Archive for category Mobile Advertising
The iPhone, Blackberry, Droid and smartphones in general dominate the buzz in the mobile market, but only 21% of American wireless subscribers are using a smartphone as of the fourth quarter 2009 compared to 19% in Q3 2009 and 14% at the end of 2008. We are just at the beginning of a new wireless era where smartphones will become the standard device consumers will use to connect to friends, the internet and the world at large. The share of smartphones as a proportion of overall device sales has increased to 29% for phone purchasers in the last six months and 45% of respondents to a Nielsen survey indicated that their next device will be a smartphone. If we combine these intentional data points with falling prices and increasing capabilities of these devices along with a explosion of applications for devices, we are seeing the beginning of a groundswell. This increase will be so rapid, that by the end of 2011, Nielsen expects more smartphones in the U.S. market than feature phones.
The Smartphone User
Slightly more males than females are getting smartphones (53% versus 47%) which is what we would expect for technical early adopter products. In terms of demographics, Hispanic Americans and Asians are slightly more likely to have a smartphone than what their share of population would indicate, which is a trend we see in the adoption of other mobile data services. While smartphones started out in the business segment, two-third of today’s buyers of smartphones are personal users.
In the last six months, roughly 77% of new smartphone buyers remained loyal to their wireless operator, while 18% switched to a new provider to get their new smartphone with the remaining percentage made up of first-time smartphone buyers. Interestingly enough, the percentage of people who switched carriers and got a new smartphone is not higher than that of the average wireless subscriber.
This indicates that the portfolio of the wireless carriers in general is robust enough to prevent any wide-spread smartphone flight from one carrier to the other, with very few exceptions. The added bonus for wireless carriers is that smartphone owners are significantly more satisfied (81%) with their device than feature phone owners (66%).
Features, features, features
Smartphones show higher application usage than feature phones even at the basic built-in application level. During Nielsen’s Mobile Insights survey we asked the respondents about features they’ve used in the last 30 days. The good news for the smartphone market is that people are actually taking advantage of the device capabilities.
The percentage of people who use their phone for only voice communications drops from 14% among new feature phone owners to 3% of smartphone owners. The use of the built-in camera and video capability jumps by almost 20% for both categories, due to the generally better quality and user friendliness of the features. Smartphones also often have a better speaker which translates into more frequent usage from about half of feature phone owners to about two-thirds of smartphone owners. Not surprisingly the use of Wi-Fi increases 10-fold from 5% for feature phone owners to 50% for smartphone users to satisfy the need for fast downloads.
RealtyGo supports both QR Code real estate information retrievel and SMS/MMS Text Messaging.
Understanding the interplay between the wireline and wireless worlds is important as value shifts occur. You can’t have a blockbuster iPad2 launch without Wi-Fi. And 55% to 60% of the embedded home Wi-Fi base is coming through cable modems. Apple Inc.’s success eventually results in Comcast Corp.’s, Time Warner Cable Inc.’s, Verizon Communications Inc.’s FioS and even AT&T Inc.’s U-Verse’s success.
With the next generation of tablet and phone devices (Apple’s iPad2 and the HTC Corp. Thunderbolt, for example) comes the front facing camera. We wrote about this with the column “The iPhone without a contract” last Labor Day. Sprint Nextel Corp.’s HTC Evo 4G launched last year with a front-facing camera using the WiMAX network and QiK (now owned by Skype) as the pre-installed app. New hardware begets new software. And this new software is high BPS (bandwidth per second). The higher the BPS, the faster the app.
The next $100 billion of value in the telecommunications industry (inclusive of software) is going to be created by the fast app ecosystem. Combine secure cloud computing with gigabit Ethernet backhaul and dual-core processors and you have the makings of an entirely new industry. It’s not that Groupon brought millions of us daily deals – it’s that they now bring them to us in 1080p (or whatever form factor your device can support). I can now see next year’s holiday blockbuster toys in action at Amazon.com (or through their app), not still photos. And video communication, including a revamped Pandora + YouTube, is now connected to my television. Why do I have a V-Tech cordless phone (and a $40 per month bill)? Why do I have a premium digital video tier?
It’s an exciting world to dream about, and developments are coming very quickly, thanks to companies like Apple and Google Inc. The highest returns can only occur, however, when you expand the market from portable (Wi-Fi) to mobile devices. In car. On train. On bus. If you are moving, you need mobility, not portability. And mobility requires bandwidth that moves with you.
This is where the wireless carriers come in. They hold the keys to mobile fast apps. As much as the developer community wants to circumvent or ignore relationships with the wireless carriers, they cannot achieve a high common denominator (“fastest app”) without the ability to achieve consistent bandwidth speeds and consistently low latency. Said another way, those applications developers that invest in the network interfaces and carrier relationships will create differentiation (and value) faster than those who dumb performance down to the lowest levels. When technology moves quickly, value is created from those companies who can expand with the market, who can achieve the highest and best result instead of the lowest and least. The bandwidth disparity created by 2G/3G/4G and Wi-Fi networks operating simultaneously is too great.
The only way Sprint Nextel and T-Mobile USA Inc. (combined or separate) can grow 10 to 20 million net adds in the next three years is to partner with the fast applications developers. Multi-player Angry Birds in 3D with optional voice chat does not happen without network integration – the connections are real-time, not “push” and servers need to be very close to the network. Sprint Nextel and T-Mobile USA may need more growth than 10 to 20 million net adds over the next 3 years to remain relevant. Dropped calls be damned – what about dropped apps?
So we have a willing development community, at least two willing carriers (on top of Verizon Wireless and AT&T Mobility who will definitely not take this lying down), and capital waiting to earn disproportionate returns. Where do we get started? Three ideas:
1. Multi-player Angry Birds in 3D with optional voice chat takes applications to a new level. Maybe an “all green” AB on March 17?
2. Facebook (or their replacement) could reinvent video communications singlehandedly (and take advertising to a new level).
3. Cloud-based communications directories with caller identificaton (app free version includes a mini-advertisement delivered on every incoming call).
One of the biggest reasons for any directory is discovery. In the old days of White Pages, we discovered a street address and a phone number associated with a name. With the advent of fast apps, I may want to know if you have FaceTime and if you are available for a quick chat, even if you are not in my contact list. Where’s the FaceTime (or Skype or Fring or ooVoo or YouTube or Facebook) listing on my BlackBerry? It doesn’t exist. Then how do I discover that you have FaceTime (meaning an Apple device that has a front facing camera on a participating carrier that has optimized FaceTime for their 4G network)? We need a better discovery engine to make FaceTime or their competitor a more relevant communications application.
The directory needs to protect privacy. I need to be able to turn off applications from being used by some and make an entirely different set of applications available to others. The directory needs to be connected to individuals, not Exchange (which, as explained in the last paragraph, doesn’t have room for these listings anyway). Privacy is easiest with an independent source – friendly to but free from wireless carriers, handset manufacturers, and operating systems.
Finally, the directory needs to be free. Listed or unlisted, private, user-controlled and free. This is not to say that there aren’t charges for “end caps” (featured fast apps), or that larger corporate or association directories don’t pay some fees, or that we show a mini-message on every incoming call in exchange for a free app, but this is not the calling name data storage margins of the past. And, if it can bring in 10 to 20 million customers for Sprint Nextel and T-Mobile USA (together or separate), it’s worth the carrier effort.
Fast apps are the next $100 billion opportunity in the communications industry. A well executed fast apps strategy by T-Mobile USA and Sprint Nextel (combined or separate) can break the current duopoly (or Verizon Wireless can execute it on its own with LTE and cripple their competition). To make fast apps a reality, the discovery process needs to be radically simpler, privacy needs to be protected, and it needs to be free to the end user. We need an independent directory.
Here come the fast apps. Are you ready?
Jim Patterson is CEO and co-founder of Mobile Symmetry, a start-up created for carriers to solve the problems of an increasingly mobile-only society. Patterson was most recently President – Wholesale Services for Sprint and has a career that spans over eighteen years in telecom and technology. Patterson welcomes your firstname.lastname@example.org.
Unilever Names Coke’s Marc Mathieu as No. 2 Global Marketing Executive | Global News – RealtyGo_blog
Unilever has named former Coca-Cola Co. marketer Marc Mathieu as its No. 2 global marketing executive, reporting to Global Marketing and Communications Officer Keith Weed, rounding out a redesign of the global marketing team for the world’s second-biggest advertising spender.
Marc Mathieu is charged with helping Unilever double sales while reducing overall environmental impact. Green business practices are a necessity for the future. If your professional business is not currently participating in any Green technology in order to reduce and reinvent traditional business practices, please take some time and discover how you can make a difference. Even listing, promoting, and using Mobile real estate services from RealtyGo will help cut back on excessive print and ink waste, while promoting the delivery of information via the digital channel.
Mr. Mathieu, 51, whom Mr. Weed credits with helping turn around Coca-Cola by developing the “Coke Side of Life” branding platform and launching Coke Zero last decade as VP-global branding, will join Unilever April 1. He will oversee Unilever’s global corporate branding effort; marketing training, including the Unilever Marketing Academy; marketing services; agency relations; and return on marketing investment. VPs over those areas will report to him.
For the past three years has led Atlanta-based BeDo, a strategic marketing consultancy. BeDo focuses on sustainability issues and has had Johnson & Johnson, Danone, Coca-Cola, Levis and Club Med as clients. Among projects the firm has launched has been The Hoop, a micro-lending venture for fair-trade producers and brands.
That dovetails with Unilever’s own sustainability efforts and with Mr. Mathieu’s new charge in helping Unilever double sales while reducing overall environmental impact by 2020, said Mr. Weed, who also oversees the company’s sustainability efforts.
“I wanted to get some heavyweight marketers in my top team,” Mr. Weed said in an interview. “And the fact that we were able to get someone like him says a lot about the progress we’ve made and the momentum we’ve got and the progress we’re making in innovation in the marketing area.”
Mr. Mathieu is the last of five senior VPs Mr. Weed has appointed since taking his post last year. He joins Gavin Neath (sustainability), Sue Garrard (communications), Richard Davies (consumer and market insight) and Luis Di Como (global media), the latter having recently been named to succeed Laura Klauberg in that post. Three of the five came from within Unilever, but Ms. Garrard, previously with the U.K.’s Department for Work and Pensions, like Mr. Mathieu came from outside.
“I’ve got a balance between internal hires and external hires to bring diversity of thought,” Mr. Weed said, adding that he considered internal and external candidates for each of the posts.
Mr. Mathieu’s experience in branding and sustainability along with Unilever putting sustainability under the marketing organization is something Mr. Weed sees as part of a trend.
“Having sustainability led by an environmentalist in a small department by itself was never going to get the sort of traction we need in this world to get true innovation in the area,” he said.
Thanks for reading,