Games are Most Downloaded and Most Purchased Mobile Apps

Nielsen recently published their findings on how consumers are using Mobile Apps. It didn’t come as a big surprise to find that games were the most downloaded and purchased mobile apps on today’s smartphones. The market research firm on Wednesday published findings from its recent Mobile Insights and Mobile Apps Playbook for the second quarter 2011 and “Games” was once again the most popular app category.

They found that 64% of app downloaders – smartphone users surveyed who had downloaded an app within the past 30 days – reported having downloaded at least one game over the past 30 days, just ahead of weather apps at 60% and social networking apps at 56%.

What’s more, a whopping 93% of app downloaders are willing to pay for the games they play. iPhone owners seem appear to be the most avid gamers too – iPhone gamers play games for about 14.7 hours on average each month which is nearly twice as long as the average mobile gamer last quarter.

Nielsen also found that consumers with iPhones, Windows Phones or Android phones were likely to have downloaded the games they play, while BlackBerry users and feature phone users typically played pre-loaded games.

FULL REPORT: Click here.

July 6, 2011 in Blog   |   No Comments

2011 Mobile Budgets allocating "More Mobile"

As the end of the third quarter comes to a close this year, corporate budgets are being reviewed and Mobile is finally getting respect within the organization from the top down. However, as this new channel continues to grow, departments are beginning to take a closer look at where they can grow and how they can save using mobile messaging, marketing and mobile apps.

In the past, most marketers took from digital budgets to fund a mobile.

For 2011, budgets have grown from single campaigns to funding a complete mobile strategy. This has created the need to create a new line item on the budget so companies can graduate mobile from an “emerging technology” to a proven channel – it’s own format.

WRESTLING BUDGETS
How are companies wrestling money from other budgets? Many take it from digital budgets. That type of thinking though is short sighted as digital marketing and interactive services all achieve different goals to drive sales, increase retention and even reclaim lost revenue through cost savings. Many agencies are adding to the complex budget process by pulling in dollars for their “digital agency” where these monies typically get put into distinct components of a budget leaving little room for mobile. What is fueling most of the mobile spend within these agencies is shifting the budget from traditional media to digital.

THE SHIFT
As spending shifts from traditional media to digital media and mobile, new lines will be expanded on budgets to better clarify the type of spending. This will lead to a greater need for mobile analytics and reporting. How much is my iPhone App generating? What is the ROI for my Mobile Advertising campaigns? What is the lift in spend from my customers receiving SMS Alerts on a daily basis? ROI tracking will become another budget requirement within the digital category. While many agencies push back on measurement, studies and direct spend to return calculations, companies will demand greater oversight and results from their investments.

According to a MMA (Mobile Marketing Association) survey released in June 2010, they found that marketers in the US plan to increase spending on mobile 124% next year – up from $2.3 billion to $5.5 billion – with a budget allocation for mobile representing almost 4% of overall marketing budgets. That total includes paid and unpaid mobile segments including SMS, mobile websites, location-based services, mobile video and mobile email. Forrester, on the contrary predicts US spending on mobile marketing will grow from $561 million this year to $748 million in 2011.

It’s time to start planning your 2011. It’s time to get MORE mobile.

September 13, 2010 in Blog   |   1 Comment

74% Of Online Retailers Planning Their Mobile Advertising & Mobile Marketing Strategy

Mobile quickly to become important part of Cross-Channel Marketing Efforts

Online retailers have quickly sized up the mobile opportunity and the potential it holds to engaging a mobile advertising strategy to supplement their efforts according to a new report published by Forrester. Focus is on multi-channel marketing efforts including social and mobile marketing.

Nearly three-quarters (74%) of online retailers either already have or are developing a mobile strategy, and one in five boasts having a fully-implemented mobile strategy in place already. The report forecasts $170,000 per online retailer is expected to be spent on mobile sites this year with larger retailers spending much more. This ”mobile investment is modest now, but we see that it will pick up in the future, especially among the biggest brands that have already invested significant amounts in their mobile operations,” said Sucharita Mulpuru, Vice President, Principal Analyst, Forrester Research, and lead author of the “The State of Retailing Online” report.

The survey of 109 companies provides e-business professionals with an annual industry benchmark for marketing and business investment and activities. Earlier this year, Forrester forecast U.S. online retail sales to total $173 billion in 2010. According to the report, Web retailers with mobile strategies are investing in features that support the cross-channel experience: Product and price information, store information and coupons to support the in-store experience are among the most popular features that retailers are offering consumers, the report said.

SOCIAL MARKETING
Forrester noted that search advertising will continue to command the largest portion of US online retail budgets this year, coming in at 40 percent, while email and affiliate marketing will also command large portions, the report notes. The report also found while retailers are finding value in social media marketing, the return on investment (ROI) for driving online sales remains murky. Listening to customers is the most significant objective for social tools according to respondents, with 80 percent of retailers reporting that they are pursuing social strategies to experiment and learn. And while 28 percent noted that social marketing has helped grow their business, direct sales from social tactics are not widely measured. The same can’t be said about mobile advertising, where ROI is easily measurable and obtained.

Digital marketing in general is quickly becoming centered around the art of “integrated communications,” whereby numerous channels are utilized to work off the strengths and weaknesses of one another. With mobile coming to the forefront, Online retailers need to quickly diversify their strategy to maintain relevancy.

“Mobile investment is modest now, but we see that it will pick up in the future, especially among the biggest brands that have already invested significant amounts in their mobile operations,” concluded Sucharita Mulpuru, vice president and principal analyst for Forrester Research and the lead author of the report.

Bottom Line: For most retailers as they make a surge into mobile, don’t forget that it starts with SMS and Text Messaging first, then an App to compliment the strategy. Also, read Mobile Messaging article and other mobile commerce services including interactive sms apps and device apps for iPhone, Droid, Blackberry and more.

June 30, 2010 in Blog   |   No Comments

Mobile Messaging & Mobile Web before an App

Everyday, we at QWASI are asked by many leading brands where mobile is moving and how they should embrace mobile marketing and mobile communication. We always have to ask a simple question: What are you doing today to reach today’s mobile consumer?

The first reaction is either something like this: “Well, we’re starting to think about an iPhone App and maybe a Blackberry or Android App by the end of the year”… OR they simple respond “We have an iPhone App and we think it’s great.” It’s almost so predictable that its easy to write it down on a piece of paper before asking the question and then passing across the table and asking how close you were to guessing their response.

Here’s the problem with having just an App: it should never be the “your mobile strategy” or solution to having a mobile channel. Why? It’s simple: Mobile App usage trails mobile web and mobile messaging.

TEXT MESSAGING REIGNS SUPREME
The most popular activity for the average cell phone user is Text Messaging. It’s then followed by mobile web access and then Apps. Text Messaging reigns supreme because of two simple forces: reach and usage.

Nearly every mobile phone in the U.S. is text messaging enable. To send or receive a text message, you do not need a smart phone (Blackberry, iPhone or Android device). In the US, only 18% of all phones are smartphones. Within the next 2-3 years, Juniper Research predicts that smartphone usage worldwide will only account for just 23 percent of all new handsets sold. That means that main population in a few years will still not have enhanced capabilities of using Apps.

MULTIPLE PLATFORMS: IPHONE, BLACKBERRY, ANDROID (and SEVERAL OTHERS)
When a company considers launching an App, they typically go right to the iPhone. A recent Nielsen survey found that Apple dominates app downloads with a 25 percent market share. However, the iPhone only represents 4 percent of the entire mobile market. And in the US, it’s currently still only available on AT&T network. If you’re looking to launch an App, consider this – Nielsen has identified more than 10 major app stores for your App. That means developing across several platforms that differ in the use of libraries, code and submissions (to get the application approved and added to the app store).

USAGE
We return back to text messaging for ease of development and uniform customer experience because it is used more than Apps. According to Pinch Media, the vast majority of apps downloaded from the App Store are in use by less than 5% of users after one month has passed since it was downloaded. Just 20% of users even return to run a free application again the day after it’s downloaded. As time goes on, that decline continues, eventually settling below five percent at the one month elapsed mark and nearing zero after three months. According to Strategy Analytics (October 2009) only four to six mobile apps are used on a consistent basis.

Furthermore, if you create an iPhone App, you will be one of over 180,000 Apps available in the Apple App Store (as of March 2010). It’s such a competitive share of mindshare and space is limited on the phone’s screen. The iPhone for example offers 10 pages of Apps, but many people never make it past their third screen to even get to your app if it’s not up front. I would argue that we’ve hit the saturation point for most users. Why? Because of a simple litmus test called utility. If your App provides utlity to the end user, they will continue to use it to connect to people, places, information and entertainment. An App with a few stars or a low rating really does indicate how most end users will think and use the app.

SIMPLE IS OFTEN BEST
Most companies dismiss SMS or Text Messaging for two reasons: simplicity and cost. Let’s examine each.

First, a text message is limited to 160 characters. Every space counts. Creative wording is often required to communicate the message. However, it can also include a phone number or link to a mobile website or information page optimized for mobile phones. In it’s simplicity lies it’s strength.

• Delivered – each SMS using carrier-grade messaging is delivered

• Read – almost 95% or all text messages are read by end users

• Direct – often provides a preview w/o reading the entire message

• Concise – read and take action in seconds

• Easy-to-Read – most of the message fits on the screen

• Link-Enabled – ability to point to a Mobile Website

• Call-Enabled – include a phone number to call

More reasons why simple is often best. A single text message can easily be forwarded to a friend or posted to a social network. SMS can be interactive providing two-way messaging features included information on demand, mobile coupons, mobile ticketing, surveys, voting and polling. Finally, with a list of opt-in users, messaging can be sent out to users via blasts, notifications and alerts.

The other hesitancy by brands in using text messaging for marketing is the cost factor of an SMS. Companies often are quick to sign off on large budgets to build mobile Apps, yet never conduct a full cost analysis of SMS and Text Messaging to evaluate how it scales over a longer period of time while achieving greater usage and take up. Sure, a text message can cost a few pennies per message, however, during an ROI analysis, it’s easy to see how it pays itself back with the value it provides customers to connect with the Brand in building some of the strongest one-to-one relationships possible.

MOBILE METHODOLOGY (see the QWASI Mobile Methodology)
Don’t be so quick to rule out Text Message Marketing (SMS) or the Mobile Web.

Build out your mobile site. Offer Mobile Messaging. Then build specialty apps that provide usefulness for your customer. And don’t neglect voice as part of your mobile strategy.

Let QWASI help you build out your mobile channel today.

About the Author:
David Geipel is COO & Founder of QWASI (http://www.qwasi.com). You can reach him at dgeipel at qwasi.com or chat with him – text DAVE to 79274 (QWASI).

April 5, 2010 in Blog   |   1 Comment

Apple and the new frontier of iCommerce

How Apple created and continues to innovate the digital marketplace of tomorrow.

COMMENTARY: I loved my Zune 30 – a music device introduced by Microsoft in 2006. It was a great MP3 player. The first generation Zune was a 30GB model in black. I loved it so much that I ended up buying one for my wife, in white, the next year. After purchasing my Zune, I then proceeded to spend just as much on accessorizing it as I did on the device itself! As we all know, accessories alone- from gels to screen protectors- are multi-billion-dollar industries. From there, the focus shifts to power sources, because of course you need a power cord for your computer (USB) and for your car so you don’t run out of juice. Speaking of your car – where you listen to your tunes- you’ll need an adapter for the audio system (unless your car has an accessory jack and AUX input, in which case you will need yet another cord). And finally, you’ll want to be able to listen to your tunes in your office or around the house. You don’t want to be rude and walk around the house jamming to the latest download with your headphones. However, if you’re a teen, then not having a pair of headphone in your ears probably never occurred to you.

Aside from all of these “additions” that I did not consider prior to my purchase, I could not have been happier with my Zune. I liked the interface, software and storage it offered, which is appropriate because at the time I was considered a full-fledged PC guy. Until one day, when my Zune took a swim in the reservoir of my coffee pot. It was all downhill from there.

Today, as I type this on my silver Macbook Pro, I should clarify that my “full conversion” to a MAC Guy began with my iPhone. While deciding whether or not to replace my beloved Zune, I was enticed to consider the iPod. I ended up with an iPhone instead, converted to iTunes (proprietary formats and interface) and eventually purchased said Macbook. See, I told you it was a slippery slope.

I had fought getting a Mac for years. I use my laptop for more than 12 hours a day, causing me to chew through one a year, regardless of brand or price range. My experience with the longevity of my iPhone is what ultimately led me to consider the Macbook, and I will never look back. Call this my brief testimonial for Apple; a simple story of how one PC Guy became a Mac Guy and a diehard Apple fan. I attribute 80% of my Apple conversion to the iPhone. Without my iPhone, I would still not understand why everyone has become so gaga over Apple. Now, anything Apple releases, I have to contemplate adding it to my wish list, considering how it will make my work and play easier and more enjoyable.

Many ask me if I like my iTunes software compared to Zune. The answer is a resounding “NO.” While Microsoft seems to have every step of the process ironed out and has proved to be successful, iTunes remains difficult for first-timers to navigate through even simple tasks. However, once you master iTunes on your computer or iPhone, making a purchase is simple and repeat purchases are even easier with a click of a button. In my opinion, Apple still needs to fix some snags before iTunes grows into an even larger online marketplace.

So how does Apple continue to grow despite a weak application called iTunes? Simple: sexy devices that you can’t put down and great marketing. They are smooth, slick, and intuitive, impressive to almost everyone. And they are driving commerce. The iTunes software can only improve, and I have confidence that as it evolves with new downloads and digital content, purchases will increase, as will Apple’s dominance as a retailer.

Let’s take a look at a brief history on how Apple (and the iPod) revolutionized digital purchases.

The iPod came on the scene in 2001 (and was met with great skepticism regarding Apple and their business model). By 2009, the skeptics long since silenced, iPod and iTunes sales added more than $12 Billion to Apple’s revenue. What Apple accomplished helped to change the way music is bought and sold. Remember the days you could go to the mall and buy the latest cassette tape and then CD from a “record store” such as Coconuts, Strawberries, Planet Music or Tower Records? And while you can still find a few F.Y.E and Suncoast stores at some malls, I wonder for how long. With the introduction of the iPhone, physical media has been dealt the final blow and is becoming obsolete. Apple developed an empire that created a new segment of the market: highly interactive phones that included touch screens and mobile marketplaces for Music, Books and Apps.

In September 2009, Apple announced that it has sold more than 30,000,000 iPhones. Over 2 billion app downloads, with 100 million accounts with credit cards and 8.5 billion songs sold. Apple currently has 73.8 percent of the Music Device market (followed by 18 percent held by “other,” SanDisk with around 7.2 percent and Microsoft about 1.1 percent share). Apple has also shown, with its own data, that 50 percent of new iPod sales are to new customers (those who haven’t previously owned one) and the total number of iPods sold is closing in on 225 million units.

So how does this story about my Zune and iPhone continue as we begin this new decade?

With the launch date of the Apple iPad upon us, the same company that dominates the music device category is looking to do the same with tablet or slate devices. Their digital sales will continue to propel their business, as others like Amazon and Microsoft (don’t count them out….yet) work to overthrow the Apple empire. The battle is really not about music, books or movies. For Apple, it’s all about iCommerce.

So what’s on the horizon? High definition investments in each home have significantly driven the bottom line for companies like Best Buy and WalMart. And it hasn’t escaped the attention of those who deliver content to your home, such as cable companies and even Verizon (with their FIOS service).

Xfinity (Comcast) is working on new technology to further exploit their relationships with subscribers (a brilliant subscription model). They are actively working on new ways to provide an even better experience for those people adding new devices to their televisions, ranging from networked Blu-ray players to computers running Windows 7 Media Center equipped with a cable card. Verizon’s FIOS now sports Facebook and Twitter integrated into their service so you can multi-task and tweet or post a status update. And don’t forget leveraging TV content through online and device distribution.

A recent DirectTV commercial that showed a bank hold-up with a guy on the floor using his phone to tell his TV to record a show is a great example of the power of mobile access. That’s one example of building a ubiquitous network. What about activating each device the cable subscriber uses in and outside the home from the computer to mobile phone to their new iPad? Now that’s bringing it all together. It’s quickly moving into the “cloud” and a device like the iPad is helping to make that push and thrust for the industry with Touch, Social Connections, Location-based, Tablet, Wireless and Commerce.

The battle now is brewing over devices and distribution of all kinds from advertising to content. And yes, including video – even your TV will soon reclaim center stage appearances again as it becomes more interactive and connected. You will see that the new frontier will be centered around connected devices. And who can we count on to be right in the middle of the commerce war? Why Apple, of course.

And may the best one win – the consumer!

THIS ARTICLE WAS PUBLISHED IN MOBILE MARKETER. Read it here.

About the Author:
David Geipel is COO & Founder of QWASI (http://www.qwasi.com). You can reach him at dgeipel at qwasi.com or chat with him – text DAVE to 79274 (QWASI).

NOTE: This is not an endorsement for Apple. We consider them to be the leading innovator today for consumer adoption of interactive commerce. The iPad debuts at Apple stores on April 3, 2010. Start standing in line now.

April 1, 2010 in Blog   |   No Comments