We are entering into a new and critical phase of development in the mobile marketing industry. The discussion no longer centers on whether mobile fits in then marketing mix. Today we are debating where mobile fits best in the customer journey and whether marketers should craft mobile campaigns that focus on customer acquisition or retention.
According to M&S (Marks & Spencer), a leading U.K. retailer, the answer is all of the above.
Specifically, mobile has earned a place in every part of the sales cycle. From text alerts to customers on products and offers they are likely to appreciate (delivered only after customers have opted-in to receive them) to website functionality that allows them to buy what they want where they want, M&S has put mobile at the center of all they do.
In this first part of a two-part series I take a hard look at the hard reality of how mobile operators must do business in the AA era (After Apple).
Granted the App Store created an exciting (and single) marketplace for developers to create, test and sell apps to consumers. But the model also totally disintermediated operators from app revenues.
Since then mobile operators have sought to reassert themselves in the value chain by offering their own app stores, a me-too strategy borrowed from Apple that has so far failed to pay dividends for a variety of reasons.
The central role of operators in the mobile content and services value chain has been a given since the start. Initially, their biggest asset was distribution. Their access to millions - even hundreds of millions of consumers -- allowed them to call the shots and dictate the terms to providers and companies lining up to offer their content via operator portals. However, the advance of smartphones changes all the rules.
Mobile operators are now struggling to find their place in a value chain that is stacked in favor of the handset makers and OEMs that run the app stores. Sure, mobile operators can launch a competing app store. But the chances of success are limited. (In fact, we have yet to see a carrier leave its mark on the app landscape.)
From brands and agencies to Millennials and veteran observers, I encourage each to give their take on the issues and opportunities around mobile -- specifically permission-based mobile marketing. Today we take a step back and look at the Big Picture and examine the questions posed in an even bigger debate going on in the industry: what is the value chain? And, more importantly, what is the value of apps?
Who better to ask than Martin Wilson? Martin recently published a critical look at companies' obsession with delivering iPhone apps (a condition he terms iSyndrome). In it he also urges companies to think through their decision carefully because an iPhone app doesn't deliver the same value to every customer segment.
The global prepaid market is growing faster than post-paid, but winning and retaining these customers is no longer about extending plain-vanilla telephony services to people on fixed budgets. The advance of smartphones and faster 4G networks forces mobile operators to get smarter about how they offer data services (that were traditionally offered to post-paid subscribers) to everyone.
A recent poll conducted by research firm Ovum (and commissioned by Amdocs) reveals the vast majority of service providers and operators can read the writing on the wall.
Mobile commerce and shopping are fast becoming an integral part of our daily routine, a development that paves the way for online commerce giants and credit card companies to capture the lion's share of this exciting and lucrative market. Or so we think...
The explosion in mobile purchases also plays squarely in favor of mobile operator billing. In fact, operator billing may be the "missing link that allows a significant increase in commerce involving physical goods and services."
Amazon may be a little late to the party, but it's decision to launch the Amazon Appstore Developer Portal -- a new self-service tool that allows mobile application developers to join the retailer's Appstore Developer Program and submit apps for the upcoming launch of the Amazon Appstore for Android -- shows a fast-follower approach may stir up the market more than Apple and Google combined.
Read between the lines and Amazon is out to take on Android Marketplace and cut out mobile operators (by copying Apple's payment approach that allows consumers to purchase apps using a credit card stored on file, and so removes mobile operators from the revenue split altogether).
Google's decision to embrace AT&T's Direct Carrier Billing for Android users is a clear win for consumers because they can purchase apps and charge them to their mobile phone bill. But the real story is what this move means for mobile operators.
For large operators with established storefronts (like AT&T), the tie-up with Google means an increase in revenue because the carrier has effectively (and wisely) positioned itself to perform billing on behalf of a third-party storefront (this strategy is also known as BOBO). And this is in addition to the carrier's benefit from selling content on its own.
Lester Madden is third in our series of five innovators in mobile Augmented Reality (AR) stepping up to offer 2011 predictions. Lester is a hands-on developer and executive whose work (at companies including Microsoft, Symbian and Nokia) has helped catapult AR to the top of the industry agenda. Lester is currently working at mobile operator Orange.
In addition to his role in the mobile industry, Lester also blogs about trends and developments impacting AR at Augmented Planet. Some good news for mobile developers eager to get involved in mobile AR. Lester is also working on a book on the subject, and we'll have more on that project when it's ready for prime time.
People want what they want. As a result, they have come to expect – even demand – content and services in tune with their lifestyles and life stages. On mobile – the fiercely personal device we take with us everywhere – the requirement for relevancy is even greater, which is why personalization is poised to become a mobile megatrend. Put another way, personalized recommendations and schemes that effectively expose us to the content we are most likely to appreciate (content ranging from websites to marketing messages to mobile apps) are gaining traction.
One mobile operator that "gets" the strategic importance of personalization (if only to satisfy our own requirement for convenience and reduce the heavy-lifting when it comes to choosing our entertainment) is CSL, the leading mobile operator in Hong Kong with 2.6 million subscribers.
Today the popular (and viral) Five From Five series continues with mobile Augmented Reality (AR) and asks five companies/influencers across the emerging business ecosystem for their pick of hot topic and trends.
Christine Perey is more than an independent analyst; she is a leading - and passionate -- evangelist working within the industry to increase deal flow, validate business models, and promote sanity (not hype) in the nascent mobile AR space. She made a huge impression on me when she stepped up to contribute a guest column (one of the most popular on MSearchGroove, I might add) examining mobile AR evolution, use cases and the revenue streams that will help advance the industry.
We are entering into a new and critical phase of development in the mobile marketing industry. The discussion no longer centers on whether mobile fits in then marketing mix. Today we are debating where mobile fits best in the customer journey and whether marketers should craft mobile campaigns that focus on customer acquisition or retention.
