Mobile Payment transactions to reach $670 Billion by 2015

According to a new study by Juniper Research, the value of NFC purchases or “near-field communications” will reach $670 billion by 2015 for mobile-sourced money transfers, and mobile payments for digital and physical goods.

That’s represents a shift upward from the $240 billion Juniper Research has predicted for the total value of mobile payments in 2011. Juniper finds that during the next 18 months, 20 countries will begin deploying NFC payment systems and services; transactions from those services will be in the ballpark of $50 billion by 2014.

The new Mobile Payments Strategies report revealed that all segments will exhibit 2x to 3x growth over the next five years. This growth will be driven by the rapid adoption of mobile ticketing, NFC contactless payments, physical goods purchases and money transfers as people in both developed and developing countries use their devices for everyday transactions.

Recently, Google announced its Google Wallet and Google Deals services in the U.S., and the search giant has large retail partners on board, including Citi, Subway, Mastercard, Sprint, Macys, and Walgreens. The Far East and China, Western Europe, and North America are the largest mobile payment regions, and those areas “will represent 75% of the global mobile payment gross transaction value by 2015,” the report said. Read on for the full release from Juniper Research.

READ MORE: Click here.

July 5, 2011 in Blog   |   No Comments

Consumers to Spend $2.1 Trillion on Digital Information and Entertainment Products and Services in 2011 Worldwide

Gartner Research firm has found that consumers are on track to spend a record $2.1 trillion on digital information and entertainment products this year. That figure is expected to hit $2.8 trillion by 2015. $1.2 trillion — 62% — is spent on subscription-based communication services such as mobile, voice, and data services, broadband packages, video services, online gaming, and cable TV subscriptions.

28% of that total $2.1 trillion or $600 billion is spent on devices themselves, and 10% is spent on content such as computer software, video on-demand, and pay-per-view services. “The three key technology areas that will offer the best opportunity for vendors during the next three years are:

1) Wireless Broadband – which will enable constant connectivity;
2) Location-based services (LBS) - which will personalize and take advantage of the constant connected state; and
3) Operating systems – which are the foundation for integration applications that can bring it all together.

The total consumer spend is expected to increase to $2.8 trillion by 2015, according to Gartner, Inc. Worldwide consumer spending on digital information and entertainment products and services is projected to reach $2.1 trillion in 2011.

The trend among vendors to offer a diversified portfolio of products and/or services puts them in a better position to seize a larger share of the consumer wallet. Gartner defines consumer wallet spending as the money spent by consumers for digital technology devices and services that are for accessing, consuming and creating content. This wallet is divided into three basic spending types — content, devices and services.

“While a vendor can be a leader in specializing within just one segment of the consumer wallet, there are a mounting number of examples that suggest diversification may be the optimal path forward in the consumer electronics industry,” said Amanda Sabia, principal research analyst at Gartner. “Vendors that diversify their offerings across multiple consumer spending segments earn revenue across the full ecosystem and take legacy services to transform to newer products and services.”

“There are two basic strategies that vendors have used to capture consumer spending that will enable their interconnected consumer experience,” said Mikako Kitagawa, principal research analyst at Gartner. “The first is to concentrate in one consumer spending segment, and the second is to diversify into other consumer spending segments.”

“The challenge to vendors choosing to be hyper-focused on one wallet spending segment is the relentless pursuit of innovation required to maintain segment sales leadership in this one specific segment,” Ms. Kitagawa said.

“Technology innovation opens windows of opportunity for vendors to consider diversification,” said Ms. Kitagawa. “However, technology innovation also opens a window for change among consumers to switch vendors in the pursuit of cost savings or lifestyle-changing technology.”

“The three key technology areas that will offer the best opportunity for vendors during the next three years are: wireless broadband, which will enable constant connectivity; location-based services (LBS), which will personalize and take advantage of the constant connected state; and operating systems, which are the foundation for integration applications that can bring it all together.”

Additional information is available in the Gartner report “Market Trends: Diversification Trends Capture More of Consumer Technology Spending.” The report presents what products and services make up the consumer wallet, and a high-level analysis of the varying strategies to capture that spending within and among the various segments.

June 28, 2011 in Blog   |   No Comments

Mobile Marketing best at fostering brand-consumer relationships

Research finds most retailers have still not adopted a mobile strategy.

While reading Response Magazine the other day, I ran into a few articles that looked at the adoption of mobile at various retailers. While nothing shocks me, it still resonates that most businesses are operating without a concerted mobile and social strategy.

Consider some of these statistics:

• Only 33 percent of businesses currently have a mobile strategy in place. All respondents to a survey suggested they plan on having one in the next 12 months (source: King Fish Media).
• Less than 20 percent are currently conducting mobile commerce, mainly through the mobile web, and respondents suggest it will grow next year – in 2012.
• 24 percent reported that their mobile strategy “exceeded or performed as expected” while another 30% had not measured it at all.
• 34-percent of the group said they would be keeping track of results.

As retail continues to embrace mobile marketing and mobile commerce, data analytics and reporting will become the focus and centerpiece for this key channel. Another statistic from the survey also found that forty-one percent of those surveyed said “future mobile marketing programs will need to show a positive return” for them to continue with such initiatives. Without key metrics in place, it will be like the wild-west with direct response and brand marketers shooting into the air versus shooting fish in a bucket.

At QWASI, we recently unveiled our updated Synchrosy Methodology for enterprise clients. Specifically within retail, we have had great success helping our clients analyze their business through a variety of lenses and then we create solutions that drive the desired interaction and/or transaction. It is different for each business, so our engagement approach varies too. However, based on the variety of ROI metrics retailers embrace, it’s most effective for their management team to monitor and track while staying in the drivers seat running their day-to-day business.

We hope you’d give us a chance to introduce your business to Synchrosy and drive results with a fresh, innovative and results-oriented mobile and social strategy.

May 26, 2011 in Blog   |   No Comments

Moms take to their mobile phones for while Shopping

A new research study by Greystripe finds a majority of moms, over 66 percent, now use their devices in the shopping process. Greystripe collected the data from its expansive network of touch devices during a three-month period from November 16, 2010 to February 15, 2011.

The research report found other trends on smartphone moms including:
• 45% use their smartphone to locate the nearest store
• 36% use their phone for price comparison
• 31% percent use their phone for new product research

Besides the many functional purposes of a smartphone for a mom juggling multiple tasks, many of the women surveyed also use their iPhone or Android to save money. The study found that 57 percent of smartphone moms use coupons every time they shop.

For many smartphone moms, grocery shopping is also facilitated through their handy mobile device. The study found that 42 percent of smartphone moms use their smartphone while grocery shopping, in a variety of ways.
• 32% use their smartphones for shopping lists
• 21% use their smartphone to look up recipes
• 14% use their smartphone to do a price comparison

Greystripe’s research also found smartphone moms are receptive to advertising – 55% indicated that advertising plays a role in their purchasing decisions and 91% prefer free apps with ads over paid apps without ads. As moms on the go learn how to use their smartphones to make smarter decisions at the store, usage will only increase over time.

About the Survey: This research is based on data Greystripe gathered from 239 women with children on iPhone, iPod Touch and Android devices on its network from November 16, 2010 through February 15, 2011. For the complete study, click here.

May 16, 2011 in Blog   |   No Comments

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