Carnival of the Mobilists # 226

On 14/06/2010, in 1, by Volker

This week’s Carnival of the Mobilists is up and running. It features inter alia:

  • a podcast on mobile ticketing;
  • a recap of the M-Publishing event organised by the excellent Camerjam guys (which I so sadly missed due to illness);
  • an interview with Tomi “Rat Hat” Ahonen on LBS and mobile marketing;
  • new research on the growth of mobile data and its impact on the various parts of the value chain;
  • Tomi Ahonen’s take on the iPhone 4
  • and much, much more.

Oh, and they were also good enough to include my (very) recent post on people-centric design. Thank you. :)

The carnival is hosted over here and it is – as always really – well worth a read!

Virtual Goods Boom in 2010!

On 09/06/2010, in 1, by Volker

I stumbled across an interesting piece of intelligence today, which looked at the development of virtual goods in the market place. According to this, median spend on virtual goods by users in North America has climbed a whopping 67% year-on-year to $50 p.a.

Equally interestingly, males are the largest spenders and, broken down by ethnics, Asians (26%) lead Hispanics (20%) by some margin over whites (11%).

So far (sic!), most virtual goods (how many? I don’t know) are purchased from stand-alone web-based games (World of Warcraft anyone?) but 31% had bought items in social networks (that would be the Zyngas and Playfishs of this world) with 29% in “network-based games” (what are they, I wonder). Facebook credits were used by 16% of buyers. Mobile? No word. It’s coming though: do bear in mind that there are 3x more mobile subscribers in the world than Internet users! And, yes, that’s true…

$13m for Idle Screens?

On 08/06/2010, in 1, by Volker

Taiwanese handset maker and Android maven HTC has bought French idle-screen specialists Abaxia for $13m (or so industry sources say). Abaxia says it increases ARPU

by putting services at a zero-click distance to the user and pushing services directly to the front screen.

Think push notifications to a J2ME feature phone. Abaxia works with carriers and OEM to optimize the interface across multiple devices from different suppliers, which seems an apparent benefit to carriers as it will allow them to make their on-device brand communication consistent throughout the handsets available through them. That an OEM should then buy the company could therefore surprise…

And as to the use of idle screens? Hm, I am not totally convinced: an idle screen is, well, idle. I may be tempted to jump to it if an app sends me something from a friend (because, hey, it’s a friend in need) but I am not sure if the same attention can be garnered from the latest and greatest service offer from your operator. This is however what Abaxia claims it excels in. According to its website, the company helps

to drive not only data revenue but [...] to recover failing voice ARPU and secure advertising ARPU.

And here, well, show me the money. I have yet to see a convincing solution for this, and I am not sure if an attempt to capture the idle screen is the way to go.

However, when it comes to interface improvements, it might just work. So all might not be lost. And, in any event, congratulations to the teams at Abaxia and HTC!

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Carnival of the Mobilists # 225

On 02/06/2010, in 1, by Volker

This weeks Carnival of the Mobilists is hosted over at mobiEnthusiast (with a strikingly familiar WordPress theme), and it comes with a lot of goodies, amongst which a stat-packed post on mobile money (and one on why banks need to fully understand it), Ajit Jaokar’s take on net neutrality, the iPad as a spoke in the mobile wheel, a look iAd vs Google/AdMob as well as two podcasts from carnivalist extraordinaire Peggy Salz: A Thomson Reuters SVP suggesting mobile is about companion products and Handmark’s Paul Reddick on why a good brand and a great app may not be quite enough.

Last but not least, my post on the state of mobile games on Android has been included.

So go over there and have a good read. It’s here.

Mobile Zeitgeist Special on Mobile Marketing

On 02/05/2010, in 1, by Volker

The most excellent German-language blog on all things mobile, Mobile Zeitgeist, has recently published one of its MZ Specials on mobile marketing and advertising. Besides yours truly contributing (pp. 11 et seq.) it is a thoroughly good read.

Go here to download your copy!

Carnival of the Mobilists # 217

On 29/03/2010, in 1, by Volker

This week’s Carnival of the Mobilists is live and, amongst other great posts, includes my take on the tremendous value to be unlocked by mobile “2.0″ over the coming years.

Now, since I hope you have read that one previously, here are (some) of the posts you shouldn’t miss either:

  • Looking at the value of location-based mobile advertising;
  • Affiliate programmes as an (additional) business model for app developers;
  • App or not – again… ;-) this time though the question is raised by none other than the Chief Communication Officer of DDB Worldwide;
  • Some posts looking at services of network operators (might that have let the chasing-Apple-craze impact other service offerings?);
  • Judy Breck, keeper of the tents emeritus, looks at how mobile leverages learning…

It can all be found over at Indigo 102, namely here. And now go there, and enjoy yourself!

Carnival of the Mobilists # 207

On 18/01/2010, in 1, by Volker

A fresh new year with the conference and rumour seasons already in full swing, 2010 promises to becoming an exciting one for all things mobile. So let’s be kicking off another Carnival of the Mobilists (it is carnival season, too, after all). What do we have this week?

Russell Buckley looks at the benefits but also disadvantages of a retail experience online, on mobile and on the high street. He looks at this from the perspective of search vs discovery and, alas, the mobile being, well, mobile, he predicts some impact. Suffice to say, it involves the renaissance of the (much beloved by me) local bookstore! Russell’s post is here.

Mark Jaffe has an almost lyrical contribution musing about “monetizing passion” (and he is quick to point out that, despite the closeness to that other show in Las Vegas last week, he is not talking about adult entertainment). It is an intriguing angle on a well-covered topic: he basically posits that the ability to digitally provide the immediacy of satisfying passion presents one of the greatest marketing opportunities around. I concur! His post is here.

WIP Jam contributes a very insightful guest post by Informa Principal Analyst Malik Saadi who suggests that the fragmented smartphonosphere (great word!) and resultant increasing costs of native development will provide a lever for the mobile web, and he reasons it well! He reckons that the low latency of next-generation networks (LTE et al) will make the web the new ubiquitous platform for app development. If the battery life of the devices holds up, I might add… Malik’s post is here.

The good folks at mobiThinking have a great overview of available mobile metrics reports from the various ad networks, and all of them in one place. A fantastic resource! Their write-up is here.

And, finally, Aviv Revach looks forward to the Mobile World Congress and the second most important thing (after actually finding a place to sit down for your meetings) and is assembling a compilation of networking events (and, well, yes, parties) in Barcelona. Make sure to check in on his post (which he will update) here.

Which concludes this week’s Carnival. Now get back to your work and if you are attending the Mobile Games Forum or the conference that starts the mobile build-up to this summer’s FIFA World Cup, namely M-Football (both in London), make sure to connect; I’ll be at both.

Image credit: http://cbertel.files.wordpress.com/2009/02/carnival-masks-2.jpg

Google & AdMob: Is that It?

On 14/11/2009, in 1, by Volker

It was an eventful week but I shall pick Google’s acquisition of AdMob as my top (well, maybe only #2) item. A game changer, the final acknowledgement of the power of mobile, there is a lot one can find to describe the deal and for all the right reasons:

The acquisition of Admob by Google shows Google’s commitment to “mobile, mobile, mobile”, which in itself is encouraging for the sector that is – despite a number of larger players evolving and despite the still relatively recent paradigm shift initiated by the iPhone – still fledgling. That in isolation makes it great news for the mobile sector!

From Google’s and Admob’s respective business perspectives, it appears to make eminent sense, too (and I am not privy to their numbers): Admob will be able to bulk up and cement its leadership position in the segment. Its inventory and back-end ad management will be able to dip into Google’s vast resources, which is great for them. Google probably realized that Admob’s strength meant that they would be difficult to beat. And who you can’t beat, you shall join (or, in Google’s case, buy) them. For Google, it is a smart move as it gives them critical mass in an ad format where they have not nearly been as dominant as for other formats and gives them access to a lot of eyeballs.

The eyeballs bit is, however, maybe the concerning piece of this: Google makes 97% of its revenues from its legacy business using AdSense, AdWords, etc. Nothing much has changed for a couple of years and it has miserably failed with a couple of acquisitions (anyone remembering “the 2 kings have gotten together” [1:00]?), YouTube is a great site but did Google maximize it (yet)? Probably not. Jaiku was more than just a worthy competitor to Twitter; they were history the moment Google bought them (well, it was eventually moved to Google’s App Engine but no one seems to have made much use of it).

As much as I admire Google, the company (where – get this -, when in new product development, you are allegedly judged by the number of failures you managed to produce! Very, very good and gutsy thinking!), it has to get its head around more “modern” approaches to marketing and engagement. Text and display ads alone won’t cut it in the long run… But, in any event, the combination with AdMob will give Google a little bit more of a runway to get this right and – smart companies both of them are – I am sure there is more than enough brain cells to get it right. All good!

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Carnival of the Mobilists # 195

On 13/10/2009, in 1, by Volker

Chetan Sharma’s blog Always On Real-Time Access is this week’s host for the Carnival of the Mobilists. This week’s edition features posts looking at mobile and social networking, mobile application development, 5 reasons why mobile VoIP has (so far?) failed, another iteration looking into the shortfalls of mobile advertising to date, a presentation on concepts and technologies behind real-time demand data, and last but not least – for all of us who weren’t there – a CTIA round-up. Lots of goodies, so go read it here.

Carnival of the Mobilists #194

On 05/10/2009, in 1, by Volker

Ahead of CTIA later this week, this edition of the Carnival of the Mobilists is being hosted by Tsahi Levent-Levi on his VoIP Survivor blog. This week brings an incredible line-up of topics and contributors: A couple of posts on mobile advertising (including mine pleading for engagement as a crucial factor of ad success), the ideal app store, mobile learning and a whole host on the use of mobile apps in the workplace (including one with a Blackberry in a bakery!) and corporate environment in general plus a look on service and feature requirements for mobile phones in the developing world.

All very good indeed! So head over and set aside a good hour to read! You’ll find it here.

The Future of Advertising is in Engagement!

On 03/10/2009, in 1, by Volker

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 August 2009

On 23/09/2009, in 1, by Volker

I had covered the monthly Scorecard for Mobile Advertising Reach and Targeting (what a mouthful) from Millenial Media before (see here for the May figures), so here’s an update on this (and note that these are all US-only figures). The firm covers just under 50m users, which seemingly represents 79% of the mobile web (but only 11 of the top 25 sites as per Nielsen). However, it should provide for a very decent overview of the state of advertising on the mobile web. So here it goes:

The first really noteworthy piece has not actually anything to do with advertising but with user satisfaction: would you actually have thought that users enjoy most things more when done on their smartphone than on their computer, including playing games and watching video? The computer only leads (and by a meager 2% higher rates) for web browsing (70% vs 68% on smartphones). Wow! Here’s the graph:

This is very encouraging and probably also owed to the market leader when it comes to ad impressions received on a mobile device, which is – moan – the iPhone of course. The last snapshot I covered had the Samsung Instinct in front but this has slipped back to a still respectable #3 now. Blackberry’s Curve takes 2nd place. Here’s the top 20 list:

Compared to their old format, Millenial Media is no longer spitting out a comprehensive chart showing the CPEU (cost per engaged user) per demographic/targeting method. They have adopted their proprietary “Mydas” tool, which appears to enable them to mix things together in an optimal way. It is understandable since this is their business but the look under the bonnet was great. Alas, no more. So here’s what we still learn:

  • iPhone and iPod Touch impressions are still growing with double-digit numbers (month on month they grew 68% in June, 29% in July and 15% in August).
  • Average monthly page views is 111 (up 5 views).
  • The top 20 phones (see above) make for 50.63% of all device traffic, which is drop by nearly 4% compared to the previous month.
  • A whopping 26.15% of all ad impressions were achieved on devices on a WiFi connection (bandwidth is king!).
  • Cost per Engaged User for audience targeting increased very significantly from ¢52 to $1.35, which is owing to Millenial’s aforementioned Mydas thing (or so they say). Most CPEU rates decreased however. Here’s the chart:

So what does it teach us? Well, due to the new format unfortunately less than previously… but then: I’d love to have that Mydas touch… ;-)

Fishlabs Slides to Advergaming Fame

On 24/07/2009, in 1, by Volker

Fishlabs, the German high-end 3D studio have long been one of my favourite developers (see here for a previous post). And with the ascent of the iPhone also appears to come the rapid rise to fame for them. Today, they have released numbers on one of their latest advergames, which they did for Barclaycard. For those not familiar: Barclaycard runs a large advertising campaign where a guy slides on a water slide through the city buying stuff whilst passing through markets, shops, etc. It took me a while to understand it (even though I am one of their customers) but it is to promote their new RFID-enabled credit cards.

Fishlabs produced an iPhone game for this (aptly called “Waterslide Extreme”). Interestingly, other than a Barclaycard logo on the main menu screen, I could not (yet) find any mention of the brand. Anyhow, Barclaycard seems to be super-happy as Fishlabs now has reported a whopping 2m downloads in one (!) week, which have generated 16m “engagement minutes”, presumably meaning that players engaged with the brand.

The – free – game is said to top the iPhone download charts in no less than 57 countries, including all the biggies like the US (where, reportedly, 54% of iPhone and iPod Touch users reside), the UK and Germany.

I just wonder if this is such good marketing (and I am not an advocate for unwanted in-your-face advertising at all): one mention of the brand (and very subtly, too) would surely make for only the most discrete of “engagements” with the brand.

So good on Fishlabs! But advertisers might want to consider giving these things a little more thought. Imagine the potential result for the image of the Barclaycard brand if, through a somewhat more thoughtful and smarter brand treatment, all of those 2m users would actually perceive it as a fun goodie brought to them by Barclaycard. Just to think of it… ;-)

When Mobile Advertising Does NOT work

On 13/07/2009, in 1, by Volker

I have just been killing time and played a game on my iPhone. A free one. One with little ads at the bottom, mainly asking you to download all sorts of apps and games. Powered by Admob. And what do I get? An ad in Dutch asking me to download Skype. Then one in French offering me a free game. To make it clear: I am in the UK and had been playing on a UK-sourced iPhone with an O2 UK SIM card. I am a foreigner in this country but I am neither Dutch nor French; in fact, neither the Dutch nor the French usually like to be thrown into one pot with Germans… ;-) .

Does anyone really think that this will work? And, moreover: what are ad “impressions” really worth when they only quite literally display, well, random stuff rather than ads people can also understand (for those unaware: being able to say “merci” with an even remotely foreign-sounding accent is considered a major linguistic accomplishment in this country)? In this context, AdMob’s recently reported numbers might be queried, I guess…

If advertising is to serve as a working alternative business model to paid downloads, then it is absolutely mandatory that advertising networks get their back-ends right. Depending on the ad model, simple ad fill might be enough for a publisher (if they are being paid by impressions; ECPM) but not if they are paid by click (CPC) but impressions of Dutch ads to Germans in the UK surely do not impress advertisers who are, after all, footing the bill!

I don’t know if this was a small glitch in AdMob’s systems or is more widely spread but I do hope it is the former.

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