Posts Tagged ‘Mobile’

Apple has done it yet again. According to the Q1 2010 results (source), consumers snapped up 8.7 Million iPhone devices this past quarter. While a few mobile market analysts feel that Apple missed their sales target (BTW, some expected sales to reach the 9 Million to 11 Million units mark), the growth of the iPhone still represents a healthy 100% increase in sales in comparison to the same quarter last year.

In my discussions with Marketers, I’m regularly asked whether iPhone app development or iPhone mobile campaigns make sense considering the dominance of rival smartphone devices such as RIM’s BlackBerry. There’s valid concern if you consider only the number of mobile devices but that number isn’t as important when you consider usage. While RIM currently outsells Apple in smartphone devices (RIM sold 10.1 million devices in the quarter ending November 28, 2009 whereas Apple sold 7.4 million iPhones in about the same period), the iPhone accounted for 60% of page views AND 75% of mobile revenue at the top online retailers this past holiday season according to Omniture (source). So while BlackBerry devices are more prevalent, users avoid using this device to browse the web. This decision is likely based on the poor web browsing experience. And Marketers that are considering the accessibility of their website should optimize it for the iPhone.

So Marketers that want to interact with the largest group of mobile users should first focus on the iPhone platform — nothing else compares. But besides usage, Apple provides plenty of additional reasons for why the iPhone platform will also win in the long run:

• The current quarter’s iPhone unit sales numbers exclude the 55% year-over-year growth in sales of the iPod Touch. The iPod Touch is a Wifi-enabled mobile device that supports many of the iPhone applications. The iPod Touch user segment represent a group that is not bound by telephony service but are still connected (likely to be a younger demographic).
• Sales growth was driven by strong global demand. This implies that marketers can now expose their application/campaign or brand to an international audience (while facing the challenges that come with such a relationship).
• With the introduction of the iPhone 3GS, demand for the iPhone has spilled from the consumer market over to the enterprise market. Apple reported that 70% of the Fortune 200 are either deploying or piloting the iPhone. While marketers may have previously focused on the business to consumer or B-to-C market segment, they now have an opportunity to create applications that address the needs of the business to business or B-to-B market.
• Apple continues to invest heavily in customer service, whether it is through training of mobile carriers on device or one-on-one coaching of new customers at their 283 stores (currently present in 10 countries). This is a critical tactic for Apple to attract and service an older demographic of users that may not be as comfortable with touch-based technologies.
• The numbers did not account for the  upcoming product introduction of a tablet-like device. This highly anticipated announcement is expected tomorrow but the value of this news is that Apple will give marketers yet another device that will support mobile applications. The segment of the users that select and use this device is still unknown but it is potentially a new group of untapped users.
• Lastly, Apple has completed two recent acquisitions: music streaming service Lala and mobile advertising platform Quattro. Both represent the company’s continued future-looking view on revenue generation and demands.

Apple seems to be benefiting from a positive feedback loop. While the iPhone does have its flaws (it is not a perfect mobile device!), Apple has built an elegant smartphone unit that is extremely user-friendly. Additionally, iPhone users regularly promote their smartphone to other non-users in their social circles so the masses are choosing iPhone when deciding to go mobile (source). For brands that are still on the sidelines or ones that are only focused on the alternatives (which is a mistake; source), there’s no better time than now to jump on the iPhone platform bandwagon.

Google announced yesterday a 7% uptick in revenue growth for the quarter ending September 30, 2009, compared with the quarter a year ago. Google also used the earnings announcement to signal that the downward pressures from the recession appears to be subsiding. While the earnings call primarily focused on revenue and search trends, Google executives also discussed mobile marketing in detail (sources: Q3 2009 earnings call transcript and Extended Q&A Call Transcript). Here are some points that I wanted to highlight about the trends in mobile marketing:

Mobile search is experiencing a quarter-over-quarter growth rate of 30% in Q3 2009. The current momentum in mobile is resulting in a simple pile-on effect. Demand for mobile is surging on the data side: according to a recent report by CTIA (source), wireless data service revenue is up nearly 40% in the past 6 months of 2009 (ending in September). Consumers adoption of smart phones is finally expanding; they are seeing how these devices simplify their life and enable them to be more productivity while away from the internet connected laptop or desktop. With these devices, they can easily communicate with their friends via text and research locations and/or products while in transit.

Mobile advertising offers Marketers a novel touchpoint to engage consumers. While Google executives admit that search volume is still light in comparison to desktop search, marketers are extending their campaigns to these devices because they can expose the consumer to one additional message. This is important because today’s advertisers need to smack consumers with multiple touchpoints to effectively wrangle a behavior out of them, like a product purchase. Since advertising is still fairly new on these devices, Google executives claim that mobile advertisements are more effective at driving clicks. While it is understandable that consumers may find these ads more engaging, I’m hoping to find data on the effectiveness of the ad beyond the click. [NOTE: If you have some, please share!].

Marketers need to match the message to the mode when they interact with a consumer on a mobile device. A few big brands are toying with mobile commerce. For example, Starbucks recently released a mobile application that allows consumers to buy a coffee via an iPhone. While Starbucks seems to have found a gem of an idea, Google executives confirm that there are currently a limited number of applications that can engage a consumer on a mobile device. This is partly attributed to the consumer being in a different mindset or mode when they are on their smart phone. They are basically “snacking” on information. Additionally, Marketers need to recognize that their mobile message needs to be different than their email message because of the wide range of technology support on these devices.

Mobile is not going away. The final point that Google made is that they’re going to continue their investment in their mobile platform Android. Google has plenty of cash on hand so Marketers that are thinking that mobile marketing has no future should reconsider. While mobile advertising is still in its infancy state, it seems to be maturing at a rapid clip so marketers should not ignore the power of mobile.

I love the LinkedIn Groups. I think LinkedIn has a good shot at cornering the “business social networking” space. They’ve been doing some cool things over there and I think they’re on a great path. If you’re not on LinkedIn, get on it. If you are, connect with me.

In the TRENDYLAB – MARKETING, TRENDS, INNOVATION & CONSUMER INSIGHTS GROUP (yes, its a mouthful but good people and conversations), this discussion was posed by Greg Satell: 3 trends that will Shape the Digital World over the Next Decade. He answers it here. My answer was the following:

1) US telecom restrictions loosening to allow real mobile innovation

2) Social networking and e-commerce are going to come together rapidly, making the online shopping experience much more like the offline experience

3) People will continue to build their brands online and when we think of “online branding” our first thought won’t be corporate entities, but rather people’s brands and how we get permission to interact with them, not the other way around

As always, please let me know what trends you think we’ll see over the next ten years, because most likely I’m way off

Analysts say this is the year of the coupon, with most of our nation increasingly looking for ways to save money and stretch their dollar. And online coupons, with their convenience and targeted display to the user, continue to be a great driver to a brand experience and/or purchase.

Scientists say online coupons have higher impact than print coupons. They test our “Key Neurological Metrics” like attention, emotional engagement, and memory retention. Ok, so eye-tracking and galvanic skin response is exciting for the folks behind that study, but most of us are excited by extra savings in our shopping cart.

Most of us shoppers get coupons from:

•  coupon subscriptions sites
•  links direct to loyalty cards
•  check the wildly popular “mommy blogs” for daily coupons
•  and some like me send them directly to their phone. (I love mobile coupons. But I don’t want to have to print anything out or read cryptic numbers to a store check-out associate.)

Today I tested out two coupon provider companies. First was Coupon Sherpa’s free app for the iPhone. It was super easy to install and displayed coupons available at retailers in my area quickly. After scanning the list, I viewed the Smith & Hawken coupon on my browser. Sadly, the webpage wasn’t optimized for the iPhone (which you would think they could have managed the display size of the webpage knowing I was on an iPhone!?). CouponSherpa also provided the location of the nearest store and the ability to email the coupon. I tried the process again with an AMC Theatres coupon, but in this case the coupon had to be printed to be redeemed, which meant emailing it and then taking a physical print into the store. No thanks.

Coupon Sherpa

Second test was through the Samplesaint website, which offers scannable mobile coupons. My zip code wasn’t supported, but I was able to go through a sample download. I liked the user experience up until I clicked through the offer text message (basically, up until I had to use my phone). They send the coupon via text message. Clicking through opened up a webpage that had THE SMALLEST size layout and text. (Again, funny, since this site was also supposed to be optimized for mobile viewing, and they could easily detect my iPhone). Samplesaint only gives you 20 minutes to use the coupon once you click “checkout”. This is a usage barrier for me, since I will probably complete this process BEFORE I enter the store, rather than while shopping. Still it’s worth checking out. I’m wondering if the service is available for any of you non-Atlantans?

The Samplesaint coupons on my iPhone

I’ll keep testing and providing feedback – and in the meantime let me know what has been your best online coupon experience. And while this entry focused on the front-end, stay tuned for follow-up from an esteemed colleague on the technical side of the scannable coupon technology evolution…

Back to work on a online display advertising campaign that is actually offering a $2 coupon (jackpot!) for an eye drop. Now that’s savings to tell yo momma about!

Published on February 24th, MobileMarketer.com 

Distressed inventory in the travel business is the unsold hotel rooms and airplane seats that become available at the last minute on travel Web sites at fire-sale prices.

But a hotel manager in the near future could be relying on a proximity-based bidding network to convert a cancellation into a booking.

Today, travel brands typically attract consumers to peruse these bargain-priced goodies by dumping them on a travel portal – hotwire.com, priceline.com, Orbitz – or by sending promotional emails and text alerts to email addresses and mobile phones.

Yet a proximity-based marketing network could advertise discounted rooms to travelers driving along the interstate when they are just miles from the property. Room offers could be dispatched to car navigation systems and trigger an alert on the screen.

Road warriors who need a place to stay between sales calls and like the price can follow directions on their Garmin or TomTom to speed-dial on their mobile phones and book a room.

Hotel loyalty card members – Priority Card, Starwood – can pre-set preferences for room types and price these holds based on when they are travelling in order to get approved text, email, phone or OnStar alerts.

The technology to pull off this transaction hasn’t been implemented yet. But the transformational marketing power of proximity-based apps is coming and it will move people to take action.

One form of this advance already is operating in Japan and was exported recently to the United States.

The company, AdLocal, pushes messages to the GPS-enabled and 3G mobile phones of people who have opted into the network.

Retailers and restaurant operators sign up for the channel that sends ads and digital coupons whenever the handsets of consumer subscribers are within four kilometers of their business.

Advertisers also can choose to send mobile messages when subscribers are near the address of a competitor or in a neighborhood they want to target.

Proximity-based applications are spreading. For some time now, fans of social networks have been loading apps to their phones that broadcast their location and messages to friends, who were pre-registered or pre-invited to participate, when they are nearby.

Technophiles are synchronizing their home and office computers with mobile phones through free apps downloaded from the Web.

One called Home Zone enables password entry and calls up a screen saver when the user walks away with his or her phone from the Mac computer. When the user and phone return, the app disables password entry and stops the screen saver.

Home Zone also enables people to set up the software to play iTunes selections, preset the volume, open files and activate the networks their computer taps into just by coming and going with their phone.

We carry our phones almost everywhere. So it’s plausible to imagine carmakers contemplating a Bluetooth proximity app that starts a car as its driver approaches the vehicle. How about home security systems that automatically turn on the house lights and deactivate alarm systems as returning homeowners walk toward their front door?

So why not a marketing channel that engages people when they are near your business but too far away to see the signs posted on your storefront?

You can bet there is a horse race underway between the Web portals, geo-targeting agencies, wireless networks, handset providers and many others to deliver the Holy Grail of locally targeted advertising and fulfillment.

Raj Choudhury is Atlanta-based vice president of digital services atEngauge Digital. Reach him at rchoudhury@engauge.com.