Telecom carriers around the globe believe that in LTE, or 4G -- which is anticipated to become the first truly global mobile phone standard -- a “gold mine” could be waiting for them in the form of video-calling. The Verge’s Chris Ziegler, reporting from the International CTIA Wireless conference in New Orleans, says that even before the industry confab, a number of carriers -- including AT&T -- had called for a unified video-calling protocol on 4G, and that “the buzz wasn't any quieter at CTIA last week.” Neville Ray, chief technology officer, T-Mobile USA, said: "I think (video-calling is) more of a growth area -- an opportunity. I think the interesting piece about video calling is that was the killer app for 3G... of course, the quality in the early 3G days was just not there. I think with 4G, improvements in the network, improvements in the handsets, video-calling is clearly a growing opportunity." Terry McCabe, chief technology officer of LTE services specialist Mavenir Systems, agreed: "Video is where it's at in terms of where the operators believe that LTE has a tremendous differentiation." This is particularly true for the carriers, added co-worker Madan Jagernauth, vice president of marketing and strategy. Unlike say, Skype, which is an over-the-top video-calling solution, the carriers can offer a “one-stop shop” for communication, allowing users to dial any number and choose from voice, video or messaging, depending on their preference and the recipient’s hardware and network capabilities.
The share of Web site traffic on tablets grew more than 300% in the past year, according to research released Tuesday. Tablets' share of Web site traffic will exceed smartphone traffic by early 2013, reaching 10% of total Web site traffic in 2014. The research from Adobe Systems Digital Index group shows that tablets continue to influence how consumers interact with brands online. The findings suggest several implications for brands and provide insight on how changes will accelerate the increase of tablet use. The study suggests that traffic from tablets to Web sites will surpass that from smartphones in 12 months. Within one year of the iPad launch in Q2 2010, tablet visits represented 1% of total Web site visits, reaching 4.3% of total visits one year later, up more than 300%. Compare this with the first two years of the iPhone market entry, when smartphones accounted for 0.5% of total Web site visits, taking nearly three years to reach 1% of total visits, according to the report. Austin Bankhead, director of Adobe Digital Index, said the share of Web site visits from tablets grew approximately 10 times faster than the rate of smartphones since companies introduced these devices to consumers. Consumers find tablets comparable to PCs for passive consumption of content, such as on media sites. But for transactional visits on retail and travel sites, consumers are between 30% and 60% more likely to purchase using a PC. Tablets generated 4.3% of total Web site visits, compared with smartphones at 6.1%, in Q1 2012. For each visit to a brand's Web site made with a smartphone, four visits are made using a tablet. The findings also suggest consumers using smartphones to engage with brand Web sites more likely to do so via mobile apps. Overall, PCs have more appeal compared with tablets for accessing Web sites. PCs generated 19 times as many Web site visits compared with tablets during Q1 2012. Tablets generated 3.3 Web site visits. The study suggests that consumers prefer PC, compared with tablets, for the form factor, easy access from the device, availability of apps for tablets, and relatively low numbers of tablet-optimized Web sites. Analyzing how tablet traffic varies by operating system provides additional clues as to why consumers may prefer PCs for visiting brand Web sites. For starters it makes sense that if more iPads ship, compared with other OS devices, Apple's device would become the dominant system visiting Web sites. When Apple released Q1 2012 earnings the company reported grabbing 68% market share, up from 54.7%. The company shipped 11.8 million iPad units in the quarter, a little less than analysts' expected. In Q4 2011, Apple shipped 15.4 million units. Tablet shipments should rise fivefold during the next five years, according to a quarterly report from NPD DisplaySearch. Shipments should grow from 81.6 million units in 2011 to 424.9 million units by 2017. The forecast for 2013 shipments resently increased from 168.9 million to 184.2 million. This Adobe study expands on the findings from the initial Adobe Digital Index report on the value of tablet users to retail companies released in January 2012, which suggested that in 2011 tablet users spent more per purchase than other online customers. Along with the study, Adobe released product services at Adobe Summit in Europe. Matt Langie, director of product marketing at Adobe Digital, said Adobe also announced CQ Cloud Manager, CQ Cloud, CQ Ecommerce, CQ Social and Communities.
Starting with the NBA finals, ESPN is teaming with Twitter to create new ad programs around major sporting events. These new programs will be promoted online and on-air across Twitter, ESPN and ABC and ESPN's digital properties. Regarding the tie-up, Joel Lunenfeld, Twitter’s vice president of global brand strategy, said: “It’s the first time advertisers can engage [ESPN’s audience] across screens and where the conversation is happening on Twitter.” As for the timing of the deal, Lunenfeld pointed to the rise of connected devices, and consumers’ increasing taste for digital multitasking. Indeed, as Nielsen recently found, about 45% of Americans who own tablets and smartphones watch television while watching something else at the same time. Thirty-six percent of smartphone owners engage in this "two-screen" experience. The announcement coincided with ESPN’s network upfront presentation, which took place in New York on Tuesday. Each ad program will be co-created by ESPN and Twitter, beginning with GameFace -- the first effort, which will be focused on the NBA Finals. GameFace will be integrated throughout the live ABC broadcasts and ESPN’s "NBA Tonight" programming with a dedicated Twitter hashtag #GameFace. Fans will be encouraged to tweet photographs of their “game face” throughout the finals. At the conclusion of each game, "NBA Tonight" analysts will highlight the competition and reveal the best photographs on-air. The best photos will also be featured in a photo gallery on ESPN.com/NBA. On Twitter, #GameFace will be supported through Twitter’s Promoted Products suite -- including a Promoted Trend during the finals -- and the experience will be plugged on the @NBAonESPN Twitter handle. At the conclusion of the NBA finals, ESPN basketball analyst Jalen Rose is expected to tweet his top five favorite #GameFace entries before revealing the final winner, who will receive a grand tour of the ESPN headquarters in Bristol, Conn. Additional sports events that have been identified include the Global X Games, Road to the BCS National Championship, Super Bowl, World Series, NCAA Men’s Basketball Tournament and NASCAR Chase for the Cup. Future events will offer a similar interactive experience, according to Lunenfeld, with new themes and dedicated hashtags to drive the sports conversation on Twitter.
Worldwide video usage on computers is now as common as watching it on traditional television among online consumers. The growth is helped by the rise of video usage of mobile devices. Looking at 56 countries, Nielsen says 84% of viewers watch video on computers at least once a month. This is actually a bit higher than television, where the survey says 83% of worldwide consumers watch TV at least once a month. This has changed from two years ago where -- on a monthly basis -- 90% of consumers watched video content on TV at least once a month versus 86% on a computer. What's changed? Over half of global online consumers (56%) say they watch video on a mobile phone at least once a month -- and 28% at least once a day. Overall, 74% of global video consumers watch video via the Internet, on any device. Mobile video is strong in Asia-Pacific and the Middle East/African regions of the world, where over 70% of online consumers watch video on mobile phones at least once a month. About 40% watch at least once a day. But in North America, Nielsen says mobile video is currently less of a big deal -- only 38% of consumers say they watch mobile video once a month. Dounia Turrill, senior vice president of client insights of Nielsen, stated: “With the growth of smartphones, mobile video consumption is on the rise for entertainment content, particularly in emerging markets where many consumers leapfrog home Internet altogether in favor of the all-in-one smartphone.”
American Express has introduced a mobile offers engine that recommends and ranks real-time merchant offers for U.S. cardholders based on the spending history and location, or “spend graph.” The new “My Offers” service is being piloted in American Express’ iPhone app, and builds on its card sync programs with Facebook, Foursquare and Twitter. Recommended local offers will initially be concentrated in Los Angeles and New York City, but with some available nationwide through chains such as Baskin-Robbins and Dunkin’ Donuts. Through the iPhone app, users will be able to see a list of relevant offers which they can sort, based on location or expiration date. The My Offers dashboard allows people to see what offers have been added to their card, how much was saved, and which have ended. To redeem an offer, users just add it to their American Express card and use the card to complete the qualified purchase online or in-store. The savings are automatically loaded and delivered in a statement three to five days later. The discounts that customers receive include those coming from its Facebook, Foursquare and Twitter programs. Josh Silverman, president of the U.S. consumer services group at American Express, said the new mobile service was designed to help customers get a better handle on the explosion of daily deals. “At the same time, we can help our merchant partners build their business by helping them reach the right cardmembers with the right offers at the right time,” he stated. To help fuel the new service, American Express has also upgraded Go Social -- the tool it launched last year to help small businesses create social and mobile offers, target cardholder segments and receive detailed reporting on their offers.
The latest trend in mobile marketing aims to help busy commuters get their meal planning and shopping done while they hurry to and from work, using mobile QR codes and billboards displaying enticing food items. In the most recent version, AllRecipes.com is plastering high-traffic commuter hubs in downtown Los Angeles with out-of-home ads showing the most popular local food items (the most searched-for recipes), alongside QR codes. They lead users to the relevant recipes, allowing them to create a shopping list that can be accessed at the store via smartphone or using the AllRecipes.com Dinner Spinner app. The “Fix Dinner” campaign -- AllRecipes.com’s first venture into out-of-home advertising -- includes an eye-catching “station domination” at the 7th St./Metro Center Station. The LACMTA rapid transit system, for which 7th St./Metro Center is a main hub, carries about 350,000 passengers on an average weekday. AllRecipes.com is not the only one using mobile QR codes to get commuters thinking about food. Peapod, which allows consumers to buy groceries online or via mobile for home delivery, is executing similar campaigns in Philadelphia and Chicago. Transit media, including signage in stations and on train platforms, are carrying Peapod ads that invite passersby to scan a mobile QR code and download the Peapod app. In addition to the QR codes, the signs also feature images of frequently purchased grocery items, which can also be scanned with a mobile device and added to a virtual shopping cart. Once the app has been downloaded, users can also browse the Peapod store for thousands of other groceries for purchase. To sweeten the deal, Peapod is inviting users to text “PHILLYRAIL” as a promo code to get $20 off their first order and 60 days of free delivery. The ads highlight brands that partnered with Peapod to create the ads, including Coca-Cola, Stroehmann and P&G.
Telecoms T-Mobile, Sprint Nextel, the watchdog Public Knowledge and other organizations have banded together in a new coalition, The Alliance for Broadband Competition, which opposes Verizon's pending deal with cable companies. The newly launched organization says the deal will undermine competition and harm consumers' ability to obtain high-speed broadband on attractive terms. Last December, Verizon and cable companies announced a deal that calls for Verizon to pay almost $4 billion to license spectrum from Comcast, Cox, Time Warner and BrightHouse Networks. Verizon and the cable providers also intend to enter into joint marketing agreements. The proposed deal drew immediate criticism by watchdogs, as well as other telecoms. The Federal Communications Commission is currently reviewing the deal. Verizon argued in an FCC filing earlier this month that the deal will help it to build out its mobile broadband network. "These transactions will move spectrum that is currently not being used to a provider that will put it to use to ensure consumers using LTE will have robust and reliable service on their smartphones, tablets, and other mobile devices," Verizon says. "The benefits to consumers, the mobile ecosystem, and the larger U.S. economy are clear." But Verizon rival T-Mobile disagrees. The company said today in a statement that the proposed alliance "will result in excessive concentration of ... especially important spectrum for LTE in the hands of the nation’s largest wireless carrier." Earlier this year, Public Knowledge, New American Foundation Open Technology Initiative and Writers Guild of America West and other groups asked the FCC to nix the Verizon-spectrum deal. They argue that allowing Verizon to 'supersize' with spectrum from cable companies "directly undermines the pro-competitive policies of the 1996 Act and is thus contrary to the public interest." Those groups also warned that the Verizon-cable alliances "provide a mechanism for future collusion on pricing, building out, coverage, and other market control methods."
Per every Web penetration report you’ve ever seen, ever wonder about those 1% of consumers who aren't online? Those are hairstylists (!), half-joked Sarah Liang Kress, Director of Interactive Marketing at L’Oreal USA, during an afternoon keynote at OMMA Mobile. “Hairstylists are late [Web] adopters,” she said -- or, at least, they were when personal computers dominated Web access. Now that mobile has overtaken PCs, hairstylists -- and, likely, other professionals without any need for a desk -- are catching up. “They’re early adopters when it comes to mobile, because the one device they have is their smartphone,” according to Kress. Not surprisingly, L’Oreal saw a huge opportunity to reach these style influencers via mobile. A resulting app -- which the beauty brand developed to be high-touch and complimentary to the salon experience – has been a big success, according to Kress.
We seem to be under a mountain of research in the last week around mobile commerce. The stats on how much and how often people have been using their phones as part of the product purchase cycle risk seeming tedious in their univocal refrain -- mobile is a big frickin' retail deal now. At Monday’s OMMA Mobile event in New York Mediapost’s own head of the Center for Media Research and author of the recent The Third Screen, Chuck Martin moderated a panel specifically on what marketers learned about mobile at retail from the last holiday season and how they plan to implement new and different approaches this coming holiday. And so it is a good time to reflect a bit on holiday 2011 and how consumers said they were using their devices in and around the shopping experience. Once we get beyond gasping at the high penetration rates of m-shopping, we need to begin going deeper to understand specific habits, contexts and demographic breakdowns. JWT conducted a survey of 465 people who did engage in mobile shopping activity last holiday and found that people are generally hovering well above the mobile purchase piece. The majority of mobile shoppers (55%) were looking for price information on their bell phones or tablets regardless of the location of the lookup. But interestingly, 44% were consulting directly a family member or friend. That to me is an interesting intersection of the data and conversational functionality of this device. For all that mobile has evolved as a Web extension -- that task-driven, information-dense platform -- it still vies with the phone’s traditional one-to-one roots. Also high on the list of shopping tasks was getting more information about a product (46%), sharing information with others. Making a purchase, while more substantial a share than one might suspect at 38%, was still well down the list of uses. Slicing the data by gender, men were more likely to look for more product information and to make purchases than women. In fact, men along with younger users are embracing the device as a platform for making purchases at a significantly higher rate. JWT found that while 56% of women said they had made at least one purchase via their phone during the holiday season, 81% of men had. Surely there is more to this than comfort with technology, and the traditional (perhaps stereotypical) male aversion to the live shopping experience has something to do with this. The much-discussed scenario of consumers using their phones to buy products from other retailers while they are in a rival’s store may be only marginally true. This study finds that only 25% of people making their mobile purchase were doing so in a store that sold the item, and 23% were doing so at a store that didn’t sell the item. Most mobile purchasing is happing in one’s own home (49%) or at the home of a friend or family member (40%), or at work (38%). The interesting point here is that the mobile purchase -- whether by phone or tablet -- is being made largely where other larger PC screens are available. For many mobile purchasers, the device is becoming a preferred mode of access. Either because these m-shoppers are gravitating toward the better retailers, or mobile shopping improved that much last year, 69% of the mobile shoppers rated the experience as excellent or very good. Still, interestingly, women still need more convincing than men -- only 61% were pleased with the experience versus 74% of men. While shoppers cited convenience and ease as key motivations for engaging mobile over other platforms for shopping, the purchase piece remains a choke point. Users still find navigation a frequent issue, and the security concern is still there. For many mobile shoppers the device is preferred for browsing and information look-ups, while many of them still end up going to the PC or the store to make the purchase itself. As JWT points out in its study, a number of important implications emerge. Retailers need to start accommodating multiple audiences, and be aware of differences in male and female mobile shopping patterns. Not to overstress stereotypes, but men skew more toward information retrieval while women may want to see more effort put into perfecting the virtual shopping experience itself a better look and feel. The interface remains a challenge. My own feeling is that as in so many other things, mobile platforms force digital media and marketers to do what they only promised to do on the Web. From a consumer perspective, poor ad targeting online, multitasking, clutter and the relative absence of real personalization still compromise the desktop experience. Then, of course, there is simply the perennially uncomfortable upright, at-the-desk and lean-in posture that has been to me the least user-friendly way to consume media we have yet invented. One of the reasons I think we are seeing such a tectonic shift to device usage is pent-up demand. I think the dirty little secret of the desktop Web is that it never was very enjoyable for most of us. This is content that has been begging to break free for years. One of the unkept promises of the Web that becomes critical now is personalization. Just open up your Amazon app on tablet or handset and compare it to almost any other mobile retail experience. I mean, really. There are at least five things on the first page I have to resist buying because the brilliant bastards know me so well. Foremost, m-shopping -- just like mobile media consumption and game playing -- is occurring at least as much in the home as it is in that overused “on the go” scenario. I suspect as time goes on, we may be less inclined to think of what we now call mobile as “mobile.” Mobility will be only one possible characteristic and mode for our “personal screen.” Its principal quality is not that it is “out and about,” but that it is mine. When media and marketers really get that on these devices, we will be evolving well beyond mass media -- and even beyond merely the interactive but niche media of the Web -- and then we begin to seriously explore what this “next screen” is going to be.