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Posts tagged ‘Distribution’

Digitial Ad Growth Powering Ahead – But Why?

November 16, 2013

VaultPad

Google is laughing all the way to the bank (once again) and those other folk – Facebook, Twitter, Linked in are all smiling broadly too. The number from SIG on Digital Ad growth in the last quarter would make anyone smile – if you were one of the companies. However I am perplexed at the growth in Social ad spending because I dont think it is justified.

I have a belief that a lot of this is good money chasing bad as people dont really understand Social and no decent performance metrics for Social spend are yet out there to accurately reflect the effectiveness of Ad spend on Social.

I encourage you to read the report (Link below).ec2b9b14-ca8b-4c45-855f-bbc3460428b8

It certainly makes for interesting reading but I hope those who are opening their wallets to Social and closing them to traditional advertising REALLY know what they are doing because if not – some media will go away and we will be left with a ton of schlock stuff.

Cheers

 

Mobile Web – Frustration or Paradise?

February 17, 2013

VaultPad

Way back in the 1990s the world’s first true global roaming phone was the Motorola Timeport. I recall one of my colleagues at the time was SO frustrated with the experience that he went home one day and got a hammer and nail and drove a stake through the heart of the errant device.

Have things improved lately?

Well according to most surveys despite the wonderful projections of how we are all going to be mobile in just a few years – there is a very strong undercurrent of dissatisfaction with Mobile based applications and the Mobile web in general.

The Mobile Experience is almost universally a compromise – and frequently not a good one at that. A 2011 Survey by Modapt, Inc. and Morrissey & Company suggested users are frustrated with Mobile Web experience. In this survey the majority of respondents were Smart Phone users. This would tend to indicate that the users were early adopters and savvy technology users. Yet their responses were not that happy.

  • While 95% of respondents reported using advanced smartphones, more than 86% found their mobile browsing experience to be either ‘okay’ or ‘frustrating’.
  • The Big 3 of user frustration are: slow downloads 40%, Difficult to navigate 40%, and Hard to find/read information 20%
  • Nearly one-half (48%) of smartphone users never make purchases via mobile

In a similar study published in August 2012 that confirmed the early results.  Keynote Competitive Research studied mobile behaviour from a much broader sample of US users. The study showed that 60% of tablet users expect to wait less than three seconds to get to a website, while 48% of PC Web users want download speeds faster than two seconds. Smartphone users also have high expectations, with 64% wanting a website to load within 4 four seconds and 82% of respondents wanting the website to load within five seconds. Even more startling is that 16% of users will not return to a site if it takes longer than six seconds to load, with 6% of users opting instead for competitor websites.

While Apps have created small specific applications – the explosive growth of the App market has created a number of cascading problems. Already we have the usual types of problems. Phantom downloads, poor search and even worse badly written Apps. As the barrier to entry is so low – almost everyone has been encouraged to enter the mobile web. This has created a cottage industry of plain awful App writers. Poor security (both with data and just in general) has created an opportunity for a new breed of hackers to steal your data. With Apple’s Passbook now a fixture in the iOS world – there are clear indications that the back door entry into your personal data from badly designed Apps (as well as Apple’s low barrier to certification processes) are going to result in security breaches. We just haven’t seen them – yet. From the Modapt study, Not surprisingly, fully one-half (50%) of smartphone users say they feel less secure about paying for something via mobile browser than desktop browser.

Another big issue is the nature of both Wifi and Cellular data based performance from the network. Wifi 802.11ac performance is now acceptable for most data applications but frequently the problem is not in the local network but in the backbone. The expectation of free wifi that most users have is now tempered with smart acces points having dual speeds. Crippled and OK. Crippled are free, OK is if you pay a premium.But we are to blame as well. Count the number of Wifi enabled devices you have. And then try and turn them on at the same time in a hotel or airport. Even a few years ago I was in a leading e-commerce player in a major market and was appalled to learn that their backbone to the web was not even a 56K circuit, yet they had hundreds of users in their environment. Cellular data performance is just plain awful for data. I have used extensively iOS, Android and Blackberry data devices using Cellular connections around the world. Frankly they all suck.

And then there is the cost. Several times in my speaking engagements I have asked the audience to honestly admit (of those who data roam) if they have ever left their data circuits on and received a large bill. go on admit it – you have too! (Oh yes and I do it frequently. Mostly because I am lazy or just forgetful.)

Consumer expectations and network performance are clearly in a state of dissonance.

Actually i am pessimistic about the network speed issue. 4G LTE the standard of choice for mobile data via cellular is not that much of a performance bump from 3G. Sadly APP and Mobile Web providers have chosen to take advantage of the speed to bulk up their offerings instead of allowing lighter applications to prevail and for the users to get real speed.

Nothing can be more frustrating for a user that to show up while data roaming and seeing a little notice that says. Download our App and get better access faster. In your head you calculate that the downloading the App will cost about $25 and so you wait in line… now even madder than you were before you saw that little sign. And its not just the consumers who are frustrated. Kayak recently abandoned its relationship with one of the current darlings of the Mobile Web. GetyourGuide. Further I have spoken to many players who have spent large amounts of money developing web applications only to be very frustrated with the results. Typical complaints are:

  • Poor adoption
  • Low usage
  • High costs

Google – with so much vested in mobile (not necessarily in mobile e-commerce (MCommerce) have some good advice for you. They even have a website to help you Go Mobile. howtogomo.com

Mobile providers – networks and application systems need to up their game. There is just too much crap out there and that has to change.

Cheers

Virtualization Comes to Mobile & Not A Moment Too Soon

February 16, 2013

VaultPad

Many of us are starting to doubt the hype around mobile in Travel Technology. There can be no doubt that it is critically important. However as to the level of that importance and the extent to which we should ascribe real world activity should be placed under the microscope. At the recent Future Day in Miami hosted by Farelogix to show case Distribution trends in Travel one of the presenters was Norm Rose. I have pulled one of his slides to illustrate the point. (You can see the whole presentation here on Slideshare.)Screen Shot 2013-02-16 at 12.01.55 PM

I believe that mobile is not everything. It is a part of the ecosystem but not the entire ecosystem itself. Where I do agree is in the first part of his statement but not his conclusion – namely that within 5 years the concept of mobile as a separate entity will disappear. The line is already blurred. So why do I disagree with Norm on this topic? In my view the reason is that the infrastructure to support mobile is not living up to the hype. There are many barriers to entry not least of which is cost. But don’t take my word for it. I cite the study by Localytics from 2012 which showed that only 6% of total App use was via Cellular.

But is there hope for the change and that Mobile will become as valuable (albeit a little less than what Norm is saying)? There are a few missing components and one critical one I think is about to get solved.

Virtualization has become a major buzzword in IT as the ability to adopt different entities makes management of IT resources more tolerable. The explosion of BYOD and the advance of Apple to the top of the PC tree makes Virtualization an essential part of the IT arsenal. But for mobile – there is a different set of challenges. Not least of which is the size of the screens involved. Time to learn a new term Hypervisor.

For the brief value – let me describe Hypervisor technology as a way to add virtual personalities to your mobile smartphone. Check out this article. For a person like myself who travels extensively – I suffer as I have to keep track of different and real personas for the different markets that I enter. I carry usually 3 telephones. 2 Smartphones and 1 dual SIM device. Swapping SIMs is a way of life when I am in a market. Looking at my desk today I see within eyeshot – 11 different SIMs. Virtualization can and should help to reduce this clutter and allow me to adopt different personas for work (in my case different segments) and at the same time enable me to optimize the cost of the communications device.

This will not come easy and there will be a degree of resistance particularly from the Mobile Network people. It is estimated that some time this year the number of cell phones will exceed the number of people on the planet (2011 numbers have this at 87%). Looking at the top 65 markets we can see that the heaviest concentration is Saudi Arabia where the percentage of Mobile phone users to total population is a whopping 170%. That number of subscribers could be reduced with Virtualization, so the networks are not going to be too keen to give up any revenue.

Just a little food for thought as you plan your Mobile Strategy. Just let’s say you should be a little more cautious rather than being a simple iSheep!

Cheers
Timothy