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During my presentation at Forrester's Marketing Forum on April 23, I previewed Forrester's latest forecast of interactive marketing spend. We expect marketer spend on display media, search, email, mobile and social media to reach nearly $55 billion by 2014.
I had breakfast last Friday with Robert Tas, CEO of Sportgenic an ad network and advertising management platform focused on targeting advertising to sports enthusiasts. He was in Boston meeting some agency partners (although he did manage to catch game 7 of the Celtics/Bulls series while in town!)
He shared a few observations based on ad sales at his business so far this year:
If you're looking for a best practice on developing mobile strategies, take a look at what E*TRADE is doing. They had a successful launch of an application for Blackberry devices last summer. They are following that today with the release of an application for the iPhone and iPod Touch. See their press release. They have some good numbers on how well their mobile service has done to date. Forrester Research will be publishing a more in-depth analysis later this month. Stay tuned.
This week, IBM introduced its first two IT management appliances targeted at small and medium businesses. These first two solutions are part of a family that will eventually cover all the IT management needs of an enterprise, and cover availability and performance (IBM Tivoli Foundations Application Manager) and service desk IT services (IBM Tivoli Foundations Service Manager). The benefits expected are a rapid deployment at a lower cost due to the inclusion of automated configuration and deployment solutions. by itself, this is not really new and neither is it a complete revolution. Years ago, Oculan (now part of Raritan) and off shout of the Open NMS effort, presented a network management appliance for SMBs, with a similar strategy: sell exclusively through partners who can add their own flavor of services to the solution.
I saw this article in the New York Times this morning about a program being run by Adolescent Pregnancy Prevention Campaign of North Carolina and based in Durham. A similar program exists in California.
Great strategy for communicating with teenagers. Here's why:
- Cell phones are personal devices, and the majority of teens have them. They are also "private" devices in that teens can send and receive messages without anyone knowing what they are doing.
- The majority of teens are on their parents' cell phone plan. They don't necessarily have a data plan for browsing the Internet - only a minority do, and any purchase of a downloadable application would likely show up as a line item on their parents' bill. They send HUNDREDS of text messages each month. Who would notice one or two to an agency asking questions about sex.
- More than 99% of cell phone are capable of SMS and the majority of teens use SMS so the agency achieves maximum reach.
- Many teens are on "all you cat eat" SMS plans - or should be. In any case, a single SMS does not tend to be expensive. So there is little if any incremental cost to the end user.
- SMS is carrier-independent. The service (information provided) doesn't need to be tested on various carrier networks for phones - it simlpy works on all phones.
- Someone covers the cost of the short code as well as driving awareness of the service, but in the grand scheme of things, it is not that expensive.
Recently, I was invited to attend an analyst briefing event at IBM's TJ Watson Research Center in Hawthorne, NY to hear about their new Business Analytics and Optimization service line. The company is quite excited about this new service line, which they describe as one designed to use analytics to help companies “improve the speed and quality of business decisions.” They cite some underlying drivers of demand – like the fact that many business leaders say they don’t have enough information to make business decisions, or that many business decisions are based on gut feel – as pointing to the fact that more customers will look to IBM for a quantitative, data-driven analysis of their business situation and options.
Overall, I was impressed. I had a very nice lunch with Fred Balboni (the service line leader) in which, in addition to discussing his ambitious cycling regimen, he explained why the new service line is both important to the market, and consistent with IBMs existing capabilities. The company claims that while the service line is new, they have been doing projects in this area for quite a while as part of their services work.
The US Center for Disease Control (CDC) has confirmed 64 cases of swine flu in the United States and as other countries including Canada (6), New Zealand (3), the United Kingdom (2), Israel (2), Spain (2), and now Germany have confirmed cases, the World Health Organization has raised the worldwide pandemic threat level to Phase 4. This means health officials have confirmed that the disease can spread person-to-person and has the potential to cause "community-level" outbreaks. The CDC recommends avoiding travel to Mexico and if you get sick, to stay home from work. Large numbers of employees out sick will impact the business (revenue) and cost your company a lot of money in productivity loss (you still pay employees their salary when they're out).
Stopping the spread of the disease and treating those infected is obviously a health issue, but the swine flu outbreak does have implications for IT professionals in both the short term and the long term. First, if you haven't done so already, you need find a copy of the bird flu business continuity plan (BCP) that your company developed in 2006 and call a walk through exercise immediately. And if your responsibility is IT disaster recovery and not necessarily business continuity, don't wait around for someone else to dust of the plan and call the exercise - this is too important to wait. Call your CIO, CISO, COO, and CEO and tell them it needs to be done now. There's a good chance that the plan is out of date and that it hasn't been exercised in a long time.
Last week, the number of downloads to Apple's iPhones and iPod Touches finally topped one billion. That is an impressive number coming from approximately 30 million devices in the market.
The word "iPhone" in the title of any newspaper article or otherwise turns heads and sells. I would offer, however, that the impact of the iPhone and its potential have been under-hyped. I believe that the impact on the industry is comparable to that of SMS. May not seem that way today, but it will in the course of time.
Here is a partial list of what it has accomplished so far. Apple has:
- Taught carriers that they don't need to own the end customer experience to profit from those customers.
- Demonstrated that consumers will pay for an experience that is unique and extraordinary.
- Shown carriers that they do well serving the average customer, but aren't equipped to serve each segment best.
- Taught consumers how to download applications to their cell phones.
- Taught consumers that their cell phones could do more than voice calls or text messaging
- Created a platform and a business model that is truly compelling to developers.
- Taught US consumers what "3G" is and accelerated demand for it.
- Weren't afraid to leverage their existing 60+ million billing relationships
- Shown us we don't need "open" for a great consumer experience
- Have ever consumer brand in the country thinking they need an iPhone application
I look forward to 3.0 and its possibilities. I don't think enough is being said about what Apple has achieved.
Ok, I admit that I used the word "iPhone" in the title to seek attention, but it is true. My first experiences with Stanza were on my iPhone. A friend suggested that I download the application. Free download. I often asked, "what is the business model?" Selling the technology is one possibility. The creators of Stanza have made a lot of money on an iPhone application. See release.
More seriously, it is an interesting play for Amazon. Heavy users of a service/function on a portable device - whether a PND, MP3 player, etc. - lean towards buying dedicated devices. I have a Kindle, and I love it. I have the Kindle application on my iPhone, but I don't use it. Casual users of these services will buy and use devices that are multi-purpose. Moreover, users don't want to worry about file formats. Lexcycle fills in some of these gaps.
Content players need distribution, content strategies and business models that span the range of portable devices. Adoption outside of laptops and cell phones is limited today, but devices such as portable media players, netbooks, etc. are filling in the space in-between.
Mobile strategies extend beyond a cell phone presence - more so for media companies today than those in other industries.