Mobile Is Not Yet Delivering On Its Marketing Promise

Tracy Stokes
Is this the long awaited year of mobile?  Last week Facebook announced that its quarterly profits had more than doubled driven in a large part by mobile; 62% of Facebook’s ad revenue now comes from advertising on mobile devices. Forrester forecasts that mobile will be the fastest-growing digital marketing category in 2014, increasing 47% in 2013 over the prior year.  And Forrester believes that we are witnessing a mobile mind shift — “the expectation that I can get what I want in my immediate context and moments of need.” 
 
But mobile’s marketing moment has not yet arrived.  While consumers continue the rapid shift to mobile, marketers have not yet realized mobile’s brand building potential. Because for too many marketers, mobile remains a tactical underfunded offshoot disconnected from a CMO's brand building efforts.  This is a missed opportunity.  
 
Marketing Need A Mobile Mind Shift
 
To harness the power of mobile, marketers must start with the experience they want customers to have with their brand, not the technology. Then determine what role mobile can play in delivering, improving, or even reinventing that experience -- by creating, anticipating, or addressing a customer's mobile moment. Because the new battleground for customers is the mobile moment — the instant in which a customer has a want or need.  Forrester has identified three types of mobile marketing moments.
 
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The Social Users Marketers Want To Reach Are On Mobile

Thomas Husson

With Facebook announcing its earnings today, it will be interesting to know more about the performance of video ads and Facebook's teen usage, following my colleagues’ research that showing young people are using the site more rather than less.

I’ll be curious to hear if there is a business strategy update, but I don’t think we’ll have more insights on what “unbundling the big blue app” really means. I think one possible option is that social data and contextual identity will be the layer on top of Facebook’s new social conglomerate.

I personally will be looking more specifically for an update on mobile app installs. There's no doubt that Facebook has disrupted the app marketing space by becoming a key player in app discovery — which is the key driver behind its mobile ad revenues.

A growing and significant part of this business comes from direct marketers looking to drive app installs, primarily from gaming and other businesses that are increasingly dependent on mobile, such as travel and retail companies. These players know the lifetime value of their apps and have calculated how much they can spend to drive each app download and still have a positive return on investment (ROI). But marketers in more-traditional businesses or who are pursuing other marketing goals should pay close attention to the unique attributes of their mobile social users and optimize their social strategies to engage them.

Why?

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Apple Shores Up Its Enterprise Position In Asia With IBM Partnership

Tim Sheedy

You’ve probably already seen the announcement of the partnership between IBM and Apple; Forrester clients can read more about it here, along with our deeper analysis.

While I can’t comment on the trends in North America and Europe, I know that there are some interesting dynamics in the enterprise mobility space in Asia Pacific at the moment. The penetration of technologies like BYOD, customer mobility, and employee-facing mobile apps has been relatively low in many Asian countries, putting the region’s companies behind their North American peers for the most part. I still speak with CIOs and marketing leaders about why they should have a mobility strategy or how they can help their employees stay productive regardless of location.

Don’t get me wrong: There are a lot of smartphones and tablets — particularly iPads — in businesses across the region. But many of these devices, especially the tablets, were personally acquired by employees — so they’re an “accessory tool,” not a core productivity tool; often, corporate tech management doesn’t support them and app-dev teams don’t develop for them.

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A Vendor Arms Race To Fuel Contextual Mobile Apps

Michael Yamnitsky
Vendors across the board are building tools to add context-driven personalization features to mobile apps. Specifically, we see new offerings from vendors in personalization, mobile analytics, API management, predictive analytics, artificial intelligence, and the digital agencies for product and content recommendations, in-app messages, and voice-driven digital assistance
 
Marketers and developers are jumping at these solutions because creating more personalized digital experiences will be critical to remaining competitive. And as CIOs rationalize a larger software platform strategy, these solutions will plug specific mobile engagement gaps along the way. 
 
Want to hear more? In our new brief, Vendors Scramble To Enable Contextual Mobile Moments, we examine how different groups of vendors extend their capabilities to compete in the arms race to deliver contextual mobile apps and provide guidance for CIOs on managing the myriad solutions entering their organization.

Mobile Application Security - The Fight Results

Tyler Shields

A few months ago I posted a blog entry entitled: "Containerization vs. Application Wrapping: The Tale Of The Tape." Well... the bout is finally over and a winner has been decided. Using a virtual tape measure, I analyzed the mobile application technology spectrum to determine which technologies are better suited to deployment in the enterprise and why. The results were about what I expected. The fight went right down to the wire and nobody scored a knockout with the winner being decided with a slim margin over the 8 rounds. Here is the judge's score card:

You can read all about the data behind the analysis and the justification for the results in my latest report: "In The Mobile Security Bout Of the Year, App Wrapping Beats Containerization On Points." 

When Mobile Becomes The New Face Of Social

Thomas Husson

Messaging apps have the potential either to become digital platforms or to significantly enhance the power of current platforms because they so clearly deliver the three things that determine digital platform power: frequent interactions, emotional connection, and convenience. WeChat is for example already morphing into a digital platform offering, thanks to the deep pockets of its parent company, the Chinese Internet giant Tencent.

While today’s opportunities are limited by consumers’ reluctance to engage with brands on such intimate channels and by immature marketing tools, it is definitely time for marketers to experiment and to anticipate the next steps.

Indeed, you’ve surely heard of the second-largest acquisition in tech history, Facebook’s purchase of WhatsApp for $19 billion. However, you may not have heard of KakaoTalk, Kik, Line, Secret, Snapchat, Tango, Viber, or Whisper.

These messaging apps are the new face of social in a mobile context.

Contrary to social media that are generally public broadcast mechanisms that facilitate one-to-many communications, a messaging app is a typically private, one-to-one or one-to-few communication and media tool optimized for mobile. Such smartphone apps can access your address book, bypassing the need to rebuild your social graph on a new service. As Evan Spiegel, the CEO of Snapchat, puts it, “We no longer capture the real world and recreate it online – we simply live and communicate at the same time.”

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Banks In Singapore And Hong Kong Must Step Up To The Cloud Challenge

Fred Giron

Last week I presented an overview of cloud adoption trends in the banking sector in Asia to a panel of financial services regulators in Hong Kong. The presentation showcased a few cloud case studies including CBA, ING Direct, and NAB in Australia. I focused on the business value that these banks have realized through the adoption of cloud concepts, while remaining compliant with the local regulatory environments. These banks have also developed a strong competitive advantage: They know how to do cloud. Ultimately, I believe that cloud is a capability that banks will have to master in order to build an agility advantage. For instance, cloud is a key enabler of Yuebao, Alibaba’s new Internet finance business. 80 million users in less than 10 months? Only cloud architecture can enable that type of agility and scale (an idea that Hong Kong regulators clearly overlooked).

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The Supreme Court Agrees To Preserve Mobile Phone Privacy -- But The Real Conflict Is In The Cloud

Josh Bernoff

American government is divided along liberal-conservative lines on just about everything. But the Supreme Court agreed that you can't search somebody's mobile phone without a warrant, and it wasn't a typical split decision -- it was unanimous. (The other big ruling today, on the controversial question of whether Aereo can sell you streaming access to your own TV channels, was 6 to 3 against Aereo).

Why? What is in your mobile phone?

Chief Justice John Roberts pointed out that they are "cameras, video players, Rolodexes, calendars, tape recorders, libraries, diaries, albums, televisions, maps, or newspapers." You might as well add alarm clocks, wallets, stethoscopes, and running coaches. There is literally nothing about you that your phone may not know at some point (your browsing history probably contains a lot of secrets you may want to hide from some people). If I had a choice, I'd rather have an invasive government search my house than my phone. (I wonder how many of them have phones under their robes.)

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Salesforce Wear Aims To Turbo-Charge Both Enterprise And B2B2C Wearables Markets

JP Gownder

On June 10, Salesforce.com announced Salesforce Wear, a bundle of free tools and reference applications aimed at evangelizing the power of enterprise wearables. The offering supports six different wearable devices, each with its own open-source reference application to help developers design and build wearable apps that connect to the Salesforce1 platform.

Salesforce Wear has the potential to turbo-charge the growing market for enterprise wearables. Enterprises using Salesforce Wear will gain tools and reference applications that immediately apply to six wearable devices: three smart watches (Pebble, Samsung Gear, and Android Wear), plus Google Glass, the Myo armband, and Bionym’s Nymi authentication device.

Some of the reference applications are pure enterprise/B2B workforce enablement applications, like the Google Glass application for oil rigs, which can be generalized to other field service scenarios (and which, conceptually, I have written about before). Salesforce Wear’s app facilitates real-time field actions by providing schematics of the equipment being serviced, offering a view into the full service history of the equipment, and connecting field workers to colleagues for real-time collaboration. All in all, the reference app helps field workers fix problems more quickly and effectively.

Salesforce Wear's Casino Reference Application with the Bionym Nymi Band. Source: Salesforce

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European Online Retail Sales Continue Double-Digit Growth, Spurred By Mobile

Michelle Beeson

This morning when I woke up, one of the first things I did was pick up my iPhone. It’s increasingly part of my morning ritual – whether its checking the weather app for the day’s forecast or using the Starbucks app to pay for my morning coffee on the way to work. And I am not the only one. Forrester forecasts that European online retail sales will increasingly come from sales completed on mobile devices like smartphones and tablets.

 Forrester has now updated its  Western European online retail sales forecast for 2013 to 2018, which plots the growth rate of online sales across 17 European countries and 22 categories. Key takeaways from the forecast include:

  • European online retail sales will continue their double-digit growth through 2018 with a CAGR of 12% from 2013 to 2018, resulting in an online retail market worth €233.9 billion by 2018
  • Southern European markets will grow faster than Northern European markets as they continue to mature. However, the more mature northern European markets are larger online retail markets overall.
  • Online retail sales will be increasingly from mobile devices. Just under half of all online retail sales across the EU-7 will be from online purchases made using a smartphone or tablet by 2018
  • The online grocery category will grow at the fastest rate through 2018 and will surpass consumer electronics to become the second-largest online category in Europe by 2018.
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