Prepare For The Second Wave Of Apps

Thomas Husson


In July 2012, app stores — first popularized by Apple — will be four years old. There is still a lot of room to improve the discoverability and sharing of apps. For example, locally relevant content and monetization options are often missing. Adding social discovery, personalization, and recommendation features are key to improving the user experience.

However, app stores have already had a dramatic impact on the distribution of games and are starting to offer new forms of engagement between brands and consumers. Consumer usage of the most popular mobile apps has exploded in the past two years. A third of European online consumers ages 18+ who own a smartphone are using apps daily or more frequently. Seventeen percent are using apps several times a day. Stickiness and frequency of usage vary tremendously from one app category to the other. Among European online consumers ages 18+ with installed apps on their smartphones, 57% use social networking and 48% use news apps at least daily, while 69% use finance and banking apps at least weekly.

First-generation apps — aside from gaming apps — rarely made the most of the unique attributes of the mobile platform and were rarely integrated with back-end systems. We believe the market is poised for a second wave of consumer apps that are more personalized and contextual. Here’s what to expect:

■          “Big data” will enable more contextual experiences on mobile apps.

■          We'll see smarter, connected apps.

■          There will be a shift from native to hybrid and web apps.

■          Multiplatform apps will reign supreme.

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Facebooks Needs to Take Marketing Seriously

Melissa Parrish

My colleague Nate Elliott and I have been thinking about the Facebook IPO. Our thoughts:

The world’s biggest social network will complete its initial public offering in a few days, with a valuation based largely on its strong history of innovation. But we have to wonder: Will Facebook ever focus any of that innovation on helping marketers?

After all, Facebook is fantastic at introducing great new features and services for its end users. The moment another social tool gains the interest of enough users – whether it’s Twitter’s rapid public chatter or Foursquare’s location-based check-ins – Facebook updates its own site to offer similar features to its legions of users. We’ve rarely seen a company borrow from its competition as quickly or as well as Facebook. And that focus on better serving end users has seen Facebook grow quickly over the years, even in the face of consistent privacy concerns.

But as good as Facebook has been at evolving to serve consumers, that’s how bad it’s been at serving marketers. In the past five years Facebook has lurched from one advertising model to another. Remember when the site charged marketers to host branded pages? Or when every page featured banners from MSN’s ad network? (You may choose to forget Facebook Beacon; Mark Zuckerberg would certainly prefer you did.)

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Engaging Your Ultra-Connected Customers

Melissa Parrish

Back in March, I hinted at my discomfort with the way SoLoMo has come to mean technology-focused, reductive marketing campaigns usually solely focused on the “check-in.”   But the reason people want to talk about SoLoMo is because of real trends in consumer adoption of technology and advanced technology behaviors. Those of you who were at Forrester’s Marketing Leadership Forum last month know that this thinking evolved into what we’ve been calling the Always Addressable Customer — a topic that I haven’t stopped talking about since we debuted it. For those of you who haven’t yet heard the term, the Always Addressable Customer is someone who:

·         Owns and uses at least 3 data connected devices

·         Accesses the Internet multiple times per day

·         Goes online from multiple physical locations (for example: home, work, in the car, and at the mall)

These customers require marketers to think differently about their programs if they want to be effective. Always Addressable Customers don’t stop to think about their devices or “technology solutions.” Rather, technology is simply how they live their lives and get stuff done. It means that you can now reach this ultra-connected audience wherever they are, but more importantly, wherever and whenever they need you. That “need” is key here: I’m not talking about your ability to bombard your customer with irrelevant messages. I’m talking about how you can now provide true service and value to your customers whenever and wherever they need it. 

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With The Galaxy S3, The Samsung/Apple Fight Will Enable Smarter Product Experiences

Thomas Husson

After months of rumors and a good marketing orchestration, Samsung has just unveiled its new flagship device, the Samsung Galaxy S3. Samsung will first launch the HSPA+ device in Europe at the end of May to benefit from the current weaknesses of its competitors — in particular, Nokia. It will release in the US in an LTE version later this summer. The aim is clear: to take the lead from Apple’s iPhone in the high-end smartphone segment and do even better than the Galaxy S2, which sold more than 20 million units.

Samsung is positioning a wide range of products in all segments and in multiple consumer electronic categories, leveraging its scale and scope and its vertically integrated approach (screens, processors, storage components, etc.). Despite the growing dependence on the Android OS, Samsung does not have all its eggs in the same OS basket. However, it clearly needs to catch up in the software and services space. That’s the reason I continue to believe that, in the premium segment, Apple is still in the best position to offer a seamlessly integrated experience across devices. Samsung’s cloud component is still missing, and it will need to continue its efforts to close the gap with Apple.

On the contrary, Apple — still one of Samsung’s largest clients (chipsets and screens) — has few models and higher margins and is in a position to leverage a different ecosystem around its OS, apps, and iCloud models. Thanks to the phenomenal success of the iPad, the Apple brand is reinventing itself and expanding into hardware categories that represent new growth drivers from which Samsung is not yet able to benefit.

Beyond the Samsung/Apple high-end leadership war, the great news is that these new smartphones will increasingly enable consumer-facing brands to launch innovative new product experiences. Some of the new services introduced by the Galaxy S III highlight this phenomenon:

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With O2 Wallet, The Disruptive Mobile Payment Space Is Heating Up

Thomas Husson

A year ago, Forrester stated that mobile payments were entering a disruptive phase. More recently, my colleague Benjamin Ensor elaborated on the battle for the digital wallet.

Mobile digital wallets are emerging and going beyond payment. New technologies, mixing QR codes, apps, personal financial management software, NFC, and many more, are combining to convert mobile handsets into digital wallets that combine not just payments but also receipts, vouchers, and loyalty. Beyond the convenience of using the phone for payment, consumers will benefit from post-transaction elements such as location-based coupons or enhanced product information at the point of sale (POS).

We’ve not seen a single day without a new product launch, start-up creation, or acquisition — or a new strategic alliance between banks, payment networks, Internet firms, or mobile operators.

So what’s new today? Telefonica 02 just announced the launch of O2 Wallet in the UK.

We believe that the O2 Wallet is, for now, the most comprehensive mobile payment solution in the UK – available to a majority of smartphone owners, whether they are O2 customers or not. The new product combines the following functions:

  • Money Message — This gives customers the ability to easily transfer money to any UK mobile phone number.
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Drive Product Innovation To Mature Your Mobile Strategy

Thomas Husson

To gauge how far organizations have come with their mobile initiatives, Forrester conducted the Q4 2011 Global Mobile Maturity Online Survey among executives in charge of their companies’ mobile strategies. 

Since 2010, fewer companies report not having a mobile strategy in place. Between Q3 2010 and Q4 2011, the percentage of companies we interviewed that have no mobile strategy or are at the early stage of defining one has significantly decreased, from 57% to 31%. C-level executives are increasingly in the driver’s seat, and mobile is moving away from a test-and-learn approach to fueling companies’ corporate goals. Mobile is primarily viewed as a way to improve customer engagement and satisfaction.

 However, the majority of companies face organizational issues and struggle to allocate the right resources for mobile and to measure the success of their mobile consumer initiatives. The main obstacles they face are these:

 ■ Lack of measurable business goals clouds early success.

 ■ Limited investment, resources, and expertise slow progress.

 ■ Cross-functional and cross-geographical complexity cause inefficiency.

 There are plenty of new disruptive platforms emerging from tablets, from game consoles to connected TVs, but mobile will be the primary platform for global product innovation. Only mobile phones can offer such a global reach.

 To prepare for the accelerating pace of mobile disruption, product strategists should help other internal stakeholders rethink the life cycles of their mobile applications and services and drive innovation via smarter apps, richer data, and converging technologies.

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Thoughts About NFC, Contactless Services, And Nokia Lumia Devices

Thomas Husson

A couple of weeks ago, I stated that there was much more to Near Field Communications (NFC) than just contactless payments. The WIMA conference starting today in Monaco will showcase numerous use cases for the technology.

I continue to believe that most consumers using an NFC device in 2012 will more likely use it for device-pairing or data-sharing purposes than for payments. Pairing NFC accessories and reading NFC smart tags will open up new opportunities. NFC will be a key technology for interacting with the world around you — and it is time to test it, as highlighted in this recent piece of research written by my colleague Anthony Mullen. There is an ongoing debate about bar codes’ potential replacement by NFC; I think both technologies serve different objectives and have different advantages but will continue to co-exist. Radio and optical technologies are converging, as highlighted by French startup Mobilead, which does a fantastic job of delivering a great branded experience mixing QR codes and NFC tags.

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Direct Marketers Share Smart Online Lessons

Shar VanBoskirk

My colleague Sarah Takvorian attended the New England Direct Marketing Association’s (NEDMA) spring Marketing Technology Summit in Boston. Here are the lessons learned in Sarah’s words: 

  • Create socially enabled marketing campaigns. In his keynote address, Harry Gold, CEO of Boston’s digital marketing firm Overdrive Interactive, reminded us that you don’t need a million Facebook fans (in fact, most companies will never reach that number). To capitalize on the fans you do have, and in turn extend your reach to the people who orbit those fans, you need to integrate social media into your broader marketing mix, working across channels and allowing their successes to play off of and feed into one another and then measuring the results, of course. 
  • Add clear calls to action. Prominently display “Like” or “Share” buttons in your emails or on your site’s most interesting, share-worthy content (perhaps a compelling graphic, article, or product). When someone presses Like on your site, they might not be a Facebook fan, but their action will still feed back into their Facebook newsfeed, thereby allowing you to tap into their network of friends and boosting your brand’s social presence. For example, Levi’s increased its Facebook traffic by 40% when it invited users to “like” content on its Website. 
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For P&G, Will The Revolution Be Digitized? Not The Way You Might Think

Jim Nail

 Last week’s announcement by P&G CMO Mark Pritchard that it intends to cut marketing costs in part by shifting money from TV to digital sounds like a possible revolution in the marketer’s traditional TV-centric approach. I agree with my colleague Tracy Stokes that this is not the end of TV.

Nor is it the beginning of a new drive for CPG brands to build digitally based one-to-one, CRM-style customer relationships.

But it is an opportunity for interactive marketers to increase their presence and impact on brand teams if they look ahead of the curve on how the increasing digitization of media, adoption of new devices, and impact of big data will have on TV advertising. Interactive marketers should position themselves to lead brands in the future by adding the tools and concepts of mass branding to their skill sets, then mapping their career path to these changes:

  • Today: Brands like Tide and Bounty still thrive with a brand strategy rooted in mass reach and emotive messaging. Now that is best delivered by TV, but Internet advertising has played the role of reach extender for years. The growth of online video should enhance this role but interactive marketers risk losing control of this medium unless they set aside their traditional action metrics and learn to speak mass media metrics with their colleagues.
  • Tomorrow: Digital will become more important as the Splinternet further fragments media consumption. But tablets and smartphones offer more than reach extension through complementary experiences that will key off the TV ad. Traditionally trained TV experts don’t have the conceptual framework to envision these opportunities; interactive marketers who can plan the reach and design the experiences will have an edge.
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SoLoMo Or So Not Yet?

Melissa Parrish

Are you thinking about SoLoMo yet?  My clients definitely are, and I haven’t been surprised by the number of questions I’m getting about it considering that 86% of US online adults engage in social media and 2/3 of online Generation Y fall into the SuperConnected category of Mobile Technographics®. But what does SoLoMo really mean?

It’s a concept that brings together social, local, and mobile media — and it’s intriguing to marketers because incorporating social engagement, local targeting, and the mobile customer into a single program seems like it should lead to especially creative and effective engagement. But I’ve been researching this topic over the past couple of months and I have a couple of concerns:  

  • First, the way we talk about SoLoMo puts too much focus on the technology and easily lets marketers slip back into technology-first strategies driven by trends rather than audience insights.   
  • Second,  SoLoMo programs often take the form of a check-in offer today. This can certainly be an effective marketing tactic for retailers and brands with brick-and-mortar presences. But isn't there something SoLoMo can offer other brands?
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