Archive for the ‘Mobile Marketing’ Category

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Up the Amazon Without A Paddle

Friday, December 16th, 2011

By Doug Stephens

The recent launch of Amazon’s price check app was greeted with everything from retailer outrage to government sabre rattling!  Some even called it evil!  Really? An app…evil?

In case you missed it, to commemorate the launch of the app, Amazon offered consumers up to $15.00 off their purchases if they used the app to price check items in local stores, before ultimately buying the same items on Amazon.  So, Amazon gets the pricing data and the sale, the consumer gets the discounts and the goods and the local retailers gets the pleasure of being the not-for-profit showroom. 

As you can imagine, this caused an uproar.  Retailers, industry associations and even a U.S. Senator joined the appeal for Amazon to halt the promotion.  Some felt Amazon was preying unnecessarily on brick and mortar retailers when they could least afford it – during the holiday sales run up.

Many cited Amazon’s “unfair advantage” on pricing.  I’ll grant you, the playing field isn’t perfectly level.  Amazon’s exclusion from having to charge sales tax makes it tough on their brick and mortar rivals but that isn’t exactly a new situation.  Online retailers have never been required to charge sales tax in states where they have no substantial physical presence.

If the only discernable difference between you and Amazon is the sales tax, you never had a chance in the first place.

Among the new rules of retail, there’s one that’s ironclad.  If your products, services and/or overall customer experience are not so substantially different from Amazon’s that you defy direct comparison, your life expectancy is limited.  And there’s no level of outrage,  complaining or Senatorial intervention that will change that.  In fact, Amazon won’t be your only worry – every competitor is potentially lethal when you lack any notable competitive differentiation.

And if you really don’t like Amazon’s price check app, brace yourself.  As smart phone sales continue to grow exponentially, more and more consumers are going to be wielding the likes of Google Shopper, Red Laser and a host of other apps aimed at directing consumers to the best possible price – and all other things being equal, they’ll take it.  The best retailers will focus relentlessly on ensuring that that all other things are in fact, NOT equal.

It’s just this simple:  Differentiate or die.

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Posted in Mobile Marketing, Store Experience, Strategy, Technology, Trends

The Problem With Mobile Wallet No One is Talking About

Monday, November 14th, 2011

By Doug Stephens

If you own a credit card, it’s entirely possible that you’ve run into situations where your card won’t work.  Maybe your credit limit was exceeded, your mag stripe lost its mojo or maybe the entire payment network was just temporarily down.  Whatever the case, they’re not pleasant situations but can usually be overcome with some other method of payment –  cash, debit, or another credit card perhaps.

What you’ve never had to worry about is dealing with a credit card with a dead battery.   But that’s precisely what could happen in a world where all payment methods are contained on your mobile devices.  When you need it most, you may simply not have power.   Imagine travelling and running out of juice, just as you need to buy a ticket for a departing train.  Or having your phone die just as your bill is presented to you in the restaurant.

The recent introduction of the iPhone 4S brings this potential problem to the foreground, with users complaining of as little as 5 hours of battery life.   And plugging in isn’t always possible when you’re on the go.

It’s a problem that will need to be solved and there are several possible ways.  Either device manufacturers will need to extend battery lives considerably or users will have to carry backup power supplies.

There is also a potential third solution in the form of inductive charging zones, which would enable wireless re-charging of mobile devices either on or in the proximity of a charging station built into various surfaces.  In other words, surfaces in restaurants, on trains, airplanes and anywhere that people are on the go, will be equipped with inductive charging technology, keeping devices charging while idle.

As we struggle to get our heads around the significant issues of privacy, security and banking infrastructure that mobile wallet presents, what could ultimately undermine its speed of adoption may come down to simple battery life.

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Posted in Mobile Marketing, Technology, The Future, Trends

Spend Shift and the new era of consumerism

Thursday, September 8th, 2011

By Doug Stephens

The economic recovery in North America has been anything but easy but according to best selling author, John Gerzema, the end result may not be entirely bad.  

I talked with John about his latest book, Spend Shift: How the Post-Crisis Values Revolution is Changing the Way We Buy, Sell and Live. It chronicles the collapse of a 30 year era of unprecedented and often mindless consumption and the subsequent emergence of a  decidedly different, values-driven and empowered consumer.

This new consumer, he suggests, is one that all companies, regardless of what they sell, must intimately understand,  if they’re to survive the return to more thoughtful consumption.

John is a two-time Wall Street Journal best selling author, Executive Chairman at BrandAsset Consulting and oversees strategy for the Young & Rubicam group of companies. He is also an acclaimed TED speaker. I spoke with John from his offices in New York City.

Full podcast here


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Posted in Advertising, Branding, Marketing, Mobile Marketing, Shopper Marketing, Strategy, Technology, The Future

Has Augmented Reality (Finally) Come of Age

Saturday, August 6th, 2011

By Doug Stephens

It’s been almost a year ago that I spoke with Maarten Lens-Fitzgerald, one of the co-founders of Layar and a pioneer in the development of augmented reality or “A/R” applications.  At that time we were discussing the potential for a battle between brands over virtual real estate as companies awaken to the opportunity to create augmented reality stores in high traffic public places, such as Nike’s installation in New York.

Maarten’s passion and excitement about A/R was palpable and we had a great conversation about its future.  Like many others, I saw tremendous possibilities for the technology to manifest itself in cutting edge consumer experiences.  This melding of the physical and the virtual seemed to me to be a marketer’s dream.

A/R had a long way to go…

I was also not alone however, in the belief that A/R had a long way to go.  While companies like Nike and Lego were clearly experimenting with the technology, there simply weren’t enough public A/R installations or applications out there to generate consumer awareness of the technology or where to find it – much less how to use it.  Even the marketing community was generally unaware of what augmented reality was.  Furthermore, the technology itself was a little rough around the edges.  Graphics and animation tended not to be extremely clear or crisp making for an often-disappointing overall experience.  Above all, the big question about A/R was one of utility.  Sure, it was cool but was it useful especially compared to other, more developed and trusted mediums such as QR (quick response) codes?

A giant step towards mainstream

This week Layar (and augmented reality in general) took a quantum step forward in satisfying skeptics with an innovation called Layar Vision.  Essentially, Layar Vision is a new system protocol that enables recognition of everyday objects, , overlaying them with digital content-  similar to Google Goggles. It also works much like QR code technology does but in this case, the object itself acts as the code.  Just scan the object using the Layar app and you’ll immediately be able to see the digital content attached to it.

Magazines, books, food packages, cars or any other object can be recognizable to the program and instantly overlay it with digital information which the user can then interact with.  The conceivable applications for it are limitless.

I think you’ll agree after watching the video below that with this single innovation, it’s my feeling that we’ve seen A/R go from being a novelty to something many marketers could find practical applications for.  It certainly takes A/R off the marketing fringe and puts it in a similar arena with QR and NFC technology.

[youtube]http://www.youtube.com/watch?v=AsD0DuPT1GI&feature=player_embedded#at=25[/youtube]

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Posted in Advertising, Marketing, Mobile Marketing, Shopper Marketing, Store Experience, Technology, The Future, Trends

Mobile Reality Check Part 2: Mobile Payment

Monday, June 27th, 2011

In this segment, I’m once again joined by Gary Schwartz, CEO of Impact Mobile who offers an expert perspective on mobile payment technology.  We explore the players, the opportunity and some of the issues Gary believes could limit the pace of adoption in North America.

[youtube]http://www.youtube.com/watch?v=Wi2k1_aPut4[/youtube]

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Posted in Advertising, Branding, Marketing, Mobile Marketing, Podcasts, Technology, The Future, Trends

Is There a Viable Mobile Carrier Option Emerging?

Wednesday, June 22nd, 2011

By Michael P. Russell

With the increased transition to and adoption of smartphones, the mobile ecosystem remains to be a very interesting space, with new and exciting opportunities continuing to present themselves.  This evolution however still seems to an extent restrained in the US by what most consider the major players, the carriers.  The US carriers continue their attempt to control not only their customers with long term contracts, but also the introduction of devices, functionality, and access to certain content.  This model resembles the once overwhelming dominance of the landline networks, as customers really had no equivalent competitive option to turn to if cost or quality of service generated dissatisfaction.  The door may be re-opening for wifi to be an indirect competitor to carrier cell networks, offering a cost effective and accessible alternative to the mobile communications market. When Google first introduced the Nexus One, I thought they had an opportunity to be really bold.  They could have fired the first shot at breaking the carrier grip on mobile communication and device introduction to the market by increasing the awareness of how smartphones can leverage the VOIP functionality over wifi networks and demonstrate that there is a viable option to the carrier model.  Going back further, had Apple included a microphone on the iPod Touch, that device could have been a great introduction to utilizing a high function mobile device that you did not need a carrier connection to navigate the internet or make calls from.

Why WiFi is Poised to Be the Universal Carrier

People are increasingly making a significant amount of their mobile calls in an environment that has wifi accessibility. In June of 2010, Senator Olympia Snowe stated “Given that approximately 60 percent of mobile Internet use and 40 percent of cell phone calls are completed indoors, utilizing technologies such as wi-fi and femtocells will dramatically improve coverage.” This was in regards to the introduction of legislation to install femtocells and wifi base stations in all federal buldings.  In addition to this acknowledgement, JD Powers reported in March of this year that with the increased trend of people cutting their landlines for cell phones only, 56% of wireless calls will be made indoors in 2011.  That is up from 40% in 2003.  Nielsen reported that the number of households with a wireless network set up increased 8.2% from Q1 2010 to Q2 2010 and has seen a 24% increase over the previous eight quarters. The chart below demonstrates that public free wifi is increasingly becoming more available.  This offers easy access if not yet ubiquitous coverage of an available wifi network to carry calls and or general internet access.   More and more cities are also “lighting up” major metro areas and parks with wifi networks for people to utilize. The question is beginning to arise with more people, why pay for two access roads to the same destination when the vehicle you own can take either?  With carriers, customers are required to pay an additional monthly fee for each device that they connect to the network. Cell phone, ca-ching!  Tablet, ca-ching!  Laptop, ca-ching.  With wifi, the only requirement is that the device have WiFi connectivity ability and you are off and running with no additional fees.

A Market Ready for Dynamic Change

There is now speculation that Microsoft’s purchase of Skype could be a play to affect the existing market.  They fell behind in mobile and even though WM7 has received solid reviews, battling it out with the other prevailing OS’s within the carrier model may be a fruitless effort to reach significant market share.  Microsoft is a sizable enough player to make this kind of effort and drive market awareness.  Their WM7 devices may be the instrument to create a dynamic change.  It remains to be seen if this is the path that they are taking with the acquisition, but I am interested to see it play out.  In addition, Google is also still in a position to make moves in this area.  The Android market share is making great gains.  Google has relationships with hardware manufacturers and they continue to make moves to increase their involvement in the mobile space such as their mobile wallet partnerships.  It indicates their interest in becoming an increasingly significant player in mobile.

Lowering the Cost of Mobile Consumerism

The market trend toward smartphones and the emergence of the tablet market is increasing the consumers’ utilization and fondness for specific third party apps to achieve a myriad of objectives.  They are no longer limited to partnerships that the carriers engage in.  Add in the movement to having NFC (Near Field Communication) functionality in devices for transactional purposes, consumers will be introduced to even more benefits that do not require going through the carriers to obtain.  Need an app for shopping, many malls have wifi to enable the download and or price check to determine the best place to purchase.   Need to pay a bill, check a balance or make a purchase, the  home, office, library, or coffee shop most likely offers a wifi connection to do so. It takes time to reach a tipping point in the market, to get people to transition from one mode of operation to another.  Understanding the drivers of demand that motivate consumption will help companies in their efforts to potentially turn the ship  Bottom line costs, especially in our current environment could drive customers to a more cost effective mobile alternative.  Having a way to reduce costs associated with making mobile calls anywhere and having access to mobile data, could be a significant motivation at this time. Consumers will increasingly become aware that there is no need, based on their usage, for them to pay a gate keeper multiple times for access to a network.  The trend of more consumers cutting their landline home phones and transitioning from cable TV to watching programs online, demonstrates that consumers will recognize where they can save money yet still get the essential benefits they seek. The realm of possibilities in the mobile communication environment continues to keep this space very interesting and evolving.  The market itself will help determine what paths are viable and the revenues generated by participants.  The potential of wifi may yet demonstrate that it will impact the continuing evolution of the mobile communication marketplace.

Michael P. Russell is a Principal at Open Water Consulting LLC and Founder/CEO Hoorah Mobile Inc.

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Posted in Mobile Marketing, Technology, The Future, Trends

Mobile Reality Check

Monday, June 6th, 2011

Many of the headlines we read would have us believe that consumers are running rampant, begging for opportunities to browse, shop and even transact retail purchases on their mobile devices.  While there’s no question that mobile commerce and payment are coming fast, it’s often difficult to gauge precisely how fast.  The answer is critically important for marketers as they wade into mobile marketing initiatives and tactics.

In part 1 of Mobile Reality Check, I’m joined by Gary Schwartz, Founder and CEO of Impact Mobile.

Over the past nine years, Gary has played a leadership role in the mobile industry. He founded Impact Mobile in 2002 running the first cross-carrier short code campaign in North America.

In 2006, Gary founded the mobile committee for the Interactive Advertising Bureau (IAB) and sits as Chair of the Mobile Entertainment Foundation (MEF).

Gary has been involved in mobile marketing from virtually every conceivable angle and is the recipient of the Asia and Japan Foundation Fellowship as well as the Macromedia Peoples’ Choice Award and Dodge Foundation award for innovation. He is also the author of the upcoming book, Click2K’Ching: The Mobile Shopper & The Impulse Economy.

I had an excellent chat with Gary from his offices in Toronto in which he shed light on some of the truths and tall-tales with respect to mobile consumerism.

[youtube]http://www.youtube.com/watch?v=8Ee1DqPLCPQ[/youtube]

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Posted in Advertising, Behavioral Marketing, Marketing, Mobile Marketing, Shopper Marketing, social media, Technology, The Future, Trends

The New Media Marketer’s First Date

Thursday, June 2nd, 2011

Image credit: artofmanliness.com

We’ve all been on a first date and can relate to the awkward pauses in the conversation, the often-confusing body language and the painful uncertainty about how to end the night – should you kiss, hug or merely shake hands – who knows?

This, in many respects, sums up the current state of new-media marketing.  Marketers and consumers have embarked on their first date and neither is completely comfortable with the other just yet – particularly in the social and mobile spaces.

Some of the “research” that’s being conducted would lead us to believe that consumers are literally clamouring for the attention of mobile and social marketers.  These sometimes-questionable statistics suggest that consumers are virtually lining up for contact from brands on social networks and on their handheld devices.  Other studies provide a far more sobering view of a consumer who is worried about privacy and security.  It’s difficult to sort out truth from hyperbole.

Part of the current awkwardness comes from the fact that for close to a century, marketing has fundamentally lacked any intimacy.  Conversations with customers became industrialized.  The company with the biggest media machine typically won attention.  It wasn’t a date – it was an orgy!  The Marketer’s objective was simply to keep adding consumers to the wide-end of the marketing funnel. It was about “eye balls” and “feet through the door”.

New marketing, on the other hand, seeks to initiate an ongoing relationship.  The goal is not simply to buy new customers but to win the customers you have all over again, every day.  It’s a conversation in the truest sense and as close as a marketer can get to looking their customer in the eye.

In a recent interview with Guy Kawasaki, speaker and author of the new book Enchantment, he summed it up this way –   In order for a brand to “enchant” a consumer three things need to happen.  First, the brand needs to be genuinely likeable. Secondly, it needs to be trustworthy.  And finally, it needs to have a great product.  If these three conditions exist, consumers are likely to be willing to open themselves up to an ongoing relationship with a brand.  Although this sounds easy enough, Guy also acknowledges how few brands have mastered the equation.

In the digital world, getting “liked” is relatively quick and easy.  Research shows that consumers are quite open to “liking” retailers and brands online.  Where brands often fail is in building trust.

Trust is earned over time.  It comes with consistently demonstrating respect. It means putting the interests of the other party ahead of your own.  And this is where I feel many brands jump the gun.  The moment consumers express a willingness to interact, they’re all too often bombarded with irrelevant and sometimes intrusive messages. The result is often the systematic destruction of the very trust brands so desperately need to build.

New Media is NOT a Short Cut

The epiphany for new-media marketers is this – new media isn’t faster than mass media.  In fact, it’s slower because it’s based on real, human interaction. It’s not based on impulse but rather on meaningful interaction.  It takes time and it takes work.

Marketers have to build a new level of patience into their marketing plans when approaching their new media strategy.  They need to incorporate the time to build the trust of their admirers and only when the time is right, deliver remarkable value with great products and service.  This isn’t easy in a world that demands quarterly financial miracles and immediate results but it’s essential to reap the rewards of new media.

And for those who are currently questioning the ROI of new media, I would offer that despite having over 100 years of practice with mass media, many businesses are still screwing it up too.  The problem with new media has nothing to do with it’s inherent effectiveness, but more to do with our lack of understanding of how to skillfully employ and measure it.  It’s not up to social and mobile media to prove its value, it’s up to us as marketers to prove we’re capable of thinking differently about what marketing is in the first place.

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Posted in Advertising, Behavioral Marketing, Branding, Marketing, Mobile Marketing, Shopper Marketing, social media, Technology, The Future, Trends

Does Love Scale?

Tuesday, April 19th, 2011

Image courtesy of the I Love You Blog

This week Wal-Mart announced its purchase of social media firm Kosmix to help it better manage and capitalize on its social and mobile marketing efforts.  What is clear from the announcement is that Wal-Mart recognizes the unrelenting shift to social and mobile media as an integral component of doing business and is literally buying in.  What is less clear but inferred in the move is that Wal-Mart also understands the challenges involved in scaling the real-time, personal interactions that positive social business demands across such a mammoth organization.  While Wal-Mart won’t be the first large company to engage in social media, it is nonetheless, the largest retailer on earth.

And so, that leads me to ask the questions: Can social media really be scaled beyond a certain point before it becomes mass media in disguise? Does an abundance of structure and protocols, undermine the spirit of a conversation in the first place?  Does social media lose its sense of intimacy if we feel that it’s been manufactured through an enormous infrastructure of contractors and systems?

To be honest, I don’t really have an answer to this but would be interested to hear if others think genuine and meaningful social interaction be achieved on a massive scale.

What do you think?

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Posted in Advertising, Branding, Mobile Marketing, social media, Trends

Luxury Isn’t Social

Tuesday, March 29th, 2011

By Doug Stephens

I’ve read a number of articles recently commenting on the conspicuous lack of social marketing in the luxury sector.  While it’s also true that participation in social media among luxury brands has grown, the fact remains that the general level of activity has been low – especially considering the fervor around social media in general.  “Why are luxury brands such laggards?” many are asking.

But let’s think about it for a minute.  In the purest sense social media is built on is the principle of inclusiveness – the genuine willingness to give and share openly with others. Social media is the connective tissue between friends but more importantly between those who might not otherwise belong to the same social circles; people from various walks of life who are connected even momentarily by an experience.  The essence of social media is that we all have a voice – we’re all included.

Social media has been successful in digitizing the underlying social nature of shopping.  In essence, shopping is more fun when we include others.  Whether it’s telling friends about the big sale that’s happening or posting a phone-cam picture of the cool new shoes you just bought, social media feeds wonderfully into the context of the shopping experience.

However, contrast this to the principles upon which luxury has always existed. Luxury by definition is not inclusive – just the contrary!  Luxury is not for the unwashed masses but rather for the elite.  In fact, many of the most successful and enduring luxury retailers are without question the most exclusive.  Arguably the greatest danger faced by any luxury brand is its own ubiquity! It’s not about openly sharing your purchases with friends to inspire fun but instead quietly and smugly coveting prized items to foster envy.

So, I’m not sure we’re really dealing with a lack of understanding on the part of luxury marketers when it comes to social media marketing.  These people are probably as personally active in social networks as any of us.  I just don’t think that social media marketing is as relevant for a purveyor of true luxury items as it may be for an American Eagle say.  True luxury will never be social in the sense in which we understand social media today.  Sure there may be closed social networks for yacht sailors and Bugatti Veyron drivers but don’t expect a friend request any time soon.

Posted in Advertising, Branding, Mobile Marketing, Shopper Marketing, social media, Store Experience, The Future, Trends

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