Posts Tagged "Android"

With mobile application investments set to escalate this year, along with an already huge diversity of apps available for the iPhone, promotion and marketing will take center stage in ensuring these investments pay off.  That’s the implication of this article today on eMarketer.com, titled “Mobile to fare better than social.”

“According to DM2PRO and Quattro, 15% of advertisers and agencies spent more than 60% of their app budgets on promotion in 2009, but more than one-third spent less than 5%.  Promotional budgets will need to increase along with overall investment for apps to find their way to users.”

Marketers would be wise to consider the immediacy of text messaging to communicate mobile application availability and directly link consumers to download and install it.  Consider the ease by which signage in store can point customers to a text interaction that includes a direct link to download the application.  Convenience is key to entice consumers to take action and matching their behavior (out and about) with a device in hand is a recipe for success.

At the same time, marketers have the chance to create or build upon their opt in database of mobile subscribers, and learn more about them using engagement techniques like surveys and others that collect information about mobile consumers (like their zip codes or product preferences).  This data can in turn be used to segment the mobile audience in ways aligned with unique offers and calls to action.

Standing out from the crowd is already key to app success, so hoping your effort is discovered in the App Store can no longer be considered an effective strategy to ensuring ROI.  I say “App Store,” because the article points to the iPhone as the platform of choice for the time being, well ahead of Android and others.  Remember, when it comes to budgeting for the promotion of your application, among the most effective means to do so is to connect consumers with your app via creative use of text messaging programs.

Today I received an email press release from a Finnish mobile tech firm that’s in part behind National Public Radio’s (NPR) new mobile strategy.  Coincidentally, I came across this article today about the same, but from NPR’s perspective.

Both pieces of information contain useful insights for marketers, even those outside the realm of broadcast communications.

Like many companies, NPR jumped on the mobile apps bandwagon by first building an iPhone application that has thus far experienced a lot of success (millions of downloads and 15 minute average use times).

Although the iPhone made sense initially, NPR found limitations which has led to a revamped mobile strategy that greatly increases the population of listeners who can access NPR content on the go.  What’s interesting about their new strategy is that it is as much about reaching more listeners across a variety of mobile devices as getting its member stations to benefit from mobile.  To achieve this, Google’s Android platform was the ideal choice:

“With the Android app, we can let the stations incorporate their own apps into ours.  Some stations are more advanced digitally than others.  We’re working with them about becoming more robust providers of local news, which will keep them relevant. And we can share our programming and theirs on one app. That expands the opportunities for all of us.”

A much more robust mobile web presence is also part of the equation, and is apparently based on technology from that Finnish firm I mentioned.  Yet it’s the greater flexibility offered by Google Android, relative to the iPhone, that appears central to NPR’s mobile strategy.

This is the first example I’ve seen where the discussion is not about the reach (or lack thereof) offered by the iPhone.  Instead, NPR chose Android because it fit their business model better by offering its member stations a more relevant marketing platform.  That is the kind of logic and thoughtful approach which should help make 2010 the year of mobile.

Yesterday I came across an article on CNET titled, “In mobile, do developers or consumers matter most?” and immediately thought, “Who cares what developers think, at least the ones who want to make money?”

The article describes the oft-cited displeasure that developers have with Apple and its policies, and how it may cause defections to other platforms.  Yet the article also says this about the iPhone:

“…for most consumers, their mobile device of choice is a lifestyle decision, a personal, ever-present extension of themselves…”

With the exception of the words “mobile devices,” this statement could apply equally to the clothes a consumer buys, car they drive or restaurant they frequent.  For those products, does it really matter what their makers think as opposed to what consumers want?  That seems like a question that answers itself when you consider as well that products require distribution channels.

The “developer versus Apple” debate so pervasive right now is missing the big picture; most developers drawn to mobile come from traditional b-to-b development organizations where for years they have become accustomed to a model “all about them,” more or less.  When taken into the realm of consumer marketing, that is a dangerous point of view for anyone interested in creating successful mobile applications.

The situation reminds me of Walmart’s long-standing reputation as being difficult with its suppliers, squeezing ever smaller margins from them in exchange for access to millions of consumers.

With Apple’s App Store expected to grow three fold in 2010 to 300,000 applications, the iPhone will remain the go to platform for marketers despite the emergence of Google’s Android.  When you consider the reported difficulties developers are having with Android and projections of perhaps 70,000 Android Apps in 2010, the situation isn’t likely to change.

Marketers would be wise to align themselves with mobile application developers who recognize success means taking on the perspective of the mobile customer.  Such firms are more likely to possess both the technical expertise and distribution channel know how necessary to build apps that stand out from the crowd.

A couple days ago we speculated a reputed move by Apple to offer free, ad supported iPhones could force Google into the device business.  Yesterday it was reported Google was in fact getting into the device business but with a voice over internet protocol (voip) phone which would access data networks only.  Apple’s recent patent filing may have nothing to do with Google’s plans but it’s hard to imagine this is purely coincidental.

Although the move hasn’t been confirmed by Google, the article notes that “the carriers won’t love this,” no doubt because doing so subverts their immense sunken costs in traditional cell networks.  Even so, AT&T has supposedly lined up to provide data network access, because if they don’t surely another will.  With Google Voice offering phone service over data networks, Google will effectively have a tightly controlled alternative to any other mobile phone, and one that could be given away free if supported by built in advertising – that Google also happens to provide.

Long term, moves like this could render voice networks irrelevant.  On the device side, should Apple and Google move toward free, ad supported devices, traditional makers like Motorola will struggle to manufacture hardware at anything approaching a profit, no matter what operating system is used.

As a follow on to yesterday’s post regarding mobile application compatibility issues among different Android-based phones, today I came across two more articles – one coming at the issue from the same direction, another from a different one.

This post titled, “Developers only now realizing Android is not a platform” expands on comments recently made around problems facing open source software used in customer facing applications (versus the back office, or closed environments closely monitored and managed by IT staff and developers).  It’s a sobering point of view that if publicized further may discourage application developers and marketers from investing in Android mobile applications.

The other, titled “Microsoft: mobile apps aren’t important” cites claims just made by Microsoft Chief Software Architect Ray Ozzie (remember Lotus Notes?) that apps are not important unless developers are able to write a single application that runs across many devices.  He implied that the operating system itself and its built in features would be the key to this future – a line parroted by Microsoft for years, but historically more around its desktop operating system.

Both of these points of view may drive an even deeper wedge between Apple’s consumer friendly, yet closed approach and more open or device/OS centric approaches to mobile applications.  Unfortunately for anyone but Apple, the mobile customer experience is very personal and so the winner long term is likely the one who recognizes the large market opportunity is about ease of use and friendliness.

Comments such as those of frustrated Android developers and Microsoft (who has its own issues around mobile) make it more likely that iPhone app alternatives will be relegated to purely B2B applications, as in the case of sales force automation or field service support.  Basically, tightly controlled, back office solutions.

This question came to mind as I read a November 16, 2009 article on Wired.com titled, “Android’s Rapid Growth Has Some Developers Worried.”  Seemingly the darling of developers as much as the iPhone is to marketers, Android’s attractive openness may cause more problems for developers than it solves.  For marketers the situation will undoubtedly cause some hesitation as they look to Android as a platform for apps otherwise intended for, or in addition to, the iPhone.

Statements like these will make it hard for developers and their salespeople to claim an Android app offers access to the rapidly growing base of Android device users:

“A slew of problems have made managing Android apps a ‘nightmare,’ they (developers) say, including three versions of the OS (Android 1.5, 1.6 and 2.0), custom firmware on many phones, and hardware differences between different models.”

“For users, it means apps in the store could be buggy, might not work well depending on their handsets, and could deliver a frustrating experience. Unaware of the increasing back-end complexity, they would then be more likely to leave bad reviews for those apps.”

“Instead of working on updates to our apps, we find we are trying to make each app work for multiple versions of the OS and different hardware capabilities.”

“You may build an app that works perfectly with all three firmwares, but then when you run it on carriers’ ROMs it completely blows up.”

The article draws a connection with the introduction of Java and its promise of “write once, run anywhere,” and how that didn’t really work in practice.  Google apparently offers emulators to test applications on different devices yet according to one developer these don’t work consistently, making it hard to confidently create a multi-device compatible application.

If the same holds true with Android, you will soon see charts of device market share split across different Android-based devices as opposed to one monolithic category – especially when talking about the market for mobile applications.

Apple must see these as good signs and validation of their tightly controlled model.  The mobile web is another story, and it looks as if Android is a great platform for developing a rich, user friendly web experience.  Emerging statistics like these November 17, 2009 ones on eMarketer.com bear that out.

Yesterday my colleague John Wood pointed out challenges Google Android faces versus the iPhone while also noting that Android has a lot going for it, mass distribution and low price among them.  With so much attention focused on the iPhone as a consumer friendly device and the darling of marketers, it’s easy to forget that the ultimate goal of any mobile marketing activity is to drive sales.

To what extent might Android be a better m-commerce platform than the iPhone?  I’m not entirely sure, but this November 10, 2009 article on Forbes.com titled, “All Eyes On Mobile Commerce” highlighted a key difference between the iPhone and other platforms that marketers need to consider if mobile commerce is in their sights.

“Apple’s iPhone users create an iTunes account upon iPhone registration, if they did not already have one, where credit card information is stored for future one-click purchasing.  This enables over 50 million iPhone and iPod owners to purchase media or games on a mobile device, inputting their password to access their iTunes account.”

“T-Mobile, which will launch four Google Android handsets by the holiday season, has been working with Google to integrate the Android Market into its billing system by Thanksgiving.  Historically, which may or may not still be relevant, bill-to-carrier models have been less attractive to the mobile merchant due to delays in payments and the high cost.  Given the billing cycle of the operator, payments can be extended 45 days to a couple months.”

Getting paid fast is important in any transaction and so for the foreseeable future Apple’s model seems to represent an easier path toward booking revenue – for Apple at least.  You can be certain Apple is considering broadening the iTunes model to include other products given the ready-base of buyers able to transact rather simply.  Apple could become an Amazon.com like player quickly if it wanted to, slowing mobile commece on other platforms.

It’s doubtful that mobile will serve as a standalone handheld shopping cart for purchases of all kinds any time soon, given shopping behavioral differences between impulse and considered purchases.  Yet, as the article points out, all well known online stores, from Amazon to Wal-Mart, are heading in this direction, and technology vendors like IBM are gearing up their e-commece platforms for the mobile channel.

*(Cross-posted with John Wood’s personal blog)*

The mobile industry is exploding. In just a few short years, everybody will have a smart phone. A tiny, internet connected, mini computer right in their pocket. As each month passes, we learn more and more about what the future of this industry holds, and what the mobile handset landscape will look like. If one thing is for certain, it’s that nothing is for certain.

As it stands right now, Apple is king with consumers. Though not the first ones to market with an internet connected mobile device (the Blackberry has been around for a long time, and still holds the majority of the smartphone market share), Apple appears to be the first to really understand what the average, non-corporate consumer wants. A true mini computer. An open device that can play music, run applications, take photos, and provide a pleasant web browsing experience. And they did it in true Apple fashion, making the device extremely easy to use. As a result, the iPhone has become extremely popular with consumers, and is widely considered ”the device to have”.

With the majority of people still without a smartphone, much of the market remains up for grabs. Apple’s competitors are scrambling to catch up, trying to ensure that they they get a piece of the pie. But, one very important question lingers. What can Apple’s competitors offer that would give the average consumer a reason to buy their device instead of buying an iPhone? To me, the reasons are few, and becoming fewer.

(I’d love to hear your reasons in the comments. So please, chime in.)

A comparable feature set

This pretty much goes without saying. Any challenger to the iPhone crown must offer similar features to that of the iPhone. It is very unlikely that a competing device will lure anybody away from the iPhone if it is missing a feature that is now expected to be there. The device must be capable of running apps, taking photos, playing music, etc, for it even to be considered.

A better network

AT&T’s network leaves much to be desired. Having never been an AT&T customer, I can only relay the opinions of my friends and family who are AT&T customers. However, their opinions are one in the same. I’ve not heard a single word of praise when it comes to AT&T’s network. All of my friends and family with iPhones have expressed frustration that the device they love is frequently crippled by a network that is spotty and congested.

It’s no secret that Apple has an exclusive agreement with AT&T, and that agreement has an expiration date. Rumors have been circulating about a jump to another carrier, possibly Verizon, sometime next year. The more wireless carriers offering the iPhone, the less valid of a reason this will become for not purchasing one.

A comparable application ecosystem

Competing devices will need to have an application ecosystem that is at least comparable to the iPhone’s. This is no small task. There are over 100,000 applications in the App Store. Sure, several offer the same functionality, and many are of very poor quality. However, nobody can argue with Apple’s tag line of “There’s a app for that”. There really is an application, in most cases many, for everything you could possibly want to do with your iPhone.

Given their head start, beating Apple at this game will not be easy. Google’s Android OS currently stands the best chance of challenging Apple on this front, with over 10,000 applications already available. The Android OS is open, and capable of running on hardware from any manufacturer. In addition, applications written for Android are capable of running on any device that runs the OS (for the most part). Next year is going to be a big one for Android, with several new devices coming to market from many different manufacturers. Some analysts are even predicting that the number of Android devices in the hands of consumers will surpass the number of iPhones by 2012. This will no doubt attract more application developers to the platform.

However, Android has its own set of challenges awaiting. The fact that manufacturers are free to run Android on devices with very different hardware specifications (screen size, input controls, etc) poses a major challenge for application developers. Perhaps the risk of rendering thousands of existing Android applications useless by releasing a device with dramatically different hardware specs will be enough to convince manufacturers not to do it. Perhaps Google will provide a set of Android APIs that can help application developers deal with this issue. Perhaps a set of best practices will emerge as a guide for developers looking to tackle this issue. Perhaps we’ll see something similar to the PC application market in the mid-late 90’s (and the Blackberry application market today), where only certain devices will be capable of running certain applications. Only time will tell if these issues will prevent the development of the Android application ecosystem.

A killer feature

One wild card that is always in play is the killer feature. Apple’s competitors are only one, innovative, killer feature away from stealing the spotlight for themselves. By “killer feature”, I mean a feature so awesome that when you see it in action, you say to yourself, “I need one of those!”.

Version 2.0 of the Android OS took a stab at this with the introduction of Google Maps Navigation. A fantastic feature, Google Maps Navigation morphs your mobile device into a fully functional GPS unit, complete with a synthesized voice telling you where to go, real time traffic information, and several map overlays showing you the location of everything from ATMs to gas stations. But, is this a killer feature? Frankly, I’m not sure. But, its announcement was enough to cause a significant drop in the stock price of traditional GPS manufacturers, and it certainly has potential.

An incredibly easy to use device

Making devices that are intuitive and easy to use has always been one of Apple’s strengths. Look no further than the iPod for an example of this. Competing devices will need to be as easy to use as the iPhone is to appeal to the average consumer.

How do I get my music onto the device? How to I get the photos I take off? These operations should be simple and intuitive. Motorola’s new Android 2.0 device, the DROID, is seriously lacking in this area. Several steps are required to store data on or pull data off of the device:

For the iPhone, the list of steps is much smaller.

Are the steps required to store data on the DROID too much to handle for an experienced computer user. No, of course not. But, there is still a large percentage of people out there who would struggle with completing those tasks. Believe me, I know. Many are family and friends of mine who I help complete “simple” tasks on their computers all of the time. These people make up a significant portion of the market. If you want them to buy your device, then you have to make it stupid simple to use.

Summary

Apple has set the bar high with the iPhone, very high. While I can think of several reasons why developers and techies would prefer a different device, I can’t think of many reasons why the average consumer would. And, there are a lot more average consumers than there are geeks.

But make no mistake, Apple’s competitors have the iPhone in their sights. The tide can shift very quickly in this market, especially since most people get a new phone every couple of years. Will the iPhone challengers be able make a dent in the iPhone’s market share? Or, will the iPhone be the de-facto standard for smart phones? Only time will tell.

Marketers seeking to develop an iPhone or other Smartphone application as part of their customer relationship development strategies have often gone down the path of determining the iPhone is the most suitable platform; Apple does a lot of the marketing, the applications are easy to access and the iPhone user experience is very consumer friendly.  At some point leading to this decision, marketers logically ask: “Why can’t I pay for one mobile application that will work across every device?”  This question will get posed now even more as Google Android-based Devices like Motorola’s Droid gains traction and becomes a viable mobile application ecosystem in its own right.

This issue is likely to be raised increasingly by top marketers not interested in the details, but who control the dollars and wonder why the rich mobile web cannot be leveraged to achieve the same ends as with a dedicated Smartphone application.  Today I came across a great article that doesn’t seek to answer this question, but does anyway, by describing how close (or far) we are from being able to approach mobile apps with a “write once/run anywhere” promise, like was promoted by Sun Microsystems when the Java programming language debut.

This November 10, 2009 post titled “One Mobile App for Multiple Platforms Almost a Reality” on the ReadWriteWeb.com site points to three approaches which offer the potential to develop a single application capable of running on nearly all devices.  The key qualifier is the word “potential,” however, as a poor Mobile Customer Experience represents a huge gating factor.

The author cites HTML 5, Adobe Flash and JavaScript Native Applications as three approaches, and each has its good and bad points.  I will get to the good points in a minute but the key issues with the first two are the potential to lose a network connection and thus have an application “close” abruptly.  This is a psychological hurdle significant enough to discourage users from these apps relative to ones which are fully operable on a device without a connection.  The latter of the three suffers from a user interface which works for many but is optimized for none; Javascript allows rich applications but that require interface technologies which are general purpose.  These lack a Smartphone app’s native look/feel which attracts consumers to mobile apps to begin with.  Now the good news:

• HTML 5: Think mobile optimized web pages with significant database access, and this offers a lot of application-like capabilities.
• Adobe Flash: Similar value to the above, maybe more so by virtue of greater visual and interactive controls.
• Javascript: Allows creation of encapsulated, self standing applications, which can run on multiple devices.

It goes without saying that customers demand more from a mobile application than they would a desktop one; it must “fit” more in line with their “on the go” behavior and so the design and user experience are as important as any other factor in a successful application.

Given limitations, real or imagined, around the connectivity between a device and the network, and the role a native look/feel has in ensuring an apps’ adoption by its target audience, we are not going to see “write once/run anywhere” mobile apps anytime soon.  Instead, marketers will have to pick their battles, so to speak, based on alignment of their customer demographics with those of Smartphones.

The big news today was Google’s acquisition of mobile advertising network provider AdMob for $750 million in stock.  In case you are not familiar with AdMob, it is among the more prominent mobile services firms, providing an advertising network and complementary measurement tools mainly for the iPhone.  They are also often “go to” people for statistics around mobile web usage, penetration and growth.

I say they bought more than AdMob, because in fact Google’s move illustrates the giant “gets” mobile, and that it means a lot more to marketers than hyperlinked words alongside search results (AdWords) or appended to websites in an ad network (AdSense).  It’s about providing a platform for marketers to reach their customers in the most relevant, timely and effective manner, based on the mobile experience.

Moreover, it’s recognition of the powerful marketing platform that is the iPhone, despite last week’s release of the Motorola Droid and what is sure to be a flood of Android-based phones in the coming year.

Oh, wait, Google owns Android too.  Hmmm, seems like they have their bases covered pretty well with the leading and arguably most effective mobile ad network used on the competitive iPhone, and the top contender to dethrone the iPhone.  Those Google people are really smart.

In AdMob, Google now has a wedge to use in its efforts to compete for marketer’s mindshare and dollars.  Over time, you can imagine those dollars spent advertising within iPhone applications will find their way into apps for Android.