Growth of Mobile Commerce [Infographic]


Increasing direct E-commerce sales via mobile devices has been a huge focus in recent years within the world of big retail and the mobile phone industry. With the ubiquitous distribution of smart phones and devices providing constant connectivity to end users coupled with the ability to potentially track, target and incentivise end users, the possibilities for m-commerce are endless and the Infographic below shows some interesting data about the rise of this mobile commerce. 
 
The barriers to date have been around user interface problems, security issues and lack of comfort and trust by the end user to actually make purchases through there devices. Many of these problems are being overcome by the development of better device technologies, added security features, the creation of user friendly mobile retail apps and in general a growth in comfort and attachment of the end user to their device.
 
It is therefore no surprise, as some of the stats below show, that many consumers are open to and actually gearing up to m-commerce, downloading mobile retail apps etc. Location based tracking and targeting is very much the missing piece that all big players want to add to their arsenal. The technology is available … the issue is more about user permissions and trust. Large amounts of time, money and effort are being thrown into ways to  incentivise users to accept location tracking on their devices and as the stats below suggest these incentives seem to be working.
 
Smarter Apps which do product price checks, instant gratification of QR codes and the wonder of Augmented Reality are all ways in which the end consumer is being tempted into the world of m-commerce, sharing more data and ultimately allowing themselves to be highly targeted for marketing purposes. It looks like there is no stopping the rise of m-commerce.


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Cyber Geography – and why you need to know about it!

In a series of articles over the next few months I am going to take a look at the world of cyber geography, or location based services – a name which does little to convey the power of this niche area of the web, an area, in which applications are growing at an exponential rate and acting as the catalyst for some very innovative business applications.

Any physical business will tell you that just how successful you are will have a lot to do with being in the ‘right place’ at the ‘right time’. Even today “location, location, location” remains the mantra of many executive teams. Here are just a few of the statements regularly heard in the boardroom:

•    we have to be where our customers are;
•    we need to be close to our suppliers;
•    we need to be near a pool of skilled labour;
•    we need an office with the right address; and
•    we must be on every continent and in every high street.

Only recently, I was reminded about the importance of geography when a major chain store decided not to open a store in my hometown. Their justification, too few people within a 30-mile radius of the store and the wrong population profile.
 
BUT just how important is geography in the world of cyber business – surely geography is dead, after all your office can be anywhere, your customer base global and, in many cases, your products digital! So does location still matter?

In short the answer is an astounding YES – but for very different reasons than at the end of the last century.

It is a very different kind of geography that is transforming the way ‘SMART’ companies are using knowledge about ‘YOUR’ location to improve their business models.  

Knowing where you are, how you behave and anticipating what you might, or might not do next is big business!

To start off this series of blogs I would like to show you just how powerful adding geography can be!

The App I am going to take a look at is SONGKICK.
Before I start, you need to know a little bit about the customer for this App to fully appreciate its power. In this case that customer is me! You see as well as having an interested in social media, geography and the web I also love live music – anything goes – but to be honest you can’t beat good classic rock. The challenge is, of course, finding out when the bands you like are in town, where they are playing and how to get tickets?
I can’t quite count the number of times I have missed a gig because either I didn’t know it was on, or I found out after all the tickets had gone to those better informed than I.

This is where SONGKICK – ‘kicks’ in, a life changing App, and more importantly a clever way of getting me to part with my money.  So what does it do? and how does it work?

First you need to know that there are two versions, one that works with your PC or Mac and the second that works on a SmartPhone. Both do a similar thing, but it is the SmartPhone App that I will concentrate on here.

In short SONGKICK raids your ITunes library to identify the music you like, then checks the date and your predefined, or current location and alerts you to:
-    which of the bands, with tracks in your iTunes library are on tour;
-    if any of these bands are in your neigbourhood; and
-    where you can get tickets (which on-line agencies are promoting the concert).

….And it doesn’t stop there. You can go on and:

-    choose to buy a ticket;
-    share the info with a friend via email or one of a number of social networking sites;
-    add a note to your Facebook page indicating that you are going;
-    click through to the band’s web site to buy the latest CD/download; and
-    if you are really keen, find out where the band are playing next!

What is clever in SONGKICK is that different information is being combined to provide you with context specific, personalized recommendations that you can control, a key one being your location (geography).

The result is that through clever use of ‘local’ data mining, determining your position and intelligent web searching, the App encourages you to spend more on tickets than you would have done in a pre SONGKICK era; a very clever little App indeed.


Next time – I will be looking at the ‘geographical’ technology that underpins Apps like SONGKICK, in particular Global Positioning Systems (GPS) and Geographical Information Systems (GIS) and provide you with some background on where these technologies have come from and how they work.

In the meantime, I would love to hear from everyone about your favourite ‘Geography’ App – especially if it has convinced you to part with your hard earned money.

Everything You Need to Know About Mobile Marketing

If you missed this report earlier, then I suggest you take a look because the 360i team has done an incredible job in compiling everything you need to know about mobile marketing into an 80 page bible called the “Mobile Marketing Playbook”. Topics covered in the Mobile Marketing Playbook include:
  • Mobile & Search
  • SMS Marketing
  • Mobile Advertising
  • Social Marketing
  • Mobile Apps
  • Commerce & Shopping

Attending Think Mobile in New York

This week I will be attending Think Mobile in New York which is presented by MediaBistro.com. With 2010 finally being the official year of mobile, I think we’ll continue to see conferences like Think Mobile popping up frequently. I am really excited that the speakers plan to coverage topics such as: monetizing mobile, marketing mobile apps, and targeting based on mobile platform. If you’re in the neighborhood, you can ping me @WaWorld (we also plan on doing some serious Twitter coverage of the event).

You can also find me at the following sessions:

Mobile App Platform Survey: Is it all about the iPhone?
This session will provide a detailed overview of today’s mobile platforms, to help you decide where to target development efforts

Building a Mobile App Team: Figuring out who you need for your app
Let’s say you wanted to get started tomorrow morning. How long is a typical development cycle? Do you need to hire artists or audio professionals? What about a UI designer? Who will build your app for you? What do they need?

Mobile Content Strategies: What Works?
Mobile content has become a diverse field: WAP sites, iPhone-formatted sites, desktop HTML pages. More video, more apps, and the mobile Web. What works best?

Mobile Challenges Biggest and Best in the Industry – Whitepaper from Bango

There are still many complexities of mobile and the latest whitepaper from Bango shows why some large companies are still struggling to get the fundamentals right. Companies such as Google and Adobe who are big players in the web world are finding it difficult to understand mobile, and as a result are failing to deliver an acceptable mobile experience to consumers.

Below is an excerpt from Bango’s Whitepaper:

With nearly 4 billion mobile phones, the size and reach of the mobile market is vastly bigger than the PC internet. To meet the huge variations across business and consumer segments there are many different types of mobile phone. Demand varies by geography, budget, usage priorities, even by which network you subscribe to.

With such complexity, solutions successfully crafted for the PC internet do not translate easily into mobile internet. As this paper shows, many of the companies migrating their fixed internet services to mobile haven’t got it right.

Google, the world’s leading internet company, is spending a considerable amount of their budget and marketing to build mobile applications like Google Maps and a complete mobile operating system (Android). Meanwhile, core business components like search fail to deliver acceptable results for mobile consumers and even the latest mobile additions to Google Analytics are nothing more than simple patches that fail to deliver the accuracy required.

Optimize Your Site for the Mobile Web

We have obviously moved into the era of mobile now and to help websites transition their content to mobile, Google has put together a great article on how to speed up the mobile web.

Mobile internet usage is skyrocketing worldwide. Throughout 2009, 50% of all new internet connections worldwide are coming from phones (eMarketer, 2008 and 2009). Google internal data shows that as mobile browsers improve, users’ browsing habits increase.

Mobile browsers render web pages differently from desktop browsers, so some steps are needed to make them work well on phones. This article contains some basic technical and non-technical tips for making your web content faster and more suitable for consumption on mobile devices.

Below are some of the best practices:
  • Provide an obvious link to the mobile version from the desktop version.
  • Use a conventional mobile URL, and advertise it.
  • Make the user interface work for mobile devices.
  • Format your website for a range of mobile browsers.
  • Reduce the number of requests and the amount of data transferred.
  • Minify your code.
  • Eliminate redirects.
  • Load contents lazily.
  • Use CSS3 instead of images where possible.
  • Plan for the lowest common denominator.
  • Test, test, test

Optimizing for Mobile White Paper – SEMPO

Mobile may be the next hot thing, but how as a search marketing professional, do you fully realize the potential of this healthy, growing market? SEMPO, (Search Engine Marketing Professional Organization), recently looked at the mobile market subject and is publishing a “Point of View” (P.O.V.) paper, examining the interrelationship of mobile and search.

The complete mobile paper, authored by SEMPO’s Emerging Technologies Committee, is available at http://www.sempo.org/learning_center/editorials/sempo_etc_mobile_pov_09-01-09.pdf. Earlier this year SEMPO published its first P.O.V. paper, on social media, accessible at http://www.sempo.org/learning_center/editorials/sempo_social_media.pdf.

Based on research from a number of sources, here are some of the topline data points for consideration in looking at the growing mobile market:

  • 64 million U.S. wireless subscribers surfed the mobile Internet in May 2009, compared to 36 million in January 2008.
  • PricewaterhouseCoopers’ “Global Entertainment and Media Outlook, 2009-2013” predicts that global mobile advertising spending will rise from $3.8 billion in 2008 to $9.2 billion in 2013.
  • The U.S. will account for approximately one-third of this spending, making it the largest single-country market for mobile advertising, followed by Japan, with the total EMEA region roughly analogous in size to the US.
  • iPhone and iPod Touch own 60% of the current market.
  • Mobile networks are reporting click-through rates of anywhere from 5% to 15% on campaigns, putting the desktop Web’s average of 2% to shame.
Optimizing Mobile

Mobile is a compelling market force but search marketers have some challenges ahead, according to SEMPO. Disparate hardware and software platforms, competing applications and rival search engines make the mobile Web ecosystem more complex than the desktop environment. SEMPO suggests marketers implement these steps in order to achieve better visibility, more accurate targeting and more successful conversions.

  • Create usable content designed around the specific wants, needs, and usage patterns of mobile consumers.
  • Redirect users to that content via SEO and paid search efforts calibrated to the smaller screen real estate available on mobile devices.
  • Location, location, location: remember that mobile is about location, specifically where the mobile user is at any given moment. Take into account the specific behaviors and needs that accompany on-the-go Internet access when crafting advertising messages.
  • Brands that value their site stickiness and hard-earned search equity should create versions of their desktop Web content synthesized specifically for the wants and needs of the mobile user.
  • Marketers need to segment the market by demographics and mobile device traffic. Mobile is not a one-size-fits-all proposition.