Mobile Gaming Revenues Are Set To Increase By 130% Over The Next Year

In two recently published forecasts — the Forrester Research Mobile Media And Application Spending Forecast, 2012 To 2017 (EU7) and the Forrester Research Mobile Media And Application Spending Forecast, 2012 To 2017 (US) — we looked at mobile and tablet content usage for games, music, video, and messaging across the US and seven countries in Western Europe.* As content availability becomes more synonymous with handset choice, the forecast helps understand the proportion of mobile commerce that can be attributed to those who use and pay for digital content.

More than 80% of worldwide app downloads in 2011 were for Apple and Android devices; these accounted for more than 16 billion downloads. Gaming apps dominate mobile app spending; this is driven by both an increase in the number of users playing games on their phones and the amount of in-game spend, which accounted for more than 60% of mobile gaming revenues. In the US, about 76 million mobile and tablet owners regularly play games on their devices; with only a third of these regularly downloading games, there’s a great opportunity for growth in both mobile advertising and mobile gaming revenues.

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Prepare For The Second Wave Of Apps

 

In July 2012, app stores — first popularized by Apple — will be four years old. There is still a lot of room to improve the discoverability and sharing of apps. For example, locally relevant content and monetization options are often missing. Adding social discovery, personalization, and recommendation features are key to improving the user experience.

However, app stores have already had a dramatic impact on the distribution of games and are starting to offer new forms of engagement between brands and consumers. Consumer usage of the most popular mobile apps has exploded in the past two years. A third of European online consumers ages 18+ who own a smartphone are using apps daily or more frequently. Seventeen percent are using apps several times a day. Stickiness and frequency of usage vary tremendously from one app category to the other. Among European online consumers ages 18+ with installed apps on their smartphones, 57% use social networking and 48% use news apps at least daily, while 69% use finance and banking apps at least weekly.

First-generation apps — aside from gaming apps — rarely made the most of the unique attributes of the mobile platform and were rarely integrated with back-end systems. We believe the market is poised for a second wave of consumer apps that are more personalized and contextual. Here’s what to expect:

■          “Big data” will enable more contextual experiences on mobile apps.

■          We'll see smarter, connected apps.

■          There will be a shift from native to hybrid and web apps.

■          Multiplatform apps will reign supreme.

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What Can Bank eBusiness Executives Do About The Euro Crisis?

These are worrying times for people across Europe as the euro lurches towards another crisis, with leaders talking openly about the possibility of Greece leaving the euro and reports of customers starting to withdraw deposits from banks in Greece and Bankia in Spain.

It's easy to feel powerless in the face of such powerful forces, but fundamentally the repeated euro crises are about two things: debt and confidence. Lots of individuals, small companies, banks and governments across Europe have a large amount of debt, and lenders -- depositors, investors and other banks -- aren't completely confident that all of them will be able to pay it back. It's critical to avoid a vicious spiral of declining confidence that will harm Europe's economic prospects and the livelihoods of its peoples.

What can bank eBusiness executives do about it? Remember that you control two of your bank's critical communication channels:  the website and email. Use them to reassure customers. How?

  • Help customers understand what the crisis is about. Banks aren't just about products. Your purpose is to help customers manage their money. Help your customers understand the causes of the crisis and the reality of the hard choices facing Europe. Nobody likes realizing that they are poorer than they thought they were. Without getting political, help customers understand the situation and what it means to them.
  • Spell out why your firm is safe. My bank emailed me on Thursday to remind me that it's covered by the British government's Financial Services Compenstation Scheme, covering up to £85,000. Put a similar message on your home page and onto the secure site, where online banking customers are most likely to see it.
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How to Start Your eCommerce Business in China

China has become the leading emerging market for many Western brands and retailers. For many businesses, the growing spending power of high-income consumers and the middle class in China has become a compelling growth engine. For luxury brands, China is already a huge growth market, and many Western companies have had a brand presence in China for many years, albeit often with counterfeit products and even whole counterfeit stores. But as the economy grows in China and consumer thirst for foreign brands increases, companies will be compelled to consider an online direct-to-consumer presence due in-part to the following factors:

  • The scope of the Chinese market is immense. Not only is China one of the largest in the world by area, it already had more than 171 cities with more than 1 million inhabitants as of the country’s last census, which has likely increased markedly in the last 10 years. While launching physical stores in core markets such as Beijing, Shanghai, Chengdu, Guangzhou, and Shenzhen may be feasible, reaching even just the top-tier cities is extremely challenging operationally, particularly for a Western brand or retailer. eCommerce presents an important way to reach consumers across the entire country while complementing any decision to invest in core physical retail operations.
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HubSpot Attacks Middle Of The Funnel On Its Quest To Dominate The Marketing Software Industry

HubSpot has been on a tear, claiming close to 7,000 clients using its Inbound Marketing software to generate leads at the top of the funnel. Most of these clients are self-employed business owners who do their own marketing and small businesses that have a couple marketers on staff.

At its Analyst Day yesterday, HubSpot’s Brian Halligan and Dharmesh Shah shared some new capabilities of what HubSpot now calls All-in-One Marketing Software. The news should surprise no one, as Brian was clear when he acquired Performable last June that the company wanted to expand from top of the funnel to middle of the funnel and move further up-market to the medium-size enterprise space.

 Here are a couple of my takeaways from the day:

  •  Expanding into middle of the funnel makes perfect sense, as the B2B marketing leaders I work with who are trying to transform marketing from providers of "air cover" to drivers of demand have to drastically increase the flow of new leads into the funnel to make it worthwhile to automate the engagement of those people as they move through the funnel. When HubSpot’s SMB customers improve top-of-funnel performance, they move the demand-gen problem further down and are using tools like Eloqua and Marketo. Now these folks can have a single platform for managing the top and the middle.
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The Right Way To Globalize Your Interactive Marketing Programs

I have a tailor named James.

Well, I say I have a tailor, but in truth I’ve only commissioned one item – a jacket – and it’s not done yet. I had an initial fitting about 10 days ago, and I’ll collect the finished article next week.

I decided to find a tailor because I was tired of off-the-rack suits that never fit quite right. So James took more than a dozen measurements. We talked in detail about sleeve lengths, and lapel widths, and how I liked my jackets cut. And once he’d made a sample, I tried it on so James could get the details just right. I expect it’ll be a perfect fit.

When you look at your company’s marketing efforts from one country to another, how well would you say those programs fit? In the past year I’ve worked with a bank, a consumer goods manufacturer, and a pharmaceutical company that are all struggling with how to globalize their interactive marketing programs. And while most of them had a couple different issues holding them back, there was one common theme: The global programs rarely fit the local markets.

Local interactive marketing managers tell us they’re also tired of shopping off-the-rack — in their case, being handed one-size-fits-all sites and strategies that aren’t tailored to their markets — and that they usually don’t have enough resources to make the proper alterations. The result is a choice between using ill-fitting global programs that don’t meet local needs or creating cheap one-off local efforts that don’t meet global guidelines or standards.

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The Fight Over TV Is A Fight For Platform Power

You’re in for a big surprise. Microsoft is winning one of the most important battles in the digital world: The battle for the TV. The TV battle is important for reasons you already know: TV consumes more time than anything else and it generates annual revenues from $140 to $160 billion each year in the US alone.

But the stakes of the battle have risen sharply. The fight over the TV is really a fight over the next massive consumer platform that is coming up for grabs. Of platforms there are few: Google owns search, Amazon owns digital retail, Facebook owns social, and Apple owns consumer devices. Microsoft owns, well, nothing at the moment, despite its handsome revenue stream from Windows and Office.

That could change soon. Microsoft’s Xbox 360 is already the most-watched net-connected TV device in the US and soon, the world. With more than 70 million consoles in households worldwide – as many as half of them connected to the Internet, depending on the country – Microsoft can rapidly drive new video services into tens of millions of households.

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Adobe Partners With hybris: What It Means

Adobe recently announced its partnership with hybris. This deal has been a poorly kept secret as Adobe waited to make public announcements at its customer summit even after it has been out selling the joint solution and working with partners. Adobe is integrating the hybris commerce platform with  Adobe's Web Experience Management (WEM) solutions, an artist formerly known as Day CQ5. This is intended to add commerce capabilities to the CMS/CXM solution represented by WEM. Companies should consider a number of things when evaluating this product relationship between hybris and Adobe, including:

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Online Marketplaces Set To Proliferate

It seems online marketplaces are cropping up everywhere. Retailers, software companies, media companies, and consumer electronics makers are using marketplaces as a means to enhance and augment their own offerings with products made, owned, and distributed by third-party retailers, distributors, developers, and brands. The most successful examples of these today are of course Amazon’s Marketplace, eBay, Apple’s App Store, and Valve’s Steamworks. But based on numerous inquiries of late, soon we will see many, many more marketplaces online. Key reasons why we are seeing the proliferation of marketplaces in the next 18-24 months:

  • For retailers, it’s about growing the assortment without the inventory risk. Larger scale pure-play online retailers and multichannel retailers look to the significant growth of Amazon.com’s marketplace — which today comprises approximately 35% of Amazon’s gross retail sales — and wonder if they could also benefit from a marketplace. Adding a marketplace provides the opportunity to extend the product assortment and available pool of inventory without taking on the inventory risk and expense of merchandising, buying, warehousing, and shipping an assortment in unproven categories. For some it may be even a way to bring licensed products under a brand umbrella. Amazon’s model is to take roughly half the margin of the products sold — based on expected margin by category — as the fair value of driving that demand, but they bear none of the inventory sourcing, carrying, or logistical costs.
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Measuring Mobile Success . . . How Is Real-Time Data Making Your Customers Healthier And Happier?

One of the key things that differentiates mobile phones from any other device is their ability to deliver a constant stream of real time data coupled with the processing capability to help consumers make a wealth of decisions based on this information. Tablets — we're going to leave home without them, and the majority of connections are over Wi-Fi. Wearable technology collects real-time information and may have applications/display, but we aren't yet seeing devices with the same flexibilty as the phone. The highly anticipated Pebble may yet be the device, but for today, it is the phone. (My colleague Sarah Rotman Epps writes a lot on these devices — see the rest of her research for more information).

With that fact established, my open question is, "Who is making my life better with this ability to process information near instantaneously to help me live a better, healthier life . . .  or at least how I choose to define it?" I think the key to measuring mobile success must lie here — from the perspective of the consumer first before mobile will deliver huge returns in the form of revenue or lower operating costs.

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