Facebook, Gowalla, And Marketing On Location-Based Social Networks

Melissa Parrish

As you’ve undoubtedly heard by now, yesterday Facebook announced its acquisition of Gowalla. The move opens up interesting possibilities for location-based and location-aware social apps, some of which I explored in my most recent, serendipitously timed report on location-based social networks (LBSNs).

On one hand, the acquisition means that the herd of strictly LBSNs is continuing to thin, which means the remaining apps have less competition, so marketers who are looking to play on those platforms should have fewer options with larger audiences to choose from. On the other hand, the move appears to be further integrating location into a user’s total Facebook experience — at once broadening the appeal of location-based social activity by baking location into everything a user does on Facebook and thereby potentially subverting the need for strictly LBSNs by integrating the user value into a larger social experience.   

And so the big question: should marketers get involved with LBSNs and other geolocation applications?

The bottom line is that geosocial apps are still niche, but they’re growing in usage. Since we published our previous report in July 2010, foursquare has grown from 2 million users to 15 million. Twitter — and now even more aggressively, Facebook — has continued to fuse their social offerings with location information; even technology companies like Apple are chiming in with the launch of the “Find My Friends” app. However, even though the user-base numbers have grown quickly, we still find that few consumers are checking in: 6% have ever, with only 2% doing so at least weekly.

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The Unemployment Rate Fell On Friday . . . But Don’t Brace For A Surge In Holiday Spending

Andy Hoar

The US unemployment rate fell on Friday to its lowest level since March 2009 (http://www.bls.gov/news.release/empsit.nr0.htm). And on paper...that’s a very good thing. 

But before we get too excited about what that could mean for 2011 holiday spending, consider this: The reason the unemployment rate dropped from 9.0% to 8.6% in the household survey was as much due to the fact that 315,000 people gave up looking for work as that 120,000 people actually found work. It’s a big flaw in the way the US unemployment rate is calculated that the rate can actually go down (so appear to improve) when people just stop looking for work. 

(http://blogs.wsj.com/economics/2011/12/02/why-did-the-unemployment-rate-drop-5/).

The reality is we won’t know the true unemployment rate until those who’ve given up looking for work re-engage in the job hunt and fill out that total workforce denominator (at which time the unemployment rate will actually go up temporarily before then finally coming down as we start seeing that recovery).  But we’re not there yet.

The co-reported payroll employment number is a better indicator of job growth because it comes from a much broader and deeper survey called the payroll survey. But for November that number (120K new jobs created) only matched expectations and is actually below the minimum number (approximately 150K) needed to keep pace with population growth in America. So, unfortunately, not much real gain there. And sadly, there’s probably not much to say about a jolt to the 2011 holiday shopping season either.  

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Introducing Engaged TV: Xbox 360 Leads The Way To A New Video Product Experience

James McQuivey

What to do when a failed product concept still lingers, haunting every attempt at injecting it with new life? That's the problem with interactive TV, a term that grates like the name of an old girlfriend, conjuring up hopes long since unfulfilled yet still surprisingly fresh. Gratefully, it’s time to put old product notions of interactive TV behind us because this week Microsoft will release a user experience update to the Xbox 360 that will do for the TV what decades of promises and industry joint ventures have never managed to pull off.

Meet engaged TV. From now on, I will no longer need to plead with the audiences I address, the clients I meet, or my friends who still listen to me to imagine the future of TV. Because Microsoft has just built and delivered it: A single box that ties together all the content you want, made easily accessible through a universal, natural, voice-directed search. This is now the benchmark against which all other living-room initiatives should be compared, from cable or satellite set top boxes to Apple’s widely rumored TV to the 3.0 version of Google TV that Google will have to start programming as soon as they see this. With more than 57 million people worldwide already sitting on a box that’s about to be upgraded for free – and with what I estimate to be 15 million Kinect cameras in some of those homes – Microsoft has not only built the right experience, it has ensured that it will spread quickly and with devastating effect.

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Coca-Cola Leverages Context To Create Engaging Mobile "Chok" Campaign In Hong Kong

Julie Ask

I've written a lot about the notion that the "Future Of Mobile Is Context" this year at Forrester. Since publishing this research this spring, I've been searching for examples and case studies of innovative uses of context. (See how marketers and eBusiness pros can leverage context.)

Coca-Cola is allowing consumers in Hong Kong to enter a sweepstakes by virtually collecting bottle caps from a 3rd screen (TV, movie theather). The audio signal from the commercial triggers the application/ syncs the user's motion with the video. The acclerometer is used to assess the quality of the motion of the user's mobile phone — the device that is used to catch the bottle tops virtually. See video.

Why is their use of context sophisticated?

In the research, I describe the four phases of evolution.

Phase 1: the basics — leveraging location, time of day, etc.

Phase 2: layering intelligence — so, not just time of day, but time of day relative to an event

Phase 3:  using new technology in phones (e.g., sensors, two cameras, etc.)

Phase 4: more sophisticated use of the sensors and technology to control the device

Coke's campaign is what I would call a v 2.0 use of mobile (they are enhancing another touchpoint - see research) with some Phase 3/4 context. They enhance the video/commercial experience by getting the consumer to be active. The act of collecting the bottle tops gets the consumer off the couch and to interact with the ad directly. I think it's very cool.

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Will A New Service Provider Type Emerge For Digital Marketing?

Peter O'Neill

 

Peter O'Neill here. I took advantage of an invitation to dine with around 15 CIOs this week in Frankfurt and our topic of conversation was “Managing The Online Customer Journey.”  This is the regular event organized by CIO Magazine, and I go along, calendar permitting, when I am invited to present or if the topic interests me. In this case, my fascination was to hear what these CIOs think about the prevailing trends of IT consumerization and social media.

But I was most interested in their ideas on how marketing aligns with the IT organization; a concept that I’ve encountered a lot recently in my engagements with tech marketers as well as working with tech automation vendors in their go-to-market activities. Forrester has published a lot on this recently, led by my illustrious colleagues Nigel Fenwick and Luca Paderni who serve the CIO and CMO, respectively.

 My fascination with the topic is that I see a new business opportunity for savvy systems integrators. I am calling it the “emerging digital marketing service provider,” and I will focus my next Forrester Teleconference on this observation next week. That provider will need to be tooled with marketing creative skills plus IT skills and services and it will sell to the CMO and CIO equally: a new market coming together out of the marketing budget and the IT budget, as the figure shows.

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The Challenges Of Running Global Research Projects In Today’s Digital World

Reineke Reitsma

As some of you know, I really have a thing for doing research in multiple countries. I’ve been working in market research for two decades now and have always conducted international research projects — and experienced all the challenges that come with them. But I believe that conducting international research is even more challenging now than it was 20 years ago when I started my research career.

I see three key challenges that market researchers must deal with when doing multicountry projects:

1) How to collect globally comparable data. As soon as the surveyed cultures are so different that you need to adapt research methodologies and localize questionnaires, you’ve lost the chance for global comparisons. How do you walk that fine line between globalization and localization?

2) How to put this data into a local context. It’s really hard to understand the real drivers of behavior in different regions. Just looking at the results and comparing them with those of other countries might result in the wrong conclusions.

3) How to distribute and communicate these results back. Collecting information is one thing, but communicating it back to the local organizations and having them act on it is quite another. Will your local market insights teams use, share, and implement the data that you’ve collected globally?

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Carrier IQ: When CI Should Be Damned

Rob Brosnan

Did you see the news about Carrier IQ covertly capturing Android users' activities for analysis by carriers? Trevor Eckhart, who analyzed the application, writes:

Carrier IQ software, which consists of embedded software on mobile devices and server-side analytics applications, enables mobile operators and device OEMs to understand in detail a wide range of performance and usage characteristics of mobile services and devices. These include both network-facing services such as core voice and data offerings, as well as non-network-facing capabilities such as music players, cameras and other side loaded media, in order to assist with product and service development and roll-out [emphasis added].

Customer Intelligence is not a spying operation. The promise of CI is not reductively commercial. Instead, proper CI practices help businesses – with their customers' consent – to understand the preferences and needs of their customers. Firms also use CI processes and technologies to determine and enforce an optimal and respectful relationship with customers.

What lessons does the Carrier IQ incident highlight?

  • CI pros have an ethical responsibility to customers. CI pros are customer advocates after all. They cannot truly represent customers unless they also help their employers understand appropriate boundaries for data capture. Helping customers also helps businesses, protecting firms from the risk of public outrage and litigation. CI pros: Help your employers understand when data capture goes too far.
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Agile Commerce Is For Life, Not Just For Christmas

Martin Gill

 

EBay is now the latest entrant into the field of retail experimenters that are trialing the concept of a “virtual store.” 

EBay joins Occado and Tesco in embracing the increasing number of Multidevice Buyers in the UK who use their smartphones not only to inform their offline shopping journeys, but to buy products as well. EBay’s pop-up store in the heart of London promises to allow shoppers to browse products in person and purchase via a QR-code-driven mobile shopping experience. 

While eBay's store is very deliberately designed as a temporary pop-up, others are approaching the same challenge in a completely different way. House of Fraser recently launched a concept store in Aberdeen that carries no stock but offers shoppers the opportunity to sip a free cappuccino while they browse House of Fraser’s website on dedicated Internet stations.   

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Benchmark Your eBusiness Strategy And Results

Carrie Johnson

I'm so excited to announce that today we have launched Forrester's new free eBusiness benchmarking tool. With the tool you can compare your key performance metrics against your peers'. Plug in the answers to a few questions about your eBusiness budget and metrics and our tool will instantly compare your answers to similar size companies for five key benchmarks:

  1. The size of your annual eBusiness budget 
  2. The number of staff dedicated to your online division
  3. The percent of overall sales that occur online
  4. The size of your eBusiness team
  5. The percent of customer service interactions that occur online

The tool will not only show side-by-side results, it'll also produce a nifty PDF for you to print out and show to your colleagues. But wait there's more! We have a suite of research that helps our clients act on results, outlining how to improve those five key metrics to keep up with competitors and align with best practices. We've summarized all of our advice on how to use the benchmark tool and to improve results in an accompanying report called "Benchmark Your eBusiness Strategy And Results" (sound familiar?) and I encourage you to read it. 

We also have a whole body of research that we think help turbo charge your eBusiness results.

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Four Reasons Why ExactTarget's IPO Helps CI Pros

Rob Brosnan

ExactTarget filed an S-1 last Wednesday, November 23, the first step towards an initial public offering (IPO) by the end of March, 2012.1 The company grew substantially over the past several years and is tracking a 55% growth rate in 2011. ExactTarget now services about 4,600 direct clients and reports $148 million in revenue through September 30, 2011. Congratulations to Scott Dorsey and his team for guiding the company to this point.

How will ExactTarget's IPO benefit CI Pros? The IPO can:

  • Provide additional capital for research and development. The funds ExactTarget will raise through the IPO will help transform the company from an email service provider (ESP) into a full-fledged marketing technology platform. Increased R&D will allow the company to evolve through organic development and acquisitions. Both moves will help it to fill out its cross-channel campaign management and Customer Intelligence offerings. CI Professionals at mid-to-large enterprises should expect to see the company move more aggressively to offer enhanced enterprise marketing capabilities.
  • Enhance attractiveness to partners. ExactTarget's IMH has yet to catch on with heavy hitters in analytics, offline channel management, and marketing resource or operations management.2 The quarterly and annual disclosure requirements on ExactTarget could help clarify the company's plans to potential partners and assuage concerns about future competition. Stronger partnerships will lead to additional IMH applications for CI Pros.
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