Changing Trends in Mobile Shopping

By Amy Vale

Have you noticed that consumers shop in a totally different way to how they might have ten or even five years ago? No longer do people compare two or three products at home and then go into the store to make their purchase. In fact, the emerging trend now is for consumers to do the shopping research via their mobile devices while they are actually standing in the store. This is a process which has come to be known as “showrooming.” According to a recent study by Pew Research, 52% of American shoppers use their smartphone to perform research while standing in the aisle of a store, and what’s more is that 19% of these “showroomers” convert their offline/in-store purchase to an online retailer.  What does all this mean for retailers?

The traditional retail business model has fundamentally changed. Ten or fifteen years ago retailers had greater control over the flow of information that went to consumers, and there wasn’t nearly as much choice. Now, because there is so much information, so many alternatives, and the ability to compare and shop around while actually doing the act of shopping, retailers know that mobile has changed the way people shop, and they need to get on board with this fact or they’ll miss the train to mcommerce city.  

We have been hearing a lot of “brick-and-mortar” retailers getting stressed about the fact that they are losing business to online-retailers.  There is no denying that this shift in the way people shop has happened. Many people are shopping online rather than actually going into a store, because of convenience and with the goal of getting the best price. The real challenge for retailers now is to join forces with mobile; that is, bridge the virtual world of e-commerce with the physical one.  We know that consumers are using their smartphones while shopping, so retailers should find ways to capitalize on this and align themselves with the way consumers are shopping today.

The proliferation of QR codes is one example of how retailers have found a way of connecting the virtual or digital with the physical; using social media to connect with consumers and build brand presence in non-traditional places like Foursquare and other mobile apps that can also serve as the perfect mechanism for bridging the online and offline consumer. Consider things such as in-store check-in, e-commerce and in-store checkout, and the “virtual aisle”, which provides the ability to scan and order products via other media such as billboards and flyers. The lesson here is to find ways to blur the boundaries between the online and offline environment. If shoppers want to use their mobiles and smartphones while shopping, you have to find a way to make this work for you, and them.

Retailers should not see mobile and “showroom shopping” as a negative outcome of the shift in consumer behaviour, but rather as an opportunity to grow and head into the new retail sphere. It has become quite clear that retailers who wish to stay relevant need to embrace mobile as the future of the consumer experience.

Are We In The Post-PC Era Yet?

Are We In The Post-PC Era Yet?

by Amy Vale

In the past few months the question has been asked many times - is the desktop going the way of the landline, that is, disappearing in favor of the mobile device? There is lots of research currently  looking at the volume of desktop computers sold versus smartphones and tablets, so we thought that this week we would take a look at what is actually going on out there. Have we ventured out into the post-PC era yet?

A 2010 IBM study noted that "smartphone sales have exceeded PC sales for the first time. This is not a fluke, but one indication that we are entering a post-PC-era that will be dominated by highly-mobile, instant-on, and always connected, smartphones and tablets as the platform of choice to access network-based services. The impact of this on the enterprise is both inevitable and profound."

According to a recent Gartner study, 352.8 million PC’s were sold worldwide in 2011. To put it into perspective, Samsung alone estimates it sold 300 million handsets in 2011 and estimates it will sell 372 million in 2012 where 150 million of them are expected to be smartphones. While not all of Samsung’s mobile device sales will be smartphones, they are all mobile devices which tap into the web and run apps.

Some people are suggesting the struggling economy is what is responsible for hurting the sale of personal computers. Objectively, it probably is a contributing factor. However, the trend toward mobile and away from desktop computers is a powerful one that goes beyond the current economic climate. If someone doesn’t have the finances to buy a new PC, this makes the sale of smartphones or tablets even more compelling, especially if it comes with a monthly fee rather than an outright bill. Current generation mobile devices are attractively priced, often due to subsidies from the mobile telecom providers, making them quite affordable to a broad market.

We are increasingly witnessing a major cultural shift away from desktops and toward mobile devices, but this is nothing new. There are so many reasons why this is happening, but put simply, the mobile device is just taking over. If you consider how people are using their computers and accessing the web nowadays, it makes perfect sense. Very few people are actually sitting at a desktop computer for leisure purposes. This has meant that people are only turning to their PC’s at work, and even this is starting to change. A lot of offices and companies are turning to tablets as a way of running their businesses. With that said, it’s safe to say that the PC is not dead yet! Yet, being the operative word.

What Does The Future Of Mobile Look Like In The U.S.?

What Does The Future Of Mobile Look Like In The U.S.?

by Amy Vale

According to most recent studies, global sales of smartphones are expected to top 1 billion units by 2014. Credit Suisse also predicts that sales of the mobile devices will grow about 46% this year to 687.9 million units. The craziest statistic though is that reports are now saying that one-seventh of all of humanity has access to a smartphone. Mobile is just getting bigger and bigger and showing no signs of slowing down. But what does the future of mobile look like in the U.S. though?

 

When you look at the Mojiva infographic capturing the U.S. Hispanic mobile user market, we can see what the future of mobile will look like, at least within the United States. As background, within the Hispanic mobile user community, from our research Mojiva has found that 25% of users come from a household where the average income is between $25,000 and $50,000 and the highest number of users is the demographic between 25 and 34 years. Most importantly this group is also two times more interested in receiving ads, and likely to buy advertised products, than non-Hispanic mobile users. As for the purchasing power of the single largest ethnic group in the U.S making up 50 million people, (Yes, the Hispanic community) is a massive $1 trillion.

Considering this information in conjunction with the aforementioned 1 billion smartphone statistic, we can see that the future of mobile advertising within the U.S. is strongly connected with the younger demographic of Hispanic mobile users. This is just one interesting snapshot of what the U.S. mobile market is looking like currently and we think, has a pretty powerful prediction for the future too. Taking into account the fact that the expected sale of smartphones will reach 1 billion globally, and the Hispanic community alone in the U.S. has a purchasing power of $1 trillion, we can see that mobile is moving fast and growing exponentially, not just globally, but within the U.S. as well.

Given this new information that will shape the increasingly mammoth mobile industry moving forward, we are observing that publishers are realizing that traditional ad serving tools they might use for online ads sales is no longer an option for their growing mobile page views. A dedicated mobile campaign management platform is crucial,” said Dave Gwozdz, CEO of Mocean Mobile. “Earning top ad revenue from their audiences, which in many cases are now larger via mobile devices than online, has moved from ‘nice-to-have’ to ‘critical for the existence’ for these top publishers. Some publishers, only a few months ago, dismissed the importance of their mobile ad sales technology as a commodity. Not today, the progress of mobile is moving that fast.”

What is Bluecasting?

by Amy Vale

Bluecasting offers a new way for businesses and organizations to interact with consumers.

It is similar to Near Field Communication (NFC) and somewhat like Geofencing, but Bluecasting is the new mobile marketing technique to look out for. The proximity-based technology enables consumers to receive promotional material, or any digital media, on their mobile devices when they are within a certain proximity to a Bluetooth station which has been purposely set up. Some people are saying that this is the new mobile innovation to watch out for, as it allows businesses to interact with consumers in an innovative and effective way. Have you heard of Bluecasting and thought about how this could be useful for you?

So, how does it work? It sends out promotional digital media content using computer-controlled software and hardware which detects Bluetooth-enabled mobile devices when they are within proximity of a designated hotspot. The content is only broadcast to “interested” devices, meaning that it is currently an opt-in service. Consumers are sent a request for permission to send files, and once they have granted permission, Bluecasting units send files to those phones. Files could include things such as mobile applications, discount coupons, marketing brochures, videos, images, vCards and any other digital media.

We can envision this new mobile technology being used by marketing managers from large businesses or organizations to improve brand awareness. It has the benefit of delivering direct messages to customers or clients and provides the opportunity to capitalize on viral marketing. Companies also select the public place from which to send out their messages to large groups of people at any given time. For example, public transit locations are by nature saturated with people nearly all of the time, giving advertisers a perfect opportunity to reach a great number of people with their promotional material or mobile advertising.

Bluecasting pulls together smartphone and wireless technologies such as near field communication (NFC) which has, for example, enabled users to carry out financial transactions with the digital wallet phenomenon, and  Geofencing, the technology which refers to virtually fenced-off geographic locations, for example, a radius around a shopping mall, where consumers can receive messages and special offers designed to incentivize them to walk into the store. With Bluecasting though, we are seeing mobile marketing taking centre stage. It isn’t necessarily about shopping or the delivery of deals or coupons; Bluecasting technology could be used by businesses or publishers to deliver mobile advertising in a new and innovative way. Think about the way a new app could be marketed, or any digital material that you want to send out to relevant users. This could be a whole new way of thinking about mobile advertising.

Is Geo-Fencing The Next Big Step in Mobile

by Amy Vale 


There has been much talk recently about the concept of ‘geo-fencing’ and if, or when, it could come into wide-scale adoption and potentially change the mobile space for both businesses and publishers.  A few weeks ago, we wrote about geo-location services and its already huge impact on location based advertising. In a similar way, geo-fencing enables retailers to recognize customers when they are in a particular location, on the go on their mobile devices. Essentially, the difference between geo-fencing and geo-location services generally is that the new technology geo-fencing actually refers to a virtually fenced-off geographic location. For example, a radius around a store or shopping mall, and people who have “opted in”, receive messages and special offers designed to encourage them to walk into the store and make an immediate purchase.

As expected, geo-fencing technology has huge potential for retailers because it can reach consumers while they are out and on the go, and while they are in the mindset to make a purchase already. Retailers and advertisers are able to send relevant and, specific messages, while taking into account where that person is, at that moment in time. The new technology has already been trialed by various retailers.

Geo-fencing got a major showcase with a roll-out in the UK through mobile operator O2, which launched a program to target a million subscribers with Starbucks and L’Oreal coupons. When customers came within about a half mile of a Starbucks store, they received a text message with a discount offer. Likewise, customers who travelled near a drug store chain received an SMS offering deals on L’Oréal products.  This trial was successful because instead of relying on GPS, it established a subscriber’s location through a carrier’s network, This meant that it reached a wider market by targeting users who don’t have a smartphone or a GPS-enabled phone.

The possibilities for geo-fencing applications are endless.  To get an idea of how geo-fencing technology could improve on existing location-based applications, just look at the current popular apps. Apps like Foursquare could implement this infrastructure to allow users to automatically “check-in” when entering a particular location. Another potential example of geo-fencing is connecting mobile devices to house lights or air conditioning units to automatically activate them when users approach their homes. Friends could even be notified when they are within a certain distance of one another.

Like other geo-location services, there is still the concern that the general public feels toward the technology because of the perceived “tracking” of their mobile device. Many users don’t like the idea of a retailer being able to know where they are, regardless of whether this is true or not. Nevertheless, we are expecting increasing numbers of retailers to test out geo-fencing strategies over the coming year, alongside the continued domination and expansion of the smartphone. It is going to come down to whether they can find the right balance between making users feel like they’re taking advantage of a deal, without being spammed or stalked.

When is The Right Time To Go Down The Mobile Ad Network Route?

by Amy Vale 


Some publishers with mobile properties have made the choice to not make any inventory available to mobile ad networks for varying reasons. At the same time, it is not always clear to publishers what the right choice is when it comes to going down the mobile ad network route. There are, however, very strong and compelling reasons to choose the network path, so it is important for you to consider when, and if, it might be the right time for you. 

There are a number of major benefits of going down the network route. Firstly, you get the advantages of campaign tracking, that is, real-time reporting and analytics. On the Mocean Mobile ad network, users can track all facets of their mobile campaign. In addition to a convenient dashboard view, the platform features customized reporting capabilities to monitor performance from a high level as well as a drilled-down, campaign specific level. Mocean Mobile’s Conversion Tracking also provides an analysis of the number of actual ad conversions as well as the exact location of the conversion (i.e. sites, landing pages, URLs, etc). ROI calculation is simplified as the lead-to-cost numbers are visible. You will also be given the ability to set up, control and optimize all in one central place, and have access to a centralized reporting portal for all fully integrated ad partners – basically, a reporting one-stop-shop.

Secondly, a mobile ad network provides the benefit of inventory control. One of the big benefits of working with a network is that whether you are selling directly or not, this is a great way to increase your fill rate and monetize any currently unfilled impressions. It also increases your ability to utilize third party ad partners and can significantly help increase supply for publishers that are lacking sales resources. In order to provide the highest fill rate, the Mocean Mobile platform allows for the streaming of over 50 third party ad feeds. This system lets a publisher set percentage desired fill rates or rely on a combination of auto-detected CTR, true fill rate and latency coupled with manually entered eCPMs for each ad network feed. The higher an ad network eCPM, the more frequent that particular ad feed is shown.

One can also opt for full service mediation, which includes all the benefits of inventory control as mentioned, without the work. At Mocean, the team of mediation specialists can review your business model and assess how you sell. They will set up, optimize and monetize all of your mediation information.  You will be able to pull reports direct from their “dashboard” showing the third party data as well.

For publishers new to the mobile space, choosing to make inventory available to a mobile ad network is also the opportunity to test the waters and have support backing you. You have to determine whether these factors, in favor of a mobile ad network, would help your business though, and if there is a  right time for you to go down that route. Like anything, there are always going to be choices.

Building a Publisher-Rich Media Provider Relationship: Why is it Necessary for Mobile?

by Amy Vale


We have reported before all about the importance of rich media to the future of mobile advertising. The different types of creative options available in online advertising are constantly evolving, and it seems that every few months there is a new type of creative that can be added to a publisher’s site. This year however we have been witnessing an increasing amount of rich media initiatives becoming a major part of every ad buy. Advertisers want to find ways to directly engage the user because this leads to greater marketing results. We know how important rich media is, but now it is becoming apparent that it is important for publishers to build a relationship with their rich media provider.
“Rich media” is a term used to describe dynamic and engaging advertising. It refers to ads which go beyond the standard display of images and text to mobile ads that pull dynamic information in real time and enable user interactivity such as playing a game or watching a video. Rich media ads are essentially mini computer applications that are served within the web page ad space, either via code such as HTML 5, or via browser plug-ins such as Adobe Flash or Microsoft Silverlight.
With sophisticated graphics, animation or streaming video these types of ads provide an immersive user experience, enabling advertisers to effectively reach consumers and inspire interaction with the brand. With video, advertisers can give mobile audiences a TV-like experience, on the go, and generate the same emotive connection with the user as television does.
Diving into the world of rich media is an exciting step for a publisher and can lead to increased revenue. The process of incorporating rich media into your mobile web sites can be a lot of work, however it has proven to have the potential for tremendous benefit to both you (higher CPMs), and your advertisers. It has become clear to us how important it is to build a relationship with your rich media provider.
Third party rich media vendors are the way forward. They act as service providers who build, host and serve rich media advertising for advertisers and publishers. They are also specialists in this area, and their proficiency is building and serving high-end rich media as well as assisting you and your advertisers in the creation of your product. As an example, one of Mojiva’s partners, PointRoll, has the largest digital rich media support organization in the world. They provide a full team of experts to help publishers get up to speed or advance their rich media knowledge. It is useful to establish a relationship with your rich media provider so that you work together to build a product that will work for you and your advertisers. Have you formed a relationship with your rich media provider?