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Brands and agencies disconnect on importance of mobile

Millennial Media just launched a study confirming that mobile is becoming an integral part of marketing campaigns. While for 2009, the majority spent less than $100k on mobile, the largest spending category is now $100-249k.  This is still not a huge number, but it is interesting to see that there is a 20% increase in the agencies that will spend $1-5 million, which is significant:

Mobile spending by agencies

The agencies that responded to the survey had barely gotten their feet wet in mobile, with the majority having done less than 10 projects. With the extensive growth that is predicted, this goes to show that the agencies have had positive experiences and will spend more, while some are embracing mobile fully as a dominant channel.

Here is a survey result that I found puzzling:

Reasons for not doing mobile

With the number of mobile marketing specialists available, lack of internal resources does not really sound like a good excuse. What the survey points to earlier, is that technical complexity is a barrier for adoption, and it perhaps this complexity (or fear of it), that is the main reason why a lot of agencies are reluctant to get involved (i.e. the 19.4% is probably quite higher). Also, I suspect if “The client has not asked for it” was a possible option, you would see a different distribution.  As an agency though, this is a dangerous excuse – and you should really start reaching out to mobile experts to see what they can do for your agency and your clients right now, or at some point you will be caught out when your client demands a mobile component in their campaigns.  If you look at what brands are thinking about for 2010, you will see that perhaps as much of a quarter of brands want to spend $5m or more:

Brands spending on mobile

Compare this to the first graph where only 2.6% of agencies expect to spend this much, there definitely seem to be a disconnect between what brands want and what agencies expect. Brands also mentioned that in 88% of the cases, they bring up mobile in strategy sessions. Agencies, you are hereby warned.

Posted in Mobile Marketing.

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Is your phone a broadband hog or wireless bandit?

Following up my article on the predicted explosion of mobile data, Wedbush has again looked into the problems that are about to occur. What they found was that certain smarthphone devices (or their owners rather) used significantly more data than other smartphone devices:

Data devices by bandwidth consumption

So if you own a “broadband hog”, “wireless hummer” or “bandit devices”, are you to blame when the rest of us cannot access our email on our phone?  Undoubtedly devices like the iPhone entices people to use content, but it was interesting to see that owners of devices which do not necessarily have the great content experience built around them like the iPhone does still use their phone a lot for data.

Wedbush again points to Cisco research that assumes that a lot of traffic (64%) will be driven by mobile video. Again, it remains to be seen whether there will be consistent demand from mobile video outside of sporting events. Yes, boredom killers such as watching YouTube will no doubt be popular, but I doubt YouTube will manage to be as dominant on mobile as they may be online simply because of a different viewer use case.

Wedbush also argues that network upgrades will hurt more than help, as increased bandwidth will only serve to increase demand.  In my opinion, this is a bit of a simplistic view.  There are too many factors with regards to wireless content that need to be in place for usage to happen. Some of them are compelling content, proper business models for content owners, ease of discovery, availability of flat rate data plans, etc – and bandwidth accessibility is only one component (albeit a crucial one).

The research by Wedbush is a good step. I’d like to see more of this research and actually try to link this not only to device types but the other factors that enable mobile content uptake and usage as mentioned above.

Posted in The Business of Mobile.

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Symbian: Failure or sleeping giant?

The Twitter world is all excited about the new presentation by Morgan Stanley’s Mary Meeker. I must say hearing her name brought up fond memories of the the pre-dot.com bust period, where she was heralded as one of the main prophet of things to come. I am glad she is back, because the data she has put together on the mobile revolution is excellent.  Besides confirming the tremendous growth, one chart really struck me:

Mobile internet usage by Smartphone OS

(Source: Morgan Stanley, AdMob, Gartner, Net Applications)

The chart shows that iPhone users are heavy mobile internet users, which of course is no surprise.  Through a great UI and a complete easy to use eco-system, they have shown the way.  But take a look at Symbian, the smartphone that was not even recognized as a smartphone by Microsoft, which has a 49% market share yet only accounts for 7% of page views.  Nokia represents the largest proponent and maker of Symbian devices by far – so the question is can the complete lack or interest of Symbian users in mobile data be attributed to a total failure by Nokia?  After all, Nokia has tried with Club Nokia (B2C portal which is now gone), Tradepoint (developer program that no longer exists), Comes With Music and Ovi to stimulate data, but all initiatives have arguable failed. But given Nokia’s tremendous market power and commitment to Symbian, and the fact that they should theoretically easily be able to identify why the iPhone is so successful and be able to copy parts of the success ingredients – does this make Symbian the sleeping giant in mobile data?  Tough call…

Posted in The Business of Mobile.

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