From a special section that expertly outlines the opportunities, challenges and attitudes around mobile marketing and advertising in India, to path-breaking research and models that harness our interaction with mobile social networks to drive frequency (and results!), this issue is the one if you are looking for a balanced mix of academic insights and practical business advice.

By way of background, the IJMM is published twice a year with the support of the Mobile Marketing Association. Each issue features articles and papers from academics, students, as well as mobile industry thought leaders. It is in its 7th year — and continues to grow from strength to strength with every issue. There are opportunities for firms to help underwrite and sponsor special editions, so please contact northamerica@mmaglobal.com.

Be counted (and quoted)

But the real opportunity that shouldn’t be missed is a new feature slot called INVITED COMMENTARY, a special section that allows industry executives and influencers provide actionable ideas and insights.

The new section kicks off with a contribution from Mihai Vlad, Head of Audience Management & Insight at Optism. He draws from his observations to make a strong case for transparency, straight talk and trust-building in permission marketing approaches. [More in this article excerpt.]

His argument is on the mark — particularly since the success of permission marketing rests on the quality of the dialog. To drive it home he provides mobile marketers a blueprint they can follow to maximize the value of their permission based mobile marketing initiatives. His five best practices to follow stress the paramount importance of thinking human and ‘nudging’ to ensure positive outcomes.

Guidelines & deadlines

MobileGroove is proud to collaborate with Michael Hanley —  IJMM Editor-in-Chief and  Associate Professor of Advertising, Ball State University — to promote this excellent work and amplify the call for contributions and papers. The IJMM has featured a whopping 130+ articles since it first went live, so make sure your voice is heard!

Also: The Summer 2012 issue of the IJMM will feature a special section on Mobile Marketing and Advertising in China along with articles from around the globe, and an INVITED COMMENTARY from a voice in the industry we need to hear.

Submit your draft or prospectus (in MS Word format) via email mmajournal@mmaglobal.com,  or visit: http://mmaglobal.com/resources/international-journal-mobile-marketing/call-for-paper for more information.

The submission deadline for the next issue (Summer 2012) is March 15, 2012.

If you miss that, then you can target the next issues.

• Winter 2012 (submission deadline: September 15, 2012)
• Summer 2013 (submission deadline: March 15, 2013)

Check out the new issue — or purchase past issues —by clicking the banner below.

Understanding this gap — and the need to collaborate with many mobile authorities, rather than leave such a work to a single writer — GigaOM PRO has published a new report that provides us a valuable roadmap to navigate mobile for the months (and years!) ahead. I contributed the section on the future of mobile search, which I will explore later down in this post.

First, more about GigaOM PRO. The research arm of GigaOM, GigaOM PRO was created to address the gap that exists in real-time expert industry analysis on emerging technology markets. And it is doing an impressive job, by making high-quality expert reports, data and commentary easy to access and highly interactive for our community in key emerging technology areas.

For this reason, I used the latest segment of the new vodcast — m-pulse — to raise a goblet of rock to the resource that uniquely gives us a collaborative view of the trends to watch and the results to expect.

Mobile search landscape

My contribution to this mobile anthology is the section on mobile search and the evolution of what I call ‘zero-search’ (using implicit inputs or statistical models to present users with results they are likely to appreciate as opposed to key words or other inputs). In key word search, Google own the market. But —I argue —it’s unlikely that the search giant will continue to dominate in the future.

Competition in mobile search is on the rise. And we can expect more companies to leverage Artificial Intelligence (AI), personalization and the social graph to deliver users more precise search results suited to the mobile platform — in some cases even before we explicitly request them.

As I further point out in the section, the door is wide open for companies with social in their DNA to win with approaches that infuse human preferences and judgments into computer algorithms to pinpoint truly relevant information and better answers.

Another hot area in mobile search is apps. As we know, there are tens of thousands of applications on most application stores, and driving awareness is costly for developers and brands. App search is currently dominated by classic keyword search and “find similar” solutions that rely on social graphs and statistics. However, there are several new players (Chomp, Do@, findahh) with new approaches that are gaining traction.

Precision search needed

The verticalization of mobile search will likely accelerate as we become more sophisticated in our use of mobile devices and tablets to access and search the Internet. And with this development will come an increased user requirement for what I call “precision search.”

Why? Because while devices will likely pack more computing power, they will keep roughly the same size displays, screens are not suited to reams of results (and neither is our patience). Additionally, the huge growth in data, the failure of filters and the lack of machine readable metadata will persist, creating a need for search that can focus on a specific query and deliver genuinely relevant and useful results.

Against this backdrop, how will mobile search evolve in the next years? What services will it enable? And what will our experience be?

I map out the future of mobile search innovation (enabled by a new breed of vertical search engines and apps) as follows:

Who are the companies to watch in 2012 and beyond? What services and strategies will move mobile search a huge step forward? I encourage you to download GigaOM PRO’s segment by segment analysis by clicking the box below.

Interestingly, a string of recent market developments (eBay snapping up recommendation engine Hunch, Siri redefining what we except from mobile ’smart’ assistants and CNN tapping Zite to deliver truly personal and personalized news) support my conclusions and make this report a must-read anthology.

Mobile search profile series

It’s been busy times at MobileGroove and the focus in 2012 is on expansion at all levels and across all media.

Takeaways (and companies) from this report will also be covered in my soon-to-launch weekly live radio show. In addition, the new m-pulse vodast series with Rob Woodbridge and UNTETHER.tv will dedicate a month to analyzing mobile search innovation from a variety of perspectives (vendor, brand, innovator, aggregator). And our esteemed colleague and industry veteran Charles Knight will be back with his series of interviews and road tests.

In February I will also profile some of THE companies to watch in this exciting space, beginning with Expertmaker. This European-based has come out of stealth mode to equip developers and companies with tools and APIs, allowing the easy creation of a plethora of precision search services and apps. Look for recommenders, interactive shopping assistants and more. Expertmaker also powers the smart shopping assistant already on  offer via a major commerce giant. Martin Rugfelt, Expertmaker CMO, and I will discuss the company’s progress (which also further validates the overall trend to mobile search verticalization).

Topics covered in this report include :

TAPPING THE TABLET MARKET’S FULL POTENTIAL –BY COLIN GIBBS

MOBILE SERVICES: THE NEXT FRONTIER INWIRELESS –BY GERRY PURDY, PH.D.

CONNECTED DEVICES: OPPORTUNITES FOR THE INTERNET OF THINGS –BY LAURIE LAMBERTH

THE FUTURE OF MOBILEHEALTH, 2011–2016 –BY JODY RANCK, DRPH

HOW SOCIAL-LOCATION-MOBILE (SOLOMO) IS TRANSFORMING E-COMMERCE –BY DR. PHIL HENDRIX,PH.D., AND ERIC

THE NEW BREED OF MOBILE SEARCH ENGINES –BY PEGGY ANNE

MAKE ME AN OFFER: HYPERLOCAL TARGETING IN MOBILE –BY GREG STERLING

MOBILE PAYMENTS: THE NEXT IMPORTANT GROWTH IN THE MOBILE MARKET–BY PETER CROCKER

THE FUTURE OF MOBILEADVERTISING, 2011–2016 –BY NEIL STROTHER

A MOBILE VOIP AND CHAT OUTLOOK –BY PIM BILDERBEEK

SOLUTIONS FOR A NEW AGE OF WIRELESS MOBILE BACKHAUL –BY MONICA PAOLINI

This week’s m-pulse — the new vodcast series produced by Rob Woodbridge, founder and owner of UNTETHER.tv, in collaboration with MobileGroove — catches up with Kevin  C. Tofel, Mobile site editor at GigaOM.com, where he covers mobile technology and the global wireless industry. Continuing our theme for January, we deep-dive into his list of 16 mobile industry predictions for 2012 and get his take on the week’s hot mobile news.

Rob and I also discuss hot mobile news and the results of a recent survey into our willingness to interact with brands that target us through our social networking profile. The takeaway (further down in this post) provides practical advice for marketers trying to crack the MoSo code. Finally, we recommend a new GigaOm PRO report that looks beyond 2012 to identify the mobile megatrends that will surely define the next three years (and beyond).

Wearable computing

Kevin, a gadget guy and tech aficionado, doesn’t just write about technology. He lives it. His enthusiasm for smart homes and wearable computing (the top two predictions on his thought-provoking list) is based on real-life road tests of smart devices (which he shares in his interview), as well as insights drawn from interviews with industry movers and shapers. Kevin’s take: Watch for wearable computers (specifically those related to monitoring and communicating information about our heath and wellness) to become more mainstream.

A big boost to all this is bound to be the advance of  Bluetooth 4.0 (which has already been embraced by Apple and Nokia). By way of background, Bluetooth is an open wireless technology that allows wireless communication over short distances. It’s a secure protocol that connects mobile as well as fixed devices, and could disrupt everything since it effectively enables communication with your device at the application level, as this blog post via ExtemeTech details.

Microsoft & more

In line with the news of day, Kevin and Rob dissected the decline of Research In Motion (RIM) — which was interestingly also one of Kevin’s 2012 predictions. His take: RIM’s missteps and late reaction to competition finally exact a toll. Expect RIM to be bought (mainly for its patents), or become a services-focused company.

Microsoft is a tough one to call. Kevin reported that CES was upbeat about the Windows Phone, a reaction Kevin reads as a positive in Microsoft’s favor. He concludes Windows Phone will see some serious adoption and —in any case — outsell RIM.

However, the picture outside the U.S. is less clear.

I point out that Lumia initially got a lukewarm response in Europe. While I didn’t go into deep detail during the vodcast, I was referring to a December survey by Exane BNP Paribas that showed European consumers had little interest in Nokia’s Lumia, the first smartphone using Microsoft’s Windows Phone software. Specifically, only 2.2 percent of surveyed buyers (1,000 across five countries) said they intended to purchase the Lumia, far behind devices from Apple and Samsung. Meantime, we learn from Bloomberg (according to the average estimate of 22 analysts) that Lumia handsets, which went on sale in Europe in November, probably sold 1.3 million units globally to operators and retailers by end-2011.

Mindshare is a different story, and to make this point I quoted the phenomenal Developer Economics report from VisionMobile (sponsored by BlueVia). It draws from 900+ developer interviews to conclude that “Windows is not yet the third horse in the three-horse mobile race.” However, this could shift if developers begin to see Windows Phone as a commercial viable platform. Kevin and I agree: developer intent and mindshare could shift this.

BTW: This is why I am eager to see the results to the NEW Developer Economics report slated for release in February. With this in mind the report is also a focus at m-pulse in March, when we dedicate the month to issues around developers and the App Economy. Kudos to Andreas Constantinou, Matos  Kapetenakis and the rest of the team at VisionMobile for delivering us one of the best industry reports — and filling a critical knowledge gap.

Social media do’s & don’ts for marketers

As part of the m-pulse flow Rob zeroes in on the headlines rocking the mobile space. I, on the other hand, prefer to look at people and the data points that provide us insight into how mobile is impacting our lives at all levels. Obviously, our attitudes and usage are essential data for trend-watchers and companies across the ecosystem…

With that in mind I highlight a rather obscure report from Insight Strategy Group (via Mediapost) looking at social media campaigns and marketing and what people will and will not accept. I have failed to get a copy of the original results, so there’s still a question mark over the methodology.

However, the finding (though focused on online) are also relevant to mobile, our default state when we connect with our social networks in the first place.

Among the findings:

• 64 percent of people say they “hate” when a company targets them through their social networking profile
• 58 percent agree that social media marketing is invasive
• 55 percent believe social networking sites are the best way to give a company feedback and that posting about a product or service on a social site can have a strong impact on a brand
• 62 percent of those who have been using social sites for more than eight years are following brands, compared to 46 percent of those on social networks for only three to four years, and 20 percent using them for less than a year
• 54 percent of people say they like it when a company has a page or feed on a social networking site.
• 58 percent indicate incentives help attract their attention — and the most common reason for following a brand on social networks is to get special news and deals.

Read between the lines, and we have a welcome confirmation of the conversational nature of social media and clear indications of what brand marketers should and shouldn’t do. People don’t want to be followed/stalked by brands. They want conversations on their terms — and like it when brands have a presence on a social networking site.

And what can turn a fan into a brand advocate? Interestingly, exclusive information and deals are effective incentives. This finding jives with what Millennials told me during the series of virtual round tables I conducted on behalf of Optism. My work was to delve into the reasons why Millennials might opt-in to accept advertising. To my surprise, Millennials were lukewarm about freebies and told me it was more important to be one of an in-crowd and get all the products news and deals before their peers.

This survey (mixed with my other research findings) sends a clear message to marketers: respect your customers and don’t target them through their social networking profile. But do be present and available to listen to their feedback and provide input that they welcome (and find non-invasive). You may also turn that one-off conversation into an ongoing exchange with your brand if you provide an incentive people value (such as access to news and deals about they products they love).

Must-read Mobile Anthology

Finally, I raise my goblet of rock and salute The Future Of Mobile: A Segment Analysis by GigaOM PRO. The 115+ page report explores what the future of mobile holds for various segments of the mobile industry. From mobile cloud computing, to location based services, to mobile search and personalization, the authors (all subject matter experts in their respective fields), offer unique viewpoints based on hard market data and research.

I am proud to have contributed the section on Mobile Search, where I discuss the evolution of mobile search and the new breed of mobile search service providers harness Artificial Intelligence (AI) and recommendation to move the market (and our now zero-search experiences) to the next level. (See related summary post in Featured section.)

If you want a report that delivers actionable insights for 2012 and far beyond, then register to download this report TODAY!

And don’t forget to check out episode #3 of m-pulse

Look for m-pulse every Friday for your weekly dose of what matters most in mobile. This month our topic is 2012 predictions that set the bar, and our guest next week is Chetan Sharma, who will discuss the top level findings of his recent survey and his pick of 2012 trends.

A raft of recent developments supports the observation that this device is indeed a game-changer, starting with buoyant sales numbers that have exceeded everyone’s expectations. Barclays analyst Anthony DiClemente (via All Things Digital) has upped his original estimate of 4.5 million units sold last quarter to 5.5 million. Piper Jaffray is convinced Amazon is on track to sell 10-12 million Kindle devices (Kindle and Kindle Fire), up from the initial estimate of 9 million units. Meanwhile, analyst Tavis McCourt at Morgan Keegan has downgraded his iPad sales forecasts for the quarter from 16 million units to 13 million. (Again, sales lost to Kindle Fire.)

Speculation abounds over precisely how many Kindle Fires have been sold. Amazon, of course, is keeping the real sales figures to itself. (Amazon has only said that it sold more than 1 million Kindles in December, but did not break that figure out by device.) So, we have to connect dots in recent analyst estimates to arrive at a more accurate picture.

Mobile advertising impact

November numbers from independent mobile ad and data platform company Millennial Media show serious momentum is building for the new tablet device, a trend that could spread from the U.S. to Europe when the Kindle Fire sets markets here ablaze.

Specifically, the company’s November Mix (a monthly series of reports revealing key advertising trends with a focus on mobile manufactures, devices, operating systems and connected devices based on actual campaign and platform data) states that “impressions from the Kindle Fire have grown at an average daily rate of 19 percent” since the device was launched in November.  The Millennial Media report stresses it’s not just seeing millions of impressions. “We’re seeing a monthly run rate of hundreds of millions of impressions.”

Smartphones are another story. This category accounted for 70 percent of all impressions (connected devices follow at 16 percent, ahead of feature phones at 14 percent), with Apple’s iPhone leading the pack. It generated 13.54 percent of impressions in November, far ahead of Blackberry, which came in a distant second.

Europe warms to tablet devices

Amazon’s Kindle Fire is exploding in popularity, a development that has serious consequences for developers everywhere (as this guest column from Mubaloo points out). Its affordable price, stockpile of content and tight-knit ecosystem certainly positions this device to move in on the territory so far dominated by Apple.

Aware of this other players are preparing for impact. Just this week mobile operator Orange UK has announced its own branded tablet, the new Orange Tahiti Android tablet (using the Android Honeycomb operating system that also gives users access to Android apps). The device, a re-branded Huawei Mediapad that features a 5-megapixel camera, A-GPS, Wi-Fi, Bluetooth and 3G+ support, is available from GBP 69.99 with a 2-year GBP 25 per month data plan. It is also free to users as part of a Connected 24 month plan with the San Francisco II handset for GBP 41 per month.

With major events such as the Olympics coming to the U.K., players such as Orange no doubt expect the uptake and use of connected devices to skyrocket.

And it’s not just a hunch. Orange Exposure, an annual independent study by research firm TNS into mobile usage and habits across 2,000 users (U.K., France, Spain, Poland) shows tablet devices could be cannibalizing home TV viewing and are definitely boosting mobile commerce.

Among the key findings:

• Tablet users were 50 percent more likely to purchase online than mobile users
• 60 percent of tablet users have made at least one ‘m-commerce’ transaction compared to 47 percent of mobile users
• Respondents are more likely to use smartphones to ‘kill time’ and are more likely to use tablets to ’save time’ (an average grade of 7 on 10 for both devices)

Is the tablet our new sit-back device — the one we’ll reach for to research products while relaxing on the couch?

It’s a tough one to call. However, this trend (consumers opting for their tablet over their PC) presents advertisers with unique opportunities to capture attention and engage consumers that encourage purchasing decisions.

As Bruce Hoang, group marketing director, Orange Advertising Network, put it in a press statement: “This is the first time we have included tablet usage in the Orange Exposure report and the findings are quite stark in their description of how people are using devices. Clearly, the one-size-fits-all approach for digital content across TV, PC, smartphone and tablet does not work, and this has significant implications for content producers and advertisers.”

Interestingly, a survey of 2,000 U.K. adults by YouGov found that ordinary Amazon Kindles were a holiday favorite, with one in 40 respondents receiving a e-reader as a gift (92 percent of them Kindles, or 1.22 million units). In comparison, the survey suggests 640.000 tablets were given as gifts, 72 percent or 460,800 of them iPads. Connect the dots, as YouGov has, and the stars are aligned for Kindle Fire to be key to driving tablet ownership in the U.K. in the next 12 months.

My take:

Connected isn’t a fad; it’s a hard fact. Tablets are taking off and the Kindle Fire is poised to make its mark on Europe. Are industry observers such as Greg Stuart, global head of the Mobile Marketing Association (MMA), correct when they say tablets will have a huge influence on mobile advertising? Data points and developments certainly support this conclusion. Millennial Media — which research firm IDC says is now the second largest mobile display ad network after Google and ahead of Apple —  draws from a significant number of impressions on its network to conclude impressions from Kindle Fire are on a steady growth curve. This dovetails with user research from Orange indicating tablets (as a category) are for saving time, not killing it, and conducting commerce. As a prime replacement for the PC, where many of us spend hours researching products and digital stuff we want to buy, the rise (and rise) of the tablet forces brands and marketers to expand their ‘mobile’ strategies to include a variety of connected devices if they want to connect with consumers at every stage of the consumer journey (awareness, engagement, consideration, conversion and loyalty).

Disclaimer: News and analysis of developments impacting mobile advertising and the business ecosystem is sponsored by Millennial Media.

The drivers are many and the impact is tremendous. The rise (and rise) of mobile retail, the advance of smartphones and connected devices, and the heightened interest among companies across all verticals (retail, automotive, finance, pharmaceutical — the works!) make it imperative for us as an industry and ecosystem to ask (and answer!) some tough questions.

How big is the opportunity really, and what are the countries/ regions to watch? What are people’s attitudes toward mobile and mobile advertising, and how are they likely to evolve? Where should mobile play in a well-executed, cross-media campaign? How are leading brands using mobile to achieve spectacular results, and what were the learnings along the way? And the list goes on….

The trends and developments on the horizon are exciting — and confusing. Brands, agencies and the entire mobile marketing ecosystem must plan for a new phase of growth and activity. And they must prepare for the wave of change, rather than be crushed by it.

Stand up and speak up

To this end the Mobile Marketing Association (MMA) is collaborating with Millennial Media, an independent mobile ad and data platform company, and MobileGroove to research and produce a comprehensive knowledge resource. This definitive work —which will include detailed market data, case studies, best practices and exclusive insights from executives and companies that have harnessed mobile to drive positive business results — is slated for release in 2012.

To ensure that this resource examines the topics and trends that are truly top of mind and correctly reflects the level of interest, activity and investment in mobile marketing the MMA is also conducting a global survey of agencies and brands (only).

The survey takes only five minutes to complete and YOUR voice matters to us.

Take our survey and share your insights.

Please note that the survey will only run until the end of December, so why not take some time to fill it out right now so it doesn’t slip your mind later?

As a special bonus, the MMA will share the results with brands and agencies that participate in the survey.

We thank you in advance for taking part in this important survey and we are proud to provide you a roadmap to navigate the mobile marketing opportunities and challenges ahead.

IBM’s Smarter Commerce initiative has produced a new online retail benchmark study, research that compares Cyber Monday 2011 versus Cyber Monday 2010 and reveals some surprising trends. By way of background, these early holiday season findings are based on data from IBM Coremetrics Benchmark, an analytics-based, peer-level benchmarking solution that measures online marketing results, including real-time sales data from the web sites of more than 500 leading U.S. retailers. All of the data is aggregated and anonymous.

Predictably, we are willing to spend more when shopping on the Internet. Online sales in the U.S were up 33.0 percent over 2010, with consumers pushing the average order value up from $193.24 to $198.26 (or an increase of 2.6 percent). The real news is our increasing reliance on mobile. Specifically, 10.8 percent of people used a mobile device to visit a retailer’s site, up from 3.9 percent in 2010. Additionally, mobile sales grew dramatically, reaching 6.6 percent on Cyber Monday versus 2.3 percent in 2010.

How did Cyber Monday 2011 compare to Black Friday 2011?

• Online sales were up 29.3 percent over Black Friday
• On Cyber Monday mobile traffic averaged 10.8 percent compared to 14.3 percent on Black Friday
• Consumer sales on mobile devices reached 6.6 percent versus 9.8 percent on Black Friday
• Apple’s iPhone and iPad continued to rank one and two for mobile device retail traffic (4.1 percent and 3.3 percent respectively). Android maintained its position in third at 3.2 percent. Collectively iPhone and iPad accounted for 7.4 percent of all online retail traffic versus 10.2 percent on Black Friday
• Shoppers using the iPad also continued to drive more retail purchases than any other device with conversion rates reaching 5.2 percent compared to 4.6 percent

How I See It: Mobile has become as much a part of the holidays as snowflakes and candy canes. Several surveys, including one from Hipcricket, show that consumers would use their devices in-store to compare, shop, read product reviews and more. But it’s not just a shift in attitudes that we see. A near tripling of mobile web site visits and sales from mobile are clear indications that people are engaging in mobile retail. Indeed, mobile shopping is fast becoming a mainstream activity and the market has moved past the early-adopter stage. To the brand marketers who have yet to get on board, I offer two thoughts. One: you have some serious catching up to do. And it’s not like we kept you in the dark about the tremendous mobile opportunity or you weren’t given enough information to act. Two: there is still time for you to create a mobile advertising campaign for this holiday shopping season. But planning broadly for next year should start before Santa parks the sleds and calls it another season.

Facebook’s big mistakes

The social networking service Facebook agreed to settle Federal Trade Commission (FTC) charges that it deceived consumers by telling them they could keep their information on Facebook private, and then repeatedly allowing the personal data to be shared and made public. The proposed settlement requires Facebook to take several steps to make sure it lives up to its promises in the future. Top of the list: Facebook will have to obtain people’s express consent before their information is shared beyond the privacy settings they have established (and agreed to) on their Facebook page.

The FTC charged that the claims Facebook made were unfair and deceptive, and violated federal law. As Jon Leibowitz, FTC Chairman, put it: “Facebook is obligated to keep the promises about privacy that it makes to its hundreds of millions of users.” Facebook’s innovation “does not have to come at the expense of consumer privacy.” The FTC action is aimed to make sure it doesn’t.

Interestingly, the FTC complaint also lists a number of concrete instances in which Facebook allegedly made promises that it did not keep:

• In December 2009, Facebook changed its website so that certain information users may have designated as private – such as their Friends List – was made public. Facebook didn’t warn users that this change was coming, or get their approval in advance.
• Facebook stated that third-party apps that users installed would have access only to user information that the apps needed to operate. In fact, the apps could access nearly all of users’ personal data – data the apps clearly didn’t need.
• Facebook told users they could restrict sharing of data to limited audiences – for example with “Friends Only.” In fact, selecting “Friends Only” did not prevent their information from being shared with third-party applications their friends used.
• Facebook had a “Verified Apps” program and claimed it certified the security of participating apps. It didn’t.
• Facebook promised users that it would not share their personal information with advertisers. It did.
• Facebook claimed that when users deactivated or deleted their accounts, their photos and videos would be inaccessible. But Facebook allowed access to the content, even after users had deactivated or deleted their accounts.
• Facebook claimed that it complied with the U.S.- EU Safe Harbor Framework that governs data transfer between the U.S. and the European Union. It didn’t.

In this blog post Facebook founder Mark Zuckerberg apologized and pledged to do better.

His response to the strong allegations: “Overall, I think we have a good history of providing transparency and control over who can see your information.”

But he did admit to making some mistakes along the way. “In particular, I think that a small number of high profile mistakes, like Beacon four years ago and poor execution as we transitioned our privacy model two years ago, have often overshadowed much of the good work we’ve done.”

Zuckerberg also showed some understanding for the hundreds of millions of members who feel their personal information —and trust— was compromised. “Even if our record on privacy were perfect, I think many people would still rightfully question how their information was protected. It’s important for people to think about this, and not one day goes by when I don’t think about what it means for us to be the stewards of this community and their trust.”

He closed his post reminding us that Facebook has always been committed to being transparent, and promised to do better in the future. “I’m committed to making Facebook the leader in transparency and control around privacy,” he stressed.

How I See It: This is cause for public outrage, but I’m not seeing it. Consumers have not punished Facebook for its deception despite repeated reports of infractions. That’s either because they haven’t noticed that Facebook has breached their trust, or they simply don’t care. I believe it’s mostly the latter. Zuckerberg said all the right things in his blog and public apologies. But the company’s actions are really all that matter. If Facebook members won’t do anything about Facebook’s privacy breach, then the FTC has shown that it will.

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).

True to its 10-year tradition the new Netsize Guide — titled Netsize Guide by Gemalto: Truly Mobile — offers us all this and more in one comprehensive industry resource, available from today for free download.

This edition — the fourth mobile industry book I have had the pleasure to research and write the book on behalf of Netsize — charts truly new territory as we move beyond recounting the industry milestones to indentifying the three themes that will define the next phase of mobile.

TRANSACTION: We have come to rely on mobile devices at every stage of the consumer journey. From researching products (which we likely learned about through more relevant and targeted advertising delivered directly to our mobile phones in the first place) to making purchases (transactions we complete using our mobile phones or specially-enabled NFC devices), we reach for our mobile devices for assistance.

TRANSFORMATION: We recognize that mobile is much more than a portable device. These devices are also acquiring the capabilities to transform long-established business models around the content, communications and connectivity. The cloud allows us to demand — and expect —  simple and easy access to our media, content and networks anywhere, anytime. Significant progress in search, personalization and Artificial Intelligence (AI) over just the last 12 months allows us to think of our mobile phones as smart assistants, equipped with intelligence, judgment and human-like traits. And the advance of IP-based applications that enable one-to-many messaging encourage the growth of one-to-many broadcast models that revolutionize communications and disrupt telecoms strategies that placed mobile operators in control.

TRUST: We foresee that trust is what matters most in mobile, and what will define the next phase of mobile innovation and growth. Why? Because only a relationship built on trust will provide companies the access to the customer insights and information that lay the foundation for the applications, devices, services and infrastructure we want (and will come to demand).

Exclusive exec interviews

Understanding the interplay of the three key themes that define this year’s Netsize Guide equips companies across the industry to prepare for the next phase of mobile.

To drive home this point we draw from  insights and interviews with over a dozen senior executives from companies across the business ecosystem including:

• ARM, Rob Brown, Director of Marketing, Secure Services Division / @ARMMobile
• Atlas Premium Brands, Nigel Tatlock, CEO /@SportsLockerTV
• BNP Paribas, Philippe Gillet, Director, Strategy & Innovation
• CMO Council, Donovan Neale-May, Executive Director/ @cmo_council
• The Coca-Cola Company, Tom Daly, Coca-Cola Group Manager, Global Connections
• Gameloft, Gonzague de Vallois, Senior Vice President Publishing / @gameloft
• GlobalPlatform, Gil Bernabeu, Technical Director
• Informa Telecoms & Media, Pamela Clark-Dickson, Senior Analyst, Mobile Content & Applications / @PamelaC­_D
• Millennial Media, Gavin Stirrat, Managing Director, EMEA/ @millennialmedia
• Singtel, Madeline Tan, Advertising Sales, Director
• Texas Instruments, Jean-Philippe Galvan, IP Domain Director / @TXInstruments
• TrustedLogic, Christophe Colas, Marketing Director
• Yahoo!, Steve Douty, VP of Applications and Mobile Products / @sdouty

Stellar record

In its 10-year history  the Netsize Guide has built a large, loyal and global audience of mobile professionals and practitioners. In fact, a recent survey of readers —conducted by Netsize —revealed that the vast majority of respondents (75 percent) consider the book to be an essential read and gave it an ‘8′ or higher (on scale of 1-to-10).

A real crowd pleaser continues to be the wealth of market statistics and data Netsize provides the industry based on data compiled by partners such as research firm Informa Telecoms & Media. This  year — thanks to partnerships with new partners comScore and SocialBakers — the book also details operator market share, smartphone penetration, and consumer usage of mobile apps and social network Facebook across 40+ countries.

My take:

It has been a huge undertaking and the result is a 220-page must-read knowledge resource packed with detailed market data and insights from executives and companies that shape our mobile society. I am particularly proud of the thought leadership sections that identify the three key themes sure to define the next stage of mobile growth and innovation.

Indeed, a walk through our daily routine confirms the pivotal importance of trust in all things mobile (and digital). We demand relevant advertising and content, for example. However, only companies we trust with our data will be able to deliver us what we will likely appreciate. We are willing to buy goods and services with our mobile phones. (And let’s not forget that mobile is the only way to do banking in underbanked areas such as Africa.) However, it’s the companies that can ensure the integrity of our data and transactions that will be the ones we trust to deliver us secure mobile money services. We want to communicate and connect via our social networks. Never again if (like Facebook) the companies we trust with our personal information chooses to divulge this data to third parties and partners without our knowledge or consent.

Understanding the interplay of these three key themes is what makes this year’s Netsize Guide by Gemalto essential – and unique.

My warm and personal thanks to Alexander Vlasblom, Marketing Communications Director, Netsize & Trusted Logic, for great ideas, welcome inspiration and good humor throughout the process. Thanks also to Marko de Hoop, the freelance designer who worked with the team to make this new Netsize Guide by Gemalto one we can all be proud of…

Disclaimer: Netsize collaborates with MobileGroove’s Peggy Anne Salz since 2007 to research and write strategic thought leadership and collateral including the new Netsize Guide by Gemalto. You can explore these industry reports and books here.

This massive growth, with ad spend increasing over 356 percent year-over-year, confirms banks, insurance companies and credit card companies are aggressively using mobile to raise awareness of their products and services, generate leads, encourage app downloads and —significantly—engage more with people on their device(s) of choice. The vast majority (80 percent) of people accessing financial information or apps are smartphone owners, (more than double the general mobile population). Moreover, the mobile finance user is also 76 percent more likely than the general mobile user to own a tablet or e-reader device.

Watch for more stats and insights in Mobile Intel: Finance, the third in a new series of reports slated for release in the next weeks. Mobile Intel draws from  consumer research from comScore and platform data from Millennial Media to help brands understand the mobile finance users and the opportunities to engage with them on mobile.

These are some of the key findings covered in the Q3 S.M.A.R.T. report (Scorecard for Mobile Advertising Reach and Targeting), strategic intelligence aimed at helping advertisers make informed mobile media planning and campaign decisions based on network data provided by independent mobile ad and data platform company Millennial Media.

Tech sector takes off

Per the S.M.A.R.T. report a total of six verticals experienced triple-digit growth or greater year-over-year, with Technology leading the pack. The tech sector, where campaigns are focused on B2B offers such as cloud storage and consulting,  saw explosive growth of 687 percent, followed by CPG (up 378 percent).

Significantly,  Entertainment, which ranked number two in the U.S. and number one globally,  increased ad spend 145 percent year-over-year (Q32011 vs. Q3 2010). The jump confirms advertisers are leveraging mobile to drive awareness of blockbuster movies (and visits to theaters showing them), as well as create buzz around DVD releases, TV series and social media strategies.

Meantime, brands across all sectors are ramping up their use of video in mobile advertising campaigns. The report shows that the number of campaigns on the ad platform providing people the option to view a video (post-click campaign objective: watch video)  increased 78 percent in Q3 (compared with Q2) an accounted for 32 percent of all campaigns in Q3.

According to Millennial Media, a key driver is the use of video by entertainment brands to drive people to movie trailers.

Video and devices

Indeed, our growing enthusiasm for mobile video —content that shines on smartphones and pushes the envelope on tablet devices— is further confirmed by report findings that shed light on current developer and publisher trends.

Significantly, the iPad, Samsung Galaxy Tab and Motorola Xoom were the top three tablets on the ad network in Q2. Impressions on the iPad alone were up more than 450 percent for the whole of 2011.

Overall, smartphones grew 7 percent quarter-over-quarter and continued to dominate the category Smartphone, Feature Phone & Connected Devices with 72 percent of impressions. Android led the connected device and smartphone mix with 56 percent of the impressions, compared to 28 percent for Apple iOS and 13 percent for RIM BlackBerry.

Smartphone penetration continues to climb, and so does our interest (and  activity) around gaming apps. In fact, Games, which have been the number one  application category on the Millennial platform for over a year, continue to grow.

Games generated 34 percent of impressions, up from 26 percent the previous quarter. Other app categories included Music & Entertainment, Mobile Social Networking, Communications and News, which saw impressions grow 36 percent quarter-over-quarter to account for roughly 25 percent of ad impressions in Q3.

Local gets a boost

Another highlight of the new Q3 S.M.A.R.T. is the focus on targeting methods and new results that show the use of local market targeting is on the rise.

Specifically, nearly half (45 percent) of advertisers used targeting to reach their audience. Of those 66 percent made use of location to connect with people in the correct context, representing a 50 percent quarter-over-quarter increase. The balance of targeted campaigns relied on behavioral and demographic factors.

Connect the dots, and brands are buying on a national scale but tailoring their ad campaigns to drive people to local bricks-and-mortar destinations (retail outlets, businesses, branch offices). This jives with the report finding that a significant number of post-click actions centered on encouraging people to complete purchases using their mobile devices.

Get ready for holiday shopping

Finally, the new report draws from consumer research conducted by InsightExpress to help brands map out where (and how) they can use mobile in the marketing mix. Specifically, InsightExpress’ Q3 2011 Digital Consumer Portrait found that 32 percent of consumers plan to use their mobile devices to help research products by comparison shopping, while 27 percent will use them to read reviews while in the store.

My take:

InsightExpress provides us yet another data point confirming that mobile shopping (and all the interactions leading up to the purchase) is bigger and poised to be ever bigger as we enter the first full week holiday shopping season today.

But that’s just one notable trend documented in this new S.M.A.R.T. We also learn that mobile represents a mega-opportunity for brands across all verticals. Technology, for example, grew a whopping 687 percent. Meantime, financial services sector moves up the list of Top 10 Advertising Verticals to place #1 in the U.S. and #4 internationally. This is significant and underlines the perfect fit between personal finance offers and advertising delivered to our fiercely personal mobile devices. Banks, insurance companies and credit card companies see a connection, which is why they are spending 356 percent more (for the period Q2 2010 to Q3 2011) to connect with us on out mobile phones. But the real news is what we can likely expect from this vertical moving forward. Clearly, mobile is emerging an ideal vehicle to do much more than raise awareness of products and generate leads. Therefore, expect companies across the Finance vertical to become progressively more creative in their use of the mobile channel to achieve their wider business objectives: drive customer retention, encourage cross-sell/up-sell and keep customers loyal.

Disclaimer: Analysis and best practice across the mobile advertising and marketing ecosystem is sponsored by Millennial Media, a MobileGroove client and supporter.

Over the years, Meeker has been quoted in a variety of sites and publications worldwide. And her most repeated forecast — the prediction that more people will access the Internet on a mobile device than on a personal computer by 2015 — is a key data point that continues to get play in industry presentations, conferences and research around the globe.

Meeker’s annual analysis of the trends and stats that matter most is eagerly awaited — and this year was no exception. Her latest research was unveiled this week at the Web 2.0 Summit in San Francisco,  where she provided an inside look at the latest in mobile trends globally, including mobile penetration, mobile usage and mobile advertising spend (still out of sync with actual mobile use, by the way).

Among the highlights:

• Smartphones surpassed feature phone shipments in Western Europe in the second quarter of 2010 and in the U.S. in the first quarter of 2011. Meeker says “the rest of the world will follow.”

• The number of global mobile 3G subscribers has grown 35 percent year over year to total 936 million, or 17 percent of all mobile subscribers.

• There are approximately 835 million smartphone users worldwide, compared with a whopping 5.6 billion mobile users in total (this includes people with feature phones or low-end devices)

• Android phone adoption has ramped up faster than iPhone

• 85 percent of the world’s population is covered by commercial wireless signals, providing greater reach than the electrical grid (which covers 80 percent of the population)

Meeker pointed out that these developments bode well for the tech industry. As she put it: “Wow! Unprecedented times! If you can keep your head when all about you are losing theirs…”

What about the global economy? Meeker said economic woes worldwide are formidable, but not insurmountable. “(It’s) Often darkest before dawn,” she told the summit audience. “At least we know what the problems are. Now we need the resolve to fix them. Across-the-board sacrifice [is] needed.”

How I See It: Many people make bold predictions when it comes to mobile. Some of them are on the mark, and others miss it. Take the recent claim (via this interview in AdWeek) that the advertising spend on mobile will exceed that of television. The statement received headlines, but was promptly dismissed by many in the industry (including myself) as pure exaggeration. However, Meeker and her annual forecast have the credibility and track record to guide us. I encourage every marketer to listen up and put her on the “can’t miss” list.

Africa by the numbers

Sadly it wasn’t news to me when Nielsen reported that more people in Africa have access to a mobile device than they do to clean drinking water.

However, the other data points Nielsen published in this recent post summarizing the current state of mobile in South Africa were entirely new, shedding light on an abundance of opportunities for marketers everywhere.

Among the highlights:

• South Africa ranks fifth in the world for mobile data usage, ahead of the U.S., which ranks seventh.
• Facebook is the most popular social media platform, used by 85 percent of mobile subscribers. Half of all users of Facebook in South Africa access the site via mobile.
• Text messaging is used by almost 4.2 times more people than e-mail. More than two-thirds (69 percent) of consumers prefer sending texts to making voice calls, largely because it is less expensive to text than call. Additionally, 10 percent of respondents believe texting is a faster way of communicating.
• The majority (60 percent) of South African mobile users said they are aware of mobile banking services offered by banks, but only 21 percent say they use such services. A much larger number of those aware of the services said they would never use them, suggesting banks might need to invest in communicating the benefits and security of mobile banking.

Check out the full blog post and details on the study here.

How I See It: Mobile is global — and we should make it our business to keep abreast of usage and attitudes around the world. The last months have shown that many countries outside the U.S. are leading in areas of mobile, delivering us exciting case studies and key learnings. Informa reports that Nigeria leads in mobile banking; Hong Kong has the most mobile shoppers (with 35 percent using their mobile to research products and purchases); and we all know that Japan was the pioneer in barcodes and NFC. Granted, it’s difficult to draw parallels between mobile interests and activity from one continent to another. But what is useful and essential in my view is the periodic monitoring of mobile around the world to help us anticipate change – and capitalize on it.

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).

The impact of mobile on shopping and commerce was also the focus of proprietary research I introduced last June in an in-depth interview with Peggy here on MobileGroove. My findings highlighted precisely how consumers use their social networks to get input and advice at a brand’s “Moments of Trust”.  The result (as I point out in my own blog) is profound impact on sales and loyalty.

Interestingly, Yahoo has released insights that confirm my findings and help us better understand the impact of mobile Internet on mobile shopping and purchases. Yahoo teamed up with Nielsen to interview 8,384 U.S. residents ages 13-64 via an online quantitative survey. Of this sample: 5,313 were mobile Internet users who access information related to at least one of 12 product categories. 3,071 were PC/Laptop Internet users who access information related to at least one of the 12 product categories and could not access any category Internet information on a mobile device.

So, what is the place of mobile in our shopping experience? Yahoo findings indicate mobile is at the center of the in-store action, making mobile devices a great advertising vehicle for retailers. In fact, a whopping nine out of 10 mobile users have accessed the mobile Internet while they were actually in the store. What’s more, approximately 50 percent of in-store mobile web activity is related to shopping. And people also share while they shop. Almost half (48 percent) of in-store mobile users take and/or send a picture of a product they are considering buying to a friend or family member.

Among the key findings:

• 51 percent of consumers indicated that they do make a purchase after doing research on their mobile device.
• On average 16 percent use their mobile phones for shopping research, but interest for this in the next 12 months is extremely high at 57 percent among mobile Internet users and 41 percent among non-mobile Internet users, on average.
• One in 5 mobile shoppers who have seen advertising during the shopping process say they always look at it. The key to being successful in mobile shopping advertising is to make sure the ads are informative.

How I See It: It’s 100 degrees fahrenheit in many places, but towel off and lock in your mobile strategy for the holiday season. Marketers and retailers alike have to ask (and answer) some tough questions: How will you influence your customers at the point of sale? Are your salespersons ready for shoppers who have instant access to information, product reviews, and competitors’ prices? Is there a plan for consumers who are using mobile to speak about your products and services (or just let off steam) via their social networks? You can forget the holidays (and celebrating anything any time soon), if you haven’t figured even the basics of where mobile fits in your business.

* * *

eMarketer also weighed with new research about consumer behavior and how people use the mobile Web.

It estimates that more than 91 million U.S. consumers will use the Internet via a mobile device at least monthly by the end of this year, up from 77.8 million in 2010.

The eMarketer story based this conclusion on the findings of a recent study by Affinity Research that identified a “generation gap” in mobile device preference. Put simply, older consumers favor tablets and ereaders, while younger users are adopting smartphones at rapid rates.

Specifically, 85 million Generation Xers have a tablet and are 16 percent more likely to have a tablet than average. Approximately 59 million Boomers have an ereader and are 19 percent more likely to have one than others. Also, 47 percent of Millennials have a smartphone and are 28 percent more likely than average.

According to the Pew Internet & American Life Project, Millennials and the younger end of Gen X own more smartphones than those over the age of 35. Additionally, Affinity reports that more than 24 million Millennials plan to purchase a smartphone in the next six months.

How I See It: What first appears to be dizzying fragmentation in how we access the mobile Internet is actually a crystal-clear opportunity for marketers to connect with their customers on precisely the devices they prefer. The upshot is mobile marketing that both pleases the individual and generates business. Everyone watching television can’t be pigeon-holed into one segment, group or demographic, and the same goes for mobile. Knowing the device preference of your audience is key. This site and others provide valuable consumer insights that can make or break your campaigns. So, read up and take some notes. And keep in mind that users behavior evolves quickly. If your data on mobile users has dust on it, freshen it today.

Meet Paul Gelb of Razorfish, who redefines what it means to be bullish. (Disclosure: Razorfish is a Hipcricket client).

In an interview with Adweek, Paul, the agency’s mobile practice lead, was quoted as making the mother of all mobile predictions.  “I think mobile ad spend will overtake television,” he stated.

To put that into perspective, you need to know that a cool $131 billion was spent on television advertising in the U.S. alone last year. By comparison, JP Morgan predicts that mobile ad spend will reach about $1 billion in the U.S. in 2011.

The reasons for Paul’s optimism? He bases it on what he sees and knows about the industry. As he told Adweek (and has outlined in presentations), mobile is the first truly mass media.

Mobile beats TV on reach. Paul points out that there are over three times more mobile users than there are TV viewers. And mobile is the brand communication channel. Put another way, mobile is the most adopted technology and media channel in history with high engagement rates and 24-hour access to users.

What’s more, Paul believes that the rapid adoption of mobile is setting the stage for a dramatic shift in the advertising spend. “If you’d predicted then that smart phones could outsell PCs and that people would spend an hour a day on their phones, no one would have believed you,” he said.

And even if some remain disbelievers, the number of brands convinced of the power of mobile is on the rise. Driven by increased client budgets Razorfish’s mobile practice has grown to 45. “We can’t staff as quickly as we want,” Paul said.

How I See It: In the 12 years that I spent working in advertising and PR firms, I did not see agencies increase headcount if they didn’t have the client work to back it up. The agency model is to win business, then staff against it. I’m not privy to Razorfish’s mobile revenue, but I do know they are very active and certainly wouldn’t staff up wildly in the hopes of winning business.  As for Paul’s prediction, he certainly has good reason to believe mobile will be huge. I also know that mobile’s going to be big, but forecasting too far out is problematic for me.

* * *

More news that tells us brands are upbeat about mobile and putting their money into it. The International Advertising Bureau (IAB) — an organization that brings together more than 500 leading media and technology companies responsible for selling 86 percent of online advertising in the U.S. — released a study this week. The press release catches our attention with the provocative headline: Study Finds Nearly Three-Quarters of Top Marketing Executives Look to Increase Their Mobile Spend Over Next Two Years.

The study, based on a survey of 300 top-level brand marketing executives currently using mobile in their media mix, was commissioned by the IAB Mobile Marketing Center of Excellence and conducted by Ovum.

Among the findings:

• 63 percent of respondents stated that their companies’ mobile advertising spend over the past two years has increased
• 29 percent report an increase of over 50 percent
• 72 percent of these decision-makers say they are looking to increase their mobile advertising budget over the next 24 months
• 35 percent of respondents expect to increase spend by over 50 percent

Additionally, half (51 percent) of the brand marketers surveyed already treat mobile platforms as an integral element of their overall advertising strategy. The other half of the survey’s respondents are likewise intrigued by the benefits of mobile advertising, and are currently investigating how to best leverage mobile platforms within their marketing plans. Finally, more than a third (35 percent) of respondents stated they are “experimenting” with mobile, while another 14 percent are tapping into mobile on an ad hoc basis.

But its not all growth and excitement. Respondents were also queried about challenges. It turns out there are several hurdles that influence the decision to make larger mobile ad buys:

• Device fragmentation (cited by 72 percent of respondents as a challenge of medium or high importance)
• Privacy issues (70 percent)
• Lack of standardized metrics (69 percent)

How I See It: Are there really 28 percent of marketers who don’t expect to increase their mobile spend in the next two years? They obviously aren’t in Paul Gelb’s camp or on anybody’s bullish list. I was also surprised that only 35 percent of respondents expect to increase spend by more than 50 percent. Either way, the results underline the importance of education about mobile. Obviously more need to be convinced of mobile’s increased and central role in the marketing mix. A big step in this direction will come as we in the industry develop and discuss more ROI-driven mobile programs that make a real difference in a brand’s bottom line.

Peggy adds: Wonderful coincidence Jeff! I was also intrigued by Paul Gelb’s interview in Adweek and immediately connected for a more in-depth interview on MobileGroove. And speaking of interviews, the high point of my week was an audio interview with Ogilvy U.K. vice chairman Rory Sutherland. He pointed out that ad spend may not be the proper metric by which to judge the advance of mobile. Some campaigns (such as text messaging) don’t require huge spend — even though their impact is massive. We also discussed why mobile is already where the action is (and must be). Think context. Timely and ‘placely’ beat TV (and all other channels) every time…more in the two part podcast beginning later this month.

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).

* * *

Mobile operators may be the best marketers of communications services on the planet, but now the time has come for operators to use those same capabilities to communicate more effectively with their customer base. With the majority of the world’s mobile subscribers choosing a prepaid tariff, it’s imperative that mobile operators develop strategies to reduce churn rates and maximize dwindling margins per user.

The race is on as mobile operators gear up to implement mobile loyalty programs designed to extract more value out of their existing customers. However, effective mobile loyalty programs don’t come off the shelf. To the contrary, mobile loyalty programs — like all marketing campaigns — must have a clear objective and speak clearly to the target demographic.

What works — and what doesn’t?

It’s a tough one to call, especially since few companies have investigated (or documented) the real and effectiveness of mobile CRM. Fortunately, a new survey from Analysys Mason (commissioned by Buongiorno, a provider of solutions enabling our mobile connected lives) does both.

The report surveyed 1,029 mobile users (adults and youth) in the U.K., Russia, Spain and Nigeria to learn consumer attitudes across both developed and developing markets toward churn and mobile loyalty programs. The findings highlight five key areas that should be top of mind when operators choose and implement their mobile loyalty programs.

1) Don’t pursue a ‘me-too’ approach. Consumers may be accustomed to loyalty programs from restaurants and retail brands, but most have not yet been approached by their mobile operator. Specifically, the survey found that 73 percent of respondents in the U.K. are members of at least one non-telco loyalty scheme (offered by companies such as banks, supermarkets and department stores) . Surprisingly, the survey also found that only 29 percent of U.K. respondents participate in  reward programs offered by operators aimed at boosting customer loyalty. Additionally, only 27 percent of respondents participate in programs aimed at increasing their spend on services. These low levels of customer participation are even more amazing if we consider that most U.K. operators already have programs in place to reward either customer loyalty or spend, or a combination of the two.

Clearly, there’s more business to be had in mobile. However, mobile operators launching loyalty schemes must be careful to manage customers’ expectations in order to avoid a mismatch. After all, there is little value in a ‘me-too’ loyalty scheme that fails to generate customer interest or engagement.

2) Get close(r) to your customers. Mobile operators own the customer relationship and should leverage those insights to really understand why customers churn and target their loyalty schemes accordingly. Again, this new research sheds much-needed light on the real reasons customer stay — and leave.

Specifically, effective loyalty schemes are the ones that aim to retain users who have the greatest  propensity to churn in the first place. This segment includes younger subscribers (youth) and newly acquired customers.

However, churn is not limited to these customer segments. Earlier research (also conducted by Analysys Mason) reveals that even heavy users — post-paid users that spend EUR30–50 per month — can churn if operators fail to give them what they value most.

So, what motivates users to churn? The survey uncovered the top three reasons:

• Wanting a new mobile phone: More than half of churners said they would change to get a newer model handset.
• Paying too much for calls: For 40+ percent of churners this was a thorny issue. Interestingly, this was a particularly important consideration among respondents in Nigeria.
• Failure of the mobile operator to provide additional benefits to loyal customers: Again, over 40 percent of all churners said this was a chief reason for wanting to change providers.

3) Different customer segments and regions require different incentives and scheme structures. Getting it right is a challenge. What consumers say they want may not always reflect what they really want from reward programs.

Overall, the majority of respondents said they favored schemes that offer high-value gifts as an occasional ’surprise’ reward for their continued loyalty. Another crowd-pleaser was programs that reward them for collecting loyalty points. So-called ‘experience incentives’ (free dinners and trips to the spa, for example) were a favorite among post-paid subscribers. Prepaid subscribers preferred perks in the form of physical prizes and high-value gifts. Overall, preferences vary depending on the market. Respondents in mature markets (U.K., Spain) preferred collecting loyalty points to save for a guaranteed reward. Instant-win prizes and incentives for top ups and paying their bill were popular with users in developing markets (Russia and Nigeria).

4) Right rewards make a big difference. Reward schemes, when done right, deliver the desired impact on subscriber behavior. In developed markets the result is reduced churn. In developing markets the correct loyalty program can encourage increased spend. In growth markets such as Nigeria, the majority of users (58 percent) have multiple SIMs, which means users can easily shift their spend to the operator with the best rewards. When designing effective programs in multi-SIM markets, the focus must be to reward the user’s actual usage on an ongoing basis, rather than reward them for being part of the network over a certain period of time.

5) Don’t put your brand at risk. Designing the right loyalty program is critical. Think it through — carefully. If done right, a reward scheme can generate a powerful behavioral change, resulting in reduced churn, increased spend – or both. Get it wrong, and you can do serious long-term damage to your brand.

How serious? A survey of respondents in Nigeria, where operators have been aggressively launching promotions, shows that a bad scheme can be worse than no scheme at all. It appears that the negative consumer feedback may be linked to a mismatch of expectations and a feeling among respondents that they have not been adequately rewarded for their loyalty. Whatever the reason, the lesson for operators is clear: keep it simple in developing markets. Ensure that users benefit in a way they can understand and appreciate — even if this means rewarding loyal users with a few free texts.

When operators do get it right, the benefits are significant. At Buongiorno we observe that clients typically see increase in gross revenues of between 4 and 9 percent over 12 months. Incentives and approaches employed by our clients vary, and include loyalty programs linked to experience incentives (Orange Wednesdays in the U.K.), programs encouraging users to collect and redeem loyalty points (MTS Bonuis in Russia), and schemes focused on driving spend (Top Up Surprises for O2, Optus, TIM Italy and others).

Overall, the survey shows that mobile operators can succeed with a variety of loyally incentives. Prizes, points and perks all work provided mobile operators deliver the right incentive to the right customers. It’s a tall order, and the same incentives will work equally well across all markets and segments.

About Adhish:

Adhish is Managing Director of Buongiorno mobile loyalty business unit, focusing on the development and execution of customer loyalty programs addressing each stage of the engagement, interaction and redemption cycle to reward profitable customers. Adhish has a long track record in the telecoms and media space as part of the management team at Flytxt, a mobile marketing company, and as a strategy consultant with Accenture in Europe and Asia. Adhish has an MBA from INSEAD and a B.Sc. from Carnegie Mellon University.

MobileGroove welcomes guest columns. Lend your voice to MobileGroove and reach a loyal and influential audience of 20,000+ mobile professionals and practitioners. Email us to find out more.

* * *

At first it was about the freedom to capture and create our own content, a shift that opened the door to mobile blogging, picture-sharing and a slew of life stream applications that encourage us to document and share our lives as they happen. We were connected and we had a voice.

Fast forward, and mobile social media doesn’t just let us talk about us. We are empowered to amplify experiences we have — good and bad. We broadcast what we love and hate about everyone (and everything). And we are passionate about both. This gives us reach and influence. And what we have to say matters a lot to a lot of people.

Interestingly, we are particularly vocal when we are in shopping mode, using our mobile phones as “megaphones” to tell friends and followers in our social networks all about our in-store experiences.

Telling is like it is

This is the key finding of new research released just a few days ago at the 140 Characters Conference in New York City.

Jeff Hasen — in his capacity as a mobile marketing authority who works with companies to win what he calls the “Moments of Trust” that impact sales and brand loyalty — commissioned Zoomerang to conduct a survey of 100 U.S. mobile users to find out if they use their devices to share (translated: broadcast) their positive and negative shopping experiences.

Predictably, bad news travels fast. Some 40 percent of respondents said they have used their mobile phone to communicate with family/friends/social networks about a negative retail experience. Fortunately, even more (46 percent) have used mobile to share their positive in-store experience.

What tools and technologies do these consumers use?

• 8 percent have used Twitter
• 18 percent have used Facebook
• 32 percent have sent a text message

Granted, the sample is not massive, but is it representative and provides us an important confirmation of the impact of mobile and social on our shopping behavior. Put simply, we share our experiences with our friends and networks.

The questions is: do they listen?

Just over one-third of respondents (34 percent) recall having seen a comment from a friend or member of their social network describing their shopping experience. Additionally, almost half (48 percent) said they would be influenced by a post describing a retail experience.

Pump up the volume

The findings confirm that we listen to people in our networks. Our mobile megaphones allow us to instantly amplify our knee-jerk reaction to our retail experience.

Thankfully, people don’t want to just gripe about their bad experiences. They also want to know that brands are listening. In fact, one-third (35 percent) of respondents said they would want to hear from a brand after a negative retail experience.

The reality: only 10 percent of respondents have actually heard from a brand following their post about a retail interaction (both good or bad).

Connect the dots, and there is an opportunity (even a requirement) for brands to listen in to what people are saying about their retail experiences and — more importantly — respond. No doubt this approach would go a long way toward solving issues before they balloon into full-scale social media meltdowns.

How does mobile-social transform commerce?

We catch up with Jeff for his high-level view.

MG: Your research shows consumers can — and do — broadcast their retail experiences and influence their peers. Interestingly, the breakdown shows most consumers use text messages to spread the word about their good and bad experiences. Only 8 percent reach to Twitter. What does this tell us about consumer behavior and what are the implications for marketers?

A: As suspected, be it feature phone or smartphone, consumers are increasingly using their devices as megaphones. It used to be that a brand could lose the battle for public opinion in two hours. It’s now closer to two seconds with Twitter and Facebook members twice as active as mobile as on a PC. This has dramatic impact on brands and retailers.

MG: The report tells us many consumers want to hear from brands and stores after a negative in-store experience. How should marketers approach this? What are some of the do’s and don’ts of customer engagement in this scenario?

A: Marketers need to celebrate those who perform at the Moments of Trust and help organizations identify and rid themselves of those who fail. Consumers are adapting and adopting – brands and retailers need to do the same thing. Take the example of Nordstrom, the preeminent customer service organization that is rolling out iPads and other technologies to better serve the consumer.

MG: You focus on the “Moments of Trust” — the consumer touch points with brands that influence trial, sales and loyalty. What is the key takeaway of this report and what action is necessary to turn a problem – like a negative in-store experience  – into an opportunity?

A: One of the most interesting findings is the fact that 35 percent of those surveyed said they expect to be contacted by a brand or retailer. If brands and retailers can’t control the quality of their Moments of Trust, it is imperative that they take action after a bad experience to keep the customer and make the best of the situation. Many customers are forgiving – so the chance for a brand to deliver a good experience does not end in the shopping aisle.

From department stores to computers & electronics retailers to luxury fashion brands, marketers are investing in mobile advertising to reach and influence people throughout the purchase funnel (awareness, engagement,  consideration, conversion and loyalty).

In fact, Millennial Media, a leading independent mobile advertising and data company, reports that ‘Retail’ was the top vertical on the Millennial mobile advertising network both globally and in the U.S. What’s more, spend by brands has skyrocketed, growing by a whopping 1300 percent for the period Q1 2010 to Q1 2011.

This development is the focus of Mobile Intel: Retail, a mobile intelligence report that draws from Millennial Media network data (data that was accumulated across 67 billion mobile impressions in 250 countries and territories) and consumer research conducted by comScore. The report is geared to brands, providing them insights to help identify key mobile retail opportunities and engage with the growing audience of mobile retail users, the segment of consumers using their mobile devices to research and purchase goods and services.

Mobile retail users

The vast majority of mobile retail users are tech-savvy digital natives between the ages of 18 and 35 for whom the mobile phone has become an indispensable part of their daily routine. However, these Millennials are not just more sophisticated; they also tend to be more affluent.

The data, which breaks down mobile retail users by income, shows that the percentage of mobile retail users is higher than the total audience in several income brackets. Interestingly, mobile retail users lead in the +$100,000 annual income bracket, providing retail advertisers — particularly those selling luxury goods — a significant audience that is likely to appreciate and respond to a mobile call to action.

All the better if this advertising is delivered with the smartphone user in mind. The report shows that smartphone penetration is on the rise, up 67 percent year-over-year. What’s more, the majority of consumers are interacting with mobile retail websites and most are using mobile browsers to access the content (and advertising) there, making it important for brands to include mobile web and in-app advertising in the mix.

Altogether, the number of consumers accessing retail content via mobile has increased 74 percent year-over-year to total over 13 million people (as of June 2010). Of the 13 million, “over 6.5 million accessed retail content on their mobile device up to three times per month, 4.2 million at least once a week, and 2.2 million consumers accessed some form of retail content on their mobile device almost every day.”

Mobile commerce opportunity

Mobile retail users are not just using mobile to help them identify and research what they want.

They are also using mobile to make purchases (through a mobile browser on application). Specifically, 21 percent of consumers surveyed by comScore said they made a purchase using their phones in the last 30 days, not including app store application purchases. What did they buy? The majority were retail or travel related with consumer electronics and clothing/accessories leading the list.

The report also lists and ranks the broad range of mobile destinations that figure prominently in the regular routine of hard-core mobile retail users, insights that give brands and advertisers a clearer idea of the content (and campaigns) that will reach these mobile shoppers when it matters most.

The bottom line: mobile retail users are everywhere. But they also tend to spend time on sites featuring weather, maps, news and entertainment. Retail brands are therefore advised to develop campaigns and strategies that reach beyond the usual list of content sites and channels. And let’s not forget the importance of timing. Advertising that takes advantage of the window of opportunity around holidays and events (such as Mother’s/Father’s Day) can pay dividends.

Brand advances

The report confirms that mobile retail users are a significant and addressable audience that retail brands should not ignore. But are they taking advantage of the opportunity?

The report provides ample evidence of brand commitment and increased spend. For one, the number of retail advertisers on mobile has doubled, reaching 6,445 in June 2010 up from 3,045 in June 2009.

This observation is further supported by data from Millennial’s ad network, which shows that vertical ‘Retail & Restaurants’ was the number one ad vertical in Q1 2011, both in the U.S. and internationally. But it’s not just about more brands spending on mobile. Network data (from Aprill 2011) confirms more verticals within retail (luxury, DIY, specialty interest) are among mobile’s big spenders.

Calls to action

The report also confirms a key message in recent eMarketer research documenting mobile marketing best practices in Western Europe. (Disclosure: I am proud to have collaborated with eMarketer on this report.)

The eMarketer report found that verticals (including retail) are not only harnessing mobile to achieve their objectives. These advertisers are also changing the nature of the game, moving from one-off promotion campaigns focused on brand awareness to on ongoing campaigns aimed at driving customer engagement.

A close examination of Mobile Intel: Retail reveals that retail brand and advertisers are indeed harnessing the action-oriented nature of mobile to drive foot traffic and spur consumer participation.

My take:

Brands and advertisers are not only waking up to the mobile retail opportunity. They are grabbing on to it with both hands, a development confirmed by an increase in ad spend as well as the number of retailers getting in on the action. At the other end of the spectrum, people are relying more on mobile for shopping ideas and assistance. comScore data  provides valuable insights into the make up of the mobile retailer user. Generally speaking, they tend to be more affluent and mobile savvy than the general audience of mobile users. Retailers (particularly those in the luxury goods sector) who don’t use mobile to connect with this discerning demographic risk leaving serious money on the table. Since mobile users are also relying heavily (even exclusively) on mobile to research and purchase goods on the move, mobile advertising should make an effort to engage with these consumers throughout the customer journey and purchase funnel (awareness, engagement,  consideration, conversion and loyalty). Finally, don’t think small. Consumers are buying big-ticket items including consumer electronics and clothing/accessories using their mobile phones. The right ad in the right context can drive foot traffic and sales.

Megatrends and shifts in the marketplace (primarily the massive move to mobile) are reshaping the customer landscape, providing people more choice and forcing the rest of industry to innovate in order to deliver people what they want, how they want it — and at a price that is completely aligned with their individual needs, uses and budgets. (Translated: tailored, tiered offers and pay-as-you-go plans.)

As a result, companies – particularly those in the communications sector — are confronted with a myriad of issues around understanding and managing subscriber complexity. The hyper-competitive landscape in which these companies operate requires them to rethink their strategies and respond with an arsenal of capabilities, including the ability to create new pricing models, launch effective promotions and loyalty programs, implement new services and improve every aspect of the user experience.

Bringing dexterity to subscriber complexity

But before the industry can identify the solutions it has to fully understand the problem. This is where the CMO Council — an organization dedicated to high-level knowledge exchange and personal relationship building among senior corporate marketing leaders and brand decision-makers across a wide-range of global industries — comes in.

To help companies manage this complexity (rather than be crushed by it) the CMO Council has launched a campaign to explore how communications companies can remain on top of their game in a time of such accelerated expansion.

Bringing Dexterity to Subscriber Complexity is a new thought-leadership initiative from the CMO Council reaching out to senior marketers and technology leaders from service providers around the world.

The aim is to analyze the challenge of subscriber complexity and choice in communications and media markets and outline the industry requirements for improved processes and to enable cost-efficient and rapid delivery of new devices, apps, programs, services and packages to address every market segment of the complex communications landscape.

Share your perspective

MobileGroove is proud to collaborate with the CMO Council to promote this thought-leadership initiative and support its research into understanding and managing this critical aspect of strategic marketing.

We’d like YOU to contribute to the dialog.

The CMO Council asks for just a few minutes of your time to fill out the Subscriber Sense-Ability Audit Questionnaire, a landmark industry survey of marketing and IT professionals at operator organizations to determine the forces and factors that are contributing to carrier aggravation and the best practices to address the issues head-on.

Here’s your chance to share with the CMO Council the issues and challenges your company is facing as the subscriber landscape becomes more widespread, diverse, and demanding. Please take 10 minutes to offer your perspectives.

As a thank you for taking our 10-minute survey, you will receive a complimentary copy of the detailed findings report (a $199 value) upon publication.

In addition to the survey results, the final report will include in-depth interviews with executives from Deutsche Telecom, AT&T, Vodacom, and Telefonica, to name a few.

If you would like to contribute your insights as well, please email Leora Tanjuatco, CMO Council marketing program coordinator, at ltanjuatco@globalfluency.com . Her team will be happy to schedule a brief telephone interview.

Partnership and promotion

By way of background, The CMO Council’s 6,000 members control over $200 billion in annual marketing expenditures and run complex, distributed marketing and sales operations worldwide.

MobileGroove is perfectly aligned with The CMO Council goals to produce and promote research reports and studies on critical aspects of strategic marketing, including marketing supply chain management, customer experience, customer insight and innovation, sales and marketing integration, data analytics and campaign measurement, as well as social media and digital channel engagement.

I am excited that The CMO Council has chosen to collaborate with MobileGroove, providing me exclusive access to insights from its research and the opportunity to connect with the organization’s leading brand decision-makers. Together we will work to identify and amplify good ideas (in the form of case studies, podcasts and guest contributions) through our destinations, newsletters and social media outlets. My personal thanks to Leora Tanjuatco and Matt Martini and I look forward to co-creating valuable content for our growing audiences.

EVENT ANNOUNCEMENT:

CSP Executive Caucus and Roundtable: “Bringing Dexterity to Subscriber Complexity”
Monday, May 23^rd, 2011, 3:00pm – 5:00pm
Shelbourne Hotel, Dublin, Ireland (near Management World Conference)
Complimentary Cocktail and Dinner Reception to Follow

There will be a gathering of CSP leaders in Dublin, on the eve of the Management World Conference. Confirmed attendees include Orange France, O2, Telstra and Vodafone. If you’re interested in learning more, please contact Matt Martini at mmartini@cmocouncil.org.

This is the key finding of Western Europe Mobile: Trends, Case Studies and Best Practices, a new report from eMarketer that summarizes the European landscape and shows how major brands (BMW, Lufthansa, M&S) are leading the way with mobile marketing campaigns aimed at attracting and retaining customers.

Fortunately, the interest of brands in mobile marketing and the willingness of consumers in Europe to interact with brands on their mobile phones is perfectly aligned. A major factor playing in favor of this new phase in mobile marketing: smartphone penetration.

eMarketer predicts that the number of mobile users in the EU-5 accessing the web from their phones will double from 2010 to 2015, reaching 94 million. App and browser usage rates are also rising as more users go online with their mobile devices. These trends are giving marketers new options to connect with customers.

Brands grasp mobile marketing opportunity

As a result, marketer strategies are increasingly sophisticated and comprehensive, comprising solutions that address every phase of the purchase cycle, including adherence to permission-based marketing best practices.

As eMarketer sees it: a greater number and variety of European brands are rising to the challenge — and mobile ad spending is set to rise accordingly across the region.

Another trend emerging worldwide is growth in the number of industry sectors harnessing mobile to deliver their brand message.

Once the territory of global consumer-focused brands, mobile marketing is now a main focus for industry verticals including retail, automotive and travel. The first report to identify and quantify this mobile mega-trend (aptly titled Vertical Explosion) the comes from mobile ad network Millennial Media. In its December 2010 SMART (Scorecard for Mobile Advertising Reach and Targeting ) report Millennial Media draws from insight and analysis delivered from campaigns running on its mobile ad network to conclude that more verticals are focusing more on mobile to achieve their business objectives.

According to the report, the financial services category grew an eye-opening 802 percent year-over-year (for the period Q3 2010 vs. Q3 2009). Meantime, Retail and Restaurants jumped up 745 percent, and Telecommunications was right behind with 719 percent growth. And the growth continues.

eMarketer report

This new eMarketer gets past the supporting data to list key case studies and learnings that point to a new phase in mobile marketing.

Key questions this report answers:

• What are the most significant characteristics of the European mobile market?
• How are the attitudes of European mobile consumers evolving?
• To what extent is mobile marketing changing as the endgame shifts from promotion to transaction?
• What will the impact be as more industries leverage mobile to engage with consumers?
• How will debates about consumer privacy and the rise of permission-based marketing affect mobile advertising strategies?

My Take:

More brands are getting involved. But — more importantly — they are also changing the nature of the game, moving from one-off promotion campaigns focused on brand awareness to ongoing campaigns aimed at driving customer engagement. In a world where mobile is at the center of all we do, brands can use mobile to do much more than simply boost awareness. They can wield mobile to entice consumers to have a more engaged relationship and a more valuable connection with the brand 24/7.

Disclosure: I am proud to have collaborated with eMarketer on this report and extend my personal thanks to the brands, agencies and ad networks that provided their support and insights:  Stephanie Renda (match2blue), Torsten Wingenter (Lufthansa), Rob Jonas (inMobi), James Lamberti (inMobi), Mark Waechter (BVDW chairman), Gavin Stirrat (Millennial Media), Paul Berney, (Mobile Marketing Association), Alex Meisl (Sponge Ltd), Paul Childs (Adfonic), Tim Dunn, (Mobile Interactive Group), Tom Nawara (Acquity Group), Thomas Labarthe (Alcatel-Lucent), David Sheridan (OpenMarket), Sienne Veit (Marks & Spencer) and Florian Resinger (BMW).

Unsurprisingly, the data shows that younger consumers (ages 18-34) were the most avid in-store researchers (60 percent), up 46 percent from November 2009 (41 percent). But the real opportunity just may be a more mature demographic.

While just 44 percent of consumers aged 35 to 54 were in-store browsers, this figure is nearly double what it was the previous year. Specifically, the percentage increased a whopping 91 percent compared to just 23 percent 13 months earlier. Those aged 55 and older had the lowest mobile browsing rate (36 percent) but the second-highest growth rate (89 percent).

The research also discovered an interesting gender gap. It found that more men browsed and researched products via mobile device while in-store (51 percent) compared to women (44 percent).

Key uses of in-store research included:

• 16 percent compare prices with another brand or store.
• 10 percent visit the stores website to get more information about a product or service.
• 7 percent look for coupons or discounts for that brand or store.
• 6 percent check to see if a product is in stock at a particular store.
• 6 percent seek ratings or reviews on a product or service.
• 5 percent collect rewards for visiting a store.
• 4 percent request feedback or share an update on something they were considering purchasing.

The bottom line: This research –combined with the popularity of price comparison mobile apps, such as RedLaser with over 8 million downloads– shows smartphone users like to shop smart.

Meantime, barcode use in the U.K. market grew a whopping 166.5 percent for the period, an increase that allows it to jump from the 7th to the 4th position in the top users of QR codes worldwide. The report attributed this to the number of major brands (such as Heineken, SKY Network, Pizza Express and Grazia Magazine) that  adopted the use of QR codes in their campaigns and promotion during Q1/2011. Other countries that experienced strong growth (again thanks to more brands getting on board with barcode promotions) include: The Netherlands (146.3 percent), Spain (94.4 percent) and Canada (94.0 percent).

The top 10 users of mobile barcodes during Q1/2011 were:

1.       United States (1)

2.       Italy (2)

3.       Germany (3)

4.       United Kingdom (7)

5.       Netherlands (8)

6.       Canada (6)

7.       France (5)

8.       Hong Kong (4)

9.       Spain (17)

10.   Switzerland (15)

The bottom line: Despite a few false starts outside of the Asia-Pac region it appears that major brands, retailers and – most importantly end-users –  are realizing the benefits of QR codes, which is why we can expect them to be a core element of campaigns moving forward.

The growth of mobile online shopping in the U.S. has been nothing short of phenomenal. This increase has been fueled by a significant shift in consumer behavior and a massive migration of users to smartphones. According to the latest figures from comScore, a digital measurement company, smartphone penetration has reached 23 percent, up from 13 percent in 2008.

This dovetails with new numbers from Nielsen. It reported that 28 percent of U.S. mobile subscribers had smartphones as of November 2010, a figure it forecasts will hit the all-important 50 percent threshold in the U.S. by end-2011.

All signs are pointing to 2011 becoming the year smartphone adoption reaches critical mass.

However it is the creative and even viral nature of mobile sites and apps that is driving a new wave of mobile commerce interest and activity. In December 2010 ABI Research reported that mobile commerce, excluding the U.S. travel industry, will more than double to total approximately $3.4 billion for 2010. Travel-related purchases such as airline tickets and hotels add another $1.5 billion.

ABI and other research firms have said they were caught off guard by the explosion of highly innovative use-cases deployed by retailers and third-party players, and many have had to adjust their forecasts upwards. In 2015, ABI Research predicts that mobile shopping will be responsible for $163 billion in sales worldwide, 12 percent of global ecommerce turnover. In addition to direct sales generated via mobile, brands will build on mobile shopping schemes to deliver a broad range of mobile marketing campaigns and CRM programs.

Mobile ready

So what are brands doing now to integrate mobile into the marketing mix?

It appears that some of the larger global brands have a first-mover advantage. They began, several years ago, to develop mobile strategies and invest in resources in this channel. A prime example is Amazon, an online retailer that became the first to achieve $1 billion annual sales generated by shoppers using their mobile devices to clinch the deal. More recently, Opera Software ASA’s State of the Mobile Web Report showed a notable increase in the number of visits to Amazon.com’s mobile Web site towards the end of the year, compared to earlier in 2010.

At the other end of the spectrum, many brands have yet to wake up to the pivotal role mobile plays in consumer shopping and buying decisions and develop a strategy to address it. But lack of awareness and absence of a comprehensive strategy are only part of the issue for brands. On a purely tactical level, they also have to step up efforts to optimize their online destinations for mobile.

Fortunately, Acquity Group’s Mobile Audit (which examines the Internet Retailer Top 500 list) shows a marked increase in the percentage of mobile compatible websites. The audit revealed that 12 percent of the Internet Retailer Top 500 websites could be accessed by mobile browsers in 2010, while only 4 percent of those sites were mobile compatible in 2009.

The audit also found that 7 percent of the Top 500 retailers have introduced a downloadable mobile app, compared with just 2 percent the previous year.

Mobile commerce capabilities

Clearly, more retailers are developing and delivering mobile compatible sites and apps. But how many companies are really ready to do business with consumers on their mobile phone?

To find out where retailers are in their mobile commerce approaches, Acquity Group conducted a follow-up study. We looked at the 249 brands already active in the mobile space (having launched mobile websites and/or apps) and focused on three primary industries: Retail, Ticket Vendors and Travel & Hospitality. The goal of this study was to gauge brands’ mobile commerce capabilities and readiness.

The results table (below) shows that these sectors were distributed across a fairly standard bell curve. Of the 249 organizations Acquity Group analyzed, only 19 were ranked “Excellent,” meaning they had both a commerce-enabled mobile website presence and a downloadable app that functioned on the majority of mobile platforms. Nine of the companies we audited had no mobile optimized presence.

Commerce report card

So who’s succeeding in mobile commerce? Our analysis showed that retailers “get” it better than most. However, some ticket sellers (Fandango and Moviefone, in particular) are also driving results.

Note: 249 organizations were evaluated (183 Retailers, 56 Travel & Hospitality Organizations and 10 Ticket Vendors). Those listed above are the top players in their relevant industry sector.

In summary, 85 percent of the 249 organizations we audited have a mobile site.

Of this total:

• 96 percent allow catalog browsing on at least one mobile platform
• 89 percent of Travel & Hospitality organizations allow reservations to be made on at least one platform
• 75 percent of Retailers and Ticket Vendors allow for mobile checkout on at least one mobile platform

Our audit also examined the range of mobile apps brands offer and the functionality they enable. Roughly half (48 percent of the 249 organizations) provide consumers at least one mobile application. Of that total, most (74 percent) allow catalog browsing on at least one platform and 59 percent allow for checkout on at least one platform.

Predictably, a breakdown of the apps and the platforms they support shows Apple iPhone stealing a lead on other vendors. A whopping 45 percent of brands have an iPhone app. BlackBerry comes in a distant second.

• 9 percent have a Blackberry app
• 8 percent have an Android app
• 2 percent have a WebOS app
• 0.8 percent have a Nokia Ovi app
• 0.4 percent have a Windows Mobile app

Best practices

The analysis shows Amazon and Fandango lead the pack when it comes to enabling (and benefitting from) mobile commerce. Their formula for success combines a holistic multi-channel strategy with strong tactical execution across platforms.

Amazon’s mobile strategy also delivers because it effectively extends its Internet offer and reach to a range of connected devices including mobile phones and — more importantly — the Kindle. Put another way, Amazon has migrated its vast ecommerce experience and expertise to mobile devices and platforms it knows are front of mind with its target demographic: iPhone, iPad and Android.

Likewise, Fandango has also had great success because it can seamlessly extend its tickets sales and offers to consumers on the move and people accustomed to making instant purchases using their mobile phones. What’s more, buying a ticket is a no-brainer. There is no color choice to make, and no worry whether a movie ticket is the correct size. Mobile is the perfect vehicle for this type of transaction.

It’s encouraging that Amazon and Fandango are leading the way in mobile commerce. But what can other companies do to follow their lead and extend their offer to mobile?

Of course, deciding the correct approach depends on the organization’s industry sector, business objectives and own efforts to develop and coordinate cross-channel strategy.

However, there are mobile basics that apply to all brands across all industries. With this in mind, Acquity Group has identified three best practices to guide brands in developing strategies for the mobile channel:

1. 1.) Usability. Understand the experience, task flow and design you want your brand to communicate to mobile users. This is part of knowing your audience’s needs – where they spend their time, when and in what context they use their mobile device and their mobile platform preferences – and developing functionality around those key areas.
2. 2.) Context. It is important to consider mobile as just one tool in a multi-channel program, but always remember that mobile cannot be just a miniature extension of your existing presence. Mobile user experiences are extremely context-sensitive, and you have to plan accordingly. Maybe putting your entire catalog into a mobile shopping experience isn’t the optimal approach. Instead, work to match your audience’s needs while on-the-go. Mobilize, don’t miniaturize.
3. 3.) Value. Meeting your audience’s usability and contextual needs will provide the basis for offering them actual value in the mobile channel. But providing value in the mobile channel requires much more. It needs to incorporate a multi-channel view and make doing business with your organization that much easier for the customer. Value is also a two-sided coin: your mobile tactics have to offer benefit to your organization through increased revenue, greater customer satisfaction, and/or the metrics most important to your business.

The takeaway: The mobile channel should be considered an integral and strategic part of a company’s marketing plan. Organizations are advised to make it a central part of the marketing and communications mix and abandon strategies and approaches that view mobile as a separate and siloed tool.

* * *

Tom Nawara is Vice President of Digital Strategy & Design at Acquity Group. He oversees the strategic direction and tactical execution of key client initiatives in a variety of digital areas, including content & collaboration, commerce, digital marketing, social media and mobile. As a mobile and emerging media strategist, Tom has worked with many leading brands to develop solutions that successfully integrate mobile applications, sites and marketing platforms into true cross-channel initiatives that leverage digital content, commerce and social media capabilities. Each year Tom also plays a key role in the release of the Acquity Group Mobile Audit, which assesses the level of mobile adoption by the world’s top eCommerce brands. His deep expertise in this space has landed him in multiple publications, including Internet Retailer, ComputerWorld, eWeek, MediaPost, Reuters and eMarketer, among others.

Tom further extends his industry knowledge by being active in the local mobile development community, with frequent participation in groups such as Mobile Monday (MoMo) Chicago. He is also a regular speaker on topics related to the digital channel, and you can connect with Tom directly when he speaks on mobile payments at Bricks + Mobile 2011 (March30, Chicago) .

A recent poll conducted by research firm Ovum (and commissioned by Amdocs) reveals the vast majority of service providers and operators can read the writing on the wall.

A whopping 73 percent of respondents said they plan to expand their prepaid offerings to include services that are traditionally offered only to postpaid customers.

In addition, nearly half of the service providers polled said they needed to make moderate to large changes to their business and operational support systems in order to answer the technical challenges involved in expanding prepaid services.

The research is based on qualitative interviews of senior executives from 19 service providers in Europe, North America and Asia-Pacific, collectively serving hundreds of millions of subscribers. Interviews were conducted between August and November 2010.

As Ovum sees it: “Greater availability of high-end devices such as smartphones, along with services like messaging, mobile broadband and applications, are increasing customer expectations from prepaid wireless services.” Ovum forecasts prepaid will grow from 75 percent of total connections worldwide in 2010 to 77 percent by 2015.

MetroPCS boosts usage with personalization

But it’s not just about a need for payment choice, convergent charging and innovative offers that effectively move pay-as-you-go prepaid customers to monthly plans. This shift also turns up the pressure on operators to think of new ways to maximize revenues from value-added services (VAS) and encourage prepaid users to explore (and purchase) content and apps on offer.

MetroPCS is using personalization to drive prepaid customers to use more services (thus creating the conditions that will allow the operator to increase stickiness and spend).

Specifically, MetroPCS is rolling out a new portal that leverages artificial intelligence to dynamically adapt the content displayed to users on their mobile devices to their individual tastes.

For more on how MetroPCS’ is using personalization to get more mileage out of its prepaid customer base, check out my post over at the Amdocs Interactive blog.

Read the rest of the post here.

Matt Anderson is Head of product marketing for Amdocs Interactive, a distinct business within Amdocs focused on Value Added Services, which is the world’s leading provider of digital commerce, Mobile Internet and personalization solutions. Matt has over 13 years experience bringing products to market in the telecommunications industry. Prior to joining Amdocs in 2008, he directed marketing for Nuance’s mobile business unit, focused on market development of speech activation applications in the mobile, navigation and automotive industries. Previously he launched the next generation of T9 at AOL Wireless and was responsible for managing mobile VAS offers at AT&T. Matt also founded a start-up in the telematics business and managed marketing and sales for one of the first wireless data networking companies. Matt has an MBA from the University of Washington. You can follow Matt on Twitter (@matt6156).

Disclaimer: Amdocs Interactive is an MSG client and supporter.

First, a look at what Forrester thinks (views I was privileged to hear first-hand from mobile consumer expert Julie Ask during a private mobile marketing summit near San Francisco, where I also had the opportunity to present my views).

Julie gave us the inside track on Forrester’s 2011 mobile trends. A point that stands out: the mobile/social/local combo will explode in usage but generate little revenue because price drops will put smartphones in the hands of more consumers. The assumption is that new smartphone users will likely be less engaged and active than the wave of early-adopters who have embraced Android and iPhone devices.

And the apps vs. mobile Internet debate will occupy the industry for a while to come — even though it’s totally off the mark to pose the question in the first place. Put another way, it isn’t a question of either/or. It’s both.

Apps and Web will coexist and marketers will adapt. In fact, the mobile marketing spend is forecast to grow significantly and surpass $1 billion in the U.S. as consumers make browsing, shopping and buying via mobile a more integral part of their daily lives.

Other trends and developments Forrester says that we can expect:

• mobile will continue to bridge the gap between the digital and physical worlds;

• the buzz around 4G will vastly outweigh the actual impact these new networks have;

• cool is ok, but companies will invest first in convenient services for customers and  acquisition will come second;

• and, finally, casual gaming will continue to lead the mobile charge for content companies.

HOW I SEE IT:  These are predictions we should consider. However, what was even more interesting to me was Julie’s forecast that our mobile devices will become the way we sense (and make sense of) the world around us. Mobile devices (and the sensors built into them) will be able to glean enough information from our surroundings (and our context) to actually influence them. For example, a mobile device might not only sense temperature; it might use this information to regulate the temperature of the room we’re in on our behalf. While all this is technically possible, I have to wonder how many mobile subscribers will actually want their mobile devices to monitor and record the details of their lives. In my view, it will likely go the way of check-ins via location-based marketing. Consumers will allow mobile to know this information provided they get something of value in return.

***

Is anyone really making money in the new App Economy? This question came up during the same private briefing.

According to Gartner, more than $15 billion in revenues will be generated in 2011 by people downloading more than 17 billion apps.

As quoted in MocoNews, Gartner reports that 17.1 billion downloads for 2011 works out to a growth rate of 117 percent compared to 8.2 billion downloads in 2010. Collectively, we will have downloaded an astounding 185 billion apps by 2014.

Gartner pointed out that Apple made $250 million in gross commission from apps in the second half of 2010, but Apple’s total revenue was almost twenty times that. So we know Apple isn’t bent on getting rich from apps. Still, app downloads (and the money they generate) are at an all-time high, with revenues for 2011 representing growth of more than 190 percent on 2010 revenues (which totaled $5.2 billion) and growth of over 1,000 percent between 2010 and 2014.

HOW I SEE IT: The questions raised during this private briefing focused sharply on the winners and losers in the app space. But it isn’t that cut and dried. In my opinion, a successful app should lead to product and company loyalty. I told attendees there that building a loyalty club off an app is an avenue to additional sales and new product trial. It’s a strategy I’m convinced is on the money (and this is backed up by some recent survey findings.) In any case, we as marketers have to do more to prove return on investment when it comes to apps.

***

Another week and another rumor about the impending arrival of a Facebook phone.

The Boy Genius, known for sneak peeks and scoops, tells us that a focus group was held recently to discuss features of a Facebook phone. What were the must-have functions? They include location-aware coupons, an always-on GPS service to provide automatic “check-ins” (and share your location with friends), a built-in camera and a news ticker-style message notification system.

The Boy Genius reported that while the device the focus grouped was asked to consider wasn’t specifically referred to as a “Facebook phone,” an hour was nonetheless spent talking about social media. And other questions got down to business inquiring just how many photos members of the focus group upload to Facebook a day.

HOW I SEE IT: In my last column, I dissected Facebook’s strategy to introduce an improved feature phone app in an attempt to grow from 200 million mobile users to 500 million. A Facebook phone – one designed from the ground up to fit with Facebook’s services and intentions — would certainly be another element in the company’s efforts to increase its reach big time. And it would definitely serve to increase Facebook margins on mobile. What should marketers do? Watch this space carefully. Soon it may not be enough to say that you have a Facebook strategy. You’ll need to figure out how to target Facebook users where they really are (and where it matters most): on their app, on a mobile website or on a phone of their choice.

* * *
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).

This week the company revealed its plans to launch a new mobile app to bring Facebook to the most popular and mainstream mobile phones around the world.  According to Facebook, the app works on more than 2,500 devices from Nokia, Sony Ericsson, LG and other manufacturers. It may be focused on low-end phones, but the experience is hardly low-end. In fact, the company has cleverly positioned the app as a “better Facebook experience for our most popular features, including an easier-to-navigate home screen, contact synchronization, and fast scrolling of photos and friend updates.”

To get a huge step closer to its 500 million user goal, Facebook has worked with mobile operators worldwide to make mobile users an offer they can hardly refuse: a chance to try the app for 90 days without paying for data charges. So far, 14 mobile operators have jumped at the opportunity, including Dialog (Sri Lanka), Life (Ukraine), Play (Poland), StarHub (Singapore), STC (Saudi Arabia), Three (Hong Kong), Tunisiana (Tunisia), Viva (Dominican Republic), and Vodafone (Romania). Other operators will be announced in the coming months.

HOW I SEE IT: Like Google, Facebook has a business model that is all about inclusiveness. Facebook apparently walks the talk with a mission statement to “help you connect and share with the people in your life”. And there’s nothing in the mission statement that says this applies only to people who own smartphones. Marketers are well-advised to follow the lead of these technology titans and develop/implement campaigns that drive participation by everyone — and not just the people who happen to own a smartphone.

***

By now we all know about Steve Jobs’ decision to take a sabbatical, a move that comes at the same time we learn that Apple has chalked up record revenue and net quarterly profit.

Buzz since news on Jobs broke this week is pretty much split between concerns about his health condition and worries that the company’s short and long-term prospects will wither now that it must go on without one of the leading innovators in technology.

Jobs has asked for privacy and he deserves it. And, even if you don’t agree, regulators point out that  Apple isn’t obligated to spill all because news of this nature isn’t deemed “material” to the company’s stock prospects.

But the company is public about its record revenue of $26.74 billion and record net quarterly profit of $6 billion, or $6.43 per diluted share. Some additional key numbers that speak volumes about Apple’s reach and appeal: international sales accounted for 62 percent of the quarter’s revenue, with much of the new business coming in China and elsewhere in Asia.

Apple sold 4.13 million Macs during the quarter, a 23 percent unit increase over the year-ago quarter. It also sold 16.24 million iPhones in the quarter, representing 86 percent unit growth over the year-ago quarter. Finally, Apple sold 19.45 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter, and also sold 7.33 million iPads during the quarter.

HOW I SEE IT: I speculated that, because of the high price of new devices, consumers would choose between a smartphone and tablet over the holiday season. How did it play out? Apple gave us no indication whether the buyers of the iPhone and iPad were unique. So, the question remains unanswered and we have to ask ourselves: with limited budgets, do we plan campaigns for smartphones or tablets — or both? I expect marketers will face some tough decisions over the next months because not everyone will have the resources to do both.

***

T-Mobile USA is coming out with a service that makes huge sense — and does good. DriveSmart Plus is a text message downloadable blocker that is positioned as a product for those can’t control the temptation to text while driving. The operator is making it available on the LG Optimus with more phones to follow.

In practice, T-Mobile USA tells us DriveSmart Plus automatically detects when a handset user is driving and sets the phone into a ‘Driving Mode’.  Once this service is activated, it disables most texting and calling features to the handset while the car is in motion, ultimately decreasing the possibility of unsafe, distracted driving.

In the event of an emergency – or if the user is a passenger in a car – DriveSmart Plus allows the user to override the ‘Driving Mode’ and access calling features.  Parents can also choose to be notified by text message or e-mail when the override occurs and can view phone usage during the override from the DriveSmart Web interface.

It’s a smart service indeed. But it comes with the cost of a $4.99 a month subscription.

HOW I SEE IT: A Virginia Tech Transportation Institute study has reported that texting while driving increases your chances of crashing by 23 times. Anything that has the potential to reduce that ungodly number should be in the consideration set. But is it too much to ask carriers to provide such a worthwhile (and potentially life-saving) service like this free of charge rather than ask consumers to figure out where they can cut back to pay the monthly subscription fee?

* * *
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).

We also discuss Tomi’s recent response to Robert Scoble (via his blog Communities Dominate Brands) and why Tomi can be so sure Nokia will maintain it’s global lead (even though Tomi openly admits Nokia is “invisible” in the North American market). The answer lies in the numbers, and Tomi dissects the figures from analyst houses IDC and Strategy Analytics to determine Apple, RIM Blackberry and Nokia market share in the regions (North America, Europe, ROW- Rest Of World).

Nokia’s image issues

Put simply, Nokia’s sharp focus on ROW – a region that includes strong growth BRIC countries – is the winning strategy that will give it the edge on its rivals for several years to come. While Nokia has significant market share, Tomi concedes that Nokia has lost mindshare among analysts and influencers – a gap that has resulted in the perception (particularly in the developer community) that Apple’s operating system “rules.”

Tomi’s word to developers reading this post or listening to the podcast: do the math. Apple iPhone apps are cool – but Symbian has the reach in Europe and ROW.

Top 3 trends

Finally, we ask Tomi to give us his pick of trends for 2011.

They are:

1)    3D displays on mobile phones that remove the need for special goggles or expensive 3D TVs (these displays have already introduced in Japan and India, for example, and we’ll see them advance in the next year)

2)    A new focus on personal privacy sparked by concerns that apps are spying on us (Tomi nailed this one. By coincidence, this coverage hit the Wall Street Journal the same day we recorded this podcast for broadcast today.) Tomi also urges people interested in learning more on the topic to check out Tony Fish’s definitive work on the topic: My Digital Footprint

3)    Mobile education will move from novelty and necessity (supported by real proof such as this case study from Africa showing that integrating math homework with students’ mobile phones boosted math scores by 14 percent). Kudos to Nokia for supporting this program and showing the good mobile can do!

Tomi’s Holiday gift to us all

In the spirit of giving Tomi tells us a bit more about his 10^th book: The Insider’s Guide To Mobile. He also shares a few personal observations with us – and thanks us all – his readers and listeners – for allowing him to be the industry voice he is.

Download the book free of charge here.

The book is an essential read that Jeff Hasen has also critiqued in his regular column.We both agree that this is the book you should download and read over the holiday break. So we encourage you to check it out.

In closing — Tomi and I (and the whole MSG team) wish you all a Merry Christmas –

Happy Holidays –

And – in time for the Chinese New Year –

Prosperity in 2011!

LISTEN TO THE PODCAST HERE [17:38]

With so much hyperbole, it’s important to know who the real industry experts are.

Tomi Ahonen walks the talk, and doesn’t just pretend to know the industry from the inside out. Instead, Tomi, a former Nokia exec, is recognized as one of the foremost global authorities on mobile – period. More importantly, he shares his knowledge. He writes best-selling books, blogs and tweets (with amazing energy and focus) from his home base of Hong Kong. He also speaks at a wide variety of events and conferences across 50 countries and all six inhabited continents (which is why he often blogs and tweets from airplanes to keep us in the loop). Just this summer Tomi’s blog passed the one-millionth visitor, showing that Tomi is a main attraction in mobile.

This week Tomi introduced his 10^th book, which he is making available to us all as a free download here.

I downloaded this free edition of the eBook aptly titled The Insider’s Guide to Mobile. It’s about 9 megabytes in size and runs about 500 pages with the excerpts and ads.

HOW I SEE IT:  There is no better teacher than Tomi, who consistently provides astute commentary on the mobile industry. He could – and likely does – command hefty sums for his time and work. However, his expertise is the real thing. Naturally, he could also charge for this book, but he understands that the value of knowledge comes from its reach, not its price tag. In this giving season Tomi has chosen to offer his new book for free. Please consider it a gift and set aside time to read it.

Peggy adds: That goes double for me Jeff! Tomi and I share a passion for educating the mobile marketplace, which is why I feature him in a regular exclusive podcast here at MSearchGroove. After a break Tomi will be back next week to give us his pick of 2010 mobile milestones and his forecast for 2011.

* * *

2010 will be remembered as the year when capped data plans moved from Europe, where they have become the norm, to the U.S., where they have confused consumers and potentially stunted mobile data usage. It’s a good time for operators to examine this strategy and its impact. This week I read on GigaOm that three European carriers are considering doing just that. Specifically, they are discussing the introduction of pricing plans based on time of day and what the user is doing (that is, the type of application used).

According to GigaOm, these plans could help operators control the amount of data on their networks. The result: carriers could control costs and boost profits by delivering services like Facebook and Twitter to customers.

HOW I SEE IT: Close, but no cigar. Broad mobile adoption (which is the lifeblood of the mobile industry) will come (and pay off for everyone in the business ecosystem) when operators offer people simple tariffs and clear plans. You’ll recall that text messaging became mainstream in the U.S. when operators introduced unlimited plans. Judging from the discussion it appears carriers are moving to more complex tariffs. Are we headed in the right direction? Will consumers soon have to consult a price sheet to determine what applications to use and how much it will cost? Rather than simple, this approach is simply wrong and short-sighted.

* * *

When I worked as a journalist for United Press International this time of the year could be the most challenging. I was tasked with writing so-called “year-enders.” These year-end roundup stories served two purposes: to summarize the year and analyze what mattered most (and why). But they were a little tough to write since the long lead time required by many publications meant that I often had to write these pieces in October. I effectively left out November and December altogether. But that was ok, since they were generally quiet anyway.

Imagine if we would have to follow this blueprint to summarize the year in mobile.

We would’ve missed Android’s surge, Microsoft’s surprisingly strong Windows Phone 7 debut and the price wars among retailers and handset manufacturers in the U.S. that has resulted in smartphones selling for one cent – or less.

And we would have gleaned over the exciting advance of tablets, thinking that Apple stole the show with iPad. This clearly isn’t the case now that we have seen the response to Samsung’s Galaxy Tablet and RIM’s Playbook.

To describe an industry that has gone smart, the early deadline for a year-end roundup would’ve made us look dumb.

HOW I SEE IT: I can’t remember a year when so many products and services were introduced during the otherwise frenetic holiday shopping season. This year’s events speak to the pace and unique evolution of the mobile industry. And it won’t slow down in the New Year either. We start it with a bang in Las Vegas when the International CES (Consumer Electronics Show) kicks of on January 6^th. And we all gather in Barcelona a month later for the Mobile World Congress on February 14^th. It’s a hectic schedule to keep, but it’s also why adaptability is one key attribute you need if you want in or want to stay in the mobile industry.

* * *
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).

Where is the money

This is the view of Martin Geddes, a telecoms industry thought leader who has held positions at companies including U.S. mobile operator Sprint and incumbent carrier BT. His most recent white paper, Connect, Interact, Transact: A paradigm shift in the business model of communication service providers, identifies ten gaps in our communications processes where a lack of capability, maturity, efficiency and/or security creates huge opportunities for clever operators willing to re-invent their business.

VisionMobile features Martin Geddes

I caught up with Martin as part of a new thought leadership interview series making its debut today over at VisionMobile. In it we explore the strategies mobile operators must embrace if they want to secure their spot in the value chain.

As Martin puts it: “The opportunity and the money are at the interface between people and machines – where the hand-offs are made, for example.” Put another way, it’s all about providing enterprises the means to communicate with people on their terms. And it’s not rocket science either. A service that recognizes when people are roaming and shares this information with the enterprise (thus saving the company from hassling people on a trip with a text alert to confirm an online order, for example) would be a huge step in the right direction.

Martin and I also explore some key questions for 2015, including where Apple will make its money post-2015; where the next Google-size player will come from; and why owning the interface is vastly more important than owning the customer.

>>>Read the rest of the interview here.

Stand up & be counted

Kudos to Andreas Constantinou and Matos Kapetanakis for launching this new series and giving thought leaders worldwide a new platform for their ideas.

If you would like to be considered for Q&A, then please reach out to me directly (peggy@msearchgroove.com).

In the meantime, I encourage you to frequent VisionMobile and check out all the excellent posts there.

The next thought leader interview in the series showcases Deutsche Telekom’s Fee Beyer.

Disclaimer: Peggy Anne Salz is proud to be a VisionMobile Associate.

This week U.S. regulators floated a Do Not Track proposal for Web users aimed at enabling them to stop advertisers from tracking them online. As USA Today reported, a program like this would allow consumers to effectively ‘opt-out’ and ask not to be tracked by advertisers – a request they would have to respect. Predictably, the program has some powerful forces fighting it. As USA Today observes: there is a catch. “The burgeoning industry of advertising networks and online tracking services that have devised dozens of sophisticated ways to identify and profile specific consumers must be compelled to obey consumers’ wishes.”

Coincidentally, we learned in the same week that the vast majority of consumers surveyed by Hipcricket see value in interacting with brands provided it’s on their terms.

According to the 2010 Hipcricket Mobile Marketing Survey – a survey of 526 U.S. consumers –57 percent of respondents would be interested in opting in to a brand’s loyalty club via a mobile social networking application such as Facebook. It also found that 90 percent of those who had participated in a mobile loyalty club said they had gained value from the participation, a result that represents a significant untapped opportunity for brands.

The survey also identified growing interest in mobile coupons, with 38 percent stating that they were at least somewhat interested in receiving mobile coupons (up from 18 percent in 2009). In addition, 46 percent of respondents said they were at least somewhat likely to redeem mobile coupons (up from 43 percent in 2009).

HOW I SEE IT: Marketing is more common sense than brain surgery. The idea of giving consumers what they want – and nothing more – is simple. Permission-based programs are the future (in my view, they are the present as well). The survey clearly shows that people will interact with brands and join loyalty programs if we ask them first. Tracking people online (particularly without transparency into the process) flies in the face of this practice and does anything but encourage interaction between people and brands. So I ask myself: Why is it so difficult for some marketers to understand the requirement for permission-based marketing – let alone implement permission-based programs?

* * *

In a webinar organized by Mobile Marketer titled Mobile in 2011: How High Is High we heard the valuable perspective of an agency lead who has learned just how vital mobile is to his firm’s success.

Timothy A. Blett — senior partner and president of Doner, an advertising and marketing agency headquartered in Newport Beach, CA – tells us to keep focus and think mobile. As he put it: “Develop clear objectives and strategies, dig up key insights about the target, be consistent with brand voice, define the role of mobile in the overall media mix, optimize each campaign and, finally, perform plan-do-check-act.” Blett also outlined “at least four challenges marketers can expect with mobile.” These are: “creating balance between acquisition and retention, integrating mobile early on in planning, convincing key stakeholders and senior management to remix traditional media plans, and measuring and maximizing ROI.”

Blett’s agency has had significant success with mobile running campaigns for major brands including carmaker Mazda. His views on mobile are based on real experience and solid knowledge of the medium.

HOW I SEE IT: As readers who follow this column know, I am unwilling to name this year (or any other for that matter) The Year of Mobile. However, based on what I’ve seen and heard (and that includes public presentations like the one from Blett, as well as client meetings and sales discussions behind closed doors), I am confident that we end 2010 knowing that mobile has achieved a central place in the marketing mix. The next year will be marked by bold approaches and new creativity. And it’s only just the beginning.

* * *

While RIM CEO Mike Lazaridis may have appeared to have lost the plot when he spoke at the recent Dive Into Mobile conference, we can overlook his babbling  when we get our first look at the BlackBerry PlayBook tablet (via this preview video)..

According to RIM, the tablet will be released in the first quarter of 2011. And the first reports are extremely positive. As the influential tech site The Boy Genius remarked: “The entire experience we saw was fluid, quick, and downright impressive. Apps opened and closed instantly, browsing through long lists like photos or music data was fast and effortless.”

HOW I SEE IT: RIM is a favorite target for many critics (and I have to admit I have been disappointed with the BlackBerry Bold since the day I bought it). Nonetheless, the smartphone maker is in the running – even if the press is correct in saying that RIM is running fourth in a three-horse race. Sarcasm and criticism aside, you have to admit that BlackBerry enjoys huge popularity, particularly among youth in emerging markets. This can be linked back to its crossover to the consumer crowd and the appeal of BBM (BlackBerry Messenger), an instant messaging app just for BlackBerry smartphone owners. There’s a lot of excitement around the Playbook, but the question remains: will it be successful? Perhaps. But you can bet that no matter what measure of success this new tablet enjoys, RIM will have to drag its critics all the way to the finish line.

* * *
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).

The media property that has won more Emmy Awards than any other turned 41 last week. But there’s nothing outmoded about its approach to mobile. To the contrary, the non-profit educational organization that helped many of us learn the basics continues to play a meaningful role in the lives of children – and their parents – worldwide.  Moreover, Sesame Street is also teaching the industry an important lesson: the future of our children (and our own future as well) involves mobile.

Sesame Street used the Mobile Marketing Forum, which took place earlier this week in Los Angeles, to share its vision for mobile. The discussion sparked debate, stirred discussion and stood out as one of the presentations that gave us the clearest glimpse of just how mobile will affect education everywhere. .

Anita Stewart, Sesame Workshop Vice President, Corporate Partnerships, told us that mobile applications have proven to be a valuable learning aid. Sesame Street lessons are delivered via mobile in 140 countries. But it’s not just about reaching kids; Sesame Street also uses mobile to engage with young moms who may not watch TV, but want to participate in the experience with their children.

Interestingly, this experience can go beyond education. The Sesame franchise views mobile as the quickest and most effective way to educate youngsters on critical issues such as childhood obesity, healthy habits and financial literacy.

HOW I SEE IT: Mobile marketing has a successful and sustainable future provided it can gain and maintain trust with mobile subscribers. Sesame Street “gets” this – which is why studies consistently show that the Sesame properties are the most trusted among parents. In this make-or-break time for mobile, there is no better ambassador than Sesame Street to show that mobile does good. Mobile can reach youngsters (and their parents) with important lessons and skills. Mobile therefore deserves a central place in households across the globe.

***

Loyalty can be tough to build, but it’s well worth the effort. Alcatel-Lucent, a global leader in delivering permission-based mobile marketing solutions and building the permission-based databases that power them, told attendees during a pre-event workshop that there are no shortcuts if you want to establish brand loyalty.

“You need to be transparent in giving consumers a way to opt out,” Thomas Labarthe, Vice President, Mobile Advertising, Alcatel-Lucent, said. In many cases, people simply want to opt-out for a set period and need us to give them that flexibility in how they interact with us. As Thomas pointed out: “Sometimes mobile subscribers want to opt out when they are on holiday so they don’t incur roaming charges while receiving messages.”

Thomas also advised marketers to think through a series of campaigns with consumers in order to bring value and deepen the relationship. He suggested brands build a “storyboard” or series of engagement campaigns with a consumer. They should also use multiple channels — not stop at mobile — and take the time to build a meaningful database before turning their attention to monetization.

HOW I SEE IT: Building lasting loyalty also means offering people the freedom to opt-in (and out) as they please. During the Forum we got a sneak preview of new research conducted and compiled by the Mobile Marketing Association (MMA). It shows that more than 30 percent of mobile subscribers in the U.S. are interested in joining a mobile loyalty club. In my opinion, that number is low – but it is also generally consistent with new proprietary research that Hipcricket will release before the end of the year. Against this backdrop, every point Thomas made in his presentation hit the mark. Give people the flexibility to leave (opt-out) and they will likely stay. They want to know that they have the option. I can say from my own vantage point (based on campaigns my company has run) that brands that respect the wishes of their loyalty club members are actually building stronger relationships and seeing opt-out rates well below 5 percent.

* * *

So- called Celebrity CMO Jeffrey Hayzlett was back for an encore. He left a huge impression on the crowd at the Mobile Marketing Forum event last June in New York, and he again engaged the crowd in Los Angeles with terrific stories and important lessons.

What stood out? His passion for mobile and his no-holds-barred advice that goes to the heart of the matter: Take a risk and go big.

As Jeffrey put it: “No one will die if you make a mistake.” When it comes to mobile, you need to think campaigns through. It’s not about creating a single mobile execution and expecting it to succeed on its own.

And Jeffrey should know. When he was at Kodak he made a big mistake that spurred him (and Kodak) on to win big in the end. Basically, Jeffrey had a great idea for a mobile campaign linked to a call-to-action in movie theaters. But this single mobile execution completely ignored the fact that moviegoers turn their mobile phones off when they watch a film.

As a result, only two people responded to his call to action. But Kodak made the campaign work by changing the venue for its communications and delivering the call-to-action when people weren’t in the movie theater.

HOW I SEE IT: Jeffrey is a crowd-pleaser because he challenges audiences to think outside of the box. For him the brand experience is an “emotional journey” for the consumer. It’s a smart observation and no doubt comes from his learnings at Kodak, where he marketed memories, not just film and cameras. Brands accompany people on their journeys and they should be brave about how they make mobile part of this experience. As Jeffrey put it during a similar speech in New York: Mobile marketers should not follow the mistakes of the Internet and e-mail marketers. “Don’t ‘F’ it up,” he said. Classic Jeffrey – and if you like plain-talk, then you should also check out his book on the topic, The Mirror Test.

And finally…

We’ve come a long way in 2010. It wasn’t dubbed the year of mobile marketing advertising – and I’m relieved that the topic never even came up in Los Angeles.

Instead, the MMA Forum event recognized excellence and achievements in mobile advertising worldwide. Real results that have had real impact. The MMA also announced the winners of the Sixth Annual Global Mobile Marketing Awards. The companies that received this accolade included brands and agencies, as well as Alcatel-Lucent (which was recognized for its consumer insights and research into people’s attitudes toward permission-based mobile advertising) and Louis Gump, who now leads mobile for CNN and has done a tremendous job advancing mobile and educating the industry.

HOW I SEE IT: I was privileged to sit on the judging panel for the third consecutive year. The sophistication of the campaigns I reviewed, as well as the ROI they delivered, was unparalleled. And the Los Angeles event further reinforced the resolve of brands and agencies to go one better in the next year. It’s an exciting time in mobile and the MMA event was a terrific springboard for a great 2011.

* * *
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).

With the holiday shopping season upon us, it’s not surprising to read that more retailers and brands are pursuing (or are planning) strategies that integrate mobile into the store experience. An Aberdeen survey of 129 retailers, for example, found that 38 percent of respondents are at some stage of integrating mobile into the in-store and overall retail experience.

So marketers are gearing up to grasp the holiday shopping opportunity. What about the consumer end of the equation?

A new Mobile Marketing Association (MMA) survey of mobile users in the U.S., finds that nearly three in five (59 percent) consumers expect to use their mobile phone this year to do holiday shopping or at least organize celebrations. Some 15 percent expect to use their mobile phone to an even greater extent to organize their shopping and planning.

A breakdown of results shows that consumers are using their mobile phones for a variety of shopping-related tasks.

Roughly one-third will use their mobile phones to search for the location or for directions to where a product is sold, 32 percent will use their phones to compare prices on-the-fly and stay within budget and 30 percent will use mobile to research gift ideas. Additionally, 13 percent said they would use their phones to purchase gifts, and 12 percent expected they would use their phones to interact/respond to advertising via TV, billboard or newspapers.

HOW I SEE IT: It’s shocking to see that only 32 percent of those who will use their mobile phones intend to use them to check prices while they are on the move. Personally, I NEVER buy a product of any significant value without conducting comparison shopping (either on my computer or via my mobile phone) first. Last holiday season, for example, I bought a car at exactly the price I wanted to pay because I researched the dealer costs by reading up on Consumer Reports on my iPhone. This survey tells me that marketers have to do more to drive home the point that mobile is central to shopping wisely and well. Using mobile to compare prices should be second nature, particularly in the current economy. Marketers are also well advised to make a case for mobile commerce, informing people that they can visit a retailer’s mobile website at the point of purchase and/or pay for items using their phone. (Indeed, consumers have a wide range of payment methods – ranging from credit card and PayPal to mobile operator billing — at their disposal.) Granted time is short, but marketers that can deliver a clear message that underlines the value of their mobile destinations (all the better if the websites really support consumers with more than just a landing page).

…

Agility is a “must have” trait for players in the mobile ecosystem, according to mobile industry analyst Chetan Sharma (who is also a contributor to this website).

Chetan believes that the fast pace of device introduction has allowed nimble players (Samsung and HTC) to lead the pack of handset makers, while other more established players (LG and Sony Ericsson) have lost ground.

Interestingly, Chetan says that Microsoft has what it takes to shake up the smartphone market in 2011. As he puts it: “By taking a different UI route, it [Microsoft] actually has a shot to be a viable third option to iPhone and Android, pushing RIM from the top 3.”

HOW IS SEE IT: Manufacturers must balance being “fast to market” with the need to deliver quality products at the right price. Samsung has done well with its smartphones, but its Galaxy tablet was thrashed this week by Engadget for focusing too little on the chief stakeholder: people.  As the blog pointed out: “The browser is miserable … When better browsing is 1/2 reason to go for larger screen, that’s insanity.” That should tell marketers to look before they leap onto the next technology. With the advance of all matter of connected devices, marketers’ heads are figuratively on a swivel watching the rapid pace of product introductions. But rather than be first, it’s imperative that marketers evaluate the product experience before diving in with dollars and brand promises.

…

In a previous post I wrote about the monetization of applications. In it, I made the point that some developers make a great living at it while many fail to sell enough to make the endeavor worthwhile.

So what are the monetization models and which ones really pay off? A new report from Distimo offers some answers.

It says that about one-third of the top-grossing iPhone apps are based on a freemium model that allows consumers to make purchases (buy new levels and features in a mobile game, for example) from within the application.

Remco van den Elzen, CEO co-founder of analytics firm Distimo, told GigaOM that he believes in-app purchases now represent about 30 percent of all iPhone App Store revenue. “We’re seeing more developers implement more in app-purchases especially with games,” he said. “Freemium apps are also picking up significantly. A lot of developers realize it’s a successful model.”

HOW I SEE IT: The freemium model is win-win for the developer and the consumer. Consumers are able to try out an app and then choose what else they want to buy on their terms. Developers finally have a way to connect directly with the consumer, an in-app interaction that means both a boost in sales and an increase in customer engagement. By going free at the start, the app developer overcomes one of the toughest challenges in all app stores everywhere: how to get discovered. This is because the freemium model represents low-risk to the consumer (they buy what they want and directly from the source). Put another way, the model effectively exposes the app to a larger audience of mobile users and lets them trial it before they fork over the cash.

* * *
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).

A survey of 600 developers, publishers and advertisers — conducted by mobile ad company Millennial Media in collaboration with Digiday, a digital media company, and Stifel Nicolaus, a financial services firm – suggests that Android will make significant gains in 2011.

Indeed, Android-based smartphones are becoming a favorite platform for mobile app developers. Specifically, 30 percent of respondents polled in Millennial Media’s annual State of the Apps Industry survey said they had developed apps in 2010 for the iPhone. Android phones came in second with 23 percent, and iPad followed with 21 percent.

Fast forward to 2011 and the mix shows Android pulling ahead. When asked which new app platforms they plan to support in the coming year, Android moves full-steam ahead with 29 percent. Interestingly, iPad and Microsoft’s Windows Phone 7 tie for second, at 20 percent each, followed by RIM BlackBerry (12 percent) and iPhone (8 percent).

Since this survey measures what new platforms are top of mind for developers (and this is U.S., not global) the low interest in iPhone might be due to the fact that the majority of developers have already jumped on the iPhone bandwagon long ago.

Multi-platform = more money

Will the exodus to new (and more platforms) mean more app revenues?

It’s a tough one to call, but respondents are bullish. They expect significant growth in their app revenue in 2011. Specifically, 31 percent of the respondents predict increases of 100 percent or more in 2011. And another 17 percent of respondent forecast growth of more than 50 percent.

The survey also asked respondents to name the top five criteria that play in favor of a platform (and their decision to develop for it) in the first place.

Unsurprisingly, reach is paramount. Other considerations are ease of use and higher sales potential.

VisionMobile analysis

This dovetails well with the findings of a much more ambitious global developer survey from VisionMobile, a market analysis and strategy firm delivering market know-how to the mobile industry.

The report, Mobile developer Economics 2010 and Beyond, based on a survey of 400+ developers and sponsored by Telefonica Developer Communities, is a must-read resource providing a wide range of insights into what developers demand and how the industry must respond. (You can find my earlier analysis of this milestone work here.)

A key trend that VisionMobile picked up on first: a mindshare migration away from incumbent platforms (Symbian, Java ME) to newer platforms (Android and iPhone). In fact, the survey suggest that nearly 60 percent of all mobile developers recently developed on Android, with iOS (Apple iPhone) coming in a second. Both outrank Symbian and Java ME, which held the pole position in 2008.

Why the overall shift from platform incumbents (such as Symbian) to platform newcomers (Apple and Android)? VisionMobile points out that developers are trying to make money with their apps, so market penetration (addressable market) and monetization models (paid apps) are deciding factors.

Symbian may be the incumbent (and have reach), but there are serious shortcomings.

Take platform complexity. VisionMobile’s benchmarks show that a Symbian developer needs to write almost three times more code than an Android developer, and twice as much code as an iPhone developer. Combine that hassle with the significant differences in time-to-shelf for apps (24 days for Apple, 33 for Android and over 54 days for Symbian) and it’s easy to see why mobile app developers are voting with their feet.

And let’s not forget the monetization potential presented by the Apple and Android app Stores. Both currently completely eclipse Ovi, making the choice to develop for Apple or Android an easy one.

Developer journey infographic available

The VisionMobile report opened eyes and sparked debate.

However, it’s the release of this simple and elegant infographic (detailing the entire developer journey) that expertly illustrates the choices and challenges facing everyone who wants to make a living from developing (and marketing) apps.

Kudos to Andreas Constantinou, VisionMobile Research Director, and his team for an excellent infographic and a top-notch work that tracks the entire mobile developer journey, from app design and platform selection to market delivery and monetization.

(Note: VisionMobile encourages us all to share this and/or embed this infographic. You can find the embed codes in a variety of sizes here.)

Meantime, work on Developer Economics 2011 is just a few months away.

VisionMobile urges developers who want to participate in the new app economy research and have their say on app development to sign up here.

What really counts

While we place our bets on which operating systems will ultimately lead the pack, it’s easy to forget that the so-called dumb phones (feature phones) have a comfortable lead in the market, a gap that VisionMobile reckons won’t likely close for another 3-4 years – at least (!).

Indeed, the 6^th edition of the 100 Million Club – Vision Mobile’s semi-annual watchlist that tracks software products that have been embedded cumulatively in more than 100 million devices – confirms that feature phones (not smartphones) are driving the mobile industry.

At best, smartphones account for 20 percent of total handset sales. (Strategy Analytics recently reported that smartphones accounted for 19.3 percent of total 2010Q2 handset sales.) That’s a small percentage of the 620+ million phones that were shipped globally in Q1 and Q2 of this year.

Do the math, as VisionMobile does, and the mobile platform providers that have real volume (an installed based of 100 million or more handsets) are Nokia with Series 40, Qualcomm with BREW, and Symbian Foundation with Symbian.

The Million(aires) Club

A newcomer to the Club is RIM with BlackBerry. The new edition watchlist also includes Google (23 million), Apple (60 million) and Windows Phone 7 (70 million) for comparative purposes, but it’s doesn’t take a rocket scientist to figure out these platforms are lagging, not leading.

Android, for example, has grown from 100,000 activations per day in May 2010 to 200,000 in August 2010. But activations are not sales. VisionMobile provides us an overview of sales trends as part of the new edition 100 Million Club, which features cumulative shipments up to the end of Q2 2010.

Download the free watchlists here.

The 100 Million Club features two essential watchlists: the Embedded Software watchlist that identifies the 24 products that have been pre-installed in more than 100 million handsets (such as the T9/XT9 text input engines from Nuance and the vRapid Mobile software update engine from Red Bend) and the Mobile Platform Shipments watchlist that tracks the most pervasive software platforms and operating systems.

My take:

iPhone is becoming a case of been-there-done-that as developers shift their attention to the new kids in town (Android and Windows). The multi-platform has arrived. It may be wise to pursue, but it will be interesting to see how developers tackle the monetization challenges that come with offering more apps across more platforms. (Indeed, the Millennial Media survey points out that only 6.7 percent of developers employ an external sales force to monetize their apps. A whopping 83 percent use a third party (like an ad network) to monetize.)

Granted, the advance of Android and iPhone operating systems (driven primarily by mobile operators pushing their OEMs to ramp up production of smartphones and fuel increased data use by subscribers) is having a significant impact on the platform landscape. But it’s far from transformational. The media excitement may be focused on smartphones (and apps) but the next billion (that is, people in emerging and exciting markets across Asia, India and Africa) will be reachable only via feature phones for a considerable time to come.

Disclaimer: Peggy Anne Salz is proud to be a VisionMobile Associate.

The prediction that the Democrats were going to lose seats in the Senate and House of Representatives came true. But, judging from the absence of mobile in campaign efforts (at least in my home state of Washington), political parties and interest groups lost much more: the opportunity to reach us on our mobile phones.

If you need convincing about the pivotal role of mobile in political campaigns and outreach, remember that President Barack Obama owes a lot (possibly even his election) to his effective engagement with voters during his 2008 run for the White House. He used two simple mobile platforms: the 62262 (spells OBAMA) common short code and the http://obamamobile.mobi or http://m.barackobama.com websites. Obama’s campaign bested John McCain when it came to getting the most out of new media, including mobile, and his use of mobile was considered an important part of his “Change” message.

Fast forward to 2010 and mobile is the missed opportunity. Candidates spent record dollars on Senate and House races, but relatively little went toward mobile executions. In fact, stories about mobile news coverage of the elections (not how mobile was used in the elections to connect with constituents) dominated.

HOW I SEE IT: In 2008, I opted into receiving communications from the Obama camp. I remain in that database today and the President’s team used it to try to convince me to vote for the Democratic candidate for Senate in Washington. In fact, the outreach was intrusive – I received five texts in the last week, including two on election days. Way too many. For this election cycle, I’ll look back at the overall mobile opportunities lost. Mobile is the ultimate engagement device because it is so personal. Yet generally candidates have yet to be convinced to spend money to build databases to swing the vote. Once they do, they have to reach voters with the right message at the right cadence. On to 2012.

* * *

Is it still user-generated content if Twitter includes ads beyond the tweeter’s control?

Advertising Age tells us that Twitter has decided to allow advertising in an individual users’ Twitter streams, also known as a timeline.  What’s more, longstanding Twitter advertisers Virgin, Starbucks and Red Bull have reportedly bought into this new service.

How will this work? Advertising Age tells us that users will be targeted based on the kinds of people and products they already follow, though not all users will necessarily see ads. For example, someone who follows other coffee companies or who follows people who write about coffee would be a target candidate for a Starbucks-paid Tweet.

Twitter will start with a smaller pool of its 175 million users by showing the paid tweets only to people who use HootSuite, a popular third-party client.

HOW I SEE IT: Many live to tweet. But it’s self-expression (and a little self-promotion as well) that is top of mind, not advertising. Of course, if you want to avoid advertising being linked to what you like, follow or just think, then start a blog and drive eyeballs and interest there. Or get a megaphone and shout on a street corner. Twitter is courting brands that want to cash in on our conversations and our social currency on Twitter. In a word, advertising is inevitable on Twitter. Never mind that it flies in the face of the free and unbridled expression that made it a social media giant in the first place. Twitter will have to work that out. Meantime, brand marketers would be wise to tread lightly. This is (was) a community first and advertisers run the risk of alienating users in the early days as Twitter makes the shift to a social media marketplace. Tact and sensitivity now will pay off big-time later.

* * *

A recent study reveals that the most people feel uneasy about apps and content that access their personal information such as identity data, payment details and messages.

Lookout, a company that offers security services for a number of smartphones, reported that more than 91 percent of consumers have some level of concern about the privacy of the personal identity data and information stored on their phone. Only 7 percent of smartphone users feel extremely confident that they understand what private information is being accessed by the apps they download from stores and destinations to their phones.

Lookout also found that – on average – users have 31 applications on their phones that can access their identity information. Of these 19 apps can access their location and five apps can access their SMS and MMS messages.

Sensing a business opportunity for security software that puts us in control of what personal data our apps are allowed to access, Lookout has introduced a new paid service that allows users to scan every app they download and determine the threat to their personal data. The premium offer is an enhanced version of the free app the company claims has already reached 3 million subscribers.

HOW I SEE IT: For the most part, consumers won’t believe that there’s a threat to mobile devices until the first – or several – security issues appear and cause mayhem. Or maybe Hollywood will jumpstart the panic with an updated version of The Net, where the heroine has her identity stolen by the gaming app she downloaded from a brand. In any case, no technology is hacker-proof and mobile is next. In my view, marketers should be prepared for the eventuality. We are selling trust. And whether it’s mobile commerce (linked to the user’s presence in the store) or mobile coupons (connected to a loyalty card), we are the one to blame if our sites or apps don’t do what they promise. Do you have a crisis plan in place just case your mobile business or offer is targeted?

* * *
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).

Tomi Ahonen,

No sales pitches here.It’s a gathering sharply focused on solutions and passionate about shaping our collective mobile future.

And, at only GBP 295 for registration, there is no excuse not to join the conversation.

Register here

If you have any questions about this event, or can#t register on the site, please contact the Course Administrator on +44 (0)1865 286958 or email Technology@conted.ox.ac.uk

Forum Oxford UK Conference Oct 15th from Jonathan Marks on Vimeo.

Unfortunately, I won’t be in the U.K. for this event (I just got back from the last one), but MSG friends and contributors including Martin Wilson will be on hand to tweet his observations and connect with attendees. He’s got some great ideas in the pipeline, so take the opportunity to meet-up.

For those of you already registered (and anyone else who would like to join), there will be an informal pre-conference get-together this evening starting from about 20:00 at the Lamb and Flag pub, 12 Saint Giles Oxford OX1 3JS.

Conference Speakers 2010

• James Elles, MEP (Member of the European Parliament)
  Presentation: Global Perspectives: the importance of leadership

• David Marutiak, User Community Ambassador, Vodafone Internet Services
  Presentation: Communities

• Chetan Sharma, Founder and President, Chetan Sharma Consulting
  Presentation: The Next 10 Years: 15 Trends That Matter

• Jeanette Carlsson, Business Strategy and New Media Leader, Communications at IBM Global Business Services
  Presentation: Social Media on the Web

• Jonny Bentwood, Head of Analyst Relations and Strategy, Edelman
  Presentation: The Influencer Tipping Point: How the collision of social media has enabled influencer relations to be a reality.

• Kevin McDonagh, Director at Novoda, Organiser of Droidcon, the UK’s Android conference
  Presentation: Get smart, Android’s not just about phones

• Dan Virtopeanu, General Manager, Voxline Communication
  Presentation: How to develop creative and effective SMS-based mobile games

• Volker Hirsch, Chief Strategy Officer, Scoreloop

• Kris Rockwell, President/CEO, Hybrid Learning Systems, USA
  Presentation: The Challenges of Defining and Delivering Mobile Learning

• Vic Keegan has spent most of his working life on the Guardian writing about business, economics and technology is now a freelance writer, app developer and adviser on mobile strategies.
  Presentation: The Poetry of Location

• Sean Mitchell, CEO, Movidius
  Presentation: Taking mobile entertainment to the next dimension!

• Xi Sizhe, Masters degree student at Vrije Universiteit Brussels and an Entrepreneur from China
  Presentation: Sensors, the ‘Internet of Things’ and opportunities for the manufacturing industry in China
  
  

ForumOxford force

I also encourage you to join the ranks of the people passionate about mobile by joining ForumOxford. (I did.) The web-discussion forum of the Technology Programme at Oxford University was established to bring together the best thinkers in the telecoms industry to enable the sharing of ideas on all aspects of mobile applications with other like-minded members of the community.

ForumOxford has been a huge success and now has over 2,000 members from 87 countries and from six continents. It also enjoys the generous support of companies including Nokia that understand that idea-exchange can drive positive results for us all.

Apps were the main attraction

Almost five billion apps have been downloaded to mobile devices since Apple’s App Store opened in 2008, according to Borrell . Eighty percent of those have been free, but users have spent $1.5 billion on the rest.

So the big question is: does making apps generate serious money for enough companies to count? Or is it a lottery where only a few can win big?

Panels during CTIA didn’t provide a concrete answer. Some developers are monetizing their apps successfully, but many others have yet to produce meaningful revenue. Nokia tried to get hopes up, positioning app development as a large opportunity. It counts 70 developers who have more than 1 million downloads on the Ovi Store.

Meanwhile, mega-trendsetter Oprah, who was an early iPad user, tipped the scales for several apps when she named her favorites during an appearance at a magazine conference. She likes those from CNN, ABC, Brushes, Sketchbook and Scrabble.

Inclusion in Oprah’s Book Club has made careers, not to mention millions of dollars for authors she has discovered or championed. Will she do the same for apps?

HOW I SEE IT: App developers are seeking to rise above the noise to get our attention (and make money selling apps). And, with Oprah’s new focus on apps, app developers are undoubtedly turning up the pressure on their PR teams to get Oprah to notice. They may as well hope to get their app featured on the front page of the Wall Street Journal. Developers can’t rely on app stores – or Oprah — to create buzz and sales either. It’s all down to business basics. Apps are no different than any other product – so think Retail 101 here. The best will be noticed and rise to the top; the worst will fail. There’s nothing new or wrong with that.

* * *
First-day comments from incoming Mobile Marketing Association (MMA) CEO Greg Stuart told us what he hopes to achieve. But I was struck by his comments that mobile is still in the early days.

He was quoted as saying: “Generally speaking, it’s in its infancy. We’re kind of where we were with the Internet ten years ago. We might have a budget of 1-2 percent, where most of it is a test.”

HOW I SEE IT: I got to know Greg when he was at the Interactive Advertising Bureau (IAB) and I was at InfoSpace. I thought he was smart. In his new position, it makes sense for Stuart to intentionally draw the parallel to the Internet to show where mobile can go – and how big it is destined to be. But the facts refute his view that we are in the test phase of mobile. Personally, I know of a brand that spent $16 million on a 2010 mobile program. And let’s not forget that many other brands, including Coca-Cola and Nike, get it and are leading with significant, product-selling and loyalty-building programs backed by separate budget line items for mobile. Others are spending – or have spent — $1 million or more on iAd. Connect the dots, and testing for most brands ended in 2009. If you’re still testing in 4Q2010 (and you’re not a small business just getting in on the action), then you are late to the party …

* * *

Finally, barcodes continue to gain serious traction. There was considerable talk at the conferences in London and San Francisco about barcodes, especially in view of all the recent research that underlines their growing importance. After all, over 90 percent of mobile phones today come with a camera, making virtually any mobile device a personal barcode scanner. And a significant survey from Scanbuy reveals mobile barcode scanning has increased 700 percent since the start of 2010.

This week my company, Hipcricket, announced a partnership with Scanbuy, a major provider of barcode solutions where Mike Wehrs (former MMA CEO) is at the helm. The tie-up gives Hipcricket clients enhanced engagement options and the capabilities to deliver mobile users information and rich-media about a product or brand when they scan a barcode with their cameraphone.

HOW I SEE IT: Barcodes alone aren’t a silver-bullet solution. They are an additional way for brands to interact with consumers, providing value through information and offers. Companies seeking to make their signage and point-of-sale(POS) materials interactive and effective are moving full-force to barcodes – and others (such as this luxury jewelry shop in Manhattan) are using barcodes to get in the fast lane faster. Proven effective in bringing the physical and digital together, barcodes will undoubtedly be more visible in holiday season advertising. How they perform will help write the script for 2011.

Peggy adds: I’m just back from the Mobile Marketing Forum in London, an excellent event I tweeted and commented for two days via Twitter. You can catch up on the highlights and key data points at #MMAFLDN. Meantime, look for my analysis early next week on Mobile Marketer, the must-read industry news site. MSG will pick up the MAD Movers series on Monday with an exciting and disruptive mobile ad startup, so stay tuned, or follow us on Twitter!

* * *
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).

Where are the growth opportunities and how will data drive the market? I caught up with James Lamberti, InMobi’s VP of Research and Marketing, to discuss the company roadmap and deep-dive (in a separate podcast) into the key findings from A Global View Of Mobile Advertising – July 2010. The comprehensive report consists of two parts. Part one (111 pages!) was released this week and draws from InMobi’s proprietary network stats to identify global mobile advertising trends across 125 countries and six regions. Part two is based on conversations with 20,000 consumers in 14 countries. The survey, done in partnership with comScore, has the goal of bringing a consumer perspective to the discussion, a view the industry needs to hear.

Today sees the return of MAD Movers, an in-depth series on MSG profiling key players and showcasing mobile advertising startups that deserve a closer look. InMobi makes the grade on both counts. The young company (launched 2007) started out in Asia with a sharp focus on local mobile search and monetization. But it quickly switched gears (and it’s name – MKhoj is Indian for search) to mobile advertising.

Two years ago the company was serving just 500 million ads a month. Today it counts roughly 21 billion ad impressions across its network a month, up from half a billion in January 2009. Little wonder that InMobi, currently billed as the world’s largest independent ad network, is pitching itself (and, I might add, successfully) as an alternative to Google/AdMob and compliment to Apple/iAds.

InMobi progress & data points

Ramping up to compete against giant mobile ad networks is top of the list since the company won an additional $8 million in funding from Silicon Valley venture capital firms Kleiner Perkins Caufield & Byers and Sherpalo Ventures in June 2010. InMobi promptly soft-launched its mobile ad network in the U.S. (which counts 3.4 billion impressions already), added staff and upped investments into its mobile ad serving platform and Advertiser ROI Tracking tool (aptly named AdROIt).

• Presence: The company, headquartered in Bangalore India, is operational in 125 countries, with 150 employees, and offices in India, South Africa, Singapore, Tokyo, The U.K. and the U.S.

• Publishers: InMobi counts over 4,000 publishers and 2,000 advertisers, including, Yahoo!, Microsoft, Yamaha, Quaker, Reebok, and Sony Ericsson.

• Reach: It serves ads (all standard formats for display and text banners – no adult ads) to more than 9,000 device makes and models and has a reach of approximately 185 million mobile phone users. Rich Media includes expandables and interstitials, and calls to action include video, search, call, SMS text, viral, and survey.

• Monthly impressions: As of August 2010 the network served 21.4 billion impressions, with 86 countries receiving over 10 million impressions. By comparison, Google’s AdMob reports roughly 18 million impressions per month. A breakdown of InMobi impressions reveals that Europe accounts for 1.8 billion, followed by Asia Pacific at 11 billion, North America at 3.4 billion, Africa at 2.6 Billion, and the Middle East at 600 million.

• Opportunities: The biggest growth markets for InMobi are the U.S., Japan and South America. The strategy is to go after the higher value – lower volume markets (specifically the U.S.) and watch for opportunities in developing markets as they mature. Thus, Asia and Africa are long-term bets that could pay off as technology advances there continue.

• eCPMs: James tells me that development of mobile advertising eCPMs is highest in Europe, one major reason why InMobi’s July 2010 report ranks Europe the healthiest mobile advertising market – period. InMobi analyzed its network eCPMs and indexed every region to the global average. The result: Europe is a 129 index (or 30 percent higher than the global average). It is followed by North America (125), Asia (101), Middle East (90) and Africa (70).

Data-driven customer discovery

InMobi has had to learn business the hard way, initially serving ads to Asian and Africa consumers across a myriad of devices (mostly featurephones). As a result, the company already knows (and has effectively solved) many of the fragmentation challenges facing mobile ad networks moving in the other direction (from developed to developing markets). It is also accustomed to serving ads in regions where mobile is the ONLY screen and where iPhone and Android have not yet reached a significant market share.

It has also made substantial investments in the infrastructure to cut the time it takes to get the ads on the devices. As James puts it: “We can serve an ad 30 -40 milliseconds faster and that is a core competitive advantage as we move into developed markets.”

But the real story is AdROIt – InMobi’s advertiser analytics technology – and the investments the company has made to super-charge its targeting capabilities. As James puts it: “It’s a lot like look-alike modeling, but we do it at scale and in real-time.”

• The objective: enable advertisers discover customers and segments they might not otherwise have been able to identify.
• The approach: harnesses real-time data feedback and intelligence to achieve better ad matching, ad optimization and feed this information back to the advertisers.

To be clear, this is all about targeting after the click. Before the click, advertisers tailor their campaigns to list of parameters that are now more or less a standard across ad networks: handset type, operator, operating system, geography, and so on. (For more background and a helpful how-to please download my road tests of mobile analytics and mobile ad networks I wrote on behalf of Bango.)

But it’s after the click that InMobi’s emphasis on data-crunching makes the difference.

How? Think of new hybrid approach that combines collaborative filtering and profiling with self-learning systems.

InMobi starts by tracking click-thru activity on the ads on the network. In other words, InMobi effectively monitors behavior of users across its network over time (for example, how they interacted with campaigns, responded to a call to action, or reacted to a free download offer).

It then feeds this activity into its self-learning, intelligent analytics engine. The technology (InMobi IP) has been architected to “understand” patterns that lead to performance and alter its ad serving in an automated real-time manner. Thus, the capabilities are in place to identify new prospects who are likely to be interested in the advertising message – and even respond to the offer in a similar way. “Rather than treat the information [it collects] as disconnected feature sets, [it takes] all the data inputs and feeds that in what we call a self-learning loop,” James says. “That allows us to discover other segments that look just the customers you just targeted.”

But the key here is similarity, not micro-segmentation. “I think you can actually over-target to the point where you cut yourself off from the possibility to discover other customers that are very similar but not on your radar…. It could be more of the same type of customer or it could be an evolution of what you thought was your customer base.” Either way, InMobi has the capabilities to expose these customers across its network because it has inventory and a massive reach. The result: A way to maintain tight targeting and potentially reach a high volume of customers (as opposed to targeting can result in the exact opposite outcome).

Where did the data come from? To start, InMobi clients integrate a server code for tracking purposes into their site. (InMobi provides an API as well as an SDK.) Alternatively, InMobi can build the landing page and insert it on behalf of the client. As a rule, it’s up to the publisher how they want to integrate InMobi advertising on their site.

InMobi roadmap

James promises to provide MSG an exclusive in two areas. First, an inside view into some of these campaigns and the results once they are ready for primetime. Second, market level data sourced from the company’s global research. So, stay tuned for these exciting stats.

Meantime, InMobi, which started testing AdROIt with clients months prior to announcing it in late April 2010, has its first proof points. As James puts it: “Early clients did see significant improvements to back-end conversion rates by as much as 40 percent.” He also notes that these advertisers maintained or even increased volume.

In the next few months InMobi says it will come to market with tools that will help discover the lifetime value of the customer. As James puts it: “It’s about knowing which customers are just viewing my ad and which customers are really taking time to engage with my brand.”

MY TAKE:

InMobi has several key factors playing in its favor. It has a broad, independent mobile advertising platform with global reach and – more importantly — a global perspective on the market. And global is going to become increasingly important as the app economy expands and developers and advertisers fine-tune marketing to generate revenues from countries around the world where users are downloading apps. [For a valuable perspective on this shift, check out Sizing Up The Global Apps Market (March 2010), a milestone report commissioned by independent app store GetJar and research and written by Chetan Sharma Consulting. It estimates that the overall mobile apps downloads will increase from over 7 billion in 2009 to almost 50 billion by 2012, growing at the rate of 92 percent CAGR. Asia – a region where the vast majority of downloads are ad-funded – accounted for 37 percent of total downloads in 2009.

This dovetails well with InMobi’s own corporate DNA (roots in India and vast experience serving ads to mobile users in the developing world). And investments in AdROIt mean InMobi has cleverly and quietly built up impressive analytics capabilities to potentially improve targeting after the click. In practice these analytics can show which ads are delivering the best results by exposing precisely how users interacted with the ad in the first place. (I’ll reserve judgment until the case studies are public, or until I do a road test.) Granted, the mobile ad market is crowded, and InMobi is one of a number of independent mobile ad networks gaining mindshare and traction. But mobile advertising is fast becoming a space where good analytics engines can make great companies. InMobi “gets” this and has focused on technologies that go beyond targeting. The ability to discover new mobile customers and segments (look-alike modeling with scale and in real-time) can certainly pave the way for more effective mobile advertising and – more importantly – an approach that is more engaging and driven by hard data.

Editor’s note: Interestingly, James tells me that InMobi is “working with other parties and mobile operators” to improve targeting capabilities before that first click as well. More on that later…

The MAD Movers series continues with profiles of major players, including Millennial Media, Amobee and BuzzCity. If you want your mobile advertising company to be considered, then please contact me directly via email peggy@msearchgroove.com .