Mobile apps advertising will rocket to more than $8 billion in five years, according to a recent Borrell Associates forecast. Part of this comes from the growth in receiving mobile ad messaging across a broader range of electronic devices, according to the Williamsburg, VA-based media researcher. Right now, Borrell says one in every five computing devices can receive mobile app advertising in 2010, but that this will triple to three in five devices by 2015. Fifteen percent of the $8 billion business, or $1.2 billion, will come from local advertising. This year will end with $305 million in mobile app advertising, which more than doubles in 2011 to $685 million. Borrell also notes that the average smartphone has 22 mobile apps -- but says only 5% of these apps stay on the phone after six months. Some 80% of mobile apps are free; but of those that are paid, Borrell says, consumers have spent a collective $1.5 billion.
PepsiCo this summer tapped 10 startup companies to be part of a new incubator program called PepsiCo10. Soon, those partnerships will start bearing fruit with pilot programs for PepsiCo's range of beverage and CPG brands. The program is designed as a new conduit for digital R&D within PepsiCo. The 10 firms in four "buckets" (place-based and retail experiential, mobile marketing, social and digital marketing, and digital games) run the gamut from mobile coupons to firms that are developing gaming platforms for consumers at retail locations, and social networking platforms that bring consumers together around common interests, such as music, TV and sports. Overseeing pilot programs are global venture firm Highland Capital Partners; social-media publication Mashable; OMD Ignition Factory; TracyLocke; and Weber Shandwick. As well as some bright lights at Pepsi. Marketing Daily spoke with Seth Kaufman, director of media strategy and investment for PepsiCo North America Beverages. Q: As part of this program you started with around 500 firms and got down to 10. That seems like a metaphor for the mind-boggling array of media platforms and tools out there for doing different new-media campaigns. How do you decide when to say "yes"?A: You have to acknowledge that you are not going to have it all figured out and understand the platforms. Once you realize that, you focus on what you can see. What are some emerging platforms? The other piece is flexibility and agility to react in real-time to change. Our approach is to partner in different ways as the landscape changes. Structurally, we have also changed to do that better. We have consumer engagement groups in beverage marketing, for instance, that stand outside of the brand team. Within the media budget we have a bucket of money carved out that was for innovation and technology. You have to see around the corner, so much of this -- doing it right and connecting with consumers -- knows what's next. Q: Why take the time and effort to cultivate untested companies in the first place?A: This is a very different approach, bringing young entrepreneurs and partnering with them to help them create a sustainable business model. It's about getting involved in innovation, not just putting our name on something. In general, our approach is finding ways of adding value to consumer experience rather than just develop advertising models. We are trying to add value. We are also trying to inspire new thinking and innovation. So I think it works not only to cultivate great platforms but also to find new ways to connect consumers. Q: How did you winnow down the number of competing firms?A: They were chosen on a few criteria. One was talent, and to be quite frank when we had a great two-day summit where twenty finalists were able to present to the whole organization, you could tell who the leading thinkers were. Second was the platform or technology that we felt fulfilled or solved a gap in the marketplace. Third was something we felt we could be commercialized quickly, "shovel ready," so to speak. If you think about it, we in the ad industry often have a tendency to talk a lot about what's changing and not do a lot about it. We didn't want to just talk about needing to partner with brand new startups. We wanted to choose ones where could get pilot programs fairly quickly. Ultimately they turn from pilot programs to part of everyday media programs. By then we can tell if they add value. The vast differences between the final ten illustrates how we are thinking about this. Miso (a social platform that allows users to "check-in" to their favorite television shows to earn points and unlock virtual badges, share what they are watching and see what friends are viewing, and engage with content throughout the course of a program) is basically a second-screen experience. If you think about consumer multitasking, arguably one of the biggest challenges facing advertisers, Miso takes the TV experience, puts it on a digital platform to make it social in a way that actually takes advantage of multitasking. There is a great opportunity there to become part of the equation when consumers engage in new content, and to add value to that multitasking experience. On the other hand, a company like Tongal (online platform that combines crowd-sourcing and games to harvest content from a worldwide community of creative types for campaign concepts, taglines, slogans, pitches, commercials, music videos, etc.) is not about solving a media problem, but recognizing the fact that as the consumer market fragments we have to reach smaller groups of consumers, we have to have more and more messages relevant to them. A company like AisleBuyer adds value to consumers when they are actively at retail. If I can find a way to engage them at the moment of truth, the power is enormous. Q: Is this going to go beyond ten firms ultimately? A: We are always obviously looking for new technology and emerging platforms. This is not a program that says 'We will only work with 10 firms.' It was a way to fast-track and put resources against that in a big way. We might do this every year or twice a year. PepsiCo10 is just a beginning. Q: What have you gotten out of the process so far?A: The two-day summit in and of itself was worth the effort. We brought in our whole marketing organization [from all consumer divisions], agency partners and experts in the field. We had those four buckets -- place-based, mobile, social and digital -- and for digital video, for instance, we brought in Blip TV to talk about how they had succeeded. So these competitive firms met leaders who had succeeded in the field. We just had great dialogue, learnings and questions. Personally, I walked out inspired to think about the landscape differently.
ABC and Nielsen have linked on an initiative to make the iPad part of the "live" TV viewing experience. While tuning into the new ABC drama "My Generation," iPad users can simultaneously engage with content related -- not just to the show, but what's happening on the TV screen right then. The propeller is a "My Generation" sync app that uses a combination of iPad and Nielsen technologies to beam signals from the TV to the device, allowing real-time interaction. For example: Character X begins to play a pivotal role in a scene; viewers can check out the character's bio. "My Generation" premieres on ABC on Sept. 23 and focuses on a collection of friends who graduated high school together and then return home a decade later, somewhat bowed by life's challenges. The iPad syncing while viewing is accessible even if the viewer watches the show in time-shifted mode. Albert Cheng, the executive vice president of digital media at Disney/ ABC, stated that the screen-cum-screen system offers expanded opportunities for advertisers, and those on-screen could run companion promotions on the iPad. Nielsen's system for ratings collection -- where it places what's known as audio watermarks in shows -- has a derivative application allowing "synch-to-broadcast" apps, permitting mobile devices to detect signals. It was developed as part of a joint venture with Digimarc, which has expertise in delivering wireless content. The "My Generation" opportunity is only available on the iPad. Nielsen, however, is developing a next-generation of watermarking technology that will allow similar syncing with other mobile devices sometime next year. Programmers pay it a licensing fee for use of what's tabbed the "Media-Sync Platform," opening up a new revenue stream. ABC is trying to tap into what media companies believe is an increasing hunger in a low-attention-span society for dual engagement while watching TV -- especially since many viewers sit on their couch with a mobile device. During the Olympics, NBC has said it found reams of viewers were prompted to seek more information about an athlete, a little-known country, maybe watch a germane video, etc. -- tapping into a vault of stored content. But iPad's "syncing" technology -- tabbed as an "intuitive interface" -- goes a step further. It can offer polls, quizzes, behind-the-scenes information and social media-sharing opportunities just as the related drama unfolds. While ABC can gain some insight into how viewers interact with wireless and computers while watching its shows, Nielsen can experiment with new measurement programs related to simultaneous consumption. ABC may also take away some insight into what drives TV viewers to other platforms, be it on-air spots or other promotions. The app is free to download on the App Store. A video about it is on ABC.com's page for "My Generation."
Yahoo previewed features and functions Thursday scheduled for release this fall across its network of sites. During a product demonstration at its headquarters, the Sunnyvale, Calif. technology company focused on search, news and entertainment running on a variety of devices, including Apple's iPad. The new design gives Twitter a place on Yahoo, and lets users import Facebook contents into Yahoo Mail. Those who find content on the Yahoo site will have an option to share it via their Twitter feed. Yahoo's network of sites will integrate social, rather than try to reinvent the social network. Rolling out on the search engine, an accordion design will allow Yahoo searchers to query broad keyword terms and expand or contract the results by clicking on a link. The tabs will serve up Twitter tweets, videos, events and more. The goal to reduce the footprint on the search page aims to give searchers answers as quickly as possible, according to Shashi Seth, Yahoo's senior vice president of search products. Fending questions related to handing off search and paid-search advertising to Microsoft Bing, Seth says it allows Yahoo engineers to shift the focus from traditional back-end stuff like crawl and index for relevance in search results to what he calls "the next generation of search." It's not about cosmetic changes to the way Yahoo Search looks. In the next three years, search will not look similar to how it appears today, Seth says. In fact, he would argue the product three years from now will completely change the landscape for search and content. Yahoo has been gaining U.S. search market share. August search market share numbers from comScore out late Wednesday reveal gains for the second consecutive month -- increasing to 21%, up from 20%, sequentially. Yahoo is trying to take the science and technology that it once applied to the back end and bring it to the forefront, rethinking search entirely. Today's sneak peek provides the first step in that direction. When asked what Yahoo will look like in three years, Yahoo's Chief Product Officer Blake Irving told attendees "a global series of Web experiences across a variety of devices that gives people what they want." That means connecting people with content, as well as giving advertisers the ability to personalize and target ads. Accomplishing that means taking advantage of signals from user-generated content that provides insight into the way people think, yet retaining awareness of privacy issues and what people want to share. This method to target ads more precisely becomes one of several new functions built into modules that Yahoo can "plop" into a variety of places across its network of sites. The technology allows Yahoo to customize the experience for each person who searches on the site. Cloud computing also will help Yahoo manage the network traffic and Yahoo Mail, which will help deliver an even faster experience. Yahoo pledged the release of a faster and better mail experience. Irving says Yahoo Mail will become twice as fast and easier to navigate after engineers tweak the architecture, user interface and back-end. Yahoo Mail's architectural changes aim to provide better SMS and creation of folders, offering unlimited storage and up to 25-Mbyte attachments.
A proposed plan to reclassify broadband access as a telecommunications service "will have an immediate and significant adverse economic impact on small broadband Internet providers," the American Cable Association is arguing in a new Federal Communications Commission filing. The ACA, which represents almost 900 small and medium-sized independent operators, says that reclassification would subject its members "for the first time, to economic and behavioral regulation of their provision of broadband Internet service." The organization also argues that the FCC doesn't have the ability to reclassify broadband access without undertaking a potentially lengthy rulemaking procedure. The ACA's filed comments, which summarized conversations with the agency, were submitted in response to a proposal of FCC Chairman Julius Genachowski to reclassify broadband access as a Title II telecommunications service. Doing so would require broadband providers to follow some of the same common carrier rules that apply to telephone service providers. The move is seen as a first step toward crafting neutrality rules that would prohibit broadband providers from degrading or prioritizing traffic. Genachowski made the proposal after a federal appellate court ruled that the FCC lacked authority to sanction Comcast for violating net neutrality principles by blocking peer-to-peer traffic. The court based its ruling on the fact that broadband was categorized as an information service, not a telecommunications service. When the FCC voted 3-2 to pursue Genachowski's plan, the agency didn't open a formal rulemaking. Rather, the FCC sought comments via a notice of inquiry -- a procedure that would allow the FCC to vote on reclassification at any public meeting. A more formal rulemaking, however, could potentially result in months of delays. The ACA says that the plan requires a formal rulemaking because it "constitutes a legislative ruling" that would subject Internet service providers to a host of new regulations. Even without that a formal rulemaking, however, it's not clear whether the FCC intends to move forward in the near future. Several weeks ago, the agency sought additional comment about reclassification. In addition, the FCC is not planning to consider reclassification at its next meeting, scheduled for Thursday. Some industry observers have predicted that the FCC is unlikely to move forward until after the November mid-term elections.
Although publishers have looked to Apple's iPad as a potential savior, Apple has not unveiled a standard system for allowing digital newspaper subscriptions to be delivered via the new reading device. But such a plan is in the works and may launch soon, according to the San Jose Mercury News. Apple is prepared to share subscriber information with newspaper publishers, provided the subscribers opt in, according to the report. That's an important step that could allow publishers to deliver targeted advertising based on demographic data and other subscriber characteristics. While Apple did not comment on the rumor, industry observers speculate the tech company could take 30% of subscription revenues and up to 40% of ad revenues from newspaper apps delivering subscriptions on the iPad. For newspapers in general, the prospects for subscription sales of digital editions is still an unknown quantity, as consumer expectations have been molded by a decade of free access. One standout -- The Wall Street Journal -- has had great success charging for online access, but it occupies a fairly unique position as the provider of high-value business information. The results of other online subscription schemes are not nearly as promising. On Monday it was revealed that Newsday has sold a paltry 35 online subscriptions since it began charging $5 per month for access last year. However, many argue that consumers are more likely to pay for the convenience of a mobile subscription, and the iPad has been selling at a brisk pace, so the potential audience is growing fast. A recent report from Forrester Research estimated total e-reader sales (including other devices like Amazon's Kindle) at 3 million units in 2009 and projected another 6 million units sold in 2010, for a total of about 10 million units when 2007-2008 sales are taken into account.
Ford on Thursday kicked off a new combined print and mobile campaign for its Edge crossover in The New York Times that includes 2D barcodes in print ads providing readers with access to Times articles on technology and style on their phones. Ford is running a full-page ad Thursday in The Times featuring the 2011 Edge, highlighting the vehicle's new voice recognition technology called MyFord Touch. An upgrade to the automaker's Sync in-car communication system, MyFord Touch promises the ability to recognize up to 10,000 voice commands and launches initially with the Edge. The bottom of the ad includes 2D barcodes providing mobile users with camera phone access to a selection of Times articles on technology and style intended to appeal to tech-savvy prospective Edge buyers. When someone uses the barcodes to link to the stories on their handset, Ford banner ads will appear at the top of those mobile pages, extending the company's branding to the phone screen. People without camera phones could text a specific keyword for each of the four featured stories to 698698 to receive the link to that article on the mobile site. Ford also bought a home page takeover of the Times' mobile site on Thursday. Eric Peterson, a Ford spokesman, said the execution pairing print with mobile was combining the reach and content of The New York Times with a mobile tie-in "was a perfect fit for the Edge." He added that the inclusion of Times articles that related to the tech-centric theme of the campaign came about through joint planning and discussion by Ford and the newspaper's ad staff. Times spokesperson Kristin Mason said the Edge ad was the first time the newspaper has worked with an advertiser to include barcodes that link to Times content. Because the articles are identified as Times stories in the print ad and appear with reporter bylines on the site, the newspaper is not worried about readers mistaking them for advertorial. The barcode and mobile component will be part of Ford's remaining seven placements with the Times through the rest of the year, according to Mason.
Three California residents have sued mobile ad technology company Ringleader Digital for allegedly violating their privacy with its media stamp, which the company describes as the "mobile equivalent of an online 'cookie.' " The lawsuit also names other companies including CNN, Medialets and WhitePages.com, which allegedly worked with Ringleader. In a complaint filed on Wednesday in U.S. District Court for the Central District of California, the consumers allege that Ringleader and the other companies intentionally exploited the operating software on their mobile devices "for the purpose of tracking plaintiffs' internet activities." The plaintiffs -- Charlie Aughenbaugh, Tony Weber and Brooke Stafford -- allege that Ringleader is tracing their mobile activity for ad purposes without their permission. The plaintiffs, who are seeking class-action status, allege that Ringleader and the other companies violated various federal and state laws, including computer fraud laws, privacy laws and consumer protection statutes. The lawsuit stems from the alleged deployment of Ringleader's media stamp, unveiled by the company in November of 2008, as a mechanism for creating and storing profiles about cell users based on the mobile sites they visit. Ringleader gathers information about mobile phones based on the characteristics of the device. The company says it can amass enough data to create unique, anonymous media stamps for every device. In their lawsuit, Aughenbaugh and the others allege that in addition to collecting data about mobile devices, Ringleader creates a new database, "RLGUD," in phones' HTML5 software -- which is used by the iPhone and other devices. "This allows Ringleader Digital and ... mobile website operators to track the mobile device's internet activities over multiple websites based on the unique ID assigned to the mobile device and the HTML5 databases created on the mobile devices," the complaint alleges. Aughenbaugh and the two other plaintiffs allege that they are unable to delete the HTML5 databases allegedly created by Ringleader because, they say, "if a database is deleted from a phone it simply recreates itself only moments later." "This is clear evidence of defendants attempt to further thwart the efforts of mobile device users to protect their privacy," the lawsuit alleges. Ringleader declined to comment for this article. The company's privacy policy provides an opt-out link that allows users to opt out of receiving targeted ads. The policy states: "If you have opted out, we will not use Media Stamp to apply targeting that relies on the unique identification of your device or otherwise use data concerning your mobile device other than to implement your opt out decision." Ringleader adds in its privacy policy that opting out "prevents us from associating non-personally identifiable data with your device's browser starting from the time you implement the opt out utility. It does not affect data collected prior to that time."
Microsoft Advertising on Thursday debuted its Mobile Advertising SDK for Windows Phone 7 and Microsoft Advertising Exchange for Mobile. Raj Kapoor, global director for product planning and marketing for Microsoft Mobile Advertising, calls the latter "the industry's first real-time, bidded ad exchange in mobile." "The release of these innovative platforms is designed to enable display ad serving for Windows Phone 7 applications," Kapoor said in a blog post on Thursday. In addition to the company's own sales force and adCenter ad marketplace, the exchange is partnering with several outside mobile ad nets, including Millennial Media, WHERE, InMobi and MobClix. Refined Attentive, according to Kapoor. While the mobile ad space is presently dominated by Apple and Google, it is still in its infancy and ripe for the taking. Last month, Microsoft reportedly committed over half a billion dollars to help launch its Windows Phone 7 platform this fall. The money is likely to be spread across marketing, developers, handset makers and carriers. Jonathan Goldberg, an analyst with Deutsche Bank, suggested that Microsoft will likely spend billions in the first year on marketing and development. In show of confidence, NBC tapped Microsoft Advertising in May to promote its "More Colorful" Fall 2010 program lineup. Executed through a multi-screen ad campaign, the partnership relied heavily on Microsoft Mobile. For the deal, Microsoft Advertising deployed one of its largest and most comprehensive campaigns ever across 19 digital owned-and-operated properties, as well as syndicated partners -- to deliver a combined reach of nearly 470 million unique users monthly. Specific capabilities of Microsoft's Mobile Advertising SDK include demographic, category, carrier and location targeting; text and image units; cick to call and click to Web ad actions, along with reporting on in-app ad revenue, ad inventory, clicks, CPM and sell thru rate. As a standalone platform, Microsoft's Windows Mobile actually lost ground to rival platforms -- dropping to 11.8% in the three-month period ending July from 14% the prior quarter -- according to new comScore findings. In the ad exchange arena, Microsoft faces stiff competition from Google's Doubleclick and Yahoo's Right Media. The software giant acquired AdECN about three years ago, but has since made limited headway in the market. Earlier this year, Microsoft opened up AdECN to a handful of ad buyers, but only allowed them to purchase a limited amount of inventory.
A dispute between mobile marketing company EZ Texting and T-Mobile landed in court this morning, with EZ Texting alleging that the wireless carrier is blocking all messages to and from EZ Texting's short code. In a complaint filed in federal district court in New York, EZ Texting alleges that it learned on Sept. 9 that certain wireless providers objected to a short code user's Web site -- www.legalmarijuanadispensary.com -- which offered information about obtaining medical marijuana in California and other states. "The website advertised that users who sought relevant information could receive such information by using EZ Texting's short codes," the company alleges. "Because medical marijuana is legal in California and the other states identified on the website, and the website did not advocate illegal drug use or medical marijuana use in places where it was not legal, there is nothing illegal or objectionable about this website using text message calls to communicate." EZ Texting says it ended its relationship with the site, but the next day, Sept. 10, T-Mobile allegedly began blocking EZ Texting's short code. T-Mobile also allegedly said at the time that it didn't approve of shared short codes. EZ Texting says that it is in danger of going under, unless T-Mobile stops blocking the short code. The mobile marketing company is asking for an injunction ordering T-Mobile to restore short code service. There might be more to the story than EZ Texting's papers indicate. T-Mobile says it doesn't comment on pending litigation, so it's hard to know exactly why the carrier took action. But, based on the allegations in the lawsuit, T-Mobile's actions appear to be similar to those taken in 2007 by Verizon Wireless, which briefly refused to allow abortion rights group NARAL Pro-Choice to use a short code to reach members who had signed up for text messages. Verizon Wireless reversed its decision the same day that a front-page story about the matter appeared in The New York Times. That incident prompted advocacy groups Public Knowledge and Free Press to ask the Federal Communications Commission to rule that carriers can't block short codes based on content. Today, Gigi Sohn, Public Knowledge president and co-founder, reiterated that request. "The FCC should put a fast end to this blocking by issuing the ruling we asked them for three years ago," Sohn said in a statement. "EZ Texting and other companies should be able to focus on growing their business rather than filing lawsuits to prevent blocking."
Last month, Facebook announced its "Places" product, essentially a location-based feature that allows users to share their locations among their network of friends. Places is not about broadcasting your locations to everyone but about sharing your locations within your network -- family and friends you trust and want to facilitate communication. According to Facebook founder Mark Zuckerberg, Places was created for three purposes: 1) To help people share their locations socially with friends; 2) To let users see who is located around them so they can connect in the real world; and 3) To share and see where your peer group is going so you can learn and discover new places. Places is different from the current location-based social services, like Foursquare and Gowalla, in that it's not about creating a "game" around locations or "rewarding" users for checking-in. These types of services reward users with discounts, freebies and symbolic badges for frequenting locations. Places is simply about sharing location-based experiences within the Facebook network. So why is the Facebook Places announcement such a big deal, especially with other products like Foursquare offering loyalty incentives and even discounts for users? Simple: Facebook's sheer size and influence. With Facebook joining the location-based game, you'll see a much more rapid adoption of location services among social users, which will benefit both the users and the businesses participating. Facebook can truly take location mainstream. Although Foursquare and others have seen tremendous growth during the past six months, they still have an extremely small base as compared with the estimated 830 million "unique" users of social networks worldwide (Morgan Stanley, 2010). Foursquare currently has 3 million users and approximately 15,000 venues/businesses participating. Facebook, as we all know, cites more than 500 million users and growing. Facebook's mere presence in location-based services sheds a light on the early adopter services and will help drive adoption for "early adopters" to mainstream. In fact, the day of the Facebook Places announcement, Foursquare had its largest user increase. (Foursquare, Gowalla, Yelp and Booyah were all present at the announcement as "partners.") Additionally, Facebook is also bringing "tagging" to Places, which really makes it unique and truly socially. Users can "tag" the friends with them at locations and message via all their newsfeeds. Even if you don't have a smartphone to access Places, you'll be included in the "Places" conversations by virtue of being tagged. It works exactly like the "tagging" function in photos. So what does this all mean for teens and marketers wanting to reach them? Location-based marketing (let's call it messaging) is set to explode during the next year and beyond. Why? 1) Teens are one of the most active demographics across social networks, with 75% of online teens, ages 12-17, using social media daily (Pew Research, Feb. 2010); 2) Teens are increasingly almost inseparable from their phones and as recently cited by eMarketer, 66% of children ages 8 to 18 owned a mobile phone in 2009, up from 39% in 2004 (Kaiser Family Foundation); 3) The projected proliferation of smartphones across the board, especially with the teenage demographics, will further push location services, with smartphones becoming the norm. The potential for marketers reaching teens through social location is huge. As the teen user base grows, marketers will have more ways to reach teens exactly where they are ... in real-time, in the real-world. A note of caution, however: Marketers must be sure their messages are informative and rewarding ... not seen as explicit advertisements. If done correctly, it's like having a brand ambassador alongside every teen's smartphone. (And that goes for other demos, too.) A few weeks ago my daughter's friend went shopping for back-to-school clothes. She checked-in at American Eagle and soon after received a 15%-off coupon via her phone. That coupon made the difference in making an actual purchase or simply passing. Originally set on buying only one item, she walked out with two. Why? That conveniently timed and targeted coupon was the proverbial tipping point. Additionally, she shared her check-in and her 15%-off deal with friends. Sharing with her peer group sent this deal virally throughout her network of friends, generating a very direct personal recommendation. Experiencing location-based services with your teens is a must. With anything "new" in today's world, especially technology, parents need to be involved and informed. Despite Facebook's security and privacy settings, parents should still be active and engaged with their social media and Internet activities, especially one that alerts an individual's location in real time. As a father of six, my family's experience with all things social has been excellent, enhancing our communications and overall life experiences. But I also keep a close eye on what my kids do and say on social networks. What's next for check-in services? Judging from recent news, it looks like TV. Fox and other networks are partnering with services like GetGlue to bring location to TV, allowing users to check-in to shows and receive rewards through loyalty programs. Facebook recently bought check-in-to-anything service Hot Potato, signaling their ongoing interest in location. For sure, location is and will continue to be a hot topic. As we watch user participating grow, marketers will soon have a mass targeted audience that delivers on scale and reach ... one that will help drive sales and your bottom line. And you can thank Facebook for helping kick that in to full gear.
Yesterday Nielsen Mobile released a torrent of survey stats about mobile app usage and attitudes towards mobile advertising. The dominance of games, social networking, search and weather among mobile users was unsurprising. For smartphone users, 63% of them had accessed a game in the last month, 55% weather, 50% maps or search and 39% a social networking app. Interestingly, while there are some variances, Facebook, Google, Weather Channel and Pandora enjoy massive popularity on iOS, Android, Blackberry and Windows Mobile. Also interesting is how little progress we seem to have made in cracking the content discovery problem after all of these years. There is still an overwhelming dependence on the spotty app store environment. Alternative entryways like carrier home pages and third party sites are still not places we go to find apps. When it comes to app discovery among smartphone owners, recommendations from friends was nearly as important as the app stores themselves, which makes me wonder when we will see developer/publishers leverage the social nets more effectively as distribution vehicles. But the one set of figures that hit home for me was the rate of app usage among feature phone users. While 63% of smartphone owners played a game in the last month, 52% of other mobile owners did as well. Weather attracted 55% of smartphone owners and 39% of feature phoners. Even mobile search and maps grabbed 30% of feature phoners -- social networking, 32%. While all eyes in media and marketing tend to track the bright shiny smartphone that almost all of us in the industry rely on, if you do the basic math (roughly 23%-25% smartphone penetration?) then even with a lower rate of apps usage, feature phones remain the largest app platform. Our tendency is to see the sharp trajectory of smartphone share as an inevitable march to ubiquity. I am not so sure. This isn't like the PC or broadband market where eventual, near-total penetration was a reasonable assumption. I was at a family function recently where the majority of the people in the room, all affluent, many small-business owners and wireless-enabled for a decade, didn't have a smartphone among them. In fact several made a point of saying they didn't want one. "It's a damn phone," one of them said defiantly as he shook his Samsung at my iPhone. While anecdotal to be sure, these attitudes remind me that the personal and emotional attachment people have to their cell phones works in a number of unexpected directions. Asking substantial shares of the market to adopt these devices does bump up against sentiments about connectedness that are quite personal. At some point we should start discussing the natural ceiling of smartphone penetration and what it means to media and marketers. Regardless of device penetration, it is also clear from the Nielsen stats that the rise of the smartphone is driving interest in apps across the board and into feature phones. I was reminded of this trend when the folks at mobile Web app and music site Myxer announced results of a recent campaign for Geico. The ubiquitous insurance company has a custom mobile site at the Myxer portal (m.myxer.com/geico) that leverages the brand's TV ad assets. There are downloadable ringtones and wallpapers depicting the Gecko and clips from the TV spots. Myxer has done a good job building the site so that the page weight is light and quick even off a 3G network, and the asset previews seem to work. Even without downloading anything, the visitor gets to review some of the memorable lines for a creative ad campaign. The sharing mechanisms via Facebook and Twitter were almost as seamless as they are in any standalone app. The result was 350,000 downloads in the first 60 days, according to the company. The numbers are remarkable in that the campaign was not driven explicitly by other media. The TV Geico spots provide familiarity with the assets, but their presence at Myxer was not. "The driver for the Myxer downloads was primarily the promotion on Myxer, both Web and mobile, which featured placement and home page takeovers," says Jeff Sass, vice president of business development for Myxer. The Geico campaign does demonstrate both the promotional power of the non-app mobile Web world and the likelihood that a robust branded download market will persist in parallel to the app economy for the foreseeable future.