +6.8% +10.7% +0.4% +2.2% -1.4% 11/23/2018 Source: NCH Marketing Services

Mobile Marketing Q2 Report Mobile Couponing 2011 There’s a lot at stake in the growing traditional couponing market: $451B in FSI dollars to drop 291B coupons Free Standing Insert Couponing by the numbers: Measure 2010 2010 vs. 2009 % Change Dollars circulated $451 billion 17.1% Coupons dropped $291 billion 7.2% Pages distributed $212 billion 4.5% Face value (average) $1.55 9.2% 11/23/2018 Source: Kantar Media

Mobile Marketing Q2 Report Mobile Couponing 2011 The Digital Coupon Ecosystem: Now add mobile complexity 11/23/2018

Mobile Marketing Q2 Report Mobile Couponing 2011 For marketers looking to deploy coupons through LBS there are some reach challenges. When will they get to the crucial 40M user mark? % of U.S. population 82% use cell phones Company Downloads (Global) 80/20 Rule (Active Users) Foursquare 7,500,000 1,5000,000 Loopt 4,000,000 800,000 Booyah My Town Waze 2,300,000 440,000 SCVGR 1,000,000 200,000 Gowalla 750,000 150,000 71% use SMS 35% have apps 24% use apps 4% Use LBS 11/23/2018 Source: Company reports as of 4/11;*Estimate based on typical active user base of any web-based media Source: Pew September 2010