Is this your mobile strategy?

Many mobile strategies consist of a stand-alone iPhone application.  The iPhone platform is amazing, but with 35,000 applications it no longer offers the buzz or differentiation strategy many brands think it does. Mobile strategies must run deeper and go broader.

Stand-alone iPhone applications remind me of something sitting in a fishbowl for all to see, but with little connection to anything else. So, I took this photo of my cat peering into the fish bowl.

Climbing Out of Our Technology Silos - Good Acquires Intercasting

Good Technology acquired Intercasting today. In the press release they state the goal of integrated messaging. I think they picked up great talent, too. Shawn has been one of the real thought leaders in mobile and especially around mobile social networking. Handset manufacturers have been trying - and mostly without success so far - to catch up with his vision of what social networking should be on phones.

Separately, I like the vision around messaging. Saw Palm's Pre implementation of integrated messaging yesterday - good stuff. Finally, as consumers we don't need to think about what silo'ed messaging application we want to use. Apple demo'ed similar technology to be released with 3.0 - it doesn't go as far as the Pre, but finally I can stop explaining SMS and MMS to my parents.

I look forward to seeing what they do with the technology.

One Small But Important Step To Making Ad Supported Content Viable

[Posted by Mark Mulligan]

follow me at Mark_Mulligan

UK collection society PRS has announced that it will halve its per track streaming fees.  This is an important step, but the significance will diminish if it proves to be an isolated move.  The bottom line is that the business of making money from record music is shifting from a distribution model to a consumption model.  Because most of that consumption is free, the ARPU potential is much lower than for CD buyers: either it’s nothing (i.e. P-to-P) or it’s not a lot (i.e. ad supported streaming).  So monetizing consumption is about playing a scale game, where the potentially larger monetized audience compensates for lower ARPU.

The principles here are not limited to music.  Indeed as we move deeper into recession the dynamics of all ad-supported on-demand content come under even more intense pressure as more people seek out free content but advertisers become more cautious with their spending.  (See my previous post for more on this, and Forrester clients see my report for a complete analysis). 

Ad-supported business models will be key to successfully monetizing content audiences online, whether they be music, video, games or news.  The recorded music business is, along with news, at the bleeding edge of this dynamic.  The successful transition will require stakeholders right across the various value chains taking the ‘long view’, focusing on nurturing evolving business models.  But at the same balancing the need to ensure that ad supported business don’t flourish at the expense of their premium businesses. 

Scale is crucial to the economic viability of the ad supported sector, both for the services and the content owners.  Moves such as that by the PRS will help scale be achieved throughout the challenging phase of establishing business models during a recession.

Cool-er Reader: What Interead's June 1 launch will mean for the eReader market

[Posted by Sarah Rotman Epps]

I've had a lot of press inquiries about the Cool-er Reader, which is launching June 1 via direct sales on their Web site. Just a few quick thoughts:

• What it is: An E Ink display eReader with a 6" screen, the same size as the Sony Reader products and the Kindle 2. It uses Adobe DRM/ePub formats, not a proprietary format like the Kindle, so you can buy books elsewhere and use them on the Cool-er or buy books at coolerbooks.com and use them on another eReader device like Sony's. It's intentionally stripped-down: It does not have wireless connectivity,  a touchscreen, external speakers, or sidelighting. It retails in multiple colors for US$249. It's put out by Interead, a UK-based startup led by a management team with a background in startups and finance (notably not publishing or retail). The manufacturing is done by Netronix, a Taiwanese company that also makes obscure eReaders like the Star eBook, Bookeen, and Astak Mentor.
• What it could be: Right now, the Cool-er is only available by direct sale from its Web site, but the company is actively pursuing distribution deals to put the reader in electronics stores, supermarket chains, department stores, and bookstores, which, depending on how successful they are at getting these deals done, would give the product much wider exposure. But what's really significant is where they are pursuing these deals: their home country of the UK, the obvious suspects of US, Canada, and EU markets, but also 17 other countries, some of which (like Brazil and India) have no eReader products currently sold there. So if they get the distribution strategy right, they could have an early foothold in markets where no eReader company has gone before, even Sony.
• What it means for the eReader market: The Cool-er Reader will be one of many new eReader products coming on the market in the next few years. By itself, it won't make a huge impact on the market, especially considering its lack of wireless, its currently limited distribution, and its relatively high price point. But collectively, this product and the others coming on the market will do three things to the eReader ecosystem:

1. Expand consumer choice. Some consumers will be willing to accept fewer features or alternative models for a lower price. The many competitors to the iPod never made a dent in Apple's sales, but their existence is a boon to consumers who want more options.
   
2. Put pricing pressure on market leaders. The Kindle DX retails for a whopping $489; other models by Amazon and Sony range from $299 to $359. While other premium products will launch in the price range of the DX, there will also be a race to get to a $199 price point with simpler models, which we expect to happen by Q3 2010. There are also companies working on a $99 eReader aimed at BRIC markets; we expect models on the market at that price point by 2012.
   
3. Encourage innovation. With an increasingly crowded eReader marketplace, no one--market leaders or new entrants--can sit on their laurels. As more companies enter the market, we expect innovation for product and channel strategy to flourish. An eReader for your bathroom? eBook integration with in-flight entertainment systems like Virgin America's? 

My latest report on the future of the eReader market is due out on Tuesday. You can sign up for an alert to be emailed when it's published here.

The Mobile Internet Creates New Opportunities For Direct-To-Consumer Strategies

[Posted by Thomas Husson]

The success of Apple's iPhone has acted as a marketing catalyst and showcased the potential of the mobile platform.

Leading brands such as l'Oréal, Audi, Kraft, Bank of America and many others have embraced the trend and launched iPhone applications to engage with a high-profile audience, appear innovative or benefit from richer mobile media capabilities.

However, too many brands are rushing into the mobile Internet by simply offering the hot new thing: an iPhone app. Then they start realizing that plenty of new stores are opening up. Today, the OVI store by Nokia just launched. It is available globally to an estimated 50 million Nokia device owners across more than 50 Nokia devices (these stats come from Nokia's press release issued this morning but include downloadable items not only embedded onces and this makes a difference; see my initial take here). ATT (yes, the US operator offering the iPhone) announced it will launch OVI store later in the year.

Porting applications to different OS and devices has a cost, so brands need to bet on the horses that are relevant to their own audiences. Then brands start wondering about widgets and optimized mobile websites. So what? What should they do next?

Open mobile Internet browsing and the distribution of widgets and applications via new retail stores represent two sides of the same coin: operator portals are being bypassed. They are currently reinventing their distribution models and launching their own apps and can even partner with some device/OS manufacturers.

Apple is only the tip of the iceberg, as drivers are now in place for mass-market uptake of the mobile Internet in Europe. The expansion of Internet brands, smarter phones, and high-speed networks are enabling compelling user experiences that, coupled with all-you-can-eat data plans, are unleashing usage.

The mobile Internet is gaining momentum, with 24% of European online users regularly accessing the Internet from their mobile phones. A year ago, the percentage was only at 20%.

Non-telecom players, such as media companies, retailers, FMCG, CPG or luxury brands as well as financial institutions are beginning to realize the potential of the mobile Internet market but do not know always where to start. They need to define or refine their mobile strategy to engage directly with consumers via the mobile Internet. They must be aware of the mobile market's unique character as they integrate their mobile Internet services into a multichannel and multimedia strategy — and revamp their partnerships with telecom stakeholders.

Forrester just published a new report on this topic where you will find lots of data on the profile of European mobile Internet users (did you know that 52% of mobile Internet daily users are over 35 years old?), their current usage of mobile services and their interest in using new mobile services.

The report is available here.

For Forrester clients willing to define a mobile strategy, I truly invite you to have a detailed look at 2 must-read reports from my US colleagues Julie Ask and Charles Golvin:

- The POST Method: A Systematic Approach To Mobile Strategy

- Mobile Technographics®: Understanding Mobile Phone Usage Is The Foundation Of A Mobile Strategy

POST is the acronym for People Objective Strategy and Technology. The idea is that the first step is to start analyzing the mobile profile of your own customers (not that of the average market). Then you can start defining your objectives by deciding on the goals you want to achive. The strategic part consists of determining your approach to meet these objectives. Finally and only finally, you choose the technologies that will enable you to implement your strategy.

This may seem obvious but few companies have adopted a real framework to build a consistent strategy to anticipate the emergence of mass-market mobile services. Mobile Internet is no exception to the rule.

If you want to know more about what it means to a European audience, feel free to contact me at thusson AT forrester DOT com

Utilizing NFC - The Implementation Matters As Much If Not More Than The Technology

First, I do not attempt to "break" each new implementation of a technology. It simply happens because the implementation has not been thought through. Companies rolling out new services on mobile phones need to think through the user experience. With payments this is even more important. If customers don't feel comfortable with a process they've tried, they will be hesitant to trust and return.

This experience described below is not mobile, but it involves NFC, and one can easily imagine a scenario involving cell phones which could go horribly wrong.

I drove myself to SFO (San Francisco airport) last week for a one-day business trip. I pulled up to the gate at the entrance of the parking garage to collect my ticket. Suddenly, my Speedpass "beeps." I think, "What?"

I roll down my window and there stands a parking garage attendant. She confirms that I want to use this prepaid SpeedPass to pay for my parking. (Please keep in mind that the cost of parking for one day will exceed the average balance that I carry on the card that I use to cross bridges in the Bay Area about once a month.) I tell her that I do NOT want to use SpeedPass to pay - I want to use my American Express card. (Ok, SpeedPass tied to my Amex card, but I don't want to use it this way.) She asks why as she undoes the recording of the time/date on my SpeedPass. I tell her that I am traveling for business and need a receipt. Duh?  She scowls and punches a bunch of buttons on the machine so that it spits out a ticket for me.

About 24 hours later, I am leaving the garage. I pull up to the exit and once again my SpeedPass beeps. Sigh.  I pull up to the unattended payment machine and try to insert my ticket. It doesn't want to accept my ticket because the SpeedPass has already been triggered. Sigh. I press the "Attendant button" and a man starts barking at me over the intercom. He claims to reset the machine so that I can insert my ticket. I insert the ticket, and the balance appears.

Now, I try to insert my Amex card. Machine doesn't want it because it still thinks I've paid. I finally get it in the machine, but the machine immediately spits it back out to me with such force that it flies out of the machine and under my car. Now, you have to imagine that I have pulled up close enough to the machine so that I can insert my parking ticket/credit card into the machine without leaning all the way out the window. This now means that I am too close to the machine to open my car door, get out, and retrieve my credit card from underneath my car.

Seriously, who thinks this stuff up? What was meant to be a convenient offering has now become completely INCONVENIENT. This is supposed to speed payment, but now there is a line of cars behind me. Besides, anyone who parks onsite at SFO knows there is seldom a line or wait of more than a minute or two. Have they checked the statistics on business vs. leisure travel? Business travelers need receipts - they need to know how much something costs. My company isn't reimbursing me for lump-sum amounts on a prepaid storage card of any kind.

Mobile Boarding Passes - Second Attempt in May 2009

First, there are several people using the mobile boarding pass - all carrying around thick, smartphone-esque devices with large color screens. Walked up to the TSA agent checking ID's. She had a machine. I just waved my cell phone in front of the scanner, and my information popped up on a single, monochrome text line. She cross-referenced with my ID, and I was on my way. Easy.

Mobile Boarding Passes - My First Attempt in December 2008

My first attempt at using a mobile boarding pass was back in December 2008 with Continental Airlines. I was flying from Cleveland, OH to San Francisco, CA. I used a PC to log in and opted to use a mobile boarding pass rather than print a boarding pass. I used a URL sent to my Gmail account to open up a web page with the boarding pass on my iPhone.

The boarding pass was easy to get on the cell phone, but hard to use in the airport because the right technology, processes and ground crew education were not in place. A mobile strategy can't stop with the design of the mobile component only - there must also be consideration and design of the processes and education for the folks interacting with the cell phone technology in the physical location.

Here is an account of what happened at the airport:

I walked up to the counter to check first if the mobile boarding pass would work. I didn't have confidence. The agent looked at me and in the most polite, kind manner said, "Honey, you need a printed boarding pass to get on that plane." I smiled as she printed out a boarding pass for me, and I thanked her for her help.

I proceeded to the security line. My phone is timed to turn off every 60 seconds. Each time I it turns off, I need to enter a security code for it to turn on. So, as I moved through the security line juggling my bags, laptop, etc., I kept tapping my phone to keep the screen lit.

Finally, I reach the TSA agent. I extend my phone with its brightly lit screen with a bar code on it to her. She doesn't want to hold the phone. Instead, she asks me to enlarge the bar code and information so that she can see it from a distance. I do so. She nods and hands me a piece of laminated paper. One is supposed to hold her boarding pass while walking through the metal detectors, but a cell phone must go through the scanner. Dilemma. Hence, I am holding a piece of laminated paper. I carry the paper through security and hand it to a TSA agent on the other end.

I repeat much of this process while I am boarding the plane - tapping my phone to ensure that the screen with the boarding pass information stays lit. I have the added stress of hoping the 3G connection persists throughout the airport so that I can show the web page without much difficulty.

Landline Disconnects - It's Not Just Young Adults

We recently got our data back from our annual Benchmark survey of more than 60,000 adults in the US. The percentage who are disconnecting their home phone lines has grown tremendously. My hypothesis on most of these disconnects is that they are college students, kids just out of college sharing apartments, etc.

When my mother told me that she and her husband just disconnected, I was shocked. They have simply given up on the local fixed line company. They split their time between Ohio and Florida. The BSP's are different in each location. The BSP's (in Florida who "get this") allowing them to turn services on for six months of the year and then off again still have their business. Those which are inflexible don't. They have no home phone.

Nokia ' s Ovi Store - Good News for Consumers

Nokia announced this morning that their new Ovi store is "open for business" and that AT&T here in the States will join the growing list of carriers supporting Ovi. This is good news for consumers. Apple has done a wonderful job of educating American consumers about all the things a high end cell phone can do. They've shown us games, fun stuff, FedEx tracking, news, sports, - the list is long. They've grown our appetite for high end devices that can do just about anything.

The N97 will come into the market this summer on the heals of the Palm Pre and maybe a new iPhone (if the rumors are true). No word yet on the pricing though we haven't seen US carriers subsidize the Nseries devices from Nokia to the extent that they have for Apple, Blackberry, Samsung, HTC, etc.

The Nokia phones have high quality cameras and mapping solutions that are excellent. There is a lot of cool content and services available through Ovi. Consumers will appreciate what they offer if they get the chance to get ahold of these devices at prices the market will support.

Here's the release:

Ovi Store Opens for Business

 

AT&T joins growing list of operators supporting new content service

 

May 26

 

Espoo, Finland - Today, Ovi Store by Nokia is available globally to an estimated 50 million Nokia device owners across more than 50 Nokia devices including the forthcoming flagship device, the Nokia N97. Customers can visit store.ovi.com through their Nokia device browser to immediately begin downloading, personalizing and making their devices smarter and more fun with applications, games, videos, podcasts, productivity tools, web and location-based services and much more.

 

"Ovi Store is open for business and we've stocked the shelves with both local and global content for a broad range of Nokia devices," said Tero Ojanperä, Executive Vice President, Nokia Services. "Ovi Store makes shopping for content and applications easy and fun for feature phone and smartphone owners alike."

 

In available countries, customers can update their devices with the Ovi Store mobile application by selecting the Ovi Store icon in the Download! folder on their device. The mobile client is available in English, German, Italian, Russian, and Spanish and supports operator billing in Australia, Germany, Ireland, Italy, Russia, Singapore and the United Kingdom. Globally, credit card billing is available through the mobile application and the mobile website. Additional countries, languages, devices and features will be added throughout the year. AT&T plans to make Ovi Store available to its customers in the United States later this year. 

 

"AT&T looks forward to introducing Ovi Store for our customers later this year," said David Christopher, chief marketing officer, AT&T Mobility and Consumer Markets.  "AT&T has a reputation for providing the most customer choice of content and applications and offering Ovi Store is in line with that strategy."

 

Ovi Store is an evolving media service that consolidates Nokia's existing content services into a one-stop-shop for free and paid content. Thousands of the content industry's biggest names along with independent application developers are distributing their media, applications and games through Ovi Store. Content providers and application developers can continue to sign up to distribute their content through Ovi Store by visiting publish.ovi.com.