Study Shows Double Digit Growth of Local Mobile Usage, Unlocking Access to Younger, Wealthier, On-the-Go Consumers

“A US report published today by Comscore and the Yellow Pages association has shown that Consumers looking for local businesses are increasingly turning to their mobile devices to access Internet Yellow Pages and local sites, while similar local searches performed on personal computers grew at a steady but slower pace.

The number of mobile subscribers accessing business directories on a mobile phone increased 14 percent year-over-year to 17.3 million users in March 2010, extending the reach of Internet Yellow Pages beyond just the personal computer. This increase outpaced 10 percent growth in the number of mobile media users who browsed the mobile web, used applications or downloaded content during the same time period.

“Mobile offers significant opportunity, both for consumers who need convenient and reliable sources of local information on-the-go, and also for local search providers that are making this content available in new and innovative ways,” said Neg Norton, president, YPA. “Yellow Pages and other local sites that have a legacy for providing trusted local business information via print directories and Web search tools are best poised to take advantage of this phenomenally versatile and interactive media. Mobile allows them to extend Internet Yellow Pages to consumers wherever they are.”"

The greatest challenge for many traditional media organisations is that they simply do not understand how they can open the mobile channel and get it to start paying dividends. Although they are the best placed to commercialise and win big, many are simply not developing the foundation required to succeed - most seem like rabbits caught in a cars headlights, bamboozled by technology and swayed by the seeming ‘cool’ factor. For many knee jerk tactical development has usurped strategy - this will cost dear in the long term (a grave mistake as they have discovered in the fixed online environment) unless they start taking steps to rectify now. Mobile does not have to be the same as the fixed online environment.

Not surprising is the next part of the study – Mobile browsers are the most common method to access services, what is more surpising is the massively dispropotionate expenditure being directed towards the development of applications. WHY? Again I can only suggest a knee jerk reaction (see iSyndrome – why limit your slice ofthe pie?). Organisations need to be thinking about adopting a balanced approach, one that will enable them to capture users and importantly retain them in the long term. The highly fragmented approaches that many have adopted this is going to be very challenging to do in a cost effective way.    

“Apps and Mobile Browsers Clock in Growth

Mobile browser was the most common access method for users, with 10.8 million subscribers in March 2010 and 21 percent year-over-year growth. But even as the browser remained the most used mobile feature for access, apps grew at a more rapid pace with 42 percent year-over-year growth, totaling 4.1 million subscribers in March 2010.”

“Mobile Users Are Desirable Consumers

The comScore study finds that mobile media attracts a highly desirable consumer segment for advertisers. Mobile usage of business directories unlocks a younger, wealthier user base to advertisers. According to the report:

• 58 percent are 34 or younger.
• Over half have a household income in excess of $75,000.
• The number of people accessing business directories on a mobile device at least once per week increased more than 16 percent year-over-year to nearly five million in March 2010.

Mobile users also access content that is attractive for many advertisers. Mobile users who access business directories are three and half times more likely as the average mobile media user to access women’s magazine content, health information, real estate listings, and job listings via their mobile devices.

Local Search on Personal Computers

As local mobile grew double digits, local searches on personal computers saw single digit growth year-over-year. Searches on Internet Yellow Pages and portal sites increased 4 percent to 444 million in March 2010, or 5.3 billion annually. The overall universe of core web search — where users search for any kind of information on a major Internet search portal like Google or Bing — increased 8 percent to 15.4 billion searches in March 2010, or 187.3 billion annually.

Diving deeper into personal computer usage, people access Internet Yellow Pages and local online sites in a number of ways. Some visit Internet Yellow Pages sites directly by typing in the URL or with a bookmark, while others access Internet Yellow Pages through feed from other sites such as Google and Yahoo. Traffic to Internet Yellow Pages from these web search sites increased three points from the first quarter of 2009 to the first quarter of 2010, to 44 percent of visits. Direct traffic also increased over the same time period, up four points to 32 percent, while referrals from affiliate sites (advertisements, e-mail marketing, and other partner sites) decreased six points to 25 percent.

“What’s incredible about the growth in local search is that, even during a time of recession when many consumers reined in spending, the need to find a local business certainly didn’t go away,” said Norton. “Whether it is on a personal computer or a mobile device, consumers have more media choices than ever to find a product or service when they are ready to buy. Advertisers should be considering a multiplatform approach that combines a print, online, and mobile strategy designed with their target consumer in mind.”"

The oportunity is clearly there - literally staring Traditional media owners in the face - the reality is that many will simply not capitalise as they do not understand or see that mobile is very different to what has gone before. They need to get experienced players in that can help them lay down the strategic foundation and cut through the tactical distractions.

At Indigo 102 we specialising in bringing out the realities – communicate the benefits and risks – at the early stages. We work with organisations to build mobile strategies that deliver value over time and develop services that are sustainable. If we can support you to invest wisely and establish a sustainable mobile platform get in touch (martin@indigo102.com).

Yesterday Camerjam events hosted another great mobile service focused conference. The event titled ‘M-publishing’ focused on the future of publishing in the mobile environment.

The event opened with a great key note from the effervesent Jonathan MacDonald. Below:

As you can imagine there was a lot of talk about applications, I don’t how many times the iPhone was mentioned (a lot). I sat on a panel talking about the iPad, a core question – would the iPad market change the publishing industry? 

In short NO - publishers are the ones that will/should change the industry not a device! Why? - relying on  traditional models will simply not work in mobile the business approach and mentality needs to change, and fast. I have previously written about: Real Reasons Why Traditional Media (& publishers) Can Really (Still) Win Big In Mobile. 

Following on from yesterday there were a lot of topics covered, different approaches spoken about; native applications, web applications, paywalls, freemium, advertising… there were also some areas that were not really addressed, context (service and advertising), hybrid applications, user retention…  I felt compelled to share some thoughts. 

My advice to media owners and publishers when progressing a mobile strategy:

First of all: Mobile is a proprietary environment that is emerging and fragmented – there are NO right answers! There are methods to approaching mobile that will enable you to build a sustainable foundation and trial elements that establish the right strategic approach for your business. Having defined, delivered and successfully taken to market mass audience services in three continents there are many challenges and barriers that organisations need to understand. There are some methods that you should not use to approach the market. (See: Mobile: Why Run before you Walk…).  Start point:

MOBILE is another channel but it has very different characteristics to fixed online

• Reality of mobile – device is very personal, lifestyle orientated, user is paying (or percieves to be), no-one ever reads a manual, device is generally difficult to use (relatively poor interface)…
• Consumers when mobile – typically want something, immediacy is often critical, relevance is key, pulling information is not an issue, actionable is a pre-requisite…

MOBILE = COMMUNICATION & SOCIAL (Both natural parts of our life)

• Offer – unlikely we will find a new use for our mobiles so more than likely any service or product has to dovetail in to our existing habits and activities and offer value (or fun)  

PRESENCE = LOGICAL, RELEVANT & TRUSTABLE (The ’how’, ’why’ and ’what’ is so important) 

• Why? – Why are you interesting in mobile and why is your offer relevant to a mobile user (not just because it is a big audience!) 
• What? – What do you want a consumer to do as a result of interacting with your service
• How? - A common mistake that many make is to focus on the device or platform - iPhone, Andriod and now iPad etc. – tactics come into play as you consider execution, not from the outset.

Thinking tactically is fine if you wish to progress a niche path into the market – or develop a showcase service. If you wish to establish as strategic foundation this can be fatal. Don’t get caught up in the hype and technology. (See: ‘iSyndrome’ – Why limit your slice of the pie?) 

ENGAGEMENT = ATTRACTIVE, FUNCTIONAL & EASY TO USE (Services have to offer utility and deliver results)

• Features – Can add value or create barriers (i.e. some carriers/operators in the require applications to be individually signed if they use device features like PIM (contacts book) 
• Retention – Roadmap and adding new features/funtionality is important otherwise users will not comeback (See: Flurry of stats paints shocking picture of Application loyalty)

DISCOVERY = ACCESSIBLE, COMPATIBLE & PERFORMANT (Steps simply represent barriers) 

• Approaches – Re-directed, Leveraged, dedicated, unchartered, in-direct (each can play its role)

REPORTING = KNOWLEDGE, COMPARISON & EVOLUTION (Everything in mobile is potentially measureable) 

• Metrics - distribution, in-service activity, campaign tracking

REVENUE = RELEVANT, INFLUENCING & ACTIONABLE (Everything should firstly deliver value)

Key is to understand limiting factors – potential barriers – from the outset develop a mobile approach that can be controlled by the individual organisation and built from a consistent foundation, not one reliant on or constrained by third parties.  Get as much out in the open from the start! Think about the market – not individual devices and platforms – think about the consumer and the offer.

At Indigo 102 we specialising in bringing out the realities – communicate the benefits and risks – at the early stages. We work with organisations to build mobile strategies that deliver value over time and develop services that are sustainable. If we can support you to invest wisely and establish a sustainable mobile platform get in touch (martin@indigo102.com).

In response to a post on Forum Oxford.

The mobile web is going to be bigger that the PC web because there are simple more of us with access, the mobile always with us and turned on. Mobile will be the first point of access to the internet environment for many moving forward, rather than mutually exclusive the mobile device and PC will always likely be complimentary. For some activities a PC is always likely to be a better device to use.

Context is important. Although not always the case, but certainly the majority of times, mobile needs are quite specific. Consumers are typically looking to find something and do something. When mobile for many an actionable outcome is a pre-requisite. To ‘Find’ opposed to ‘Search’ an underlying motivation – immediacy often important, patience and tolerance far lower.   

Mobile Internet is not the same as the PC Internet. The context is often very different.

I recently wrote on the blog about the potential winners in mobile;

“The winners will be those not simply with content but those who can recognise and deliver a contextual, relevant tailored offering to a mobile consumer. It will be the ones that ‘get mobile’; those that deliver to the device capabilities, present the expected features, use location well, support social and viral capabilities, add value through marketing and advertising.”….

“I find it surprising that brands and media owners do not treat mobile differently. Ten years ago most saw the opportunity Internet presented and were quick to develop specialist teams that could take forward viable business plans. Not to approach mobile in the same way is like suggesting radio programmes translate well to television. The channels have very different characteristics and capabilities.”

The answer is not transcoding. In my view transcoding simply recognises the lack of optimised content for the mobile user. It is a very poor short-term solution. Why? Many of the transcoded sites do not support actions – it is impossible to contact the business or undertake the call to action. If many more businesses were actually aware of the impact of transcoding I believe that there would be a greater movement to stop it being applied.

The important element for many businesses is to reflect on the value that mobile could deliver and build for it – not just sit back. For many businesses mobile interaction will become primary, PC secondary. Their internet strategy and investment should recognise this.

For a demonstration on how mobile can play a valuable part in your digital strategy get in touch.

Yesterday French yellow-pages publisher PagesJaunes said growth was more important than balance-sheet concerns as it wanted the freedom to be part of an expected consolidation among local information providers.

Chief executive Jean-Pierre Remy told an investor conference the group had no debt due until late 2013, and headroom on its debt covenants of more than 20 percent, meaning the company’s net debt of about 2 billion euros ($3 billion) was low priority.

“At the moment, it is not a priority for us to work on the balance sheet,” said Remy, whose company is majority-owned by private equity firm KKR and Goldman Sachs. “We are embarking on a very aggressive growth strategy.

“I think there will be further consolidation in our business. I don’t mean the directory business, but local information,” he said, adding: “We need to get more flexibility on the options we have.”

Not only yellow-pages companies but also local news providers, especially newspapers, have suffered from a slump in classified advertising as small businesses, their main customers, have tightened marketing budgets.

Remy said he expected no rapid improvement on that front. “We don’t expect the advertising market to rebound in the short term or even in the mid term,” he said.

PagesJaunes has been faster than peers such as Britain’s Yell to move its business online, helping its profit margin. Some 40 percent of its 1.2 billion euros in revenues came from online products last year, compared with Yell’s 15 percent. ($1 = 0.6680 euro).

It will be interesting to see how much energy directory publishers now place into mobile. Pages Jaunes has a leading service position in terms of usage, amongst international peers, but recently admitted it has not yet managed to deliver a revenue from the channel.  With mobile advertising revenues forecast to grow by over 1,400% over the next three years we should expect the mobile channel to figure prominently?

Should we expect a similar announcement from Yell once their re-financing is behind them, and do we think they can catch-up in mobile?

Story published by Reuters.

I have been asked many times why Indigo 102 as a name. I tend to answer why not?

The first myth is no I am not aspiring to be a DJ and open a new radio station.

So why Indigo 102? Indigo has always been a great colour and represents a level of neutrality in an online and mobile environment – so that is the ‘Indigo’ part. For those with a design knowledge the RGB colour for Electric Indigo is 102.0.255 – so that is the ‘102′ part. 

For sticklers out there I know that we don’t use Electric Indigo in our Logo colours, that is because it is quite bright.