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).

Mobile. Touch. Web

In the past 15 years technology has changed in ways that no one could have forseen. Now with the convergence of the mobile Web and touch screen technology we’re embarking on another journey into the unpredictable. However… 

A Collaborative vision

If we’re all heading in the same direction why not make use of the hive mind to prepare ourselves? We asked some leading industry thinkers what they thought. To make it easier to digest we’ve grouped these thoughts into common themes.

Take a look at what other people are thinking.

Two videos based on a great publication from Young and Rubicam – presented by Simon Silvester.

MOBILE

• Always on
• Always with you
• Always connected

The world is changing as the mobile becomes the computer.

Part 1:

Part 2:

iSyndrome (ai sindreum) n. a symptom, characteristic, or belief, that building an iPhone application translates to = mobile strategy.

In conversation with leading mobile search expert Peggy Ann Salz, of mSearchGroove (of which I am a Guest columnist), we ended up talking about some of the fundamental challenges that organisations face when defining and developing a mobile strategy. Having delivered mass market services in three continents – trust me there are many!

(Peggy has challenged me to make my next mSearchgroove column post around this topic).

After the conversation I was making some notes – a phrase sprung into my mind ‘iSyndrome’, as I was thinking about how many individuals and organisations that have been drawn in by the hype, media, technology buzz surrounding mobile – caught in the iPhone trap.

I shared on Twitter, leading Author Tomi Ahonen was quick to respond with a ROTFL – Rolling On The Floor Laughing – and will provide the great honour of attributing the phrase to me in future presentations.

So here is What I meant…

Having been involved in supporting the development, delivery and launch of mass market mobile services for customers around the world I wanted to highlight one of the fundamental issues I continually witness. 

I see so many organisations investing in mobile without really understanding what they are getting themselves into. Many are spending large sums of money and sadly will likely see very little return (or even worse create negative brand perception amongst consumers). Why?  They are delivering tactical solutions – failing to recognise the addressable market, the mobile environment, understand the ongoing costs of their decisions, falling short of consumer expectations, led by people who are not acting in their best interests.

I am not going to knock the iPhone as I believe that it is a great device, although I no longer use one for daily activity, I have owned two and still frequently use one to trial applications. However, I wish to put the device in perspective in terms of the market and more importantly strategic thinking.

i Syndrome: in the UK the iPhone makes up about 4% of mobile devices in circulation (that’s if we count all the legacy devices too), Android even less – a small slice of the pie. Of all mobile devices; some 70% accessing the mobile web are not Smartphones, some 62% using Applications are not Smartphones. The penetration of Operating Systems (OS) Apple, Blackberry, Android are all low single percentage figures - niches – ask Comscore.

The mass market does not use Smartphones. Yet organisations are spending huge sums of money targeting the Smartphone segment, and worse niches of it, rather than viewing the addressable market. They are getting drawn in by ‘cool’ factors. Doing so they are failing to understand the barriers that exist in what is a highly fragmented proprietary environment and that those barriers will potentially significantly limit their ability to get traction.

People may/will argue that iPhone users make up a disproportionate amount of the time on mobile web sites. That may be true but iPhone users are a relatively small number and are very service transient. As reported by Flurry 70% of application users typically stop using a service after just 60 days.

Developing the coolest iPhone App on the planet is a great ambition, some believe it demonstrates a dynamic business, but the reality it hugely limits market potential. I ask sometimes why even an App? The more features added the more expensive it is to develop and the more likely that fewer people will be able to use it. Many of those features will not be transferable to other devices or platforms – creating your own micro fragmentation and adding to the overall managment headache.

Think iPhone, not everyone in the UK has an iPhone 3GS some have older devices and operate on different Operating System (OS) versions. Despite this many do not consider key elements – backwards compatibility, potential for bugs, updates, version control, signing and approval processes…. they don’t understand the implications of their decisions.

Key is to understand these 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).

(Follow us on twitter : @indigo102)

The DUST has settled from this 2010’s mighty industry event – Mobile World Congress (MWC) in Barcelona – yet a FRENETIC interest in EVERYTHING mobile remains. Mobile the HOT topic and a MUST have.

For many ORGANISATIONS it almost seems that if mobile is not on the AGENDA someone is going to be held RESPONSIBLE. The result we are seeing a STREAM of services launching – many with no real PURPOSE, offering no real VALUE.

Rather than ADDING to the ecosystem they are actually potentially causing DAMAGE. They are turning consumers AWAY and WASTING large sums of money in the process. The low RETENTION levels amongst users of applications and services [reported by Flurry analytics] testament.

ORGANISATIONS need to understand that mobile is VERY different. The DEVICE; personal, a communication medium, lifestyle orientated….CONSUMER; perceives to be paying, never reads a manual, typically wants something, patience and tolerance is far less.

STRATEGY needs to be returned to the forefront. Forget the COOL, the PLATFORM, the TECHNOLOGY, the DEVICE – they come later, at the point of EXECUTION. The important part is to get the OFFER, the consumer PROPOSITION right FIRST.

It APPEARS many organisations have be SUBSUMED by the technology and are SUFFERING as a result. For many they NEED to get SPECIALISTS in to help understand the channel and HOW they can deliver VALUE. To capitalise in the FIXED-ONLINE environment most have developed SPECIALIST teams – mobile should be NO different.

Mobile has the potential to be a far BIGGER opportunity for many organisations than the fixed-online environment REPRESENTS, even today. For those that WANT to succeed they should SEEK support from those that really UNDERSTAND the channel.

Image from from Cobrasoft at Stock.xchng

Key for Traditional media owners to succeed in THE NEW NEW Media world is to determine their unique strenghts and essential characteristics and then focus.

If the relevant organisations can understand their unique strengths and the essential characteristics to their offer then there is the possibility of mapping a sustainable future. Digital has changed the landscape for good; time is fast ticking away for the traditional media owners to seriously get on board. (Post: The changing face of media).

Take newspaper publishers. For a long time, newspapers have not been only about “news”; nor have they been only on paper. They have been about selection and quality content; they have signposted other sources of information.

For newspapers, there are certain areas where each has strengths. Focus needs to be brought firmly back to these strengths, other areas stimulating wider engagement, discovery or back-fill.

The new digital technologies can and should empower individual journalists, helping redefine what a journalist is and what skills they need – and which consumers can support in the role. (Post: Changing shape of content). Responsibility for value needs to pass to the writer, as the new sales (or preferred ‘engagement’) agents they need to be tasked to deliver the returns.

Different models can and will co-exist, paywalls potentially one of them. The key will be to deliver content that has a perceived value, achieves distribution and engagement. Then the revenue can flow.

Take directory publishers. For a long time directories have not just been about “business listings”, nor have they been only on paper. They have been about comprehensive and quality local content; they have provided guidance on selecting the purchase.

For directory publishers, there are certain areas where they have strengths. Again focus needs to be brought firmly back to these strengths, other elements and features supporting the purchase decision, consumer action or discovery and engagement.

Different models can and will co-exist. The key will be to deliver a tangible value to the businesses or organisation spending money, to enhance their potential to be discovered, increase sales or support consumer interaction.

The challenges facing both are not dissimilar.

To succeed, traditional media owners need to rethink radically not only their business models, but also how they manage their businesses; they need to overhaul outdated organisational structures; they need to consider how they relate to all their employees, to third-party providers of content and services, and to individuals with whom they may have no contractual arrangement whatsoever.

Most crucially, they need to rethink how they relate to their communities of readers, subscribers, and users, when they know next to nothing about members of their digital audience. They need to identify their most loyal users and then work harder to meet their individual needs.

First instance, they need to embrace THE NEW NEW Media world – many still have not. They need to get people involved that understand the new world and importantly what it is going to take to transform their organisations. The Telegraph Media Group (TMG) is one of the traditional players to publically recognise that a radical shift is required.

Under the guidance of editor-in-chief Will Lewis, TMG are transfering the digital parts of the old organisition into a new entrepreneurial digital venture – dubbed the Euston Project -  in order to “capitalise on cutting edge ideas” and “drive new revenue streams”. Their target clearly stated as a move to turn TMG, or a significant chunk of it, from a media company into a digital company. For many an approach of isolating ’digital’ is what is really going to be required to potentially succeed – others should follow this lead.

One thing that is for sure for traditional media owners to succeed, it is going to be a tough and long journey – but they need to get moving.

 At Indigo102 we can support in helping develop digital strategy and in particular define how mobile can play a valuable part, and then helping to deliver - we demonstrate the ways you can get better results without necessarily investing more.

(Image: binaural-beat-digital-drug by digitalbob8 from flickr.com) 

The frenzy has started as organisations jostle for a position in the mobile application hall of fame – ‘Local’ is shaping up to be one of the most hotly contested areas. What is it really going to take to make a mark and how ‘Local’ can you go?

The Apple strap-line resonates – “There is an App for that” – however creating an application does not mean a business will prevail. Many organisations seem to overlook the value part of the process – how are they going to deliver a sustainable model? Not one that relies heavily on investor generosity.

Who is going to ‘use’ the application and who is going to give you the ‘money’? Sounds obvious until you look to some of the fixed online giants – Facebook, Twitter and YouTube – who have huge usage, amazing associated price tags, but have yet to find a way to get anyone to give them real money. All now seek the revenue model –  a challenge as none want to upset the value chain that has given them their success. Making money would have been a far easier process if it had been defined from the outset.

In terms of ‘Local’ this should be obvious – consumers will use and businesses will give money. (If only life was that simple!)

Need for consumers

Setting distribution and marketing aside businesses need to focus on the offer. To get a consumer to use an application it has to offer something they actually want - utility is essential. Without utility a consumer will simply not come back. Analytics firm Flurry recently reported that on average a consumer uses a single mobile application an impressive 6.7 times a week, but also that over 70% of consumers stop using an application after just 60 days. Retention levels of around 30% are clearly not ideal when looking to build a sustainable business. This is especially true when you consider the application environment is becoming ever more crowded.

In a post recently I discussed how the outcome of the service interaction is so important – the consumer action is usually why they came. Recognising ‘what’ a consumer wants to do? is one of the most important components to deliver against. For Local the ‘what’ – call, book, buy, visit or simply provide information – is so important. A successful outcome will encourage a consumer to come back.

Context of ‘Local’

A critical mass of content is essential. A local service becomes useful when it has mass market appeal. Whether it is linked to a single street, district, town or city is largely irrelevant. A shopping guide needs all the stores, not just one or two, a Social guide all the bars and clubs. A core and consistent level of content is a must. Local information typically means a fixed location, building or business. The best historical players in this space are the Yellow Pages publishers as they have the basic details of all businesses – name, address and telephone number. Their challenge is that there are no attributes linked, reviews and comments, images – simply no life. 

It is possible to create or obtain core content, you just need to factor in cost and consistency. As this will form the basis of the Local offer it is important to get it right – otherwise consumers will simply not come back.

How ‘Local’ can you go?

Mobile and Local, two scenarios spring to mind – ‘where I am now’ or ‘where I am going to be’. A common mistake that many location based services make is to assume your current location is important – often it is not. Mobile is about ‘mobile’, it is about roaming. Understanding location is a key part in any service offering as it helps define what is relevant and what is not. This is far more challenging than many believe.

Local at a micro level means content – very rich content – which can be very challenging to deliver and scale. Local at a macro level – comprehensive content – can be challenging to deliver added value and differentiation. The credibility of a Local service will be judged on an area that a consumer is familiar - if positive trust will be instilled. To deliver a truly compelling and encompassing local service from scratch is likely to be a tall order for any organisation. Partnerships that add value and enhance the offer can and should play a valuable role. Whatever the offer, the service needs to evolve and do so in a timely manner to keep consumer interest and engagement. Strategy should reflect all these elements.

Show me the money

Once Usage has climbed to great heights attempts to deliver commercial value begin. It is unlikely that this will come from Users – they have become very reluctant to pay for anything in the digital environment – so businesses become a focal point. Commercial development needs to support delivering an actual return to a business, ideally with no impact on the application utility or usability.

Seeking money from businesses is a challenge and it is a very crowded market and a difficult one to gain a foothold in as there are very established players. Large businesses deal through agencies, small businesses don’t have the time. There are ways the key is to know how to use them for advantage.

Retention of users and usage frequency will become far more important for mobile services and should be central to mobile strategy for many organisations as they start to attempt to deliver real value from mobile.  

Last week I posted about the shocking reality of the retention levels of Apple and Android Applications. Analytics company Flurry recently reporting that some 70% of users do not return to a service after just 60 days. Despite the poor retention level, those that do continue to use services average a very respectable frequency of 6.7 uses per week -  showing loyalty does pay.

The retention figure indicates applications have in effect degraded into a series of “one-off offers”. If this continues, for many organisations the numbers will simply not add up to a sustainable business model. And to re-engage a consumer for a second time is infinitely harder and far more costly.

Why is this happening? I believe this is due to the continued attention around platforms - iPhone, Android, Bada, Microsoft etc. – is distracting many organisations. To the extent that delivering an Application has seemingly become more important than the actual offer. The result is many services fail to deliver to consumer expectation and their interest is rapidly lost.

This poses the question - If only service providers could increase retention levels and maintain frequency of usage?

This is achievable but requires a slightly different thought process.

The reason consumers return to a service is because it offers something that is useful. Typically a consumer when mobile wants something, usually now – patience and tolerance is reduced. The outcome of the service interaction is so important – the consumer action is more than likely why they came in the first place. Recognise ‘what’ a consumer wants to do? This is one of the most important components to deliver against.   

A second area – determine ’why’ the offer is relevant to ensure the service delivers. Often more is less, just because elements flourish in a fixed online environment does not mean they will in mobile. The offering should be defined strategically and designed to evolve, this will support ongoing engagement and retention.  

Once the ‘what’ and ‘why’  are defined the ‘how’ to deliver  becomes important - an enabler that brings a service to life. The ability to deliver services to your audience; the format of those services, the platforms they operate, the priority and scheduling of development, the investment required, then become part of the mobile strategy jigsaw.

Reversing the process in this way – what, why and then how – ensures a focus on the consumer, rather than become embroiled in the ‘cool’ factor trap of mobile that we see many fall in to today. Get this right and improved retention levels and usage will result. This will in turn support the delivery of real value.

Apple has announced that its App Store has now generated more than three billion downloads. News flying around about the partnership of Comscore and Flurry has brought something quite alarming into the open; iPhone and Android Applications for many organisations actually today represent a very poor investment.

Why? Retention of users to iPhone and Android applications appears to be far worse than many would expect – many seemingly don’t get far past the 30 day or one month mark. In the stats published by Flurry, after 2 months an average of just 32% of applications are still being used, after 3 months just 25%. The worst performing category is listed as ‘lifestyle’ with a retention rate of just 5% after 3 months. (See table below).

This really should not be the case. It raises some serious issues. Clearly many are failing to recognise the ‘mobile’ element of the service offering; understand the core principles of mobile and dynamics of digital. Services are being brought to the market with no strategic view towards evolution and ongoing consumer engagement.

For the organisations that we support this level of consumer retention would simply not be acceptable. Organisations typically spending 000’s of dollars on services wish to see a level of return on their investment. For most these returns will not be delivered in days, but weeks and years. Many want to establish sustainable business models, not here today gone tomorrow plays.

Flurry collects mobile application data from approximately two out of every three iPhone and Android devices. Each month, the company aggregates application usage data from over 1 billion end-user sessions across more than 50 million unique handsets from more than 200 countries. Over 10,000 developers have chosen to integrate Flurry Analytics within their applications.

A releated post: Mobile strategy – iPhone should factor but certainly not dominate.