Mobile phones have changed not only the way we live and communicate. They have also changed the way we think. Customers have experienced a mind shift: They expect any desired information or service to be available, on any appropriate device, in context, at their moment of need. Technologies packed in mobile devices enable people not only to instantly consume but also to create content and maintain greater control in their everyday lives.
Customers' behaviors are becoming as sophisticated as their devices. Mobile has become the new digital hub. According to our Technographics data, 47% of European online adults who own a mobile phone use mobile apps at least weekly. Forty-five percent browse the Internet at least weekly, and 38% search for information on mobile search engines, too. In the US, 50% of online adults who use a mobile phone use their devices to check sports, weather, or news at least weekly. Forty-five percent access social networks on their phones at least weekly, and 22% research physical products for purchase! This implies that you must have a mobile component for your digital strategy. But it goes beyond this, as mobile is bridging the offline and online worlds.
Yes, mobile is a hot topic. Reading the press or listening to conferences, you may be under the impression that marketers have embraced the mobile mind shift and are really integrating mobile into the marketing mix. A significant majority of marketers told us that their senior leadership team understands the importance of mobile.
Facebook now has 819 million mobile monthly active users. That’s a huge audience. That’s actually 71% of total active users.
Yesterday, Facebook reported they generated 41% of total ad revenues via mobile. That’s pretty impressive considering they generated nearly 0% end 2011 when they had already 432 million mobile monthly users. Since the launch of mobile ads in 2012, Facebook steadily increased the share of mobile in total ad revenues: it was 23% end 2012 and 30% in Q1 2013.
There is still a monetization gap in comparison to the share of their mobile audience, but that’s definitely impressive for a new product.
There are a couple of reasons for this sharp increase. Time spent on Facebook is meaningful. Facebook’s mobile ads integrate well in the natural flow of Facebook’s news feeds. They are quite visible and are increasingly successful at driving mobile app installs. According to our European Technographics Consumer Technology Online Survey, Q4 2012, 16% of online adult smartphone owners (ages 16-plus) who use apps report that they first learned about an app via social networking websites such as Facebook. No wonder why the likes of Fiksu and other app boosters spent a lot of money on Facebook mobile ads. Cost per click increased despite a lot more clicks and ads shown.
For this approach to be successful in the longer term, there are a couple of key questions to be answered:
More often than not, people refer to 2007 and the launch of the iPhone as the key milestone that changed forever the mobile industry. Despite an incredible device, Apple struggled the first few months because its business model relied on sharing revenues with telecom operators instead of letting them subsidize its smartphones. The key milestone was in fact July 2008 and the launch of the Apple App Store because it symbolized a new era: the shift from hardware to software in the mobile industry.
While Apple was not the first app marketplace, it is fair to say it created the App economy. 5 years and 50 billion downloads later, where do we stand?
App Stores: A Unique Opportunity To Engage Consumers Directly
Ask console gaming companies what they think of disruption created by app stores (now a generic term following the end of the “app store” name lawsuit between Apple and Amazon) and you’ll get a sense of what the app economy is. We’re scratching the surface of changes to come but clearly the app economy enables brands (including those who do not have a retail presence) to get insights on consumer behaviors to create new products and to distribute them at much lower cost. Numerous consumer app stores have flourished (more than 70 different Android-based app stores in China!) but few are really succeeding. Google Play has surpassed the Apple App Store when it comes to the sheer number of available apps and both have surpassed 50 billion downloads leaving competitors in the dust. However, volume does not matter so much any more. This is all about usage, personalization and recommendation.
Too many marketing leaders still lump tablets and smartphones into the same mobile bucket. That’s a mistake. Why? Because tablets are not primarily mobile devices. Instead, they are mostly used within the home. Marketing leaders must create a differentiated tablet experience or risk dissatisfying their best customers and missing opportunities to engage when customers discover and explore their products.
Here are the key takeaways from new research I conducted in the past few months:
Tablet marketing matters. Tablet marketing enables marketers to engage with influential customers who spend less time on PCs and print media. People use tablets differently from smartphones, requiring marketers to adapt their approach.
Marketers should use tablets to enhance discovery and depth in the digital home. Marketers will see the benefits of designing immersive tablet experiences for people discovering and researching their brands and products. They should use search marketing to drive better conversion rates and tablet commerce. And they should maximize TV ads by creating tablet extensions for multitaskers as well as creating new marketing experiences in the digital home.
Shift to contextual marketing. Most of us have only had mobile phones for, at most, 12 years. I have already explained here why we’re all mobile teens, figuring out our relationships with others and with brands. Unsurprisingly, marketers face challenges integrating mobile and tablet in the mix. It’s time to stop thinking about devices and instead shift to thinking about contextual marketing.
My colleague Reineke Reitsma recently published a blog on the limited but growing uptake of QR/2D barcodes.
Let’s face reality. Usage is low and marketing execution is poor to date, with too many campaigns that lack a clear consumer benefit and that provide a bad user experience by not offering mobile-optimized content. Today, mobile bar codes are an interesting tactic to engage with early adopters.
However, moving forward, we expect QR codes to gain traction and to be increasingly mixed with other technologies (including radio technologies like NFC) to provide extended product packaging solutions. Bar codes do not have to be just cold, emotionless, black-and-white squares. Solutions now exist to personalize QR codes’ designs and seamlessly mix them into a logo or band chart – even merging QR codes and NFC tags, as in the example below from mobiLead solutions.
The 2D bar code market will follow the same path as the 1D bar code market: fulfilling the need for certified and scalable platforms dealing with millions of standard code generation. Mobile bar code vendors will have to move into scalable mobile engagement platforms, progressively integrating multiple access technologies, such as Near Field Communications (NFC) tags, image recognition, or audio tags such as Shazam, and offering deep analytical tools. Beyond the emerging role of 2D bar codes in sales, we expect a growing number of brands — especially in the nutrition and health space — to systematize the use of bar codes on product packaging. Consumers want access to more product information, and brands can leverage mobile technologies to create a consumer relationship.
AppGratis is a French app promotion and discovery platform startup that was recently ejected from the App Store on the grounds that it violated Apple’s developer T&Cs. Back in September 2012, Apple tweaked its developer guidelines, adding a clause that states: “Apps that display Apps other than your own for purchase or promotion in a manner similar to or confusing with the App Store will be rejected.”
Simon Dawlat, the CEO of AppGratis, shares his vision in great detail here and explains why he thinks the ban is totally unfair. Even France’s digital industry minister, Fleur Pellerin, has spoken up in support of AppGratis, describing Apple’s actions as ”extremely brutal, unilateral, and without explanation,” and calling on Cupertino to “behave ethically.“ Natasha Lomas at TechCrunch fairly and exhaustively summarizes the whole story here.
Without going into the legal details here, one may argue that there is a blurring of the line between app discovery and app promotion. I personally viewed AppGratis as a traffic booster based on curated app discovery experiences. I think it definitely helped gain some initial visibility in app stores, but I think app developers and publishers still needed to measure the customer lifetime value and make sure their audiences would stay engaged.
Anyway, the AppGratis controversy highlights the growing dependency from publishers and developers to Apple and Google in the app economy.
To borrow from McCann Truth Central, most of us have owned mobile devices (not to mention smartphones) for, on average, 12 years — and we’re still figuring out mobile phone behaviors and the impact of mobile on our relationships. We have distinct mobile personalities.
This means we’re all mobile teens, trying to envision our futures and figuring out our relationships with others and with brands. If mobile marketing is entering the teenage years, then needless to say, tablet marketing is in its infancy.
To draw the analogy a step further, let’s consider marketers as parents. What does this mean? It implies that marketing leaders should help their kids grow and develop, play to their strengths, accept their differences, and reinforce their identities without forcing them to become what they are not. It means that the future will be full of surprises, with unknown territories and new use cases to come for not only smartphones and tablets but also reinvented laptops and personal computers. A lot of the attention will be paid to the new baby (the tablet), certainly creating some conflicts with the older sibling (the smartphone), which is particularly keen to become independent despite its relative immaturity.
After experiencing some of the most exhausting days in the life of a “mobile” analyst, I am back from Barcelona. I shared some thoughts before the event started (see here), but here are my key takeaways from the 2013 event. I saw:
Fewer high-end smartphones. Gone are the days when handset makers announced their flagship devices in Barcelona. In a communication ripped from Apple’s playbook, Samsung announced a press conference for the likely launch of the Galaxy S4 on March 14. Among the most interesting devices from a price/technology standpoint were the Huawei Ascend P2 and some of the LG handsets.
More and more “phablets” and tablets. In the “phablet” category — I prefer to call them supersized smartphones — a special mention goes to the LG Optimus Pro. Numerous tablets were announced, including the Sony XPeria Tablet Z for $499, three Android Lenovo tablets, and the HP Slate 7 — an Android tablet for business users at only $169. These types of announcements are new for MWC, highlighting the evolution of personal computing and the growing importance of the screen size.
It’s that time of the year: the pilgrimage to the Mobile Mecca, Mobile World Congress (MWC), in Barcelona. This is my 10th pilgrimage in a row and, needless to say, the event has changed tremendously over the past few years – from 3GSM in Cannes to the new venue in Barcelona this year. While CTIA is still very US-centric and CES is still a lot about TVs, MWC is really the only global mobile event with a strong presence of operators and handset manufacturers from all over the world. Every year the show becomes not only more global, but also more open to new categories of players — such as advertisers and developers — willing to make the most of mobile technologies, and more open to connected devices that go far beyond the traditional definition of a mobile phone. Markets are colliding and mobile innovation is at the center of these upheavals. MWC used to be a telecom show focusing mainly on mobile technologies, but the event is now bringing together people from every industry.
In the light of today’s first announcements, here is my take on how to put in perspective the announcements to be made at MWC 2013 in the coming days:
If you still believe that tablets are merely a fad or just a way to engage more affluent early adopters in their 30s or 40s, you need to change your mind — now.
According to our latest Technographics® data, European tablet ownership is highest among 18- to 24-year-old online users — 25% of them own one! 2012 saw a surge in the popularity of tablets among this age group. Why? As with any technology that’s reaching critical mass, the profile of its adopters evolves over time — and it will continue to do so.
With double-digit growth in tablet uptake across Western Europe in 2012, about one in seven online Europeans now owns a tablet. And with further double-digit growth expected in the years ahead, tablets are changing the consumer technology landscape. According to the Forrester Research World Tablet Adoption Forecast, 2012 To 2017 (Global), 55% of European online consumers will own a tablet by the end of 2017.
Tablet owners are not precious about their devices: Of those that have a spouse/partner, 63% share their tablet with them; one-third of parents share their tablet with their children. This makes tablets a far more social device than smartphones, which are much more personal and intimate.