Mobile Forecasts

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September 12, 2014

Facebook is Converting 100m Africans Per Month

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The African continent is signing up to Facebook in droves, with 100 million users joining the social network every month. Most exciting for mobile marketing campaign managers is the fact that 80% of those users are joining via smartphones. This is indicative of a rapidly expanding mobile marketplace in emerging economies, as smartphone adoption in many African nations outstrips desktop adoption.

In part, this explosion has been driven by a deal inked between Facebook and cellular networks which ‘zero rates’ the service. This means data used by accessing Facebook does not count towards bills or data limits. Despite drawing some criticism from net neutrality advocates, the move has undoubtedly helped emerging economies in countries like Nigeria and Kenya compete; companies across Africa are reaching new, global audiences that were hitherto tough to crack.

This is just the beginning of what looks set to be a connectivity revolution in a continent historically beset with infrastructural problems. Some researchers are predicting mobile web use will increase 20-fold over the next five years. That’s double the predicted rate of growth in the rest of the world.

The relative affordability of, say, an iPhone compared to an Apple desktop computer is allowing citizens of developing countries to engage with the online world, and businesses to grow more quickly as their local audience builds. The declining cost of data, alongside faster transmission speeds, is improving communication in some of the remotest parts of the world, with sub-Saharan Africa undergoing a mobile digital revolution. 

It’s not just the low cost of recent generations of smartphone that suits these markets. Smartphones don’t need to be physically connected - either to network or electricity cables – to the same degree as desktop computers. This convenience and portability is allowing a whole new kind of mobile consumer to take advantage of internet access. 

Recent research from mobile tech firm Ericsson predicts voice call traffic in the region will double over the next five years. By the end of this year, there are expected to be more than 635 million mobile subscriptions in sub-Saharan Africa. The report also says that 70% of users in the countries studies browse the web on mobile devices, compared with just 6% who use desktop computers.

Analysts say the Ericsson research confirms mobile’s dominance. In a recent TED talk on technology in Africa, the editor of South Africa’s Stuff magazine said:

"Africa is a mobile-only continent. There never was a landline infrastructure to begin with, apart from urban areas. Mobile has allowed anyone to have a phone in places that were previously impassable and uncontactable. It has also been enabled, from a business perspective, by prepaid payments that handily remove the equally widespread legacy problem in that very few people have banks accounts. It really is that technology leapfrog the industry likes to talk about."

 

September 10, 2014

How Americans Use Text Messaging

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According to the most recent Pew research, 90% of adults have a cell phone of some kind, and 58% have a smartphone. Nearly a third of all cell phone owners describe their device as ‘something they can’t imagine living without.’

And the thing they can’t live without most of all is SMS. Texting is the most commonly used non-voice application of American mobile phones. Previous Pew research indicated that 73% of adult cell phone owners use the text messaging feature on their phone regularly. For under 30s, that percentage is closer to 100, with twentysomethings sending or receiving an average of 87.7 text messages per day. 

Go younger still – to the under-24 category – and you start to wonder how the ‘youth of today’ gets anything done. According to the research, 97% of 18-24 year olds use text messaging, and the number of daily SMS messages send or received by individuals in this group is, on average, 109.5 – twenty-three times that of the baby boomers. The median texter in the 18-24 demographic sends or receives 50 texts per day. A quarter of them report sending or receiving more than 100 texts per day, and 12% claim to send or receive more than 200 messages on an average day. 

Using the Data

Having a clearer understanding of texting habits will help you devise a more complete, rounded mobile marketing strategy. It’s essential to integrate your mobile and email campaigns so they benefit from one another. An email/text one-two punch can really drive home your message, and both channels provide users with a way to engage directly with your business. How can you achieve this?

Well, SMS is ideal for short, time-sensitive communications. We know most recipients read texts within minutes of receiving them, so there’s no better way to issue a limited time special offer, or notify people of last minute alteration to schedules. Email, on the other hand, is perfect for sending denser content with more detailed information.

Remember too that 43% of consumers access their emails via a mobile device, so both channels are easily cross-referenced. This single point of access promises to be a major driver of consumer engagement as smartphone penetration continues unabated. Don’t let your next mobile marketing campaign do without it.

 

August 21, 2014

Mortgages Go Mobile

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The mortgage lending market is updating the way it does business. Primarily a person-to-person industry, mortgage lenders typically meet with customers directly to offer a variety of packages suitable for their clients. With the influx of mobile users in the past decade, however, the big players in this business are readying to go mobile.

According to the Pew Research Center, about 90% of U.S. adults carry a cellphone. In addition, the report shows that 58% of Americans carry a smartphone, 42% own a tablet, and 32% have an e-reader. These numbers show that, in this nation alone, owning a mobile device has become a standard. Mortgage lending corporations have begun to roll out marketing campaigns based on these numbers, creating mobile apps and kiosks to change the way they have historically addressed their clientele.

In Wisconsin, a company called Waterstone Mortgage has been one of these pioneers. They have developed a digital platform entitled Mortgage Agility, which allows potential borrowers to apply for loans using their smartphones. The app features the ability to take pictures of the potential clients’ documents, thereby speeding up the approval process. Waterstone’s offices in Florida have started to employ Mortgage Agility, and they are already seeing great results: not only are customers’ information collected in an orderly fashion, but they are able to move into a closing position with greater speed and ease.

Another digital platform, called Apex, has been unveiled by FBC Mortgage LLC. This technology comes to customers as a kiosk located at FBC Mortgage storefronts. Apex allows potential borrowers to streamline the approval process, allowing clients to determine if they are eligible for a loan in less than ten minutes. The technology then sends a correspondence letter to the individual immediately after the pre-approval process.

It is true that the mortgage lending industry has a history of doing business the old-fashioned way. When it comes to loans, it is important that all of a customer’s information is protected and handled with care. But the face-to-face practice of lending requires a great deal of a given client’s time (as well as the lender’s time). Nowadays, Americans use mobile technologies for anything from online purchases and video games, to text messaging and information gathering – and the mortgage lending industry must not lose sight of this. By developing strategies for the lending market that incorporate a mobile user’s smartphone (or an appropriate digital platform), their customers will appreciate the ease-of-use and expediency of mobile technologies.

 

 

August 20, 2014

The Big Mobile Marketing Match: Email vs. SMS

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No doubt about it, email marketing has been king for many years in the new media advertising realm. The accessibility to potential clients, coupled with low-cost delivery has proven to be a boon for marketing campaigns across the board. Since spam filters have enhanced and email open rates have decreased, however, SMS text message marketing has taken a leading spot in digital advertising.

First off, there are a great deal more mobile users than email users. According to a study by Ericsson in 2014, there are reportedly 4.5 billion mobile users in the world. This number does not include users who own and use multiple devices. Each of these users has the capability of receiving a text message via SMS. The Radicati Group recently reported that there are a projected 2.5 billion email users around the globe. Essentially, that’s about 45% more people who can receive SMS versus email.

SMS, unlike email, has not yet been impacted by spam – at least not in the same fashion. Often emails that are completely legitimate are considered spam simply because inboxes are inundated with junk mail. This has driven down the possibility of connecting with readers of email, with only 22% of messages having the opportunity to be opened and read by email users. SMS, in contrast, has a 98% open rate by mobile users, with only 1% filtered by spam text messaging.

Think about how the average mobile user addresses a text message versus an email. For years, email users have complained about the content of their inboxes, scrutinizing the subject lines to determine if each email is worth opening. When mobile users receive texts, however, they choose to open virtually all of them. It is still natural for mobile users to assume a text is coming from a more trusted source, whereas email users are highly skeptical of the correspondence they receive – especially if they do not recognize the sender. Perhaps as text marketing is adopted by more companies, this trend will alter toward the high filtration rate of email filtering. On the other hand, with such strict guidelines set forth by the FCC when it comes to SMS marketing, the level of spam texting may stay significantly low for quite some time.

The real benefit of SMS marketing is the increased rate of return. It’s true that companies must still market via email, just as they must continue employing traditional advertising channels. But the open and click-through ratio for text messaging far surpasses that of email or traditional marketing methods. The numbers don’t lie – consider ramping up your marketing game by developing an effective SMS campaign today. You’ll be happy with the results.

August 14, 2014

Is Beacon Technology Going to Change the Retail World?

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Beacon technology incorporates the power of consumer-targeted advertising with location-based mobile marketing by installing small pieces of low-cost hardware within the shelves of retail stores. When customers enter a store with Bluetooth-enabled mobiles or tablets, the business can send customized advertisements directly to their devices thereby enhancing their shopping experience. While Beacons have only recently begun to appear in shops, the technology itself is already part of Apple devices since the 3rd generation of their products. And reports from the tech blogs are starting to take notice of the Beacon technology’s capabilities.

Mass Potential

Apple’s beacon system, called iBeacon, is automatically installed in all devices that use their current operating system, iOS 7. This means that, even if a mobile user knows little about how the iPad or iPhone works, they still have the infrastructure in place to benefit from Beacon technology. There could be as many as 190 million iOS devices currently capable of accessing iBeacons. Undoubtedly, this number showcases the unbridled potential of Beacon technology.

Current Barriers

There is a bit of a curve to this technology, though. An almost equal amount of the mobile and tablet markets use non-Apple products, which are less integrated with the Beacon infrastructure. Because the operating systems of non-Apple products tend to require updated versions of their OS, mobile marketers cannot rely upon these technologies for their Beacon-based advertising strategies.

Furthermore, Beacon technology requires mobile users to “opt in,” in a manner of speaking. First of all, customers will need to download the appropriate app for the business in question, and then they will have to activate it before entering the store. In addition, Beacons require ranging technology to function, which works in proximity of the devices using a mobile’s Bluetooth. The mobile will not receive any pushes or notifications, however, if a phone’s location is cloaked – the customer must allow the appropriate app to access its location for the Beacon to function properly.

The Future

In truth, Beacon technology is only beginning to get a foothold in the physical advertising space, and once it gains some traction, it will be here to stay. The unrealized potential of mobile location-based marketing is burgeoning, just waiting to be deployed. In the near future, we will witness customers taking advantage of flash sales and contactless payment options, as well as living in automated homes where temperature and lighting may be adjusted directly from mobile devices. The rule books have yet to be written. We do know that the key to capitalizing on Beacon technology will rely on corporations’ creativity and connectedness: sharing real-time information with customers to a mutual end and appealing to the changing temperaments of these individuals, all the while motivating these loyal customers in a direction – according to when and where – they want them to be. 

August 11, 2014

Mobile Brings 1:1 Marketing Full Circle

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Mobile marketing is the modern face of advertising. Sophisticated tools like geo-location software and mobile apps are stripping away the barriers between business and consumer, affording even the most modestly-budgeted mobile marketing campaign to foster precise, personalized relationships with an audience that never stays still, but for whom smartphones are a constant companion.

If the technology is cutting edge, the concept of one-to-one marketing is anything but. It dominated the commercial landscape until the middle of the 20th Century. Before radio, television and print media were widely available, the romantic image of the door-to-door salesperson selling his wares directly to customers was very much a reality. ‘The user experience’ – as nobody called it then – was top notch: a sales rep came to your home, demonstrated the worthiness of their product and, perhaps most importantly of all, put a face to the brand.

This marketing strategy provided accountability, intimacy and transparency, but was ultimately put to bed by the rise of mass broadcasting technology. Instead of reaching a few thousand people by sending out a hundred reps to knock on doors, businesses could reach millions in one go via a television commercial. For much of the post-war 20th Century, big advertising meant big networks and big money. Corporate muscle (devoid of accountability, intimacy and transparency) ruled the roost and the little guy was out in the cold. Who could compete?

The advent of cable television dealt the first blow to this monolithic, monopolized marketing culture. By appealing to niche markets on specialized channels, the company message might reach fewer people, but the percentage of conversions would be higher. Slowly but surely, broadcasting was superseded by narrowcasting.

Narrowcasting allows marketers to:

  • Disseminate messages to different demographics and adjust each message accordingly
  • Make sure content is only available to specific groups
  • Provide high levels of relevance to the recipient

The trend started by cable television went stratospheric with the arrival of the internet, an ultra-targeted information portal that didn’t have to predict what people wanted; you could find exactly what you needed by filtering out everything else. Direct marketing wasn’t just back in business – it was business.

But the web solution also presented a problem: market fragmentation. One of the earliest constituents of the internet lexicon to take root in the public imagination was ‘SPAM’ – and it wasn’t because people liked it. In addition to filtering the information they wanted via search engines, people were ignoring the information they didn’t want by automatically trashing unsolicited emails from businesses. As soon as every business was shouting from the same platform, the public simply turned the volume down. By the mid-noughties, online marketing was threatening to become white noise for all but the richest of traders, who could afford to roll out costly SEO campaigns and buy space on premium web real estate. 

Just when it looked like marketing power would once again be predicated on deep pockets, SMS messaging stepped into the breach with a more refined approach. Ironically, commercial texting’s wilderness years were brought to an end with the rise of the smartphone. Mobile devices are no longer simply convenient portable versions of landline phones. They are indispensable hi-tech appendages, the use of which is beginning to overtake desktop as people’s primary point of access to the web.

This increased focus on handheld devices has done wonders for SMS messaging. While consumers continue to spam filter emails, more than 90% of text messages are opened and read within minutes. Long before the humble text became a mobile marketing strategy, it was used primarily for personal communication. As such, it is a trusted channel, and mobile marketing campaign managers have cleverly reciprocated that trust by building opt-in only contact lists. In 2014, the holy grail of mobile marketing tactics is to transmit a unique message to individuals who want it, tailored to their wants and needs.

This new, consent-driven iteration of 1:1 marketing is allowing companies to reach customers on their own terms, and to offer preference-based special offers. Personalized marketing is back – and you don’t even need to leave the office to do it.

August 06, 2014

The Future of mHealth Technology

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Every day the technology of our mobile devices continues to improve, and every day there are new applications for it. The healthcare industry is poised to take advantage of this technology by providing access and mobility to its customers around the world.

This particular market called the mobile health market, or mHealth, has yet to reach its full potential. Currently, doctors and patients can interact through texts, email, and apps, as well as through sharing pictures and video. But this is just the beginning. Mobile devices have given us opportunities for real-time communication and collaboration, which is a boon for the medical industry. Also, there are increasing opportunities for improving access to quality care through mobile access (as soon as the powers that be approve these mobile accessibility apps). In the meantime, healthcare organizers are looking for short term solutions.

With over 140 million smartphone users in the U.S. – and another 60 million projected users in the next five years – mobile marketers are looking to take advantage of the need for mHealth technology improvement and engagement.

So far, customer desire for mHealth technology has had a slow takeoff. Only about 10% of the U.S. population has ever used these technologies. In addition, there are many obstacles for mHealth to grow: the traditional channels of medicine include solutions for banking, insurance, and travel, whereas mHealth must find new solutions to these hurdles.

On the other hand, several new technologies have managed to appeal to the public. Digital hospital rooms, virtual medicine kiosks, and mobile e-health devices are providing physicians with crucial information on their patients, aiding them in the process of diagnosis, monitoring, and treatment. Remote monitoring of clients has proven to be very useful to both the medical industry and patients, as well. Also, mobile devices have access to Electronic Health Records and patient information from remote locations, offering call scheduling, training and education, as well as communication for appointments and reminders. Finally, as wearable technologies are beginning to catch on, new mHealth technologies may be incorporated into them, allowing the user and their doctor(s) to track their progress and recovery.

The lack of engagement in mHealth comes from the lack of standardization in these new technologies. There are currently too many types of mobile platforms to have a standard mobile app, and several of these competing apps provide many of the same functions for the consumer. Also, the legal ramifications of using the technology are dictated by HIPPA, so there must be new laws in place to ensure compliance. By developing real-time apps where patients and physicians can share information concurrently, consumers will more-than-likely see the value in adopting these new technologies.

In years to come, we will begin to see healthcare consumers embracing mHealth for the future of their own healthcare. They will likely expect more of their healthcare provider (since consumers are experiencing higher out-of-pocket payments for medical services). The key will be to provide high-quality, low-cost health care by eliminating as many middlemen as possible, thereby restoring the doctor-patient relationship. With mHealth, a consumer will have more access to medical professionals and, in turn, medical professionals will be more responsive to their patient’s needs. There will be a welcome competition in the medical industry in the future according to these factors, and the incorporation of mHealth technologies can give individual businesses an edge over their fellow medical practices.

July 17, 2014

Mobile to Surpass Print Advertising in the UK

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According to a forecast by eMarketer, mobile advertising spending will soon overtake traditional print ads. The report predicts mobile spending to grow by a staggering 96% this year, hitting £2.02bn. That’s still a shade behind the forecast print spend of £2.06bn, but the report anticipates mobile ad spend will be worth £4.5bn in 2016. The UK’s total digital advertising market is forecast to be worth £7.25bn by the end of this year, growing to £8.64bn by 2016.

This rapid growth reflects the widespread adoption of secondary mobile devices used in conjunction with smartphones. By 2018, 50% of Brits are expected to own an iPad, Kindle or other tablet.

The eMarketer report states: 

“Continued robust growth in the mobile channel is driving the bulk of [overall] digital ad growth in the UK. The dramatic growth of mobile and video ad expenditures will boost digital ad spending throughout the forecast period.”

This “mobile mushroom” is showing no signs of letting up. The numbers are truly dramatic: compare the £7.25bn valuation put on the market today with the £83m from four years ago and you get an idea of just how seismic this shift is. Mobile advertising will account for nearly 30% of all digital ad spending in 2014, according to the report.

So what’s prompted such an explosion in mobile marketing campaign spending? Most analysts agree that, in the UK at least, a strong economy, with the pound ringfenced from the worst effects of the Eurozone crisis, has instilled confidence in consumers. Plus, the efficacy of mobile marketing tactics are easy to track compared with traditional channels, causing advertisers to turn away from print (the report also predicts that the newspaper and magazine market will lose £276m in ad spend between 2014 and 2018).

A similar story is playing out on this side of the pond, with mobile spending accounting for 22.5% of all digital ad investments in 2013. A study conducted last year – also by eMarketer – indicated worldwide growth of mobile web ad spending had exceeded 100% by the year’s end, with mobile accounting for 15.2% of digital ad dollars spent globally.

The implications for your mobile marketing strategy are clear. Firstly, track the results of your print and mobile marketing campaign. Secondly, compare and contrast the success rates of your digital campaign and your traditional print campaign. If recent analysis is correct, you’ll find more and more consumers are turning to mobile to browse commercial prospects. Once that happens, you can adjust your budget accordingly, and start reaping the benefits of mobile.

July 03, 2014

Six of the Best: Mobile Marketing Trends in 2014

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Since 2010, the best practice for mobile marketers has been to interact with clients primarily through social media. Things have changed. Here are six of the best trends in mobile marketing for 2014:

1.Location Targeting

Location targeting has been around for quite some time now, but only recently has it been elevated to new capabilities. Location targeting has become much safer, commonplace, and convenient in the last year. And it’s getting better. As consumers continue to depend upon mobile devices that can find local products and services – when and where they need it – custom ads have been developed for these exact moments. Their activities are then recorded by marketers, so that the relevant information can be examined and tracked to appeal to consumers’ buying habits and movement patterns.

2.Programmatic Buying

Programmatic buying is basically the buying and selling of the consumer’s potential ad space. When a consumer sees an ad in the course of app use, in most cases that space has been won by the highest bidder. This service is getting new traction in the mobile marketing world: advertisers are able to summon historical intent side-by-side with profile data and behavioral data in real time. Forecasters expect programmatic buying to become the most common way to advertise to mobile users in 2015.

3.Wearable Tech

With the inauguration of Google Glass and Samsung Gear, mobile designers are blurring the lines where fashion meets technology. This giant leap forward has begun to provide businesses with new frontiers to claim in the territory of wearable tech. As many tech consumers have begun to embrace this new technology, marketers in turn have embraced their technological capabilities. Ideally, the seamless interactions inherent in these devices will allow advertisers to provide unique experiences for consumers.

4.Mobile Messaging

The ever-popular messaging apps like Snapchat and WhatsApp continue to garner a larger user base. Clearly, an increasing number of people prefer to use these apps to communicate rather than text messaging or calling each other. Apps of this nature allow for a multimedia user experience in real time, which appeals to a new generation of mobile users. Mobile marketers are preparing for the influx of new users upon these platforms, designing revolutionary messaging strategies for the future of text-based communication.

5.Mobile Currency

It’s not just about PayPal anymore. Since everyone has to have a smartphone today, we are beginning to see an increase in the usage of mobile wallets. The mobile phone has become the new way to pay instead of using cash or a credit card. The demand for advertising in this space is bound to increase based on user demand alone.

6.Video Demand

Mobile video viewing has become very common due to faster wireless networks, improved technology, and an increase in data plans. Ads for this medium are likely to follow suit in the next year. Evidenced by both Vine and Instagram’s incorporation of video, as well as the aforementioned commonality of mobile video, it’s pretty safe to assume that this space will be a veritable gold mine for mobile marketers.

Within the past six months, the business of mobile marketing has undergone a revolution. The increase in mobile usage, cutting-edge tech, and the expanding consumer knowledge of mobile utility has broadened the ways in which marketers reach mobile users. It’s time to prepare for the wave of the future in mobile marketing.

June 30, 2014

How SMS is Revolutionizing Emerging Economies

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Since 2007, individual farmers in developing countries are estimated to have made up to $4000 in additional profits and saved twice as much – and it’s all thanks to SMS messaging.

First trialed in India, and now being rolled out in other emerging economies, Reuters Market Light (RML) has had a truly revolutionary impact on the lives of rural workers since being introduced. This noble scheme was designed to level the playing field for remote farmers operating in a globalized marketplace. The service acts as a watchdog-cum-information-hub for agricultural commerce, issuing crucial information to people who may not have internet access.

It’s a far cry from the sophisticated mobile marketing tactics employed in the western world, but RML has demonstrated just how powerful SMS messaging can be in the absence of smartphones and web connectivity. Thus far, millions of farmers all over the world have received vital updates throughout the season, with information tailored to the specific needs of an individual’s profile. Information like regional and global market rates for crops; local weather data and disaster alerts; advice on increasing productivity and reducing risk, and other information that could have an impact on operational costs.

The scheme is intended to safeguard vulnerable workers against exploitative middlemen who seek to undercut them. There’s no shortage of compelling testimony to the efficacy of the work being done by RML. One story tells of a grape farmer who began exporting produce to Russia after learning of the country’s higher prices. It’s estimated that a staggering 1.2 million farmers in India are using the program to improve their chances.

RML offers a moving demonstration of how the humble mobile phone can help some of the world’s poorest people without the bells and whistles of the smartphones which proliferate among the world’s richest. SMS messaging, it seems, is powerful enough to raise living standards and brings some semblance of equality to a globalized economy. Kenya has used SMS messaging payment programs to reduce robbery statistics, with an amazing 25% of the country’s GDP now flowing through the M-Pesa system.

Studies indicate that introducing ten cell phones per one hundred people in the developing world can boost economic growth by 1%. RML, M-Pesa, and others are truly improving the lot of some of the hardest-hit regions on earth, giving citizens cheaper services, better access to crucial economic data, and ultimately creating greater expectations about acceptable living standards.