2011 Mobile Trends

Thomas Husson

In a recent post, my colleague Julie Ask and I examined what happened in the mobile space in 2010. In a new report, we are highlighting what we expect the key trends to be in 2011. While we believe that most of the trends identified last year will continue throughout the year ahead, here’s a snapshot of more specific trends that will shape the market in 2011.

•           The mobile/social/local combo will explode in usage but generate little revenue.

•           2011 will be the year of the “dumb” smartphone user. Thanks to handset subsidies, smartphones will be available to the masses. Expect new smartphone users to be less engaged and active than the first cohorts of Android and iPhone early adopters. The good news is that thanks to customer education and the convenience that these devices offer, even “dumb” smartphone users will consume more mobile media than ever before and will have incremental usage of mobile data!

•           The mobile fragmentation problem will continue in 2011. Prioritizing mobile developments will still be a challenge, and cross-platform development has not yet been achieved successfully.

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2010: A Review Of Another Year In Mobile

Thomas Husson

A year ago, I tried to highlight what the key trends for 2010 would be. I wrote: “I’m not going to say that 2010 will be ‘the year of mobile’ or ‘the year of mobile marketing.’ I think 2010 is more likely to be the ‘year that every firm needs a mobile strategy.’ Mobile is simply too disruptive to merely have a year. After all, who remembers the year of the TV or the year of the Internet? Instead, I think 2010 will be a key year in mobile's transition to center stage in the digital marketplace. A new mobile decade is opening up, and now is the time to start your journey. In the past 10 years, mobile phones have changed the way we communicate and live. In the next 10 years, they will change the way we do business.”

Interestingly, that report — “2010 Mobile Trends” — was one of the most-read at Forrester, highlighting that a growing number of companies are starting to take mobile seriously.

So many things happened in 2010 that it is difficult to sum up the year. However, my colleague Julie Ask and I took a step back to offer our high-level take:

•           New entrants are disrupting existing mobile ecosystems. Non-telco companies, such as Apple, Facebook, and Google, increased in importance as key players in the mobile ecosystem. Together, Apple and Google are closing in on controlling about half of the smartphone market and mobile advertising share in the US and have obtained a lot of traction in Europe and other regions of the world.

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Mobile Augmented Reality: Beyond The Hype, A Glimpse Into The Mobile Future

Thomas Husson

Is mobile AR overhyped? Yes.

First of all, the technology is not new at all. It is simply moving from PC and industrial environments to a marketing and mobile context.

Let’s face the reality: for now it is primarily used by brands willing to launch innovative mobile services and in search of a “wow” effect.

Few consumers are currently holding up their smartphone to interact with their environment as a totally natural gesture. Whether you look at the installed base of Junaio or Layar’s mobile users, this is a niche market.

From a pure technology standpoint, AR requires object recognition and computerization on the mobile device itself, as well as 3D rendering to superimpose images on the real world. This is a technology that only a few companies such as Metaio and Total Immersion really master.

The information displayed must be ultra-accurate and delivered in a perfectly seamless way. This is still far from being the norm for many of the so-called mobile AR applications.

To put it succinctly, mobile AR is not yet delivering its promise. There are certainly more significant short-term opportunities to tap into with Web-based and kiosk-based AR solutions, in particular related to eCommerce.

However, Forrester believes consumer product strategists should not dismiss the technology. On the contrary, it is likely to trigger disruption in the years to come and to open up new opportunities.

Is this a key technology moving forward? Yes.

Think of mobile AR as: “A way to click on the real world with your phone the way computer users navigate their desktop with a mouse. Just point in the direction you want to search, or at a place you want more info about,” which is how GeoVector summed it up in promoting its World Surfer application.

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Further Proof That Social Media Is A Mass Medium: The 2010 European Peer Influence Analysis Report

Nate Elliott

Earlier this year, Josh  Bernoff and Augie Ray introduced a new way to look at influential consumers called Peer Influence Analysis -- and showed off some great data from the US market to support their analysis. I’m pleased to report that we now have this same data available in Western Europe as well.

Peer Influence Analysis introduces that idea that there are two distinct groups on influential consumers online: 1) the Mass Mavens who use blogs, forums, and review sites to share complete opinions about brands and products online (creating what we call "influence posts"), and 2) the Mass Connectors who use sites like Facebook and Twitter to connect their friends to influential content from companies and consumers (creating what we call "influence impressions"). Josh and Augie found that both types of influence were highly concentrated: In the US, only 13.8% of online consumers create 80% of influence posts, and just 6.2% of online consumers create 80% of all influence impressions.

Somewhat remarkably, in my new report on peer influence in Europe, we found that peer influence in Europe is further concentrated still. Across Western Europe, just 11.1% of online users create 80% of all influence posts -- and only 4% of online users are responsible for 80% of all influence impressions:

European Peer Influence Analysis Data

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Guest Post: James McDavid On How Smirnoff's "Nightlife Exchange" Brought Social Media Offline

Nate Elliott

I've always loved examples of the crossover between online and offline influence; my 2009 report The Analog Groundswell contains some of my favorite examples of that overlap. Our new London-based Interactive Marketing Research Associate James McDavid is here with the story of how Smirnoff brought social media into the real world -- and how it had a bit of fun in the process:

The weekend of November 27th saw the culmination of a multinational marketing campaign by Smirnoff that showed the extent to which a clear, well-executed social media strategy is able to drive engagement with a brand across multiple regions and interactive channels. 

Using Facebook pages and Twitter accounts, Smirnoff asked fans and followers in 14 cities (such as London, Rio, Miami and Bangalore) what made the nightlife in their city unique -- and then wrapped all the best elements from each city into shipping containers and delivered them to other host cities. Smirnoff posted a steady stream of Facebook status updates asking fans to say which city they’d like to exchange with. The company also made videos showing the shipping containers being filled -- as well as videos of the parties to celebrate the crates' departures -- and posted them to its YouTube channel. Once the crates arrived, Smirnoff threw the parties in its new locations, with its fans and attendees generating even more content and sharing it online.

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More Evidence Online Video Viewers Will Accept A TV-Style Ad Load

Nate Elliott

We've been saying for a while now -- based on the evidence we've seen in certain European markets -- that online video viewers are happy to watch a significant number of in-stream ads in exchange for access to high-quality content.  Today, we found yet more evidence of the same from a study conducted by Turner Broadcasting. Today, many of Turner's TV shows only run two or three in-stream ads each (generally less than 2 minutes of advertising per episode); but the broadcaster found that if it increased the ad load to the same volumes the shows feature on TV (as much as 20 minutes per episode) the number of users who dropped off was shockingly low. The CW network found the same in its own tests.

The bottom line: Get ready for more online video ads. Inventory will grow, prices will fall (at least somewhat), and overall online video ad spending will grow dramatically.

(As a side note, The New York Times' article in which this research is published takes aim at Hulu for hoping to "lighten up" the amount of advertising users see and repeats Hulu's accurate claim that it has less than half as much advertising as the same shows on TV -- which is ironic, given that in my anecdotal experience Hulu has been more aggressive than any other US online video site in pushing more ads into its content; most of the ad breaks I see on Hulu these days contain two ads.)

What Is A Boomerang?

Luca Paderni

 

No, I’m not Australian . . . at Forrester, "boomerangs" are analysts that, after leaving the research team for a stint in the "real world,"  have decided to re-join. Clients and fellow analysts value the experience we "boomerangs" have built as marketers and the pragmatic outlook we always bring to the table. As for me, I am a bit of an anomaly, as this is the second time that I am back at Forrester. My 20-year career as a marketer can be roughly split in two phases: first, the CPG marketing and strategy roles for brands like Ferrero, L’Oreal, and Johnson&Johnson; then, my digital marketing phase, which recently closed with more than four years at Google.

I would like to think that I am now entering a new phase by helping organizations understand the key role that marketing can play in shaping the way they navigate markets and customers that are constantly affected by the adoption of new technologies. Quite an ambitious scope, so to make sure that I stay relevant and deliver actionable research and advice, I have decided to launch this blog to start a dialogue with CMOs and Marketing Leaders on what’s keeping them up at night and how we can help them.

Coverage areas and topics I’m interested in.

As I type this, I am in the process of writing research on the following areas (please note that links are to reports that are only accessible by clients):

  • I’ll primarily focus on helping marketers redefine brand loyalty and the role that it plays in the Customer Life Cycle.
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Winners Of The 2010 Forrester Groundswell Awards (Consumer International)

Nate Elliott

Social media adoption has grown in leaps and bounds over the past few years, and not just in North America. Did you know that Italian and South Korean online users are more likely to engage with social media than American online users? Likewise, most of the European countries we study have a higher percentage of Conversationalists than we find in the US.

Despite this, most industry conversation around social media tends to focus on the US — and over the past few years nearly all of the entries we’ve received for the Forrester Groundswell Awards have talked about US-focused social media programs. To help recognize the companies that are pioneering the use of social media outside the US, this year we introduced an international category to the awards.

This week at Forrester's Marketing and Strategy Forum EMEA 2010, I was proud to present the winners of the inaugural Forrester International Groundswell Awards, which you’ll see listed below. I was thrilled with the entries we received. We saw dozens of quality entries from around the world, and in the end recognized finalists and winners from four continents, as well as a number of global efforts. I hope that other companies learn from — and rise to the standard of — the entries we saw this year; and I hope that our 2011 international category sees even more — and even better — entries.

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Should You Bid On Competitors' Trademarks?

Nate Elliott

Recently, Google changed its policies to allow European marketers to bid on other companies' trademarks — but surprisingly, the floodgates haven't opened yet. In fact, we're not seeing very much competitive keyword bidding at all in Europe — nor in the UK, where Google has allowed this type of bidding for several years. This got us thinking: What types of marketers should bid on their competitors' trademarked keywords — and which (if any) shouldn't? Is competitive bidding best used as a branding exercise or to generate leads and sales? When you bid competitively, how should you change your creative strategy and your landing page choices? And, critically, how should you respond if you find your competitors bidding on your keywords?

I'm working with my new colleague Lucilla De Sarlo on a report on these topics right now, and we would love to hear your opinions. Feel free to post thoughts in the comments below or to e-mail Lucilla at: ldesarlo@forrester.com.

How Mature Is Your Mobile Strategy?

Thomas Husson

How Mature Is Your Mobile Strategy?

To help consumer product strategists and executives answer this question and benchmark their mobile consumer strategy, Forrester fielded a Global Mobile Maturity Online Survey in Q3 2010. We interviewed more than 200 executives in charge of their company’s mobile strategy across the globe (40% in the US, 40% in Europe, and 20% in the rest of the world).

First, only a third of respondents said that they had had a mobile strategy in place for more than a year. Companies in this situation are from many different industries, but online players, media companies, and financial institutions are often more advanced. Forty-five percent of respondents are just waking up to the mobile opportunity and thinking about integrating mobile into their overall corporate strategy — just like they did a decade ago with the emerging online channel.

For the majority of respondents, mobile is mainly seen as a way to increase customer engagement, satisfaction, and loyalty. Mobile is less useful as a way to acquire customers and generate direct revenues — just 2% expect to generate more than $10 million in mobile revenues for 2010. While companies are assigning clear objectives to the emerging mobile platform, 23% of respondents still consider their primary objective with mobile to be to “test and learn.”

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