1. NFC & Smart Posters 4.Strategy… 4.Software… 4.Systems… 4.Solutions Dr Neil Garner, MD Glue4 A presentation by Glue4 Technologies

2. Glue4: About Us… Software & Solutions Creating innovative services linking people and brands Head Office: Norwich, UK Privately Owned. Gluing consumer technologies Web Mobile Interactive TV Smartcards Across sectors: Retailers Financial services Telecommunications Media

3. What is NFC? Near field Communications (NFC) is the name given to a short range wireless communication protocol covering a distance of 2-5cm NFC chips in devices enable data to be exchanged (e.g. contact details) by bringing the devices within range, or touching them together NFC is compatible with, and incorporates a range of existing RFID standards providing interoperability with contactless payments and ticketing infrastructure.

4. NFC Consumer Applications NFC phones have many applications across multiple sectors: Transport & ticketing Events & leisure Retail Payments Telecoms & media Social networking & more Some examples: Faster contactless payments Collect/redeem vouchers Rate/review products & services Purchase goods from a smart poster Access control & virtual queuing Obtain local info

5. NFC Smart Posters A poster combined with an RFID tag becomes “Smart” RFID tags can store up to a few KB of data: URL Promotion data Location data Security data The RFID tag provides a link to the internet from the physical world: Touch phone to tag to connect to URL Tag authenticity can be verified by phone application Browse URL, get info, sign up/login, purchase goods, get vouchers etc Limitless applications

6. Example Use Cases Purchase a product from a poster Download media content from poster Send links to friends

7. There are currently four ways that a person can obtain virtual information from a physical advertisement: Phone number / e-mail address / URL Cheap to deploy as part of print image Impulse response is lost, majority are forgotten SMS Message to a short-code Long range (users don’t need to be within arms reach) Compact (no tags, just text characters) Cost can be high, many users weary of hidden charges & spam Has to be remembered if no coverage (eg on tube) Bluecasting Bluetooth widely adopted in Handsets Intrusive, invasion of privacy, costly to deploy Scan/snap barcode Most handset have hi-res screen and camera Time consuming, unreliable, specialist scanners NFC: Competing Technologies

8. NFC compliments existing SMS marketing campaigns a cheaper, more convenient and more novel service discovery channel Simple user experience touch & follow instructions Inherent security Can be enhanced further with tag-level security NFC gives the user control Users must physically opt in to get data (or Blue-cast) NFC/RFID infrastructure Can work with existing readers & cards With secure element can store ‘virtual’ payment/loyalty cards NFC Technology Advantage

9. Glue4 funded an NFC usability trial with our partner Foolproof Two focus groups: Early adopters of technology Late adopters of technology In-depth Interviews: 8 people of varying experience with technology Respondents were given Nokia 3220 phones with the Glue4Touch NFC application installed and a variety of smart poster scenarios to play with Overall response was very positive Biggest concerns were security and cost. Some were worried that data could be extracted from the phone without their knowledge. Estimates of how much it would cost to touch a poster varied widely. Education essential. Users like the idea of collecting data on their phone (e.g. product info) for later consideration NFC Consumer Research

10. Glue4Touch: Smart-posters A click through model for the physical world For the consumer: Confidence in security of tags Store favourite tags Store history Relevant promotional offers Simple m-payments Send tags to friends Via SMS or NFC For the brand/operator: Skinning & customisation Analysis of user behaviour Click-through rates Conversion rates Recommendation rates Understand the effectiveness of the campaign Glue4Touch: A full NFC smart-poster management service including data collection

11. Glue4Touch Benefits Trust and security Glue4Touch tags are controlled by digital signatures and there’s a complete validation chain for online and offline use. The tags are compliant with NFC Forum specifications. Measurability and ROI Interaction with tags is traceable to a specific tag at a specific location. Tag sharing is also traceable making it simple to track viral marketing success. Complete customisation and branding The Glue4 smart poster solution covers customisation of the handset application, tags and supporting mobile internet sites. Dynamic Update The focus of a smart poster campaign can be refined, changed or completely re- branded post launch without the need for reissuing tags. Partner Integration We have teamed up with specialist service providers for payments and transaction processing enabling us to deliver a tried and tested end-to-end service.

12. UK NFC Adoption Roadmap 2007 First consumer NFC phone available in May. O2 starts trials at O2 dome. Barclaycard/Visa deal with Transport for London – Oyster credit card London launch of retail cash replacement in September/October 2008 Start of national roll-out of cards and Merchant POS systems Bank trials with new form factors (watches, key fobs, etc) Campus/closed pilots/roll-out of NFC phones driven by leisure/ents sector 2009 NFC phone deployment driven by virtual network operators Bank/Transit operator issuance of ‘’virtual cards’ to mobile phones viable Smart-poster interactive advertising being used by agencies/brands 2010 NFC phones becoming mass-market (50% new phones have it) NFC loyalty/voucher redemption retail infrastructure becoming available 2011 80%+ credit-/debit- cards migrated to include contactless interface 80% of relevant Merchants have contactless POS

13. Glue4: Contact Us Neil Garnerr Web: www.glue4.com neil@glue4.com Phone: T: 01603 283422 F: 01603 283434 M: 07740 305110 Glue4 Technologies Limited The Royal 25 Bank Plain Norwich NR2 4SF UK