Online Display Ads Will Account For More Than 12% Of Advertising Spend In Western Europe By 2019

Michael O'Grady

 

With 44% of all retail sales in Europe set to be offline sales that are influenced by the Web in 2018, it's not surprising that online display advertising spend in Europe will grow more than three times faster than total advertising spend over the next five years. Forrester's Online Display Advertising Forecast  shows that online display advertising will continue to cannibalize advertising spend via other channels.

Firms are increasingly using video and rich media to engage, entertain, and attract the attention of online users and to enrich their brand storytelling. The growth of mobile device adoption and usage is also changing the way that users consume content:

1.Video: Google recently stated that video had entered a fourth dimension, incorporating sight, sound, motion, and interactivity to win the hearts and minds of video viewers. With more than 100 hours of video uploaded to YouTube every minute, Google has created YouTubeNation to curate video content and grow video audiences, especially among those ages 18 to 30.

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Lenovo Has Started To Benefit From The Mobile Mind Shift

Gene Cao

Lenovo recently announced record results for the third quarter of the 2013/14 fiscal year: the first time that the firm has exceeded US$10 billion in revenue in a single quarter. Lenovo has continued to prioritize maintaining or increasing its share of the PC market — the majority of its business. This strategy has paid off: Lenovo’s PC business (laptops plus desktops) grew by 8% year on year — in stark contrast to its slumping rivals. Lenovo can attribute its success to a strategy that sacrifices profit to keep prices competitive, maintains a direct local sales team, and retains channel partners after acquisitions.

Forrester believes that the mobile mind shift is one of four key market imperatives that enterprises can use to win in the age of customer. Lenovo has gotten a good start on this journey with its effort to enhance its mobile-related capabilities. Although the coming Motorola deal may have a negative impact on Lenovo’s performance over the next three to five quarters, the firm believes that mobile can change its business — and not just its digital business. In the next two to three years, Lenovo’s key strategy will be to provide customers with mobile devices and related infrastructure that will address their mobile mind shift. In particular:

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Nokia World 2013: Impressive Product Launches But Three Key Challenges Ahead

Katyayan Gupta

I attended this year’s Nokia World in Abu Dhabi on October 22 and 23 — perhaps the last one that Nokia will host to showcase its devices (Microsoft wants to acquire Nokia’s device and services business). And it seems that Nokia saved its best for last. The company announced its entry into the loosely-defined phablet category (smart devices with diagonal screen size of more than 5 inches but less than 7 inches) with two devices: a top-of-the-line flagship device, the Lumia 1520, and a more affordable version, the Lumia 1320. It also announced its first tablet, the Lumia 2520. It also launched three new Asha devices: Asha 500, Asha 502, and Asha 503. However, Nokia has neither announced the release date for its new devices nor identified which operators will carry them.

The event tag line was “Innovation Reinvented,” and Nokia did demonstrate many innovations, especially around imaging software. It launched new apps like the Nokia Camera, which combines Smart Camera and Pro Camera apps; Refocus, which adds Lytro-like variable depth of field; Storyteller, which integrates photos and videos onto HERE maps; and Beamer, which shares Lumia’s screen in real time over Wi-Fi or cellular networks.

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29% Of Online Ad Spend In The US Will Be From Mobile By 2018

Michael O'Grady

Mobile ad spending is finally taking off. The Forrester Research Mobile Advertising Forecast, 2013 To 2018 (US) predicts that mobile ad spend (smartphones plus tablets) will represent more than 29% of the total online ad spend in the US by 2018. The forecast looks at mobile device ownership in the US, trends in device usage, and mobile advertising supply-side data to fix the current and future market size for display, search, and social spending.

The drivers behind this take-off of mobile ad spending are:

  • Increased device ownership, particularly of tablets. Smartphone installed base growth in 2012 was more than 35%, while tablet installed base growth exceeded 120%. By 2016, tablet sales will overtake the sales of desktop and laptop PCs.
  • The intensity of online tablet use. Despite tablets representing less than 30% of the mobile device market in the US, they represent more than 40% of total mobile page views. In addition, the majority of tablet users watch video on their tablet, compared with about a third of smartphone users.
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Enterprises In AP Must Build On Three Pillars To Manage BYOT Information Security

Katyayan Gupta

Information workers in organizations across Asia Pacific (AP) are increasingly using personal mobile devices, applications, and public cloud services for work. Forrester defines this as the bring-your-own-technology (BYOT) trend. This behavior is more prevalent among employees above the director-level (C-level executives, presidents, and vice presidents) than those below that level (individual worker, contractor or consultant and manager/supervisor). Data from Forrester’s Forrsight Workforce survey, Q4 2012 corroborates this trend in AP.

We believe that the BYOT trend will strengthen over the next two years in AP, primarily fueled by employees below the director level. Increasing options, quality and affordability of devices, apps, and wireless connectivity, coverage, and capacity will contribute to this expansion. In order to secure corporate data, organizations will need to:

  • Develop Corporate Mobile Policies: Organizations must build cross-functional teams to plan their mobile strategies. This should include representatives from different LOBs like finance, HR, legal and sourcing. Moreover, the policy must clearly define guardrails to provide flexibility to employees but within boundaries and in compliance with local regulations.
  • Identify Technologies To Secure Corporate Data: 29% of business-decision makers in AP report that the rising expectations of younger workers require businesses to push enterprise IT to keep technology current. This is why it is critical to identify both back-end and front-end technologies and suppliers that can optimize mobile device and application management in a secure manner. Focus should be on networking layer security and mobile device management solutions.
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Do info workers prefer iPads or Windows 8 tablets? Let's ask them! And other interesting questions...

Frank Gillett

For our Forrsights Workforce survey, Forrester annually surveys information workers.* I’m leading final preparation of our Forrsights Workforce survey focused on end user hardware and aimed at five major markets – the US, Canada, the UK, France, and Germany. By end user hardware, we primarily mean PC/Macs, tablets, and smartphones, but we may also focus a bit on peripherals. And we hope to mirror some of the questions from the Forrsights IT Hardware survey, which we develop after this one, so that we can compare results from this information worker survey to what IT buyers report in their survey. Analyst Heidi Shey is working on the other half of the survey, which will focus on security issues.

Below are the hypotheses and topics we plan to explore in the survey. Please give them a quick read, then post or email feedback by Friday, April 12 (Tuesday, April 16 at the very latest). If you are a Forrester client and would like to see a survey draft, please email your account rep and me.

These are statements of ideas we are planning to test in the survey questions, which are designed to confirm or disprove the idea. But we probably can’t fit all of these, so please help us prioritize – especially if you are a Forrsights Workforce client!

Info workers:

Multi-device use

  • Have multiple devices used for work, including many that are personally chosen and/or owned; they spend significant money on devices used regularly for work; and they expect to continue doing so.
  • Often blend work and personal tasks on the same device, despite employer policies to the contrary.
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Making Sense Of The Mobile Opportunity In Asia Pacific: A Forrester Webinar Series

Katyayan Gupta

Forrester’s recent research shows that, while Asia Pacific lags developed regions like North America and Europe in terms of smartphone penetration, the growth of smartphones will be highest in APAC between 2012 and 2017. As indicated in our recently published report, Forrester Research World Smartphone Adoption Forecast, 2012 To 2017 (Global), by end of 2013, Forrester estimates that smartphone penetration in North America will be 57%, followed by Europe with 42% and APAC with 21%. But in terms of the compound annual growth rate during the same period, smartphone penetration in APAC will grow by 20%, followed by Europe with 11% and North America with 10%.

The sharp increase in the number of smartphone users will greatly affect both the consumer and enterprise landscapes. Building on Forrester’s deep research on the Asia Pacific mobility opportunity, we will be holding a series of complimentary quarterly webinars to help our clients make sense of this rapidly changing landscape and position for success. Starting in March and covering the consumer and enterprise mobility markets, the webinars will bring together Forrester analysts from around the world to present a global and Asia Pacific perspective.

On March 5, 2013, I will present a mobile trends and summary webinar with my colleagues Thomas Husson and George Lawrie. This session will cover our key findings from this year’s Mobile World Congress in Barcelona, share our view of key 2013 mobile trends, and share best practices for building a successful business case for mobile initiatives. You can register for the webinar here.

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MWC 2013: More Global And More Disruptive Than Ever Before

Thomas Husson

It’s that time of the year: the pilgrimage to the Mobile Mecca, Mobile World Congress (MWC), in Barcelona. This is my 10th pilgrimage in a row and, needless to say, the event has changed tremendously over the past few years – from 3GSM in Cannes to the new venue in Barcelona this year. While CTIA is still very US-centric and CES is still a lot about TVs, MWC is really the only global mobile event with a strong presence of operators and handset manufacturers from all over the world. Every year the show becomes not only more global, but also more open to new categories of players — such as advertisers and developers — willing to make the most of mobile technologies, and more open to connected devices that go far beyond the traditional definition of a mobile phone. Markets are colliding and mobile innovation is at the center of these upheavals. MWC used to be a telecom show focusing mainly on mobile technologies, but the event is now bringing together people from every industry.

In the light of today’s first announcements, here is my take on how to put in perspective the announcements to be made at MWC 2013 in the coming days:

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The Mobile Tsunami Reframes Windows As One Of Three OS Players

Frank Gillett

Windows 8 is a make or break product launch for Microsoft. Windows will endure a slow start as traditional PC users delay upgrades, while those eager for Windows tablets jump in. After a slow start in 2013, Windows 8 will take hold in 2014, keeping Microsoft relevant and the master of the PC market, but simply a contender in tablets, and a distant third in smartphones.

Microsoft has long dominated PC units, with something more than 95% sales. The incremental gains of Apple’s Mac products over the last five years haven’t really changed that reality. But the tremendous growth of smartphones, and then tablets, has. If you combine all the unit sales of personal devices, Microsoft’s share of units has shrunk drastically to about 30% in 2012.

It’s hard to absorb the reality of the shift without a picture, so in the report “Windows: The Next Five Years,” we estimated and forecast the unit sales of PCs, smartphones, and tablets from 2008 to 2016 to create a visual. As you can see below in the chart of unit sales, Microsoft has and will continue to grow unit sales of Windows and Windows Phone. But the mobile market grew very fast in the last five years, while Microsoft had tiny share in smartphones and no share in tablets. 

If you look at the results by share of all personal devices, below, you can see how big a shift happened over the last five years as smartphone units exploded and the iPad took hold. 

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The Digital Wallets Wars Are the Next Phase of the Payments Industry Transformation

Denée Carrington

In my coverage as Forrester’s new payments analyst, I'll serve consumer product strategists who accept or facilitate payments as they create, navigate, and capitalize on digital disruption within payments.

We are in the early stages of unprecedented innovation and transformation of the consumer payments industry, and emergence of a digital wallet marketplace is the next act. The definition of a digital wallet continues to evolve as innovations come to market, and the term is sometimes used synonymously with “mobile payment.” However, there are significant differences. Forrester defines a digital wallet as:

A digital service — accessed via the web or a mobile application — that authorizes payment transactions from one or more payment sources and facilitates other commerce-related features, such as offers, coupons, loyalty rewards, electronic receipts, and product information.

As new wallets are introduced into the market, we will see consumers and merchants accelerate their trial and adoption. Yesterday, Google announced a new cloud-based version of their digital wallet that intends to address many of impediments associated with their first version.  In my new report out today, titled “Why The Digital Wallet Wars Matter," I frame the emerging digital wallet landscape, provide a profile of early adopters and how to capture their attention, and outline which wallets will ultimately win in the marketplace. Here are the key takeaways:

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