I had the opportunity to talk to nearly 50 companies working on mHealth and mWellness services and technologies in 2013. With the perspective of 13 years as a mobile analyst behind me and a career in telecom that started in the late 80's, I say with confidence that this category within mobile is more exciting and has the potential to be more game-changing, than anything since the introduction of the iPhone. Most of you reading this blog are not in healthcare - that's why the report offers a WIM (what it means) for industries outside of health and wellness.
I started this research journey with a simple mission: "what mobile engagement tactics can and do change consumer behavior?" Or, in other words, what gets people up off the couch? Is it competition, community, feedback, encouragement or coaching, a poke, or what?
How did MyFitnessPal facilitate more than 100M pounds of weight loss?
How did RunKeeper get their users to move 783 million miles?
How did Strava motivate their users to move 1.4 billion kilometers?
Facebook will launch its new Paper product on February 3. The questions I have been asked are, "Why?" and "Should we be thinking about multiple apps rather than one large app?" Both good questions.
The first question -- I can only take a shot. Facebook, like many other media properties, depends heavily on advertising for revenue. To get advertising, you need eyeballs. More and more minutes per day are spent on mobile phones. Consumption of news, information, and media generally tops the list behind communication. Consumers also expect highly curated experiences on small screens that can be more challenging to navigate. At first glance, the Paper user interface and experience looks to be quite elegant.
It always makes me smile to see a product or app launched that takes a mobile first-approach. From the short video that was released, you can instantly tell that they didn't start with a web experience and think, "How can we strip this down and put it on a small screen?" They appeared to have done ethonographic research -- to watch and observe how people engage with their phones and consume information through the course of the day (e.g., the unfolding of the newspaper). This is one of the best practices in mobile design -- understand the needs of consumers on the go. Companies must ask, "What are those moments during the day when someone reaches for the phone to access information or a service?" Forrester calls them mobile moments. Companies must be ready to serve customers in those moments.
My colleague Thomas Husson (Marketing Leadership) and I teamed up again to identify the most impactful and new mobile trends for 2014. (See the full report here.)
You might ask, "how does one decide what are going to be the big trends?" Good question. For me, there are several points of input. In 2013, I had the opportunity to interview close to 200 companies in the course of doing research for Forrester's next book, The Mobile Mind Shift, as well as for my own research. I spoke to some of the best and brightest enterprises (e.g., retailers, hotels), technology companies (e.g., sensors), and vendors in the United States, Europe, China, Australia, India, Japan, Korea, Canada, and beyond. I had the opportunity to do field research in China and Korea - to walk the streets, visit stores, observe consumers and interview executives about one of the most exciting mobile markets in the world. More than 40 of the interviews were in the exciting space of mobile health and wellness. Thomas and I surveyed several hundred mobile executives. I also collaborated with Thomas who has incredible breadth and depth of knowledge of Europe.
During 2014, we’ll pass a key milestone: an installed base of 2 billion smartphones globally. Mobile is becoming not only the new digital hub but also the bridge to the physical world. That’s why mobile will affect more than just your digital operations — it will transform your entire business. 2014 will be the year that companies increase investments to transform their businesses, with mobile as a focal point.
Let’s highlight a few of the mobile trends that we predict for 2014:
Competitive advantage in mobile will shift from experience design to big data and analytics. Mobile is transformative but only if you can engage your consumers in their exact moment of need with the right services, content, or information. Not only do you need to understand their context in that moment but you also need insights gleaned from data over time to know how to best serve them in that moment.
Mobile contextual data will offer deep customer insights — beyond mobile. Mobile is a key driver of big data. Most advanced marketers will get that mobile’s value as a marketing tool will be measured by more than just the effectiveness of marketing to people on mobile websites or apps. They will start evaluating mobile’s impact on other channels.
Every year for the past few years, I've revisited our predictions for the previous year's mobile trends. It's now time to look back at 2013 and, specifically, at the 2013 mobile trends post I put together a year ago with my colleague Julie Ask.
So many things happened in 2013, making it difficult to sum up the year overall. BlackBerry’s struggle and Microsoft’s acquisition of Nokia devices offered apt symbols for the end of the old mobile era. However, the mobile war is far from over. Following marketers’ integration of mobile into the mix, many vendors started to acquire mobile expertise, technology, and resources — and those acquisitions are far from over. Players like Facebook that acknowledged their past mistakes and turned into mobile-first companies managed to generate significant revenues; mobile now represents more than 40% of Facebook's ad revenues.
Let’s take a look at some of the key trends we highlighted last year. We expected that:
Forrester attended Microsoft’s second annual Asia Pacific Analyst Summit in Singapore last week for an update on the company’s progress in transforming into a devices and services company. The event highlighted Microsoft’s strengths and exposed some obvious challenges, which I’ve shared below. Forrester clients can access further event-related analysis and implications here.
Day One: Impressive Capabilities And A Strong Understanding Of Customer Needs
Day one was well designed and delivered, with a clear focus on customer and partner case studies and go-to-market strategies based on three core imperatives:
Transforming IT. Focusing primarily on Cloud OS, Windows Azure, and Office 365, this imperative highlights Microsoft-enabled capabilities and resources to help IT organizations transform both internal data centers and IT delivery.
Engaging customers and employees. This imperative essentially combines mobility and social to help organizations thrive in the age of the customer by delivering improved customer service and customer and user experiences.
Accelerating customer insight and business process improvement. This imperative targets the changing needs and expectations for data and information access and real-time decision making via a combination of traditional analytics and big data.
If you believe the idiom "a bird in the hand is worth two in the bush," then Snapchat believes it will be worth more than $6B to a future buyer — or the public through an IPO. The service is appealing not just for the UI but also for the limited time the content is stored. That appeals to me as a middle-aged adult, let alone to a teen with poor judgement who may be applying for college or a job in a few years. We've probably all felt awkward at some point about something someone posted.
If you believe the movie "The Social Network," Mark Zuckerberg was also advised to turn down early offers. Remember the shockwaves that rippled down the West coast when Microsoft invested $240M in the fall of 2007 for what is now a 1.6% stake or $1.36B valuation? (See Source)
I am not our social media expert. I am also not our primary mobile marketing expert, though I've covered it extensively at times. This POV is from a mobile analyst who has spent a lot of time looking at social networks on mobile devices.
Here's what we do know:
- There are about 7 billion people on earth.
- 6 billion of them have mobile phones.
- 1 billion (and growing) of them have smartphones, with nearly 400m of those in China.
- People communicate, consume media, and transact on mobile phones — in that order.
- Mobile phones sit at the core of our social graph. We create photos and we share good times with friends. I don't often post while I am sitting at home working. I post when I am out and about doing fun things that I want to share.
What drives a $6B+ valuation beyond pure speculation, optimism, and wishful thinking?
Push notifications make the most of mobile marketing’s unique attributes: intimacy, immediacy, and context. When consumers opt in to receive push notifications, it means they trust you to the point of giving you permission to contact them on their most personal devices. If your messages are not relevant, you will lose your best customers.
Our research shows that consumers who receive push notifications are also the heaviest app users. However, to avoid being spammed with irrelevant messages, consumers increasingly want to be in control, setting preferences on the types of messages they want to receive and when they want to receive them.
While push notifications enable better engagement, the challenge for marketers will be to think beyond just push notifications for smartphone apps. Push notifications already extend messaging to other connected devices. How will push notifications complement email, SMS, and in-app messaging? How will performance from various direct marketing channels evolve?
To differentiate, marketers will have to integrate push into cross-channel and CRM platforms and integrate mobile as a variable of their customer base. Marketing vendors will have to add new messaging platforms, like push notifications, into their core offerings, pushing for another wave of consolidation highlighted by the recent acquisition of Xtify by IBM.
Mobile phones have changed not only the way we live and communicate. They have also changed the way we think. Customers have experienced a mind shift: They expect any desired information or service to be available, on any appropriate device, in context, at their moment of need. Technologies packed in mobile devices enable people not only to instantly consume but also to create content and maintain greater control in their everyday lives.
Customers' behaviors are becoming as sophisticated as their devices. Mobile has become the new digital hub. According to our Technographics data, 47% of European online adults who own a mobile phone use mobile apps at least weekly. Forty-five percent browse the Internet at least weekly, and 38% search for information on mobile search engines, too. In the US, 50% of online adults who use a mobile phone use their devices to check sports, weather, or news at least weekly. Forty-five percent access social networks on their phones at least weekly, and 22% research physical products for purchase! This implies that you must have a mobile component for your digital strategy. But it goes beyond this, as mobile is bridging the offline and online worlds.
Yes, mobile is a hot topic. Reading the press or listening to conferences, you may be under the impression that marketers have embraced the mobile mind shift and are really integrating mobile into the marketing mix. A significant majority of marketers told us that their senior leadership team understands the importance of mobile.
Facebook now has 819 million mobile monthly active users. That’s a huge audience. That’s actually 71% of total active users.
Yesterday, Facebook reported they generated 41% of total ad revenues via mobile. That’s pretty impressive considering they generated nearly 0% end 2011 when they had already 432 million mobile monthly users. Since the launch of mobile ads in 2012, Facebook steadily increased the share of mobile in total ad revenues: it was 23% end 2012 and 30% in Q1 2013.
There is still a monetization gap in comparison to the share of their mobile audience, but that’s definitely impressive for a new product.
There are a couple of reasons for this sharp increase. Time spent on Facebook is meaningful. Facebook’s mobile ads integrate well in the natural flow of Facebook’s news feeds. They are quite visible and are increasingly successful at driving mobile app installs. According to our European Technographics Consumer Technology Online Survey, Q4 2012, 16% of online adult smartphone owners (ages 16-plus) who use apps report that they first learned about an app via social networking websites such as Facebook. No wonder why the likes of Fiksu and other app boosters spent a lot of money on Facebook mobile ads. Cost per click increased despite a lot more clicks and ads shown.
For this approach to be successful in the longer term, there are a couple of key questions to be answered: