Are Cell Phones The Key To Reaching Latin American Consumers?

Roxana Strohmenger

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.

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Mobile Web: Long Tail Versus Short Tail Debate

Julie Ask

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%.

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Crowd Factory Launches New Social Campaign Product

Melissa Parrish

Crowd Factory announced today a new product for marketers: CrowdWorks Social Campaign -- which it describes as a way for marketers “to acquire new customers through simple social sharing and custom social marketing campaigns while easily tracking ROI.”

The key word there is simple.  What Social Campaign offers marketers is not complex end-to-end community/social/conversational/engagement marketing functionality and services.  It’s a curated set of light social applications (like sharing and ratings) -- which it refers to as social gestures -- that marketers can use to impact the business goals they’ve already established for their campaigns.

The interface is as simple as the feature set too, which may be a welcome change of pace for marketers who are used to requesting design and coding work from already tapped development resources.  Crowd Factory says it takes 10 minutes, and no technical skills, to customize and deploy a social gesture, and having seen the dashboard, I can believe it.  Of course, that 10-minute time-to-launch comes only after the platform has been approved by whatever internal departments need to sign off on technology platforms, but once that step is completed, the dashboard is in fact a platform that can be used over and over to customize and deploy new social gestures without additional help from tech resources.

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iAd -- Is $60M A Big Deal?

Julie Ask

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?

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What's The Future Of Application Stores?

Thomas Husson

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:

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The Data Digest: How Choosing A Financial Company Differs By Age

Reineke Reitsma

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.

Influencing factors by age

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.

How To Get People To Pay For Content

James McQuivey

It's the most common question I get in my travels: Will people ever pay for content again? See what I had to say about that in a recent interview below (as posted on Paidcontent.org)

Implied in the question is a belief in some yesteryear in which people did pay for content. But the good news is, they never have and never will. That's the good news? Yes, because once we stop imagining that people will someday pay for content again, we can focus on giving them what they will pay for -- access to content.

It's what people have always paid for and it's clearly what they pay for now. Look deeper into the past and you find that people did not underwrite all the pages of content in their daily newspapers. Yes, they paid for the newspaper, but that's just because the newspaper was the only way to get efficient access to that much news and information. Today, instead of paying for newspapers, they pay for high-speed data plans to their homes and on their mobile devices as well as subscriptions to content from Netflix and their cable companies, accounting for 77% of their monthly spend on content. And they will pay even more for that in the future as 4G becomes a reality. 

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How Do I Get My Customers To Download My Mobile Application? -- ESPN Case Study

Julie Ask

I get this question a lot from clients, and I saw a good example today so . . . I thought I'd share. How should we promote our services? Should we use TV? Online? Banner ads on cell phones? What is most effective? The high-level answer is "yes." Most of our clients are pursuing using their existing media -- whether it is ATMs in the case of Bank of America, the Web site for Walgreens, or TV ads by ESPN. Many are also using banner ads on the devices with which their devices are compatible. For example, they buy iPhone ads because the audience is right, and they can connect into the App Store on the application page.

 

Was watching ESPN this morning and saw a commercial advertising mobile TV in preparation for the World Cup.

What they did right and what I liked:

1) Used their existing media (TV) to promote mobile services. They also used an "event" (= World Cup) as a catalyst to promote their mobile TV service. With the World Cup being played in South Africa, there will be games at night, during the work day, and at many other times when people are unable to sit in front of their TVs.

2) The ad on TV gave the viewer context. "When would I use this application?" "Where would I use this application?" The TV ad shows the person switching on mobile video when he gets out of bed, is in the bathroom brushing his teeth, parking his car, and at work. They also demonstrate the quality of the application with zoomed-in views of the video service.

Watching Video While Brushing Teeth

Watching TV at Work

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Nice To Meet You!

Melissa Parrish

As you might have read, the Interactive Marketing analyst team has been growing. What you might not know yet is that I’m one of the new recruits.

I’m one of those practitioners who’s been working with social media since before we called it that — early on at Bolt.com and most recently at Time Inc. Check out my profile for more details about me.

I imagine it’ll come as no surprise that social media is one of my coverage areas. I’ll be looking at the operational, tactical side of social media — especially topics related to community management. Speaking of which, my first piece of writing as an analyst was published in this month’s issue of CRM Magazine. If you have a chance to read it, I hope you’ll come back here and share your feedback.

In addition to social media, I’ll be tackling some emerging topics for interactive marketers, like e-readers and other mobile devices. My early research agenda is sketched out and my first document, a checklist to prepare for community management, will be published in the next few weeks. Following that, I’ll be working on the Community Platforms Forrester Wave, but if there are particular questions you have about any of my coverage areas, or specific pieces of research that would be of interest or help to you, please add a comment and let me know.

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The Data Digest: What Keeps US Internet Users From Buying Online?

Reineke Reitsma

In the past few months, I've regularly posted Data Digests on people's online shopping behavior. However, not every Internet user actually buys products online. Our Technographics® data shows that about 57% of European Internet users and about two-thirds of US online adults have purchased something online in the past three months. Concerns about privacy, delivery, and returns keep the others from making a purchase; women feel more strongly about delivery costs and the need to see (and feel) the product before they buy than men do.

When asked what would motivate them to start purchasing products or services online, lower shipping costs (43%), lower online prices (42%), and the ability to return products easily (27%) top the list. Retailers have to make the cross-channel shopping experience as easy as possible to cater to the needs of those online consumers who do research products but don't purchase them online — yet.