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

Locally Targetted Mobile Advertising expected to climb to 78% of Mobile Ad spending

Mobile Ads To Hit $4 Billion By 2015

Locally targeted mobile ads will have a 70% share ($2.8 billion) of the expected $4 billion in overall U.S. mobile ad spending by 2015, according to Chantilly, Virginia-based BIA/Kelsey. In addition, total US mobile ad spending will balloon from $790 million in 2010 to $4 billion in 2015. Concurrently, the local portion of that total will increase from $404 million to $2.8 billion. Consequently, the advisory firm projects, locally targeted mobile ads will then make up 51% of overall US mobile ad spending, growing to 70% by 2015.

“Exploding mobile usage, clearer ROI and a shorter purchase funnel will accelerate this demand within display, search and SMS advertising formats,” the report reads. In 2010, overall U.S. mobile advertising was at $790 million. Local mobile advertising’s piece of the pie is $404 million — 51% of the whole mobile advertising market.

The gain is expected when large brand advertisers adapt their marketing goals for the mobile device. That’s thanks to a growing awareness of retail locations, driven by consumers’ increasing smartphone ownership. Once large advertisers move in, BIA/Kelsey says small and medium-sized businesses will also push marketing efforts on mobile. All advertisers will benefit from the clearer return on investment and shorter purchasing funnel.

Mobile advertising sellers will also garner premium pricing on location-targeted ads. Michael Boland, senior analyst and program director of BIA/Kelsey Mobile Local Media practice, stated: “These premiums result from higher performance for locally targeted mobile ads when compared with non-local ads, due to higher relevance, immediacy and consumer buying intent, all of which are more prevalent in mobile than many other print and digital media.”

Bottom Line: Further targeting coupled with LBS and Geo-Fencing advancements will drive an increase in local advertising. Advertisers quickly need to focus on capturing intent to deliver greater ROI on each placement. Mobile is very focused and directive and therefore conversion cannot be ignored.

Let QWASI develop a conversion strategy off your mobile display, in-app advertisements, SMS ads and other placements. For more information on mobile marketing or other QWASI services, contact us today @ 877-747-9274.

June 25, 2011 in Blog   |   No Comments

5 Billion Text Messages sent/received each month in the US. Mobile Messaging continues to show enormous uptake in SMS and MMS.

The Wireless Association (CTIA) today announced at it’s semi-annual conference its semi-annual survey results. Mobile messaging continues to grow in both text messaging (SMS) and multi-media messaging (commonly referred to by some as picture messaging or MMS).

THE HIGHLIGHTS
SMS/ Text Messaging Stats:
According to the survey, text messaging (SMS) continues to grow at an unprecedented rate: more than 822 billion text messages sent and received on carriers’ networks during the last half of 2009—amounting to almost 5 billion messages per day at the end of the year. During the 2009 calendar year, there were more than 1.5 trillion text messages reported on carriers’ networks.

MMS / Multi-Media Messaging Stats:
Wireless subscribers are also sending more pictures and other multimedia messages with their mobile devices—more than 24.2 billion MMS messages were reported for the last half of 2009. That’s more than double the number from the previous year, when only 9.3 billion were reported for the last half of 2008 – a growth of over 250% year over year growth. The growth in messaging take up is also fueling mobile marketing growth and adoption of mobile marketing by companies of all sizes.

Device Growth & Increase Data Connection:
There are now more than 257 million data-capable devices in consumers’ hands in the US – up from 228MM at the end of 2008: 50 Million are smart phones or wireless-enabled PDAs and nearly 12 million are wireless-enabled laptops, notebooks or aircards.

As of December 2009, more than 285 million wireless connections. This represents a year-over-year increase of more than 15 million.

“With wireless connections now equal to more than 91 percent of the U.S. population, mobile broadband is pivotal to ensuring all Americans are ‘digitally literate’. CTIA’s survey results show the wireless ecosystem is constantly reinventing itself, and other industries, to be more productive and efficient” said Steve Largent, president and CEO of CTIA -The Wireless Association. “Mobile broadband will increasingly play a vital role in people’s lives.”

People Still Making Calls:
Other highlights included wireless customers using more than 1.12 trillion minutes in the last half of 2009, up 38 billion from the last half of 2008—and breaking down to 6.1 billion minutes-of-use per day. Wireless service revenues for the last half of 2009 amounted to almost $77 billion—up from a little more than $75 billion in the last half of 2008.

The CTIA Semi-Annual Wireless Industry Survey results were released at International CTIA WIRELESS 2010. For more survey information, please visit: http://www.ctia.org/advocacy/research/index.cfm/AID/10316

POSTED: March 23, 2010 (LIVE FROM CTIA)

March 23, 2010 in Blog   |   2 Comments

SMS Preferred Mode of Communication on Mobile

New research continues to point to huge increases in preference for SMS over other forms of mobile communication.

According to a survey conducted by Tekelec (a messaging company powering telecom operator applications), 60% of 45 year olds were found to be just as likely to use SMS as they were to make voice calls from their mobile device. The survey of 500 people in North American and Europe also found that text messaging is gaining on email as the preferred means of daily international communication, with 32% of responses across all ages preferring SMS, compared to 33% for email. And nearly a third of respondents said their use of SMS would increase in 2010.

In addition, more than 80 percent of respondents across all age groups thought they would get a quicker response from a text than from an email or voice message. Women preferred to let their fingers do the talking, with 40% describing themselves as ‘mainly texter’, compared to 30% of men.

One more difference between the sexes: women were more likely to engage in TV voting via text, with 25% versus just 14% of men engaging in such behavior.

But those under 35 were the most likely age group to vote via text, with 16% of them saying they do so, followed by 9% of 35-44 year olds, and 7% of those 45 and older. However, 35-44 year olds are the largest consumers of news and sports by text at 18% compared to 17% for those under 35, and only 8% for those over 45.

SMS – A look ahead at growth for M2M (machine-to-machine)

AT&T and Verizon Wireless nearly doubled their text message traffic from third-quarter 2008 to third-quarter 2009, showing that SMS continues to become even more pervasive.

While person-to-person (P2P) messages will keep increasing, the next major growth area is in fact machine-to-machine (M2M) SMS.

ABI Research recently released data showing that M2M SMS and MMS message volume will have a compound annual growth rate of 40.06 percent from 2008 to 2014 (“Mobile Messaging Services: SMS, MMS, Mobile Email, and Mobile IM,” 4Q 2009).

Brands can capitalize on SMS M2M to more rapidly meet their customers’ needs. For example, vending machines located anywhere with cellular reception can send texts when inventory is low, rapidly and affordably assuring that goods remain in stock. M2M will open up an entirely new growth area as new solutions focused on cost savings emerge.

Bottom Line: SMS & M2M will bring huge growth in mobile over the next decade as consumer prefer SMS for their mobile communication.

January 12, 2010 in Blog   |   1 Comment

Mobile Marketing Center Lets Companies Reach On-The-Go Consumers In 2010

QWASI updates its integrated mobile marketing platform to provide superior mobile marketing services to its clients.

PHILADELPHIA, January 7, 2010 – QWASI Inc., one of the leading enterprise mobile marketing application companies providing interactive mobile solutions for the US mobile market and small and medium-sized businesses (the SMB market), announced today the official launch of the QWASI Mobile Marketing Center 2.0. With this release, it’s never been easier to build, manage and analyze mobile marketing campaigns through a self-managed online portal. Companies of any size can seize the opportunity of enterprise features that mobile marketing offers through the power of QWASI’s mobile marketing platform.

With twice as many users of SMS than email globally and over 125 billion text messages sent every month in the United States, 45% of brands have already deployed text messaging campaigns, with a projection of 89% planned to go to market by 2010. There has never been a more important time to engage customers via the mobile communication channel. QWASI is committed to helping clients and companies navigate effectively through the mobile landscape as they reach SMB consumers on-the-go. The QWASI Mobile Marketing Center 2.0 now provides its clients with the platform that will help to launch their campaigns into the mobile marketing space and realize the power of mobile.

QWASI provides its clients with a variety of key services designed to better promote marketing campaigns with mobile services. With the ability to quickly set up interactive text messaging and mobile campaigns from any browser, QWASI gives its clients the power to control their own interactive mobile marketing solutions.

The QWASI Mobile Marketing Center 2.0 provides such popular features and new services including:
• SMS Auto Responders (NEW): Power drip marketing via text messaging to opt-in users.
• Info-on-Demand: Providing information via custom Keywords. Capture opt-in users for future message blasts including email addresses (NEW).
• Blasts / Alerts: Send text messages to subscribers. Keep customers informed of promotions, offers & events.
• Mobile Coupons: Distribute coupons to potential customers who have opted-in to receive your promotions. Track usage with Promo Codes (NEW).
• Text-to-Win: Enable potential customers to text in a special keyword to instantly enter-to-win a prize.
• Text-to-Vote: Have interested customers text to vote on a topic and provide real-time results.
• Ringtones, Wallpapers & Mobile Video: Deliver rich content to customers with MMS and mobile downloads.
• Website Widget: Build a subscriber list from web-widgets .
• Custom Applications: The Marketing Center API allows companies to build any custom mobile messaging application.

“Many of our new features in this release have been in use for QWASI enterprise clients. We’re now making them available to small and medium size companies to leverage the mobile channel,” states David Geipel, COO and Co-Founder of QWASI, Inc. “We enable companies to power a simple mobile campaign and provide them with tools that connect companies with their customers. We’ve seen an insurgence of companies desiring to utilize a short code to power one-to-one mobile messaging. With the Mobile Marketing Center API, we’re also enabling other companies to power highly interactive campaigns using the same API our platform uses. QWASI has been providing successful and cost effective mobile campaigns for over 5 years.”

QWASI’s Mobile Marketing Center 2.0 also enables companies to white-label a powerful mobile marketing platform using a shared short code provisioned on wireless carriers including Alltel, AT&T, Boost, Centennial, Cellular One, Dobson, Immix, Nextel, Sprint, T-Mobile, Virgin, Verizon and other second and third tier carriers. The platform provides companies the ability to give their clients access to further provide control over their marketing campaigns. In addition, the service can be connected using a dedicated short code (vanity or random).

ABOUT QWASI
QWASI, Inc, is a leading mobile solutions provider of interactive applications for clients across the US utilizing SMS (text messaging), MMS, WAP and iPhone applications, QWASI makes complexity to simple with mobile marketing, mCommerce (mobile commerce), private label mobile search tools, click-to-chat, click-to-text, Mobile IM (MIM) applications, interactive property marketing services and customized alerting for Fortune 1000 businesses.

QWASI CONTACT
Patricia Scanlon, QWASI, 877-747-9274, patricia.scanlon @ qwasi.com

January 7, 2010 in Press Releases   |   No Comments