Posts Tagged ‘Microsoft’

Mobile OS to spew out-of-app ads

Posted By Rik Myslewski in San Francisco, 27th June 2010 06:02 GMT • Get more from this author

Microsoft is positioning its upcoming Windows Phone 7 smartphone OS, planned for release this October, as an “ad-serving machine.”

That’s how Microsoft exec Kostas Mallios described the OS to an audience that could be expected to approve of Windows Phone 7’s taking a starring role in the mobile-advertising firmament: attendees at the Cannes Lions International Advertising Festival.

Microsoft’s smartphone OS will provide advertisers with three levels of ad-serving “opportunities” in addition to standard browser-based ads, and in a radical departure from the tacks taken by either Apple’s app-based iAds, scheduled to launch next Thursday, or Google’s browser-centric world, two of Windows Phone 7’s ad-delivery systems will enable ads to be sent outside of either apps or the browser.

The first level of ad-serving is app-based. No surprise there. App-based ads can be either static or can be updated over the air by advertisers attempting to build an ongoing “conversation” with customers who have chosen to download their apps, providing product and service news, offers, coupons, and the like.

The next two ad-serving schemes, however, break new ground — although some may argue that it’s ground that might better be left un-tilled.

One is based on Windows Phone 7’s concept of “tiles”, which are graphic elements that reside on the home screen as do icons and folder in iOS, or icons, folders, and widgets in Android. Tiles can be created from apps that can be “pinned” onto a location of the user’s choice on the home screen, and be updated dynamically with advertising content.

“That tile,” Mallios told his crowd, “is actually a dynamic tile that you’re now able to push information to as an advertiser, and stay in touch with your customer. It’s a dynamic relationship that’s created. It provides for an ongoing dilogue with a consumer.”

Exactly how ads pushed onto the home screen of your smartphone is a “dialogue”, Mallios did not explain.

However, what if the app is not running? You may think, Mallios explained, that you’ve “severed the relationship” with the customer.

No problem. “We have a third concept called ‘toast’,” Mallios said. “So now we have applications that are actually dynamic that you can download, that you can ‘pin’ in a new concept called ’tiles’ — those tiles are another communications stream between you and your audience. And if neither of those are running — if the app is not loaded, if the pinning doesn’t happen — we have another way to reach your customers called ‘toast.'”

Toast allows advertisers to push ads onto your Windows Phone 7 smartphone whether you have an associated app running or not. The advertiser sends your phone an ad, your phone receives and displays it, you view it, and presumably you tap ‘n’ buy whatever the advertiser is promoting.

Mallios adds: “A customer can opt out of all of this, or they can opt in — it depends on how creative we are in gathering their attention and wanting to keep them engaged.”

All well and good, but from where we sit, this Windows Phone 7 scheme appears to be exploring new frontiers in advertising intrusiveness. If Microsoft doesn’t make it easy and transparent to opt out of ‘toast’, that word might well describe the fate of its upcoming “ad-serving machine.”

You can view all of Mallios’ eight minute–plus Cannes Lions International Advertising Festival demo in the video below:

src=”http://www.youtube.com/v/i1wODZIMllY&rel=0&color1=0xb1b1b1&color2=0xd0d0d0&hl=en_US&feature=player_embedded&fs=1″ type=”application/x-shockwave-flash” allowfullscreen=”true” allowScriptAccess=”always” width=”640″ height=”385″>

URL Link: http://www.theregister.co.uk/2010/06/27/windows_phone_7_ads/

Submitted by Editor on 7 May, 2010 – 12:45.

It has taken just five months for mobile advertising to go from a trickle of coverage in the mainstream media to a feeding frenzy. Since Google announced its plan to buy mobile ad network AdMob for US$750 million AdMob for US$750 millionin November, national papers and newswires (in the US particularly) have clambered over each other to report the latest rumor, speculation and hearsay, followed by innumerable me-too pieces in trade journals and blogs.

Tweet this

This is manna from heaven for the wider mobile business – mobile publishers, mobile agencies, as well as the mobile advertising networks, which have all been fighting for years to get a fairer share of marketing and advertising budgets. The more coverage mobile advertising gets in the business pages more recognition it deserves with the business press and, thus, brands and creative agencies. This is all thanks to Google, Apple, the FTC and a soap-opera-like story line that’s got the media hooked.

“Anything that brings more money into the mobile ad ecosystem is a good thing,” said Ilicco Elia, head of consumer mobile, Reuters, when asked his opinion on Apple’s iAds, “I look forward to seeing the case studies from and statistics on the effectiveness of these campaigns. This should grab the interest of brands and get them thinking more about mobile advertising… It’s all a good thing.”

Before we delve into why this is good news, let’s get some things into perspective. In true soap-opera style we have four cliffhangers. We’ll give you the facts you draw your own conclusions.

The Cliffhangers:

1) Should the FTC stop Google buying AdMob?
2) Should advertisers pay US$1 million to advertise on Apple’s iAds?
3) Are Google and Apple at war?
4) Will the FTC investigate Apple?

1) Should the FTC stop Google buying AdMob?
The facts:

• We know from Google that the Federal Trade Commission (FTC) has been investigating its acquisition of AdMob. Everything else reported has been unattributed rumor and speculation.
• Mobile advertising is a nascent business – estimates for global mobile advertising expenditure in 2009 ranged from US$1.4 billion to $7.5 billion (see the Mobile Stats Compendium for details) – but it is expected to grow fast (maybe even faster now it’s mainstream news).
• This market is served partly by mobile ad networks. There are dozens of them, serving different geographies and different types of publishers and advertisers.
• No one really knows the market share of any ad network, because they do not reveal revenues (… but all the FTC has to do is ask, surely? So it’s surprising that it’s not been put to bed yet).
• AdMob claims to serve ads to 18,000 mobile Websites and applications. This might sound a large number (and is widely misunderstood) but AdMob is a mass-market, blind network (many networks are not, please see Mobile Ad Network Guide for definitions and profiles). This means: a) publishers could be tiny, b) deals will not be exclusive to AdMob c) ads are mostly cost-per-click (CPC), so advertisers don’t pay anything unless the user interacts.
Get it in perspective: AdMob has only a small fraction of global mobile sites. No one knows how many mobile sites there are exactly, but this will give you an indication: there are 15,000 official sites on NTT Docomo’s i-mode service Japan – that’s one operator portal in one country …albeit the biggest portal, probably (See this Mobile Guide to Japan for details).
Why it matters: the FTC needs to put this to bed. So much press coverage of a) AdMob and b) talk of market dominance will not help advertisers or publishers to make an informed decision about what mobile ad network is best for their business. Meanwhile Google and AdMob are caught in limbo.
What the mainstream press is saying:
• Google’s AdMob purchase said to be opposed by U.S. FTC staff (Bloomberg)
• FTC decision in Google’s AdMob deal imminent (San Francisco Chronicle)
• What people are telling the FTC about Google-AdMob (Round up by Google blog)

2) Should advertisers pay US$1 million to advertise on Apple’s iAds?
The facts:

• Despite the media hype, iAd but doesn’t exist yet (only announced). These are adverts that appear in applications downloaded to Apple mobile devices from the vendor’s App Store. The revenue from the ads will be shared 60:40 between the app owner and Apple (some ad networks take more than this, by the way). The backbone to iAds is provided byQuattro Wireless, a mobile ad network that became part of Apple in January 2010, two months after Google bought AdMob.
• Many ad networks offer in-application services already (AdMob is probably best known for it), but Apple’s ads will be jazzier, and appear to be closely tied to the upcoming Apple operating system.
• The US$1 million price tag has not been announced officially, it was reported in The Wall Street Journal following an Apple sales pitch to potential advertisers.
• The WSJ also reported that Apple is planning to charge $0.01 each time an advert is seen – that’s cost per thousand impressions (CPM) of US$10 – and $2 each time a user interacts (i.e. CPC). Comparing this to price ranges for networks profiled in the Mobile Ad Network Guide, $10 CPM is middling; but CPC usually ranges from pennies to US$0.50 at highest. But this is the first time mobiThinking has heard of any network charging for both CPM and CPC at the same time.
The question for advertisers is: how big is the audience for my ads?
The facts:
• App Store applications only work on Apple devices. What we know:
a) Apple sold 25.1 million phones globally in 2009. This sounds impressive, but is only about 2 percent of handsets or 14 percent of smartphones.
b) We are told there are now 200,000 apps on the Apple App Store. This sounds impressive until you learn that the fifth most popular App was installed by 51.5 percent of App Store users, while number 1,000 was installed by just 1.75 percent (according to AppsFire in November).
• What we don’t know:
a) How many iPhone owners use applications from the App Store regularly?
b) How many people view applications from the App Store on a daily basis?
The question for advertisers is: will my ad appear in the most popular apps most relevant my brand.
Get it in perspective: it costs US$330,000 to advertise for three days on NTT Docomo’s i-menu – that’s the front page of the busiest mobile portal in Japan – this page is seen by 15 million visitors per day. (See this interview with D2 Communications’ president Akihisa Fujita
The question for advertisers is (assuming the US$1 million price tag on iAds is true): what can Apple’s in-app advertising offer that’s three times as good as the prime real estate on NTT DoCoMo’s portal?
Why it matters: the joker here is the Apple factor.
• The big question is how many column inches will the first iAd advertisers receive, in all those media reports on Apple, when iAds actually launch.
• Meanwhile Apple’s price tag makes all other mobile ad players look extremely cost effective.
• See comments from leading mobile ad networks YOC and Jumptap below.

3) Are Google and Apple at war?
It has been widely reported that Google and Apple are at war. Let’s assume ‘war’ is a tabloid term for ‘competition’, because this really isn’t a matter of life and death. Although you shouldn’t expect either side to stamp it out this warmongering as it means lots of fantastic free publicity.
The facts:
• Apple and AdMob have both bought mobile ad networks… but so did Microsoft, AOL and Nokia previously.
• We’re told that Apple planned to buy AdMob before Google stepped in. So what? There are half a dozen independent mobile ad networks in the US, alone. Quattro was part of Apple within two months (and according to rumors cost substantially less).
• Apple and Google both make smartphones… but RIM and Nokia sell more. In 2009 Nokia smartphones outsold Apple’s almost 3:1 and all smartphones with Google’s Android operating system almost 12:1. Note: that’s just smartphones, in total handsets, Nokia outsold Apple 17:1 and outsold Android 64:1. (see Mobile Stats Compendium for details)
• Google and Apple’s mobile strategies are different. Google has mobile search, mobile Web sites, search advertising and banner advertising, all targeted at all handset users (replicating its online businesses). Apple has mobile applications and music download store only available for Apple handsets, and now will sell advertising within them. (Note: like all ad networks Quattro focused primarily on advertising on mobile Web sites, but it is unclear how this sits with Apple’s app-centric business.)
• Apple’s purchase of Quattro and now (reported) plans to charge $1 million for iAds just make Google’s defense against the FTC even stronger.
Why it matters: But this phony war (the real story is that they might compete a bit in some bits of their businesses – big deal) distorts the facts, it inflates the importance of Google and Apple and AdMob and Quattro and the big picture has been lost.
The warmongering media:
The war between Apple and Google has just begun (New York Times)
Google is now Apple’s greatest enemy: here’s why (Mashable)
Is Eric Schmidt just too nice to beat Apple? (San Francisco Chronicle/Business insider)

4) Will the FTC investigate Apple?
The facts:

• The latest plot twist emerged this week as rumors surfaced that the FTC might investigate Apple. This is (and will no doubt remain) unverified by the FTC or Apple.
• Apple’s mobile business is presently only focused on its own handsets, which has a much smaller market share than hype would suggest (see stats above). It is not interested in the innumerable mobile sites visited by iPhone users, because unlike Google, Microsoft, Nokia, Yahoo etc it has no mobile Web presence. It is only interested in the applications users download from its App Store, for which it takes a 30 percent cut of revenues (which will be supplemented if it can take 40 percent of any advertising therein). Note: Western portals and app stores take a much larger percentage of revenues than in Japan – the NTT Docomo i-mode portal charges publishers 10 percent (see the Japan Mobile Guide for more details).
• Recent changes to Apple’s rules (already tighter than most application stores) have been interpreted by the commentators in the media as Apple trying to exert greater control over this niche market of applications – and the ads therein – for Apple handsets, allegedly to the detriment of other handsets, other ad networks and developers. And thus, it is claimed, it is now drawing the eye of scrutiny from the regulators.
• Ironically, Apple has been a victim of its own hype. With the help of the media (nationals included), Apple has encouraged lots of companies to focus development and marketing efforts on applications for its handsets (often neglecting all users of other phones). Accruing 200,000 applications for one mobile platform is a remarkable achievement (even if most are flops, see above) and it is going to get you noticed, especially if you play tough.
• The FTC story originated in the New York Post which alleges that the Department of Justice and FTC are negotiating over which watchdog will launch an inquiry into Apple’s new policy that requires software developers to only use Apple’s programming tools to write applications for Apple platforms, rather than programming tools that make applications more easily portable to competing platforms e.g. Nokia, Research In Motion, Microsoft and Google.
• Apple is also at loggerheads with Adobe over its plan to ban the Flash programming language from Apple products – this recently led to a public diatribe from the Apple CEO.
• Reuters reports that developers have raised competition concerns over iAds. Apple’s new agreement with developers prohibits data about app usage to be transmitted to outside analytics companies. Rival ad networks, such as AdMob, rely on these statistics to determine how successful an online ad is in reaching its targeted audience. So, the article argues, the new rules could create an unequal playing field for ad networks competing against Apple’s.
Why it matters: On the one hand talk of regulatory scrutiny makes Apple’s App business look all the more important. On the other hand the mainstream media may start to explore the merits of investing mobile development and marketing funds in one single platform, rather than focusing on a more all-encompassing mobile strategy.

The beauty of the mobile ad soap opera

Whatever our quibbles with how the story is reported, the big picture is that mobile advertising is now mainstream and as long as the soap opera keeps the media hooked, it should stay that way. Without the expensive-sounding acquisitions (it’s amazing to think that Google only announced its planned purchase of AdMob in November), then Apple’s posturing on mobile advertising, the threat of FTC intervention in Google and now possibly in Apple, it’s difficult to see the business press taking any notice of mobile advertising – the figures alone aren’t big enough to get them excited…yet (expect the forecasts be rewritten this year).

This is the perfect case of: all publicity is good publicity. The more the mainstream press covers mobile advertising, the more brands and their creative agencies will take notice.


Industry comments on the Apple iAd story:

Christian Louca, Managing Director UK, YOC:

‘Apple certainly is setting the bar high for its new mobile advertising business – US$1million is a massive increase on what advertising executives are currently spending on mobile. I can see what Steve Jobs’ thinking is – Apple is an aspirational brand and their pricing is reflective of the exclusivity of the experience. In some ways I admire their attitude and their confidence that they don’t need to mess around with smaller budgets because of the strength of the Apple name and the kudos that the iPhone has in the market, but clearly that’s not how the majority of players in this space can or should work. It’s certainly not how we run things at YOC, where $1million could get an advertiser significantly more reach and value for money across our extensive network!

I also wonder how many brands will be willing to pay such a heavy premium to target iPhone users. While Apple has sold an impressive amount of iPhones globally, in terms of overall mobile users the platform still accounts for a very small fraction of the market, making it an extremely expensive and limited way to target consumers – especially when you consider that it has recently been reported that Android has overtaken the iPhone in terms of data usage for the first time in North America. This is a trend that I predict will continue on Android and other open platforms, representing a far more wide-reaching opportunity to target mobile users with cross-platform campaigns. The in-app advertising format touted by Apple also discounts a vast array of other highly effective mobile advertising formats such as search, which is a clear traffic driver across the YOC network, presenting brands with great opportunities to target consumers in a tailored and relevant way.

There is no denying that the iPhone is an exciting platform and that Apple has helped to show the industry what can be achieved in terms of rich and immersive user experiences. But when looking at the bigger picture, Apple represents only a small segment of the global mobile ecosystem.’



Paran Johar, chief marketing officer, Jumptap

“What makes mobile advertising “hot” is not necessarily the platform, handset, or OS. Those may contribute to the initial “sexiness” factor. However, long-term advertisers are looking for ROI and publishers are looking for a higher yield of their mobile inventory. Many elements contribute to advertiser ROI, including relevance of advertising and creative. Our approach to relevance is rooted in our vision for the future of mobile advertising based on ‘consumer intelligence’. This strategy of consumer intelligence allows users to manage their own profile so that we can present them with more relevant ads based on their interests. In conjunction with this, our strategy for creative and rich media is the most open in the industry, allowing an advertiser to integrate whatever rich media provider they choose to use into our network.
Our pricing for mobile media is simple and based on either CPM or CPC, not both. By having an additional charge above a CPC, an advertiser is essentially paying twice for the media the second time without knowing how much until the campaign ends.”


Comment below or email editor (at) mobiThinking.com.


Further reading:

  • Global mobile stats: all latest quality research on mobile Web and marketing in one place
  • mobiThinking guide to mobile ad networks (2010)
  • The insiders’ guides to mobile Web marketing:
    Japan, Canada, USA, Germany, UK, India, Australia, Spain, South Africa, Brazil
  • Why mobile is imperative for brands in Asia: interview with Marco Gavin, Procter & Gamble
  • Mobile: it’s about the consumer, stupid: interview with Barney Loehnis, OgilvyOne, Asia
  • Conferences & awards for mobile marketers, with offers
  • mobiThinking’s page of essential links
  • Posted By, Stuart Dredge @ Mobile Entertainment

    What was making waves in Barcelona this year. 20 key trends at Mobile World Congress 2010: 1-10

    Is Mobile World Congress still relevant? The conference was discernibly quieter this year, and its legacy of being dominated by the ‘traditional’ heavyweights of the carrier and handset world leads some of the newer players in the industry to see it as all a bit Jurassic Park.

    Even so, it remains a key event to take the pulse of the industry, not least because it’s where those so-called dinosaurs roar about their plans to stay relevant in the post. The clash between the old and new is what makes Mobile World Congress relevant now.

    Tweet this

    Anyway, with the dust from this year’s show settling, here’s our take on the 20 key trends of Mobile World Congress – with a skew towards mobile entertainment, as you might expect.

    1. It’s all about the user experience

    For pretty much every new handset that was shown off at Mobile World Congress, the first thing to be demoed was the user interface. Hardware features like GPS, Wi-Fi and how many megapixels the camera had were very much the last things to be trumpeted.

    Nowadays, it’s all about how whizzy your UI is. It’s certainly a step forward, although arguably also a sign that with hardware features becoming increasingly commoditised, the front-end UI is the main way people can differentiate their smartphones.

    Who chooses the interface is an interesting question though. Microsoft won’t let its handset partners muck about with the Windows Phone 7 Series UI, yet it’s now de rigeur to overlay your own interface on Android.

    2. Apps take centre stage (sort of)

    Well, as centre stage as they can be when residing in a hall at the top back corner of the MWC venue. The App Planet initiative was a qualified success. Okay, so Hall 7 was full of the same tech firms that were there last year – it’s less the apps hall, and more the enablers hall.

    But the developer sessions by the likes of Vodafone, RIM and Google were rammed – giving away thousands of Nexus Ones didn’t hurt in the latter’s case.

    The GSMA has work to do for next year to build on this success. Apps are driving sales of both smartphones and data tariffs, so the big handset and operator beasts of the GSM world need to find a way to get more apps on show next year.

    3. Who’s havin’ APIs?

    The model of downloading standalone apps accessed via a homescreen icon is here to stay, at least for the next few years. But an important trend for 2010 is apps getting more tightly integrated with smartphone operating systems and interfaces.

    RIM coined the term ‘Super Apps’ to describe this: apps that tie into the BlackBerry OS in this way, pushing alerts to the inbox, entries to the calendar, and digging into the contacts. What’s more, these apps also work better with each other via open APIs. That’s a wider trend: look at Shazam on the iPhone and the way it points users off to Last.fm or Pandora.

    Skype also talked about this idea of being baked into the operating system rather than just existing on the handset as an app – witness the way it’s part of the phone’s contacts, making it as easy to Skype-call or message your contacts as it is to voice-call or text them.

    4. The GigaHertz wars

    A 1GHz processor in a phone? It’s not such a surprise any more: these chipsets will soon become a standard for smartphones. Qualcomm’s Mark Frankel highlighted the potential for this to turn into an arms race, with handset makers competing to willy-wave in a contest to see who has the fastest processor.

    Actually, trend number one in this list will hopefully nix that prospect. But it’s worth noting that the 1GHz-and-beyond processors are providing the grunt to power this new generation of user interfaces – not to mention the rich media apps and games that run on these handsets.

    5. Google is Evil?

    We’re paraphrasing other people’s views there, obviously. Anyone who saw the Q&A section of CEO Eric Schmidt’s keynote will have seen the suspicion, anger and paranoia directed at Google from some elements of the mobile industry. The more deeply Google gets into mobile, the more negativity it’s encountering.

    It’s reminiscent of the music industry: whatever Google does, vocal elements are wondering out loud how it’s trying to screw them. The more mobile pies the company has its fingers in, the harder it will have to work to keep to that ‘Don’t Be Evil’ mantra.

    Getting app developers to love Google more would be a start. Easing fragmentation of Android OS versions and improving the Android Market stall will hopefully be high on the company’s agenda this year.

    6. Never mind the app stores

    Handset firms and platform providers are talking up their UIs, but not talking enough about their stores. Specifically, about how they’re improving things like billing and discovery, to help people find apps and then impulse-buy them as quickly and easily as on Apple’s App Store.

    There’s plenty of blather about context and relevance in the mobile industry at the moment, but both could be usefully applied more to the current and next generation of app stores.

    Developers don’t judge a smartphone platform by the power of its handsets or the 3D wizardry of its menus. They judge it by how much money they can make on its store. Apple has set the bar high, but the strong message we got from developers this week is that they’d like to see more of its rivals making serious efforts to vault it.

    7. Microsoft makes waves with Windows Phone

    There was, it’s fair to say, a lack of really big news at MWC this year. Apple wasn’t there, obviously, but with Nokia and RIM focused on services and developers respectively, stop-the-press moments were relatively scarce.

    For that reason, Windows Phone 7 Series was a genuine big reveal that held people’s attention throughout the show. It’s a big leap on from previous versions of Microsoft’s smartphone OS, with appreciable thought having been put into what a post-iPhone UI should look and feel like.

    Games developers are particularly excited about the Xbox Live aspect, although Microsoft is keeping most of the details under its hat until next month’s MIX conference. One question is whether it’ll be much easier to port Xbox Live Arcade games to Windows Phone than it will to port, say, iPhone games. If developers are too tied into Microsoft’s own tools, it’ll be a bigger risk for the mobile crowd to support the platform.

    8. Mobile advertising 2.0

    Sorry, that’s a dreadful phrase. And if we’re being accurate, we’re probably on mobile advertising 7.6 by now. But there was some interesting chatter at MWC about how mobile ads will evolve this year and beyond.

    AdMob’s Russell Buckley told ME about the success his company is having with video ads, while wondering out loud what role advertising will play in augmented reality applications in years to come. But the big talking point – although there weren’t any announcements on this score – was the plans of the various smartphone platform owners.

    Apple owns Quattro Wireless. Google will soon own AdMob assuming the deal isn’t derailed. And don’t forget that Research In Motion is rolling out its own advertising service, albeit connecting developers up to existing ad networks rather than launching or buying its own. The strategies of these companies and others will define how important ad-supported models become in the mobile apps space.

    Also bubbling under at MWC was the sense that virtual coupons and offers may be the first thing to really crack the mobile advertising model. Shazam was talking about its SARA system to let people tag TV ads and get money-off vouchers, Telmap told ME about integrating offers into navigation apps, while on the other side of the Atlantic, social location apps like Foursquare, MyTown and Gowalla are looking to sign more partnerships in this area.

    9. Where has all the porn gone?

    Remember the first time there was a content hall at Mobile World Congress – or 3GSM as it was known then? The stand imagery and demo videos were famously so filthy, a warning had to be posted on the front door for delegates with strong moral codes (or weak stomachs, given some of the material on show).

    Adult content is barely evident at the show now. There was one stand in Hall 7, and Playboy sponsored the MEF party, but that was about it. This isn’t necessarily a sign that mobile porn is on its uppers – maybe the companies involved don’t need to exhibit at a telecoms conference.

    It’s not the only sector to have ducked out of MWC though: you could count the number of mobile games companies with stands on one hand too, although there were plenty of games execs wandering around the Fira having meetings.

    10. Mobile music takes a back-seat

    The biggest music story at Mobile World Congress was Duran Duran’s GSMA awards gig, which shows that mobile music is getting considerably less hype than a few years ago.

    However, there was stuff to chew over. Spotify’s presence emphasized mobile’s role in helping it sign up more paying subscribers, while Aspiro was showing off its new white-label music streaming and downloads service, which it says is responding to a demand from operators, particularly those who are also fixed-line ISPs.

    The downloads versus streaming thing will be a big issue in 2010 though – tying into the question of whether mobile users want to own music, or simply access it. The offline cacheing feature first introduced by Spotify is fast becoming an essential for streaming music apps, tipping the balance towards access. Yet partnerships like the one between 7Digital and Last.fm on BlackBerry hint at more links between the two worlds – people buying the songs that they’ve been streaming on their phones.

    Incidentally, ME had a chat with Nick Rhodes out of Duran Duran at the MEF party, and it was interesting to hear him say that the band is keen to do something mobile, but focused around connecting with fans rather than flogging them music. It’s a sign of a change in how artists (and the rest of the music industry) see mobile.

    What else was making our brains tick in Barcelona this year?

    Late last week, we published the first half of our roundup of the key trends and issues we noticed during Mobile World Congress, based on interviews, chats and gossip at the show.

    You can read the first ten trends by clicking here. Now it’s time for the second half. Read on:

    11. Mobile TV is (finally) getting sexier

    The app that most impressed ME at Mobile World Congress was Fuugo, a new mobile TV service being touted by Finnish firm Axel Technologies.

    It aggregates shows from traditional broadcasters, mobile channels and UGC websites, serving them up in a slick touchscreen interface. It throws in social aspects and TiVo-style recommendation to boot.

    We also saw a beta demo of the latest version of Aspiro’s white-label mobile TV service, which has been redesigned for the new breed of touchscreen smartphones. Meanwhile, Qualcomm’s FLO TV has come on in leaps and bounds too.

    The trend: mobile TV is finally starting to deliver an experience worth watching. The ability to change channels by swiping – and the fact that it switches quickly – is a world away from the clunky interfaces of yore.

    Plus, mobile TV is moving away from the pure linear model that forced you to watch whatever was being shown at that time on your chosen channel, towards more on-demand and PVR aspects. All good.

    12.  App discovery via your social graph

    Another interesting feature in Fuugo is the ability to get recommendations of shows direct from your Twitter contacts within the app.

    Meanwhile, ITHR Consulting’s myphonehas was a white-label app store platform with social recommendations at its heart – imagine the App Store, with an extra box for apps that your friends have just bought.

    These companies aren’t the first to think about social recommendations, of course. Nokia talked about the idea when it first launched its Ovi Store, although the social aspect hasn’t really made itself known so far.

    Meanwhile, iPhone apps like Chomp and Chorus are looking to provide real-time recommendations from their wider communities, while also letting users check out ratings from their Twitter and Facebook friends who also have the apps.

    At a time when app discovery is a big issue, using the social graph is an interesting approach. However, it’s more powerful when related to active recommendations – apps that your friends like – rather than just what they’ve been buying.

    13. Google and Apple’s M&A-fuelled battle

    This won’t be news to anyone: Google and Apple are increasingly stepping on one another’s turf, and both have big cash reserves to buy any startup they think will help them step more decisively. AdMob and Lala are two companies who’ve benefitted recently, but most observers expect there to be more to come.

    With that in mind, Mobile World Congress offered some insights into how companies might position themselves as a suitable acquisition.

    Take Shazam, which has just moved into advertising with its SARA platform, which lets people tag TV ads as well as music. Allied to its core business – with 50 million users and growing fast – and the company could clearly appeal to either Apple or Google in the months ahead.

    Something else we picked up at MWC was chatter over Apple’s ambitions on the social side of mobile entertainment. Currently, there’s no proprietary social network for iPhone, iPod touch and (soon) iPad – while there’s a multitude of Xbox Live-esque community platforms for iPhone gaming.

    However, many observers are wondering when – rather than if – Apple will change this, launching its own social platform for apps to tie into.

    14. Nokia’s Big Statement

    When Nokia first confirmed that it wouldn’t be booking a stand at Mobile World Congress, it seemed like bad news for the show. One of the biggest players in the industry was making no secret of its view that MWC was overpriced, and that its money could be best spent outside the Fira.

    Last week, there was no shortage of commentators suggesting that the decision was actually bad news for Nokia, allowing its rivals to steal the limelight – something helped by the lack of any new Nokia handsets announced at its press conference on Monday. Had the move backfired?

    In short, it’s too early to say. If you’re not launching a bunch of new phones, splashing a million Euros on a flashy stand is probably less effective than booking an external space giving you total control over branding – not to mention guaranteed Wi-Fi and good grub.

    You could also argue that it’s more evidence of Nokia’s desire to be more Apple-like in the control it exerts over its big announcements.

    And those announcements? The MeeGo news was intriguing, but also caused developer head-scratching after months of being encouraged to make apps for Maemo.

    Meanwhile, the stats given out for Nokia’s entertainment services were as revealing for what they left out – no user or download numbers for music for example – as for what they trumpeted.

    15. Three screens plus the cloud

    We think this is a phrase coined by Microsoft, to describe services that are available on PC, TV and mobile and hosted in the cloud – but it applies beyond that company’s products to a number of entertainment services nowadays.

    Xbox Live is one, of course, as it’s finally due to make its way to mobile as a key part of Microsoft’s Windows Phone 7 Series platform. However, you can add Spotify to the list too – it’s already on PC and mobile, and has ambitions to be accessible through TVs too.

    Last week’s announcement of the BBC’s plans for mobile apps also gains it entry to the TSPTC cabal (as nobody’s calling it).

    This might need to be expanded to four screens once tablets take off, mind. But it ties into something that Norwest Venture Partners’ Tim Chang told us last week – that in not-too-long, pureplay mobile games firms will be history, as companies increasingly look to release games on Facebook, as PC downloads, on console digital stores and anywhere else with a digital distribution platform.

    It’s not that games or services are the same on all these different platforms – far from it. But many companies are focusing on digital entertainment nowadays, rather than just mobile entertainment.

    16. The speedy decline of Java gaming

    The cat is finally out of the bag: sales of games for feature phones on operator portals are slumping, as many of their keenest games customers upgrade to app-store-toting smartphones.

    The trend has been talked about for months, and usually denied by the operators and top-tier publishers, who said their J2ME revenues were holding up.

    The latter aren’t saying that any more. Gameloft told ME last week that its Java revenues had suffered in Q4, while Glu admitted the same in its recent Q4 financials – with the latter saying the decline had been faster than it expected.

    It’s a transition phase, in other words, and games publishers that have struggled to ramp up quickly enough on iPhone – while getting ready for other smartphones – are feeling the pinch.

    That’s the reason Glu is shifting its studios towards smartphone development, as well as the thinking behind I-play’s recent strategic shift away from the carrier portals.

    It’s worth pointing out that this isn’t a flee away from the operators themselves, necessarily. After all, this year plenty of them will be launching their own app stores supporting Android and other smartphones…

    17. Social media aggregation

    The days when operators tried to do everything themselves are gone – which is why none of them are making noises about launching their own equivalents of Facebook or Twitter.

    Those two services in particular have become standards, to the extent that many new handsets last week showcased their integration with both as a key feature.

    However, one thing both operators and handset makers are doing is trying to get in the middle of their customers and social media, by offering aggregation-type services. Vodafone 360 and MOTOBLUR were joined last week by Samsung’s Social Hub software, which is a key part of its new bada platform.

    The message: customers have a plethora of social media services, and need someone to help make sense of them. Mobile-savvy users might not – they’ll likely be using Facebook’s official app and a powerful Twitter client. But for mainstream mobile users, these services may be increasingly handy – especially when they sit on the homepage of the handset.

    Our only question: what happens when two such services clash? Could we ever see a MOTOBLUR handset sold by Vodafone – and if so, will users get to choose which aggregation service to use?

    18. Going local

    The apps thing may be global, but there was lots of talk about local apps last week. By which we mean localisation – apps being translated into various languages to boost their popularity around the world – but also about smartphone platform-owners talent-scouting beyond the West Coast of the US for developers.

    It was there in RIM’s plans to hold BlackBerry roadshows around the world, while leaving behind local community groups after the event.

    And it was there in Nokia talking about the importance of local music to Comes With Music in its most successful markets. It was even there in Glu Mobile’s announcement halfway through the week that its Call of Duty game has been fully localised into Arabic for Middle Eastern markets.

    It’s a reminder that locally developer apps can build a big audience even against well-established international opposition. We write a lot about Foursquare, Gowalla and MyTown in the social location field, for example, but don’t bet against local competition around the world if it comes up with something more culturally relevant.

    19. Same app, different platforms?

    Our interest in this trend was tickled by a comment from Shazam’s Andrew Fisher last week, when he said that “Mobile is still fixated in differentiation – every handset maker wants to know how we can make a different flavour of Shazam for them”.

    iPhone is the lead platform for a lot of mobile developers nowadays, even if Android, BlackBerry and Nokia/Symbian have their own communities too.

    So it’s interesting to see the question of whether an app should be the same across different smartphones, or incorporate unique features depending on their capabilities. An example might be Spotify running in the background on Android, but not on iPhone.

    To some extent, Apple’s rivals are having to swallow their pride and stress to developers how easy it is to port iPhone apps to, say, Windows Mobile – rather than demanding exclusive features.

    However, RIM’s coining of the term ‘Super Apps’ to describe apps that dig deep into its OS shows that not all are settling for the me-too approach.

    20. Feature phones are getting smarter

    Apps are a smartphone thing, right? Except maybe they’re not in the medium-term, thanks to the launch of app stores that support more affordable feature phones, and the smartening up of feature phones themselves with widgets and social media integration.

    HTC’s Smart was announced last week with O2, and uses Qualcomm’s Brew Mobile platform to provide features that would normally be expected from more expensive handsets.

    The potential of Nokia’s Ovi Store is as much about India, China and Russia as the big Western markets where it’s had so much criticism.

    Novarra’s oneweb service – also released last week – is also about opening up a much wider base of handsets to apps and widgets. And Samsung’s bada platform was supposed to be all about bringing smartphone-esque features to the mid-tier, although puzzingly the company’s first bada phone, the Wave, is a high-end smartphone.

    Anyway, the point is that apps aren’t just a high-end thing any more, and while there’s merit to the arguments that everyone will have a smartphone in a few years’ time, for the time being, there’s an opportunity for any mobile entertainment firm targeting more affordable handsets.

    Which, yes, we realise somewhat contradicts Trend 16 in this list…

    URL Link:

    http://www.mobile-ent.biz/features/255/20-key-trends-at-Mobile-World-Congress-2010-1-10


    By Peter Burrows

    http://images.businessweek.com/mz/10/04/600/0104_mz_28applegoogle.jpg

    Photo-Illustration by David Rudes

    On Jan. 5, Google (GOOG) did a very Apple-like thing. In a presentation at the Googleplex in Mountain View, Calif., the 11-year-old search behemoth unveiled Nexus One, a stylish touchscreen smartphone that runs on the company’s Android operating system, is sold through a Google-operated retail Web site, and greets the market with an advertising tagline (“Web meets phone”) as simple and optimistic as the one Apple used in 2007 to introduce its iPhone (“The Internet in your pocket”).

    Tweet this

    On the same day, Apple did a very Google-like thing. Steve Jobs, the king of splashy product launches and in-house development, announced a strategic acquisition. For $275 million, Apple purchased Quattro Wireless, an upstart advertising company that excels at targeting ads to mobile-phone users based on their behavior.

    When companies start to imitate one another, it’s usually either an extreme case of flattery—or war. In the case of Google and Apple, it’s both. Separated by a mere 10 miles in Silicon Valley, the two have been on famously good terms for almost a decade. Jobs and Google CEO Eric Schmidt, both 54, spent years in separate battles against Microsoft (MSFT) while Schmidt was at Sun Microsystems (JAVA) and Novell (NOVL). Over time, they went from spiritual allies to strategic ones. When Apple had an opening on its board in 2006, Jobs tapped Schmidt. “Eric is obviously doing a terrific job as CEO of Google,” Jobs said at the time. Schmidt, meanwhile, called Apple “one of the companies in the world that I most admire.”

    Tensions in Silicon Valley’s special relationship began to emerge in late 2007, when Google announced plans to develop Android for mobile phones. Apple had unveiled its iPhone in January of that year, and it was clear that the two companies would spar in the smartphone business. Still, both were niche players, with more formidable rivals in companies like Nokia (NOK), Samsung, and Research In Motion (RIMM). Only after software developers began creating thousands of mobile apps, and it became clear that phones would become the computers of the future, did the conflicts begin to grow serious. Last summer, Apple refused to approve two Google apps for sale to iPhone users, raising questions about how much of a Google presence Apple would allow on its devices. In August, Schmidt gave up his board seat. “Unfortunately, as Google enters more of Apple’s core businesses,” Jobs said at the time, “Eric’s effectiveness as an Apple board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings.”

    Now the companies have entered a new, more adversarial phase. With Nexus One, Google, which had been content to power multiple phonemakers’ devices with Android, enters the hardware game, becoming a direct threat to the iPhone. With its Quattro purchase, Apple aims to create completely new kinds of mobile ads, say three sources familiar with Apple’s thinking. The goal isn’t so much to compete with Google in search as to make search on mobile phones obsolete. “Apple and Google both want more,” says Chris Cunningham, founder of the New York mobile advertising firm Appssavvy. “They’re gearing up for the ultimate fight.”

    Apple spokeswoman Katie Cotton declined to comment on the company’s advertising plans or its relationship with Google. Google spokeswoman Katie Watson said the company would not make executives available for this story. She did provide a statement, attributed to Vic Gundotra, Google’s vice-president of engineering: “Apple is a valued partner of ours and we continue to work closely with them to help move the entire mobile ecosystem forward.”

    URL Link to Businessweek:

    http://www.businessweek.com/magazine/content/10_04/b4164028483414.htm

    Posted By, by Laurie Sullivan, Friday 8th Jan, 5:26 PM

    Tweet this

    Google has been testing the inclusion of click-to-call phone numbers in search ads on high-end mobile phones, a spokesperson confirmed. It’s a feature that fits in nicely with Nexus One, Google’s mobile phone announced earlier this week.

    In anticipation of rolling out the feature more broadly, Google contacted several AdWords advertisers to advise them that it plans to extend the feature to their AdWords accounts. It’s similar to a cost-per-call service where the advertiser is charged for the click to call the same way you might get charged for clicks from an ad to a Web site.

    When MediaPost asked Google late last month about displaying phone numbers in ads and charging advertisers when calls are initiated, the Mountain View, Calif. search engine had nothing to report. Now the company says it will have more details when the feature is finally rolled out.

    Google had few words to say about mobile search, advertising or business models during the Nexus One press conference earlier this week. That’s when it announced the phone. But as Google, Yahoo and Microsoft make investments and push harder into mobile, many industry experts believe local businesses could have the most to gain through online search and display mobile advertising.

    The intersection of local and mobile creates two distinct and huge ad opportunities, especially for small businesses, according to Kevin Lee, chief executive officer at Didit, New York. “National advertisers with regional footprints will certainly need to spend on mobile,” he says. “Plus, there are millions of small businesses who would love to grow but need something other than search engine advertising.”

    Andrew Shotland, owner of Local SEO Guide, a SEO in Pleasanton, Calif., has a different perspective on the topic. He says if Nexus One is the “on ramp” for more people to get into mobile search, then you will see opportunities for small businesses in mobile advertising, but he doesn’t believe Google’s phone does anything out of the ordinary that any smartphone can do.

    On second thought, Shotland says, “the voice search is pretty killer and it’s a key step in the evolution of mobile search, but I don’t think it’s specific to local.”

    Using search engines to comparison shop has become a major service offered by Microsoft’s Bing for mobile. The huge opportunity for retailers resides in a search query that ties eventually to a sale, whether through a browser or application through an mcommerce-enabled mobile site, or being driven into the store and finding it stocked on the aisle.

    Speaking with MediaPost on Wednesday, Jamie Wells, director of global trade marketing for the Mobile Media group at Microsoft, says it’s the next opportunity and the next hot area for search. “If you look at the classic purchase funnel, this really is the last mile,” he says. “You invest all this money in television, outdoor and radio to drive awareness — the last thing you want to do is allow a competitor to swoop in and undercut all that investment. You want to make sure to complete the sale. That’s what mobile search will do.”

    Many functions related to mobile search have been available, but Yahoo, Microsoft and Google are beginning to see a rise in use. Increased search activity, competitive pricing for mobile advertising between search engines, and qwerty keyboards in more mobile phones allow for longer search queries. Google’s recently announced voice search technology should help boost efforts, too.

    The Consumer Electronics Association (CEA) estimates that wireless handsets, which contribute more than 30% of total wireless phone shipments, will become the primary driver for revenue this year for electronics. Smartphones should lead the way, generating nearly $17 billion in shipment revenue and more than 52 million unit sales in 2010, according to the CEA.

    That push requires more support through agencies for companies of all sizes. Agencies have typically been shy when it comes to investing in people like Patrick Moorhead, who moved to Draftcb from Razorfish last year to become vice president and director of mobile platforms.

    Moorhead’s charter at Draftcb is to help the agency realize investments in technology and strategy, and educate all aspects of company divisions, from media planning to creative services. It also means helping clients understand they can’t — and should not — ignore search and display mobile advertising, especially small companies.

    A mobile campaign and strategy can put small companies on a more even footing with larger competitors. He says advertisers need to step up and create a strategy, and stop thinking they can just test mobile in a six-week campaign to see what happens. “Creating an iPhone app and calling it a mobile strategy just isn’t enough,” Moorhead says.

    The barriers have been dropping to enable all the “dream” devices that consumers have been speculating about for years. For example, there has been time to add mobile into the marketing mix and invest in the basic infrastructure to support SMS messaging as a component of CRM, Moorhead says, but they haven’t taken it seriously. Now it’s time.

    URL Link to Mediapost:

    http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=120265

    Posted By, Bobbie Johnson, Las Vegas, guardian.co.uk, Friday 8 January 2010 09.30 GMT

    Tweet This

    Alan Mulally Ford

    lan Mulally, president and CEO of Ford, delivers his keynote speech at the 2010 CES. Photograph: Mario Anzuoni/Reuters.

    A century after it first revolutionised the car industry, Ford plans to make its vehicles more hi-tech – by letting drivers listen to internet radio, conduct web searches and even send Twitter messages straight from the dashboard.

    Speaking at the Consumer Electronics Show in Las Vegas, Ford chief executive Alan Mulally unveiled the next generation of Ford’s in-car Sync entertainment system and said that it would be able to do everything they expected from a computer or mobile phone.

    “We are actually now bringing the internet to the car,” he said. “We’re going to bring all the applications you can get on mobile phones today, we’ll bring in the car – absolutely hands-free, voice activated, and focused on the road – but you can get access to all your cool stuff.”

    The system, called Sync MyTouch, is based around a pair of dashboard touchscreen computers that allow drivers and passengers to carry out a number of activities while they drive thanks to a wireless internet or 3G connection.

    The touch or voice activated systems can be synchronised with mobile handsets like the iPhone – they can use any one of hundreds of applications specifically designed for Sync, such as built-in satellite navigation and local search.

    The technology, which was developed in conjunction with Microsoft and was first unveiled in 2007, is currently only available in 12 of the company’s north American models – but Mulally said new Sync modules would be integrated into 80% of the company’s US cars within five years.

    Last year it said there were plans to launch the system in European models later in 2010,

    Despite concerns over safety, the company says that using Sync should be no more – as long as drivers to the same rules about using other in-car devices, such as satellite navigation systems and mobile phones.

    “The whole process of interface design is also more critical in a vehicle, because the driver is dealing with so many more inputs,” said Ford vice president Derrick Kuzak. “We have to keep interfaces simple and intuitive. And they have to minimize driver distraction.”

    The world’s fourth-largest car maker says it hopes that providing extras like internet connectivity can help boost its fortunes as the American auto industry struggles to cope with the effects of the recession.

    Although Ford suffered substantially during the depths of the financial crisis – posting record losses of $14.6bn (£9.1bn) in 2008 – the company appears to be on the up. Unlike its Detroit rivals, General Motors and Chrysler, the company did not file for bankruptcy and $2.3bn (£1.4bn) in profit for the second quarter of 2009.

    Mulally said that improving the technology inside its cars was an important part of turning around the company and making it a leader once again.

    “We believe these features have a place in every Ford vehicle, not just our luxury models,” he said.

    URL Link to the Guardian:

    http://www.guardian.co.uk/technology/2010/jan/08/ces-2010-ford