Apple announced iAd today as part of their OS 4 program today. I speculated in this post on why they purchased Quattro Wireless a few months ago, but now we have more details. This post is on iAd only - my colleague Charles Golvin has a more complete analysis in his post.
First, looks like Apple will leverage Quattro's business model and use their sales force to sell ads. This should work early on for large buys.
They are continuing to be very supportive of their developer community with 60% of the ad revenue going to the developers. Not a lot of details now, but this could be generous. Part of the revenue needs to go to the sales team as well. There will be less leftover for Apple. Models such as Admob's have more of a self-serve model that have the potential to be more cost-effective especially with smaller buys. The types of companies that will have the budgets to develop interactive ads that take full advantage of the platform - accelerometer and location plus rich media - will have the budget to spend on media as well - not just on the creative.
Beyond developers, Apple is continuing their focus on the consumer experience. They are looking to protect the quality of the user experience by controlling the ad experience. Steve has raised the bar on quality of mobile ads by keeping consumers within their existing application or experience. He anticipates that the ads will be engaging enough to be considered entertainment.
My colleague Julie Ask just published a piece on the reality of mobile coupons in response to questions like “do consumers use mobile coupons?” “should we be developing a mobile coupon offering?” and “what technologies should I adopt to support mobile couponing efforts?” – questions that she and I get asked with some frequency.
I was involved in some of the initial structuring of this report and then also involved in the editing phase. And I would love to recommend it to interactive marketers. Here are the most important takeaways:
Consumers like the promise of mobile coupons, but there is not yet mass adoption. Mobile coupons promise to be a convenient way to aggregate customized discounts all in a single place (your mobile phone) that is much easier for storage than say an envelope of clipped paper coupons.
Mobile coupons appeal to advertisers too, but technology hurdles prevent mass utilization. Advertisers love the idea of being able to offer targeted promotions that are cheaper to deliver and redeem than traditional coupons. But the reality is that scaling redemption technologies and processes at check out is pricey for the limited coupon-using audience today.
Advertisers should start small mobile coupon trials now. Mobile coupons don’t need to be your top marketing priority for 2010 (that honor goes to paid search, display ad, advanced email and social media) but we do recommend now as a good time to start a trial. Vendors like cellfire can outsource the management and distribution of mobile coupons and offer flexible terms in an effort to sign up new advertisers.
This is probably one of the top 10 inquiries I get from clients. Should I have a mobile coupon offering? If so, what form of mobile technology should I use? Our new report, "Mobile Coupons: Gold Rush or Fool's Gold?" addresses this question in more detail. This question was especially important in 2009 with the poor economy as consumers sought savings and deals.
Do consumers use mobile coupons today? A few do. Our surveys show that a few percent have at least trialed mobile coupons. There have been some usability issues - how to opt in to programs, download a coupon application, breadth of offers available - as well as demand. Heavy users of mobile coupons are not necessarily heavy users of mobile data services. My grandmother cuts more coupons than anyone else I know. She has a prepaid 100 minute per month voice plan. Will she ever use mobile coupons? Probably not. She turns 90 this summer. A lot could change in 10 years, but until her arthritis is so bad that she can use scissors, I think she'll still be clipping coupons from the newspaper. I see more opportunities in luring young mobile-savvy cell phone users into opting in for programs.
That said, I'm optimistic. The main reason ... every grocery store and many retailers that I know are using mobile coupons. Target launched a few weeks ago. Target takes providing an amazing guest experience very seriously. When you ask, "are mobile coupons ready for primetime?" Target adopting and rolling them out is a clear "yes" for a leading US brand. Safeway. Best Buy. Krogers. JC Penney. These are just a handful of the companies rolling out mobile coupons. With their marketing power and ability to drive awareness and motivate adoption, I expect we'll see a significant jump in adoption and usage this year.
The mobile industry is in full swing. Its center of gravity is shifting from hardware to software, from voice to data and services, and from traditional telecom stakeholders to new entrants.
Google’s “mobile first” approach and the shadow that Apple cast over the show are forcing mobile operators in particular to redefine their position in the value chain. The traditional focus on infrastructure (LTE..) and this year’s debate on operators’ congested networks need to be put in the context of nontelecom players’ willingness to monetize mobile. Mobile World Congress is a unique opportunity to witness how mobile is reinventing itself and to see how it will become even more disruptive in consumers' daily lives in the future.
Target is now allowing gift cards to be loaded onto an online account that can be accessed from your cell phone. You can actually pay for stuff with your cell phone. Yay! See Target's press release.
I know they aren't the first. Many versions I've seen before, however, have been small scale pilots or in foreign countries. Many scenarios I've seen also are "closed" pilots among the 3-4 parties in an ecosystem that it took to string a trial together. Target has 1740 stores ... there's a bit of scale in this solution.
So, how does it work?
First, you buy a gift card. I bought the one with the cute Target dog.
Then you pull the sticker off of the back so you can see the codes. I purchased a $20 gift card.
Instructions for using mobile gift cards as well as promotions are on Target.com. Using their available media - Web site - to promote the new offer? Well done.
Interestingly though, this site ONLY had instructions for the mobile gift cards. I couldn't find a link on this site to regisiter my mobile gift card. This confusion for me is probably the only thing I could find to "ding" them on, so to speak. I'd expect that one of their next rounds of Web site updates would add this link.
Marketers - pay attention. This is an example that seems great in theory, but the "devil is in the details" of the implementation so to speak. This is among the top inquiries I hear from clients, "what do you think about 2D barcodes or QR codes as a means of connecting with customers?" I took this inquiry from a CPG client just a couple of weeks ago. I laid out the challenges. Their response was, "well, we're doing it anyway." Piloting is good - just go into it with your eyes wide open.
I've just returned from Apple's launch of the new iPad. Am exhausted from the anticipation and the intensity of the event. For a full analysis of the iPad, please check out the blog posts from my colleagues James McQuivey and Charles Golvin. See yesterday's blog. They were really dead on with their comments. I'm sure they'll post more today.
I was there so I got to touch the big iPod Touch-esque iPad. Curved edges. Not too heavy. Great video resolution - if there is HD video. (Watching full screen low resolution YouTube clips posted by European soccer fans - average). Baseball isn't my thing, but the MLB app with integrated video - looked sweet.
- Browsing - good.
- Photos - I like taking photos and I like slide shows so this was one of my favorite features - the iLife-esque photo slidesshows with music. For me as a photographer, this would be more about showing photos than creating the slide shows on the device - fun way to share with friends. Apple - if you're listening - next on my wishlist is iLife photo editing on one of these devices. I want to travel with this device, transfer photos from my fat Nikon to this, delete, edit and then sync back to my computer at home so I can then sync to my Apple TV ... could you see a mini-iLife for $9.99 for this device please?
I've been fielding quite a few requests about why donations via text messaging have done so well and why donations to Haiti via SMS have set new all time high's. I am in Cambridge, MA this week. I was walking around Central Square yesterday evening, and I noticed how many promotions there are for donating via SMS. I was surprised.
Having reviewed the 2009 trends, it’s now time to make some predictions for 2010!
I’m not going to say that 2010 will be “the year of mobile” or “the year of mobile marketing”. I think 2010 is more likley to be the "year that every firms needs a mobile strategy". Mobile is simply too disruptive to merely have a year. After all, who remembers the year of the TV or the year of the Internet? Instead, I think 2010 will be a key year in mobile's transition to center stage in the digital marketplace.
A new mobile decade is opening up, and now is the time to start your journey. In the past 10 years, mobile phones have changed the way we communicate and live. In the next 10 years, they will change the way we do business.
Rudy De Waelem a famous mobile blogger and event organizer, decided this year to ask many contributors to publish their thoughts for the coming mobile decade. I didn't contribute to it and it would be a bit late to join the bandwagon now that this slideshare presentation is the most read one, but I invite you to have a look at the below. Very inspiring! and congrats Rudy for your idea.
Few consumer-facing product and service companies AREN'T working on their mobile strategy today. Everyone is thinking about how best to engage with their customers on their cell phones. And, can you even do NEW customer acquisition with teenagers or young adults without a mobile option?
Many mobile initiatives start without a plan or a strategy. They start with:
"Our CMO was observing his teenage daughter use her cell phone ...."
"Our competitors have an iPhone application. My boss told me to get one for us."