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ToonsWare
Sep 28

According to a recent Compete Smartphone Intelligence survey, with insights into how consumers are using their iPhones and other “smart” devices, smartphone owners agree on their favorite types of applications; entertainment, games, music, social networking and weather are the most popular across platforms.

The survey data shows that smartphone owners prefer personal and social apps to business applications and are relatively open to targeted ads. iPhone owners, more so than other smartphone users, were more likely to spend money on apps., while 83% of all smartphone users preferred apps $5 or below. Key findings include:

•       73% of Blackberry owners have downloaded 5 or fewer applications; in contrast, 72% of iPhone owners have downloaded 10 or more applications

•       Facebook is hot among iPhone owners: 71% of iPhone users report accessing Facebook from their mobile device, 37% listed Facebook as one of their top three most utilized apps and 18% claim it’s their favorite app.

•       30% of all smartphone owners are either comfortable or very comfortable receiving targeted marketing on their device

•       Despite Twitter’s ever-increasing mobile popularity, 85% of smartphone owners still prefer to access the site from the computer, while 26% of iPhone users tweet from their device, only 15% of Palm owners and 10% of Blackberry devotees report accessing Twitter on the go

•       Of the smartphone owners who do access Twitter via their phones, 41% use the application to keep track of what their friends are doing, 32% use the service to keep up with current events and 19% tweet from their handset to build a fan base or promote their company

•       Nearly half of smartphone owners are receptive to location-based targeted ad offers at restaurants and offers to save and pursue at their leisure, and 45% would use mobile grocery coupons

Danielle Nohe, director of telecommunications and media for Compete, notes that“…  the iPhone has taken an early lead in getting owners to adopt app functionality and make popular applications a part of their daily lives… once users are hooked, they’re very unlikely to give up their device… “

Facebook is the most heavily trafficked social networking site among smartphone owners, says the report, and iPhone users are twice as likely to use the mobile Facebook app as their Palm counterparts. In fact, iPhone owners are the most active mobile social networkers, with the highest percentage of respondents reporting mobile use of Facebook, MySpace and Twitter and from their mobile devices.

Accounts Holders With Social Networking Websites and Accessed from Smartphone (% of Respondents)

Social Site

Smartphone Type Facebook MySpace Classmates.com Twitter Linkedin
IPhone

71%

22

4

26

5

Blackberry

44

19

3

10

4

Palm

33

17

5

15

1

Total

45

19

4

15

3

Source: Compete, September 2009

Despite Twitter’s ever-increasing mobile popularity, 85% of smartphone owners still prefer to access the site from the computer:

•       26% of iPhone users tweet from their device

•       15% of Palm owners access Twitter on their smartphone

•       10% of Blackberry owners report accessing Twitter on the go

Of the smartphone owners who do access Twitter via their phones:

•       41% use the application to keep track of what their friends are doing

•       32% use the service to keep up with current events

•       19% tweet from their handset to build a fan base or promote their company

Impulse and leisure purchases tend to be offers that make the best candidates for marketers trying to reach networked consumers rather than big, highly considered ones. Nearly half of smartphone owners are receptive to location-based offers at restaurants and offers to save and pursue at their leisure, and 45% would use mobile grocery coupons.

Offers Most Interested in Receiving on Wireless Device (Ranked First or Second out of Five; % of Respondents)
Offer Desired % of Respondents
Location based restaurant offers

46%

Offers to save or pursue later

46

Grocery coupons

45

Flight, hotel, rental car check-in with bar code

44

Special pricing for local movies

44

Location based promotion (close)

42

Discounts on travel sites

34

Offers synched to personal schedule

29

Source: Compete, September 2009

To learn more about Smartphone Intelligence please visit Compete here.

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Sep 21

Hotels need to be in the app game or risk losing ground to tech-forward competitors.

by Beth Kormanik

iPhones

iPhone apps

You may be right if you think the apps for smartphones like the iPhone or Android are passing phases. But that doesn’t mean you can afford to sit this one out.

PhoCusWright’s senior corporate and technology analyst, Norm Rose, said the market is only growing for consumers who use smartphones, and they want to use them to make travel decisions. Rose presented his conclusions in a Webinar this week called “The iPhone and the Future of Mobile Travel Applications.” He also is co-author of PhoCusWright’s Mobile: The Next Platform for Travel.

Rose predicted that the craze over apps may last only four or five years, but they will be crucial. Hotels and other hospitality-related industries need to plan a smart mobile strategy that will bridge the near- and long-term. Part of that is cementing your mobile brand in the minds of consumers so they stay loyal to your brand in the future.

“The message for the travel industry is the mobile revolution is not just another channel,” Rose said. “Most have thought it as just another touch point, when in fact it’s a new platform. It enables different and innovative personal interaction and the information needs to be filtered in a certain way for it to be relevant.”

An instructive example of what happens when established companies fail to innovate can be seen in the rise of Expedia and Travelocity at the start of the dot-com boom.
When hotel chains failed to deliver robust Web sites with online booking capabilities, they opened the door for online travel agencies to enter the marketplace and earn the loyalty of customers. The same thing could happen with mobile apps.

In May 2009, Apple’s App Store listed more than 2,000 travel applications, making travel the fifth-largest category. When travel-related apps such as subway maps or weather forecasters are added, it rises to the No. 4 spot.

“Travel companies need to drive the development of location and situation-centric travel downloadable apps to ensure that third parties don’t emerge as new players in the travel distribution chain,” Rose said.

He cited Choice Hotels as a good example of a chain offering one application that serves multiple brands. He said it was an easy-to-use site that offers hotel options based on location. Alternative lodging options also are taking advantage of the app craze, he said, citing InnTouch Bed and Breakfast Locator and Hostel Hero.

The sheer number of smartphones in use is one reason why hotels cannot afford to cede the ground to new competitors. There are 4 billion mobile devices in use today, Rose said, and an additional 1 billion to come in the next few years. It took 100 years for land line phones to spread to more than 80 countries worldwide, he said, while their wireless descendants did it in 16.

PhoCusWright found a direct correlation between smartphone owners and frequent travelers. Its most recent consumer technology survey, released in May, showed that people who take more than four leisure trips annually are more likely to have a smartphone. Similarly, people who use social networking sites such as Facebook and Twitter also tend to be on the cutting edge of mobile technology and take an average of 4.7 trips a year.

Meeting these travelers on their own technology terms can be the key to capturing their business.

Many already are using their smartphones as travel aides. PhoCusWright’s research found that 10 percent of respondents had visited a travel-related mobile web site, while 9 percent had used their smartphones to purchase travel or make a reservation. Another 7 percent had used their phones to make changes to an existing reservation. Six percent had downloaded travel-related mobile applications, and 4 percent had used their phone as a boarding pass.

Mobile travel apps should offer three key benefits, Rose said. They should empower mobile travelers, build ancillary revenue for the travel provider, and improve travel efficiency.

For hotels, that means offering self-services such as making and changing reservations, cancellations and mobile concierge services. The mobile concierge in particular can empower travelers because they do not have to go to a certain part of the hotel or stand in a line to get the information they need. Hotels could also potentially save on personnel costs if this information is available on a mobile device. Hotels can build ancillary revenue by selling services such as spa treatments or restaurant reservations, or encouraging guests to use these outlets with coupons.

Eventually, Rose said hotels will be able to offer mobile check in and check out, and even offer a way to have secure entry to the guest room through a mobile key chain. In Japan, hotels are experimenting with having mobile devices control in-room lighting and entertainment.

“There’s no doubt in my mind mobile is here and now,” Rose said, “and the opportunity to make money around it and make the experience better for the frequent traveler is real.”

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Sep 15
The American Press Institute asked 2,400 newspaper executives if their papers "provide access to stories or information such as sports scores, headlines, stock quotes, etc.," via Twitter, Facebook, Email alerts, Mobile/PDA, YouTube, Kindle, Flickr, e-readers, etc., and told them to "check all that apply."  As the chart above shows, a whopping 24% of all respondents answered "None at this time." Bizarre.

The American Press Institute asked 2,400 newspaper executives if their papers "provide access to stories or information such as sports scores, headlines, stock quotes, etc.," via Twitter, Facebook, Email alerts, Mobile/PDA, YouTube, Kindle, Flickr, e-readers, etc., and told them to "check all that apply." As the chart above shows, a whopping 24% of all respondents answered "None at this time." Bizarre.

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Sep 11

Nokia today announced acquiring San Francisco-based Plum, a startup focused on powering “micro-sharing” networks for families, co-workers and other groups. The idea behind the company is to let people in small social groups connect through private networks as an alternative to large social properties like Facebook and Twitter.

The move underscores that social networking is increasingly viewed as a key part of the mobile industry’s future. At its Nokia World conference last week, the Finnish phone giant announced a partnership with Facebook to offer a “lifecasting” service for the N97, making it easier for people to update Facebook profiles via mobile.

With the unveiling of its social-centric Cliq device yesterday, Motorola is clearly staking its comeback as a phone maker on social media and messaging will play a central role in mobile usage. Other handset makers and wireless carriers such as Verizon and AT&T have launched their own social networking-geared phones and services.

For Nokia, the Plum acquisition could lead to the company developing a “microsocial networking” service on mobile devices, something like a social version of the calling circles offered by the major U.S. wireless carriers.

“This kind of ability to link more intimate and closer-knit groups, like families, is likely what attracted Nokia (NOK), the Finland-based mobile phone giant,” noted Kara Swisher in a post today about the deal on her Boomtown blog. It might also complement its lifecasting service with Facebook.

With a company as vast as Nokia, though, it’s hard to predict what, if any, impact the acquisition of a 10-person outfit will end up having on its business.

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Sep 10

By Yukari Iwatani Kane

Apple has quietly introduced a new category on its iPhone App Store, in yet another acknowledgment of a shortcoming in its otherwise successful store.

screen-shot-2009-09-13-at-114114-am

AppleAn update to Apple’s iTunes shows the top-grossing iPhone apps.

The Cupertino, Calif., company had announced at an iPod event in San Francisco earlier Wednesday that it added a Genius feature to the App Store that would make app recommendations based on those that users already have. That was meant to solve a common complaint that it’shard to find good apps in the store, which some say is cluttered with over 65,000 apps divided in just 20 categories.

Another change, which was not formally announced, adds a “Top Grossing” category in addition to existing “Top Paid” and “Top Free” categories on the store. That change responds to developer complaints that expensive apps get buried in the “Top Paid” category because that ranking is based on the number of downloads, rather than total revenue generated from distribution of a piece of software.

That’s a problem because developers need to keep apps cheap to make sure that download levels are high enough to get on the top lists, which are the most popular way of reaching users. That also gives developers less incentive to invest a lot in terms of time and money on creating higher quality apps.

If developers suspected that the lists would look different, they were right. According to the “Top Grossing” category today, the No. 1 app wasSmule’s $2.99 I Am T-Pain auto-tuning app, followed by e2ndesign’s 99-cent AppBox Pro, a set of 18 convenient app tools such as a currency converter and tip calculator, and Electronic Arts’ $7.99 Madden NFL 10 football game.

In the plain “Top Paid” category, measured by download volume, the cheaper AppBox Pro was No. 1, followed by I Am T-Pain. EA’s Madden game–the most expensive app among the three–couldn’t be found anywhere in the top 50.

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Sep 08

by Steve Smith , Tuesday, September 8, 2009

It is my understanding that we have raised the most consumer-conscious, marketing-averse, hard-to-reach generation in American history. So much tortured thinking goes into marketing to my daughter’s generation, it is shocking to see her sheer gullibility when staring at a store shelf wall of video games. “Ooh, that looks good,” she says as she grabs the most colorful, cartoonish Xbox 360 game box.” She’s never heard of the title. I have never heard of the title. But the box looks cool.

Knowing the gene pool whence this behavior came, and after two decades of similar experiences with her mother, I understand how quickly a bad idea can implant itself irrevocably in her head. Quick and certain countermeasures must be taken before the misguided notion takes root and resists all tugging. I take a quick stab at getting her to questions whether she really wants to plop down $60 on a game before even reading the back of the box, but she just gets irritated and resistant to my doubting her first impulse. I flash back to 16 years of a previous marriage. My God, these genes are a powerful thing.

I literally call in air support. Luckily, the video games media publisher IGN has a great iPhone app that aggregates all of their reviews. I search the title and lo and behold the site gave that particular title a rating of 2.5 out of 10, which is just about drink coaster status. I luck out and show it to my daughter. “Hmm. OK. Lemme see that.” I will spare you the inevitable conversation that ensues: “This is why I should have an iPhone, because of all the money it will save you… .” She proceeds to spend the next ten minutes running phone searches on all the titles that catch her eye. Meanwhile, Dad is running interference against the countless store clerks desperately trying to help this rara avis, an attractive 17-year-old girl in a game store. Even my daughter is giving me “save me” looks as legions of geeks in fading “Assassin’s Creed” and “Mass Effect” T-shirts descend in a bizarre attempt to impress her with their current “World of Warcraft” level status.

As this small father-daughter techno-tableaux suggests, the retail experience is on the cusp of radical change. It is long in coming. More than four years ago I recall conversations with Consumer Reports about its first mobile app and how putting product reviews and competitive intelligence in-store in people’s hands was a genuine game changer. I am still waiting for Consumer Reports to give me that killer app. But in large part similar power is already there, but consumers and retailers are going to have find their way to make the inevitable transformation of shopping occur. Amazon, Barnes and Noble, Best Buy and others already have mobile tools that peek into their inventory and user reviews in ways that can and should change the way we shop. I now can take a snapshot of any book at my local Borders and get competitive pricing, reviews and related titles from my Amazon and B&N apps. I could even order it from a competitor. In fact, the B&N app lets me find the book and reserve it at their store down the road from this aisle at Borders. What happens when even a quarter of my fellow Borders shoppers realize they too have the same power?

The problem is that half the time I actually forget that I have this power in my pocket. I still peruse store shelves and try to remind myself that I should “check the reviews online when I get home.” The reflexes are not there yet , even though the technology is right in my pocket.

How people shop and how technology will meet, meld and eventually transform these habits is going to be a critical question for mobile marketing in the next few years. The first step in the process is a better understanding of how people are using mobile platforms in the wild and how it might map against retailer tools. The geotargeting company Placecast today launches a six-part video series and consumer research program with Harris Interactive called The Alert Shopper (blog.placecast.net) that will explore some of these issues.

Only an introductory video is at the site now but CEO Alistair Goodman tells me that the completed interviews and Harris studies will start to show how mobile can align better with shopping patterns. “We learned that 27% of women 18-to-24 with cell phones make at least one impulse purchase every week,” he says. “There is a real opportunity if a retailer already has a strong relationship with the user to influence them with a mobile device.” In order to get over our tendency to forget the power we already posses in our pockets, Goodman suggests that consumers might opt into letting a trusted brand use the phone’s geo-location capabilities to send alerts when the consumer comes within a “geo-fence” set around the retailer. Placecast will be looking at consumer receptivity to certain kinds of geo-location services and opt-in mechanisms and will be doing some tech trials this fall.

Reflecting on the video interviews we will be seeing in coming weeks on Alert Shopper, Goodman says that we do need to bridge a disconnect between what mobile is capable of doing and how consumers want it to work. “We haven’t framed the service is a way that the consumer finds valuable rather than useful. What came through loud and clear in interviews and the data is that if you can create something really relevant and reach me in a channel I find important, and you do it in a useful way, then it is something I want more of. It involves changing the dynamic a bit and not using mobile devices in the way we use them — but beginning to evolve an interaction with the device based on where I am in time and the things I am really interested in.”

We’re just getting started in understanding that mobile-at-retail model, but any retailer that is not working hard on this problem is about to get a rude awakening. I don’t know why Borders has no mobile site and isn’t telling me at the door the things I can do with my phone while there. I also don’t know why GameStop isn’t buying up every inch of IGN’s mobile inventory to give me coupons aimed at preventing my daughter and I walking out their doors with no game at all, the way we did the other day.

And while everyone is innovating, how about a Gamestop app that geo-tags all of their store clerks so I know when one of these mouth-breathing 120-pound Orc-slayers is penetrating a no-geek “geo-fence” around me and my daughter? Or perhaps an iTaser peripheral? I don’t want to hurt them, just let them know that this Dad isn’t as easy to take down as some birtual dungeon boss.

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