With iOS 8, Apple Increases The Value Of Its Ecosystem But Only Marginally Improves App Marketing

Thomas Husson

My colleague Ted Schadler explained here how Apple's iOS 8 focuses on developers building new mobile moments.

Once again, Apple increases the value of its ecosystem and will create more stickiness and loyalty by enabling developers and marketers to build new app experiences. The first building block to tap into the new opportunities that wearables and connected objects are opening up is to create a service ecosystem. That’s the reason we haven't heard any product announcements yesterday.    

From a marketing standpoint, Apple introduced some new App Store features for developers, like app previews and app bundles. Marketers will be able to let users buy multiple games or apps at once and for a discounted price. App listings can now include feature video demonstrations to showcase the value of your app. The new “Explore” tab - including the trending topics and the vertical scrolling - will also facilitate app discovery.

However, in comparison with the great iOS differentiated innovations announced to create new app experiences (e.g., HealthKit, HomeKit, Swift, TouchID, and open APIs), Apple mostly implemented incremental changes to its App Store marketing. Most marketers sill complain about Apple’s black box and the lack of transparency about Apple App Store’s ranking algorithm and ratings and review systems.

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What To Learn From The Japanese Mobile-Centric Market

Thomas Husson

Japanese consumers are among the most mobile-savvy in the world: They were shopping, banking, and gaming on mobile phones long before consumers in other nations. The Japanese mobile ecosystem used to be unique; telecom operators specified to Japanese handset manufacturers the design of services to implement on multimedia phones. This is changing in an app world.

Indeed, the mobile market is opening up quickly to the smartphone app ecosystem. While Japan is a mobile-centric society, smartphone adoption has lagged behind other major markets. Many international brands launched their first mCommerce initiatives in Japan several years ago, but the market subsequently disappeared from the innovation radar due to the US-centric smartphone app ecosystem. But this is changing. It is time to take another look at Japan to uncover how the nation is combining innovation and scale as its market embraces smartphone apps.

More than a decade ago, I had the opportunity to work with NTT DoCoMo to introduce i-mode — the mobile multimedia service in France. At that time, Japan was clearly two to three years ahead of the rest of the mobile world. The Japanese market — and more specifically, the i-mode business model — is rumored to have inspired Steve Jobs to launch the Apple App Store. After that, Silicon Valley became the new source of innovation and inspiration for mobile marketers. Now that the app ecosystem has come full circle, marketers should again consider mobile marketing in Japan, benefiting from a more open ecosystem to distribute their apps and engage with Japanese customers. I recently spent a full week in Japan, and it is fascinating to see the relationship people have with mobile phones over there.

There are lots of lessons to learn from the likes of Rakuten, Line, Felica, Softbank, or NTT DoCoMo and from a mature ecosystem of mobile contactless and connective-tissue technologies.

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What Does Acxiom's $310M LiveRamp Bid Mean For Marketers

Susan Bidel

On May 14, Acxiom announced its intention to acquire LiveRamp, a "data onboarding service," to the tune of $310 million in cash. Several Forrester analysts (Fatemeh Khatibloo, Tina Moffett, Sri Sridharan, and I) cover these two firms, and what follows is our collective thinking on the impending acquisition after having been briefed by Acxiom's leadership on the matter.

  • The acquisition sets Acxiom up to displace traditional MSPs. LiveRamp has built integration relationships with four of the biggest managed service providers (MSPs): Epsilon, Equifax, Experian, and Merkle. Acxiom is claiming agnosticism, and it has told us that it is "open to many ways of proving neutrality, including contractual commitments, [and] third-party audits." The firm considers the acquisition "an evolution of Acxiom’s Audience Operating System (AOS), which was launched to connect the ecosystem of marketers, technology, and media more tightly together and make every part of that ecosystem work better." But when we project out a few years, we have a hard time seeing how marketers will justify a standalone customer relationship management (CRM) database when they could, for example, port their POS and order management system (OMS) data directly into AOS and use that as their "customer marketing platform-as-a-service."
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Messaging Apps Are Thriving In The Age of The Customer

Thomas Husson

By now, you've surely heard of the second-largest acquisition in tech history, with Facebook acquiring WhatsApp for $19 billion.

However, you may be less familiar with other messaging apps like LINE, KakaoTalk, KIK, Nimbuzz, SnapChat, Vibes, Whisper, and many others.

If you think messaging apps are just a free way to communicate, you’re missing their potential: They are Mobile’s Trojan horse, as explained by my colleague Julie Ask here.

Messaging apps are mushrooming.They illustrate perfectly the age of the customer, which Forrester defines as a new business era where your customers are now empowered through social, mobile, and other technologies giving them the power to disrupt your business. Why? Because they are mastering the four key market imperatives Forrester has identified as critical to differentiate in the age of the customer:

■  Transforming the customer experience over SMS and other messaging tools. Messaging apps offer differentiated and seamless experiences over SMS and other mobile communication tools. For example, they offer advanced group messaging functionalities, multimedia features, constant innovation, and ability to opt-in or follow brands at consumers’ convenience. They are now morphing into marketing platforms redefining social media.

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Introduce The Marketing RaDaR To China

Xiaofeng Wang

Marketers in China are becoming more aware of the effectiveness of their marketing spending. They will no longer blindly spend a lump sum on China Central Television’s ad auction, for example. Home appliance giant Haier Group recently announced that it will stop spending on traditional magazine ads and maintain paid editorials only.

As Chinese consumers increase the time they spend on new channels such as social and mobile, it's more important than ever for marketers in China to optimize all touchpoints to reach and make an impact on their target audiences, especially when it comes to the new challenge of multichannel and multiscreen orchestration.

My recent report Sharpen Your Mix In China With The Marketing RaDaR illustrates how the RaDaR framework (first introduced by my colleague Nate Elliott) can help marketers successfully prioritize resources across their entire marketing mix in China.

RaDaR refers to “reach and depth and relationship” — three types of channels. Smart marketers are beginning to embrace a four-stage customer life cycle, from discover, to explore, to buy, to engage, then back to discover, and different types of channels support different stages of the life cycle:

  • Reach channels support discovery. Chinese consumers use channels such as in-store promotions and online search to discover brands.
  • Depth channels support exploration and purchase. Chinese consumers use channels such as consumer review sites and friends’ recommendations to research products and services they want to buy.
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Facebook's Audience Network: What It Means For Mobile Ads

Jennifer Wise

Facebook, the social media giant that has already made a large dent in the mobile ad ecosystem, today showed it has no plans to stop the momentum: Welcome, Audience Network.

Before today, there were already several factors working in Facebook’s favor: its reach among avid social users, its engaged and captive audience, and its trove of affinity data, which my colleague Nate Elliott talks more about in his blog post here.

After its Audience Network announcement today, Facebook is breaking the application of its tools and its data out of its own silo, and this could benefit several players:

  • Other developers and publishers could make more money by offering Facebook data-infused mobile ads.
  • Advertisers can dip into Facebook’s rich affinity data to target their ads across other mobile properties.
  • And of course, Facebook itself just extended its potential revenue base and faces a new competitive set with the likes of Google AdMob and MIllennialMedia.
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Facebook Begins Building The Database Of Affinity

Nate Elliott

It’s been clear for a while now that the greatest value of social media to marketers won’t come from placing ads on social sites — it’ll come from using social data to improve the ads marketers place everywhere else. We call this idea the database of affinity, and we believe it could be the Holy Grail for more-effective brand marketing. For nearly a year, Google has helped marketers use the database of affinity to improve the targeting of their online display ads. And today Facebook has finally started to build the database of affinity that has always been its birthright, launching a mobile ad network.

This move is fantastic, if long overdue, news for marketers. It has the potential to improve the performance of all mobile advertising. And if Facebook grows its ad targeting business into other channels and works to better analyze and utilize its data (something it’s lagged at in the past), it could revolutionize brand advertising.

For more analysis on what this means to the mobile ad ecosystem, read my colleague Jenny Wise' take here.

Q&A With Amy Nelson-Bennett, CEO And President, Molton Brown Global

Luca Paderni

 

Just three weeks to go before our Forrester's Forum For Marketing Leaders in London kicks off on May 13-14. In addition to industry thought-leaders from William Hill PLC and Intesa Sanpaolo, I am excited we have been able to confirm Amy Nelson-Bennett, CEO and President of Molton Brown Global, the global luxury body & beauty brand based in London, as one of our keynote speakers.

Since joining Molton Brown, shortly after its purchase by the Kao Corporation, Amy has modernised the brand and business operations, particularly in the areas of eCommerce, eCRM, and other digital marketing programmes. She has also successfully leveraged resources across the Kao organisation to help accelerate Molton Brown’s growth outside of the UK home market, and more recently has been working with the other Kao brands to better leverage digital assets and talent within the Kao organisation in EMEA and the Americas.

In the run-up to the Forum, I caught up with Amy and asked her these questions to uncover some of her messages for the marketing leaders attending our London event. Do join us on May 13-14 to hear Amy's full story!

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Instagram Is The King Of Social Engagement

Nate Elliott

Recently, Forrester studied more than 3 million user interactions with more than 2,500 brand posts on seven social networks and confirmed what marketers have long suspected: People don’t engage with branded social content very often.

On six of the seven social networks, the brands we studied achieved an engagement rate of less than 0.1%. For every 1 million Facebook fans those brands had collected, each of their posts received only about 700 likes, comments, and shares. On Twitter, the ratio was about 300 interactions per 1 million followers.

But one social network absolutely blew the others away when it came to delivering engagement: Instagram. Our study found that top brands’ Instagram posts generated a per-follower engagement rate of 4.21%. That means Instagram delivered these brands 58 times more engagement per follower than Facebook, and 120 times more engagement per follower than Twitter.

Instagram offers brands 58 times more engagement per follower than Facebook

What does this higher engagement rate look like in practice? Last month, Red Bull posted a video of a unique snowboarding half-pipe on both Facebook and Instagram. A few days later, we noted that the brand’s 43 million Facebook fans had liked the video just 2,600 times (a 0.006% likes-per-fan rate), while its 1.2 million Instagram followers had liked the video more than 36,000 times (a 3% likes-per-follower rate).

Red Bull's Facebook post           Red Bull's Instagram post

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Q&A With Kristof Fahy, Chief Marketing Officer, William Hill PLC

Luca Paderni

William Hill PLC, one of the world's leading betting and gaming companies and trusted UK high-street brand, has recently undergone a significant strategy review. The strategic changes came in response to the fact that more and more of its customers want to engage with the company via digital and increasingly also via mobile platforms — which at Forrester we refer to as the mobile mind shift

In this new business context, William Hill now focuses on three main initiatives for expansion: 1) develop a wider product range, 2) encourage greater multichannel usage, and 3) increase internationalisation. To better understand how it is tackling these business priorities and, in particular, how the firm is driving multichannel usage by delivering visible value (and in context), we invited Kristof Fahy, William Hill’s Chief Marketing Officer to deliver a keynote presentation at Forrester's Forum For Marketing Leaders in London coming up on May 13-14.

In the run-up to the Forum, Kristof was kind enough to answer a few questions to provide a sneak preview to the content from his speech. I hope you enjoy his responses as much as I did, and I look forward to seeing many of you in London!

Q. You’ve led marketing efforts at a wide variety of companies, from big and established brands like Orange and BlackBerry to challengers like Yahoo. Are there key things that all brands—regardless of size and industry—should be doing today to stay relevant and top of mind in our hyper-connected, multi-channel world?

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