So, why is indoor navigation enabled by micro-sensor wireless networks moving up the agenda at Sprint (and elsewhere across the emerging business ecosystem)? According to Phyllis, the drivers are the services (and benefits) they deliver us and the companies that want to connect with us.

Micro-location marketing

As consumers, we can look forward to more personal and accurate navigation services that don’t just lead us to the entrance of a 30-acre mega shopping mall, for example. Instead, these advanced services will be able to guide us through the mall to the shop or doctor’s office we seek.  In addition to significantly cutting the time we spend looking for (and not finding) businesses we want, these services will help us plan our overall daily routines better.

At the other end of the spectrum, brands and retailers also stand to gain from knowing more about our mobility patterns. One scenario these sensor networks can enable: Brands could deliver us a coupon for milk exactly when we are in the dairy products aisle and seriously considering a purchase.

However, Phyllis reminds us it’s not just about offering consumers the right discount at the right time/place. It’s also about delivering enhanced customer service. Stores, she says, will be able to interact directly – and more effectively – with customers because their mobile phone is now “a mobile information desk.” People can ask questions, query about items and better navigate the space nearby. The exchange feeds into CRM systems and programs to potentially boost customer loyalty.

Population movement

Phyllis tells us that Sprint is also eying opportunities in the healthcare and public safety sectors. Knowing where crowd build-up occurs (via a finer-grain sensor network) can help security officials allocate resources to the right location, for example. The same network data can help save lives. As Phyllis puts it: “In the case of emergencies, you want to know where the first responders are, and you want to be able to provide first responders with the ability to go directly to a trouble spot and save the time of trying to figure out where in a seven-storey building someone might be located.”

In the healthcare sector Sprint is currently working on a project focussed on detecting understanding personal mobility patterns. People who experience psychotic or depressed episodes, for example, typically develop erratic or compressed mobility patterns. “We’re looking at how people could opt in to a service that would monitor them and alert a caregiver when that person’s mobility patterns change,” Phyllis explains. “We are just starting to push the boundaries on what’s possible out there.”

Major micro-navigation opportunities

Why the heightened interest in micro-navigation and micro-sensor networks? In Phyllis’ view, it’s a logical next step in location services. Macro-navigation apps and solutions (such as Google Maps and MapQuest) have done a brilliant job of getting us to our final destinations. Now companies are lining up to claim their turf in a business ecosystem that exists to navigate us directly to the door step of our final destination, delivering us advice, assistance, information, perks and coupons every step of the way.

Sensing a business opportunity, companies, app developers and advertisers are looking to extend their reach directly inside buildings (businesses, malls, hospitals, schools). However, to make it all work there needs to be a fine-grain sensor network.

We aren’t there yet, but Phyllis discusses the progress and models that will define this new market. allowing the delivery of real-time, spatial, temporal services that can be used by business and – ultimately – for social good.

My take:

Sure, indoor navigation paves the way for effective proximity marketing. But don’t just think about spatial temporal campaigns that tell you want is on offer at the aisle level in a store. Phyllis outlines exciting opportunities around public safety, emergency response and personal mobile-enabled healthcare. What are the technology hurdles and where are the growth opportunities? You can get the inside track on this by listening to the interview.

***

Editor’s note: Phyllis is also speaking this week at LocNav USA (San Diego), a mega-event that brings together the well-established Navigation USA Conference (now in its 7th year) with the highly successful Location Business Summit. MobileGroove is proud to be a media partner and has produced and posted this podcast exclusively for Helen Raff and Naomi Hands over at TheWhereBusiness (you rock!), where the organizers have launched a microsite to showcase this audio interview and cement our future collaboration. My personal thanks also to Phyllis for the invigorating interview (!), and all the great exchanges since we connected at MCN so many years ago

If you missed LocNav this week, don’t miss your chance to catch the show when in comes to Europe (Amsterdam, May 2012).

LISTEN TO THE PODCAST With PHYLLIS REUTHER [15:20]

During the same week that SMS officially turned 18, we read a provocative post suggesting that SMS may not be around to celebrate its 19th year thanks to Apple’s newly-introduced iMessage.

Scheduled to debut this fall, iMessage (available in iOS 5) brings the functionality of iPhone messaging to all iOS devices―iPhone, iPad and iPod touch. Built into the Messages app, iMessage allows users to easily send text messages, photos, videos or contact information to a person or a group on other iOS 5 devices over Wi-Fi or 3G. In addition, iMessages are automatically pushed to all iOS 5 devices a consumer owns, making it easy to maintain one conversation across your iPhone, iPad and iPod touch.

Of course, instant messaging over a mobile device is not new. BlackBerry’s Messenger, which allows all Blackberry users to chat among themselves without middlemen or mobile operators, has been around for years and counts some 45 million users worldwide.

Apple took the wraps off its plans for iMessage on Monday. Shortly after that, MG Siegler over at Techcruch claimed that iMessage will spell the end of SMS.

Siegler writes: “As one of the core new features highlighted today in iOS 5, iMessages has one purpose: to kill SMS.” (He defines SMS as “traditional carrier-controlled text messages.”) How will this happen? Siegler has the answer. “iMessages will do this by replacing SMS with a service that Apple is in control of across all of their iOS devices. And here’s the real death blow: iMessages will be completely free.”

Siegler is ecstatic as he outlines the scenarios that will allow Apple to change the game. “Sure, you can argue that iMessages is limited due to the iOS requirement. But as Apple announced today, there are over 200 million iOS devices out there now. That’s a lot. Like Blackberry Messenger before it, Apple now has the strength to create their own device-to-device messaging application. And that’s exactly what they’ve done. And considering what a colossal rip-off SMS is, I can’t help but love this move. It’s exactly what I’ve been waiting for.”

How I See It: There are many reasons why Siegler may have written this piece. He may have thought it would be good link bait (after all, I fell for it). Or he may have wanted to spark debate and drive comments. (There were 72 comments just three hours after the piece posted, as well as over 900 tweets.) Or maybe his views were colored by the fact that he thinks like a tech reporter, not a typical mobile subscriber who uses text messaging daily (comScore reports that over 70 percent of the more than 300 million mobile users in the U.S. use SMS once a day). No matter Siegler’s views or motivations, iMessage simply won’t kill SMS because Apple’s approach is not open. Text messaging allows virtually anyone anywhere on the planet to use their phone (any phone) to send and receive text messages. Apple is keeping its service closed. You can only message if you have an iOS device and the person you are reaching out to is an Apple consumer. If not, no go. It’s an important message Siegler fails to get.

* * *

eMarketer is a go-to source and analyst Noah Elkin is one of eMarketer’s best. During a webinar I attended this week (Mobile, Social & Geolocation—Key Trends for Marketers), Elkin cut through the hype around location-based services. In his most memorable moment he said: “Marketers should be more interested in checkout than check-in.”

Among other useful facts I gleaned from the webinar:

• 68 percent are happy with their browsing experience on a tablet, while 42 percent of smartphone users are pleased.
• Smartphone owners use social products and services twice as much on mobile as “feature phone” owners.
• 4 percent of worldwide Internet traffic is via mobile, double over year ago.

How I See It: Noah’s webinar was thought-provoking and worthwhile. But I differ with his observation that mobility is no longer about communication. Elkin told us to “Forget the post-PC era; we’re in post-mobile era.” Noah was referring to the adoption of tablets, a development he said resulted in the “irrelevance of voice.” It made for a tweetable soundbite, but it’s simply not the case. As I (and Peggy) have pointed out many times on MobileGroove, mobility is about wireless devices and what we can do with them. If anything, we’re entering a new phase in the evolution of communication (and voice is a big part of that). The rise of voice-activated search and services indicate speaking on a phone is an activity that is not disappearing any time soon. In a way, it’s very similar to text messaging, an activity that is ingrained in our collective behavior and synonymous with mobility.

* * *

New York is the setting for two major conferences sure to produce interesting debate and continue the discussion about the real nature of wireless.

The Mobile Marketing Association is holding its largest industry show of the year, bringing some 700 professionals (brands, marketers, agencies, vendors, operators) to Manhattan for workshops followed by two days of presentations and panels.

Among the highlights: The Tribune Company will speak on the future of publishing  in a speech aptly titled: Embracing the Changing Face of Publishing and Consumer Engagement — Don’t Get Left Behind. A discussion titled Evolution of LBS and Hyper-Local Marketing: from Advertising to Commerce will shed light on the future of proximity marketing and commerce. And a talk involving Google (called 360-Degree View: What We Can Learn from Mobile Consumer Behavior) is sure to be well received and reported.

Uptown on Wednesday and Thursday, Jeff Pulver’s 140 Characters Conference will attract over 1,000 attendees, living up to its reputation as “the largest worldwide gathering of people interested in the effects of the real-time Internet on both business and ‘me – the people’.”

And the appeal of this event is truly global. Last year, more than 77,000 watched a stream of the event. This year’s show again will be available for live viewing here – http://www.ustream.tv/channel/nyc2011

I’m honored to be part of Pulver’s landmark event, where I will discuss new research into how consumers use their mobile devices during their shopping experiences. These insights are based on findings I will officially release during the event detailing precisely how consumers use their mobile devices to influence decisions at the point of sale.  Included will be data on whether (and how much) people use  Twitter, Facebook and text messaging to share their shopping experience with peers. In addition, I will talk to whether mobile users post more positive or negative experiences to their social networks. And I’ll also examine the ability of these posts to influence the people who read them. At the other end of the spectrum, I’ll look whether brands respond – and whether consumers want brands to respond more often.

My session is scheduled for approximately 4:30 p.m. EST on Thursday.

How I See It: These are key industry events that you can/should join and follow. There will be no live stream of the MMA event, but you can count on extensive coverage on Twitter. You can watch a stream of Pulver’s event, or follow it on Twitter. (The hashtag for Pulver’s show is #140conf.) Both shows are certain to provide valuable insights and new connections.

About Jeff:

A career author and sought-after speaker, Jeff Hasen builds, strengthens and protects brands. Companies benefiting from his talents have landed on Wired’s list of most innovative entities on Earth and been named pioneers and the early leader in the burgeoning mobile marketing category. Jeff co-created the certification program for the Mobile Marketing Association (MMA). He is one of only two individuals certified by the MMA to train professionals and students on mobile marketing definitions, techniques and benefits. At Hipcricket, he conceived and led the execution of an accelerated rebranding effort in advance of the mobile marketing software and services company being named “the early leader in the mobile marketing space in the U.S.” by Frost and Sullivan. Hipcricket also won consecutive annual pioneer awards from CTIA — The Wireless Association. Follow Jeff on Twitter (@jeffhasen).

Social and mobile

This is just one of the topics heading the agenda at Navigation Strategies USA, a two day conference organized by the Wherebusiness (January 25-26, San Jose). MSearchGroove is proud to be a media sponsor of the event and bring you this event preview looking at the hot issues affecting the navigation ecosystem.

Open source mapping & AOL

Top of the list is open source. As more apps come online – specifically, automotive apps — there is a greater need for quality navigational data. That is where  community-sourced – or open source – mapping can deliver key advantages to the LBS industry. And then there is the business that can be made when you connect hyperlocal mapping data (including location and information about local businesses) with mobile marketing and advertising.

AOL has its eye on the prize, which is why MapQuest (a wholly owned subsidiary of AOL) has sharpened on open source (OpenStreetMap – OMS).

Its goal is to become the first large mapping company to embrace open-source mapping at scale.

To this end AOL MapQuest has struck out in new directions — revamping its UI, spearheading an  aggressive expansion of Patch, the growing hyper-local news and information platform AOL acquired in 2009.

As a result OMS powers the maps behind Patch and allows people to get involved in the process, and include hiking trails, parks and bike paths to improve the overall experience (and quality of the navigation data).

Interview with Randy Meech

Clearly, AOL isn’t the only company in the space – but it is one with the clearest objectives.

I caught up with Randy Meech, AOL Head of Engineering, Local & Mapping, to discuss the value of open source, the role of mobile and get an update on the $1 million fund AOL launched in July to support the growth of open-source mapping. The fund supports projects in specific communities to help expand and enhance the geographic data available to developers, designers and other users. It’s part of AOL’s commitment to open-source technology – and Randy tells me it’s also the source of competitive advantage in a navigation and LBS space where the data is – literally – everything.

Involvement & motivation

Empowering people to participate in the creation of their own maps (and local information) is more than an ideal; it’s an ideal business model. As Randy points out: “It[is] very clear that if we can get those tools right and make it easy for people to go in and edit their local data, it’s going to be much more helpful for everything around mapping, in particular navigation.” But it’s not just about mapping, Randy believes that being a leader in supporting open source “definitely helps to get the best talent.”

Regional differences & Amazing Waze

There are distinct differences in the data and the quality between the regions. The U.K. and Germany have done well, harnessing eager communities to fill in the blanks in their local maps. “The ability to map out your town when there’s nothing there — that’s very motivational and probably helped build the community there.” The challenge in the U.S., on the other hand, is tackling the “sheer size of the geography.”

Granted, mapping can be a monumental task. But the combination of social and mobile can pay huge dividends.

A company that provides a blueprint is Waze, a company that taps into drivers to deliver real-time traffic information and maps. Randy recently saw a demo in Tel Aviv and was notably impressed. “They’ve really hit critical mass of users and that is just a fantastic experience so I expect to see a lot more stuff like that in terms of social map navigation and mobile.”

(Ditto for me. I interviewed Waze recently and concluded that the company, which harnesses our personal mobility and our position as nodes in a larger network, delivers tangible benefits combined with a super-cool user experience.)

Randy tells me we can be sure that 2011 will be the year of social and mobile.

In fact, we can expect some interesting launches from AOL that harness the power of communities. As Randy explained: “I don’t want to go too much into specifics but for people to be able — in an open source shareable way — to give data about businesses in their area is definitely going to be a big area.”

Top of the list is the intersection of social and mobile, which will create new business models and opportunities. “The data that you can leverage when people are using your navigation apps in order to make their routing more powerful for them and more useful is a definitely a big trend.”

To learn the other top trends and Randy’s views on social navigation, listen to the podcast here. [12:31]

Editor’s Note: Randy will be giving the keynote at Navigation Strategies USA. You can still register to hear authorities weigh in on hot topics — including the importance of open source and why it works for the LBS and navigation industries. MSearchGroove is proud to be a media sponsor of this conference — and all conferences — organized by the Wherebusiness.

Next in the series is Enterprise Strategies for Location Intelligence USA 2011 taking place on March 30-31 in  Chicago, so mark your calendars!

A review of recent data points confirms that holiday shopping has brought a new activity to the masses.

PayPal saw mobile shopping jump by nearly 310 percent  on Black Friday. Overall, PayPal reported mobile payment volume increased by approximately 27 percent, compared to Black Friday in 2009. Meanwhile, barcode giant Scanbuy says it saw about 30 times more scans last weekend than it did a year ago.

And it’s not just about buying real stuff using digital means. Zong, which powers mobile payments for virtual goods, says sales were up a whopping 117 percent year-over-year on Cyber Monday.

HOW I SEE IT: While mobile shopping (and related activities) hit record levels this year, 2010 is nothing compared to what we’ll see in 2011. Retail has arrived – and it’s safe to say that marketers who planned, integrated and provided relevance and value are going to be the big winners. Those who failed to support what people really do with their phones (research purchases, make payments, compare prices, scan barcodes) might not be around next year to make the same mistakes. As for my own mobile shopping, I bought a  Virgin Mobile Mifi personal hotspot device on Black Friday in a brick-and-mortar Radio Shack AFTER checking prices and availability on my iPhone.

* * *

Mobile and social have been traveling on separate paths until now. But 2011 could be the year we see the two converge.

Sure, mobile subscribers worldwide use their devices to access and post to social media properties – 200 million use Facebook mobile, for instance – but brands and marketing agencies continue to put social and mobile in two separate silos. This approach is patently false (so are all siloed approaches, by the way).

And let’s not forget the potential and positive impact of mobile and social (and their impending convergence) on Customer Relationship Management (CRM).

Interestingly, AT&T has revealed it is monitoring Twitter to become a better mobile company. According to ReadWriteWeb, “those (at AT&T) monitoring the system then uses the time-stamped tweets and locations and compares the data to customer service calls. Twitter trends can even indicate service problems faster and more efficiently than customer complaint logs, which take longer to log and analyze.”

HOW I SEE IT:  AT&T is being smart here (words that haven’t often been in the same sentence). While monitoring Twitter doesn’t make for a better service, the strategy shows a sharp appreciation of the importance of social in – well – everything. In my view, AT&T deserves some credit for its efforts to monitor outages through customer tweets. Connect the dots, and this could lead to improved customer experiences . Or perhaps this is a publicity stunt that will do nothing other than temporarily put AT&T in a good light…

* * *

As we wait for mobile and local to come together and impact user behavior on a large scale, news from travel deal website Priceline tells us that the waiting could be over soon as more people use mobile to plan and book travel.

According to Advertising Age, Priceline found that 35 percent of its customers were within one mile of the hotel at the time of booking. What’s more, Priceline found that more than 80 percent of Priceline mobile app customers booked hotel rooms within one day of arrival, compared with 45 percent name-your-own-price customers online. Almost 60 percent of customers on Priceline’s mobile app were within 20 miles of the hotel at the time of booking.

Gerard Insall, Avis’ senior VP-chief information officer, was quoted as saying that the mobile traveler is going to be the more frequent traveler. “But over time,” he says, “everyone who travels — whether it’s once or 10 times per year — is going to be using mobile.”

HOW I SEE IT: This article has picked up on a mobile megatrend. The most compelling part of the article was Google’s description of the mobile traveler as an “incremental” consumer. As a Google executive put it: “What we’re seeing [in mobile] is a different consumer….What they’re booking is actually different than what they’re booking online.” Proof once more that mobile is different. People do different things (and book differently). Indeed, mobile provides unmatched value and mobile subscribers will react positively to information that is local and relevant.

* * *
A career author and sought-after speaker, Jeff Hasen builds, strengthens and protects brands. Companies benefiting from his talents have landed on Wired’s list of most innovative entities on Earth and been named pioneers and the early leader in the burgeoning mobile marketing category. Jeff co-created the certification program for the Mobile Marketing Association (MMA). He is one of only two individuals certified by the MMA to train professionals and students on mobile marketing definitions, techniques and benefits. At Hipcricket, he conceived and led the execution of an accelerated rebranding effort in advance of the mobile marketing software and services company being named “the early leader in the mobile marketing space in the U.S.” by Frost and Sullivan. Hipcricket also won consecutive annual pioneer awards from CTIA — The Wireless Association. Follow Jeff on Twitter (@jeffhasen).

Rather than choosing a me-too model that serves up ads based on bid-for-placement, AdXplore — a privately-held company headquartered in Santa Cruz, California — has burst on the scene in August with a pull model that allows people to request and receive the advertising they want when they want it.

In practice, AdXPlore’s approach (and own IP in the form of “mobile advertising search engines”) lets people look for offers and establishments nearby. People download the mobile search app and conduct keyword searches as they would with Google or Bing. (To date AdXplore reports downloads of the Android app outpace those of iPhone. AdXplore is also gearing up to release an app for the Blackberry platform.)

The user experience is nothing new, but the results they receive are game-changing. This is because AdXPlore has indexed local-focused advertising, helping people search for what they want to buy – when they want to buy it. (People can also choose to search for shops that are aligned with their values, such as shops that offer organic foods, establishments run by veterans or businesses owned by single moms – and so on.)

Pull advertising

In fact, it was this hyper-local aspect of AdXplore’s business that convinced me to reach out to Steve Russ, AdXPlore CEO and Founder, in the first place. He has purposely focused AdXplore on indexing (thus exposing) small and medium-size establishments (mom-and-pop shops, diners, the works) in the search results.

As Steve puts it: “The bid-for-placement model that tips the scales in favor of big-spender chains and brands doesn’t have a chance here.” Search results (indexed advertising) are ordered according to their distance from the searcher – nothing else.

In his view the days for push advertising are numbered. “We think people are ignoring push-ads on their phones.” What’s more, Steve is convinced the time is right for search services and results that are “more honest.” As he puts it: “If you push an ad to the top of the search results that is half a mile away when the best and closest lunch special is only 100 yards away, you’re violating trust.”

I have always said that horizontal and vertical search engines in mobile (and online, for that matter) rely on link and text-based computations, an approach that tends to promote search-engine-optimized sites over the truly optimal ones. It’s great to see a new approach that can potentially level the playing field, and promote local businesses in local search results.

Unique sales force

How does Steve ensure that truly local businesses are front and center in the AdXplore search results?

His company is building its own sales force to sell to the local shops on the spot. In the last months Steve has stepped up recruitment of Independent Sales Representatives (ISRs), training students, Millennials and people between jobs to work directly with local business owners to create mobile ads and strategies. He expects to have over 40 ISRs by the end of the year, a total he wants to grow to 1,000 in 2011 and almost 40,000 in 2012.

This level of growth is well within reach since the AdXplore revenue model favors the ISRs, giving them 60 percent of what they sell.

To make selling a no-brainer for everyone involved, AdXplore supports ISRs with a smartphone app that has been designed from the ground up to allow ISRs to do everything on-site. They can use their iPhones to sign up businesses, fill in forms and set up mobile websites, coupons and special offers.

As Steve puts it: “Having an app on a phone means that reps can carry their business around in their pocket. There’s no schedule, there’s no hours, there’s no performance requirement. You have everything you need and – if you’re in a restaurant and the food is good – you can pull out your phone and pitch to the owner on the premises.” The ISR can also use the app to take pictures and create elements that result in a mobile-optimized business profiles and ad landing pages for the business that are keyword searchable.

The ad form consists of four basic components: a category (which can be anything that a searcher would look for including a coupon, a sale, a special offer, or even a job listing); a headline (communicating the core of the offer or ad); an image; and an “about” that conveys what the ad offers. The ads can also include rich-media, including web pages, YouTube videos and basically any content form or format that has an embed code. “Businesses don’t need a website; all they need is a clear and compelling advertisement that shows what they offer,” Steve says.

Revenue model

How does AdXplore (and ISRs) make money?

Businesses are charged a one-time setup fee of $100, of which 80 percent is paid out (via PayPal) to the ISR. Businesses are also charged a one-time setup fee of $50 for each ad created by the ISR. (Businesses have the option to create a variety of ads to promote specials (Happy-Hour, lunch menus, etc.), sales, discounts, coupons – and so on.)

The business also funds a click-through account with $100, which is debited every time a user clicks on one of their ads. The click-through rate is based on ad density in the surrounding area, not on a bid-for-placement model. Ads are returned to the user in distance order because all businesses in the vicinity are paying the same for placement.

How does the system detect and thereby prevent click fraud? AdXplore has developed a proprietary method for tracking multiple clicks to circumvent multiple-click fraud. It effectively maintains a list on the device of all the ads the user has clicked on during a session, so a business will only get charged once.

Do the math, and the total cost to the business to place their first ad on mobile phones is $250 – included in that is $100 for the first 1,000 click-throughs to their ad. There are no subscription fees or additional charges. ISRs get 60 percent of the setup fees and 10 percent of the click-through charges as residual income for the life of the business. As a result, for every business the ISR sets up, AdXplore pays out $90 to ISRs.

“The incentive here for the sales agent is to keep track of the ads and the performance of those ads,” Steve says. “Any time a client makes a change to either their profile or the ad, the sales agent is notified and any time the sales agent makes a change, the client is notified, so that they kind of keep track of each other.”

This also encourages the two parties to pursue a long-term relationship since there is no monetary advantage for businesses to by-pass the ISRs and set up their own ads. “The sales agent stays in contact with the client and can upsell to other ads and offers. For example, the agent can say ‘OK, we’ve been doing this for a month, and you’re getting really good results on your ads’ and suggest the client introduce special offers for the weekend.”

Stakeholder interest

Another factor that could play in Steve’s favor is the interest of local businesses in seeing the service become a success.

In a nutshell, the chain stores and mega-hypermarkets that are transforming the retail and service industries in the U.S. (and elsewhere) have “enormous advertising budgets that mom-and-pop shops can’t compete with.” Steve wants to “turn the whole model on its head” to give local businesses a competative advantage over the out-of-town chains.

To this end Steve is borrowing a page from the business plan of FourSquare and other similar check-in services by issuing stickers [“Find our specials and more on AdXplore”] to local businesses, so they can show they are listed in AdXplore – and are proud of it. As a result, local shops become stakeholders and mobile advertising evangelists. And – if AdXplore can go viral – it will be a force to deal with indeed.

AdXplore also offers non-profits free advertising, allowing these worthwhile organizations to communicate their events, bake sales and other functions for a good cause.

Large chains and brands are also showing interest, but Steve has special plans for their ad spend. “We will charge these companies and brands a kind of surcharge for being out-of-town businesses.” AdXplore will then pour this money back into the community in the form of public service grants and charity contributions, for example.

My take:

Advertising is content – but no other company is indexing it. Search services deliver business listings, not their ads. AdXplore is the first ad network to step up to the plate with a service that potentially connects people with the advertisements for establishments in their nearby neighborhoods. What’s more, it’s based on a proven model. It borrows from the free newspaper/classified publications aimed at building local business awareness (without breaking their budgets). But the real story is the sales force of mobile enthusiasts and evangelists Steve is building to sell (and upsell) these ads to local establishments. Indeed, my own discussions with local restaurant owners, for example, lead me to conclude that many are eager to promote their offers via mobile –provided they could find someone (such as a tech-savvy student) to do the heavy lifting for them.

As with all disruptive business models, there are some key questions to which there are no clear answers at this point in time. How fast can AdXplore recruit agents? How well can they sell? And who is going to spread the word to customers so they download the app? But AdXplore has many of the answers baked into its business model. The sharp focus on local establishments and non-profits allows AdXplore to turn its advertisers into stakeholders and brand advocates, spreading the app and the service virally throughout their communities. And why stop there? The app and the back-end are based solely on latitude and longitude which is universal to every language,and would surely be welcome in emerging markets such as Africa and Asia – where mobile is and will always be the only way people learn about offers and jobs nearby.

The Windows Phone 7 launch in New York shocked many in two ways. First, those who had not seen a demo marveled at the social networking innovations – for instance, through the contact list, users can reach friends and others on Facebook, post quickly on YouTube and Twitter, and more. Second, the reviews from the pundits were downright Apple-esque – in dozens of reviews, the commentary was uniformly glowing.

What will all this do to global handset market share?

Microsoft has a market share of only 5 percent in the global smartphone market, according to research firm Gartner, compared with 9 percent a year ago.

“This is a marathon, not a sprint. They (Microsoft) are not going to change their position today or in the next month,” Michael Gartenberg, an analyst at research firm Gartner, told Reuters. “But they’ve established themselves as a credible player.”

Globally, it’s still Nokia’s game. In the second quarter of 2010, Nokia’s mobile device sales to end users reached 111.5 million units and a share of 34.2 percent, according to Gartner. Nokia slipped 2.6 percentage points year-on-year.

Google’s Android system had a 17 percent market share, jumping from only 2 percent a year ago.

Samsung sold 65.3 million devices in the second quarter of 2010 that translated into a 20.1 percent market share.

Apple’s mobile device sales reached 8.7 million units or a 2.7 percent share of the overall mobile device market, but a 14.2 percent of the smartphone market. Apple maintained its number 7 position in the worldwide mobile device market and held the number 3 position in the worldwide smartphone market.

HOW I SEE IT: Microsoft reportedly will spend up to a half-billion dollars to market Windows Phone 7. A positive user experience will accelerate the adoption of smartphones. Gartner expects almost 270 million smartphones to be sold worldwide this year, up 56 percent from last year. Of course, another operating system complicates the lives of marketers who will now have to modify campaigns to render properly on more devices. But the plusses easily outweigh the minuses. Innovation and huge marketing spends will not only speed up the adoption of smartphones; they will create opportunities for marketers to reach consumers in richer ways. That will translate into more sales and brand loyalty.

* * *

At the Mobile Marketing Forum in New York, Disney executives said it projects 50 percent of consumer engagements to come via mobile by 2012.

This week at the Direct Marketing Association’s National Conference in San Francisco, Disney shared more on its mobile vision.

Disney will offer deeper location-based services in the next six months to broaden its entertainment experience and to become “site location-aware,” said AJ Rhodes, director of strategy and marketing at Disney. Consumers will be able to use their mobile devices to grab offers and exclusive content.

Of note, Rhodes said Disney has seen more mobile interactions with consumers via the mobile web than by downloadable apps.

HOW I SEE IT: It’s finally time to stop asking when the year of mobile advertising arrived. Vision from companies including Disney is hard evidence the market is here. Indeed, Disney’s sharp focus and deep commitment tells us that this is about execution, not experimentation. Put simply, cementing mobile in the center of marketing and advertising (as Disney is clearly doing) is no longer an option, it’s a business imperative.

* * *

As bigger dollars flow into mobile marketing, more want to earn a living in this wacky but emerging industry. So where does one turn to gain the knowledge and skills?

A couple of places come to mind.

First, one can learn the basics at the Mobile Marketing Association’s web site and by becoming certified through the MMA’s Certified Mobile Marketing Program. First launched in the U.S., the program is now available in the South African and Singapore regions. The MMA is also developing programs for the LATAM, and Canada regions, as well as more regions in EMEA and APAC.

Full disclosure: I co-created the program with Michael Becker, which leads me to the second resource worth noting. This week, Michael, now the North American Managing Director of the MMA, brought Mobile Marketing For Dummies to the marketplace. In the book, he details the elements of mobile marketing, provides tips on how to engage your customers, and compares the advantages and disadvantages of using one mobile tactic rather than another.

HOW I SEE IT: Scan the marketing want-ads or #job tweets and mobile expertise is in huge demand. That’s a trend that spites the economy and underlines the growing requirement for people with this skills set. You certainly can’t say that about many other disciplines.  I was a traditional marketer until I took the plunge into mobile. (And that was in 2005!) Now it’s a tidal wave. No reason why others can’t follow a similar path. But we will need maps to navigate our way. Michael’s book comes at a time when blueprints and how-tos are welcome. And there is also an opportunity for everyone in mobile marketing to share the knowledge and contribute to the growth of the space.

* * *
A career author and sought-after speaker, Jeff Hasen builds, strengthens and protects brands. Companies benefiting from his talents have landed on Wired’s list of most innovative entities on Earth and been named pioneers and the early leader in the burgeoning mobile marketing category. Jeff co-created the certification program for the Mobile Marketing Association (MMA). He is one of only two individuals certified by the MMA to train professionals and students on mobile marketing definitions, techniques and benefits. At Hipcricket, he conceived and led the execution of an accelerated rebranding effort in advance of the mobile marketing software and services company being named “the early leader in the mobile marketing space in the U.S.” by Frost and Sullivan. Hipcricket also won consecutive annual pioneer awards from CTIA — The Wireless Association. Follow Jeff on Twitter (@jeffhasen).

Dan — who will be speaking tomorrow at the Location Business Summit USA in San Jose, organized by the wherebusiness .com – gives us the scoop on some company stats, including the number of hyperlocal ads it has served, the number of publishers on board and the overall reach of the WHERE network.

Listen in to the podcast below for the numbers and the trends that WHERE shares with MSG (first!).

LOCAL ADS SERVED

A number that speaks volumes (literally) is the number of hyperlocal ads that WHERE served in the first week of July alone. Dan reports that the network served 30,000 ads in the course of one day in the area of the East Side of New York City (!) Dan is also bullish about the importance of being able to target on the zip code level. I tend to agree. After all, the ability to target on the zip code level allows local businesses and content owners to reach their local audience in ways that mobile apps (alone) can’t.

COMMERCE & CONTEXT

The raft of excellent reporting and case studies over at Mobile Commerce Daily document the trend to mobile shopping, commerce and integration between mobile and the POS (point of sales).

“We look at the activity post click-thru, and we found in the month of August that 11 percent of the click respondents clicked on a click-to-call on the landing page for the local merchant,” Dan says. “So, we believe that we’re truly in a place where we can help understand the context and the intent of the consumer and help drive them into a merchant location.”

LOCAL SEARCH

What’s next for WHERE? Discovery. The next step in the “evolution” is “how do we create a better engine for both the consumer and the merchant to discover each other.” In his view, WHERE has to become the company that “helps you discover other content, other places around you and leverage that ability to help merchants get in front of potential consumers.”

MY TAKE: WHERE has more than the right numbers to provide hyperlocal reach; it also has the correct strategy in place to potentially play a centerpiece role in mobile commerce. This is one to watch…

LISTEN TO THE PODCAST HERE. [8:15]

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You can catch up with Dan at The Location Business Summit (September 14-15) in San Jose, California. Alternatively, you can always email Dan at dan@where.com and follow him on Twitter (@dangilmartin). Dan will be back soon to share a new product announcement and some additional stats that reveal the real state of hyperlocal mobile search and advertising.

Personalization – being able to present individuals with mobile content, services, apps and experiences that are in tune with their profiles and preferences – is shaping up to be the factor that separates a successful sales/marketing pitch from a FAIL.

Granted, people can use mobile search to find what they want. But standard (universal) key word mobile search is not personal. No matter if you’re a scientist, a student or a silver surfer, mobile search delivers the same results to everyone – period. There are some exciting companies offering search services that inject personalization into the equation (and I will cover them here on MSG in the next weeks), but much of the burden is still on people to know what they want. And knowing what you want (a specific piece of content as opposed to a “cool game”) is no easy task.

PERSONAL SHORTCUT

A much smarter approach is to harness personalization technologies to expose people to what they are likely to appreciate. Bubbling up stuff (content, apps, marketing offers) that is perfectly aligned with people’s profiles, preferences, past purchases) is a great way to making finding and buying stuff a no-brainer.

I began tracking and analyzing personalization technologies and the companies that offer them in the industry-first report on the topic (Mobile Search & Content Discovery) I wrote in 2006. I have always considered personalization core to competitive advantage (deploying these technologies either alone or in combination with a mobile search service). However, personalization is only today taking a top-notch spot on the business agenda, driven the recent explosion of content and apps across a maze of app emporiums and handset maker-managed app stores.

Indeed, the new paradigm is personalized content-push based on a deep understanding of the individual’s purchases, passions and past click-behavior. It’s even more compelling if the technology can learn users’ likes and dislikes over time to dynamically and consistently deliver the right content mix.

ASK FIRST?

A number of players – both long established market leaders and nimble newcomer start-ups – “get” it. They range from content companies with personalization (and recommendation) capabilities “built-in” to their offer (Gracenote); to companies powering content discovery on behalf of mobile operators and media brands (Aggregate Knowledge, AMDOCS Interactive, Qualcomm’s Xiam Technologies).

Much of the profiling is based on keen observation and excellent numbers crunching capabilities. Put simply, these technologies use implicit personalization to make sense of the digital bread crumb trail we leave behind. What we do on the Web, what we do with our mobile phones, and, in some cases, how interact with advertisers – all these interactions become variables in the algorithms these companies use to present us what we are likely to appreciate (even before we think to ask for it!).

Implicit personalization has clear advantages, but is it enough to get the 360-degree holistic picture of what we are and what we want? Wouldn’t a hybrid approach that asks people – even if only for a reality-check – be potentially more effective? It certainly works in permission-based mobile marketing, where companies (operators, brands, agencies) achieve impressive results by harnessing opt-in to ask people directly about the advertising they are willing to accept.

SIDEBAR SMART MENU

Which brings me to Sidebar, a California-based start-up that recently reached out for inclusion in the reports I am currently researching and writing on behalf of GigaOM Pro. The series of reports (soon to be released) focuses on topics ranging from permission-based marketing to the future of mobile search. Personalization naturally plays a central role in both. (My personal thanks to Caroline Diaz and the team at Brew Media Relations for introducing me to Patrick Kennedy, Sidebar CEO, and Kieran Hannon, Sidebar COO.)

To date the coverage about Sidebar focuses primarily on the company’s Android and BlackBerry apps, which enable content discovery based on people’s answers to questions aimed at determining demographic data and individual preferences. It’s a great story, and timely since content discovery is a hot item in the industry.

But the real story is the company’s shift away from D2C to B2B, and the unique focus on what I like to call participation marketing (a term Patrick and I came up with during our in-depth briefing).

Participation marketing sits at the sweet spot between determining what people want/will accept by following and analyzing their digital bread crumb trail and knowing what they want/will accept by asking them straight out. Sidebar calls this intelligent mobile merchandising because it uses personalization and robust analytics to make storefronts (the current focus) smarter.

I used my briefing with Patrick and Kieran to get the inside track on the company’s Smart Menu and Smart Messaging solutions and progress to date in Brazil and India, where content companies have implemented it to super-charge their content storefronts.

What is Smart Menu?

It’s the capability mix that allows Sidebar to take any WAP or app-based content and present it in a way that we are likely to appreciate. Think dynamic clustering and personalized presentation. Put simply, Sidebar’s engine learns from user behavior and dynamically clusters users into groups. But it also lets people input their personal preferences and rate content – additional information that can help hone personal content recommendations. The menu also has slots that can also be “programmed” by storefront managers to showcase specific content or fulfill partnership obligations with third-party developers/content owners.

How do they work?

Patrick is predictably tight-lipped on the nuts & bolts, but it’s enough to say that Sidebar collects partner metadata (via APIs) about the content/apps and any other information that has been collected about the people using the service. It combines this with what people volunteer about themselves and their interests (what they like and what they don’t), information they input while they interact with the portal on their mobile phone. Sidebar then uses its own technology to analyze the data and determine what users will want and appreciate (before they ask for it).

Interestingly, Sidebar can use this to optimize/personalize the complete storefront, or it can simply create a “Just For You” section category that exposes stuff that is aligned with what the user would likely want and appreciate. Moreover, the algorithm can be tweaked to optimize/personalize content and app suggestions based on ROI goals. Thus, people are presented with recommendations ranked by both purchase probability and how much each purchase would contribute to ROI. Put the two together and the highest ROI opportunity takes the top-notch spot in the recommendations.

And the list of options and combinations goes on. Personalized recommendations can also accommodate other variables such as price sensitivity (the price at which people will likely buy, or the level at which the service provider wants to sell), location (local recommendations) and even social network (what your peers and significant others on Twitter and Facebook like).

DRIVING (RETURN) VISITS

But dynamic personalization is just part of the picture; Sidebar also brings text messaging into the mix to reality-check user segmentation, gauge customer satisfaction and facilitate a conversation between the company (storefront owner) and the individual. As Patrick puts it: “It’s all about leveraging all the data captured for each user to deliver highly targeted promotional messages.”

The combination covers all the consumer touchpoints – and can also pull in data from other channels/platforms including PCs, games consoles, iPads/Kindles and set-top boxes. This might be why mobile operators are showing a particular interest in the solution. In the case of one operator, the strategy is to use personalization of WAP and website portals as a “launch pad to transition consumers, as they inevitably move from featurephones to smartphones.” The logic here: By providing users a personalized offers carriers can “come to be seen by the consumer as a provider of entertainment content they like.”

Another plus: a significant uplift in content consumption. Patrick reports that Sidebar’s own tests show personalization resulted in “a remarkable uplift that surprised even ourselves and more.” As Patrick puts it: The core value here is harnessing participation marketing to create a personalized merchandising experience, but the driver is the “realization by operators and storefront owners that they have a limited amount of time before people start to see app stores and other destinations as the place to get their digital stuff.”

Names and negotiations are under strict NDA (Patrick will share this news with MSG first), but one client Patrick can discuss is Indiagames, a leading Indian games publisher using Sidebar to offer personalized recommendations via its portal. Billed as the number one Indian mobile game publisher, Indiagames offers both mobile and online games. Its products are developed and published across all major technology platforms and are distributed through partnerships with mobile operators in over 75 countries.

MY TAKE

When it comes merchandising personalization is important – which is why companies in this space are in a good place. But it’s also important to get information about what people want/appreciate from the people. It’s not just about choosing the right content, although that is a BIG part of it. However, combining personalization with conversation is a powerful (and potentially lucrative) algorithm for success. Sidebar encourages this exchange, inviting people to participate and actually tell retailers what they like. Connect the dots, and participation marketing shows people what is appropriate and relevant for them. But this approach can do more than potentially allow storefront owners and mobile operators to cross-sell, up-sell and encourage the all-important impulse buy. It’s easy to imagine combinations of Sidebar’s smart messaging and menus that enable mobile commerce in the physical store, enhance mobile advertising campaigns or just give us a segment of the hundreds of channels on cable TV that we will really enjoy.

We may like to think that smartphones and super-smart devices change all the rules, but companies across all verticals are just beginning to grasp (and harness) the incredible power of text messaging to reach people everywhere.

From bank statements to medical advice, from appointment reminders to public opinion polls, from mobile commerce services that encourage in-store purchases to mobile CRM services that encourage us to come back for more, messaging impacts our lives and lifestyles at all levels.

Even more exciting than the hockey-stick growth in the number and varieties of use cases and scenarios is the appearance of new and successful business models that harness permission and personal context to benefit companies across the emerging business ecosystem and – most importantly – consumers.

In my recent column for EContent magazine I draw from a series of interviews I conducted on behalf of bnetTV to highlight some new services and innovation (harnessing text) to help companies wring more value out of the mobile conversation and build a more satisfied and loyal customer base in the process.

This “personal touch” is not only super-charging new verticals; it’s also transforming mobile marketing. A company spearheading this change is Alcatel-Lucent, which (through its Optism solution) is purposely focused on making permission and preference-based SMS/MMS the most responsive and targeted, high-reaching media available in the mobile media business.

My take: Delivering messages and follow-ups (after getting people’s permission to do so) pays dividends – across all verticals. Next week I show how a new startup in the personalization space has harnessed “smart messaging” to collect and feed additional data (demographics and preferences, for example) into its engine and – ultimately– deliver the right suggestions to the right people.

READ THE ECONENT COLUMN HERE.

Disclaimer: Optism is an MSG client and supporter.

A raft of announcements and events from the Mobile Entertainment Forum (MEF) signals a new level of excitement and activity in the global mobile media industry. From the advance of smartphones and app stores to the widespread recognition that service enablers (offered by mobile operators and handset makers) are essential to the health and wealth of the entire business ecosystem, the industry is in a new phase of development and mindset. As Rimma Perelmuter, MEF Executive Director, puts it: “There’s a real sense in this $36 billion global industry that we are at a new stage of innovation. We’re seeing consumers around the world using their mobile phones as their key point of access to content and media, and the industry is evolving to make that user experience one that is more engaging and more holistic.”

PERSONALIZATION PLAYERS & VODAFONE 360

Against this backdrop, this year’s Meffy award is much more than a recognition of excellence and innovation. It’s a welcome confirmation that the industry is experiencing a true coming of age, striking out in new directions and defining new areas of opportunity around mobile apps, mobile commerce and cross-platform content and technology.

In fact, this year’s awards saw the introduction of seven new categories that reflect key industry trends and point the way to where the action is. A particularly important one this time around was content discovery and personalization, a category I developed together with Kim Arazi, Member Relations Director, and judged as part of my duties for the third consecutive year.

The decision was a tough one as always, and the range and calibre of companies focused on technology to unlock the value in profile data (demographics, browsing patterns, purchases) to generate real revenues was impressive.

One entry that underlines the tangible business value of personalization was Vodafone 360, the Vodafone app store. Here a personalization engine (powered by Xiam, a Qualcomm company), which provides recommendations based on user behavior, was at the center of the mobile operator’s strategy to deliver a richer retailing experience. The impact of personalization was measurable and Vodafone later revealed anayltics to Mobile Entertainment that show four times more customers buy on the basis of recommendation than on promotion.

Other entries included CSL MyNet Personalized Mobile Internet Service (powered by AMDOCS Interactive), another exceptional example of how personalization technologies are allowing operators to offer value in the off-portal space, and Taptu, a mobile search and discovery company making its mark by indexing the Mobile Touch Web to expose touch-friendly content people can enjoy on their touch devices.

MEFFY WINNERS & FANCHARGE

Another category that shows the coming of age of consumer engagement was mobile advertising. I also judged the category and was struck by the shift in mobile marketing approaches away from sales pitches to enhanced experiences. Indeed, agencies and brands are correctly embracing mobile as a mass media and focusing their efforts on innovative ways to place mobile at the center of a 360-degree experience.

An excellent example of this was the winning entry. Go! Go! Lions, an integrated mobile campaign carried out with the Seibu Lions, a Japanese major-league professional baseball team, used the Fancharge platform, an integrated suite of mobile marketing and fan engagement applications for live sports and entertainment, to deliver everything from content to coupons to commerce. (Click on the image below to see this impressive campaign — and thanks to Fancharge for sharing and hosting this video.)

Other Meffy 2010 Winners:

• App Store Blockbuster
  CBS Mobile for ‘NCAA March Madness on Demand’ [Check it out here]
• Business Intelligence
  Motally for ‘Motally’
• Consumer Experience
  FindaProperty.com for FindaProperty
• Content Discovery & Personalization
  Taptu for ‘Touch Search’
• Cross Platform Content
  Zed Group for ‘Planet 51’
• Cross-Platform Technology
  MTS for ‘Omlet.ru’
• Games
  PopCap for ‘Plants vs Zombies’
• Innovative App
  CBS Mobile for ‘CW City-Wize iPhone App’ [Check it out here.]
• Innovative Business Model
  Mob4Hire for ‘Crowd Sourced Mobile Testing’
• M-Commerce
  Wau Movil for ‘First Gateway Service Offer in Latin America’
• Mobile Connected Device
  Novatel Wireless for ‘MiFi Intelligent Mobile Hotspot’
• Mobile First Innovation
  Tata Teleservices for ‘English Seekho’
• Music Service
  Shazam for ‘Shazam Encore’
• Social Media
  Handmade Mobile for ‘Flirtomatic’
• Technology Innovation
  Layar for ‘Layar Reality Browser’
• TV & Video Service
  CBS Mobile for ‘TV.com Android & iPhone Mobile’

The MEF Outstanding Contribution award went this year to Dr. Andrew Hsu, the inventor of modern touchscreen technology for mobile handsets. Thanks to Rimma, Kim and the excellent team at Hotwire PR (especially Morgan Evans) for arranging a briefing with Andrew.

Andrew and I discussed how touchscreen has revolutionized the device landscape and explore progress and learnings around the Fuse, a prototype device that brings together captive touch with tilt-sensing, squeeze-sensing and haptics. An awesome experience and more in the podcast next week!

PODCAST WITH RIMMA PERELMUTER

Meantime, I caught up with Rimma Perelmuter, MEF Executive Director, to connect the dots in a long string of MEF announcements and releases.

While the Meffys are certainly a good way to gauge what’s hot and what’s on the horizon, the Business Confidence Index (BCI), based on survey of MEF members, is an even better measure of revenue and business trends in the now $36 billion mobile media market – up from $32 billion in 2009. Rimma walks through the results and discusses the opportunities for growth around smartphones, apps, payments and commerce. She also discusses the top three challenges: consumer awareness and trust, fragmentation and operating systems.

Based on the survey it’s clear that the industry must collaborate to create the business models that will allow everyone to make money on mobile media. To provide companies a roadmap to navigate this new terrain the MEF released a Smart Enablers Guide that builds on the organization’s existing initiative to show how access to service enablers (such as location information) can provide business benefits.

It’s a meaty document chock full of case studies and member survey results on topics including the role of the mobile operator, the spectrum of smart enablers, and the battle looming ahead in the value chain.

Contributions and columns I will be writing for the MEF publications and newsletters will go into more depth, but Rimma starts us off with a high-level overview of why this initiative deserves the support of all the stakeholders.

And finally, Rimma discusses the global agenda and progress in the MENA region. In mid-June MEF celebrated the co-founding of its first office in the Middle East. The office,  based at the  Qatar Science & Technology Park, an innovation hub, will be responsible for localizing strategic MEF initiatives. The Middle east was identified in surveys as a key growth market for the mobile media sector.

MEF grows its global presence

LISTEN TO THE PODCAST [17:30]

What you see is what you get? Advances in AR are transforming this idea into an ideal business model. This was a message that came across loud and clear at the Mobile Marketing Forum in June (an event organized by the Mobile Marketing Association) when agencies such as The Hyperfactory outlined recent marketing campaigns and impressive results.

But it’s not just about impact. Swedish retail giant IKEA has cleverly harnessed AR to take its 2010 catalog to mobile. The AR app for iPhone allows people to select a piece of furniture from the IKEA catalog and then check out how it looks in the room around them. What’s more, people can change the size of the furniture to fit the room by using the phone’s camera. The app, which takes the pain out of shopping for that perfect sofa, is a blockbuster success and a sure sign that AR is moving from novelty to utility.

INTERVIEW WITH JOHN ELLENBY, GEOVECTOR CEO

What is the future outlook for this new form of immersive marketing?

We catch up with John Ellenby, CEO of GeoVector, for his views. Headquartered in San Francisco, GeoVector has been inventing, developing and fielding innovative pointing and AR capabilities for mobile devices since 1991. Since then the company has experienced much success in Japan, where it launched the first commercial AR offering on the KDDI network with the help of local partners. In 2009 GeoVector released its first application for the iPhone and Android platforms aimed at the U.S. and European markets. The World Surfer application does more than hyperlink the real world; it also provides an attractive vehicle for marketers to connect with consumers on the go.

* * *

Q: GeoVector has a long track record in directional searching and AR. Please walk me through some of the milestones and key learnings you can share.

A: We provided a commercial service in Japan beginning in 2006. As you know, this is a technology-savvy market. But it’s also a market where users are concerned about user-friendliness and personal privacy. They want to have a service that’s 24/7. More importantly, it should be easy to use and useful. The Japanese will also not put up with spam. So, if the phone grunts out or delivers some message like ‘lovely lattes here’ when you pass a coffee shop, that’s a service that they will kill immediately — and with good reason.

What we have learnt from Japan is that there is a requirement for carrier-grade services, offering up-time, privacy and security.  Our operations in the U.S. and Europe, where we have launched World Surfer, leverage our experience in Japan.

The World Surfer is a product that brings local search applications together with  pointing and Augmented Reality to a variety of handsets, not just top-of-the-line smartphones. We’re interested in reaching the middle-grade phones, if you like, and so are businesses and brands.  So, we’re trying to position ourselves as a highly-reliable service provider with an imaginative, easy-to-use and secure product that can be provisioned and be made available on a large variety and volume of phones.

Q: How does combining pointing and Augmented Reality add value to the service? And what is the end-user experience?

A: Accurate pointing underpins the service. It knows which way the user is pointing the phone and delivers the user information along the vector that the phone is pointing, hence the company name GeoVector. That information can be visualized in a variety of ways. We can visualize it as lists.  We can visualize it on a compass.  And we can show the things that at in that direction as well as the things that meet your criteria.

So, we can display this as a list. But it can also be shown in graphics, which is what World Surfer does. In addition, we have the ability to visualize information in other ways that are covered by our patents that harness various kinds of Augmented Reality. In fact, Release 2 of our World Surfer will have augmented reality as a part of that visualization, allowing users to retrieve information in camera view. This will also make entertainment content very engaging.

Q: Can you provide an example of how entertainment fits in?

A: Let’s take the example of a billboard advertisement for a movie. You point the phone at the billboard to receive some related content on your phone, as well as the times the movie is playing at a nearby theater. It’s also easy to imagine that one of the leading characters in the movie joins you on the device screen and guides you – and you are in the form of an avatar on the screen – to the theater. As you know, one of our co-founders is from Pixar, so our company has a strong connection to animated entertainment and the scenario I described is not too far away.

Q: What are the key business drivers?

A: I think the timing is right because the devices are available. Another driver is the strong interest we are beginning to see from advertisers. They are beginning to produce more imaginative content and campaigns for mobile. I’m excited about this development because these advertisers are going to bring considerable creativity and imagination to this space and produce some very engaging content.

A third factor is the willingness of people to use data services. But usage is no longer just about checking the weather or retrieving information about your bid on eBay. Now it’s about discovery and ways to use my phone to find out what’s interesting or what has changed.

We’ve had positive feedback from users of World Surfer and people say it’s actually rekindled their interest in the world around them. They use it to find out more about the area they’re in, and this also represents an extraordinary opportunity to the merchandiser, the advertiser or the enterprise that wishes to serve them at that place and meet their needs.  Moving forward, more of these services will be triggered through pointing and they will be personalized services available to you if you’re willing to identify yourself to them. That’s where the offer and the infrastructure that we’ve created in Japan comes in to provide people privacy and security, making them feel comfortable about identifying themselves to companies that want to reach out to them.

Q: What kinds of services do you support now and what services do you envision?

A: In the U.S. Papa John’s [pizza] and Starbucks are featured on our World Surfer application on the iPhone and Android platforms. Users can click the Papa John’s or Starbucks channel and interact with the brands on several levels, including obtaining a guide to the nearest location and coupons. In the case of Starbucks this could facilitate the ordering and paying process, which beats lining up for service.

So, instead of standing in line and having to say, ‘I want a double latte with a cinnamon twist and a cinnamon bun,’ you pre-order it by pointing at the location of the coffee house. As you come closer it’s ready for you. This is what is happening now and what we’ll see more of in the future. Consumers will be able to do more than ever — order things they way they like them, access information they need and even buy books from Amazon related to the landmark where they’re standing –all this and all at the point of action.

Q: What do you expect in 2010 and beyond?

A: I expect the industry to experience massive growth. There will be more money invested to promote and provision these pointing and Augmented Reality services, and we’ll see major carriers and portals offering them as well. This will happen because of the obvious value they offer to advertisers, enterprises and the venture capital companies the industry needs to get this started.

For GeoVector it will be an exciting year. We already partner with NEC and Mapion in Japan and we’re interested in partnering with other companies on a revenue share basis. Advertising will be another focus. I am excited by the number of advertising agencies that are speaking with us because, to me, that’s a sign that we have a real winner here.

THE NETSIZE GUIDE

The Netsize Guide – which features exclusive interviews with 28 industry senior executives at leading companies and organizations including Havas, M&S, MMA, Nokia NAVTEQ, PayPal and Sony Music Entertainment — provides unique perspectives and reveals how players across the mobile ecosystem are preparing to meet the challenges and take advantage of the opportunities ahead.

The Netsize Guide 2010 also includes the results of Mobile Trends Survey 2010, an online survey asking +1,000 mobile professionals and practitioners across 67 countries their views on these key themes and their insights into trends that top the industry agenda, including the advance of mobile applications stores, progress towards global mobile commerce and the increasing importance of mobile across a range of business verticals.

Finally, the Netsize Guide 2010 presents detailed data on the wireless telecoms sector in 41 countries, including revenues, market shares and value-added service offerings for messaging and billing of 194 mobile network operators worldwide.

DOWNLOAD YOUR FREE NETSIZE GUIDE HERE.

Disclaimer: Netsize is an MSG supporter. Peggy Anne Salz is author of the Netsize Guide 2010.

Less than a week to MobileBeat and the program continues to add new speakers and exciting topics. Be sure not to miss out on the chance to hear and connect with a powerful keynote line-up that now includes: John Donovan, CTO of AT&T Operations; Phil McKinney, VP & CTO of HP’s Personal System Groups; Omar Khan, Chief Strategy Officer of Samsung; and Omar Hamoui, AdMob founder and now Google’s VP of Mobile Ads.

Newly added panelists include Christy Wyatt of Motorola Mobile Devices, Pooja Midha of MTV Networks Digital and Ian McKerlich of T-Mobile. They join a stellar array of insiders such as Facebook’s Erick Tseng and Twitter’s Kevin Thau of Twitter.

MSG is proud to be a media sponsor of MobileBeat, an event that has sold out (!) the last two years. Attendance is limited so be sure to register now to avoid missing THE mobile conference of the year!

MSearchGroove readers click here and use promo code MB2010-MSEARCHVIP to get 20% off.

Join 500 mobile industry leaders — from the major U.S and international carriers, to the top device makers, developers, startups, marketers, investors, and press — for two packed days of exciting content, power networking, and deal-making.This year’s new two-day format will explore “The Year of The Superphone and Who Will Profit.”

You’ll also get a peek at 20 of the hottest new start-ups in the applications and infrastructure/services categories showcased in MobileBeat 2010’s Startup Competition.  Help select the ones most likely to shake up the mobile world and who’ll receive the coveted Tesla Award plus accompanying fame and glory.

Agenda highlights:

Move over, Telcos, Here comes Silicon Valley

• Samir Argawal, Nokia, Head of MeeGo software development
• Kevin Thau, director of mobile, Twitter

Mobile Platforms 1: the Future Struggle Among the Titans

• Christy Wyatt, SVP Motorola
• David Ko, Yahoo! SVP, Audience, Mobile and Local, North America
• Alan Brenner, SVP at RIM

Mobile Platforms 2: Who is Winning the Heart of Developers?

• Jason Spero, Director, Mobile, Google
• Ian McKerlich, T-Mobile, Director of Mobile Content
• Oliver Gunasakera, Symbian
• Peter Vesterbacka, Angry Bird

Building a Successful Mousetrap

• Russ McGuire, Sprint, VP of Strategy
• Tyler Lessard VP, Global Alliances and Developer Relations Research In Motion
• Ilja Laurs, founder and CEO, GetJar
• Laura Merling, Alcatel-Lucent, Vice President Developer Platform and Programs

It’s 5pm. Do You Know Where Your Friends Are?

• Othman Laraki, Director Geo, Twitter
• Tasso Roumeliotis, Location Labs, Founder & CEO
• Seth Priebatsch, Chief Ninja, SCVNGR
• Keith Lee, CEO, Booyah (MyTown)

Enabling Mobile Games

• Stewart Putney, Founder and CEO, Moblyng
• Ben Keighran, Chomp, CEO & Co-Founder
• Si Chen, PapayaMobile, CEO

For a complete list of speakers, panels, and breakout sessions, check out the full agenda here.

What’s next in mobile? MLOVE, a multidisciplinary event with a strong emphasis on mobile, promised to give us all a glimpse into the future of mobile and insights into the great ideas and biz models that can bubble up when artists, entrepreneurs, academics and executives brainstorm in a castle near Berlin. TED meets Burning Man? Maybe… But if you want to find out for yourself – then register for MLOVE at MLOVE.com – and take advantage of the 20 percent discount MSearchGroove offers as a media partner for the event.

PODCAST WITH GOOGLE’S NICK HELLER

Moving on to our final podcast in the series to tell you what awaits you at MLOVE – I am extremely to connect with Nick Heller. Nick is responsible for New Business Development across EMEA at Google. He is also sharply focused on new product incubation and exploratory efforts in technology, meta-data licensing, strategic partnerships, special projects, and alternative distribution for existing and new business initiatives.

In addition to a preview of his keynote at the event, Nick gives me his take on a variety of exciting – even controversial topics.

• The role of mobile? In Nick’s view mobile is an “access point” to information. And the device is more about convergent computing than communications.
• The value of location? Predictably, quite central to a quality (and relevant) mobile experience.
• And where is the NEXT Google going to come from? A surprising answer that leads us back to the Web and not mobile…

For the full story listen to the podcast – or register for the event to meet up with Nick in person.

Register at www.mlove.com/register . Enter VIP-MSG to receive an instant 20% discount.

Listen to the podcast here. [10:34]

Give the people what they want? On traditional media – such as TV – it’s a guessing game. But on a fiercely personal device such as the mobile phone, brands can start a conversation (using SMS or MMS – or both, for example) with people to just ask. Research shows people will volunteer personal information if they perceive that they are getting value in return – and part of that value is getting advertising that is relevant. Even better if that advertising is also life-simplifying.

A prime example of this is Amazon, which cleverly includes recommendations (translated: advice about what you could/should buy) in its conversations with customers online. As Dan puts it: “That is where advertising has crossed a line at that point in time. It’s now become a service that I appreciate rather than an intrusion that I do not.” The challenge – and the opportunity – is all around harnessing “to communicate to people things that they’re really genuinely interested in. That’s when that advertising starts to become a service for people in helping making their life more convenient and connect[ing] them with the things they want, when they want them.”

Dan – who also hosted the global launch of Optism, a permission-based mobile marketing solution from Alcatel-Lucent that bridges gaps between operators and advertisers – also speaks frankly about what he calls the “relationship gulf” that separates brands/agencies from mobile operators. As he sees it: The key question is how well the network operators embrace their data. “While they offer an ability to communicate with people, they’re just really a pipe at the end of the day. The moment they open up their data and their understanding of the customers… allowing brands to utilize that understanding to communicate more effectively, they [mobile operators] suddenly become a very rich media partner.”

Among the highlights

ASKING PERMISSION: It’s imperative. Dan believes brands should ask people for permission to communicate with them. The customer information a brand gains as a result is “richer and more detailed.” Understanding it and linking it to relevant brand messages allows brands to “actually developing things that are going to be very, very powerful for both the consumer and the brand.” Dan also shares an excellent case study of a campaign his company did for Birds Eye foods that recorded a whopping 11 percent response rate (!).

By way of background, the Birds Eye campaign started off as a fairly straightforward text to win campaign – with the short code details printed on the package. Sponge used the information (it knew the food people bought because they were texting in the short code printed on the pack in the first place) to deliver a product related text. The agency created three different databases, each relevant to a product group.

The first was generic nutritional information. So, Sponge sent text messages such as: Did you realize that five chicken dippers have less fat than a pork sausage? The second was recipe information. So, Sponge sent a product-related recipe idea by text. The third and most interesting offer was product suggestions. Dan tells me that cross-selling technique dramatically increased sales of specific product ranges within the Birds Eye food categories. In the end, the database of people who opted in to receive ongoing communications from Birds Eye was well over 100,000 (!).

MOBILE BUDGETS: What Dan sees tells him the conditions are perfect for significant growth following a recession that saw brands put the brakes on mobile spending. “We’re certainly seeing a trend this year that says that the foot is coming off the brake….We’re seeing an immense amount of interest and we’re seeing people talk more seriously about their budgets and having proper goals and expectations of what they might be able to achieve with the medium.”

WHAT WE NEED?: “Results. I don’t think there’s anything more complicated than that, is that we need to show tangible results that says if you spend X, then you make Y because that’s the way of the world economy these days. I don’t think mobile is ever going to be able to offer quite the sort of exciting brand pizzazz that you get from a big glossy TV advert, but what it can do is put more people in your store, more people buying your product, or more people enquiring about your services. So, great case studies that show good results is what we need above all else in this industry.”

WHAT’S NEXT: brands have to get better at engagement marketing. It’s about using permission and context to deliver campaigns such as the Bird’s Eye campaign to continue the conversation with consumes long after the campaign is over. Re-marketing is therefore on the top of the agenda. Dan also sees excitement around apps and location- linked advertising – as long as it makes life easier for the consumer.

MY TAKE:

A welcome look at the issues from an agency passionate about the business imperative to deliver helpful information instead of annoying advertising. Mobile marketing is on the march again – and with that momentum comes the realization that the best way to deliver people advertising they will accept and appreciate may be to ask them first.

LISTEN TO THE PODCAST HERE. [14:36]

Editor’s note: The series continues in two weeks with the views of other companies in the engagement ecosystem. We’ll here from brands and agencies and delve into research that captures the view of the youth consumer.

Disclaimer: Optism is an MSG client and supporter.

Tomi Ahonen needs little introduction. His path-breaking ideas on mobile and its centerpiece role in our daily lives have profoundly impacted my work at MSG and elsewhere. His thinking about mobility and his observations that it has indeed become our 7th mass media can be heard in boardrooms and conference rooms around the world. Today Tomi is giving the keynote at the MMA Forum, where his ideas will no doubt resonate with advertisers and brands just beginning to understand why mobile is different.

To recap: Tomi – in his book, Mobile as 7th of the Mass Media: Cellphone, Cameraphone, iPhone, Smartphone — believes mobile is rising to become the “7th of the mass media,” following print from the 1500s, recording from the 1900s, cinema from the 1910s, radio from the 1920s, TV from the 1950s, and Internet from the 1990s.

What makes mobile special? Seven unique benefits:

1. Mobile phones are the first personal mass media channel
2. Mobile phones are permanently carried
3. Mobile phone are always on
4. Only mobile phones provide a built-in payment channel
5. Mobile phones are available at the point of creative impulse, enabling user-generated content
6. Mobile phones are the first media with near perfect audience data
7. Only mobile phones capture the social context of media consumption

It’s an exciting observation, with profound consequences that I will continue to document in contributions and columns here and elsewhere.

It’s also a way of thinking that Tomi and I will explore in our newest collaboration: a no-holds-barred monthly podcast looking at the stats and stories that rocked the industry.

In a nutshell, our podcast consists of three thought-provoking segments: The Numbers Game, a wrap of the month’s reports and stats; The Story, an informed discussion of the companies and technologies highest on investors’ radars; and Wacky Stats, a lighter look at our mobile behavior.

To kick off the series Tomi looks at mobile’s bigger milestone: 4.8 billion total subscribers. What does this number mean? How did we achieve it? And when do we cross the 5 billion mark?

We also talk frankly about location services and where the money is. What did Nokia do right/wrong? And what does its location strategy tell us about the outlook for the sector on the whole? Are investors our time and their money? What is Tomi’s message (as an ex-Nokia, mobile veteran) to analysts and entrepreneurs?

Finally, we wrap up with a ‘wacky stat’ from the U.K. that may surprise you. It’s all about text, drugs, rock-n-roll…

Listen to the podcast here and pass it on! 16:47

The Open Mobile Summit is only a day away and – if you can somehow manage a ticket – I suggest you head on over. There are just over 50 seats left and the line-up of a whopping 70 speakers, includes senior execs from major players including Google, Yahoo, Nokia, Spotify, Admob, Ogilvy, AKQA, the BBC, MTV, FT.com, Opera, Vodafone, O2, HTC – and the list goes on. A special highlight: the first public appearance by Alberto Torres, the former McKinsey consultant who has recently been appointed head of Nokia’s MeeGo smartphone operating system.

Kudos to Robin Batt, my esteemed colleague and the executive producer of this conference. Robin fully understands that doing business -and making money- in an Open Mobile world will require new thinking and business models. The caliber -and variety- of speakers from across the mobile business ecosystem that she has brought together for this event will undoubtedly deliver attendees some answers and useful advice. MSG is proud to support Open Mobile Summit as a media sponsor. I won’t be able to attend this event – but I have already booked my flight for the next Open Mobile Summit (San Francisco, November 8-9) and suggest you do the same.

INTERVIEW WITH ALISA BOWEN

To promote this event and give you a preview of the hot topics on the agenda, I caught up with Alisa Bowen, Senior VP consumer publishing at Thomson Reuters, who will speak tomorrow on the future of publishing in a three-screen world. Alisa oversees the sales, marketing, product development and operations for the company’s Web, Mobile and IPTV propositions in 12 languages and 17 markets globally.  From the start mobile has been at the top of her agenda, so I used the opportunity to ask Alisa what makes her so sure mobile is so powerful.

Among the highlights:

CONTEXT MATTERS: Thomson Reuters is sharply focused on the business professional, a customer segment that is increasingly mobile. “We need to do a world class job of providing them with the information they need wherever they are, whatever context they’re operating in and on whatever device is most convenient to them.  Thomson Reuters provides intelligent information which means both information that you can make real business decisions on, but it also means information that it contextually aware.” Moving forward, that means much more intelligence built into the services. “It’s essentially just beginning.  I think contextual awareness we’re seeing begins with location awareness…but I think there is tremendous opportunity in the future for the technology to become so much more sophisticated, to understand what your mobile consumption habits have been, and then customize your applications around that.” Alisa envisions a linkage between technology and context resulting in services that “know” our moods or the appointments in our calendar and then uses this insight to serve up relevant information.

READING & RELATIONSHIPS: “We spent a lot of time last year researching how business professionals were using mobile devices and what we discovered was that there is no generation gap. There’s been a seismic mind shift in terms of people’s adoption of mobile technology.” But it’s more than just information access on the fly; Alisa says mobile also has to help them connect with their peers in new ways. “For many of our professionals, their jobs are now much more about managing relationships.” They need information but they also need to be “a part of a community internally within [their] own organization and externally within [their] own client base.”

MOBILE VS DESKTOP: It’s not a case of “either or” – it’s a matter of creating content that harnesses the best of both. “In previous eras of our mobile strategy, there was a tendency for us to try and cram everything that somebody would use on a desktop onto a smaller screen.  We’ve seen the light, so to speak, and I think we understand much more clearly that the mobile information consumption is not just the same stuff on a smaller screen.” This recognition has prompted Thomson Reuters to “split a desktop companion product from what we call task-oriented, bite-size applications that are very focused on executing a specific task. In the case of consumer media, that’s news awareness, browsing and reading, and so we’ve developed applications that just do that superbly and they don’t try to do everything else.”

APPS & ROADMAP: Alisa is predictable tight-lipped about the details, but hints that apps such as the News Pro for iPad is a prime example of where things are going. Video is another focus, which is why the company’s financial services division recently released Reuters Insider. “It’s an extremely innovative new video platform for financial professionals; it aggregates content from third parties but also showcases Reuters’ world class financial reporting on video.  It has a number of interesting usability features and functions and essentially allows users the ability to create their own channel by dragging and dropping — from their desktop and from their iPad and from their iPhone — different video clips that fit their profile.” In addition, the service provides a transcript of the video content in “almost real-time” and allows users to search those transcripts and jump using touch gestures to the specific place in the video that contains the relevant keywords they’re interested in following.

ADVERTISING & M-COMMERCE: “I think customers have some cultural sensitivity to paying for the content. But they’re not just paying for the content, so my plea to publishers is to understand that balance between content and experience. One without the other is worthless, but both together is extremely powerful….I think it’s up to us as an industry to make of it what we can and I think you will see advertisers follow in and marketers follow in behind that.” But it’s not just about stock-standard banners and ad units we know from the Internet. “I think the [iPad] platform is a canvas for much more creative and rich advertising and marketing experiences [such as video].” So how can publishers make real money? Alisa is bullish about the potential for the iPad, in particular, to drive sales of real stuff.  “I think that we forget sometimes that the iPad platform represents 125 million users with their live credit card details entered into a store, one click away from buying real stuff. I think that is incredibly powerful….I think if publishers can think about how to harness that opportunity around commerce for buying real goods and services, as well as virtual ones, then that’s a pretty interesting space that I don’t think is being well discussed yet.”

My take: Publishers and media companies are well-advised to embrace mobile. But they must also factor our “state” into the equation. Thomson Reuters has created robust services that effectively split the desktop chores from the task we have to perform on the move. Mobile optimizing content is not about whiz-bang stuff; it’s about understanding what we want to do and providing us the tools (information and access to our communities) to do it well. I was also struck by the sharp focus on video moving forward (for both rich advertising and exciting content presentation). Will video be the next big thing? A tough one to call (and fraught with bandwidth issues we also need to consider). Nonetheless, this bodes well for an announcement we can expect soon: the launch of the industry’s first mobile video ad network. I’ve signed up for a pre-briefing and will report back once it’s prime time.

Listen to the podcast here. [15:07]

EDITORS NOTE: MSearchGroove (MSG) – named a top 50 influential technology site by Konector – provides its platform to showcase select events that set the bar. In addition to standard media sponsorships, MSG produces interviews and podcasts free of charge for select event partners to boost promotion and create buzz. Contact me directly (peggy@msearchgroove.com) to explore ways we can collaborate to make your event stand out.

Next in the series: An interview with Paul Reddick, Handmark CEO, in the run up to M-Publishing, the premier mobile publishing event (London, June 1) organized by James Cameron and the team at Camerjam.

In brief:

It’s encouraging to see a much sharper focus on mobile search and a growing realization among mobile operators, content providers and publishers/developers that there is a lot more to mobile search than the universal model we know from the online Internet. Mobile phone form factors push companies to develop new mobile search services that deliver us relevant results in tune with our intent and context. All the better if these services make use of features and functions such as voice recognition, image recognition, location-awareness and Augmented Reality.

Another development that makes search essential is the avalanche of apps and app stores, and the drive by all the players in the ecosystem to make these content and services storefronts a commercial success. Case in point: Apple’s decision to snap up Siri, a voice-activated digital personal assist that takes the concept of search to a new level (allowing us to find not search!)

OPEN CALL FOR MOBILE SEARCH FIRMS

Regular readers will recall that I have tracked mobile search from the start (hence, the name MSearchGroove, following on the popularity of my industry-first report on the mobile search and content discovery space).

My background and passion also allow me to connect with cool companies in the space such as Taptu, the first mobile search company to index the Mobile Touch Web; Expertmaker, a mobile search company in stealth mode that allows us to refine our search parameters in real-time; GetFugu, a company that combines search and image recognition to help people find local businesses and navigate to their website; and Aisle 411, a company at the sweet spot between mobile search and inventory management. (Check out the bnetTV video interviews I conducted with Carl Freer, GetFugu founder, and Nathan Pettyjohn, Aisle 411 Chairman & CEO.)

I look forward to including these and more cool companies in my keynote presentation to the European Commission. The Institute for Prospective Technological Studies, which is part of the Joint Research Centre of the European Commission, has organized an exploratory expert workshop titled “Exploring the Future of Mobile Search” to discuss the innovation potential in mobile search. The workshop will take place in Ghent, Belgium (June 9), during the 9th Conference of Telecommunication, Media and Internet Techno-Economics.

Timed to this event I will also kick off a new series on MSG profiling mobile search newcomers and innovators. If you are a mobile search company and want to be included in my ongoing work and upcoming series, then please contact me directly (peggy@msearchgroove.com).

DATA POINTS

With search at the top of the business agenda, the timing is excellent to recount the key takeaways of several recent mobile search reports.

MOBILE COMMERCE & MOBILE SEARCH: Mobile Commerce (MC) – which handles over 25 percent of the searches coming from U.K. mobile operator portals and other sources – recently released a report summarizing the trends it observes based on the search queries it “sees” per year.

Among the findings:

• The volume of searches has more than doubled over the last 12 months. MC reports an increase in mobile search usage from 125 million queries to 250 million, in part due to the jump in the number of people signing up for flat-rate data bundles to surf the mobile Web. The number of searches per unique user also shows an increase. The total has grown from 8 per month to 13. (Granted this is not the frequency of use we know from the online Internet, but it is an indication that users are gravitating to the search box on portals as they become more familiar with the mobile Web.)
• The position of the search box is critical. MC’s data confirms that the higher the search box is placed on the portal, the more people use it. It’s not rocket science, but it does show that there are very simple ways to significantly increase the use of search. Even stating that search is free of charge (as Orange has done on its Orange World Portal) can boost usage.
• Tag clouds are useful shortcuts. Many use search instead of bookmarks to reach sites and destinations quickly (which is why Facebook was the single most searched term of 2009). MC tells us that displaying tag clouds containing the most popular search terms is another way to increase searches and drive results.
• Date, time and current events drive searches. No surprise here – but you can follow Steve Page, MC founder, who shares the top search terms and trends via his Twitter feed (@sjspage).
• Internet destinations and giants (Google, Facebook, YouTube) are top search terms. In addition to this information and analysis (summarized in this earlier post on MSG) MC shares how subjects are searched, reminding advertisers that they must bid on many related terms and tag their mobile pages correctly to ensure their results are high up in the natural search results for the terms.
• Are local terms also local searches? Google may have recently claimed that 33 percent of all searches on mobile have a local context, but MC is less convinced. It shows that searches such as “Manchester” are more about local soccer teams (Manchester United) than the city. Of all location searches, 55 percent include either a city or area name, 17 percent have a point-of-interest, 15 percent use a full zip code and 13 percent have a partial zip code.
• Search shortcomings can be avoided. Transcoding is not the only way to mobilize sites. Advertisers should build versions optimized for device types. (Taptu indexes sites that are touch-friendly and built from the ground up for access via touchscreen devices, for example.) The intelligence behind the search boxes could also be better. MC’s road test of search on Nokia Ovi reveals that it delivers games results for pac man – but not for pacman. Android Market suffers the “same shortcoming.” (BTW: This could be solved with a simple “Did You Mean” response to clarify the search term and the searcher’s intent.)

Source

The bottom line: MC has brought together a lot of insights about what people search for and how they search for it. Mobile search isn’t perfect, but volumes are increasing, and so is the pressure on providers to deliver a better experience. And it’s not just about mobile operators any more. The rise of the app stores means publishers and the 75 app stores are well-advised to develop mobile search strategies to deliver people the apps they want – or at least relevant results.

* * *
ARE APPS BEATING SEARCH?: This insightful post from GigaOM draws from a Broadpoint AmTech note and asks if apps are poised to disrupt the standard online search model. The Broadpoint report says search engines derive significant revenues from commerce-related queries (searching for “Amazon” or “eBay”) and suggests that warns that the growth in the usage of mobile apps that take people directly to destinations could be bad news for Google & Co. “If users get in the habit of simply using the Amazon app to search for products or a Fandango app for movies, then Google would be seriously impacted,” the report concludes.

Source

The bottom line: Mobile apps cover the bases to bypass search engines when the purpose of the search is navigational (using the search box as a shortcut) and commercial (looking for a product on Amazon by searching for Amazon first, for example). Sebastian Rupley, who wrote the post, reminds us that Google can likely read the writing on the wall, which is why the search giant is so interested in the “spread of Android-based phones, many of which emphasize its tools and applications, and steer users into its search/ad ecosystem.” It will be interesting to see how all search engines react to the onslaught of mobile apps that make finding and buying stuff with our phones a no-brainer.

* * *

FACEBOOK DOMINATES: We all know that social networking is the number one activity on mobile. A recent ComScore report reveals that search queries on the social networking site (online) grew by a whopping 48 percent between February and March 2010. In its study, which is based on 15.4 billion core searches in the U.S., ComScore also found Google leads with 65.1 percent of the market, down 0.4 percent from February. It was followed by Yahoo, Microsoft, Ask and AOL. Microsoft showed a 7 percent increase after adding mapping and other features.

Source

The bottom line: Read between the lines and this bodes well for social sites and social search via mobile. Facebook, which has more than 400 million active users, is exploding when it comes to search (up 48 percent) on the Internet. Only a matter of time before this trend spreads to mobile, our preferred way to connect with our social networks and information about people who matter most to us on the fly. Meantime, Tech Crunch points out that search growth is slowing. The post concludes: the slowdown “may also be an indication that the search industry is maturing, and the next leg of growth may not kick in until people start searching on their mobile phones in a significant way or something else gives people a reason to search even more than they already do.”

* * *

TAPTU TOUCH WEB REPORTS: This week Taptu releases the fourth in its series of reports analyzing the Mobile Touch Web. To make sure we are all on the same page and to set the stage for the next report findings, here’s a summary of the key takeaways.

• The January Report defined the Touch Web (and the ecosystem emerging around it) and concluded that the Mobile Touch Web had arrived full force. According to the company, which indexes touch-friendly sites and destinations, there were around 326,000 touch-friendly sites in January compared with a total of 180,000 apps across all app stores.
• The February Report takes this a step further, offering a breakdown of the sites that make up the Mobile Touch Web. The report emphasized shopping and services, a major subset of this new Web. In total Taptu counts approx. 83,000 Mobile Touch websites devoted to shopping and services. Why is this significant? Shopping and services accounts for about 26 percent of all sites. The same category accounts for less than 4 percent of apps in app stores. Taptu concludes that commerce is a chief focus on the Mobile Touch Web and will play an important role in its evolution.
• The March Report takes an in-depth look at the Government and Non-Profit sector and its growing presence on the Touch Web. The report highlights some of the leading services from Education institutions such as MIT, the Haiti disaster relief effort from the Charity sector and various local and federal government agencies that are using the Touch Web to reach a mass audience. A surprise: a large number of religious organizations embracing the Mobile Touch Web (a whopping 72 percent of all sites in the Government & Non-Profit segment are faith-based services).

Source: You can download all Taptu reports here: http://taptu.com/metrics/

* * *

AUSTRALIA STATS: This post draws from new Nielsen research to provide numbers on mobile search usage in Australia.

• 73 percent of mobile Internet users conduct searches, compared to 38 percent accessing email and 14 percent checking social media sites
• The figure (73 percent) of people using mobile search was just 30 percent a year ago
• 43 percent of total Australian mobile phone owners have Internet-enabled handsets, though just 29 percent use their mobiles to access the Internet
• Search came out on top of activities conducted on mobile Internet; checking the news and weather, emails, maps and directories, and social networking were also cited as common mobile activities

The report also includes some insights into mobile social networking and the top handsets.

Source

The bottom line: Great to have country-specific stats. Although mobile Internet usage has a way to go, there is a tendency among users to use mobile search to explore all the exciting content at their finger tips. Makes sense that we start off by transferring our online experience to mobile.

Disclaimer: Taptu is an MSG supporter and client.

In brief:

The overwhelming positive response to Europe’s first-ever Augmented Reality Business Conference and Developer Camp (ARBCon) speaks volumes about the new direction and vast potential of AR. The event – which was organized by my esteemed colleague Dan Romescu, an AR pioneer, to bring together companies across the emerging business ecosystem including developers, VCs and researchers. It attracted over 155 participants and featured over 30 speakers/keynotes from 17 countries.

I am pleased to collaborate with Dan to grow this event and continue this exchange on MSG through a series of interviews and podcasts with key players in this industry beginning with Dan, who will speak about the Augmented Citizen and the requirement for industry standards and a framework to ensure AR becomes a robust business with the buy-in of the people it impacts. So, what this space!

Meantime, the timing is excellent to move on to another in the “best of” selection of executive interviews from the Netsize Guide 2010.

This week the topic is AR from the perspective of Layar, a Dutch company released its reality browser application Layar last year. This mobile browser shows people what is around them by displaying real-time digital information on top of reality they view through the device camera. On top of the camera image Layar adds content ‘layers,’ which are the equivalent of Web pages in normal browsers. The platform allows customers, such as businesses, the ability to offer a range of layers, allowing consumers to see houses for sale, popular bars and shops, jobs on offer in the area, and a list of local doctors and ATMs by scanning the landscape.

Maarten Lens-FitzGerald, Layar Co-founder & VP of Distribution and Marketing, discusses the ways AR enhances reality and paves the way for real business models.

INTERVIEW WITH MAARTEN LENS-FITZGERALD

Q: Augmented Reality has been around for almost 20 years, but mobile AR exploded last year, when penetration of smartphones equipped with GPS systems, compasses and accelerometers increased. What level of interest are you seeing?

A: In the week that we launched the iPhone app we had over 100,000 downloads and we served over a million augmented views to the world. Currently, there are over 1,500 developers and over 300 layers have been published.

Q: How do you make money on Layer?

A: It’s free for the user and it’s free for the content provider or developer. Where we make money is placement. To understand this we have to understand the user experience. Starting up the Layar application automatically activates the camera. The embedded GPS automatically knows the location of the phone and the compass determines in which direction the phone is facing. Each partner provides a set of location coordinates with relevant information which forms a digital layer.

There will be lots of layers, just as there are Web pages. The problem will be discovery. We address this by allowing companies to participate in our Pay for Prominence program. When users start Layar, it starts up in the Favorites list, which is like Bookmarks on your Web browser. Those positions are for sale. The same goes for the Featured section, a section where companies can pay for placement to reach the more advanced users who come back.

Q: How do you make these layers relevant to me and my context?

A: What we serve in the Favorite and Featured sections is all based on your region. If you’re in the U.S. you won’t see the Dutch layers, for example. So, based on where you are, you select a layer and we send the request through our server to give you the relevant content. If you open up the Trulia layer to find homes for sale, you will be shown houses around your location.

Q: How do you see your pay for placement model evolving? Will you harness personalization or targeting?

A: That is how it will develop. What we do now is help content owners get on top of the stack of layers, much in the same way that Google has AdWords. We will have premium layers where companies can pay to add something to a layer relevant to their offer.

In the future, the browser will know who you are, and that you’re ready to go out, for example. Based on this the top layers you see will be layers about places to go, a lot like restaurant review guides. Some of these listings will be paid for by the restaurant owners or businesses who want to appear in the layer, the same way they advertise on Web pages, for example.

Q: You focus on advertising in this example. Is that the big growth opportunity?

A: It’s for the businesses that need to provide to their customers information right here, right now. I’m looking for a house for sale, so show me one. But it’s not just about real estate; it’s about goods and services nearby in the real world. Where is the bus station? Where can I get a taxi? Where can I get a bite to eat? Any business that has to get this information out to us can benefit from AR. And to enhance this we have added the ability for businesses to provide AR experiences complete with 3-D objects and interactivity.

Q: AR is a nascent industry. What is the value chain and how do you work with other players in your ecosystem, such as operators and brands?

A: We’re in for great ride and, as an industry, we’ll see come change and consolidation. In the end there will only be one or two companies that have the browser and the platform, and will grow from there. I see that happening and within the next six months.

How the value chain is shaping up? Actually, it’s not a chain; it’s a web and it’s all connected. On one hand, we have the users and we’re working on a better user interface to satisfy them. An example of this is our 3-D release, for which we also need new 3-D content and the content developers.

On the other hand, we have the device manufacturers that we talk to in order to get pre-installation deals and also ensure their devices work well with our software, and vice versa. Then we also talk with the carriers about where we can get pre-installed and have a unique offering with Layar.

Q: What is your vision for what AR can enable and how that will impact our lives moving forward?

A: An experience that is very core to AR is the ability to walk around and experience other worlds and walk around in a city the way it was a century ago, for example. That kind of storytelling will enable the creation of immersive experiences. It’s easy to imagine the benefit to education. It will be like being able to not just read a book, but actually visualize it. This is why we added 3-D and interactivity.

AR will also be a boost to vendor relationship management, putting the individual in control of the information they will accept based on their needs. Put another way, AR will allow people to issue a ‘Request For Proposal,‘ which businesses can answer.

Let’s say you’re looking for a table for four in a Mexican restaurant. You put that information out and people are only then allowed to see your profile and to reply to you using AR. So, a restaurant owner might pop up in front of you, saying, ‘hey, I’ve got a table and we have good food – so take a look at the reviews here on the Web and then come on over.’ If you end up going to that restaurant, then we might get a percentage of that deal. That’s a model we’re looking at.

We’re also looking at ways to benefit organizations such as the Heart Foundation in Holland. In time for Valentine’s Day we will make it possible for people to buy and display a 3-D heart in front of the house where their loved one lives, for example. The money will go to charity and people who walk around the city will see all these hearts placed by people who are expressing their love.

LAYAR STATS & UPDATE

To update the interview (conducted in late 2009 for inclusion in the Netsize Guide) I caught up earlier this week with Claire Boonstra, Layar Co-Founder.

According to Claire, the company has two major milestones to report.

One will be public in June, when Layar plans significant announcements during a press conference at Amsterdam HQ.

The other was just last week when the company launched a kind of AR app store/marketplace giving publishers on the Layar platform the opportunity to monetize their content for Android and iPhone platforms.

Specifically, publishers and developers (such as Berlitz, which was one of the first publishers to offer an AR city guide using the marketplace) can now create AR content, syndicate it on Layar’s platform and charge people a small one-time fee to access it.

The biz model: Layar is facilitating the marketplace – which uses PayPal to process the actual transactions – allowing people to buy and sell layers in the U.S., the U.K. Canada and Australia. Layar takes a 40 percent cut of the sale (compared with the Apple App Store that takes 30 percent) to pay costs associated with legal, admin and banking.

The numbers:

• Some 550 layers are live and another 2,000 are in development
• 3,000 publishers worldwide are creating AR content for the Layar platform
• 1.6 million Layar AR browsers installed and pre-installs on LG and Samsung models, as well as devices supported by Verizon and Sprint (with more to be announced “in the coming months”)

The takeaway: The opportunity: the 60/40 rev split may be more than the 70/30 we know from the Apple App Store, but this is a marketplace aimed at jumpstarting a real business for AR publishers. Making it way to do business (and enabling payments) is a value-add and Layar can extract value for it. Overall, a marketplace could bring mobile AR, which has long lagged behind desktop AR, a huge and necessary step forward.

THE NETSIZE GUIDE

The Netsize Guide – which features exclusive interviews with 28 industry senior executives at leading companies and organizations including Havas, M&S, MMA, Nokia NAVTEQ, PayPal and Sony Music Entertainment — provides unique perspectives and reveals how players across the mobile ecosystem are preparing to meet the challenges and take advantage of the opportunities ahead.

The Netsize Guide 2010 also includes the results of Mobile Trends Survey 2010, an online survey asking +1,000 mobile professionals and practitioners across 67 countries their views on these key themes and their insights into trends that top the industry agenda, including the advance of mobile applications stores, progress towards global mobile commerce and the increasing importance of mobile across a range of business verticals.

Finally, the Netsize Guide 2010 presents detailed data on the wireless telecoms sector in 41 countries, including revenues, market shares and value-added service offerings for messaging and billing of 194 mobile network operators worldwide.

DOWNLOAD YOUR FREE NETSIZE GUIDE HERE.

Disclaimer: Netsize is an MSG supporter. Peggy Anne Salz is author of the Netsize Guide 2010.

This time the Carnival of the Mobilists – the line-up of the best blogs and bloggers on all things mobile – comes to us via Holly Kolman. Holly a first-time host, who – true to her blog title – is a real mobile enthusiast brings us COM #221. Kudos for an excellent job and I hope Holly will host another COM soon (!)

The line-up of blogs includes:

• A look at the recent announcement that Japan’s four leading mobile phone makers are teaming up with NTT DoCoMo to develop the operating system for DoCoMo’s next-generation mobile phones (via Ajit Jaokar @ Open Gardens)
• The real reason why Apple iPhone sales didn’t dip (via Tomi Ahonen @ Communities Dominate Brands)
• Refreshing realism on the iPhone and app opportunities (via Carl Martin @ Mobsessed)
• A welcome reminder to designers – and everyone in mobile – that not everyone will have or wants to have a smartphone (via new COM member Belen Barro Pena
• The potential headaches associated with supporting smartphones & the opportunity for operators to wring more value from helping their customs use them in the first place (two post via new COM contributors Amdocs)
• An in-depth look at opportunities in gaming and gambling (via James Coops @MobiAffiliates)
• More need-to-know mobile stats (via Andy Favell @mobiThinking – an excellent curator of key mobile advertising facts & figures)

PLUS Post Of The Week:

Humbled that this week’s pick is my own post on The Mobile Movement. By way of background, I have joined with entrepreneurs, humanitarians, artists & academics in a coalition committed to bringing mobile capabilities to non-profits in order that they may reach millions more people in need by leveraging mobile devices, networks and innovative applications created in partnership with social entrepreneurs.

On Monday I will update you on our recent advisory board meeting and the exciting projects in the works, as well as details about a new Knowledge Sharing event focused on mobile charity. (Disclaimer: MSG is aligned with the aims of The Mobile Movement and Peggy Anne Salz sits on the board of advisors.)

COM #220

Tsahi Levent-Levi over at Radvision steps up to host COM #220 – a vibrant mix of posts and insights that fits with the excitement that comes with the celebration of Israel’s Independence Day. Pay special attention to the post-even coverage and videos around this centerpiece event looking at the impact of technologies on our life and work in 2025. Another destination not to be missed: The Wadi – a new site/blog dedicated to the Israeli hi-tech industry. For links and details check out Tsahi’s blog post here.

Other posts included in the COM:

• A look at what iAd really means for the mobile space (via Carl Martin @ Mobsessed)
• How (and why) targeting can potentially increase conversions (via James Coops @ MobyAfilliates)
• An analysis that outlines the extent to which Android really is open source and the gaps that may alarm you (via Andreas Constantinou @ VisionMobile)
• Why mobile is the Here, the Now and the Future (via Antoine RJ Wright)
• A welcome roundup of stats showing why Asia will dominate in mobile (via Any Favell @mobiThinking)
• The security shortcomings associated with using Wi-Fi hotspot connection (via Martin Sauter @WirelessMoves)
• How Indian operator Idea Cellular is building a business on Pretones, content people can listen to while they call someone on their mobile phones (via very welcome COM newcomer Nikhil Pahwa)
• Musings on a possible Twitter business model that will likely become reality soon (via Ajit Jaokar @ Open Gardens)
• Tsahi’s own ideas on what videochat on the iPhone may be like

NOTE: Tsahi didn’t pick a Post Of The Week – so allow me to direct your attention to Andeas’ expertly researched and written post on Android. A real eye-opener!

COM #219

Although many of us tweeted our best wishes, a round of thanks to Antoine RJ Wright for hosting the COM #219 on his birthday. A gift to us all on his birthday is a summary of posts that set the bar.

These include:

• Management, tracking and targeting tips for your mobile campaign (via james Coops @MobyAffiliates)
• A rant about the Nexus (and all smartphones) with humor that reminds us what really makes a good user experience good (via “Mr Fat Fingers” Tsahi Levent-Levi @VoIP Survivor)
• Do companies really have a mobile strategy when all they do is launch an iPhone app? (a thoughtful post via Martin Wilson @ Indigo 102 – look for his more in-depth column on MSG soon)
• A look at what Apple results and sales really say about iPhone’s ongoing popularity (via Tomi Ahonen @Communities Dominate Brands)
• What does version 4.0 of the iPhone OS mean for developers? (via WIP Connector)
• A walk through the main points of Open Mobile (a book project I am proud to have edited) and a look at the 35+ mobile trends highest on the radar (via Ajit Jaokar @ Open Gardens) BTW: Ajit’s submission was chosen as Post Of The Week – all the more reason to read the post and download his book.
• A recap of Bible Tech (via our host Antoine RJ Wright)

COM #218

Carl Martin makes his debut as host of COM #218 and does a great job. We hope he returns to take the honors soon.

Meantime, here are the posts that made the line-up:

• A look at Nokia Bots: four mini-apps that bring new intelligence to our mobile devices –or do they? (via Antoine RJ Wright)
• MSG’s own analysis of why barcodes have a lot of mileage in the enterprise and beyond
• Must-read data points and details contained within the updated Global Mobile Data Market report (via Chetan Sharma)
• Mobile forecasts and milestones for 2010 (via Tomi Ahonen @Communities Dominate Brands)
• App promotion basics and a helpful list of companies, destinations and resources (via James Coops @ MobyAffiliates
• Are smartphones just PDAs by another name? (via Tsahi Levent-Levi @VoIP Survivor)
• A little phone geek fun (via Terence Eden)

COM #217

Martin Wilson takes the helm for COM #217 and leads us through an eclectic mix of posts and promotions people in the mobile industry need to know.

The line-up includes:

• Details on the forthcoming Mobile 2.0 Europe 2010 event (via the ever-active Rudy De Waele over at the new event website)
• An overview of the top developments and trends at CTIA (via Chetan Sharma)
• What is location really and where is the business value (via Martin Wilson and his guest column on MSG)
• A solid argument for the money – and the excitement – in Mobile 2.0 mashups that analysts might be missing (via Volker Hirsch @ Volker On Mobile)
• A discussion of affiliate marketing as a new and potentially much more lucrative way to monetize apps (via James Coops @ MobyAffiliates)
• An attempt to answer the question: when do apps make business sense (via PSFK, a New York City-based trends research and innovation company)
• A study of mobile commerce and a look at whether it is best suited to an app or a full-fledged mobile website (via Carl Martin @ Redweb)
• The decision my Mozilla to put its Windows development on hold (via Tam Hanna @ TamsPPC – the Windows Phone Blog)
• Are operators are confusing themselves and the market when it comes to defining (and understanding) mobile data? (via Declan Lonergan @ the Yankee Group)
• A podcast chock-full of highlights specific to the U.K. mobile market (via The Fonecast)
• To what extent can/does mobile education empower students to overcome a variety of physical and mental barriers (via Judy Breck’s guest appearance @ Handschooling.com)
• The inside track on BlackBerry’s popularity in the Middle East & a few surprising cultural causes (via Russell Buckley @ MobHappy)
• Expert advice to help you make the most of the Android G1 and Magic’s Limited RAM (via Dennis Bournique @ WAP Review)

COM #216

Tam Hanna hosts COM#216, a brief but appreciated summary of the top blog posts of the week. The On the heels of the industry-first report of the app market size and value, several posts choose to focus on the continuing app phenomenon.

Posts that made the line-up include:

• Highlights and data points from the milestone app report released by Chetan Sharma (via Chetan Sharma’s AORTA blog)
• A different perspective on the same report with additional insights and a podcast with GetJar, the number one independent app store worldwide (via MSG)
• An outreach from Verizon Wireless to developers (via WIP Connector)
• A comprehensive post that serves as a mobile marketing guide to Japan (mobiThinking connects the dots in observations made by Japan expert Christopher Billich)
• A hard and fair look at Adobe’s Flash mobile strategy (via Guilhem Ensuque @ Everything and the Mobile Software Universe…
• Why the 2.0 version of PayPal’s iPhone application could become one incredibly disruptive technology to the banking and credit/debit card industries (via Antoine RJ Wright)
• A run through a map app allowing people to reserve a parking space for their car (via Coldtags Suite)
• A look at mobile data charges and why transparency is just a part of the discussion (via Ajit Jaokar @ Open Gardens)
• A real life story reminds us of the collateral damage that can be caused by the wrong information when it spreads like wildfire via social media (via Dr. Jim Taylor @ Mobility Digest)

Again, no Post Of The Week was chosen. The app report is by far the most important industry news/trend. However, Jim’s thoughtful recount of a real-life incident illustrating how social media can ruin lives has my vote.

As he concludes: The story “demonstrates how the reputation and perhaps life of an innocent person can be summarily ruined as a result of an equally innocent, yet misconstrued, occurrence, poor due diligence and decision making on the part of people who should know better, and, ultimately, the power of social media.”

NOTE: If you want to submit your post to be considered for the weekly line-up by the COM host, then email your link by Sunday to mobilists@gmail.com. If you want to host a COM, then contact me directly (peggy@msearchgroove.com) Everyone is welcome to submit their post for consideration. Of course, there is no guarantee that all posts will be included in the final selection.

EDITOR’S NOTE:

* * *

Mobile phones – and specifically text messaging – are central to the lives of everyone everywhere on this planet. This is the message that came across loud and clear in this well-written analysis in the New York Times. To drive home this key point the article recounts how people in emerging and developing markets are using their simple mobile phones and SMS text to improve their lives, conduct commerce, transfer money, record and share sermons and even oversee elections.

Mobile has become the truly universal technology and text messaging – a flavor of people-powered communication discovered quite by accident by ordinary individuals eager to connect using their mobile phones – has become mobile’s first and truly universal language.

Granted, we increasingly use our mobile phones to explore the wealth of content on the mobile Web or browse the assortment of applications in our chosen device or mobile operator app store. But mobile is and remains central to our lives because we rely on it to connect with the people who matter most.

Put simply, texting is embedded into our mobile behavior.

Rafts of recent surveys show teens would rather text than speak, and even more have turned off their voicemail as a rule to show they mean it! Some five years ago Mizuko Ito, a cultural anthropologist at Keio University in Japan, observed in her book, Personal, Portable, Pedestrian, the emergence of “tele-nesting,” the practice–especially among youth in Japan, and now everyone everywhere –of staying in touch through a steady stream of text messages. In the West Alan Moore, author and founder of the Engagement Communication Consultancy SMLXL, reminds us that we are a “WE SPECIES,” individuals who are part of, and belong to, a bigger whole. Our messaging behavior reflects this enables us to achieve our ultimate goal: to (co-)create and share the narrative of our lives that adds meaning and value to us and everyone around us.

The simplicity of ordinary phones and the fact that people everywhere can use them to send and receive text messages opens up a world of opportunities. It also paves the way for global innovation that allows companies and startups everywhere to harness simple text messaging to achieve extraordinary results.

We’re already seeing evidence of a new breed of messaging services. And this is surely just the beginning. From life-simplifying reminders to life-saving medical advice, people around the world – particularly in emerging markets – are using text to connect, communicate and interact with companies, brands, medical doctors, government authorities and clergy – and the list goes on.

SPEAK TO US

The emerging markets may have a greater reliance on text messaging, but our appetite for messaging – and the value we receive on top of the text messages we send and receive — is growing.

This is the key finding of a recent survey of the U.K. market by Dialogue Communications, a mobile messaging and mobile payments company. It reveals more than 67 percent of respondents want more messaging in their lives.

According to the findings, respondents would welcome reminders and alerts via text for everything from medical alerts to bill payments. People said they wanted to move away from postal reminders because it’s convenient, reliable, easy to store and on a phone for future reference and simple to synch up with the calendars they already have on their mobile phones. (Again, messaging – all messaging – should be permission-based.)

And let us not forget the important fit between text and marketing, for all the reasons I have outlined above.

Destinations such as Mobile Marketer and Mobile Marketing Magazine document the success of messaging campaigns daily. Brands and agencies harness text to connect with consumers (an even more effective approach if the advertising is opt-in, of course). From soft drinks that use text messaging to deliver brand messages and links to downloadable content and perks, to large U.S. chains that cleverly use text messaging to deliver product vouchers and drive customer loyalty, the press is chock-full of case studies that underline the central position of text in marketing and advertising.

But we should not limit ourselves to just these. Paul Berney, Mobile Marketing Association (MMA) Managing Director Europe, has also said on several occasions that mobile CRM and mobile commerce loom large on the horizon as the next big opportunities for brands, agencies and all their partners.

I would take it one giant step further: messaging lays the groundwork for a much deeper – and potentially lucrative — exchange between a wide array of companies, advertisers and institutions, and the people who want to hear what they have to say. Brands want a dialogue with their consumers. What better and more effective way to achieve this than messaging?

Messaging in the proper context adds real value to our lives.

MORE MESSAGING MILEAGE

I have therefore identified three other scenarios where rich messaging – the mix of text and image we know from mobile advertising campaigns we have facilitated at Blyk on behalf of brands – could add significant value for everyone involved, including consumers.

1. AMS (Application Messaging Services): The heightened interest in ‘apps’ presents advertisers and mobile operators worldwide a new opportunity to deliver consumers a message they would appreciate in this context. We are witnessing the advance of services linked to reminders or alerts that connect with the mobile phone features and functionality to remind users us of birthdays, appointments and other important dates/events. Consumers have indicated that they would opt-in to receive these messages. Surely, this provides a perfect platform on which to deliver a related message or branded utility. And this could be so simple for handset manufactures. All they need to do is build on top of the functions they have already embedded into many phone models.
2. LMS (Location Messaging Services): The rise of travel advice and social media network services such as DOPPLR and WAZE point to a much larger trend: our willingness to receive messages about what’s nearby. From points of interest to traffic jams, consumers desire more information about their surroundings and have granted their permission to receive push messages that provide this detail. Again, this presents companies and mobile operators with an excellent opportunity to deliver a related and relevant commercial message. Done correctly this exchange might even lead to a transaction that consumers could perform using their mobile phones. The potential for mobile operators – the trusted keepers of our location data in the first place – are huge.
3. VMS (Value-Added Messaging): Here we are talking about real value to the consumer because these messages enhance and improve their lives. Mobile education and mobile health are two obvious examples. A global market survey of 3,000 consumers in six countries (500 each in Brazil, USA, Germany, South Africa, India and China) conducted by management consultancy McKinsey & Company suggests that mobile health (m-health) opportunities in 2010 could be worth between $50 and $60 billion in 2010, a finding that has prompted mobile operators – and the GSMA – the professional organization that unites nearly 800 of the world’s mobile operators, as well as more than 200 companies in the broader mobile ecosystem — to step up initiatives. According to the research, the vast majority of respondents were interested in the following services: PhoneDoctor, a service that would allow people to call to speak with a qualified physician for remote diagnosis and advice, and HealthWatch, a SIM embedded biosensor watch that monitors vitals, and is connected to emergency services. It is easy to imagine how companies – through sponsorship and commercial messages — could align with these services to deliver related information, offers and real value to people everywhere.

Clearly, our messaging behavior powers of a wide variety of use cases and scenarios. What’s more, as a WE SPECIES we have come to expect – even demand – a two-way conversation with the companies delivering messages to our phones.

From bank statements to medical advice, from appointment reminders to public opinion polls, from location-linked services that tell us what’s nearby to mobile CRM services that ask us if we are satisfied with the service we just received at the checkout, messaging impacts people’s lives and lifestyles at all levels.

It also paves the way for new business models and combinations of models that harness push, permission and personal context to benefit companies across the ecosystem and – most importantly – consumers.

I have identified three areas of new messaging opportunities where companies, provided they apply the same rules of engagement, can reap tremendous benefits and build long-term customer relationships built on trust and respect. I expect to see much more innovation in this space –and I welcome it wholeheartedly. If you are thinking about new opportunities in messaging or have an application success story to share, please reach out to me directly to continue the dialogue. After all, two-way communication always produces the best results. (antti.ohrling@blyk.com)

* * *

Antti is the Co-Founder of Blyk, the messaging media that works with mobile operators to link young people with brands and other stuff they like. He has over 25 years experience as a senior manager in branded goods, retail and wholesale, TV& film and advertising industries. Antti is also founder of Contra Advertising Group, today part of Touch Worldwide. He serves as Chairman of Contra China, an advertising agency specializing in mobile and social media marketing based in Beijing. In addition, Antti is a Fellow at the RSA (Royal Society for the encouragement of Art, Manufactures and Commerce) in the U.K. and a regular speaker at lectures on innovative business strategies and brand issues worldwide. For more information about Blyk, check out the company profile and explore the collection of customer case studies.

Disclaimer: Blyk is an MSG supporter. This is another in a series of columns by Blyk examining mobile advertising strategies and business models.

What do developers really want/need in order to make apps and (ultimately) make money?

Why is this question key? Put simply, the companies that get this right will have insights to build the correct mix of capabilities to forge and support a tight-knit developer community, creating relationships that will allow them to take a central spot in the emerging apps value web (not chain – it’s not that kind of a game).

There are no easy answers, but the panels and discussions during the dev day confirm that developers — creative people who are interested in cash AND community – are likely to gravitate to platforms and app stores that help them cultivate and connect with their fans.

LITMUS LEARNINGS

I first started thinking this through during Mobile World Congress (MWC) and the no-holds barred session I moderated on OneAPI. The panel – made up of the architects behind this milestone move: Nauby Jacob, VP, Users Experience, Bell Canada; Larry Baziw, Director Next Generation Services Strategy, Rogers Wireless; SandipMuckerjee, VP of Business Strategy and Marketing, Alcatel Lucent; Shane Logan, Director, Services and Collaboration, Telus; and Al Snyder CEO, Aepona – examined what developers require and how/why operators and enablers can/must work together to deliver. The positive feedback has been overwhelming and I have reached out to each of the participants to participate in a follow-up roundtable podcast on MSG, so watch this space.

(By way of background, the GSMA launched the commercial pilot in Canada as part of its OneAPI initiative, working with Canada’s leading operators to demonstrate the viability and benefits of providing developers standardized APIs for mobile networks. The pilot in Canada – the topic of my MWC panel – represents the first time developers are able to gain commercial access to the network assets of multiple operators from a single gateway. )

But it was the opening presentation by Paul Golding – pioneer, long-time thought leader in the mobile applications space and, more recently, a consultant to O2 Telefonica — that challenged everything we (think) we know about developers.

When Paul took the podium and showed the opening slide – where he had purposely crossed out the title of the planned presentation and replaced the words “Supporting Developers” with “EmPOWERING Developers” — it was clear that this was no marketing-speak. His message to us: Developers need feature-rich APIs and much, much more. (Indeed, Paul’s thinking on this topic left a deep and lasting impression, and I am pleased to report that Paul has agreed to join MSG’s roster of authors and contribute a guest column that builds on his simple, elegant and path-breaking ideas.)

In his presentation (here on SlideShare) Paul introduces three kinds of “power” that interest/attract developers most.

CONNECTED POWER is all about the APIs and platforms that allow developers to reach customers; CASH POWER is all about the APIs and platforms that allow developers to earn money (directly or indirectly); and COOL POWER is all about the APIs and platforms that allow developers to do something cool and interesting (translated: innovate).

Sure, it’s about technology (CASH POWER). But it’s also about harnessing everything we know from the business books about encouraging and channeling creative energy to cultivate developer communities that make great apps to delight the customer (CONNECTED POWER).

And – with a nod to Eric von Hippel, my favorite interview, author of Democratizing Innovation and THE authority on innovation – it’s about connecting developers with their lead users — the users who have a high incentive to solve a problem and the ability to innovate (COOL POWER). Combine all that (translated: enable all that) and it can yield a developer community and a selection of apps that can truly set the bar.

As Paul pointed out: O2 Litmus has recruited 7,000+ O2 UK customers and then helped developer connect with them to gain insights and – interestingly – lay the groundwork for a kind of app developer fan club that provides developers important feedback and critical buzz. (After all, fans will share their picks of favorite apps and cool developers with others – creating the same kind of virtuous cycle than can catapult local bands to rock heroes.)

Paul has an even better idea: Operators can help the process by simply putting fans in touch with developers. “Add some other cool brands to the mix and then let things happen.”

At this juncture, I am also reminded of Mob4Hire and the traction it has gained for its awesome concept which combines crowd sourcing with app testing. It’s a super-sharp business model that Paul Poutanen, Mob4Hire President and Founder, tells me he is expanding to allow people testing the apps to rank/share the ones they like most with everyone else. A great grassroots way to help apps get discovered and gain mindshare. More about this in an exclusive interview with Paul later this month.

The takeaway here: helping developers connect with people (fans) is emerging as key requirement of app stores and platforms.

NOKIA DEV DAY

When Mobile Monday Austria reached out to me to speak at its event over the weekend, one that also allowed me access to developers and other people who love mobile, I was thrilled. It offered me an important opportunity to sanity-check some of Paul’s key messages and test a few of my own ideas about the future of app marketing.

Cool Power: Yes, it matters – a lot! An informal poll of developers yielded a welcome confirmation of the qualities platforms/app store providers must have beyond awesome, rich-feature APIs. Put simply, developers require “partners” that help them create apps and generate revenues. And they will align themselves (eagerly) with those companies that make a conscious effort to help them connect with customers, cultivate fans and allow them to feel that they have made a contribution that matters in the scheme of things. For some developers, a functioning feedback loop tops the list. For others, being able to believe that the platform provider really listens, absorbs, respects and internalizes constructive criticism is paramount.

This came across loud and clear when naxxatoe, a developer in the audience, took the microphone to tell Nokia execs what should be at the top of their Ovi agenda. “It’s about connecting people,” he said, unaware of the play on Nokia’s own motto (Connecting People).

Kudos to naxxatoe for saying what had to be said and my respect goes to Jure Sustersic, Forum Nokia Biz Dev Manager EMEA, for seeking out naxxatoe and other developers between sessions to hear them out on what they loved – and hated – about Ovi. (Inspired by this exchange I have decided to produce an informal series of podcasts to give these developers a voice. My sincere thanks to naxxatoe for challenging me to think and see things very differently. I look forward to showcasing his ideas in the first in the series later this month.)

SUPERMARKETS VS FARMERS MARKETS

Regular readers will know that I am a great believer in the individual. We will accept the content we want on our terms – and we are most likely to accept content (and mobile marketing/advertising can be considered a form of content) if it is in tune with our interests, passions and context. Mobile (an intensely personal device) allows us to communicate all of the above, allowing (with our permission!) content and services companies a way to connect the dots and provide us with stuff (content, services, apps, advertising and all things digital) we are likely to appreciate.

Obviously, there is little room in the scheme of things for one-site-fits all. In fact, our requirement (even demand) for stuff we want the way we want it sits at the core of the Long Tail. While Chris Anderson didn’t explore mobile in his milestone book, we have nonetheless witnessed the impact in mobile. It began with an avalanche of content and then a plethora of portals where we could find it. (Well – content discovery and search is another issue altogether…)

Fast forward and we are witnessing the emergence of a Long Tail of app stores.

My Mobile Monday presentation (which included the findings of the recent Netsize Mobile Trends Survey) explored the evidence for this mega-trend and why this could be good news for developers. For one it means more choice for us (a key requirement for a successful app store, according to the Netsize survey). But it also means more choice for the developers, many of whom told me they are actively seeking alternatives to the Apple app store where they have to beg for shelf space (so that their app might be accepted/included) and then pray for promotion (so that their app might be featured where people can find and buy it).

With 25+ app stores and counting we can’t say we have a Long Tail. But there are more options then ever before. Want an enterprise app? A good chance you might find it at Ondeego. How about a porn app? MiKandi is a good bet. And the list goes on…

With these observations (and in preparation for my talk) I reached out to Mike Lurye, Director, Product Marketing Amdocs Interactive. After an invigorating brainstorm session we agreed that there will be many kinds of app stores, managed in many different ways.

There will be Supermarkets (app stores such as the Apple app store) where the provider gives suppliers shelf space, sets the prices and is pretty much focused on moving merchandise and making money. And there will be Farmers Markets (niche app stores and operator app stores – and combinations of the two) where the relationship between the supplier (a farmer with fresh produce) and the customer (people who really appreciate the opportunity to buy organic) is what clinches the deal.

Surprisingly, it was this observation and the suggestion that there will be marketplaces that fit their needs that got the buzz. Developers took the microphone and told me they  would indeed want to sell their apps via a farmers market – if they could. Several even asked me how they could get into contact with a Long Tail app store.

And – thanks to Mike – I can point to a little known example that shows this approach is not only an ideal – it is also an ideal business model making money – now. (BTW, I am also pleased to report that Mike has also agreed to a podcast to explore the supermarket/farmers market analogy and much more! I’m scheduling the appointment as we speak, so check back regularly or follow us on Twitter.

MALAYSIA SHOWS THE WAY?

Malaysian mobile operator Maxis has an app store and a mission: “to nurture and foster interesting developer applications for our community.” (An excerpt from this must-see video interview with Nava Wathan, Director 1Maxis, Maxis Communications.)

In Nava’s view, the operator app store is not impacted by handset app stores because consumers “will go both ways.” They will go to the Supermarkets (my wording) and they will also visit the Farmers Market. In the case of Maxis, the farmers market approach revolves around its sharp focus on local Malaysian apps “more relevant to the Malaysian consumer.” Thus, Maxis is the place to go for “something that is Malaysian.”

But it’s not just about enabling choice; the operator benefits from enabling payment. Maxis has opened up billing APIs for micropayments in apps and is looking to do the same for location, P2P sharing and advertising (allowing the developer to pull an add from Maxis instead of talking to ad agencies around Malaysia).Finally Nava sees that his company can also play a key role in connecting its developers with markets outside Malaysia. Put another way, Maxis can expand the reach of local developers by “surfacing our apps from our local developer community” on app stores run by the handset makers.

My take: As my upcoming series of podcasts will show, developers want to make money but they also demand a feedback channel that will allow them to consistently create better apps for their fans/customers. (After all, recurring revenues are the key to real and sustainable business). They also want some more say in how their apps are marketed and assurances that the app store/platform provider that they – like a farmers market – will do what they can to help developers build and nurture the relationships they need to innovate and – ultimately – succeed. One-off sales or fan following? Developers appear to want the latter. It’s now up to the providers to decide what they want to be (supermarkets or farmers markets) and execute. I know that Nokia has taken careful note of developer’s gripes and suggestions during the event and I will reach out to Nokia soon for their thoughts.

***

My personal thanks to the organizers of this excellent event — Aleksandra Schmid and Philipp Nagele (Mobile Monday Austria) and Mark A.M. Kramer. It was a great idea to link a mobile developer event with a Mobile Monday. It has exposed me to new ideas and allowed me to make some new friends. Warmest regards to naxxatoe and to the other developers who connected with me to share their platform likes/dislikes, and to Dave Dempsey from Radio FM4, who moderated the event and brought some valuable views into the discussion. If ever someone has the interest and empathy to bridge the divide between developers and everyone one else it’s Dave. I hope someone reaches out to him to do just that…I’m sure the results would rock!

Overall, Smaato’s metrics show that the average worldwide ad network fill rates remain constant at 29 percent in February 2010. The fill rate is measured as the percentage of ads delivered per ad request and varies by different factors, like country, device, content type.

Smaato’s Index also provides a breakdown of CTR data, segmented according to operating system, showing that Symbian continues to lead the pack, with Android a distant second. However, there are some significant shifts that indicate the gap between operating system CTRs could be closing fast. For example, BlackBerry comes in at 51, up from 30 in December 2009, while Symbian – still the dominant operating system – has dropped slightly. It comes in at 147, compared with 173 in December 2009.

However, the biggest surprise is the lead Windows Mobile has over Apple. Specifically, the iPhone and iPod Touch show a declining CTR, coming in with a rate of 89. This is the first time Apple devices have dipped below the average Index of 100, and the first time that Windows Mobile has edged ahead of its rival. In December 2009 the iPhone posted a CTR Index of 119, sliding to 104 in January 2010.

PERFORMANCE

Overall, the best performing mobile ad network in the Smaato Worldwide Index had a fill rate of 72 percent February 2010, down 17 from January. Despite this decrease, the average for worldwide ad network fill rate performance remained steady at 29 percent. What’s more, Smaato found that six of the top ten ad networks performed above this average. This re-enforces the pivotal importance and potential advantages of the network aggregation business model. Smaato embraces the model (aggregating 35 ad networks worldwide) to deliver partners a high fill rate.

By way of background, the first metrics report, which Smaato released in January, identified the mobile networks in the U.S. that delivered the best performance by name. This month’s metrics don’t divulge the identities of the best-performing ad networks in the U.S. – but I can imagine Millennial Media is in the winner’s circle (again).

Speaking of the U.S., the average fill rate of mobile ad networks in the U.S. hovers at 35 percent, a decrease compared to January 2010 (fill rate – 47 percent) and December 2009 (fill rate – 55 percent). However, closer examination shows that the U.S. fill rate is still significantly higher than the worldwide average fill rate of only 29 percent.

Smaato metrics further show that the two top-performing ad networks in the U.S. also improved their fill rate. One network came in at 78 percent (up from 68 percent in January) and the other reached 64 percent (up from 61 percent in January).

SPOTLIGHT SOUTH-EAST-ASIA:

For the first time Smaato metrics examine fill rates in South-East Asia (Singapore, Malaysia, Indonesia and Philippines), markets where mobile marketing and advertising are buoyant. Overall, the fill rates reveal that two ad networks are performing head and shoulders above the others, coming in with 90 percent and 87 percent fill rates in this region. Overall, the fill rates show a similar spread to those recorded in the U.S.

South-East Asia’s average fill rate of 32 percent is considerably higher compared to that of India’s, which came in at a mere 8 percent in the January Smaato metrics report. As Smaato CEO & Founder Ragnar Kruse sees it: This demonstrates the large differences across the Asian market and the need for developers to search for different partners or a mobile aggregation and optimization service.

The breakdown of the CTRs by operating system in this region provides an interesting and insightful picture of what devices users have and how they interact with mobile advertising.

Interestingly, the iPhone and iPodTouch dominate the region with a CTR Index of 164 followed by Symbian (127) and Android (124), while Windows Mobile comes in at the bottom of the table with 56.

PODCAST SERIES BACK BY DEMAND

In addition to providing us the inside track on what Smaato sees across its network of partner ad networks, the company is also sharply focused on cultivating a robust mobile advertising business ecosystem in which in can play a leadership role. To this end Smaato also dedicates significant resources to identify and encourage mobile advertising pioneers and innovators.

A prime example of this is the Smaato Mobile Advertising Award, which recognizes excellence in the mobile advertising and developers harnessing mobile apps and the mobile Web that can also be tapped to deliver compelling messages and campaigns to consumers worldwide.

Among the top three winners – chosen by a world-class jury of leading influencers of the mobile community including MSearchGroove – were: Aloqa, a U.S.-based mobile service that proactively notifies people of interesting places, events, music, movies and other activities nearby; Waze, an Israeli startup that taps the wisdom of crowds to provide real-time maps, traffic information and turn-by-turn directions; and Yoose, a provider of mobile coupon and loyalty programs based in Germany.

To showcase these high-flyer companies and their views on industry hot topics including engagement, location services, mobile couponing and crowd-sourcing Smaato has collaborated with MSearchGroove to produce a special podcast series showcasing the three company CEOs. In the interviews, which originally aired in time for the Mobile World Congress in February, the executives also comment on the meetings with eight top-notch VCs – high-level introductions that are part of the Smaato Award.

***

Listen to the Waze podcast with CEO Noam Bardin here. [4:38]

Listen to Yoose podcast with CEO Christian Geissendoerfer here. [4:44]

Listen to the Aloqa podcast with CEO Sangeev Agrawal here. [4:43]

My take on the winners and the trends: Mobile advertising is content, and its value to us is inextricably linked with its ability to entertain us, inform us or simplify our lives. Waze harnesses our personal mobility and our position as nodes in a larger network to tap the wisdom of invisible crowds to deliver tangible benefits combined with a super-cool user experience.

Location isn’t the killer app we thought. But an app that combines location awareness with technology that can read the clues we leave behind – to passively personalize our experiences and present us with precisely what we are likely to appreciate based on our likes and dislikes — AND offer brands and nearby establishments a chance to monetize that fit – covers all the bases to be a crowd-pleaser.

Another trend that impacts mobile advertising is the avalanche of software applications (apps) that have transformed what we do with our devices. As our focus shifts from novelty to utility we will vote with our feet, visiting those websites that allow us to do what we want, quickly, easily and intuitively. Therefore, Aloqa, which ties together location, social media and a push-approach to local search, is well-positioned to benefit from our increasing focus on finding what’s important to us nearby. The clever decision to open APIs to third-party publishers ensures that Aloqa will cover the long tail, which is where the money really is in local in the first place.

And finally, a comment on Yoose. We know from looking at Japan and Korea that mobile coupons and mobile commerce can be part of our daily mobile experiences – provided the experience is seamless and simple. Yoose has developed more than a website; it has perfected a work flow that could move couponing out of the chasm and into the bowling alley.

Moving forward, Smaato will join MSearchGroove’s growing roster of contributors and collaborators.

Disclaimer: Smaato is not an MSG friend – but not a partner/supporter.

Last year was one company milestone after another: Nimbuzz updated the app on iPhone, released a version for Blackberry, introduced VoIP for Android and launched Twitter for Symbian handsets. It also sealed deals to be pre-installed on the T-mobile Tap Phone in the U.S. and on the Toshiba TG01 handset offered by O2 in Germany.

To connect the dots in last year’s accomplishments and get the inside track on Nimbuzz’ next moves I caught up with Tobias Kemper, VP of Nimbuzz Inc. USA. Many thanks to Tobias for a straightforward interview and unexpected insights into the product roadmap.By way of background, Nimbuzz – winners of the Techcrunch, Webby and Red Herring awards – counts over 14 million users in 200 countries, a number growing at around 40,000 new users per day (that’s 1 every 2 seconds). It counts over one million voice calls per day (over 300 million per year).

Other podcast highlights:

PLATFORM STATS: Nimbuzz supports all the usual suspects: Symbian, J2ME, Android, iPhone, iPod touch, Windows Mobile and RIM. So what flies? “Symbian is definitely our number one, directly followed by Java and the iPhone.  We’ve only just launched a native RIM client with massive uptake….The iPhone has definitely done a tremendous amount and continues to, but Symbian is the most dominant player.”

USAGE & BEHAVIOR: There are distinct and interesting differences depending on the geography. “In the Middle East, for example, people use our products like nothing else to meet people [and] enter the chat rooms. They treat those like mini-social networks, so it’s really going beyond the technology of just making a free call….In the developed countries — Western Europe and North America — it’s all about being able to monitor your friends, having everyone in the same place, reading everyone’s status messages and being able to tap in and say ‘OK I want to get in contact with this person right now.’”

BUSINESS MODELS: Mobile marketing and advertising are candidates, but mobile CRM is highest on the radar. Even better if it involves brands. As Tobias put it: “A mobile social messaging application like ours is perfectly positioned to foster brand engagement.  It is something that we’re looking at because it’s an always on product, it’s a very intimate device that the product is based on and it is something that we are going to be exploring more in the next year.  It definitely makes sense, it has to be done right and it has to be with the user focus.”

NEW FEATURES IN THE PIPELINE: Look for some surprises and more mobile operator partnerships. Again, Tobias is understandably reserved. What we know: “There’ll be a whole bunch of features that are going to be built on top of location-based services that are being built out and become more contextually relevant.”

My take: Hmmmm… contextual relevancy is an element of a range of exciting – and potentially lucrative –services.

So, will Nimbuzz join the group of hot mobile location-sharing services that includes Foursquare, Gowalla, Brightkite and Loopt – to name a few?

It’s a tough one to call, but Nimbuzz could make the move.

What does Nimbuzz think? Tobias is understandably tight-lipped but his admiration for companies like Foursquare and plans to add “similar features” comes through loud and clear. As he puts it: “It’s about moving beyond the technology and doing that face-to-face meeting. [It's about] what we can do to make that easier and aid users in using that feature and making real-life interactions happen through our application.”

Communication and community are baked into the app, and a whopping 98 percent of people who use it recommend it to a friend. That keeps Nimbuzz’ marketing budget down and boosts its viral appeal. Surely those metrics lay the groundwork for a more ambitious strategy and a new ecosystem around personal recommendations of real-life places and establishments…

Listen to podcast here [15:50]

Mobile advertising continues to be a good news/bad news story. And your view seems to depend on the news you want to hear.

November was a stellar month for mobile advertising. Google paid an eye- watering $750 million to acquire 3-year old AdMob, a Silicon Valley-based leader in display and iPhone ad formats. Google is not one to waste money, so you can imagine what a huge opportunity mobile advertising really is (even if the rest of the industry is blinded to it) if a Web giant is willing to pay almost $1 billion for a company with mobile expertise. I wonder if we won’t look back in two years and say it was steal…

At the end spectrum, there are always industry pessimists who ask when mobile advertising will finally be big business. However, I must also note (with a grin) that many of these nay-sayers are large publishers (can’t name names) who are 1) amazed by the tremendous traffic to their mobile Web destinations and 2) clueless about how they might harness mobile advertising and monetise these eyeballs.

And let’s not forget the mood among traditional media players. Doom and gloom everywhere you look: newspapers, direct mail, TV, radio, yellow pages, outdoor, magazines and PC Internet.

In fact, the BIA Financial Network (BIA), parent of the Kelsey Group, forecast spend on these media to decline to $144.4 billion by 2013 from $155 billion last year.  But there are winners among the losers. With budgets under pressure and advertisers beginning to demand far more tangible results, traditional media – such as print – is likely to be hit far harder.

Marketers have long realised this trend and increasingly turn their attention to online and new media channels. Against this backdrop, online commands an ever-increasing share of spend. BIA has forecast the new media share globally to grow from around 9 percent today to over 22 percent by 2013. Moreover, a recent study from Pricewaterhouse Coopers (PwC) predicts by 2013 the new media share of advertising in the U.K. will be around 34 percent.

Clearly, the advertising market is going to shrink and see a substitution of spend. It’s a trend that squeezes traditional media and spells opportunity for companies that either play in new media or migrate value to their online assets. Thus, your chances of survival are a measure of your willingness to rethink your media business models and refocus your operating principles.

MOBILE MATTERS

The media futurist Jeffrey Cole points out that the biggest challenge companies face is their own reliance on traditional advertising models. “The problem [is] people often believe there is enough life left in the ‘old advertising model.’” While many companies are still waiting for traditional advertising techniques to deliver, Jeffrey is convinced that the “big breakthroughs will be digital advertising developed by those who grew up their entire life with digital media.”

If Jeffrey is correct, and I believe he is, then mobile – a personal medium digital natives regard as an extension of themselves – is where we will see the meaningful innovation and positive business results.

Indeed, mobile continues to be the bright spot in a raft of recent industry reports. Then market outlook is even more buoyant when it comes to advertising approaches that successfully combine location and promotion.

The Kelsey Group, a research firm specialised in location-based services, expects mobile local advertising revenue alone to reach more than $3.1 billion by 2013, up from just $160 million in 2008. Meanwhile, Gartner forecasts total spending on mobile advertising to grow to $7.5 billion in 2012, up from $530.2 million in 2008.

Connect the dots in these reports, and mobile advertising revenues could outstrip anything that has gone before, making mobile one of the fastest growing advertising channels of all time. A remarkable feat when you consider that the overall advertising industry (traditional and online) will continue its decline. No wonder Google was so keen to snap up AdMob and stake its turf.

WHY WILL MOBILE GROW

In a word, mobile is different. While other media may be limited to a time or context in our daily routines (print in the morning when we read the newspaper on the train and TV when we get home in the evening), mobile is a 24/7 channel directly to us.

Look at it this way and mobile ticks so many marketing boxes that you ignore it at your peril.

• Mobile is a life-line for the 18 to 30- year old demographic, a very attractive demographic to marketers and notoriously difficult to reach.
• Mobile is a personal device and rarely shared, making one-to-one marketing a real possibility.
• Mobile is present at the point of purchase, providing marketers a channel to influence people’s brand choice and encourage the all-important impulse buy.
• Mobile is measurable, allowing marketers insights into campaign performance and their ROI.

However, for most brands and media owners, mobile remains one of the great untapped channels.

WHO WILL “GET” IT?

Not everyone is blind to the tremendous opportunities at the intersection of local information and advertising approaches. In fact, there is a staggering number of players across the ecosystem jockeying for a lead position. At one end of the spectrum you have the search engines and platforms: Taptu, MCN, Google, Yahoo, and Microsoft, just to name a few. At the other end, you have dozens of directory publishers (Yell, Pagine Gialle, Pages Jaunes, etc.). And let’s not forget the social networks, media owners, verticals, handset manufacturers and mobile operators all lining up for a slice of the action.

The market is crowded. But, if companies continue with their current approaches, then a shake-out is imminent.

To be clear, only a handful of mobile players have what it takes to be highly successful. The barriers to entry, the complexities of the mobile channel and challenges of distribution and discovery make this a game for deep-pocketed players. But other companies have an equal chance (even if they don’t have equal budgets) if they use mobile in a smart and meaningful way to deliver real value to the consumer.

WHAT WILL MAKE A WINNER?

The winners will be the companies that have much more than content (such as local listings, for example). It will be those players that have the capabilities mix to deliver mobile consumers a contextual, relevant and tailored offering. This presupposes the know-how to deliver to the device capabilities, provide consumers the features they expect, enhance location information, support social and viral distribution and add value through marketing and advertising.

It may sound simple, but why are so many companies still getting it wrong?

In my view, they lack focus and an understanding of the mobile channel.

In contrast, companies succeeding in mobile are those players that have recognised the gaps in their knowledge of new media and brought in professionals that do. (Even better if these professionals are themselves digital natives with an instinctive grasp of mobile and its impact on every aspect of our daily lives.)

Leading digital agencies such as AKQA and Ogilvy, and progressive media owners including the BBC and Sky have long had dedicated mobile teams in place. Now other companies are following their lead, dedicating more resources to mobile or buying in skills as they need them (either because they believe in the true potential of mobile or because they have been pushed into mobile by brands who understand how important it is to engage with consumers on their personal device).

If you doubt that mobile demands experts with a different skills set, then consider the real reason Google acquired AdMob: it’s easier (and cheaper) to buy skilled people than make the investments and risk missing the mobile advertising opportunity altogether.

While many agencies and media companies have a long way to go (and a lot to lose), it is encouraging to see so many brands moving full-steam into mobile and reaping real benefits. The list of successful campaigns is impressive: Guinness with its ‘Passport to greatness’ campaign, British Airways with its ‘Mobile check-in’, HSBC with its ‘Business banking’, Sky with its ‘Remote record’, the BBC with ‘BBC mobile’ and the New York Times with their NY Times iPhone app. It is interesting to note that all these companies have dedicated teams or experienced agencies that understand usability and what makes mobile different. Even if these brands appear to experiment or treat mobile as a separate business, they are serious about mobile’s position as part of the digital marketing mix.

WHERE ARE THE LOCAL CONTENT OWNERS?

Brands are leading (not all – but we have more solid case studies than last year), agencies are learning and everyone else is at least talking.
So, where are the director publishers? They are the only players with content and vast experience in traditional advertising who have yet to make the most out of their digital assets. They should have a natural edge over their competitors, but, as I pointed out in my last column for MSG, they are leaving money on the table.

Indeed, directory publishers are best placed to deliver compelling local mobile services and – importantly – commercialise them through advertising. After all, they have existing customers and a powerful sales force to sell advertising products.

It appears that directory publishers are so focused on the business challenge that they can’t see the opportunity mobile represents. This, unfortunately, leave the  door wide open to Google & Co, companies that “get” mobile and understand the value of listings.

WHAT DO THEY NEED?

To close this gap directory publishers must stop thinking of mobile as a technology and understand it is a utility. The mobile device has evolved into a multifunctional tool. It is our social organiser, our information resource, our boredom filler. Basically, it supports our lives. Directory publishers have content that is a perfect fit provided they also plug it into the equation to simply or enhance our daily routine.

Directory publishers must also acknowledge that mobile comes with a whole set of new rules. Granted, the industry has yet to figure out these rules, but borrowing ideas and approaches from traditional media will not work. A good starting point is to answer three core questions: how are you going to approach mobile?; why is your offer relevant?; and what do you expect a consumer to do?

My takeaway: As a marketing medium mobile is only set to grow in value. Providers that get the basics right and forge partnerships that allow them to unlock the potential of mobile, monetise their digital assets and deliver features that add value to our lives will be well-equipped to compete against rivals and win.

Editor’s note: Martin’s next column will focus on what companies (specifically, local media and directory publishers) should to deliver contextually relevant mobile advertising based on location.

Martin Wilson has been involved in digital media for over 14 years, during which time he gained a wealth of experience in the fixed line and mobile Internet. In January 2008, Martin established Indigo 102, an independent consultancy, to assist organisations (including leading advertising agencies, directory publishers, media owners and online service providers) take their brands – and value propositions – mobile. In this role Martin has supported the development and launch of six mass market mobile services across three continents. You can contact Martin directly (martin@indigo102.com) and follow on Twitter (@indigo102).

Naturally, the news that Web giant Google was getting in on the action in mobile by acquiring AdMob created an atmosphere of excitement and optimism at the Global Mobile Marketing Forum last week in L.A. But it was more than a mood; it was a quantifiable trend. Mike Wehrs, President & Chief Executive Officer, Mobile Marketing Association (MMA), reported that mobile marketing shows an increase of 40 percent over last year.

What’s more, mobile is a line item in more budgets. Mike gave us the example of German carmaker Volkswagen, which is “doing things exclusively with iPhone Apps independent of other media channels”.

Another sure sign that mobile marketing has arrived full-force was the announcement by Microsoft (just prior to the event) that it had decided to join the MMA. In fact, Microsoft became the organization’s inaugural Premier Member, reflecting Microsoft’s commitment to both the association and the mobile marketing industry. As Charles Johnson, General Manager, Microsoft Mobile Advertising, put it in a press statement: “As mobile advertising has grown in significance, the time is now for carriers, OEMs, publishers and advertisers to join forces to capitalize on that growth.”

REAL RESEARCH

Peter Johnson, VP Research, Mobile Marketing Association, provided us the latest findings from the Research and Metrics Committee.  A highlight: leveraging coupons and loyalty programs are winning customers. It is found to be the most successful of all the mobile marketing approaches (!).

Another surprise is spending. To date the average media spend by agencies on mobile is still only 1.8 percent of the total spend.  However, those agencies that have experienced successful mobile marketing have already moved mobile up to account for 2~3 percent of their overall spend.

In 2009 spending on mobile marketing was $1.7 billion in total. But there was a potential for $2.5 billion, if we think back to the boost in spending shown by companies successful in mobile marketing.

Success breeds success – and encourages more spending. To get there from here the industry needs more education and a sharing of best practices. To this end the MMA is working to encourage knowledge sharing worldwide and making sure best practices are better evangelized.

BRAND SUCCESS

But the real proof that mobile is at the top of the agenda comes from the major players pushing the envelope.

COCA-COLA COMPANY: Tom Daly, Group Manager, Strategy and Planning, Coca-Cola Company, revealed what it looks for in mobile agencies. It may not be easy to get into Coca-Cola, but it’s worth it. According to Tom, Coca-Cola is “working with over 400 brands in 200 countries with a minimum of $8K per brand per country, and it is growing and we are looking for new partners.” His checklist for agencies: The company looks for three things.

1) Talent and environment
2) Thought leadership
3) Account management process.

As he summed it up: “We look for best in class to take Coca-Cola to the world leaders in creative mobile marketing and transparency is key.”

AT&T INTERACTIVE: Matt Crowley, CMO, AT&T Interactive, argued local and search are the real drivers for mobile advertising. As he put it: Today the total of mobile ad spend is about 70 percent (display and SMS) compared to 30 percent search. But he expects this will change to 25 percent (display and SMS) and 70 percent search in 2013. In fact, local search is the driver.  “We have seen over 250% YOY mobile search network growth and our goal is to pre-load the YP mobile app with local search on every device.” Matt added that AT&T counts 79 million subs and 22 million on Medianet, AT&T’s mobile portal. “There is over 22 percent access of Medianet daily.”

CNN: Louis Gump, VP of Mobile, CNN, talked about the future of news on mobile. He asked the audience how many look at news on their mobile before they get out of bed in the morning and about 30 percent answered they did. No wonder mobile is at the center of their strategy. CNN has a freemium model (offering the mobile website free and a paid CNN app).

The company debated the pricing for this, but decided on the $1.99 price as a way to keep mobile moving forward as a profit center to propel initiatives across all the mobile strategies of CNN. As Louis put it: “We wanted a dual revenue stream, and at $1.99, yes, there was debate over prices from $0.99~9.99. But we chose that price as we doing this for marketing. We want mobile as a sustainable business platform.  He continued: “We need not only the one-way free route, but a way to sustainability 3.5 and 10 years down the road.” To date 34 percent of users access CNN news only on their mobile phones. This means over one-third of users are only getting their news from CNN and only via mobile. Connect the dots, and “mobile is now the channel for CNN to reach a different demographic of people.”

Interesting to note: CNN doesn’t limit its focus to the iPhone. Instead the mobile strategy is holistic and covers four platforms:

1)    Mobile website (with 11~12 million users  per month – free and ad-supported)
2)    Text messaging (breaking news alerts)
3)    Video- on-demand and streaming (to distribute clips much more widely)
4)    Apps (and here the news is the September 27th  release that has changed the way news is consumed on the iPhone)

FUTURE OF MOBILE

Charles Johnson, Head of Mobile Advertising for Microsoft led an engaging panel on the future of mobile advertising. Ken Wilner, CEO,  Zumobi, stated that that key to mobile is “engagement”. Yes, acquisition is important, but once you obtain a consumer, the on-going engagement is second to none as mobile is with the consumer all the time, everywhere. Frank Babieri, CEO,  Transpera, was particularly bullish about the outlook for video. In his view, of the users that access online video that also access mobile video, “more then 62 percent of the time they will access it from mobile.” Another data point to keep in mind (from Charles): We replace our phones every 12~18months and we’re due to make those purchases soon. Smartphones will likely be the ones we chose, attracted by all their cool features and the great mobile Internet experience. Thus, 2010 will be the year of mass-device transition, and that will accelerate our industry even further.

BANKING: Bruce Withers, Head of Mobile, Wells Fargo, shared his mobile banking vision. He should know. Wells Fargo has been nominated as one of the top mobile banking solutions in North America and part of that success is linked to their sharp focus on youth (Gen Y and Millennials) that are part of the larger group of mobile professionals that need banking services on the go. Some key stats illustrate the success of a multi-approach mobile strategy.

•    Text messaging alerts: the user averages about 19 requests per month
•    Mobile website and iPhone application: users engage in about six sessions per month.
•    Location: Wells Fargo has added unique features in their iPhone App, including an ATM finder and direct links to wellsfargo.com.

CROSS-MEDIA: Mike Carter, CEO, MyThum and Tiffany Gerhard, Sr. Manager, Marketing- Emerging Capabilities, BestBuy, had a great session on the success of cross-media marketing for a retail brand.  For me it was one of the highlights of the day – particularly if we consider that BestBuy was doing NOTHING in mobile two years ago. Now, they have holistic strategy and results that speak volumes (literally). The strategy includes mobile as part of the marketing mix, but it is also core strategy to the company’s CRM strategy. Tiffany pointed out that mobile is a key link in clinching the sale – and everything that follows. “The use case quite good for us is when many of our customers come into the store that find when a product is out of stock. They can just go to their BestBuy application and click-to-buy in one action and then have the product delivered right to their home” But it doesn’t stop there. Mobile allows the company to support the buying process with information and interaction with customers. “Everyday now is a learning process for us to get better with mobile.”

FOOD FOR THOUGHT

Throughout the event execs and speakers raised a variety of interesting points and challenges.

•    Zaw Thet, CEO, 4Info, brought our attention to the need for an industry-wide initiative to establish a mobile cookie.  Today the next best thing is the user’s telephone number or UID on the iPhone.  By using this we can recognize and build cross-media campaigns for targeting users from platform to platform.
•     Chetan Sharma, Chetan Sharma Consulting, stated we are finally seeing the growth of the networks. Now, mobile has surpassed the data card (!).
•    Michael Shim, Head of Mobile Sales, Yahoo, reported that Yahoo’s growth of 54.8 percent is greater then the average for the industry of 45.4 percent with the mobile Internet.  Yahoo is doing unique ad solutions for apps and working on a slew of cross-media campaigns (with clients such as Subway) that link the Web to mobile.

INSIDE INNOVATION

The MMF event also recognized companies and campaigns pushing the envelope and spearheading mobile adoption. The MMA received hundreds of submissions in 12 categories from companies across the globe and winners for the Fifth Annual Global Mobile Marketing Awards were selected by the MMA Awards Selection Committee, a body comprised of global industry leaders from wireless carriers, technology and content providers, agencies and industry publications.

I had the honor of sitting on the panel of judges, a privilege that gave me a first-hand look at the campaigns. The campaigns that were real eye-openers for me in terms of real ROI and creative excellence came from agencies such as: Mobile Dreams Factory (Mini Mobile Dealer), AKQA (Gap Style Mixer), F.biz (Trident Fresh) MyThum (Rogers/Live Nation live ticketing solution) and the Pizza Hut iPhone App from Pizza Hut.

My takeaway: We kicked off the MMF event asking ourselves if 2009 was the “year of mobile” – again. Maybe not. But 2010 is going to be an adventure.  With budgets coming back, mobile showing up on marketing budgets and the advance of smartphones, the stars are aligned for 2010 to (finally) be the year of mobile is 2010. With the stars aligned it’s up to the industry to deliver – with solutions that scale and turnkey cross-media strategies with mobile at their core.

Editor’s note: Matthew Snyder is CEO and Founder of ADObjects-Inc, a cross-media strategic consultancy focused on revenue-generating, customer acquisition, brand building and business development solutions for clients determined to make the most out of mobile. Clients/Partners include: Bing, CBS Radio, Canadian Music Week, Nokia and Mobility Ventures, as well as a variety of media companies and major brands. During his career at Nokia, where he held a number of positions including Device Program Manager and Global Director of Strategy in the Multimedia Group, he architected Nokia location-based services strategy and mobile search application. MSearchGroove is proud to be an associate of ADObjects, joining a vibrant team of professionals including Chetan Sharma, Founder and President of Chetan Sharma Consulting, a management consulting and strategic advisory firm, and Roman Kikta, a renowned venture capitalist, wireless pioneer, seasoned entrepreneur and author. Feel free to contact Matthew directly (matt@adostrategies.com) or follow him on Twitter (matsnyder2001).

I am honored to follow Judy as the new Keeper of the Tents. It’s also a good time to consider new directions and activities to grow the Carnival and its roster of contributors. Thanks to the Mobilists who have contacted me to wish me the best in this new role, and a special thanks to Volker Hirsch and Srinivasarao Nandiwada (nsr), who have reached out to me to help guide the Carnival through this transition period.

It’s all about new energy, new idea and new horizons — and a new phase in the development of the Carnival. If you’re a member, submit your suggestions for consideration by the group. If you’re not a member, then get involved!

Now let’s get this show on the road!

Over at Volker on Mobile Volker Hirsch challenges us to rethink what we mean by “social media.” In his view, “empowered media” is a much better term since we are literally empowered to create, capture and communicate everything around us. The question is: how should we wield this power? Fortunately for us, Volker doesn’t settle for a philosophical discussion of the issue; he uses the recent incident involving Ian, the London subway worker (now unemployed) who threatened a passenger to drive an important point home. Was it Ian’s misfortune that Jonathan MacDonald – a social media authority well-known to us at the Carnival – was nearby? Or was it Jonathan’s responsibility to capture the “rant”, publish it, tweet it and tell us all? Read and decide.

But mobile is more than a social media (or empowered media) tool. Over at mobiEnthusiast.mobi Holly Kolman draws our attention to mobile’s potential as an educational tool with the example of BuckleUp.mobi. The mobile site urges people to use their seat belts and features important related for drives on the fly. Check it out and spread the word.

A truly eye-opening post from Mark Jaffe over at Mobile Mandala based on a chance meeting with a Flirtomatic executive. Mark walks us through some surprising numbers from the source and wakes us up to the wealth of opportunities around giving people who don’t own smartphones a good user experience. Are companies leaving money on the table by catering to the high-end device crowd? Read Mark’s insightful post and decide.

And while we look for answers to these questions James Coops over at mjelly reminds us that it’s the search for apps we like in the App Store (actually all applications stores) that will likely take up the lion’s share of our time (and patience). His extremely helpful and worthwhile post (which includes a list of sources and services that assist in iPhone app discovery) provides us a how-to to navigate the confusing terrain. From social discovery tools to app review sites, his post is one to bookmark. Check it out and add your suggestions.

(For another look at the issues around content discovery and some helpful stats to put the problem in perspective, you may want to check out last’s week’s submission from Tego Interactive, a company out to tackle this issue head-on.)

Another valuable resource is a must-read list of mobile marketing case studies via mobiThinking.com. The list includes many campaigns (from a who’s who of brands and agencies) that were submitted to the Mobile Marketing Association. (The winners will be announced on November 17 at the Mobile Marketing Forum in Los Angeles.) But it doesn’t stop there. Andy Favell, mobiThinking.com editor, has invited agencies to send in their case studies, an admirable outreach that will likely turn the site into a top-notch destination for what’s new in mobile advertising. Check it out and contribute to the conversation!

And finally, Enrique Ortiz at About Mobility: A Technology & Products Weblog About All Things Mobile gives us his take on the seismic shift in the Nav market. Does Google Maps Nav — now with real-time always up to date maps and nav info, turn by turn directions, live traffic information and even street view – disrupt the market and threaten the likes of TomTom? Read on and share your views.

My pick of the week? Although the resources provided by mjelly and mobithinking deserve special mention (I’ve bookmarked both for my ongoing work in content discovery and my new mobile advertising project), Mark Jaffe’s down-to-earth post speaks volumes about the biggest challenge facing the mobile industry: it’s own inability to see the pent-up demand among ordinary people – with rather ordinary devices – for extraordinary service.

Thanks to Mark for pointing this out and let’s all work to spread the word!

Next week the Carnival moves to Mobileslate. See you there…

It found that the least loyal market in its survey was Italy, where users have an average of 1.77 SIM cards, with 81 percent having them from multiple operators, which the firm says is due to a lack of handset subsidies as well as the market being dominated by prepaid users. Furthermore, the company says churn increased slightly in Western Europe to 2.16 percent from 1.97 percent a year earlier, while the North American prepaid market grew by 19 percent, with postpaid up just 2 percent. Source

The bottom line: Pretty straightforward – when shopping for a 3G dongle or other second device, consumers go for the best deal, regardless of whether it’s with their current operator or not. In addition, the new customer pricing available on devices at a new operator often beats that from a user’s existing carrier, giving them an incentive to diversify.

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MOBILE ENTERPRISE REVENUES WILL HIT $92.6 BILLION IN 2014, says Informa, accounting for 24 percent mobile data services revenues. The company says that growth in the SME and SoHo sectors, as well as outsourcing and SaaS, will help operators grow their business.

However, Informa adds that operators will come under increasing competition in the space from established enterprise IT players.  It says their existing relationships with companies, as well as their expertise in implementation and integration will give them a leg up. Source

The bottom line: For many years, systems integrators, consultants and other IT shops have been portrayed as major competitors to operators, but operators have largely held their own. The fact of the matter is that operators will always play a role in supplying the connection; as things move forward, mobility will be baked in to IT apps, largely removing any opportunity for them in the integration space.

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THE MOBILE MEDIA INDUSTRY WILL GROW BY A THIRD OVER THE NEXT YEAR, according to a new report compiled by KPMG for the Mobile Entertainment Forum. The report is based on the predictions made by members of the Forum, who were polled about their confidence in the industry, as well as their own revenues and headcount. The growth figure is 6 percent higher than the one from a similar survey at the beginning of 2009, reflecting a renewed confidence in the industry’s ability to perform in difficult economic conditions. Source

The bottom line: As the global recession begins to lift, some confidence is returning to the markets, and mobile content is no exception.

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AMERICAN CONSUMERS ARE INTERESTED IN GETTING DEALS SENT TO THEM BY PHONE,  says a new survey conducted by Harris Interactive. The company found that 42 percent of 18- to 34-year-olds and 33 percent of 35- to 44-year-olds are “at least somewhat interested” in receiving opt-in alerts from their favorite establishments on their mobile, with food, entertainment and consumer products the categories in which they’re most interested. Source

The bottom line: It’s not too surprising to find out this survey was commissioned by a company that sends out location-based alerts. Is this the well-debunked “Starbucks example” of location-based ads, or is there something more to it?

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MORE THAN 500 MILLION PEOPLE WORLDWIDE WILL USE MOBILE MONEY TRANSFERS BY 2014, according to Juniper Research, mainly in developing nations. While these services will face political, legal and commercial challenges, the firm says they’ll thrive in underbanked markets and pose a challenge to traditional bank accounts. Source

The bottom line: More people in these countries have phones than have bank accounts or credit/debit cards – and there’s the market.

Overall, the mobile ad market is projected to rise from $160 million to $3.1 billion by 2013. Source

The bottom line: The prediction that search will take a growing chunk of mobile ad spending is a good one, but there’s one issue with this report: it ignores the idea that some other forms of mobile ads will emerge over the next few years. We’re still very early in the evolution of mobile marketing, so it’s reasonable to think that more forms, apart from the three mentioned here, will emerge. Peggy adds: This point has come through in my own mobile advertising research project, where executives revealed that  (surprisingly)ad spend on sponsored search and related schemes were low on the agenda. t The reason: mobile search is still riddled with shortcomings. More on why mobile search is broken here.

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NORTH AMERICANS ARE TAKING OUT MULTIPLE MOBILE SUBS, says Wireless Intelligence. It says that in the US and Canada, the average consumer had 1.3 mobile connections in Q3, and that while average revenue per connection is dropping, ARPU is actually going up – it’s just spread across more than one connection. The group says that real ARPU in North America has gone from $60 in 2006 to $64. Source

The bottom line: Expect to see this trend continue as more and more consumers adopt mobile-enabled netbooks, data dongles and other connected devices.

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MORE PEOPLE ARE FINDING THEIR WAY VIA MOBILE, according to a new report from Berg Insight. The firm says that the number of mobile subscribers downloading navigation apps and routes to their mobile devices doubled to 28 million in the first half of 2009 from the year-earlier period. The firm also says that the subscriber base will see a CAGR of about 34 percent over the next six years, resulting in a 160 million users by 2015. Source

The bottom line: The ability to look up maps and routes on mobile devices is one that many consumers love, and the continued growth of GPS-enabled handsets will certainly fuel growth in usage of navigation services. But the PND market won’t remain static: more and more cars will feature built-in satnav, and the price of standalone units will continue to fall, which may explain the relatively low prediction of 160 million users by 2015.

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SYMBIAN TO SHIP 180 MILLION HANDSETS A YEAR BY 2014, says Juniper Research. Despite the emergence and growth of other smartphone platforms, the firm says that shipments of devices running the Symbian platform will more than double over the next five years. Coupled with Android and LiMo devices, Juniper estimates the market for open-source handsets will be more than 220 million per year by that time.

Juniper further contends that the market will migrate towards open-source platforms, despite the popularity of the proprietary iPhone and BlackBerry platforms.  Source

The bottom line: Any decent smartphone OS should show volume gains over the next five years as sales of smartphones skyrocket. That said, the mass market doesn’t care about open-source vs. proprietary – they want devices that meet their needs, and there are multiple ways to skin this proverbial cat. The choice of open-source vs. proprietary is less important than getting the basic OS right, and then having an open enough platform to support app and service development.

Following on from the phenomenally popular future-focused chapter that wrapped up last year’s Netsize guide (a chapter I was proud to co-create with Stan Chesnais, Netsize CEO), this year’s publication will continue to explore the personal experiences and business opportunities emerging as our virtual and physical worlds converge. Another highlight: 25+ interviews with C-Level executives and influencers.

I’m particularly interested in connecting with companies and pioneers taking mobility to a new level with the help of technology that links digital information with real-world places as we pass by.

The buzzword here is augmented reality, and I am pleased to report I already have an interview scheduled with John Ellenby, GeoVector CEO. GeoVector, a developer of mobile technology that recently launched its directional search and pointing application for mobile phones and released World Surfer for download from the Apple iTunes App Store and Android Market.

I’m also looking forward to a Q&A with Ogilvy’s mobile advertising mastermind Scott Seaborn, who is quite bullish about augmented reality and the central role it is likely to play in a wide variety of mobile marketing and promotion campaigns moving forward.

However, the Netsize Guide isn’t just about cool stuff on the horizon.

It also looks at the impact of app stores on the mobile business ecosystem that (at least traditionally) has the mobile operator at its center; the evolution of social media and the excitement over the social address book (more specifically, who owns it?); the trends that matter in mobile communitainment (games, music, social networking); and pivotal importance of personal engagement in mobile marketing and advertising.

I’m pleased to report that key players including Google, Sony Ericsson, Nokia Interactive Advertising, the Mobile Marketing Association, the Interactive Advertising Bureau, are already on board – a line-up sure to make the Netsize Guide 2010 a runaway success. (Another boost: Netsize’s decision to promote the guide via a destination within the new Thought Leadership section of MSearchGroove. This commercial offer, one of MSearchGroove’s growing portfolio of media solutions, allows a select group of companies to launch a branded microsite on MSearchGroove, thus presenting their commentary, case studies and subject matter expertise to a wide audience of executives and influencers.

This year’s guide also has a strong emphasis on mobile CRM, mobile commerce and case studies that illustrate how industry verticals (Education, Finance, Healthcare, Retail, Enterprise) are using mobile to fundamentally change/improve how they do business.

The bottom line: It’s not about mobile; it’s about mobilizing. We fully understand that mobile is personal, portable and part of our daily routine. Now the mobile industry has to stop talking to the mobile industry and reach out to verticals just beginning to explore what mobility means for them.

Against this backdrop, I am particularly open to hear how you (or your customer) has implemented (or is planning to implement) mobile. From mobile education case studies in emerging markets to cool new ways companies use mobile to super-charge customer service and CRM – I want to hear your story. All the better if the service harnesses a unique characteristic of mobile (context, location data, personal preferences and browsing patterns) to get the job done.

Ironically, this was also the topic of my recent article for EContent aptly titled the Immersive Enterprise.

I enjoyed connecting with companies including EMC, Liquid Machines, SecondLife and ThinkBalm, a super-cool company offering independent IT industry analysis and strategic advisory services to technology marketers and immersive Internet advocates. I was extremely impressed by Erica Driver, co-founder and principal at ThinkBalm, who invited me to join her ThinkBalm Innovation Community, a collaborative community in SecondLife dedicated to propelling the enterprise use of the Internet forward.

In addition to some surprising observations (which I recount in my article) Erica also shared the findings of a recent ThinkBalm survey of 66 immersive Internet practitioners. More than 40 percent of those surveyed saw a positive economic benefit from investments in immersive technologies in 2008 and 1Q2009, and more than half expect to obtain a positive total economic benefit in 2009. Looking to the future, over one third (36 percent) said their organizations will definitely expand their investments in 2009 an 2010, and another 38 percent indicated they might even expand their investment.

In my article I interpret this as proof that the next round of innovation will have to enable us to work in multiple locations, multiple dimensions (!) and across multiple devices.

But it was Martin Frid-Nielsen, CEO of Soonr, a company offering mobile cloud services, that put it best.

As Martin sees it: it’s not about enterprises embracing mobility, it’s about them absorbing mobility into every aspect of what they do. “The concept of mobility will be a given going forward for every company everywhere.”

If you have similar opinions/insights or if you want to be considered for inclusion in the Netsize Guide 2010, contact me directly (peggy@msearchgroove.com)

Deadline: October 30.

Disclaimer: Netsize is an MSG supporter.

Mobile Groove, the monthly podcast that focuses on the news and companies that matter most in mobile — is back with a great line-up of topics and the usual mix of insights and outspoken observations from co-host Inma Martinez, my über-connected and always professional partner in crime. (We missed posting on Friday, but the reason for the delay will be clear when I take the wraps off an all-new MSearchGroove, so watch this space.)

Mobilize, the conference Inma attended in September, left a lasting impression. Her SWOT analysis: a great line-up of startups and a high level of energy and VC activity in the Valley. Where does this leave Europe? Inma (also based in London) connects the dots in some recent investor reports and concludes Europe may see its best and brightest in mobile “defect.” Is the U.S. the place to be if you are a mobile entrepreneur? Listen in and let us know what you think.

Speaking of startups, Inma also outlines the highlights from Seedcamp, a program created to jumpstart the entrepreneurial community in Europe by connecting next generation developers and entrepreneurs with over 400 mentors from a top-tier network of company builders; including seed investors, serial entrepreneurs, product experts, HR and PR specialists, marketers, lawyers, recruiters, journalists and venture capitalists. One company that stood out: VouChaCha, a U.K. startup that delivers vouchers to your mobile phone. Where is the hold up in Europe and why aren’t coupons a de facto part of our daily mobile routines (as they are in the U.S.)? You tell us!

Other success stories Inma shares: Flirtomatic, iScoot and eBuddy.

CONTEXT MATTERS?

Will location-based services excite women? Well, we beg to disagree.

Listen to the lively podcast here [23:54].

What about women who are interested in bargains are willing to drive miles in pursuit of discounted designer clothes, for example. (Think of the success of outlets in the middle of nowhere?!) Will an app that tells women what’s on offer nearby fly or fail? And where are the female-focused apps anyway? Men may have their iPhone app that celebrates flatulence – but where are the apps that target women? Talk about leaving money on the table!

BLYK MEDIA & SOCIAL MEDIA

In a follow up to the last podcast Antti Öhrling, Blyk Co-Founder, joins Inma for lunch and the opportunity to explain Blyk’s real business objectives. It’s not about mobile advertising; it’s about mobile media. Inma tells us it is an ambitious model – but one that could work well for Blyk. Listen in and find out.

And we discuss the buzz around social media, giving Vodafone (and the fast-followers sure to make headlines in the next weeks/months) huge credit for Vodafone 360. Why is social media big in mobile? Inma tells us that part of the reason could be the popularity of Twitter on mobile. (She should know; when it comes to mobile London is the Twitter capital.)

We also revisit Spotify and dissect its mobile ambitions. Is it gearing up for a showdown with Apple? Listen in and let us know what you think.

RAISING OUR GOBLET

This time Inma salutes Mark Curtis, the mastermind behind Flirtomatic, a phenomenally successful freemium flirt and fun service.

Fresh from several mobile advertising events, I raise my goblet of rock to Dagmara Brylack for sharing a milestone mobile advertising case study during Mobile Marketing Forum Europe (which I analyze here). I also recognize Mark “Mr. Mobile” Wächter, for his work to launch MMA Germany. When it comes to mobile advertising, Germany is a potential powerhouse (!)  and future posts here on MSearchGroove will highlight the stats, campaigns and companies that make this market the one to watch.

Until next time – keep it fun!

PERSONAL THANKS

Our thanks to the Grant Butler Coomber team (and Billy Burnett) for their continued advice and support on how to build awareness of this podcast series and other MSearchGroove initiatives.  I fully recommend them as our PR team of choice if you want to build your brand in Europe. In the U.S. I am indebted to Jeff Fishburn (“always-on” at OnPR) and Liz Erk, whose agency, The Jaxson Group, also advises MSearchGroove. Her talent: securing major media placements and speaking engagements for client companies.

But most of all – thanks to you, our listeners. We welcome your ideas, suggestions and elevator pitches. DM us on Twitter (@mobilegroove) or email us at mobilegroove AT msearchgroove DOTcom.

Related posts:

PODCAST: Thought-Provoking Mobile Groove Series With Inma Martinez Debuts Today; Offers Inside Track On Industry Disasters, High-Flyers & What’s Highest On Investor Radars

The bottom line: This is sort of a chicken-and-egg situation. Does the fact that roughly a fifth of tweets come from mobile users make location information slightly irrelevant, or will the availability of the location info drive more mobile usage? We’ll take the glass-half-full view: getting 20 percent of tweets from mobile devices is a solid amount, and giving users the chance to leverage their location should increase it further.

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MOBILE AD BUDGETS BUCK THE WIDER DOWNWARD TREND, and will hit $5.7 billion by 2014, says Juniper Research in a new report. While overall ad spending is being hit by budget cutbacks, mobile is set to grow, as it offers engagement with the consumer and a more quantifiable ROI than other mediums.

Still, that $5.7 billion will only account for 1.5 percent of the total global ad spend in 2014, with many advertisers as yet unconvinced that mobile has a big enough reach to justify higher spending. Source

The bottom line: Mobile advertising’s characteristics – quantifiable ROI, direct engagement with consumers – mean that it’s more than just a fad, and will be a valuable tool for marketers. Still, questions persist about reach, even if they show a slight misunderstanding of mobile, because it’s not particularly a broadcast medium. Where mobile will succeed is in getting advertisers connected to the right individuals directly, rather than by the broadcast, shotgun approach.

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US MOBILE MUSIC CONSUMPTION DOUBLES, BUT REMAINS LOW, according to new research from Forrester. The firm says that 10 percent of US adults listen to music on their mobile devices at least once a month, compared to a quarter of people in the UK and a staggering 70 percent of Chinese citydwellers.

Revenues remain low, though, and are projected to hit just 866 million euros in Europe and $263 million in the US in 2013, with almost two-thirds of US people surveyed saying they had no interest in buying songs on their phones. Source

The bottom line: Mobile isn’t immune from the malaise in the wider music business, with consumers reluctant to pay for songs on their handsets. This shouldn’t be at all surprising: there’s really nothing about mobile that makes it much different than any other platform, since consumers haven’t shown a lot of interest in buying songs over the air. Streaming and radio-like services look like they might enjoy more success on mobile.

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SMARTPHONES GRAB THE HEADLINES, BUT FEATURE PHONES GRAB THE SALES, says NPD Group in a new report. In the second quarter, feature phones accounted for 72 percent of all handset sales in the US, though this is down five points from the previous year. Smartphones accounted for the other 28 percent, although they saw almost 50 percent growth from the previous period. Overall, NPD says that unit sales were up 14 percent in the US in Q2 from the previous year, with the ASP up 4 percent to $87. Source

The bottom line: It pays to keep in mind that while the likes of the iPhone dominate media coverage, the vast majority of users are still on feature phones – so developers, marketers and content producers need to keep them in mind.

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SMARTPHONE APP STORES TO DELIVER 6.67 BILLION DOWNLOADS IN 2014 in the US alone, says Frost & Sullivan. The firm appears to believe that much of this will come from free applications, but doesn’t offer any guidance on revenues. Source

The bottom line: It doesn’t seem like much of a stretch to see lots of app downloads coming as more and more app stores come online from handset vendors, OS providers and operators. But if most of these apps are going to be free to download, where are the revenues going to come from? Paid sponsorship by brands or in-app ads?

It was great to have the last few days off and even better to map out an exciting line-up of MSearchGroove projects for the next few months. One that I am particularly honored to announce: my collaboration with GigaOM Pro, the new research arm of the highly respected tech blog GigaOM. By way of background, GigaOM Pro has brought together an impressive roster of industry authorities and analysts (including my esteemed colleague Chetan Sharma) to “address the gap that exists in real-time expert industry analysis on emerging technology markets.” The GigaOM Pro solution: Make timely, highly relevant analysis and insights accessible and practical.

I’m on board to write an in-depth examination of personalization and recommendation technologies and business models, a natural next step given my long track record analyzing mobile search and my deep involvement in the recommender space. (This includes work with Strands, a major provider of recommender systems, on recommender industry events including RecSys 09 – October 22-25, NYC.)

The report is an ambitious undertaking and I am naturally interested in connecting with personalization/recommendation companies –so please contact me directly if you wish to be considered for inclusion. peggy@msearchgroove.com

Why the buzz about personalization?

The advance of Internet-specific smartphones and the spread of app store schemes turns up the pressure on mobile operators (and their content providers) to decipher data transactions (on and off the network), combine it with location and demographic data and use the results to create a 360-degree view of the individual.

Where does this shift leave mobile operators?

They are hard pushed to turn analytics into competitive advantage. Sensing this business opportunity (that execs tell me they estimate hovers in the hundreds of millions of dollars), a slew of companies (such as Amdocs, Bytemobile, Novarra and Qualcomm) are among the first out the gates with revamped offers to arm operators for the ultimate battle with Web giants for the mobile customer. This special series profiles the players jockeying for position in the marketplace.

This week we look at Openwave, which has recently productized its existing analytics capabilities and business intelligence know-how, and packaged it up as Mobile Analytics.

The solution – designed to aggregate usage data and behavioral information across a variety of sources, including on-portal surfing and open Web browsing, to generate meaningful reports –dovetails with other Openwave offers (behavioral targeting, profiling, usage pattern analysis) to lay the groundwork for the delivery of relevant content and advertising.

I caught up with Mayur Pitamber, Openwave Product Management Strategist, to discuss the role of the mobile operator, debate the value of personalization and what we can expect next in the Openwave product roadmap.

AN EXCERPT OF OUR Q&A

Q: Let’s talk about the fit with mobile advertising. You have just launched the complement to your own mobile advertising solution, which is Mobile Analytics. What’s the level of interest in mobile advertising? I’m hearing some operators get it, but many more don’t…

A: There was some hype about it at first, but operators are starting to see the value of it now and they are also beginning to understand the real value of the data they have. The last months have been marked by a surge of activity and RFIs and RFPs specifically for mobile analytics solutions, which is new in this market. We didn’t see this last year.

A lot of what happened and the initial excitement around mobile advertising industry was quite premature. It’s not just about offering targeted advertising; it’s about offering relevant products and services based on the user’s behavior. The operators can use analytics to gain profiles of these users, the sites they frequent and what they do while online. It’s when this information can be aggregated and provided to media agencies and brands that it really becomes valuable.

It’s all about helping operators to provide the mobile audience metrics that the brands are looking for. Not necessarily going through the GSMA, because they have some of that [covered in their] initiative, but doing that directly. With the solution we’re offering the operators can provide those metrics directly to the brands, to the media agencies, to the publishers, and be a vital part of that mobile advertising ecosystem. And with our solution there’s no need for us to insert tracking or cookies or JavaScript, or anything like that. Every Web page goes through our gateway and we can basically track on that. So, that’s a key differentiator.

Q: There are, of course, other solutions in this space. A long list of gateway providers: Qualcomm, Amdocs, Ericsson, Nokia, Bytemobile, Novarra. And the space is getting crowded.

A: Obviously, there are competitors out there.  All gateway providers can provide parts of this sort of solution. However, I haven’t come across a solution [similar to ours] with this [breadth] out there in the market at this point in time. Being a gateway provider for the last 10 years, we’ve been providing this type of reporting to operators. But now we’ve added more features and made it more user-friendly. So, it’s a mature business intelligence product that we’re bringing to the market.

Q: In early August, Telstra announced it had implemented your Mobile Analytics solution. The press release says it’s all about providing Telstra a “dashboard view of intelligent analytics and rich reporting capabilities across its mobile device portfolio.” To start, how many of your operator customers have this solution or perhaps the analytics solutions that preceded this?

A: We have deployed previous versions of this analytic solution to some six tier-1 operators around the world.

Q: Let’s say I’m an operator and I don’t have a solution from Openwave, but I like the analytics.  Can I just have that, or is it a package deal?

A: Previously, the solution was just built around Openwave products. But obviously, we want a bigger market share, so we’ve designed the solution such that it will work with any other gateway, any other vendor of gateway products.

Q: You said before competing on analytics is the way for operators to be “a vital part of the ecosystem.” Can operators really play this central role?

A: That’s a really good question. I think it’s quite difficult to answer as well. The operators have traditionally been sluggish. Their bread and butter has been voice revenues and SMS revenues. To really get them incentivized to offer new services such as mobile advertising, you need a compelling business case. I’ve spoken to dozens of operators around the world. Some of them are in advanced stages of creating any-time mobile advertising organizations. Others have only one or two mobile advertising product managers. For these operators, the business case – for whatever reason – is just not compelling enough for the decision makers to say okay, let’s really invest in this.

Q: This jives with what people told me while I was conducting interviews for Mobile Advertising Research UK. As one executive at a mobile infrastructure company that counts over 300 network operator clients observed: Mobile advertising only becomes interesting for an operator when “the type of revenue they can envisage is around 2 percent of their overall revenue to 5 percent, and with an opportunity to grow to 10 percent of revenue. This is the revenue that will really make them sit up and make it work.” Another figure that stands out: GBP 28.6 million, which is what the IAB reckons was the mobile ad spend in 2008. What’s your take?

A: I can believe the ad spend for the U.K. I think the hold up is the thinking about the role of the mobile operator. We have to be clear about what they can do. In my view, the role of the mobile operator will be to provide incentives for people to use new services so that additional inventory and mediums become available to insert ads. And obviously, once those mediums become available, that becomes attractive to brands and advertisers. But, right now, it’s difficult for operators to manage their inventories. They have SMS inventory, MMS inventory, on-portal, off-portal. All of these are different systems and it’s difficult to provide brands and advertisers a consolidated view of what is available out there. So, it’s when there is a clear view of the different inventories out there and the tools to manage these inventories, and make these inventories available to third-parties such as the brands and media agencies, that I think mobile advertising will really take off.

Q: Are you convinced operators can start acting like media companies? Or are there going to be a lot of carriers that focus on access over audience?

A: The tier-1s I talk with have created organizations to manage mobile advertising. They’ve created sales forces to go out and sell inventory. So, they are already acting as media agencies and helping brands identify which inventory they want to use. But again, these are just the big tier-1 operators.

Q: Advertising is messaging – and loads of it. Or it could borrow from TV and be video-centric? We don’t know. In any case, we have more data usage – both from people surfing with their smartphones and brands that want to reach them. What is the potential impact on the network side of things? What are you seeing?

A: We’re seeing huge increase in data traffic volumes. A data tsunami is going to hit operators within the next 12-24 months. And some operators are quite oblivious to this. So, [with Mobile Analytics] we’re helping the operators to identify trends on the operational front as well. We’re saying ‘Hey, you need to do capacity planning and optimize your networks because this is going to be your traffic in 6 months or 12 months.’

Q: Let’s move to the report on North American mobile Internet trends you issued that may have got lost in the CTIA shuffle. It made some interesting points, and I understand you are about to release another one soon. What were some of the key observations and what were the surprises?

A: That report was basically based on data from one of our customers in North America. Many of the trends we saw confirmed what the market was thinking. For example, everyone is doing social networking on mobile. The top sites, as you could guess, were Facebook and MySpace.

In terms of search, we were able to also track some keywords. Something that was interesting: people – when they wanted to find Google — wouldn’t enter Google on their mobile phone and go to Google. They would actually enter ‘Google’ in a Yahoo search engine. This operator had Yahoo as a search partner. Anyway, that tells us that a lot of search use may be because of usability. It’s easier to type it [a destination] in a search box than to navigate to it on the Web.

Q: Finally – what about app stores? They’re hot. What is the value-add, if any, from analytics?

A: One of the operators we’re working with is in the process of opening an app store. They know that not all users are going to go through the apps. If you figure the iPhone app store has tens of thousands of apps and growing, users would lose patience sifting through all that. This operator wants to analytics specifically on this [operator] app store to identify the top ten apps. But it goes beyond this to include how many times have the apps been downloaded; who has consumed them; and whether the users have shared apps with other people. More importantly, the operator is providing this app store data to the application developers, so they also have insight into how their apps are being used and how many people have downloaded their apps. So, Mobile Analytics can be used to identify the audiences going to these app stores – and that can be used to build the business.

WHAT’S NEXT?

Generally speaking, the value of data is not in the data itself, but in the mashups we create when we combine it with other data stores. Put another way, the way to wring the value out of analytics is to combine it with location and demographics data, which is why Openwave is keen to feature both in its Mobile Analytics solution. Mayur tells me we can expect location in the next months. (Openwave is also gearing up to announce another customer win for its analytics offer in South East Asia.)

Likewise recommendation capabilities are moving up the list to take a center spot in Openwave strategy. As Mayur put it: The next version of Mobile Analytics will come with recommenders “bolted on.” No word yet on what the recommender will allow (delivery of content or advertising – or both?), how it will achieve this (based on item-to-item or user-to user – or both?), or how it will integrate with Openwave’s underlying Integra platform. But read between the lines, and the sharpened focus on recommendation is at least a welcome testament to the timing and importance of my upcoming GigaOM report on the same topic.

Openwave, unlike some of the gateway providers I’ve examined/profiled in this series, is also bullish about mobile search. The company demo points out that Mobile Analytics potentially improves mobile search, allowing operators to deliver relevant results individuals will find useful.

I am reminded at this juncture of a related post I wrote about the potential for operator-centric, operator-powered, operator-controlled mobile search. With the right tools and technology mobile operators can follow our virtual breadcrumb trail to optimize our mobile search (and advertising) experiences, using our actual usage patterns to give us the answers/results we will most likely appreciate.

My take: Personalization is a hot topic but personalized recommendation and search are even hotter. The space is crowding with gateway providers that are using their position in the network to give their operator customers insights into what people are doing on the network (on- and off-portal). The end-game is about helping operators make business decisions based on new subscriber behaviors and trends. Openwave is one of a number of companies in this space – but it has its eye on the prize: drilling down in the data to help operators manage bandwidth allocation, deliver targeted mobile advertising AND fine-tune recommendation and mobile search. What better way for operators to compete against Internet and search engine giants, and potentially win?

Next in the series: We discuss personalization with Novarra.

No matter how you look at it (or who you ask) mobile search, the model that has effectively retrofitted Internet search for mobile devices, is riddled with shortcomings This was the message that came across in the interviews I conducted for Mobile Advertising Research UK, the presentations I and other search authorities made during the recent Mobile Search Masterclass in London, and, more recently, in the mobile search assessment white paper (Pump Up The Volume: An Assessment of Voice-Enabled Web Search on the iPhone) I co-authored with Peggy Albright. (DOWNLOAD)

Is mobile search broken? More importantly, how can we fix it? These are the questions I put to a variety of executives representing companies from across the mobile search and advertising business ecosystem. Read between the lines, and their answers – along with my own conclusions – point to areas of improvement and opportunity in mobile search.

MOBILE ADVERTISING RESEARCH UK

Primary research and C-Level interviews with agencies, brands, operators and third parties reveal mobile search is missing the mark. Their gripe: the poor quality of mobile search (specifically universal search powered by keyword queries and PageRank algorithms) is to blame for a lack of interest and investment in paid search advertising.

As a leading executive at a global brand put it: “Just between the two of us, our spend for search is by far not in the [single] digits yet – and it won’t be….We do a lot in mobile, but the basics of search are not yet at the level of sophistication consumers would expect from us.”

At the other end of the spectrum, agencies are far from upbeat about the short-term outlook for mobile search. As one managing director at a mobile marketing agency put it: “Just the way the content is indexed prevents advertisers from creating a cohesive plan to integrate search in their [mobile] advertising strategies. There is just not the volume to get in and really do some targeted search [advertising], and that’s what brands want: to make advertising personal and relevant to every search the consumer makes.”

Against this backdrop, many sources questioned whether the U.K. adspend figures for 2008 released b