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 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."
I get this question a lot from clients. I think it is a hard question to answer and will differ by person. I think I'm going to start a list of what does and what doesn't. Media companies and advertisers like to use SMS to cut through the clutter of Email inboxes and ensure the message is delivered "now."
Apple isn't saying. Quattro posted a blog that told their current customers not to worry - normal business operations would continue. So, I am speculating a bit.
The first questions I've fielded are, "Does Apple want to go head to head with Google?" or "Does Apple want to sell advertising?" At a high level, I believe businesses stick close to their core competencies. Apple sells hardware, software and some content. Google sells advertising. Well, mostly. There are about 4 billion cell phones worldwide and about 1 billion PC's. New Internet connects (and page views and advertising growth) will come from mobile. Mobile is high growth. PC's are a bit commoditized. My cell phone costs more than my last netbook or notebook purchase. Go figure.
Our mobile marketing foreast for the US shows revenue growing from $391M in 2009 to $1.3B in 2014 provided there aren't any game changers. Game changers? Anything that would dramatically impact the amount of inventory or the value of it. The Apple iPhone, for example, dramatically altered the number of page views or inventory in mobile. The Android phones are helping as well and gaining momentum. These numbers are US-only - growth in mobile globally has been dramatic as well and will continue to be. In the US alone (see my colleague Charlie Golvin's blog) smartphone adoption grew from 11% at the end of 2008 to 17% at the end of 2009. This is significant because a lot more browsing and application downloads happen on these phones than more basic ones. A cut of this revenue would add some to Apple's bottom line, but very small at least in the next few years.
I'll stick to my comments and continue to believe that regulation had a stronger impact on the mobile sector than the economic crisis. The recent announcement that the French telecom regulation authority eventually (after years after back and forth discussions and lobbying) granted the 4th 3G license to Free/Iliad (one of the largest ISPs) is a good example of that. The new entrant will not launch before early 2012 but aims at captuting 10% market share by introducing cheaper tariffs (a competitive 3 hour package for less than 20€), bundling Internet access and offering interesting conditions to MVNOs. Evolution of termination rates or roaming tariffs as well as other regulations on spectrum have a much greater impact on operators' bottom line than reduced spending from consumers.
I recently returned from a trip to the UAE (Dubai mostly) and Oman. While there I did a bit of research on my own - just talking to folks about how they use their cell phones and so forth. I also had the chance to interview the head of mobile banking services in EMEA for a large, global bank. More on how global banks are avoiding building new branches by offering mobile banking services in another post.
First, I took the public bus from Dubai to Oman. The average income per family in Oman is far below that in the States - probably less than half. Gas and other utilities are cheap as is education and healthcare. That said, we know that cell phone usage has little to do with income. One of the first things I noticed is how many of the men had at least two cell phones. My initial hypothesis was a work phone and a personal phone. I was soon corrected by my guide who drove me up to Jebel Shams. In a country where men can have more than one wife, apparently more than one cell phone is necessary. My guide's father has five current wives, but has had nine all together. My guide had two cell phones and a lot more SIM cards.
My guide was 37 years of age. He had four children and seemed to have an about average income. He worked in sales when he wasn't serving as a guide. He's probably easily one of the most sophisticated cell phone users I've ever met. His cell phone was his portable media player for both music and video. I was astonished by the number of videos he had sideloaded from YouTube. The ringtones were pretty much driving me crazy after about 15 hours in a car with him road tripping. He only had a couple of different ring tones and his phone rang a lot.
ACCOR, the global hotel chain, just launched an iPhone application.
This is just one of the many examples of travel brands leveraging the mobile momentum. Airline companies have always been at the vanguard of integrating mobile into their strategies, but it looks like many other travel brands from hotel chains, airports, rail companies, car rental companies, and travel-related brands (from Lonely Planet to luxury brands) are now tapping into existing mobile opportunities and building mobile products that meet burgeoning customer demand.
Travel is indeed inherently mobile. Now that the promise of location-enhanced services is beginning to be fulfilled on mobile phones, travelers are starting to use their devices as personal travel assistants. More than 10% of European Internet travelers use their mobile phones to look up flight or train schedules. Frequent business travelers are the ideal target group, as they are more likely to be regular users of the mobile Internet and are more likely to spend while traveling. More than 30% of them are interested in booking train tickets or checking in for a flight via their mobile phones.
Another interesting announcement was made this morning at the LeWeb conference in Paris, where Orange officially announced the launch of its Application Shop (available in beta in the UK and France for several months). This shop will first be available to 1 million customers in these two countries before being roll-out to millions more customers throughout 2010. For now it gives acess to 5,000 applications.
Replicating Apple's success will not be an easy task and operators should not follow this route. They should on the contrary leverage their key assets to offer: