Consumers in Asia Pacific are the most active mobile phone users globally, but does this usage translate into spending money on mobile services? Our Technographics® data shows that South Korean mobile phone owners lead in buying content or services for mobile phones. Each country in the Asia Pacific region has its specific mobile content preferences. Ring tones and ringback tones are the most popular service, followed by games and music.
Mobile content buyers are mostly young technology optimists with higher incomes. There are, however, a few interesting exceptions in different countries. One-third of South Korean buyers fall into the 30-to-39 age bracket; more than half of Indian mobile consumers are highly entertainment-oriented; and about 40% of Chinese spenders are highly career-driven.
It has only been a few weeks since Google announced it would create a brave, new world with its Google TV platform. In all the reactions and the commentary, I have been amazed at how little people understand what's really going on here. Let me summarize: Google TV is a bigger deal than you think. In fact, it is so big that I scrapped the blog post I drafted about it because only a full-length report (with supporting survey data) could adequately explain what Google TV has done and will do to the TV market. That report went live this week. Allow me to explain why the report was necessary.
Some have expressed surprise that Google would even care about TV in the first place. After all, Google takes nearly $7 billion dollars into its coffers each quarter from that little old search engine it sports, a run-rate of $27 billion a year. In fact, this has long been a problem Google faces -- its core business is so terribly profitable that it's hard to justify investing in its acquisitions and side projects which have zero hope of ever contributing meaningfully to the business (not unlike the problem at Microsoft where Windows 7 is Microsoft). So why would Google bother with the old TV in our living rooms?
Because TV matters in a way that nothing else does. Each year, the TV drives roughly $70 billion in advertising and an equal amount in cable and satellite fees, and another $25 billion in consumer electronics sales. Plus, viewers spend 4.5 hours a day with it -- which is, mind you, the equivalent of a full-time job in some socialist-leaning countries (I'll refrain from naming names).
Google's goal is to get into that marketplace, eventually appropriating a healthy chunk of the billions in advertising that flow to and through the TV today with such painful inefficiency.
I don't know about you, but I like the 'extended' search results I sometimes see on Google. I mean the ones where Google, instead of just offering a single link for the top search result, provides you with several deep links into a site. It makes navigation faster, and that's a good thing.
Those extra links almost always show up in organic results, so you may not have known that marketers can actually buy this feature in their paid listings as well. Google calls them 'AdWords Ad Sitelinks.' But -- I'm starting to wonder how well these actually work for marketers. I noticed today that in Google's case study about how Nationwide Insurance used Sitelinks [pdf], Google says the clickthrough rate went up 73% but conversions only rose 60%. The case study isn't clear on whether that's conversions per click or overall conversions -- but it certainly sounds like overall conversions. In which case, the clicks Nationwide got from Sitelinks actually converted at a lower rate than the clicks they got from traditional paid listings.
Now, this is just one example -- and as I said, it's based on my reading of the case study. But if Sitelinks really did drive conversion rates down rather than up, surely that'd be a concern.
I'm curious -- have you used Sitelinks? If so, what did you think of the program's performance -- especially the conversion rates? Let us know in the comments below.
I am back from beautiful Cartagena, Colombia where the ESOMAR Latin American 2010 conference was held. In addition, last week, I met with media and advertising professionals focusing on the Latin American market in Miami at the annual Portada Panregional Advertising and Media Summit. At both conferences, a consistent theme resonated throughout all the talks — the Internet is a powerful vehicle for Latin American consumers to connect with peers and even companies; however, the digital divide still persists in Latin America.
We find that, on average, 56% of metropolitan consumers in Brazil and Mexico are not online. Therefore, companies are still unable to reach a significant number of consumers through social media tools. Does that mean that if you have identified that the majority of your target audience is not connected that you are on the sidelines and unable to harness the “power” of social media? I think the answer is no.
Last year, every consumer brand seemed to be building an iPhone application. Towards the end of 2009, they began to say, 'We have an iPhone application. Now what?" For many, the answer seems to be "mobile Web." The open question is "how." I'll be publishing an in-depth study on how with my colleague Brian Walker, going into more depth on the implications of commerce for mobile Web builds. One of the strategic questions that must be answered first is, "do I build a mobile Web site for all devices (= long tail)?" or "do I have a more tiered approach with custom development for the handful of devices (short tail) which drive most of my traffic and a more automated approach for all the other devices (long tail)?" Good questions.
There are some good sources of information online. AdMob and Millennial Media publish monthly reports based on ad requests they see. Netbiscuits just published a white paper with a lot of good data.
First, how long is the long tail? According to the Netbiscuits white paper, it was 2,496 devices in February 2010. How short is the short tail (= 50% of the traffic)? In February 2010, only 12 devices. What is the number one device in each report? Yes, the iPhone -- or now iOS 4 platform. In terms of global traffic, Netbiscuits put Apple first with 36% of traffic while AdMob's numbers for Apple were a bit lower at 33%.
Most of the news this morning at WWDC was around iPhone 4 and iOS 4. Will leave the new device and platform play to my colleague Charles Golvin. I can't wait to get one of the new phones . . . very slick as it looks like a mini iPad in a modified format.
iAd . . . $60M committed for the second half of 2010. Initial advertisers include: AT&T, Best Buy, Campbell Soup Company, Chanel, Citi, DirecTV, GEICO, GE, JCPenney, Liberty Mutual Group, Nissan, Sears, State Farm, Target, Turner Broadcasting System, Unilever, and The Walt Disney Studios.
Pretty impressive. How do they get to $60M? Rumor is that the minimum buy-in is $1M, but it goes up from there. They claim to have 50% of mobile ad market share according to a J.P. Morgan study. I think it is a bold claim unless this is purely the media spend and doesn't include creative. Our number is comparable -- but without creative. Advertisers can count on the buzz surrounding iAd's launch on July 1. That alone may justify the initial buy. These initial advertisers are a smart bunch. A few million dollars isn't much to any one of them, but these are sizeable buys for mobile.
I think there are a lot of interesting questions to be answered. Many will be "wait and see," but here's my wishlist:
- What do I get for $1M+ in mobile advertising? Am I buying creative, development, ads, and analytics?
- How much targeting do I get?
- Is it performance-based? Or CPMs?
- What will work well on the i OS4 devices? Branding? Or, will the ads leverage context -- the context of how, where, and when I use these devices? Will the ads drive me to online purchases or into a nearby store to make a purchase?
- How much control do I get over where my ads are placed?
I'm thrilled to announce that this year Forrester will present the first-ever Forrester International Groundswell Awards! The Forrester Groundswell Awards are our effort to recognize not just the best ideas in social media marketing, but the programs that have proven the most effective at generating results for marketers. In the past we've run a single set of awards for all business-to-consumer marketers, no matter where in the world they were based -- and we've always been excited to see and reward great social media programs from outside the US. This year, with companies around the world ramping up their use of social media marketing -- and with many of them doing outstanding work -- we decided it was time to create a special category for non-North American marketers.
If you've run a great consumer-focused social media marketing program in the past year -- and if your program didn't specifically target the US or Canada -- then we'd love to see your entry for the Forrester International Groundswell Awards. The entry deadline is August 27, 2010 (get your entries in early so you can generate audience votes!) and we'll present the awards at our EMEA Marketing and Strategy Forum in London on November 18, 2010. Be sure to check out Josh's post for full details and rules. I'm looking forward to seeing your submissions!
At the beginning of this year, we stated that application stores would continue to flourish, but none would replicate Apple's success in 2010. So far, it has been quite easy not to be proven wrong on this one. Android Market and, to a lesser extent, RIM's BlackBerry App World are growing fast in the US, while Nokia's OVI is performing quite well in some regions. Windows Marketplace is likely to benefit from end-of-year Windows 7 sales, while Samsung Apps are not yet really marketed, not to mention LG's efforts. The Wholesale Applications Community (the operators' alliance) has not yet launched. Global operators have yet to significantly launch their own multiplatform stores. Both approaches (the vertically integrated from handset manufacturers/OS players and the horizontal layer added by operators) are likely to continue to expand this year, making it even more complex for brands and companies launching their own applications. Many of them are starting to realize that there is a world outside of Apple's iPhone and that their app will be lost in a back catalog of more than 200,000 apps if they don't market it. They are starting to wonder how to break the Apple App Store ranking algorithm, how much to invest in the life cycle of their application, and which stores they should target to distribute their products and services. I see a couple of key issues that need to be tackled to seriously address this market opportunity:
What matters to financial buyers depends on who they are and what they are buying. Our Technographics data shows that European customers with different profiles — for example, different sociodemographic or attitudinal profiles — care about different things when selecting financial services firms.
The report 'Why Europeans Choose Financial Firms' also shows that the influence of word of mouth on a customer's decision to select a financial services firm declines sharply with age. A striking 37% of customers ages 16 to 24 and 18% of customers ages 25 to 34 were influenced by their friends' or family's recommendations. On the other hand, nearly half of European financial buyers ages 65 or older chose a company for their most recent financial purchase partly because they already had a product or account there.