1. Connecting with Shoppers in the Digital Age Kevin Mathers, Industry Leader, Technology UK Date of the presentation

2. THE JOY OF DATA MAKING IT UNIVERSALLY ACCESSIBLE AND USEFUL COPY COPY.

3. THE JOY OF DATA – REALTIME INSIGHTS

4. MOST ADVANCED ECOMMERCE MARKET IN THE WORLD The largest per capita e-commerce market Second largest online advertising market after the US The UK has above average internet penetration within Europe Average spend per internet shopper doubled between 2006 and 2010, In 2009 the Internet economy was worth £100bn or 7.2% of GDP - larger than the UK's construction, transport and utilities industries, and slightly smaller than the finance industry (at 9% of GDP). The UK internet economy is forecasted to grow at 10% y/y, and to constitute 10% of GDP by 2015

5. DATA DRIVEN DECISION MAKING Website usability improves user experience and therefore conversion rates Before After 20% reduction in bounce rate Multi-variant test and learn, based on the DATA 7% increase in conversion rate

6. CONNECTING ONLINE DATA TO OFFLINE SALES NUMBER OF PEOPLE MAKING DECISIONS IN STORE HAS HALVED Source: Longitudinal Economic Study Series, IRI Attitude Link, n = 1,000+ shoppers. CPG Purchase Decisions. IRI, 2009.

7. CONNECTING ONLINE DATA TO OFFLINE SALES The ZeroMoment of Truth The FirstMoment of Truth

8. ONLINE ACTIVITY TO OFFLINE SALES CAN BE MODELED DRIVERS OF SONY BRAVIA OFFLINE SALES Offline Sales Volumes(Sony AU) September 2009 – August 2010 TV, Print, Outdoor Pricing Paid Search +3% Seasonality Base Sales 33% August June July May January March April November December February October 2010 2009

9. CONNECTING ONLINE TO OFFLINE BY TESTING GEO-TARGETED EXPERIMENTATION “Vodafone’s additional investment in generic and upper funnel keywords was an effective way to drive incremental in-store sales. We now have a better understanding of the impact of online research on retail purchase behaviour and we’ll have to rethink the way our current attribution model works.” -Mike Durbridge, Head of Direct Sales, Vodafone UK

10. WE HAVE DONE MANY EXPERIMENTS TO PROVE THE THEORY Offline lift Halo effect Increase in store sales of non-tested categories from online advertising* Up to 3.5% Increase in store sales through online advertising* 1.5% – 4.4% ROPO ROAS % of all retail sales researched Online prior to Offline purchase** 31% - 48% Average offline gross margin driven by online advertising*** 12.5 : 1 * Based on 40+ studiesconducted in the US and Europe in 2009 and 2010 ** Consumer Commerce Baromerter Western Europe, Google/ IAN/ TNS 2010 (Multiple Retail categories in DE, Es, FR, IT, NL & UK)*** Based on 7x EMEA Retail studies covering Retail categories

11. BUT CLOSING THE LOOP ONLINE TO STOREHOW DO WE GET IT TO BE REALTIME? MOBILE CAN START TO CLOSE THE LOOP Google Wallet South Korea Tesco Case Study

12. ‘MOBILE FIRST’ THE LOOP WILL CLOSE WHAT WILL YOU DO WITH ALL THE DATA? “I keep saying the sexy job in the next ten years will be statisticians. People think I'm joking, but who would've guessed that computer engineers would've been the sexy job of the 1990s?” – Hal Varian Chief Economist, Google

13. THANK YOU!