Archive for the ‘Mobile’ Category

News for Mobile Bulls

Considering this is the end of August, last week was surprisingly full of news in the mobile arena. There were several market studies released in the past month, and they’ve got me excited about mobile again.

Jumptap just announced a very major Series D raise - $26 Million led by AllianceBernstein. They will be using the funds to build out and improve their growing mobile advertising platform, with the plan to capitalize on the growing mobile search and advertising market. In their release Dan Olshwang also points out that mobile devices now outnumber PC’s with over 3.3 billion devices in use worldwide.

“Internet advertising is currently growing at a compound annual rate of 18.3% and will reach $73 billion in 2011. What is really exciting about mobile advertising is its ability to eclipse Internet advertising,” said Dan Olschwang, President and Chief Executive Officer of JumpTap.

Those are some really smart people pouring huge amounts of money into Mobile search. Considering the overwhelmingly tight credit market right now, this is a really astonishing deal. And its really not getting any major press (at least that I’ve found). I had to dig all the way to JumpTap’s “News” page to find the release.

One of the reasons why there seems to be a recent resurgence of mobile is that there is data flowing out of  all the major research firms indicating significant growth in mobile use, both the volume and frequency. Gerg Sterling pointed out an interesting report from Nielsen Mobile that shows some intersting data on mobile search (and surpise - domination by Google of the market). According to the report about 89% of searches were in the three categories of “Information,” “Local Listings” “and Websites/Navigation.”

Most relevant to my local interests is that 29% of all mobile searches were for “local listings” and 33% were for “Information” (- thats a pretty broad term). In an August 12th report Neilsen Mobile noted that US and Eurpoean markets were “more mature” and mobile use was focused around email and search, compared to entertainment as the leading segment in Brazil, Russia, India and China. Entertainment doesn’t fall in the top 5 for US and EU - (But city guides/maps do!). This data goes along with a trend that JumpTap is reporting as well:

JumpTap notices a shift away from entertainment-centric searches, such as ring tones and downloads. It reports more navigational searches: Users looking for websites (such as specific social networking sites) and utilities (such as email) on their devices. (From msearchgroove)

This data points out that people are beginning to use their mobile devices for real life tasks, perhaps representing the beginning of the shift from computers to Mobile Devices. One of the frequent arguments against mobile advertising was that mostly people were going online to download wallpapers and ringtones for the phones (which is pretty uselss for any marketer not representing wallpapers or ringtones), but now a widespread adoption of mobile use is changing that argument.

The market is maturing and the huge investment by AB shows that the day when our phones replace our laptops is one day closer. I hadn’t put much thought into mobile until recently, but all this talk of Googles Android and their “Content Market“, iPhone and of course their apps, is hard to ignore. Will marketers begin to listen, or will old school execs continue their slow migration to online media one step at a time?

Internet Yellow Pages and Local Search in 2009

I was doing some late night number crunching and data research and I came across some interesting points. A few I touched on earlier in the week, but I’ve had some more time to address some of these and I wanted to talk about them. There are huge numbers involved here, and some interesting theories that I haven’t quite finalized in my head. Maybe these thoughts will help clear that up.

Check out this post form Conde Nast in February talking about the Yellow Pages. It is fairly amusing considering how just about anyone you ask in the Northeast will admit that they don’t care much for print advertising. (We hear this all the time) Note the comment:

If Nielsen can’t get TV viewership right after all of these years, how on earth can the Yellow Pages Association know how many times anyone “references” the Yellow Pages?

Thats exactly the point, you can’t track how people use the yellow pages, you can’t see which people read your ad, or how many times people read it and took action, or no action. There is no data to support their continued use.(or even to figure out why people aren’t using them anymore)

However, people still need to find stuff; restaurants, clothes, hotels, doctors, lawyers, whatever… simply now people are turning to the web for a quicker, easier search experience. And search is dominating the web these days. Google is raking it in, Yahoo and Microsoft are scrambling to get a bigger piece, and startups like Cuil and Mahalo are trying to get break into the scene. But however they’re gonna find it, people are going to use search, more specifically local search.

Local search will soon be the king of search, as the economy tightens, people are traveling less and are generally more concerned with whats happening in their community. (and thus more willing to spend their x dollars locally) A particularly powerful quote from A new report by Borrell Associates (which I referenced in an earlier post):

“Local online advertising,” defined as search, “local banners,” and video (classifieds are also in there), would reach $12.6 billion in 2008, with “local search” contributing roughly $5 billion to that total.

Those are big numbers, and there are big players already in and entering the local search market. But there are a lot of nuances in local, people are different, politics matter and most often they have no idea who Marc Andreesen is, they don’t care who backed your startup, they dont care about the fancy rails technology your site runs on. They want results and they want to talk to a person.

There is no concrete answer to the question of who will succeed in local search, there are many verticals and plenty of niches to tackle, but there is certainly going to be a battle over it in 2009. And I didn’t even touch on mobile, which Google’s Eric Schmidt thinks will one day be more profitable than anything else they do. Thats a scary thought.

Will the general population move towards mobile search, are we still two or three years away? Or will local search dominate 2009? I know there are other much hotter topics, but seriously if you are reading this you probably aren’t Joe Cleveland. (Ok, easy)

Mobile Opportunities - 2D Barcodes

Ok, so the iPhone phrenzy has calmed down slightly and every major news outlet or blog has covered their view of the device. Now lets examine how the opportunities in mobile have evolved with this fancy new device.

The GPS capabilities have been upgraded so my iPhone friends will be able to easily figure out, not just who, but also where they are. This brings a variety of Location Based Services to the iPhone that are more readily available now. Local coupons, location aware information and a slew of soon to be spammy SMS services are sure to be around the corner.

I’d like to focus on an interesting new technology that is very popular in Japan, and I’ve mentioned before - 2D Barcodes. Google made these next generation bar codes available in their print ads. Heres an excerpt from their explanation:

Recently, you may have seen newspaper ads for ServiceMagic placed through the Google Print Ads platform. These particular ads include a Google Consumer Response Tag (CRT) with multiple response mechanisms: URL, search terms, phone number, coupon code, SMS code, and 2D barcode. This test is part of our efforts to make print advertising more useful for readers and more measurable for advertisers. 2D barcodes are an especially exciting part of this because they allow readers to “click” on interesting print ads with their cellphones and seamlessly connect to relevant online content.

2D Barcode from SemapediaWhats really exciting about these “Quick Response” codes, is that many features of these 2D bar codes will soon be reaching consumers and connecting them instantly with businesses. With their application to convert local search online to the real world (and vice versa) these QR codes could be extremely valuable to marketers and small businesses.

To the right is an example of a 2D Barcode from the website semapedia.org. Semapedia.org lets you take a link from wikipedia, wikimedia and several other wikis, create a 2D Barcode to link back to specific articles, then print it and place it where ever you wish. Their goal is to “connect the virtual and physical world by bringing the right information from the internet to the relevant place in physical space.” Now picture this applied to your favorite restaurant, or take out place.

You’re walking down the street, right around the corner and you see an ad for the deli. You whip out your phone and snap a picture of the code and bang, you just got a free beverage if you come into the deli and order a sandwich in the next 10 minutes. Just bring your phone.

This technology has applications across many mediums, business types and ad types. Use it to get more information on cars at the bus stop, movies on the subway, hotel rooms at rest areas or just about anything - on demand, on location, while the consumer is in purchase mode. Talk about ROI, send the coupon to a tracking URL and see how many coupons are redeemed from your coupon.

No Nigerian Spammers, no number harvesting, just on demand information. Brilliantly simple.

I see an opportunity in a tinyurl style “QR” generator. Although there are a couple companies doing it in Europe and Japan (Kaywa seems to be the most friendly). They currently offer personal QR codes free as well as enterprise and API use for a fee. Unfortunately there is little traction in the market here in America, as usual we are behind the mobile curve.

Here is an example of mobile marketing from Sweden: Crossmedia Avenue ran a MMS campaign for a pension insurance company that invited users to send in a picture of themselves and see their face transformed 70 years in the future. With over 262k photos sent via MMS in one month! That is a powerful response in a country of 9 million people. I can’t imagine that we are more than 9-12 months away from these sort of campaigns coming to the US.

With over 14 million BlackBerry’s sold last year in the US, iPhone sales expected to reach 10 million world wide by the end of this 2008 and analysts expecting the pie to keep growing, the proliferation of smartphones into our lives is close to reaching a critical mass.

Now if only I could grow a second set of thumbs…

Old Media vs. New Media

The world of old media is degrading faster than ever. Newspapers have been suffering more than ever before, and are losing necessary traction in local markets. TV is beginning to embrace digital media as an alternative source of media, but as a new member of media is a step above print in the food chain.

So where does this lead us? How do the old guys (read newspapers, but include old TV guys), compete on a level playing field where consumers are more and more determining their place and time to consumer their media. (A great discussion of this topic can be found at Screenwerk)The rise of the internet, and mobile specifically should be seen by these players as bountiful opportunities. They have strong brand presence in their market, established goodwill and existing relationships in their respective communities. Except there is one thing missing from them: awareness of the opportunity vs rather than observation of the threat.

I had a meeting recently with some “old guys” interested in reaching a more engaged, younger audience via a partnership through with local search. They were smart, experienced and were using a pretty good model and having success with it. But 10 minutes into the meeting, I could tell they didn’t get it. They knew what I was talking about, but they didn’t get how the differentness of what we were discussing made it better. A classic “old way of doing something with new technology, vs new way of doing something” issue. And it wasn’t the first time I saw it.

Newspapers are still in trouble and now seem to be past “denial” of the threat the web poses to them, but they remain stubborn in embracing it. Local content should be celebrated and contributions should be encouraged, however the model of user generated content and social collaboration that has made so many online organizations successful continues to be rejected. Until Web 2.0 is embraced by old media, newspapers in particular, they will continue to falter.

Newspapers more than any other medium are most well positioned to capture value out of their local markets with the web. The lack of their expansion into other verticals is a prime example of their stubbornness. They would have to sack it up and realize that there is potential revenue through a different medium. Hundreds of other companies have realized this and have capitalized on these gaps. Yelp, every version of the yellow pages and all local directories are in existence today because the big players (newspapers) failed to act.

Now what is the next space that the new, big players will fail to act in?

Another Busy Week

We are working on developing an entirely new pricing structure, from the sales materials to the training to the handling of new and recent prospects to the web architecture that facilitates it. Whole new focus, which I’m very excited about. So far this month its taken on very well.

What I’m curious about is how other companies my size are handling the current economic climate. From a general downturn, to the burgeoning online economy. I’ve been hearing alot about some other startups in our field and laugh and wonder about some of their statements.

There’s alot going on in the local search market, and its only going to get more packed. Its a very exciting time to be involved in local, and we are getting after it.

Time will tell who will make it to the “next level”

A little break, but not from my BB

Last night Ryan Seacrest was on Larry King, and was speaking on a variety of issues, including the usual useless gossip, but he also touched on his BlackBerry Addiction. Larry asked him about the several businesses he runs and how he manages to keep them all together and when he sleeps. His response was basically that he turns his BlackBerry to silent, but wakes up routinely to check it through the night. I was watching this with my girlfriend and she informed me that Ryan’ BlackBerry use sounded an awful lot like mine.

Took a fairly last minute trip to North Carolina to visit my Grandmother, and we crushed the BlackBerry on the way here. Same old stuff for me that I’ve written about before, but it emphasizes how relevant it truly is. AT&T has announced that it will subsidize the release of the 3G iPhone this summer by as much as $200. BlackBerry announced its new “Bold” device (with 3G). Overall, the market for mobile phones and web-rich devices is growing enourmously. If people are able to buy iPhones for 2 or 3 hundred dollars, imagine how many they will sell.

Once everyday people, not just the early adopters and business savvy customers, but everyday Jones is able to access rich, mobile internet - then we will see the explosive growth in mobile advertising. I’m very excited to see what happens in the 4th quarter this year…

Mobile is Progressing

This week I saw a few examples of how mobile is finally beginning to cross the chasm between innovators and early adopters. Large players are seeing a shift in their advertising dollars, Google announced it was making a major partnership with Sprint, and launched their international portal for iPhones, iMedia Connection came out with a great overview of mobile barcodes, and also yesterday my BlackBerry was with out data for about 4 hours and I kind of freaked out.

The combination of these events, along with specific posts from two of my favorite bloggers (David Berkowitz on privacy and Darren Herman on privacy) led me to the conclusion that we are near the tipping point of doing something great with mobile (working on a very cool new mobile tool for our company).

If you read David and Darren’s posts, you’ll see that they feel strongly about privacy and the prospect of invasion of your personal space on a cell phone. I don’t see mobile marketing being a success if its seen as an invasion; however, mobile marketing becomes a success when marketers are able to reach people as they are in transaction mode. Transaction mode being any of the following: “Lets find a hotel nearby,” “I’m hungry,” “I’m thirsty,” “I really want one of those…” etc. As marketers see the value in reaching users searching for this information, and the mobile device becomes more of a “pocket” notebook computer more dollars will flow across the mobile airwaves.

As the devices transition, the dollars will transition behind them.

Early Adopters and You/Me

Today’s Fast Company Big Idea is:

“Anyone who says early adopters don’t matter needs to go back to business school. Facebook and Twitter are beginning to impact business just as much as advertising ”

I follow these daily thought provokers from Fast Company because they are usually fairly interesting. I think this one is excellent. I don’t consider myself to be an innovator, but a late moving early adopter, I am becoming more early in the adoption cycle, but still I’m typically a little behind (particularly in the larger technology space, which I am still new to).

But the importance of early adopters has never left my thoughts. The early adopters are the business owners we seek out first when entering a new market, and they are precisely not the end users that we seek to reach on our website. They are the people who determine whether new technologies fail or succeed and build momentum for those that do. So I wait for the early adopters to try things out see if they fail. Early adopters are the front line in end user technology, and they need to be taken seriously.

A few days ago, I mentioned Lewis Black (ok, I’ve been a little harsh on Lewis, but I’m actually a huge fan) and his mocking of internet addicts - essentially early adopters. Again, a prime example of the lack of understanding most people have of how new technologies can help us do things better and faster, or sometimes just have more fun doing them. MySpace, turned into Facebook, then Twitter became the next hot thing.

Many of my clients are now “working” on a Facebook page, and already have a MySpace page. Do these pages help them at all? Not measurably, but the point is that even these late adopters and slow moving businesses now see that they “really should” be on Facebook. Do a quick google of “Facebook Marketing” (an auto suggestion in firefox!) and you can see that people are making entire businesses out of advertising consulting for Facebook.

But now, the innovators are moving elsewhere, which means the early adopters will be soon to follow. Where will they go, and what will be that next cool technology that will be affecting the way people to business? I would say mobile, but the iPhone already happened and the flurry of 3G phones coming out this summer will blow that away. Its not a new social network, because I believe people are getting fatigued. Semantic Web 3 dot 0, fancy buzz words? I think we are a year or two away from anything drastic coming across the radar.

Any thoughts…

Weekend Tidbits and Discovery

I came across a few new interesting things this weekend. Here’s a quick overview as I’ve got a busy day and I’m stealing time right now…

Outside.in (http://outside.in/) Outside.in is an interesting example of aggregating local news and information. I discovered some new things happening in Providence, that I wasn’t aware of. It does a pretty good job of collecting different stories from different perspectives and on a variety topics, all focused around local. It does not, however, do a particularly good job facilitating an experience in Providence beyond the discussions being had on their page. Again, their revenue model seems to be based on supplying relevant content and serving your standard skyscraper ads from national brands (that don’t seem to be well targeted).

They claim to have discussions on 11,860 towns and neighborhoods on their site, but most of them seem to be large towns/cities in the Northeast / West Coast. (nothing new there). Anyway, an interesting take on local and I’m intrigued to see where they take it or what I can learn from it.

NY Times Mobile Real Estate: I noticed this ad on the back page of the Business section this morning as I was reading with my coffee. It basically allows you to text the number of a listing in the NYT to their number and it sends you back more details and a link to that listing’s mobile site. I tried it out, but the first listing I sent returned “We’re sorry but that listing is not available in NYT Mobile,” I tried it again and voila! it sent me the name of the property, the location of the property, the price, the listing agent and a link to the mobile site for that listing. The link took me a mobile site about the listing, and had every little detail I could want about the property (photos, taxes, schools, etc).

I think its a somewhat cool implementation of mobile for the NYT, however its not very out of the box. I am still tied to looking up these listing numbers either in print or on their website. A better and perhaps more useful application would be to incorporate location based services into this app and have it feed you back listings in your area. I walk to Chelsea and say, “I want to live here” and the NYT (or anyone else) tells me what is available literally in this area.

Those are my thoughts for the morning, what do you think?…

A Mobile Weekend

I spent this absolutely beautiful weekend in NYC. My college roomate’s 25 birthday party Friday night, and an afternoon and evening of exploring the upper east side with my girlfriend. Almost everything we did was facilitated by my mobile device (Verizon BlackBerry 8830). I love this phone, its my second BlackBerry and a HUGE upgrade from my last.

Regardless of the device, we used it for just about everything we did (even a bit of navigating in Central Park). On the train we read about a dozen different reviews to get a sense for what we were in for. We used its GPS functions to give us directions to the Club we went to Friday night (Azza @ 55th and Lex), after we got in the cab. Saturday, we looked up the Pope’s schedule using the browser (yes we saw him in the flesh, along with his 4 block motorcade). Then we found an excellent Brasserie on 79th Street using the Google Maps App. As we waited for our food, we looked at a Map of Central Park to figure out the best path for where we were heading (Belvedere Castle - man what a beautiful day). On our way home, we looked up Movie Showtimes.

The point of this story is that in the past 48 hours I used a mobile device to facilitate 3 transactions, and to find and research essential information that I otherwise would have had to look up prior to leaving my apartment. Each one of those was an opportunity for an advertiser to reach me, while I was interested, while I was about to make a purchasing decision, literally at that moment. How valuable would it have been to the Brasserie across the street from the one I found online? - $38. How much was it worth to Azza to get us there and not have us stop somewhere else? - way more than $38.

Why are people still so bearish about mobile? Nearly everyone in NYC has a mobile device capable of using the internet, millions of people are purchasing them everyday, and the state of Mobile in Japan and in Europe is way ahead of ours. And the Instant return for advertisers must be so appetizing to marketers.

The iPhone, BlackBerries, and all the new broadband capable mobile devices are facilitating easier access to valued information via the mobile web. Once marketers figure out how to reach this growing base of mobile users (which they are beginning to , see Amazon), its going to get hot. And quickly. Mobile has to be the next arena of growth, because everyone else is doing it.

Almost everything I do, I use my mobile device to help me do it better or faster. I read the news, blogs and email. I get directions to my appointments and meetings, I get the latest scores on demand.

There is so much that I do that I am transitioning to my phone. Remember when people started transitioning to the web? I see that happening with mobile.