Mobile Groove

In brief: A look at value chain confusion, the impact on mobile advertising and Hardee’s blueprint that brings some order to the value chain and benefits to people, PLUS Jumptap’s CMO Paran Johar talks about targeting and how to leverage it – and I can’t resist connecting the dots in Jumptap’s recent announcements.

The mobile advertising value chain is riddled with questions and shortcomings at this early stage of the game. Uncertainty over who has what place at t…

T-MOBILE CZECH STUDY SAYS SMS/MMS AD RESPONSE RATE 27 TIMES HIGHER THAN INTERNET BANNER CAMPAIGNS. The project confirmed the high response rates of SMS and MMS ads, based on campaigns from 22 advertisers, including Coca-Cola, Nestle, L’Oreal, Ford, Komercni banka and Eurolines. The most successful campaign had a response rate of almost 12 percent, while even the results of the least successful campaign were three times higher than the average response rate for Czech internet campaigns. Source

The bottom line: These results highlight the potential of compelling, relevant and properly targeted messages. In particular, they illustrate how much more likely are consumers are to respond to SMS and MMS ads than simple Internet banners. Peggy adds: Mobile Advertising Research U.K. confirms this, but there’s also a lot of mileage left in banners. For more on what makes for a great mobile advertising experience and a balanced value chain check back tomorrow for my take on a new-launch Hardees campaign.

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TOP APPLICATIONS ON THE APPLE APP STORE HAVE MORE THAN 1 MILLION USERS, according to AdMob’s latest Mobile Metrics Report for May 2009. The report found that the most popular free applications in AdMob’s iPhone network generated the majority of usage, with the top 5 percent of applications garnering more than 100,000 users in May, and some apps showing more than 1 million active users.

A further 14 percent of applications had between 10,000 and 100,000 active users, while 54 percent of applications had less than 1,000. AdMob reached 15.1 million unique users through iPhone and iPod touch devices across 2,309 applications in May, with the average user accessing four applications. 44 percent of iPhone ad requests came from devices running the new version 3.0 of the iPhone OS, compared to just 1 percent of iPod touch requests. Source

It has been a crazy-busy, exciting week at MSG! The Mobile Advertising Research U.K. report, which combines desk research with extensive primary research and surveys to offer invaluable insight into the attitudes of people and companies across the emerging mobile advertising business ecosystem, is ready for release after receiving the final polish.

Regular readers will recall that MSG was commissioned to conduct Mobile Advertising Research UK, a project research endorsed by the Interactive Advertising Bureau (IAB) and the Mobile Marketing Association (MMA), to expertly document the state of the mobile advertising industry in the U.K. and identify growth opportunities in the emerging mobile advertising marketplace.

The report — which combines valuable consumer insights gathered by ÆNEAS Strategy Consulting and Management (coordinated by my esteemed colleagues Tarik Fawzi and Atva van Zanten) and qualitative research based on more than 20 interviews with operators, enablers, agencies and brands contributed by MSG — marks the first in a series of region-specific reports that will include Germany (2009) and North America (2010).

During the inaugural event (Mobile Advertising Research U.K.) last week in London, Tarik and I presented an overview of key findings (documented by MSearchGroove here) and revealed the results of an online survey of over 1,000 British. consumers. Pricing is GBP 2,999 ($4,866) for the report, and a 500 GBP discount is available for MMA/IAB members, and people who attended the event. For more information, email James Cameron (james@camerjam.com) or call +44 7940 749874.

And speaking of reports, I am pleased to announce that I will provide a sneak-peak at the results of a performance analysis of voice-enabled mobile search services from search giants Google, Yahoo! & ChaCha during a special Mobile Search Masterclass in London on June 30.

Back from Mobile Advertising UK (Twitter feed: #maduk) in London with new and practical insights into mobile advertising and extremely positive feedback on my report findings.

Regular readers will recall that MSG was commissioned to conduct Mobile Advertising UK, a research project research endorsed by the Interactive Advertising Bureau (IAB) and the Mobile Marketing Association (MMA), to expertly document the state of the mobile advertising industry in the U.K. and identify growth opportunities in the emerging mobile advertising marketplace. The report Рwhich combines valuable consumer insights gathered by ̠NEAS Strategy Consulting and Management (coordinated by my esteemed colleagues Tarik Fawzi and Atva van Zanten) and qualitative research based on 20+ interviews with operators, enablers, agencies, and brands contributed by MSG Рwill be formally released in July.

Pricing is GBP 2,999 ($4,866) for the report. 500 GBP discount for MMA and IAB members, and people who attended the event. For more information, email James Cameron (james@camerjam.com) or call +44 7940 749874. And while we’re at it: A huge around of applause for James, long-time MSG friend and supporter, whose Camerjam Events company successfully brought together 130+ professionals and pundits at this inaugural event sure to spread to other countries soon!

In the meantime, allow me to share some of the key findings and data points based on an online survey of 1,000+ UK mobile users. (And please follow along in the complete presentation below via SlideShare, and listen in to this audio interview (supported by the iPhone blogging app Audio Boo) via The Really Mobile Project, where I put some of the stats into perspective.)

Continuing with Part 2 of my audio interview with Dan Harple, CEO of GeoSentric, the company behind GyPSii, a digital mobile lifestyle application. But look beneath the hood (and listen in to Part 1 of the series) and GyPSii isn’t just another company jockeying for position in the location-aware mobile social networking space. It’s got its eye on the prize: Using our location, our social graph (because we are members of the GyPSii community), and our judgment to index the world around us. Google may be about organizing the world’s information; GyPSii is about organizing the real world.

What to do with a people-powered, user-generated index of the world out there? Follow in Google’s footsteps and sell advertising on top of it.

As I wrote in my last post, GyPSii has cleverly harnessed PlaceMe, a primary function of GyPSii that allows you to create a point of interest (POI), add your content (image, video, audio, text), add your current or last geo-location, categorize/tag/describe the POI, and submit to the server in real time to a personal or publicly designated folder in your MyPlaces (your record of points of interest).

To get this to Google scale, GyPSii needs a lot of people out there indexing the world with their mobile phones. It’s an ambitious strategy, but not far-fetched. Dan’s forecast models tell him that a company with 7 million users, each doing 2 PlaceMes a month would produce an index in the first year that would be “significantly larger than the Google file system in its first year.” (Dan expects GyPSii to be on “between 80 and 100 million devices in the coming 12 months.”)

There are no stats on active users as a percentage of that total. But GyPSii members tend to be hyperactive when it comes to PlaceMe, creating and tagging “15-20 PlaceMes per month.” Every time GyPSii members do that, they are adding a new indexed item to what the company calls the Osmotic File System (OFS).

Where does mobile advertising come in? It’s already work in progress in China. In fact, GyPSii has a lot of progress to report in China – period. As Dan sees it: “To have an ad-based model, you have to have an audience.” To reach more members (and encourage them to index the world around them) GyPSii’s has this week launched the Java version of its application, with both Chinese and English language support.

The expectation, according to the press release, is that the new app will “appeal to the 70 percent of the 650 million phone owners in China who own Java-based phones.” By way of background, GyPSii is already locally available in China for the major operators China Mobile and China Unicom, for download on compatible Java phones. GyPSii is also available globally across a wide range of devices, including Samsung, Nokia, LG, Apple iPhone, and BlackBerry smartphones.

How does GyPSii plan to make the jump from critical mass to relevant advertising? What is the rev share model for partners (handset makers and carriers) who get on board? And what is the experience for members that use the ExploreMe function to search the world around them (and so trigger the delivery of an ad on their mobile device)? These are just a few of the questions I explored with Dan in this final segment of our podcast interview. (It’s a little longer than my usual interviews, but I felt detail was necessary to fully understand the interplay between search and advertising GyPSii-style.

SMARTPHONES ACCOUNTED FOR ALMOST THREE TIMES more usage than their relative market share, according to AdMob’s April 2009 Mobile Metrics Report.The report compared usage of mobile websites to usage of HTML sites on mobile devices and found the relative usage of both to be highest on Apple and Android devices. The iPhone’s OS had 8 percent of the smartphone market, yet generated 43 percent of mobile web requests and 65 percent of HTML usage. Ad requests from applications are said to have contributed to this heavy usage. Source

The bottom line: As illustrated numerous times within this section, the data dominance and superior browsing experience allowed by smartphones is undeniable. Making mobile Web user experience smooth, easy, and compelling – as these handsets often do – is shown to consistently drive mobile data traffic. That many consumers probably can’t tell and don’t care about the difference between mobile websites and HTML sites is also testament to technical developments.

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GARTNER SAYS THE NUMBER OF MOBILE PAYMENT users will increase by 70 percent this year. Its report claims that 73.4 million users of mpayment in 2009 would represent a leap of 70.4 percent from 2008. By 2012, it says mobile payment will reach more than 190 million, more than 3 percent of total mobile users worldwide, attaining a level at which it will be considered “mainstream.”

Gartner defines a mobile payment as paying for a product or service using mobile technology such as a short message service (SMS), Wireless Application Protocol (WAP), Unstructured Supplementary Service Data (USSD), and Near Field Communication (NFC). It includes transactions that use cash, bank accounts or debit and credit cards, as well as non-carrier stored value accounts, such as travel cards, gift cards or PayPal. It does not include transactions that use mobile operators’ billing systems, such as purchase of mobile content or telebanking by mobile to the service center via an interactive voice response (IVR) system. Source

The bottom line: Although the definition of mobile payment is ambiguous here, these figures demonstrate that the mass market is slowly growing confident in using their mobile to pay for and transfer money. Much effort has been made to foster consumer confidence in the micropayment mobile payment space, and the adoption of mobile banking technologies still varies drastically from region to region. There are regulatory and security challenges to overcome, particularly with the emergence of NFC technologies, but these figures give strong reason for hope.

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SPEECH APPLICATIONS ARE TO TRIPLE by 2014 according to a new Datamonitor report. The report claims that as we get used to using mobile computing devices in ‘hands-busy’, ‘eyes-busy’ environments, speech recognition technologies are expected to gain considerable traction. The global market for advanced