If you are in the mobile industry and you've never heard of Foursquare, there is something wrong with the way you keep up to date on new trends. Indeed, Foursquare is one of the most hyped social location services, enabling users to "check-in" to locations in the real world from pubs, bars and restaurants (through to any conceivable location) - sharing them with updates on social sites like Twitter or Facebook, wrapping points and benefiting from potential discounts. Foursquare recently announced it had passed the 1M users mark. The rate of growth is indeed quite strong, bearing in mind the company had just 170,000 users at the end of 2009. According to TechCrunch, Yahoo! was rumored to have made an offer above $80M to acquire the start-up! I am not a financial analyst, but let's say $100M for just 1M users seems high at first sight. So what makes it so valuable and why is foursquare being perceived as the new Twitter? Here are a few thoughts:
- First of all, foursquare is not the only one in town but is probably the one with the most active PR team. It struck some interesting deals with Metro newspapers, with TV channel Bravo, with Vodafone in the UK (on-deck and via SMS promotion) and more recently with even the Financial Times, if we believe business insiders. What makes it quite successful is its entertainment-centric approach. It is quite addictive as it is primarily an interactive game. There are others (not only Gowalla) such as MyTown (a sort of a real-world monopoly), which passed the 2 million active users mark a few days ago!
I just returned home from a trip to Bangkok and Bhutan. Civil unrest in Bangkok kept me from wandering as much as I would have liked. I had a lot of opportunity in Bhutan, however, to wander about and talk to people. As a bit of a background, Bhutan is a land-locked country bordered mostly by India to the south and China to the north. Much of the northern portion where we traveled is covered by mountains, so wireless is the primary infrastructure for communications. The average annual income is about $1,300, so they are not a wealthy nation. They've only been allowed access to TV and the Internet for about 10 years.
A consumer brand might argue that in a country where the annual income is only $1,300 and little infrastructure exists for the import of goods, there isn't much point in marketing -- let alone a digital marketing strategy that includes mobile. Countries like these are opening up, however, and their wealth is growing. Personal care products and Coca-Cola was on the shelves in most of the small shops we passed. In a country where cell phones certainly outnumber PCs and cellular connections (even if prepaid) must outnumber fixed, mobile has to be part of the mix.
Teenagers had cell phones. One of my guides had a Nokia N73 and the other had a Nokia Xpress Music. These aren't dumb or cheap text-only phones. They have high-resolution screens and are capable of music, videos and Internet. (My guide was checking and posting to Facebook DAILY.) Monks had cell phones. Women selling vegetables in open-air markets had cell phones.
I was the photographer at a wedding this weekend. We used the KIN phone to take photos throughout the course of the day - hair styling, make-up, and the event. We also exchanged a lot of messages: "We're running late! Someone else has to go pick up the cake," etc. Here's a quick snapshot of the Web page below.
We saw Nokia do this with with their Lifeblog a number of years ago. The KIN Studio has similarities. I would have to say I was sitting on the fence a bit re the dictated cloud services approach to the KIN photos. Over the weekend, I was happy that I didn't have to say "ok, now sync" or upload them one at a time - I liked that it just happened. Would have been fun for everyone at the event to have one of these phones.
Forrester’s IT Forum 2010 in Las Vegas (May 26-28) and in Lisbon (June 9-11) is around the corner, and our team is looking forward to the opportunity to share our latest experiences, research insights, and strategies for maximizing the value of your technology and vendor investments.
The theme this year is "The Business Technology Transformation: Making It Real." As firms embark on the transformation from IT to BT, sourcing and vendor management professionals must assume new roles. They must help the business understand key technology trends and the trade-offs of new and legacy sourcing models. They play a crucial role in optimizing technology spend -- and in making sure their firms are taking advantage of newer models like SaaS and cloud services where it makes sense.
We’ve got a series of great sessions focused on sourcing and vendor management strategies for making BT work across major areas of technology investment in applications, infrastructure, services, and telco. The sessions include:
3) The present social model is mismatched to CEOs.
The average age of the world's top 100 CEOs is 59. This places them in the "typewriter and whiteout generation" -- many years removed from AOL Instant Messaging, Facebook, text messaging, and other early and late social technologies. Current CEOs lack affinity, knowledge, and comfort with social -- limiting their usage.
CEOs face unique constraints. Their companies possess carefully crafted messages emanating from public relations, advertising campaigns, and investor relations -- a CEO could dilute or scramble these messages in a weak blog or Twitter moment. Regulatory issues surround the CEO -- Sarbanes Oxley, Regulation Full-Disclosure ("Reg FD"), FTC guidelines, European Union regulations -- which limit his ability to speak his mind. CEOs always seek to minimize risks of litigation, loss of intellectual property, offending customers, offending investors, angering employees -- all increased with a social profile. Imagine if Lloyd Blankfein, the CEO of Goldman Sachs, was blogging from 2004-2008 about the high quality of his company's investments -- those posts would be Exhibit A in any case against Goldman.
A couple of weeks ago I published a Data Digest on European consumers’ media consumption. One of the questions that always comes up when I present this data to clients is how focused consumers are when they're watching TV or using the Internet. Our Technographics® data shows that consumers aren't focused at all: About 40% of US youth were watching TV the last time that they used the Internet, and a third were texting.
But consumers don’t just multitask across different channels; they also do many different things on the PC at the same time. We asked European consumers the following question: "Which of the following activities do you regularly do at the same time when you’re using your PC (by that we mean that you are combining multiple activities)?" About half of European youth use IM when using the Internet, and about 60% listen to music. Undivided attention is something that's hard to find these days.
Forrester’s IT Forum 2010 is right around the corner, and much of Forrester’s research community is gearing up for a great event. Having spent a considerable amount of time working on the content, I’m really pleased with how the industry keynotes are taking shape. If the growing attendance figures are any indication, our theme of “making the business technology (BT) transformation a reality” seems to be resonating with CIOs. I think Forum attendees are going to enjoy the real-world examples provided by keynoters such as Stephen Gillett, SVP, CIO, and GM of Digital Ventures at Starbucks.
Stephen is one of the rising young stars in the IT industry, helping transform Starbucks’ digital business. At IT Forum, he will be talking about how to elevate the role of the traditional CIO to that of a digital business leader. We thought we’d give you all a chance to pose a question of Stephen about the changing role of the CIO. Please leave your questions for Stephen in the comments section, email them to us, or tweet them to us @Forrester. We’ll choose the best of those questions, ask Stephen, and post his answers here during the week of May 17.
I had the pleasure of hosting an IT Services Marketing Association (ITSMA) workshop, “Building the Business Case for Social Media in B2B Marketing” at our London office this week. There were 12 IT services marketers attending, and we all enjoyed very informative presentations led by Moira Clark, Professor of Strategic Marketing at Henley Business School. Moira has lots of practical experience and did extensive research work for Cisco in 2009. We also heard from DNX Ltd, a marketing agency with several tech vendor clients, as well from LinkedIn.
I certainly learned a lot personally about using social media - there was quite a bit of “hands-on” work: assessing a company’s social media strategy, comparing listening platforms, and launching a community. Here are some of the highlights that I remember most (and consider me an experienced tech marketer now trying to understand the impact of social media on the marketing mix).
As part of a larger project that Harley Manning explained in a recent blog post, I've published a document that evaluated the customer experience at six top Canadian Bank Web sites. The premise was simple: we wanted to test how easy it is for a user who wants to find a checking account at a bank with a local branch that has weekend hours. We also wanted to know the fee structure and minimum balance requirements.
How did the sites perform? Overall, they did poorly, with no site achieving a passing score on our Web Site User Experience Review methodology. All of the bank sites we reviewed provided the necessary content and function needed to complete the goal, but none of them did so in a way that was contextual, findable, understandable, and trustworthy. Specific problems that plagued the sites included missing or misplaced content and function, inefficient task flows, and poor use of space, to name a few.
On the plus side, each of the sites provided a lesson for others to learn from. For example, while National Bank of Canada scored lowest in our evaluation, its page that sets up the application process clearly lists eligibility criteria, the information required to open an account, and a clear list of the steps in the online application process.
Efficient Frontier announced last week its official entry into display advertising with a platform that integrates biddable display with search marketing, real-time bidding capabilities, and the Efficient Frontier trademark portfolio approach to optimization that uses predictive modeling to forecast performance outcomes.
I think this certainly indicates further momentum into the world of biddable display media, and eventually biddable media in all formats. See more about Forrester's thoughts on dynamic media buying and what it will mean for media buying on and offline in the report, Demystifying the DSP.
I think the platform from Efficient Frontier addresses a much needed combination -- that of paid search and biddable display media. But I also think that this platform, competing ones -- like those developed by Vivaki -- and demand-side platforms are in “version 1.” Not a bad place to be at the early stage of an emerging opportunity. But I do expect that all of these tools will refine over the next two years. I think they will continue to add data sources, more inventory, additional and easier to use functionality, better metrics, and better reporting. But v.2 will develop only after advertisers begin testing dynamic media buying and can show technology players what additional depth and breadth they need.