Did Amazon's Kindle Fire cost Apple some holiday iPad sales? Only Amazon knows. However, reports coming in over the last days indicate that Kindle Fire sales outpaced most analysts' forecasts. What's more, the new tablets device is seeing ad impressions grow at an average double-digit daily rate since its launch in the U.S. market in November, a data point that could mean the imminent release of the Kindle Fire in Europe could do more than burn up iPad sales. It may mark a seismic shift in how brands and sellers approach marketing in the mobile channel.
A raft of recent developments supports the observation that this device is indeed a game-changer, starting with buoyant sales numbers that have exceeded everyone's expectations. Barclays analyst Anthony DiClemente (via All Things Digital) has upped his original estimate of 4.5 million units sold last quarter to 5.5 million. Piper Jaffray is convinced Amazon is on track to sell 10-12 million Kindle devices (Kindle and Kindle Fire), up from the initial estimate of 9 million units. Meanwhile, analyst Tavis McCourt at Morgan Keegan has downgraded his iPad sales forecasts for the quarter from 16 million units to 13 million. (Again, sales lost to Kindle Fire.)
This year we have witnessed a seismic shift in how brands and agencies wield the power of mobile to deliver effective advertising, engage with consumers every stage of their daily journey and —ultimately — achieve business objectives that go beyond brand promotion and awareness to encourage commerce and continued customer loyalty.
The drivers are many and the impact is tremendous. The rise (and rise) of mobile retail, the advance of smartphones and connected devices, and the heightened interest among companies across all verticals (retail, automotive, finance, pharmaceutical — the works!) make it imperative for us as an industry and ecosystem to ask (and answer!) some tough questions.
Who are the big-spenders in mobile advertising? In Q3 2011 the financial services sector jumped from third place in Q2 2011 to become the leading vertical in the U.S., ranked by mobile ad spend, followed by Entertainment, Retail & Restaurants, Telecoms and CPG (consumer packaged goods). Globally, finance placed number four.
This massive growth, with ad spend increasing over 356 percent year-over-year, confirms banks, insurance companies and credit card companies are aggressively using mobile to raise awareness of their products and services, generate leads, encourage app downloads and —significantly—engage more with people on their device(s) of choice. The vast majority (80 percent) of people accessing financial information or apps are smartphone owners, (more than double the general mobile population). Moreover, the mobile finance user is also 76 percent more likely than the general mobile user to own a tablet or e-reader device.
People are increasingly relying on mobile for assistance to make a wide variety of product and purchase decisions, a seismic shift in behavior that spells opportunity for brands across all industry verticals, including automotive, retail, travel, finance, entertainment, pharmaceuticals and telecoms.
But there's a catch. Marketers must develop solid advertising strategies that understand who their customers are, how they use their mobile devices and where campaigns can reach them at scale.
#FF amplifies the voices that matter most, and profiles Millennial Media, an independent mobile advertising and data company, that has consistently provided the industry with mobile intelligence and actionable insights.
The willingness of people to interact with brands on their mobile phones (and their growing reliance on mobile devices for shopping advice and assistance on the move) has jumpstarted a new phase in mobile marketing growth driven by retail brands and advertisers.
From department stores to computers & electronics retailers to luxury fashion brands, marketers are investing in mobile advertising to reach and influence people throughout the purchase funnel (awareness, engagement, consideration, conversion and loyalty).
In fact, Millennial Media, a leading independent mobile advertising and data company, reports that 'Retail' was the top vertical on the Millennial mobile advertising network both globally and in the U.S. What's more, spend by brands has skyrocketed, growing by a whopping 1300 percent for the period Q1 2010 to Q1 2011.
