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,
The faster the network, the better your MobileURL’s operate | Sprint could deploy LTE nationwide by year-end 2013 | RealtyGo_blog
Should Sprint Nextel (NYSE:S) decide to deploy LTE as part of its Network Vision network modernization project, the company could have a live LTE network this year, with nationwide LTE coverage by year-end 2013, a senior Sprint executive said.
Speaking at a Morgan Stanley Technology, Media and Telecom conference Wednesday, Steve Elfman, Sprint’s president of network operations and wholesale, said that the company will not make a decision regarding LTE deployment until mid-year. He added that if Sprint does decide to deploy LTE it could turn it on quickly and have LTE devices by 2012. Elfman added that the reason the company will not make a decision until mid-year is because Sprint wants to establish and announce a strategy that is still being determined by the company and its partner Clearwire (NASDAQ:CLWR), which runs a mobile WiMAX network.
Elfman also discussed Network Vision, the $4 billion to $5 billion network modernization project that Sprint is undertaking over the next three to five years. Sprint currently runs an EV-DO network in the 1900 MHz PCS band, has a wholesale deal with Clearwire to use WiMAX in the 2.5 GHz band and owns an iDEN network in the 800 MHz band. Sprint has said it will begin phasing out the iDEN network in 2013.
Elfman reiterated that the company plans to enhance its CDMA coverage in the 800 MHz to improve in-building coverage. In addition, he said that Sprint will deploy a CDMA-based push to talk solution from Qualcomm (NASDAQ:QCOM) and will have new PTT devices by the third quarter of this year that will use the enhanced PTT solution.
Regarding Sprint’s relationship with Clearwire, Elfman said that Clearwire has been a good partner to Sprint and that the company is “in the middle of some positive negotiations with them.” The two companies have been locked in a dispute over wholesale revenue sharing, and Clearwire has said that resolving the dispute is key to moving forward on securing new funding. Clearwire expects to announce a decision on new funding sometime in the second quarter.
Over the past six months there has been lots of buzz about mobile payments. High-profile companies such as Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG) and Visa have all indicated they are exploring ways to make money from mobile payments. And at last month’s Mobile World Congress conference in Barcelona, Spain, the momentum around mobile commerce and Near Field Communications seemed to grow even stronger. In fact, several firms including Research in Motion (NASDAQ:RIMM), Deutsche Telekom and Orange all talked about how they were incorporating mobile commerce and/or Near Field Communications technology into their future plans. Some companies even went so far as to designate 2011 as the year for NFC payments.
We are under the impression that cellphone manufactures will be offering a secure mobile payment method – Near Field Communication
(NFC) short-range wireless technology and includes real-time anti-fraud alerts and other features designed to protect consumers from fraud.
Fine-tuning the business model for this nascent service is challenging. Wireless carriers, platform providers, device makers and financial institutions all want a piece of the revenue pie. It’s not surprising, considering that many analysts estimate that the market potential for these services is enormous. According to Portio Research, mobile payments volumes worldwide were $68.7 billion in 2009 and are forecast to reach $633.4 billon by year-end 2014. The biggest potential markets for mobile payments are Asia-Pacific, Europe and North America, Portio says.
But for mobile payments to reach the potential predicted by Portio, a lot of diverse players will have to fit together to make a compelling and lucrative solution. How that will happen is unclear. All we know for sure is that there is a lot of experimentation in the market today.
To help spur the market, the GSMA is heading up a NFC-related initiative with several of the world’s biggest operators including America Móvil, Axiata Group Berhad, Bharti, China Unicom, Deutsche Telekom, KT Corp., MTS, Orange, Qtel Group, SK Telecom, Softbank Mobile, Telecom Italia, Telefónica, Telekom Austria Group, Telenor and Vodafone. The operators have said they intend to launch commercial NFC services in select markets by 2012.
In the U.S., mobile payments have made headlines lately because of the new initiative Isis, which is a joint venture from Verizon Wireless (NYSE:VZ), AT&T Mobility (NYSE:T) and T-Mobile USA. The carriers plan to leverage Discover Financial Services’ network to process payments; Barclaycard U.S. will be the first issuer. Isis has inked deals with merchants but so far has not revealed the names of those merchants or more details about when it will launch.
Meanwhile, Sprint has decided to go it alone with its mobile wallet initiative, called Sprint Mobile Wallet. Unlike the Isis project, Sprint’s wallet will let customers make purchases using their existing Visa, MasterCard and Amazon accounts. Sprint is going to eventually hit the big one, you have to admit they always have their hat in the rink, and sooner or later they are going to hit one out of the park.
Clearly for mobile payments to become a success, merchants, financial services, operators and device makers need to come together to make a viable solution. Perhaps all this experimentation in the market will result in less fragmentation and more cohesiveness. We are exploring those issues and more in “Cashing in on Mobile Commerce,” a new eBook from FierceWireless. In this eBook, we take an in-depth look at the overall potential for the mobile commerce market, profile some successful mobile payment implementations and explore some of the latest initiatives in barcodes, mobile coupons and more.
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Mobile use is growing faster than all of Google’s internal predictions, with YouTube seeing 200 million mobile playbacks a day, CEO Eric Schmidt said in his keynote at the Internet Advertising Bureau’s Annual Leadership meeting keynote.As proof of mobile’s growth, Schmidt cited some statistics related to this year’s Super Bowl advertisers: The number of mobile searches for Chrysler, for instance, jumped 102 times during the game, compared with only 48 times for desktop searches. And the number of mobile searches for GoDaddy jumped 315 times, compared with 38 times on desktops.Schmidt, who spoke Sunday at the IAB event in Palm Springs, Calif., also said that 78% of smartphone owners use their phones while they shop. “This is the future and everyone will adapt,” Schmidt said. “Because people are fundamentally better off with a better and smarter and more empowered, if you will, customer.”Mobile growth is occurring at a quicker rate than anyone expected, Schmidt noted. “We look at the charts internally and it’s happening faster than all of our predictions,” Schmidt said.Schmidt, who will leave his post as Google CEO on April 4, used those stats to make a case for linking display advertising and mobile.“The technology has finally caught up with the promises we talked about for so long,” Schmidt said. He predicted that display advertising could hit $200 billion business, though he declined to say when that milestone would be reached. Display is currently a $17 billion business globally. Google’s share of that is about $2.5 billion a year.
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