UK Mobile Retail Access via Smartphone Grew 163% in Past Year
Mobile Browsers, Rather than Apps, Drive Access to Mobile Retail Activities Across EU5
“Over the past year, online retailers enjoyed strong growth in visitation from mobile devices in Europe, largely driven by the acceleration in smartphone ownership,” said Jeremy Copp, comScore Europe vice president for mobile. “This trend represents both an opportunity and a threat for retailers. While mobile access offers retailers incremental occasions to engage with customers, it also provides customers the ability to easily compare prices at competing retailers while inside a particular retailer’s store. Retailers must get a firm handle on mobile shopping behavior if they are to effectively navigate this changing environment.”
UK, Germany, and Italy Show High Mobile Retail Activity, Buoyed by Smartphone Ownership
In addition to accessing online retail sites, mobile consumers also accessed auction sites and shopping guides on their mobile devices. Over the three month average period ending May 2011, 6.3 percent of all EU5 mobile users reported having accessed an online auction site and 5.1 percent also reported having accessed online shopping guides.
Across the EU5 markets, the UK had the highest penetration for the three mobile retail categories. Approximately one in ten mobile users in the UK (10.5 percent) reported having accessed auction sites. A similar percentage (9.2 percent) accessed online retail sites and 5.7 percent accessed shopping guides. The number of mobile users accessing online retail sites grew by 118 percent over the previous year, a rate that is even more pronounced among smartphone users (up 163 percent). The UK also displayed the most growth for users accessing auction sites (up 95 percent) and users accessing shopping guides (up 71 percent).
| Mobile Retail Activity Among Total Mobile Subscribers 3 Month Avg. Ending May 2011 Total EU5 (FR, DE, IT, ES and UK), Age 13+ Source: comScore MobiLens |
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| Penetration (%) of Mobile Subscribers | ||||||
| EU5 | France | Germany | Italy | Spain | UK | |
| Accessed Auction Sites | 6.3% | 3.6% | 6.7% | 6.0% | 4.1% | 10.5% |
| Accessed Online Retail Sites | 5.8% | 3.4% | 6.5% | 5.7% | 3.4% | 9.2% |
| Accessed Shopping Guides | 5.1% | 3.4% | 5.4% | 6.6% | 4.3% | 5.7% |
Second only to the UK, the German mobile market also displayed significant increases in users accessing auction sites (up 44 percent), users accessing online retail sites (up 45 percent) and users accessing shopping guides (up 42 percent). The growth in mobile retail activity in Germany is similarly more pronounced among the subset of smartphone users, as the number of users reporting having accessed auction sites, online retail sites or shopping guides approximately doubled in each of those categories. Such growth coincides with strong gains in smartphone ownership, which grew 63 percent in Germany and 56 percent in the UK over the past year.
| Growth in Mobile Retail Activity Penetration Among Total Mobile Subscribers and Smartphone Owners 3 Month Avg. Ending May 2011 Total EU5 (FR, DE, IT, ES and UK), Age 13+ Source: comScore MobiLens |
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| Growth (%) Among Mobile Subscribers | ||||||
| Total Mobile Audience | EU5 | France | Germany | Italy | Spain | UK |
| Accessed Auction Sites | 36% | 6% | 44% | 1% | 10% | 95% |
| Accessed Online Retail Sites | 37% | 24% | 45% | -5% | -5% | 118% |
| Accessed Shopping Guides | 31% | 20% | 42% | 10% | 21% | 71% |
| Smartphone Audience | ||||||
| Accessed Auction Sites | 76% | 51% | 100% | 13% | 35% | 141% |
| Accessed Online Retail Sites | 80% | 80% | 106% | 8% | 22% | 163% |
| Accessed Shopping Guides | 72% | 86% | 98% | 25% | 63% | 109% |
Browser Access Dominates Mobile Retail Activities
An analysis of mobile browser vs. app usage provides additional insight into the growth in mobile retail penetration. Across all markets, auction sites, online retail sites and shopping guides were accessed through a browser by a greater percentage of smartphone owners when compared to app access. Browser usage was more pronounced in France, Italy and Spain, with applications used by less than 3 percent of smartphone users in these three markets. Germany showed relatively high percentages of app access for mobile retail activities, although a larger share of smartphone owners still reported using browsers. A notable exception to this is the UK, where the percentage of smartphone owners that reported using apps to access auction sites (11.6 percent) was higher than the percentage that reported using browsers (10.0 percent).
“With mobile browsers still driving mobile retail activity in Europe, retailers hoping to capitalize on this trend should first look to develop a mobile-optimized website if they haven’t already,” said Jeremy Copp. “Apps, which often provide a more powerful and intuitive interface than browsers, will become increasingly important – especially as consumers begin to transact over their phones with greater regularity.”
| Mobile Retail Access Method Among Smartphone Owners 3 Month Avg. Ending May 2011 Total EU5 (FR, DE, IT, ES and UK), Age 13+ Source: comScore MobiLens |
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| Penetration (%) of Smartphone Owners | ||||||
| EU5 | France | Germany | Italy | Spain | UK | |
| Application Access | ||||||
| Accessed Auction Sites | 5.6% | 2.8% | 7.2% | 2.6% | 1.7% | 11.6% |
| Accessed Online Retail Sites | 4.4% | 2.6% | 6.3% | 2.3% | 1.4% | 7.9% |
| Accessed Shopping Guides | 2.5% | 1.7% | 4.6% | 2.1% | 0.9% | 3.0% |
| Browser Access | ||||||
| Accessed Auction Sites | 6.6% | 4.2% | 8.5% | 5.4% | 3.9% | 10.0% |
| Accessed Online Retail Sites | 7.2% | 4.4% | 9.4% | 5.1% | 3.5% | 11.8% |
| Accessed Shopping Guides | 6.2% | 4.8% | 7.3% | 6.2% | 4.6% | 7.5% |
May 2011 European Mobile Benchmark Data
The table below shows comScore’s May 2011 mobile benchmark data, including a review of mobile consumption behaviors and device penetration for the five EU countries under measurement. These benchmarks are published by comScore to provide the most up-to-date snapshot of the mobile industry. Further information on these benchmarks, and other data included above, can be provided upon request.
| Mobile Benchmark Data for the European Market 3 Month Avg. Ending May 2011 Total EU5 (UK, DE, FR, ES and IT), Age 13+ Source: comScore MobiLens |
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| Reach (%) of Mobile Subscribers | ||||||
| EU5 | France | Germany | Italy | Spain | UK | |
| Sent Text Message | 82.4% | 83.2% | 79.1% | 79.1% | 79.5% | 90.5% |
| Used Application (excl. pre-installed) | 31.3% | 28.2% | 27.6% | 29.3% | 30.8% | 40.9% |
| Used Browser | 31.6% | 31.6% | 25.4% | 27.8% | 29.6% | 44.0% |
| Listened to Music | 25.9% | 23.1% | 26.7% | 23.8% | 32.4% | 25.2% |
| Accessed Social Networking Site or Blog | 20.7% | 19.9% | 14.6% | 18.9% | 18.8% | 31.6% |
| Accessed News | 16.1% | 15.4% | 13.5% | 14.8% | 12.5% | 23.9% |
| Played Games | 26.2% | 15.2% | 24.3% | 30.7% | 28.6% | 32.8% |
| Used Smartphone | 36.0% | 31.5% | 29.4% | 38.4% | 40.8% | 41.9% |
>> Full Release : HERE
Leading independent Wine Retailer goes mobile
Leading independent Wine Retailer goes mobile
Mobile specialist opens up the mobile channel for the retail sector
London, UK, 27th July, 2011 – Cheshire based company, Spirited Wines (mobile site: m.spiritedwines.co.uk) is the first wine merchant to launch the new and innovative mobile marketing solution developed by the leading mobile marketing and services provider, Mobileweb Company. Specifically designed for retailers, the m.Discovery platform will be used to marketing each of Spirited Wines’ individual UK stores and position the Spirited Wines brand with prominence in front of consumers on leading mobile search engines.
Over 22 million people in the UK used their mobile to browse mobile sites in March 2011, with a staggering 6.8 million making multiple visits to retailers. With retail related searches from mobile devices having soared by 216% over the past year, each month there are literally hundreds of thousands of searches for brands, products and individual stores. The relatively poor level of content optimised for mobile means that many largely go unsatisfied or deliver a bad consumer experience.
This presents a major opportunity for Retailers. The unique m.Discovery platform can rapidly create a market advantage for any retail brand and their individual stores. A mobile experience can be created tailored to individual stores in a way that is guaranteed to display properly and work on almost any mobile device and deliver a great customer experience.
The way the platform optimises, indexes and disseminates content supports discovery by search engines, which means a retailer’s brand and its individual stores can quickly gain prominence in search results and start to engage more customers.
Benoit Thouvenin, Managing Director, of Spirited Wines said, “With more consumers using mobile as a key way to find business details it is essential that we can position our brand effectively on mobile search engines and deliver content that is quick and easy to view on any mobile device. The m.Discovery platform is the perfect solution and has been extremely simple to integrate into our business”.
Martin Wilson, Managing Director, of Mobileweb Company said, “We are proud of the fully managed solution we have delivered for Spirited Wines and look forward to the potential to roll out to other leading companies. The ‘m.Discovery’ platform has been specifically designed to support retailers market their businesses and deliver real value from the mobile environment”.
For any Retailer – from small independent businesses to large store operations – m.Discovery platform can be deployed in a matter of days and start to make a significant difference almost immediately.
>> Full Release: Press Release – Spirited Wines – 27 July 2011
Coverage:
Mobile becomes essential part of the retail mix
The increasingly valuable role of mobile for the retail sector has yet again been demonstrated. The latest quarterly findings from the British Retail Consortium (BRC) and Google has show that the 27% increase seen in total retail searches in the second quarter of 2011 has largely been driven by mobile.
Mobile searches linked to retail have soared 216% in just a year, in the second quarter of 2011 searches for multi-channel retailers have grow some 14% as consumers clearly look for more convenient ways to shop and potentially more choice.
Retailers can no longer afford to ignore the potential of mobile – each month there are literally hundreds of thousands of searches for brands, products and individual stores. Without question mobile represents a huge strategic opportunity for the majority of retailers. That said, very few appear to be progressing a robust mobile strategy. The focus is wrong.
For retailers, mobile strategy should not just be about Apps or Mobile web. Focus should be on engagement and for many driving store footfall, as that is where most of their revenue comes from or through. Building direct traffic is valuable, but more importantly significant value can be delivered through aggressively targeting key traffic sources to extend reach and deliver indirect traffic to the brand.
If retailers react quickly there is a real opportunity for to create significant brand presence on key traffic mobile sources by using their inventory in a smart way. We are in the process of implementing our m.Discovery platform for a number of clients to do exactly that.
Mobile for Retail
Branding, Awareness and Customer Engagement
Download whitepaper >> Mobile for Retail 2011
As consumer use of the mobile web and mobile search continues to develop rapidly, will 2011 be the year retailers realise a mobile presence is no longer an option, but an essential element in the multi-channel mix? We look to reveal how retailers can really deliver value by including mobile as part of the marketing mix.
With UK consumers more frequently turning to their mobile device as a key information source and point of purchase, now is the time for retailers to ensure they understand the ways in which the channel can build brand awareness, engage consumers and deliver real business value.
Research conducted by Google and the British Retail Consortium (BRC) suggests that mobile for retail has reached a tipping point. In the first quarter of 2011, mobile search increased by 29% year-on-year, while mobile retail-related search traffic soared by 180%. Increased choice of advanced devices, lower prices and more affordable data options are all key drivers in the new wave of mobile web adoption and its rapidly growing usage.
In the UK nearly 22 million people used their handsets to browse mobile sites in March 2011, with a staggering 6.8 million making multiple visits to retailers, according to online market research company comScore.
Many retailers are failing to take advantage. A survey last year carried out by the Internet Advertising Bureau (IAB) found that only four of the top 20 most frequently visited UK retailer websites had mobile-optimised sites. Elsewhere just 3% of businesses have an online presence that can be effectively viewed on a mobile – even a ‘Smartphone’.
Considering the importance and investment that many retailers place on their brand and image, the majority must surely be unaware of the way they are being presented to the mobile audience. The experience can only be described as extremely poor and potentially damaging to the brand.
What should brands be doing? Keep it simple: think mobile customer and what they may actually want. When consumers are using mobile their needs are typically different; immediacy is often important and an actionable outcome usually a prerequisite.
Managing and presenting content optimised for mobile and that works on any device should be a primary focus. Retailers need to take responsibility for the way their brand is being presented and what is presented – an appealing description for the search engines, landing page content relevant and up-to-date, and features that work.
It is not difficult to identify the mobile device and ensure the content and features are displayed properly, are easily located, a ‘clickable’ size and fully functional.
For most retailers, more focus should be placed on mobile web – getting the basics right and creating a foundation from which they can build. Mobile web will reach the mass market and done well can deliver a great brand and customer experience.
Once the right web presence has been created the next challenge is to gain visibility and get consumers to visit.
Get in front of the consumer
It is unlikely that consumers will come directly in their droves. Application stores are a difficult way to gain cut-through but mobile advertising can deliver value if done well and targeting is right.
Key traffic sources such as search engines represent powerful vehicles to increase brand awareness and engage consumers.
Mobile search is very different to desktop, prominence rules are not the same and mobile optimised content has influence. Using a retailer’s assets – branch network, brands, and product and service portfolio – in a smart way it is possible to create a significant footprint, deliver reach and provide increased brand visibility.
Optimising, tagging and indexing the site and other relevant content for mobile are important. Done well, your site, brand and products will achieve prominence in search results, getting in front of customers and delivering competitive advantage.
Well created and optimised mobile sites are recognised by search engines. A search engine displaying a mobile symbol next to a result significantly raises consumer confidence and is shown to increase click-through performance.
When a consumer has arrived at your site the next challenge is engagement, turning consumers into customers.
Delivering customer value
The priority is delivering relevant and up-to-date content, ensuring it displays well and quickly. Pages should be rendered to suit the screen without excessive scrolling and content light – customers will pull more information if they feel they need it.
Making consumers hunt around for information will put many off. If they don’t find what they want first time, it is unlikely they will come back.
Those searching for information on local businesses or services are highly likely to take action. A third will typically make a call, 20% request a map, and opening hours are often important. Features should be easy to locate and simple to use. Contact details for example are too often buried, frustrating consumers that need a retailer’s address or to call them for assistance.
For most retailers, the focus should be on driving footfall, delivering a high quality user-experience and converting visits into sales. The site and content should be constructed around these primary objectives.
Meet the needs of consumers and they will engage and turn in to customers. Get this right and mobile can rapidly start to deliver real and measureable returns.
Summary
Mobile represents a significant opportunity for many retailers and has the potential to deliver competitive advantage – now is the time to start investing.
For many, the challenge will be to get the basics right, create the right foundation and stay focused.
Key elements retailers should consider when thinking mobile include:
- Manage the brand and experience
- Focus on consumer needs
- Deliver relevant and up-to-date content
- Ensure functionality on any mobile device
- Develop a foundation to build upon
- Use proven channels to get in front of a consumer
- Track activity to help improve performance and results
Bringing on-board a strategic partner that really understands mobile, can guide through the challenges and help prioritise investment, is likely to deliver the best results for many retailers.
There are market-leading solutions, like the Mobileweb Company m.Discovery platform, specifically designed to support retailers to take advantage of the opportunities that mobile presents.
Mobileweb Company will be creating a series of white papers that will cover topics core to delivering value from mobile, including building a mobile strategy, mobile marketing, customer loyalty, applications and m-commerce.
For more information on future white papers and the Mobileweb Company contact: retail@mobileweb.co.uk
Download whitepaper >> Mobile for Retail 2011
Mobile: Where Directory Providers can really steal a march
Yesterday, I was talking to an ex-Yell executive who now supports a number of leading Directory Providers (YPs) on digital strategy. Mobile quickly became the core topic of conversation – without question mobile represents a huge strategic opportunity for the majority of Directory Providers. That said, very few appear to be progressing a robust mobile strategy. The focus is wrong.
For Directory Providers, mobile strategy should not just be about Apps or Mobile web. Focus should be on engagement, building direct traffic and but more importantly aggressively targeting key traffic sources to deliver indirect traffic.
In the fixed line environment many Directory Providers find themselves today having to make significant investment in literally buying traffic to deliver value to their customers. The way most are progressing mobile today they will find themselves having to invest in exactly the same way in mobile in a relatively short period of time. This does not have to be the case.
When thinking mobile, complex elements like mobile domain names and bespoke websites are not required. Approach can and should be simple, based around existing core data assets and processes. For the majority of Directory Providers a mobile solution that creates a powerful presence for all customers could be implemented in days and start to deliver value in just a few weeks. Creating the perfect foundation from which to build.
If Directory Providers react quickly there is a real opportunity for to create significant brand presence on key traffic mobile sources by using their inventory in a smart way. We are in the process of implementing our m.Discovery platform for one of the world’s leading Directory providers to do exactly that.
Retail advantage of mobile
Mobile has the potential to tap major opportunities for retail Brands, marketers need to act now.
Research conducted by Google and the British Retail Consortium (BRC), suggests that mobile for retail specifically has reached a tipping point. In the first quarter of 2011, mobile search increased by 29 per cent year-on-year; while mobile retail related search traffic soared by 180 per cent - audience proven.
From department to DIY stores to computers & electronics retailers to luxury fashion brands, mobile can deliver real value. Searches from mobile devices for brands such as Primark, John Lewis, Debenhams, New Look, Mothercare, B&Q, Currys, Gieves and Hawkes and Burberry in the UK number tens and hundreds of thousands each month – need proven.
Before rushing out and starting to build an application or m-commerce platform – Pause!
Look at
- the market, audience and their need;
- your business objectives;
- getting a supplier who understands mobile and has a proven track record.
For many Retail organisations the goal is likely to be linked to driving brand awareness and increasing footfall. Mobile is perfectly placed to deliver both – and rapidly. Over 1/3 of all Google mobile searches are linked to a location, typically a business that can service a consumer need. Mobile users searching for information on local businesses or services were also highly likely to take action. Consumers are typically looking to engage with the business, over a 1/3 call the business and some 20% request a map. Remember, if they go to the trouble of searching using their mobile they want something (55%, likely to go on and make a purchase, or at least a visit the store).
A recent survey by Tealeaf, suggested that just 9% of respondents believed that the customer experience offered on mobile was good - two thirds saying, if they experienced a problem they would be less likely to buy from the same company. Google has also recently stated that 79% of their largest advertisers do not have an online presence that can be viewed on a mobile device – even a Smartphone, yet mobile searches already account for some 18% of all of Google’s search traffic. Mobile is very different than Desktop, many organisations fail to recognise the consumer’s requirements are typically very different.
How can retailers really get ahead and deliver value from mobile?
Get in front of the consumer when they are looking for you and the type of products you sell.
- Discovery is key – target key traffic sources, use branch and product inventory to maximise presence
- Focus on engagement – make sure content is relevant and up to date
- Deliver a good experience – keep it simple and give the consumer what they are looking for
The time is right for retail Brands to start to build a managed mobile presence. Brands should start by creating a foundation from which they can build. The initial investment does not have to be high – the return is easy to prove.
The advanced m.Discovery platform, from the Mobileweb Company, is the perfect tool to deliver search prominence and engage customers. For any retail Brand – m.discovery can be deployed in a matter of days and start to make a significant difference in less than 6 weeks.
Most advanced mobile optimisation platform launches
Mobile specialist set to revolutionise mobile marketing for brands
Mobileweb Company, a leading mobile marketing and services provider, today – Tuesday 24th May – announced the launch of the most advanced mobile optimisation platform of its kind – m.Discovery.
Specifically designed for brands with multiple products, services or branches, m.Discovery is a fully managed technology platform that delivers optimised content that works on almost all mobile devices. m.Discovery can create an individual and tailored presence for a brand’s products and branches, then, using advanced optimisation and indexing techniques, delivers prominence on key traffic sources, such as Google. m.Discovery supports dynamic content updates, which means that specific products, services and offers can be easily and quickly promoted, and with all activity tracked and reported the value delivered is easily demonstrated.
Today, over 19 million[i] people in the UK use the mobile Internet each month and almost a quarter of total time spent online is now via a mobile device. Yet less than 3%[ii] of organisations have an online presence that can be effectively viewed on a mobile device - even a “Smartphone”. The majority of websites are not compatible with mobile. Most don’t recognise what a user wants, are often full of images that don’t display, contain too much content and include links and features that don’t work – consumer experience is typically very poor and potentially damaging to a brand. m.Discovery overcomes these issues by delivering an experience that works on almost any mobile device, enabling a marketer to really take control of their brand.
Managing Director, Martin Wilson said: “m.Discovery is a leading edge marketing tool specifically designed to support brands deliver real value from the mobile environment. We provide a fully managed solution, for one purpose – to position a brand with prominence on search engines and other key traffic sources to attract new customers. Our unique approach will ensure that we support a brand in delivering powerful business results … and rapidly prove the valuable role of mobile.
“Organisations can no longer afford to ignore the opportunities a strategic mobile optimisation programme can provide, and I’m proud to lead a business committed to helping brands enhance their digital marketing activity, effectively engage with customers and deliver real value from the mobile channel”.
For any brand – from a high street store, fast food outlet, restaurant or hotel chain, DIY or furniture store, car or tyre and exhaust dealership, estate agent, to a directory provider – m.Discovery platform can be deployed in a matter of days and start to make a significant difference in less than 6 weeks.
>> Full Release: Press Release – m.Discovery platform launches – May 2011
Coverage:
[i] Ofcom International Communications Market Report 2010
[ii] Google statistics 2011 (all other non-referenced statistics)
Mobile Search essential for Brand presence
As mobile Internet becomes part of everyday life, mobile habits are changing. Mobile Search, one of the top online activities, is becoming more important for both users and advertisers. Google recently stated, Mobile Search is growing at 8 to 9 time faster than desktop search did and now accounts for around 18% of all search activity.
That said, mobile is very different to desktop search. According to research from Google and Ipsos OTX MediaCT, while search on the desktop web might indicate the very early stages of the purchase process those searching via mobile are typically looking for immediately useful information – likely for a purchase, or at least a store visit (55% of respondents).
Over a 1/3 of all mobile searches are linked to a location, typically a business. Yet less than 3% of businesses have an online presence that can be effectively viewed on a mobile device - even a ‘Smartphone’.
Overall, more than half of mobile users made a purchase after their mobile search, whether in a store, online or via their phone. Google and the British Retail Consortium have recently released figures which show an explosion in mobile retail search. Multi-channel retailers reported a 42% year-on-year increase in searches, compared with 19% for pure online retailers. Mobile searches were also found to account for 11% of total retail searches over the last quarter.
Mobile users searching for information on local businesses or services were also highly likely to take action. A majority of searchers visited the business’ website, got directions, or called or visited the business. Customer experience is of key importance with consumers demanding excellence and responsiveness from retailers. Just one problem can lead to consumers switching to another retailer to make their purchase so how can retailers make a number of channels work seamlessly together and add to the overall customer experience?
This clearly shows the value for a Brand to build a managed mobile presence. The advanced m.Discovery platform, from the Mobileweb Company, is the perfect tool to deliver search prominence and engage customers.
For any brand – from a high street store, fast food outlet, restaurant or hotel chain, DIY or furniture store, car or tyre and exhaust dealership, estate agent, to a directory provider – m.discovery can be deployed in a matter of days and start to make a significant difference in less than 6 weeks.
m.discovery is a fully managed technology platform that can enable a brand to prominently position itself in front of a mass mobile audience and drive new customers. For the first time, a brand owner has a powerful and advanced solution, to help get the customers they really want from the mobile environment.
Reality of MOBILE, not the BBC APPRENTICE version
Written by Martin Wilson
As criticism reverberates around the industry following last night’s BBC Apprentice TV show – two teams of wannabe entrepreneurs were challenged to come up with a bright idea for a mobile application, get it developed and taken to market in 24 hours. The winning team, those who achieved highest number of App downloads.
Key criticism seems to be the 24 hour element. Not from me though.
Can it be done? YES, to some extent. The TV show proved the point, it is possible. What it did not convey is the reality of mobile and the numerous challenges. Like – Why was there no iPhone application?
I am not going to analyse the Applications – there is no real value or point. The Application is actually almost totally irrelevant. I believe that Grapple – the agency behind the application development – did a good job. I would have no hesitation recommending them to a client if a application route was right.
My key criticism, the programme will get many who watched thinking applications are the way forward in mobile. The reality is that they are not! Many organisations have invested significant sums in App development, most with very little to show for it – the investment a disaster.
What the TV show demonstrated, the key component in mobile is Discovery – reaching the consumer. The boys team failed as they did not realise this, they simply achieved less reach and therefore fewer downloads.
What the TV show did not demonstrate, mobile is far greater than applications – engaging the consumer. The show failed to demonstrate any value of mobile as a marketing channel, it simply showed a couple of gimmick apps with little purpose.
Why applications are not the way forward for many?
REACH…
Consider the newest mobile numbers from comScore. In the U.K. the iPhone makes up about 4 percent of mobile devices in circulation (that’s if we count all the legacy Apple devices in the hands of users as well). Android has an even small piece of the pie. In fact, of mobile devices; some 70 percent accessing the mobile Web are not smartphones at all (!) Some 18 % of Google searches are now from mobiles – although mobile commands a very different approach to desktop – key traffic sources like Google is where any organisation will gain the greatest reach and is largely without barriers.
Mobile web should be a primary focus for mobile organisations, not Apps.
EFFORT…
Most applications take a lot of effort and time to deliver. So how did the agency manage to develop an Application so quickly? Basically because they were simple – they were just ‘Soundboard’ Apps. They only had to download and run. They did not need to use any of the phones features to deliver service value. It only had to work on a handful of operating systems and devices – Blackberry, Android and Nokia (not even iPhone).
The ongoing cost of developing and updating Applications few consider at the outset.
MARKETING…
This was not touched upon. Why no iPhone? Because Apple said NO to pushing through a release quickly on their App store, with some very nice talk from the agency the other App stores agreed to oblige and push them through quickly. There is no control over the marketing and distribution. This becomes a serious challenge if you wish to ever update your Application.
You really don’t have a say in the process and the time it takes.
Mobile applications can be a real head ache and often a complete distraction. Organisations need to focus on opening up the channel opportunity, not tactical delivery and actual devices.
Having been personally involved in supporting the development, delivery and launch of mobile services for a number of organisations around the world – including Yell, DexOne and Trudon, to name a few – I know how difficult it is to be focused on what counts when companies and press everywhere are caught up in the search for ‘the next big thing.’ (Indeed, how can we even consider another technology leap as long as we haven’t solved usability, monetisation and the dozens of fundamental issues?)
Take out for brands.
The end-game is all about positioning. Mobile has already earned a centrepiece role in our everyday lives and now organisations are challenged to give mobile that same significance in their strategies. To achieve this, organisations must understand that mobile is not an app or a one-off solution. Then – armed with this knowledge – they must execute strategies that deliver positive results.
Success requires focus, balance and a big-picture view.
Mobile advertising in the UK soars by 116% in one year
Published 22nd March 2011
Internet Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) today released their third annual mobile study, which showed that mobile advertising in the United Kingdom has soared in the last year.
Mobile advertising has experienced a staggering 116% year on year growth (on a like for like basis), up from 32% growth in 2009. Advertisers spent £83 million[1] on mobile advertising in 2010, according to the study.
The report also showed Smartphone adoption isn’t the only driver for the growth in spend, illustrating the changing face of modern mobile usage.
Key findings of the report released today include:
- Advertisers’ spend on search on mobile has nearly tripled from 2009, rising from £20.2m to £54.9m
- Display advertising in the form of banner ads, text links, and tenancies has climbed 62% to £23.7m, from £14.6m in 2009
Expenditure on Mobile advertising formats
- Search – £54.9m, up from £20.2m in 2009, a growth of 172%
- Display advertising – £28.1m, up from £17.4m in 2009, a growth of 61%
Market Share
- Search continues to dominate with a market share of 66% (54% in 2009)
- Display advertising (banners and text) – market share of 29% (39% in 2009)
- Other formats (tenancies, pre/post roll, SMS and other) – market share is 5% (7% in 2009)
Key drivers and insights
- In 2008, the year records began, UK mobile advertising accounted for £28.6m, by 2009 this had increased 32% to £37.6m
- There are 23.3m mobile Internet users in the UK (Dec 2010) – up 21% year-on-year[2], UK Smartphone ownership in 2010 was up 58% to 36% of UK mobile owners
- In December 2010, 6.3 billion minutes have been spent browsing the mobile internet[3]
- Mobile media users pick up their phone 18 times a day to consume content via apps/browser[4]
Mobileweb Company comment
“Although Smartphones continue to be a key driver of mobile Internet activity and account for high percentage of usage, the majority and therefore mass of active mobile Internet users do not own or use Smartphones to access mobile services.“
“Mobile advertising is firmly established, the patterns of growth in spend are similar to fixed online advertising in its early stages. However, mobile is already showing signs of a more rapid growth potential than that seen in the fixed online environment as more organisations introduce mobile as part of the marketing mix.”
[1] Figure does not include SMS/MMS production and delivery costs, and other mobile marketing revenues like application production.
[2] Comscore December 2010
[3] Comscore GSMA MMM, 2010
[4] Mobile in the Media Day, IAB Research Jan 2011