Mobile Consumers Create Multichannel Value

Julie Ask

Multichannel customers have traditionally been more profitable for consumer product, service, and media companies. Consumers who shop both online and in-store spend more.

Multichannel media consumers have higher levels of engagement than those present in only one channel. The more one watches TV, listens to the radio, spends time online, etc., the more advertising they consume.

Mobile adds a new dimension, a new medium, and a new tool to allow brands to engage with their consumers. Mobile is an even more contextual medium than TV or online. Mobile phones are personal. Mobile phones tie into an environment. Certainly, location is one aspect, but “where” is more than location. “Where” can mean the living room at home, in the car, or in a store.

Forrester recently completed a case study on Yahoo! Fantasy Football. Fantasy football presents a unique opportunity, given that the majority of NFL games are played on Sunday. Not everyone can plunk down on the couch in front of the TV on Sunday to track their players. Moreover, most people don’t have the ability to follow multiple games at one time – at least in the level of detail required to follow all of their players on all of their teams. Historically (pre-Internet), fantasy football players had to wait until Monday or even Tuesday to get player stats and begin to compile their scores. The Internet offered players the ability to do this in real time. Mobile offers players the opportunity to follow their teams, players, and scores in real time anywhere. Mobile offers immediacy. Mobile frees participants to go out in the yard to play with the kids or run errands without losing track of their games, scores, and players.

Read more

How Do I Get My Customers To Use My Mobile Services?

Julie Ask

You have to have a plan. It has to be part of your budget for mobile. There are hundreds of thousands of applications let alone SMS programs and mobile Web sites. You'll have to be active in creating awareness and driving adoption and usage.

First, you build great mobile services that are appropriate to your audience, objectives and offerings (what services you offer).

Then ... you promote them! You promote them at your physical locations. You promote them online. You promote them at the ATM if you are a bank like Wells Fargo or Bank of America.

I was walking down University Avenue in Palo Alto on Monday evening and I saw these signs outside of Walgreen's. Ok, they are handmade ... well, look to be locally created and printed as opposed to being created and endorsed by corporate. It's a sign though that the local managers and pharmacists are engaged - they support the program and are looking to help drive registrations. I noticed the sign while walking down the street. Getting buy-in from local employees that can help educate consumers and drive registrations may be one of the most effective means I suspect of driving adoption.

And the close-up ....

iPad Mobile Marketing Applications ... 2008 Revisited, But Much Cooler

Julie Ask

When the Apple iPhone App Store launched a couple of years ago, we saw a flurry of marketing applications released. Some were exceptional. Many were average. iPhone apps were "hot," and consumer brands rushed to build them. They were somewhat expensive with most of the return based on press mentions and buzz. Brands felt that the perception of tech-savviness generated by the presence of an iPhone application would enhance their brand. I think they were right, but soon consumers began to expect iPhone applications. Initally, the iPhone didn't offer much reach. The iPod touch helped build the numbers. Apple's most recent announcement put total sales at over 80 million. Pretty good.

Two years ago, consumers mostly used their cell phones for communication. They also listened to some music and got a bit of weather, traffic and news. Now ... they do just about anything. They shop. They research products. They blog. They look up recipes. Are they doing so in large numbers? No, not yet. Consumers are a lot more likely to do more complex tasks on smartphones like the iPhone. The stakes are much higher for marketers - the potential return is higher with the ability to generate real leads and sales.

Here we are in 2010. Apple recently announced sales of 1 million iPads. Forrester believes that number will at least triple by year end. Apple has launched the iAd platform and promised consumers an engaging media experience that will include advertising, but not be disrupted by it. iAd includes the iPhone platform. iPads add another dimension or canvas that will unleash advertiser/agency creativity. We are now seeing our first marketing (first perhaps) and commerce (secondary?) applications. They are engaging. They offer rich media. They are interactive. They offer opportunities to link to videos, music, social networking sites, and shopping.

Read more

Why Consumer Brands Need Mobile Strategies - Especially In Asia

Julie Ask

I just returned home from a trip to Bangkok and Bhutan. Civil unrest in Bangkok kept me from wandering as much as I would have liked. I had a lot of opportunity in Bhutan, however, to wander about and talk to people. As a bit of a background, Bhutan is a land-locked country bordered mostly by India to the south and China to the north. Much of the northern portion where we traveled is covered by mountains, so wireless is the primary infrastructure for communications. The average annual income is about $1,300, so they are not a wealthy nation. They've only been allowed access to TV and the Internet for about 10 years.

A consumer brand might argue that in a country where the annual income is only $1,300 and little infrastructure exists for the import of goods, there isn't much point in marketing -- let alone a digital marketing strategy that includes mobile. Countries like these are opening up, however, and their wealth is growing. Personal care products and Coca-Cola was on the shelves in most of the small shops we passed. In a country where cell phones certainly outnumber PCs and cellular connections (even if prepaid) must outnumber fixed, mobile has to be part of the mix.

Teenagers had cell phones. One of my guides had a Nokia N73 and the other had a Nokia Xpress Music. These aren't dumb or cheap text-only phones. They have high-resolution screens and are capable of music, videos and Internet. (My guide was checking and posting to Facebook DAILY.) Monks had cell phones. Women selling vegetables in open-air markets had cell phones.

Here are a few pictures from my trip:

Senior monk with his cell phone

Teenagers checking out the latest message

Read more

KIN Studio - A Great Means Of Sharing Events

Julie Ask

I was the photographer at a wedding this weekend. We used the KIN phone to take photos throughout the course of the day - hair styling, make-up, and the event. We also exchanged a lot of messages: "We're running late! Someone else has to go pick up the cake," etc. Here's a quick snapshot of the Web page below.

We saw Nokia do this with with their Lifeblog a number of years ago. The KIN Studio has similarities. I would have to say I was sitting on the fence a bit re the dictated cloud services approach to the KIN photos. Over the weekend, I was happy that I didn't have to say "ok, now sync" or upload them one at a time - I liked that it just happened. Would have been fun for everyone at the event to have one of these phones.

 

Microsoft's KIN -- Adding Fun To My Microsoft Phone

Julie Ask

I've just had the chance in the past few hours to really play with the device. I find myself smiling each time a new SMS bubble pops up. I love it. I also like seeing my friends' faces on my phone. I love being able to navigate my content and messages via my friends. Loved how easy it was to set up my email, Facebook, and Twitter. Packaging rocks ... and is recyclable. What is subtle in this device, in my opinion, is how intuitive the UI is. The UI looks and feels similar to others I have seen, but I was able to pick up this phone and use it without reading the instructions.

My colleague Charles Golvin will provide a more in-depth analysis of the device itself.

From a social networking/media perspective, the KIN is a good start, but I hope to see more with upcoming releases, especially around helping people build their social graph. I don't put this burden on Microsoft alone, but on the industry and all handset manufacturers. The content we create needs more meta data or labels. We need logic to mesh this content together and navigate through it. It's great that I can navigate to my friends' status and messages through my contacts (and KIN's UI is a lot of fun). I also want to navigate through my photos and location. Location should be table stakes for photo/status/review (restaurant/bar) content and the logic shouldn't flow in just one direction. Based on my location (simple location or map), I want to see who is nearby or what restaurants my friends liked. Navigating through my friends, I want to see what restaurants they liked. I want to group photos by location. I want to group photos by friends. These are just a few examples. With every product and service developed, one can't have everything. There are cost, time and design trade-offs. I completely understand that the KIN and DROID and others couldn't get everything done in v1.0. I look forward to the next version.

Read more

EU Commerce Changes In Regulations Impacting eCommerce

Patti Freeman Evans

Last week the European Commission redrafted guidelines, many of which relate to regulations around distance selling. The revised guidelines had been adopted 10 years ago and the new ones are to be in place beginning in May for the coming 10 years.

There continue to be many restrictions allowed but the overall set of guidelines pull back on some types of restrictions suppliers can put in distribution contracts. For example, suppliers can no longer prohibit authorized sellers to sell on the Internet.

In addition, suppliers can no longer prevent online sellers from taking a sale from across borders including within a distribution system such as exclusive distribution or selective distribution. For example, a retailer in the UK can accept and ship an order to a buyer in France even if they are not authorized to sell physically in that market. The retailer cannot proactively market to that customer, but they may accept an order if it comes to them passively.  

Read more

Microsoft's KIN - Catching Up With the Mobile Social Networking Competition

Julie Ask

I had the opportunity to go to the KIN launch today. My colleague Charles Golvin has a full take here.

I loved the social networking features on the phone (and the graphical interface with the "spot" though I'd need a change-up on noises). This isn't the first phone we've seen where  the experience is centered on my friends and my contacts, but they keep getting better. We argued (see report) long ago as many did that the cell phone should be the hub of one's social graph and not simply an application on the handset. The KIN comes close and does many things well including:

- Offers status updates inside of my contact profiles which are "live" on my homescreen
- Allows the user to post photos directly from the phone
- Tags photos with location
- Allows me to choose one of many communication channels within profile (many options, but not my full list)
- Builds an online journal of my photos, videos, messages and contacts (looks to me a lot like the concept Nokia tried with their life blog application a while back)

What it is missing, but I suspect is in development:

- Tags (meta data) that allow me to build a richer social graph by tagging my photos with contacts, groups, trips, etc.
- Ability to help me find my friends
- Location tags integrated into maps that connect me to my friends' favorite restaurants, bookstores, etc. - or more generally their content - could also be photos, videos and posts

 

Raising The Bar on Mobile Advertising: Apple's OS 4

Julie Ask

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.

Read more

Why are folks so interested in Apple's ad inventory?

Julie Ask

It has the potential to be more valuable than inventory on many phones.

Why?

People who own smartphone devices are more active on their cell phones than your typical cell phone owner. For simpler tasks like SMS, they are moderately more active. For more complex tasks such as shopping, using maps, banking or doing product research they are significantly more active. iPhone users are some of the most active smartphone users when it comes to commerce-related activities.

Advertisers have held back on spending more on mobile marketing for many reasons. One of the primary reasons has been their inability to demonstrate the effectiveness of the medium or calculate an ROI. It gets a lot easier to calculate the ROI when consumers are buying items or using services such has mobile banking to deposit checks. Consumers are spending real money. My colleague Sucharita Mulpuru will be working on a mobile commerce forecast later this year. Anecdotally, we saw consumers spend in the hundreds of thousands of dollars with individual merchants/hotels/restaurants in 2009. We're likely to see run rates in the low millions for a few companies within a few industries by the end of this year.

The more consumers spend, the more advertisers will be motivated to spend. Consumer product and service companies will invest in mobile services such as "find the nearest," consumer reviews, available inventory, etc. to support commerce-related activities. The greater the supply of services (of great services), the more adoption and usage we'll see among consumers. Then consumers will spend more because the experiences will be convenient - it'll be easy to buy books or toothpaste.

Read more