Tag: marketing

Conference: Mindshare Media Summit Dubai

Things heat up, and not only because I am traveling South this week, more specifically to Dubai where, on Tuesday (1st), the Mindshare Media Summit 2011 will open its doors. It carries a heavy focus on marketing and media in a multi-screen world where screens and user experiences converge. The organizers have a great line-up of speakers, including:

  • AKQA
  • Nissan
  • HSBC
  • LinkedIn
  • BBC Worldwide
  • Google
  • Yahoo!
  • The MBC Group
  • (of course) Mindshare
  • The Arabian Radio Network
  • and many more (including yours truly).

So if you would like to hook up in one of the most vibrant regions in the world, in one of the swankier settings and soak up some sun before the winter (if you live in the Northern hemisphere, that is), come by! 🙂

People-centric Design Rules!

Apple’s iPhone is only a marketing fad for vain urbanites. True purists go for Android. Those who see the light in volume go for Nokia or Samsung.

All this are points often heard when one dives into the deeper echolons of most mobile tech blog or forum. Engineers throw up their hands because those “American-centric media types” “don’t get it” and only wave their flag for whatever Steve Jobs, turtle neck and all may put up onto the big screens of his church.

I am not American and I am not a media type. And I don’t wear turtle necks (well, not since c. 1989 at least). And yet, I do prefer my iPhone (3G) over my Nexus One. And this despite obvious advantages of the Nexus: better screen, quicker, haptic feedback (yes, Mr Jobs, I do like that), the concept of open source, etc, etc. So why do I stick to the iPhone? Fanboy? Marketing fad? Vain urbanite?

Here’s why: I have been trying to set up my Nexus so it will do what my iPhone does, and I am not talking of playing a fancy game or running some other app that is not (yet) available on Android. I am talking about the two key things I need a phone for (41-year-old non-techie I am), and that is phone calls and e-mail; calendar (with sync) is important, too. For the former I need my address book, and I need it to sync properly. For the latter, I need my (admittedly too many) e-mail accounts set up on my device and syncing properly. As to calendar, wait for it below. Alas, two very different experiences:

  • On the iPhone, you do the following: 1) plug the phone into your computer, 2) answer “yes, please” when iTunes asks you if it should sync contacts and e-mail addresses, 3) get yourself a cup of coffee, 4) walk off.
  • On the Nexus, you’re OK (-ish) if your life evolves around Google. With a Gmail account and associated contacts (and/or calendars), you’re sort of OK. It does all that. Now – shock, horror – I do not actually send all my mail from Gmail and my contacts are mainly dealt with in my address book (take Outlook or whatever you want if you’re a Windows user). And I use iCal and not Google Calendar. And so it starts: there is no desktop application that would help me do this. On a Mac, the phone is not even recognised when you plug it in (and that is a rare thing on a Mac; is this another piece of Apple vs. Google? I don’t know but I doubt it). So you are finding yourself setting everything up by hand! Entering the POP3 and SMTP (or IMAP) server addresses, user names, passwords, etc, etc for seven e-mail accounts is no fun. And (remember I am not a techie) invariably leads to some box checked wrongly here or a typo in a password there and, kawoom, nothing works. I can set up a Google Calendar/iCal sync BUT that will only sync the specific Google Calendar bit between the two, and not any of my other (work, home) calendars. I can sync my address book with Google, so that works. The whole procedure took me the better part of 45 minutes, including lots of corrections and swearing and led to me abandoning a half-configured beauty of an Android phone. Great result.

So why is that?

My answer is: because they design it with engineer-centric design. And that is wrong! Why? Well, because most people are not engineers! An engineer thinks something along the following: I am Google and we love the cloud. Therefore, I will design everything so that it will adhere to that principle and will – in a purist kind of way – design everything in a way that you can beautifully and seamlessly set everything up – if and as long as you use all the wonderful Google services we have. And if you don’t get that, you’re not worthy.

The same works with Nokia: we’re Nokia and we have the best hardware, the best distribution and an incredibly good and powerful plethora of services around it (we did spend time, resource and money after all to become mighty competitors in maps [Navteq], music [Comes with Music], apps [Ovi – and the many iterations before it], etc). I will therefore design everything in a way that I can let this hardware shine as best I can; I mean: we had video calls since 2005, for elk’s sake! And if you are too dumb to configure everything in a proper way and cannot find the destination to where your downloads were stored, you’re not worthy.

Apple looks at things a little differently (and it is not only for the better although, for most people, it is): they provide a tool that brings everything I need over to my phone just like that. Job done. Easy! They will look at whatever tools they need for this. And if it means extending iTunes (which, yes, I know, they had already) to accommodate syncing data other than music and video to something other than a computer, than so be it. In that, they follow their own philosophy as slavishly as the other guys do but they do design it from a people-centric rather than an engineer-centric point of view. And that is why it works so well for people that are not (also) engineers.

They key point is this: Apple does not try (or at least not in your face) to change what people do. If I want to run my e-mail off 5 different domains, then so be it. If I prefer my contacts to sit on my disk rather than in the cloud, that’s fine. They’ll give me tools to facilitate doing what I do already and don’t lecture me on what I have to do to make it work. That this brings about subtle changes in user behaviour is fine: if you convince me gradually that things work better one way rather than another, I might be converted. But to tell me “my way or the highway” does not work! Ever!

The downside is Apple’s control mania, which blocks things (sometimes fairly questionably) because they are (or only might) be out of their control. And this is where Google, Nokia and all the others could score: try to combine things! If you would look at how Apple does things, and then – at the very end – you provide a door (doesn’t have to be a trap door, can be a flashy entry portal) to the innards and machine room of your device, so you can show off whatever you want and open the marvels of technology to those who can and want to handle it – so they can turn their super-smartphone into an uber-super-smartphone. But do leave normal people alone.

In the post-iPhone era, things have changed already (a little): you now get hidden installers (that do not ask you 100 questions on where you want to do what and where and under what penalties and with which risks), you get better interfaces, etc. BUT the default is still engineer-centric and not people-centric. Improve this, and the iPhone killer can be yours!

Image credit: http://www.ntamco.com/main/images/stories/design-is-a-behaviour.jpg

An Example Why Nokia Struggles

Yesterday, Nokia announced the “Nokia 5330 Mobile TV Edition”,

“an entertainment hub that combines mobile broadcast TV (DVB-H), social networking, music and gaming in one compact 3G device.”

Let that sink in: it is – apparently – not a phone. Mentioned nowhere. Well, it is of course but one might ponder if that is the message you want to get across. Focus?

Be not mistaken though, it offers some rather incredible specs: a full six hours (!) of mobile TV broadcast without re-charge. That is 3 football (my US readers, scil. soccer) matches (although I am not sure where, when and why one would do that). Compare that to the iPhone where you could watch maybe 30 minutes of highlights IF you have downloaded the respective clips when you were in a WiFi zone last. The headset doubles as an antenna.

QVGA on a 2.4″ screen, 3.2 megapixel camera (presumably with the trusty Carl Zeiss lenses, LED flash, video, free music via the “Comes with Music” service. It also says (well in the punchy headline above anyway) that it will also have specific gaming capabilities.

Phone calls? That is so last year… It is not a phone, it is an entertainment hub, baby!

The device but even more so the press release exemplify the challenges Nokia faces. It is not the technology; the Fins are good at that. It is not distribution network; they have excellent carrier relationships the world over. But the package and its presentation makes it almost anti-climactic – and probably unfairly so because the thing does even look pretty neat!

Now, if one needs TV broadcast is a discussion all by itself (the fact that you can set reminders “to make sure key episodes aren’t missed” sounds almost quaint in the age of TiVo and the iPhone’s Sky+ app).

But even apart from this, it is an example that demonstrates the approach: Nokia tries to answer calls querying its continued leadership by building monolithic technology beacons. But that is not why users flog to the iPhone; they merely want something that looks good and works beautifully. Dear Nokia, IF you equip a phone (a phone, not a multimedia hub!) with every gadget under the sun, this is cool – it really is! But do not sell it on technology, sell on user experiences. Users do not generally care much for tech talk (well, maybe some boy racers and hardcore coders do), they care for ease. Give them ease!

Apple’s overriding design goal is (and has been for a while) to de-clutter the user environment and experience. Then they execute nicely on it. That is what makes them so superb. Try to emulate this. You have all the tools. Now get the pitch right, will you?

The Future of Advertising is in Engagement!

A lot is being said about mobile marketing, mobile advertising, capturing “consumer’s” imagination (if not only their eyeballs). And everyone says: “yes, I get that, social, mobile, always-on, always with them, cool!” Online ad spend outstrips TV already (at least in the UK), and mobile is arguably the next big thing; it is so much cooler, too: personal, accessible, always-on!).

So how do you execute? Banner ads? Text ads? Virals? “Ah, yes, virals are cool, I heard about them!”

There’s a busload full of mobile advertising networks out there, blind, premium blind, premium (check here for a great overview). And what do they do? Well, banner ads, text ads, the usual. Does it work? Anecdotally, sort of… Most developers and publishers I know that engage in this sort of activity make their money in two ways: either they are being commissioned by an advertiser to do it (good because you’re being paid!) or they use it as complementary (sic!) revenue; on a stand-alone basis, it would not feed them.

Why is the conversion not soaring? After all, mobile allows for unprecedented targeting (IF you do it. See here how not to do it): users have their phones always with them, it is always on, you can fall back on historical behaviours, etc, etc.

I would posit that it is because most advertisers still think of it in terms of consumers: beings that sit on the other (sic!) end of the message and who consume whatever I, advertiser, want to tell them. It is not, alas, true engagement, and this is where arguably the future lies.

So how do you engage? Many options. A good one is by being sincere (Zappos, the online shoe retailer that was recently acquired by Amazon, is a great example). Another one is by engaging rather than preaching. Not so easily done with banners. Easier done with something more interactive. Such as – an example – games and apps. On Apple’s app store, there are some great successes for this type of thing: German car manufacturers seem to be good at this! Audi did one, German developer Fishlabs did a couple of games for Volkswagen, Artificial Life for BMW, and then there is Waterslide Extreme, which is basically a Barclaycard ad (and badly executed: they could so easily have accommodated the RFID function, which the original cinema and TV ad is meant to promote; alas, they ignored it!) which despite its shortfalls was incredibly successful. But these are exceptions to what I think might well become the rule. On the app side, there are e.g. Pizza Hut and Gap that were recently featured (for free!) in Apple ads. Wow!

It seems obvious when you think about it: games truly engage (users – not consumers! – interact with them actively) and they can do so in a much more subtle manner (less invasive). At the same time, the user (not: consumer) spends a lot more time with the brand than with a banner ad.

It is, alas, a space of unknown dangers and unprecedented adventure: never-before seen creatures (scil. formats) and strange folks (scil. developers) roam weird landscapes (scil. mobile platforms). This is how brands and their agencies often experience mobile. They "get" it, don’t get me wrong but they are still fairly unfamiliar with it. And because the big pots of gold sit with the brands and they don’t want to risk cutting access, they’ll rather (and rather too often) stick with what they perceive as the trusted old paths. It’s not so good then that the freshest fruit grows on the trees in this new land and no longer in the wastelands of banner ads…

Watch this space then. It will only be a question of time (I hope) before we’ll be seeing a new wave of non-intrusive, interactive, fun brand engagement. And games and apps will lead the way!

US Mobile Advertising Snapshot

The good folks of Millennial Media gave me a sneak preview of their May Scorecard for Mobile Advertising Reach and Targeting (yes, they call it SMART…), which looks at the US mobile advertising market, and then my daughter broke her arm and my blogging activities (and a lot of other things) took a time-out…

Anyway, Millennial reaches 73% of all mobile Internet sites (which they claim makes them biggest), which makes it a fairly comprehensive overview. And there is a lot of interesting data buried in this brief piece of research.

So, for May 2009, the handset on which most ad impressions were recorded was not the iPhone but the Samsung “Instinct” (otherwise known as the SPH-M800). The iPhone was on #2 ahead of the Blackberry Curve. A full list of the handset breakdown looks like this:

On the advertising front, we’re seeing some interesting metrics on cost per engaged user depending on the various measures included. Advertisers appear to be trying out a variety of approaches. Interestingly, the cost per engaged user for a campaign focused on a specific demographic has dropped very significantly (by ¢0.28 or c. 45%). Is this a sign of a higher take-up? Here’s a graph showing the details:

The mix of campaign activities is also interesting and shows that the sector seems to be coming of age. C. 60% of the campaigns (or committed budgets) were dedicated to the mobile web (browser) with the balance using some form of dedicated applications. The app store has its own category already and use of it (or rather iPhone apps) rose by 4 points to an overall 13% of campaigns, which is significantly higher than the iPhone’s footprint. However, I am sure more than 13% of art directors and their clients use iPhones, so maybe this is why. Or of course the iPhone could simply be a device (and the apps to go with it) that makes it easier to engage with users. Oh, what news… 😉 So here’s the final graph I’ll share with you, namely a chart showing the splits:

YOC buys Bluestar Mobile

Consolidation in the mobile marketing space: German mobile marketing group YOC, a publicly listed company with revenues in Q1/2009 of c. €6m announced it has acquired Bluestar Mobile, the people known to British readers as the guys behind all the wonderful girls of the Sun on mobile (and, no, they also work with others such as the Guardian, Motorola or Bacardi). No price was disclosed. However, since YOC trades in the prime segment of the Frankfurt stock exchange, it will have to provide some details of the transaction in due course…

YOC is a giant in the German mobile marketing market (the vast majority of its revenues comes from its home market) where it runs campaigns for a lot of the marquee brands, including Mercedes, Sixt, Walt Disney, Coca Cola, T-Mobile, Sony, etc. However, its international revenues were rather small: its biggest foreign market was the UK with €400k revenues in Q1. Bluestar, which had built a nice business (according to YOC’s PR “profitable from inception”), will nicely add to YOC’s activities.

It seems the two follow virtually identical business models – full-service mobile marketing firms that run everything from concept, planning and execution of campaigns via inventory management and ad-serving solutions to creation and operation of mobile internet portals.

When you look at YOC’s share price, the strategy appears to work: whilst the German small-cap index dropped more than 40% in the last year, YOC’s stock rose by nearly 20%. All good then!

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