NEWS GROOVE: Killer Phone Apps; Text Ads Sell & Location-Based Mobile Social Networking Schemes To Watch » mobilegroove

ARE CAMERAS THE KILLER APP? According to a survey conducted by consulting firm Ovum, mobile phones are increasingly being used as cameras, in addition to typical voice and text capabilities. Ovum’s survey covered 12 markets (with a focus on Asia-Pacific), and all but Japan seem to be embracing camera applications. Yet, Japan’s users have overwhelmingly embraced mobile email; 77 percent of survey respondents say they use it on a weekly basis (although email is preferred over SMS in Japan). In comparison, the number of weekly email users is significantly less in other countries: 22 percent in China, 14 percent in Singapore, 11 percent in the U.S., and less than 10 percent in other markets. Ovum expects these numbers to increase over time as people gain more interest in accessing email from remote locations.

The biggest draws for individuals who do use their mobile phones on a weekly basis are music, games, and mobile TV/video. Survey respondents from China, Singapore and Korea said they use their mobile phones to listen to music and play games. Fewer respondents in Europe and the U.S. use their phones in this manner, but between 10 and 20 percent actually do, which Ovum believes is a positive sign. Not so positive, however, is the apparent disinterest in using mobile/TV applications. While this could change, Ovum appears more interested in tracking the number of users accessing the Internet on their mobile phones. This number is currently higher than average in Japan and China. Overall, though, cost may be an issue that is hindering general acceptance of all mobile applications: survey respondents said expense was a main drawback for them.

IS TEXT THE ONLY WAY TO SELL? This post from eMarketer walks us through some key data points. According to a survey conducted by the Direct Marketing Association (DMA), seven out of 10 respondents (mobile users ages 15 and older) who have responded to mobile ads said text messages motivated them to act. In addition, 42 percent said they participated in surveys sent to their mobile phones, and 30 percent responded to an email offer for a product or service.

Yet, another survey from ExactTarget revealed that only 1 percent of U.S, Internet users identified text messaging as their preferred medium for opt-in communications. Email and direct mail remain much more popular options, notes the survey. Nonetheless, marketers should keep close tabs on text messaging as a viable option in the future.

IS MOBILE MAPPING THE WAY FORWARD? Users are gaining interest, and that plays in favor of location-based services (LBS). According to a study by comScore Inc., mobile maps are gaining interest from mobile users worldwide. The study cites that the number of U.S. mobile subscribers accessing maps via their mobile phones increased 82 percent and the number of European subscribers grew 49 percent in a three-month period that ended in May. The study also notes that most U.S. subscribers used their iPhones to access the maps; the Nokia N95 and N70 are more popular in Europe. The majority (73 percent) of U.S. mobile subscribers, and 57 percent of European users, access the maps via their browser. Fewer than one third are using a downloaded application to access more graphic-intense maps and directions.

Surprisingly, SMS is not leading the charge. In Europe, the penetration of consumers using SMS to access maps and directions is only 24 percent; it’s 23 percent in the U.S. The majority of subscribers-regardless of country-said they used the maps while driving or riding in a car, even where public transportation is used more frequently.

WILL LOCATION-BASED MOBILE SOCIAL NETWORKING BE BOOM OR BUST? Sparked by an influx of location-based mobile social networking services offered by the likes of GyPSii, Pelago, and Loopt, and their functionality that enables users to easily connect, ABI Research expects revenues in the segment to top $3.3 billion by 2013. The market research firm notes that licensing and revenue-sharing models are driving financial growth and customer bases of social networking start-ups. ABI Research principal analyst Dominique Bonte provides examples such as the agreements between GyPSii and both Garmin and Samsung, as well as Loopt’s partnerships with major US cellular carriers.

Technological advances are also enabling the growth. Many social networking vendors have licensed Skyhook Wireless’ hybrid solution that combines GPS, Wi-Fi, and Cell-ID. Some sites have opted to use open location-based platforms, including uLocate’s Where. ABI notes, however, that privacy issues are among the reasons that mass market adoption of location-based mobile social networking has not yet occurred. Still, future possibilities seem to outweigh the doubts: Nokia is moving forward with a beta launch of a location-enabled Nokia Chat social instant messaging application.

This entry was posted on Friday, August 8th, 2008 at 11:26 am and is filed under Location-Based Services, Mobile Marketing, Mobile Research, Mobile Social Media. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.