future local webinar nov12
TRANSCRIPT
“The Future of Location on Mobile Devices: LBS, Apps &
Monetization”
Greg SterlingInternet2Go November 12, 2009
© 2009 Opus Research, Inc. 2
Opus: Internet2Go
Research & advisory service Tracking evolution of “mobile Internet” Ecosystem segments:
Devices, ad networks, carriers, content producers, infrastructure, sales channels, advertisers
Proprietary research Geographies: US and EU, China
© 2009 Opus Research, Inc.
Mobile Brings Local into Focus
People had a hard time “getting” the Internet’s relationship with offline transactions -- local
More recent: better understanding of local
Mobile instrumental in helping people see the value of local more clearly
Mobile a “bridge” between digital/PC world and physical world
© 2009 Opus Research, Inc.
Source: Opus Research, comScore, CTIA, Nielsen, US Census Bureau (2009)
Populations: Offline, Online, Mobile
4 Major US Carriers: 250M subs approx.
Mobile Internet: 70M
4.1B texts DAILY
30% of Verizon W revs data
© 2009 Opus Research, Inc.
Pew: % of all US adults going online via mobile
Pew Internet & American Life Project: March, 2009 n=2,253 US adults
53% of smartphone owners report using mobile Internet “at least once a day”
Opus Research, 3/09
Mobile Web Usage Frequency
© 2009 Opus Research, Inc.
Content: Smartphone Users
Source: Universal McCann/AOL Study: “Smart Phone, Smart Marketing” June, 2009
• TMPDM-comScore: 32% have conducted a local search via mobile Internet or app
• 60% for smartphone users
August, 2009
© 2009 Opus Research, Inc.
Subscribers Accessing Local Mobile Content* by Access Method
Three-Month Average Ending June 2009 vs. June 2008
Number of Mobile Subscribers (MM)
Jun-08 Jun-09Y/Y Percent
Change
Any Access Method 24.3 34.1 40%
Browser 17.9 21.7 21%
Application downloaded to phone
6.0 13.7 127%
SMS 7.6 9.6 27%
*Local content defined as searching for information on maps, movies, business directories or restaurants.
Source: comScore Mobile Metrics (US Mobile Subscribers Age 13+)
Local Content Access Methods
© 2009 Opus Research, Inc.
Big Online Local Brands Mobile
© 2009 Opus Research, Inc.
Mobile (Web) Search
Web search on mobile generally resembles PC-based search; market share hierarchy is directionally the same as on PC.
© 2009 Opus Research, Inc.
Locally Oriented Apps
Source: Skyhook Wireless, Oct. 2009
© 2009 Opus Research, Inc.
The Categories
• Local search• Maps• Navigation• Verticals• Social networking• Augmented reality• Product search• P2P Q&A
© 2009 Opus Research, Inc.
‘Local Search’ Mostly the Same
Most YP apps offer the same experience as PC, although it’s starting to evolve
© 2009 Opus Research, Inc.
Experimentation Happening
• Dex using the “slot machine” • YPMobile includes events (from Zvents), verticals• Augmented reality from Yelp and Superpages
© 2009 Opus Research, Inc.
Search Browse, What’s Nearby?
© 2009 Opus Research, Inc.
Ask a Human
This is “real time” WOM or “social search”
© 2009 Opus Research, Inc.
Fickle Users
Apps downloaded but often abandoned quickly
© 2009 Opus Research, Inc.
Monetization: Many Scenarios
App generated $1 million in sales since launch -- roughly 3 mos. ago
In app advertising
Display on mobile Web
Traditional SEM
© 2009 Opus Research, Inc.
Trends in Local-Mobile
Mobile Web more app-like (location in browser)
Future apps/approaches more “native” to phone (voice, contacts, camera) -- AR
Verticals/point solutions
Social media/WOM
Out in the real world (SMS, QR, barcodes)
MOBILEPEOPLE 2009
MOBILE LOCAL KEY THEMES, TRENDS, THOUGHTS FROM MOBILEPEOPLEKEY THEMES, TRENDS, THOUGHTS FROM MOBILEPEOPLE
20 MobilePeople © 2009
THINGS THAT ARE NOT NECESSARILY TRUE ON THE SURFACETOP 5 MYTHS ABOUT MOBILE LOCAL
1. My Mobile solution needs some new and “crazy” feature• I want to drive buzz and adoption (downloads), so come up with
something cool
2. Location !!! – I want to push alerts to people based on location
• I want to send alerts to anyone within 5 blocks of a store about a current sale
3. Build me an iPhone app!• The market and my user base is expecting me to have one
4. Before we launch, I need all of these other features included
• I get one shot with users, so I need to make sure its feature complete
5. I know my data is not great, but…..
21 MobilePeople © 2009
WAYS TO COMBAT THE MOBILE LOCAL “MYTH” GREMLINSPRESCRIPTIONS FOR SUCCESS1. Focus on function over form!
• If your app is a utility app, it has to work correctly – period! • Unless your solutions is for branding purposes only and it’s a “novelty” play,
cool features and the “wow” factor will wear off quickly if the application isn’t useful
2. Location IS a key factor in Mobile Local, but be practical• Users do want to find things “near” them, but let them initiate the search• LBS could be considered a technology solution looking for a problem.
• If you want to alert people walking by a store that a sale is going on inside, put a sign in the window (its cheaper and easier)
• Privacy concerns are going to dictate that LBS be permission-based
3. Why do you need an iPhone app?• You may in fact need one and should build one, but first make sure you know
why• Identify and understand the needs of your target audience. • Determine what your solution needs to do (features, footprint, device needs)• Understand the advantages and disadvantages of various mobile solutions
(apps vs. HTML5 vs. WAP vs. SMS etc.)
22 MobilePeople © 2009
WAYS TO COMBAT THE MOBILE LOCAL “MYTH” GREMLINSPRESCRIPTIONS FOR SUCCESS (cont)4. Ship the product and learn!
• Loading an app with features is not necessarily a bad idea, unless…• You take too long to get it to market or you complicate the user
experience• Our advice is to focus on the core features, get them right, and ship
it!• Learn from the market (or as others would say “fail fast”)• You can always add those other features in a later release (if you
ever decide to)
5. Get your data right – it all goes back to function over form!
• If your solution is to provide relevant content (either search results, business listings, or other local media) – please make sure its relevant.
• Users won’t have much patience for incorrect, out-dated, or stale data
• Mobile users tend to be “here and now”, meaning that they are looking for information that is current, accurate, and relevant.
NEXT BIG THINGS IN MOBILE LOCAL
Discovery• An evolution of search, utilizing the mobile devices knowledge of
“where”, “why”, and “when” to help a user determine the most relevant “what”
• “What is around me that can meet my need?”• Discovery is about find – you always find what you are looking for in
the “last place you search”• Call this “skipping to the end of the story”• DISCOVERY WILL REQUIRE ACCURATE AND FRESH DATA
Mobile eCommerce• Along with Discovery, this will be another big trend in mobile local:
doing transactions from the device• Replacing credit cards, loyalty cards, purchase and “pickup”• Reserve and use
23
MOBILE PEOPLE © 2009
TOLDBODGADE 12, 1253 COPENHAGEN K, DENMARKLONDON - COPENHAGEN - DENVER - MELBOURNE
© 2009 Opus Research, Inc. 25
Q&A
Greg SterlingSenior Analyst & Program Director - [email protected]
Nahid GigaVP, Business Development - MobilePeople [email protected]
Jeff PorterVP / GM - MobilePeople Inc. [email protected]
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