Mobile Advertising

What will Apple do for its iPhone encore?

Tue, 15 Jan 2008 06:59:59 -0500

Macworld 2008 is now officially underway in San Francisco, and the question on everyone's minds heading into CEO Steve Jobs' annual keynote is how--or even if--the computing giant can top itself yet again. After all, at Macworld 2006 Jobs unveiled the first Intel-based Macs, galvanizing a sales upswing that nearly doubled Apple's market share, and a year ago, he finally unwrapped the iPhone. Speculation this time around runs the gamut from an iTunes-branded movie rental service to a MacBook skinnier than Nicole Richie--chances are also good that Apple will at least preview its promised iPhone SDK, and buzz suggests the device will grow in capacity from 8GB to 16GB, or even as much as 32GB. (A quick look into FierceDeveloper's crystal ball also reveals Jobs will take the stage in a black turtleneck and faded blue jeans--you heard it here first!)

But whatever Jobs reveals at Macworld, it's hard to imagine Apple topping the iPhone: Roughly six months after its retail release, the shadow it casts over the mobile landscape continues to grow. On Monday, search giant Google announced a series of improvements to its Grand Prix integrated iPhone software suite, debuting an improved user interface alongside revamped Search, Gmail, Calendar and Reader mobile applications. According to a New York Times feature published the same day, traffic to Google from iPhones surged at Christmastime, surpassing incoming traffic from rival mobile devices despite representing just 2 percent of the global smartphone population. Google debuted the first iteration of Grand Prix about six weeks ago--it admits this kind of accelerated developmental turnaround was not possible pre-iPhone. The NYT article goes on to note that iPhones now account for a disproportionate percentage of Yahoo mobile traffic, and mobile advertising firm AdMob saw its iPhone traffic spike around the holidays as well.

So it's all the more remarkable to consider that iPhone almost failed to make its Macworld 2007 debut at all. A must-read feature in the new issue of Wired recounts the device's troubled birth, culminating in a malfunction-plagued fall 2006 demo that left the tantrum-prone Jobs almost mute--an experience so unnerving, a source said, "It was one of the few times at Apple when I got a chill." Three months of employee shouting matches, resignations and meltdowns later, in mid-December 2006 Jobs presented an iPhone prototype to then-AT&T CEO Stan Sigman, who reportedly dubbed it "the best device I have ever seen." According to Wired, a year later about 40 percent of all iPhone buyers are new AT&T subscribers, and the device has tripled the operator's volume of data traffic in cities including New York and San Francisco. No way does Macworld 2008 top that--after all, you can't revolutionize a revolution that's still taking place. -Jason

Can Yahoo reinvent its business for the mobile web?

Tue, 08 Jan 2008 06:59:59 -0500

So far, the company generating the most attention at this year's Consumer Electronics Show is…Yahoo? Seriously. With its stock at a four-year low, the beleaguered Internet giant is going all in on mobile, launching a revamped Yahoo Go 3.0 solution, debuting a new mobile advertising initiative and, most significantly, opening its fledgling Mobile Developer Platform to third-party applications. Promising developers the tools necessary to write code only once for instant publication across the device ecosystem, Yahoo's Mobile Developer Platform hinges on widgets that enable users to select their favorite Internet content and services for inclusion on their phones, regardless of provider. Widgets from launch partners including eBay, MySpace and MTV are scheduled to debut later this week.

By redoubling its mobile web efforts, Yahoo is embracing one of the oldest business adages of all: "If you can't beat 'em, join 'em." As it continues to lose search engine market share to Google, it makes perfect sense that Yahoo would reinvent its mobile image in the likeness of its rival, opening its platform to third-party development and pinning its revenue hopes on mobile advertising. Yahoo's timing couldn't be better--there's growing sentiment among developers that Google released the Android SDK into the wild far too prematurely, and to compound the issue, Google was forced to delay its much-ballyhooed Android Developer Challenge after final testing turned up some major bugs.

The problem is that Yahoo's mobile vision is so familiar by now--on paper, there's nothing that truly distinguishes its platform from Google, Microsoft, Palm or RIM, and on top of everything else, Yahoo can't even lay claim to a mobile OS of its own. Opening your platform is the easy part--convincing developers to accept the invitation is where it gets tough. -Jason

Microsoft forecasts its mobile future

Tue, 08 Jan 2008 06:59:58 -0500

Microsoft chairman Bill Gates kicked off CES 2008--as well as his final year at the company's helm--with a keynote address that focused in part on the software goliath's continuing push into mobile. According to Gates, Windows Mobile-based smartphones sold more than 10 million units in 2007, a figure forecasted to double in the year ahead--added Robbie Bach, president of Microsoft's Entertainment and Devices Division, the firm's voice-enabled TellMe mobile search service accounted for more than 2 billion searches last year, setting the stage for the introduction of the GPS-based Say and See application, which responds to voice queries via text messaging and related visual solutions.

While neither Gates nor his associates alluded to the release of Windows Mobile 6.1, Bach did address Microsoft's mobile advertising efforts: "The mobile advertising market alone is going to be about $11 billion in 2011, and I think with all the work we're doing we're very well positioned to take advantage of that," he said. "We are taking advantage of new opportunities in mobile to continue to build [a] great business. All of this is being done in the context of building community services and new advertising and business models."

For more on Microsoft's upcoming mobile efforts:
-read this CES keynote transcript

Related articles:
Microsoft: "We want mass and scale" in mobile
Microsoft: "We're in the mobile business in a big way"
Microsoft releases Windows Mobile 6.0
Microsoft blogger leaks Windows Mobile 6.1

Matching applications to the brands that fit

Tue, 27 Nov 2007 06:59:59 -0500

Chances are you went to college, earned a degree and honed your craft in part to avoid a career serving up burgers and fries at McDonald's. But how about devoting your workday to developing mobile applications for the fast-food giant and other corporate behemoths? According to Adweek, a growing number of brands are turning to mobile developers to create interactive wireless services and tools in lieu of conventional mobile media buys, spooked by consumer research that suggests customers are already facing mobile advertising saturation. According to a recent Harris Interactive survey, more than 70 percent of respondents rated formats from search result placements to banner ads "unacceptable," while only 16 percent rated video clips from nearby stores "acceptable." In response, advertisers are investing in what Madison Avenue calls "branded utility"--i.e., services they believe enable their customers to perform tasks, rather than interrupt the mobile experience.

The challenge at hand is essentially the same mandate facing all mobile applications: Develop something that adds value and depth to the mobile user experience--and don't just mimic an existing app. Adweek cites as a superior branded utility "ColorMatch," developed by consumer goods manufacturer Proctor & Gamble to recommend shades of CoverGirl brand makeup based on the user's complexion and clothing and accessories--a perfect tool for shoppers at the mall and away from their PCs, and a perfect fit with the CoverGirl brand and consumer profile. That's the key, of course--matching the right product with the right app. Even the most ingenious application will fail if it doesn't jell with the targeted consumer demographic. But for developers, branded utilities represent a golden opportunity to tweak innovative mobile applications lacking broad consumer appeal to fit the specific niche demographics that will embrace them, complete with the corporate muscle necessary to get those apps into the marketplace. Beats flipping burgers, that's for sure. -Jason

Smartphones--an open and shut case

Tue, 09 Oct 2007 06:59:59 -0400

A New York Times feature published Sunday more or less confirmed the wireless industry's worst-kept secret: Google is indeed putting the finishing touches on a mobile phone project in a bid to extend its online advertising business to the mobile web. Insiders briefed on the project confirmed buzz suggesting Google hopes to persuade operators and device manufacturers to offer handsets based on its software--an open-source, Linux-based platform--and to subsidize costs in part via mobile advertising revenues. "The essential point is that Google's strategy is to lead the creation of an open-source competitor to Windows Mobile," said an unnamed industry executive. "They will put it in the open-source world and take the economics out of the Windows Mobile business."

The subject of open mobile platforms is suddenly a very popular topic among mainstream media outlets and consumer circles alike. Two weeks back, Apple found itself in hot water when its iPhone Update 1.1.1 bundled a device-crippling firmware upgrade alongside new features, functionalities and security patches in an effort to block consumers from downloading third-party applications--for some idea of the general reaction, check out the invective splattered across any number Apple consumer sites after iPhone owners discovered their third-party apps wiped out. In response, Nokia launched a new website touting the openness of its Nseries devices, proclaiming its smartphones are "Open to applications…Open to Widgets…Open to anything."

It's impossible to know how many of the one million iPhone owners hacked their devices, and it's probably a relatively tiny segment of the overall consumer segment, but more and more people are serious about maximizing the full technological potential of their handsets, and they're not going to take "No" for an answer. Google's in the business of answers--chances are consumers burned by Apple's Gestapo tactics are going to like what they hear. -Jason

Just how new is the new Nokia?

Tue, 02 Oct 2007 06:59:59 -0400

Nokia's extreme makeover forges on. On Monday, the company announced its biggest acquisition to date, purchasing navigation software developer Navteq for $8.1 billion and continuing (but almost certainly not completing) its transformation from handset giant to mobile multimedia force. Nokia has dominated headlines for months now, in rapid succession debuting a mobile music download service, re-introducing its N-Gage mobile gaming platform, launching its Mosh mobile social network and purchasing mobile advertising provider Enpocket. Most notably, Nokia rolled out Ovi, a new Internet services brand that promises to tie it all together. Virtually overnight, it is a new and different company, with more scope and reach than ever before.

The question facing Nokia as it evolves is whether its new services will support its core hardware business or whether its hardware will instead exist to serve its multimedia aspirations. In light of rumors that Google will market its forthcoming gPhone device for under $100, subsidizing budget-priced monthly subscriber fees via mobile advertising revenues, the economics of the handset market are facing a radical shakeup. The pieces of the puzzle are clearly in place for Nokia to pursue a similar direction and slash handset prices in the name of advertising and service revenues. A wholesale metamorphosis of Nokia's business identity seems like a long shot, of course, but unlike traditional rivals including Motorola, Samsung and Sony Ericsson, the company is uniquely positioned to face the challenges of a mobile marketplace where non-traditional players like Google and Apple now threaten to call all the shots.

A new advertising campaign touting Nokia's N-series range proclaims the devices "Open to anything," an obvious jab at Apple's locked-down iPhone. If Nokia is as open-minded as the ad suggests, things are about to get very interesting. -Jason

Google in handset talks with operators

Tue, 07 Aug 2007 06:59:58 -0400

Google refused to deny reports its long-rumored branded mobile device is nearing production--instead, the search giant released a statement confirming it is presently working with operators, content providers and handset makers "to bring its services to users everywhere." According to The Wall Street Journal, Google is wooing operators to carry the so-called "gPhone," a device customized with its search engine, email and a new mobile web browser, in an effort to secure its chunk of the mobile advertising market.

The WSJ sources say Google has invested hundreds of millions of dollars in the handset project, developing prototype devices and negotiating with the likes of T-Mobile USA and Verizon Wireless. The company's hope is that multiple manufacturers will produce the devices per its specifications, with consumer availability spread across several carriers. The WSJ adds the Google phone would not hit retail until next year at the earliest.

At the D: All Things Digital conference in May, Google CEO Eric Schmidt hinted broadly at the company's mobile aspirations, saying "What's interesting about the ads in the mobile phone is that they are twice as profitable or more than the non-mobile phone ads because they're more personal." In a recent interview, Verizon Wireless CEO Lowell McAdam said the carrier has opted against integrating Google's web search engine because of Google's ad revenue demands: "What this really boils down to is a battle for the mobile ad dollar," McAdam said. "They want a disproportionate share of the revenue."

For more on Google's plans:
-read this Wall Street Journal article

Related articles:
Google developing mobile content search
Google files mobile advertising patent
Google AdWords go mobile

Expect major mobile innovations: Google

Mon, 23 Apr 2007 20:01:39 -0400

Google's mobile plans
"Mobile, mobile, mobile," Google CEO Eric Schmidt told the Web 2.0 Expo audience when asked for the Web's biggest growth areas.

Mobile AdWords have done well for Google, but "there are probably other monetization means in mobile as well," Deep Nishar, Director of Product Development at Google said at a separate conference in Tokyo. Google currently has deals with the two main Japanese carriers, NTT DoCoMo and KDDI, to provide mobile search for a combined 71 million handsets.

So where is Google going next? The recent release of a free voice-driven mobile search is one indication. (An interesting conspiracy theory is that the 411 search is cover for a Google effort to collect voice samples and home its voice recognition tools for future applications.) Expanding Mobile AdWords beyond Japan is practically a given; competitors like Third Screen and AdMob are gaining ground by the day.

And then, of course, there's the Google phone. As FierceWireless reported last month, Google's chief executive for Spain and Portugal confirms the company is working on its own mobile phone "as one of 18 research and development initiatives." Blogger Danny Sullivan makes the case that Google is actually gearing up for a mass release of a device with a timeline of evidence right up to a recent DigiTimes report that Taiwanese manufacturer High Tech Computer (HTC) is currently building phones for the search giant, with shipments expected by the end of the year. I would also include this job ad, which seeks a Program Manager to "launch hardware products into mass production."

Update: Last week I reported that the HTC Advantage would probably cost around €1,000. Official prices have still not been released, but a knowledgeable tipster wrote in to say the retail prices is likely closer to $800.

QUICKLINKS: Functional programming for the rest of us; Microsoft's missing Bluetooth DUN ;

Mon, 23 Apr 2007 20:01:35 -0400

Functional programming for the rest of us. Article

Summary of mobile advertising trends. Blog

Steve Jobs 2005 Stanford Commencement speech. YouTube

SideView: Use your WM device as a secondary PC monitor. Review

HTC nixes rumors about a Via processor in the Shift. Blog

Video demo of F-Origin's iPhone-like HaptiTouch. YouTube

Microsoft explains the removal of the Bluetooth DUN profile. Blog

Twitter, Jott vulnerable to SMS Caller ID spoofing. Blog

How to improve feature phones. Blog (via Carnival)

Quantas test in-air mobile data and SMS service. Article

QUICKLINKS: Glu Mobile IPO raises $84 million; Multiplayer Tetris; Much more...

Mon, 26 Mar 2007 20:01:35 -0400

Glu Mobile IPO raises $84 million. FierceMobileContent

EA Mobile announces multiplayer Tetris. FierceGameBiz

Ericsson's mobile JSF kit. Website

Free BlackJack ROM update. Blog

AdMob picks up $15 million in Series B funding. Release

Verizon wins a battle in the war against Vonage. Blog

Cingular Treo 750, BlackJack, and 8525 to get WM6 upgrade. Blog

Microsoft prototypes cameraphone bar code reader & web app. Article

Getting started with sound in Macromedia Flash Lite. How to

Ex-Nokia president launching ad-funded MVNO. FierceMobileContent

FCC will likely abandon plans to allow cell phones on flights. Article

CTIA to audit SMS programs. Release

A look at Web-based RSS aggregators. Blog