I have just been sent over a list of the top 10 things you need to know about mobile applications, compiled by the IAB (Internet Advertising Bureau). I believe they are spot on and typically what I preach as such I felt the need to share:

1. Only do apps when you need more. Compared to browsing, mobile apps offer a richer level of user interaction allowing more complex graphics, media and information to be presented. They also provide a more robust and secure environment for user engagement. But, if you can deliver what you are trying to achieve through a browser you will be able to reach far more consumers. Jeremy Copp, CEO, Rapid Mobile Media Ltd

2. Tell people about your app. Don’t just rely on app stores, you can distribute apps via mobile sites, operators and through multiple ad placements and formats for maximum impact and reach. Theo Theodorou, EMEA Sales Manager, Mobile Advertising, Microsoft Advertising

3. Think further than the iPhone. The iPhone offers fantastic functionality for developers and users alike, and apps developed for the platform are eminently PR‐able, and are often shared virally. It has a fast growing user base, and reaches relatively wealthy 25‐44 year olds who actively use mobile media very well; but also developing a java version, optimised to work over a wide range of handsets including BlackBerry will give you a far greater potential reach. Mark Angell, Business Development Director, Marvellous

4. Getting the balance right. There are 2 fundamental balances to achieve. Firstly, business objectives vs user needs‐for the application to be effective the business needs must carefully consider the user as well as commercial objectives. Secondly, the three E’s (Engagement, Entertainment and Effectiveness) ‐functional apps often outlast the usage of entertainment based apps. Paul Taylor, Strategist & Planner, COI

5. The average app user. There are 8.7 million people who have used a downloaded app in the UK which is 18% of mobile users. 60% of these users are playing games that they have downloaded. The median age of an apps user is 32 years old and 43% are female. 36% of app users own smartphones compared to 15% of the total market. Alistair Hill, Analyst and Mobile Products, Europe, comScore

6. Brand‐building vs sales. Free applications get the most downloads, where as paid‐for applications generate revenue. Knowing whether you are branding or selling is a key point when launching your first application. Ross Butler, Creative, Parrott and Miller

7. Product longevity is essential. Every service needs a roadmap, no matter how basic. Customers will quickly get bored with a uni‐functional app which has no new features or capability added over time. By adding functionality as time goes on you can create brand advocacy. Christian Harris, CEO, Gorilla Box

8. Send them in the right direction. Ads in existing applications are a great place to advertise, but make sure that the destination site is optimised for mobile. If you don’t then you risk low conversion and a poor perception of your brand. Jonathan Abraham, Brand Sales Director, AdMob

9. Test, Test and Test again. If a customer can access it on their handset it needs to work. If it doesn’t it will do more damage than good to your brand. Invite feedback and always read customer reviews (don’t just ask friends to write them!) to ensure you’re meeting the needs of your consumer. Oliver Newton, Head of Emerging Platforms, i‐level

10. Be on brand. Just like with any form of communication ensure that your app is ‘on brand’. Tone of voice, brand values, message, production values and brand fit are essential in making a great brand app. Kieron Matthews, Marketing Director, IAB

In-Brief: Local focused mobile advertising will present significant revenue opportunity and will be one the few channels to buck the downward trend in advertising spend over the next few years. In looking to reap rewards the single biggest challenge will be about providing an offer that is simple, accessible and delivers value to the consumer.

There is so much doom and gloom about local advertising – across newspapers, direct mail, TV, radio, yellow pages, outdoor, magazines and fixed online collectively forecast by BIA Financial Network (BIA), parent of the Kelsey Group, to decline to $144.4 billion by 2013 from $155 billion last year. Despite this the decline is clearly not going to be consistent across the full range of media. With budgets under pressure and advertisers beginning to demand far more tangible results, traditional media as we know it is likely to be hit far harder.

As consumers continue to turn to online services, traditional media will become more and more redundant as an influence in the purchasing decision. Marketers have long realised this trend and increasingly turn their attention to online and new media channels. Online commands an ever increasing share of spend. BIA has forecast the new media share globally to grow from around 9% today to over 22% by 2013. A recent study from Pricewaterhouse Coopers (PwC) predicts by 2013 the new media share of advertising in the UK will be around 34%.

So the advertising market is going to shrink and see a substitution of spend. Not exactly positive until you consider where a significant amount of spend is today – traditional media. The opportunity exists for the traditional players to migrate value to their online assets. The changing environment demands a significant rethink of the traditional media business models and operating principles to potentially even survive.

The media futurist Jeffrey Cole suggested that a key challenge is the reliance on traditional advertising models, “The problem I see is that these people often believe that there is enough life left in the ‘old advertising model”. Cole went on to say “I really believe we are still waiting for ‘indigenous’ advertising techniques. I think the big breakthroughs will be digital advertising developed by those who grew up their entire life with digital media – hence the word indigenous.”

Mobile I believe will be a very different story, and one of the few channels to see significant organic growth. It is already being driven by leaders who are not bound by legacy thinking, business models and operations. They recognise the old models will not bear fruit, a new approach is required and the potential rewards mean it is worth it.

In terms of numbers, the Kelsey Group recently reported they expect mobile local advertising revenue to reach more than $3.1 billion by 2013, up from just $160 million in 2008. In May this year the Internet Advertising Bureau (IAB) reported UK mobile advertising spend for the first time in 2008 mobile advertising was £28.6 million. In isolation these figures today do not sound particularly impressive, and the 2013 figure potentially unrealistic, until compared to the fixed online environment. In 1998 the IAB reported UK internet advertising spend of £19.4 million, just 10 years later spend has grown to over £3.35 billion.

The Kelsey Group forecast for mobile advertising means it could outstrip anything that has gone before, making the mobile channel one of the fastest growing advertising channels of all time. A remarkable feat when the overall advertising industry will be in decline.

Why is mobile so different? Consider the audience. In nearly every country in Europe and around the world mobile has mass penetration – a large audience to target.

Mobile ticks so many marketing boxes.

Some of the most prolific mobile users are aged between 18 and 30 years old – a very attractive demographic to marketers and notoriously difficult to reach. A mobile is a very personal device and is rarely shared – making one-to-one marketing a real possibility. Consumption of mobile services continues to see rapid growth – people are open to consume new content. Mobile activity is often needs driven and action focused – consistently close to the point of purchase. At every level activity and audience actions are measurable – return is very transparent.

For these very reasons I view mobile as one of the great untapped channels for brands and media owners alike. This is not revolutionary but potentially controversial when I consider those who I believe are likely to win out and why.

Who are likely to be the key players? There are a number of players that are vying for position in the mobile local space. At one end of the spectrum you have the search engines, Taptu, MCN, Google, Yahoo etc. at the other the directory publishers, Yell and Pagine Gialle, Pages Jaunes etc. In addition there are the social networks, media owners, verticals, handset manufacturers and mobile operators who all too want a slice of the action. The market is already crowded with get rich expectants and the race for signing deals to support distribution and gather content firmly on.

For most, if the current approaches are maintained I believe that we will see just a handful of mobile players becoming highly successful. The barriers, complexities of the channel and challenges of distribution and discovery play into the hands of some of the established deep pocketed players. This balance does not have to be the case, when you consider the real opportunity will be created by organisations that use the technology and channel in a smart and meaningful way to deliver real value to the consumer.

Who are going to be the winners? 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. Sounds simple but why are so many still getting it wrong?

In short, lack of focus and understanding of the channel. Those who are delivering good results have largely franchised mobile away from their traditional business and brought in those with ‘indigenous’ experience. For some time leading digital agencies such as AKQA and Ogilvy and progressive media owners like the BBC and Sky have had dedicated mobile teams. Others are now following their lead with dedicated resources as they either realise the true potential of mobile or are pushed by their clients to engage.

Some of these have used the mobile channel to great effect. Brands like Guinness with their ‘Passport to greatness’ campaign, British Airways with their ‘Mobile check-in’, HSBC with their ‘Business banking’, Sky with their ‘Remote record’, BBC with ‘BBC mobile’ and New York Times with their ‘NY Times’ iPhone app all show they get mobile and the mobile consumer. All have dedicated teams or experienced agencies that understand usability and focus on mobile. Mobile is treated in relative isolation but remains firmly part of the digital mix.

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 players with structured local content should have a natural advantage. In a previous column I wrote for mSearchGroove (MSG), I said that directory publishers are best placed to deliver compelling local mobile services and importantly commercialise them through advertising. I still firmly believe this should be the case. They are best placed to commercialise the channel, all have existing customers and a very powerful sales force to sell advertising products. Despite the opportunity the challenging business conditions that many find them self in today are impacting on their ability to focus on the mobile environment and realise opportunity it presents. This leaves the door wide open.

Why is the mobile experience different? Go back to grass roots. For most people the mobile is a communications device. This is unlikely to change. What else it is capable of is increasingly important. The device has evolved into a multifunctional tool – it is our social organiser, our information resource, our boredom filler. Basically, it supports our lives. Personal attachment is unrivalled. As well as the form factor this is what makes mobile different.

Mobile comes with a whole set of new rules. The challenge is that many businesses have not yet figured out these new rules. Most try to adapt what they understand from existing media and simply move it to the next. This will not work. Understand these new rules and the channel can deliver real returns. A good start point for many will be to answer three core questions: ’how’ are you going to approach? ’why’ is your offer relevant? and ’what’ do you expect a consumer to do?

Despite a tough economic outlook for advertising mobile is set to buck the trend it will present a significant opportunity for many. I believe the jury is still out for those that can and will be winners. What is for certain is those that continue to carry on a path which does not reflect the potential new rules and the recognise level of expertise needed to execute are unlikely to reap rewards.

As a marketing medium mobile is only set to grow in value. A channel that brands and advertisers can no longer afford to overlook as part of their mix, as such the potential for commercial reward will increase. Providers who get the basics right, deliver features that add value and bring together quality partnerships that enhance the offer and support commercialisation will be the likely winners.

Importance of mobile is increasing, the channel is set to become a primary content environment for the majority. Gearing content and commercial capabilities for mobile will be key. 

Need more advice?  We specialise in mobile and are here to help.

Directory Publishers Can Beat Google & Co. To Lead In Local Mobile Search & Services If They Provide Actionable Answers

In-Brief: Directory publishers are better positioned to deliver compelling location-based information and services than rival portal providers and search engines.

At first glance it may appear that the nimble newcomer Web 2.0 companies bursting on the scene are best-positioned to benefit from the buzz around location-based services. However, a closer look reveals that it is the directory publishers – namely, the established location information providers we know from print and the Internet – who have the corporate DNA and the track record to deliver compelling location-based services and – more importantly – monetise them through mobile advertising.

Granted, it may be early days but, in my view, that is all the more reason why directory publishers must prepare to seize the mobile opportunity. Indeed, with revenue streams for paper directory and published products in near-term decline, and an increasingly fragmented market for online services, mobile is the only channel that offers real and sustainable growth. Without a doubt, mobile is going to play an important and valuable role in reinforcing the presence of directory publishers and their product offering, and deliver a significant supplementary source of new revenue.

So how do directory publishers get there from here? To capitalise on this emerging opportunity, publishers must first create a consumer relevant mobile offering that can be delivered to a mass audience.

Put simply, directory publishers must “think” mobile. It is not just another screen, as some in the industry suggest. I contend the mobile environment is different for two main reasons.

First, neither the devices – nor the offers – can be classified as “one-size-fits-all.” The diverse range of mobile devices are all extremely varied in their capabilities, user interfaces, core features, computing power, memory capacity, and operating systems. To complicate matters, new devices are continually being introduced to the market that must be supported and factored into the service equation. As a result, directory publishers must develop offers that are accessible to a large potential user base across a broad range of devices, without incurring overbearing maintenance and support costs.

Second, mobile is about finding information on the fly. Consumers may browse on their PCs, but they expect a vastly different experience on their mobile phones. On mobile, requests and search queries are more likely related to the consumer’s individual circumstances or situation – in, short, their context. What’s more, they expect immediate answers and demand actionable results, all of which require customisation.

It’s easy to assume that only made-for-mobile companies – such as portal providers and search engine companies – have what it takes to cash in on the mobile opportunity. However, these players share a fatal shortcoming that plays in the favour of directory publishers. They lack a highly developed and effective sales force. Fortunately for directory publishers, this is a key strength in their competitive arsenal and one that I suggest represents the highest barrier to entry to competitors.

Put simply, if publishers can generate usage to mobile then their sales force will be able to monetise it. I therefore strongly advise publishers to sharpen their focus on mobile and do all they can to increase usage of this channel. Developing features for the mobile platform that will ultimately allow their sales force to demonstrate proven value is more than a winning strategy; it lays the groundwork for a slew of services that deliver consumers a genuinely relevant and useful end-user experience – a deliverable competitors are still struggling with. After all, the quality of answers a service delivers can only be as good as the information the service provider has collected and categorised – and I’ve shown directory publishers have a head start on both counts.

But this isn’t the only ace in publishers’ hands. They can also draw competitive advantage from:

• An established market position and existing brand recognition amongst consumers.
• Content that is focused towards a buyer and therefore ideal for a mobile user.
• A well developed classification structure and taxonomy, which is well understood by consumers.
• A depth of location knowledge and understanding of location hierarchy, which enables highly relevant local based results to be presented.

These combined strengths empower publishers to define the ideal service offering for mobile. But they must be careful not to lose sight of the consumer. I have only too often seen publishers overlook the end-user of their services, with severe consequences! It is essential that directory services focus on efficiently delivering information and results that empower consumers, provide them choice, and support an actionable outcome. These actions vary but can be divided into the following categories: call, share (with friends/family), save, book or buy.

With the ground rules for a successful mobile service offering established, what’s the next best step for directory providers determined to harness mobile? This depends to a large degree on the service the publisher wants to deliver and – more importantly – on the publisher’s own in-house capabilities.

Creating and customising mobile services is no easy task, and directory publishers should be careful not to overestimate their capabilities or underestimate the amount of planning and effort involved. They may have deep understanding of print and Internet, but this knowledge is hardly transferable to mobile. Put simply, the specialist nature of the mobile environment and technical challenges associated with developing, implementing and supporting services, are competencies that most publishers simply do not have.

On paper, directory providers possess the capabilities that put them in pole position when it comes to monetizing mobile. In practice, directory publishers nonetheless lack experience in the conceptualization and creation of compelling mobile services that satisfy the criteria I have identified.

If directory publishers are to deliver a market-ready mobile offering, then it makes business sense for them to outsource services development to companies that have mobile in their DNA.

Today, we are seeing a trend to outsourcing as more of the world’s leading directory publishers partner with specialist companies for core technology and development skills. These directory publishers realise that outsourcing key capabilities does not result in them losing control. To the contrary, outsourcing frees valuable resources, allowing publishers to develop a more flexible approach to market and deliver products and services with far shorter lead times.

In line with this trend, a number of companies have sharpened their focus on helping directory publishers extend their offer to mobile. Granted, each has its area of expertise, but directory publishers should choose partners that are specialised in three key areas simultaneously:

A winning strategy is one where the directory publisher and specialised partner have a clear division of talents and responsibilities. In this scenario the directory publisher outsources application development, implementation, and operation. Search and presentation rules, business listings, and advertising content are managed internally by the publisher.

This approach enables publishers to focus their resources on what they do best: Wielding their highly-developed sales force to wring more value out of mobile. This allows them to deliver benefits for themselves, in the form of monetiseable services and advertising, and for their customers, in the form of useful and relevant results and answers. Leveraging the expertise of a specialised partner ensures the delivery of a robust commercial channel.

With this check-list in mind, I have reviewed the players and value propositions on the marketplace. A company high on my radar is Mobile People, a local mobile search and advertising solutions provider whose capabilities mix includes significant strengths in the three key areas I outlined above. Notably, Mobile People’s client list includes directory publishers including Yell, Sensis, and World Directories – publishers widely considered to be among the most active – and successful – in the mobile space.

Mobile People is keenly focused on developing and operating mass market orientated services. To accomplish this, they port and operate services for large numbers of devices. The company, which has established its own User Lab to engage end users throughout the design process to evaluate the desirability of new ideas and possible solutions, views usability and performance as a top priority. This emphasis on the end-user experience pays off in rich features that delight the customer, drive additional usage, and move the mobile Internet a huge step closer toward becoming an indispensable part of our daily routine.

Location-based information and services are indisputably a potent way to generate value. Like all industry sectors, mobile will pay the biggest dividends for the companies who harness it first. Directory publishers currently have an important head start on portal providers and search engine providers, but these competitors are stepping up efforts to close this gap. For this reason, directory publishers are well advised to move fast and recognise their limitations. Chief among these is their inability to deliver an end-to-end mobile solution on their own.

Once directory publishers are clear about their true capabilities – and developing mobile services that deliver actionable results is not one of them – then they should choose a specialised company to partner with and get down to the business of monetizing mobile. As I said, reduced barriers to entry and shortened times to market mean the mobile space is not only crowded; it has become fiercely competitive.

Trial and error is a risky business strategy that costs time, resources, and shareholders’ patience. High performance directory publishers such as Eniro, Sensis, World Directories, and Yell demonstrate that collaborating with specialist companies is not only a smart move; it delivers sustainable results.

Published on mSearchGroove: www.msearchgroove.com