Thought Starters: Google I/O, property puzzle in England and rates of innovation

Thought Starters provides me with a chance to review and highlight some of the more important or interesting research and opinions that I’ve read over the last week or so. This edition looks at Google and Apple at a crossroads, England’s property market and questions over the rate of innovation among other things:

Whilst many technological and social indicators point to the lead that Western Europe and North America has over the developing world, there are cases where incumbent infrastructure slows down the introduction of new technologies. An example of this from  the World Economic Forum is the lead Sub-Saharan Africa has in mobile money accounts, aided by the lack of traditional financial services infrastructure:

Sub-Saharan Africa has worlds largest share of mobile money accounts

Interesting benchmark figures from Pew Research on the use of online services by the American population. There’s obviously plenty of opportunity for growth still across many different categories:

72% of Americans have used some type of shared or on-demand online services

Google I/O developer conference happened on Wednesday which saw the launch of new virtual reality, mobile messaging, smart home and virtual assistant platforms and updates for Android, Android Wear and Android Auto. It’s worth checking out The Verge’s coverage of the leading announcements if you’re wanting more details on what to expect in the coming months.

Ben Thompson has an interesting follow on to the conference pointing to Google’s technical process but also suggesting that other factors at play are likely to hamper the organisation’s success:

The problem is that as much as Google may be ahead, the company is also on the clock: every interaction with Siri, every signal sent to Facebook, every command answered by Alexa, is one that is not only not captured by Google but also one that is captured by its competitors. Yes, it is likely Apple, Facebook, and Amazon are all behind Google when it comes to machine learning and artificial intelligence — hugely so, in many cases — but it is not a fair fight. Google’s competitors, by virtue of owning the customer, need only be good enough, and they will get better. Google has a far higher bar to clear — it is asking users and in come cases their networks to not only change their behavior but willingly introduce more friction into their lives — and its technology will have to be special indeed to replicate the company’s original success as a business.

Another company that’s had a strong run but for which the future is harder to anticipate is Apple. Marco Arment has been a valuable commentator and proponent of Apple and its broader ecosystem and his concerns about Apple’s long term health should definitely be taken seriously:

But if Google’s right, it won’t be enough to buy Siri’s creators again or partner with Yelp for another few years. If Apple needs strong AI and big-data services in the next decade to remain competitive, they need to have already been developing that talent and those assets, in-house, extensively, for years. They need to be a big-data-services company. Their big-data AI services need to be far better, smarter, and more reliable than they are. And I just don’t see that happening.

As a venture capitalist, David Pakman has a vested interest in a more entrepreneurial music ecosystem. That being said, I do believe he has a strong point talking about how major record labels are squeezing some of the innovation out of the music sector:

In my mind, it would have been in the long-term best interests of the recorded music business to enable the widespread success of thousands of companies, each paying fair but not bone-crushing royalties back to labels, artists and publishers. But the high royalty rates imposed upon startups, even after clear signs over the past 19 years that the strategy killed companies, prevented a healthy ecosystem from emerging. It’s a bed the music industry made for itself, and now it is left to lie in it.

Whilst there’s a been a lot of talk about the polarisation of incomes in the West, research from Walter Frick points to a similar polarisation in corporate performance with leading firms galloping ahead of everyone else:

The gap between the most productive firms and the rest is growing

Donald Trump’s nomination for the Republican party is pretty much a given now, and I’m glad to see more and more commentators coming out to express their opposition to his candidacy. Robert Kagan’s is definitely among the more eloquent, let’s just hope the US population listens to reason:

And the source of allegiance? We’re supposed to believe that Trump’s support stems from economic stagnation or dislocation. Maybe some of it does. But what Trump offers his followers are not economic remedies — his proposals change daily. What he offers is an attitude, an aura of crude strength and machismo, a boasting disrespect for the niceties of the democratic culture that he claims, and his followers believe, has produced national weakness and incompetence. His incoherent and contradictory utterances have one thing in common: They provoke and play on feelings of resentment and disdain, intermingled with bits of fear, hatred and anger. His public discourse consists of attacking or ridiculing a wide range of “others” — Muslims, Hispanics, women, Chinese, Mexicans, Europeans, Arabs, immigrants, refugees — whom he depicts either as threats or as objects of derision. His program, such as it is, consists chiefly of promises to get tough with foreigners and people of nonwhite complexion. He will deport them, bar them, get them to knuckle under, make them pay up or make them shut up.

The UK referendum on whether the country chooses to leave the European Union is fast approaching leading to some scaremongering  from the pro Brexit camp.  Providing a rather different perspective is research from Philippe Legrain who points out the economic benefits potentially provided by the influx of refugees to Europe:

Refugees who arrived in Europe last year could repay spending on them almost twice over within just five years, according to one of the first in-depth investigations into the impact incomers have on host communities.

Refugees will create more jobs, increase demand for services and products, and fill gaps in European workforces – while their wages will help fund dwindling pensions pots and public finances, says Philippe Legrain, a former economic adviser to the president of the European commission.

Over the following decade, England’s population rose by 4.1m while its housing stock rose by only 1.7m, something which any economist will tell you is going to cause some problems. This shortage is exacerbated by disparities between local authorities as The Economist recently mapped (click through for the interactive version):

Housing stock v demand

A further indication of the overheated nature of certain parts of the UK housing sector can be seen in the fact that the average first time buyer in London now earns £85k and has a deposit of £123k according to the ONS figures:

London First Time Buyers

Frans de Waal has taken a critical look at economics, pointing to its vision of the self interested human being rather different from how societies developed or currently operate:

Economists should reread the work of their father figure, Adam Smith, who saw society as a huge machine. Its wheels are polished by virtue, whereas vice causes them to grate. The machine just won’t run smoothly without a strong community sense in every citizen. Smith saw honesty, morality, sympathy and justice as essential companions to the invisible hand of the market. His views were based on our being a social species, born in a community with responsibilities towards the community.

There’s been a lot of debate over the rate of innovation, with the naysayers  attitudes illustrated by Peter Thiel’s infamous statement “We were promised flying cars and we got 140 characters.” Neil Irwin has looked at the big inventions over the last 150 years, and suggests the nature of what is being invented might have changed but the pace of innovation hasn’t:
In short, the sheer number of ways a person can be in touch with others, and consume information or entertainment, has exploded, and the price has collapsed.

This is the area in which human life has changed the most in the last 46 years. We live and travel much as we did in 1970. We eat more variety of foods. Products of all types keep getting a little safer, a little more efficient, a little better designed.

But the real revolution of recent decades is in the supercomputer most people keep in their pocket. And how that stacks up against the advances of yesteryear is the great question of whether an era of innovation remains underway, or has slowed way down.

One innovation I am expecting to see much more of in the coming years is augmented reality with its fusing of the virtual and real life. Keiichi Matsuda provides a rather dystopian view of the world we might face in years to come:

The featured image is from eko.

Thought Starters: A look at Facebook, Snapchat, hidden truths and London

Thought Starters provides me with a chance to review and highlight the more important or interesting research and opinions that I’ve read over the last week or so. This edition looks at adtech bloat, Facebook and Snapchat’s role in the social media landscape, the truth behind the statistics and London’s changing economic landscape. 

There’s been a lot of coverage about the growing adtech bloatware face and the countervailing rise of ad blockers as consumers look to improve their user experience and increase their privacy. I have considerable sympathy for the media sector which is in many cases scrabbling for a decent revenue model. But the situation doesn’t look great when consumers end up footing the bill with growing data chargers as highlighted by Rob Leathern:

When I cover deceptive ad practices/fraud, some people find it interesting, sure, but when I have explained how mobile websites are making far less money from ads than you’re paying in mobile data… People. Got. Pissed.

A recent report in The Information (paywall) points to consumers using Facebook less to share their personal thoughts, although figures from GlobalWebIndex indicate these might be part of a broader trend:

Decline in personal sharing on social networks

Ben Thompson puts Facebook’s position in the context of the broader social media landscape, contrasting it with the more personal mediums such as Snapchat (see below). Facebook’s launch of Moments and Facebook Live suggest it’s not happy being typecast in just this role:

It is increasingly clear that there are two types of social apps: one is the phone book, and one is the phone. The phone book is incredibly valuable: it connects you to anyone, whether they be a personal friend, an acquaintance, or a business. The social phone book, though, goes much further: it allows the creation of ad hoc groups for an event or network, it is continually updated with the status of anyone you may know or wish to know, and it even provides an unlimited supply of entertaining professionally produced content whenever you feel the slightest bit bored.

The phone, on the other hand, is personal: it is about communication between you and someone you purposely reach out to. True, telemarketing calls can happen, but they are annoying and often dismissed. The phone is simply about the conversation that is happening right now, one that will be gone the moment you hang up.

The growth of smartphones has had more than a helping hand in the growth of sexting among teenagers. This has raised serious questions for lawmakers who face criminalising teenagers using child pornography laws that were designed with different situations in mind and risk compounding the problem as Madeleine Thomas reports:

“You can allow them, or you can prohibit them, but [teens] are going to sext and they are going to have sex regardless,” Hasinoff says. “The potential for harm that technology creates is legitimately new, but the way we’re dealing with it is just completely the wrong approach. If you think you can stop it by criminalizing consensual sexters, it just doesn’t make any sense.”

Snapchat is one of the platforms most closely associated with sexting with figures from comScore showing the disproportionately high share of younger age categories when compared to other social networks in the US:

Demographic Composition % of Major Social Networks

Snapchat’s recent launch of an updated version of its mobile messaging platform with a richer range of features again put it in the spotlight and left many marketers wondering how they can get onboard. Dakota Shane Nunley does his bit to pour cold water on some of this excitement pointing out there are plenty of situations where Snapchat simply doesn’t make sense:

Snapchat is not for:

  1. Big brands looking to be “relatable” (unless those brands are buying space on Discover, Filters, or paying Influencers)
  2. Businesses not based around an individual or personality
  3. People without a social following elsewhere
  4. Most small to mi-sized businesses

The commercial launch of Oculus Rift has left many commentators wondering whether virtual reality is the next big thing. The platform’s hardware costs mean that it’s not going to challenge the smartphone for the foreseeable future but that will change over time. For a closer look, it’s worth having a read of Benedict Evans’ look at the different development paths and the relationship with its cousin, augmented reality:

If one can answer those questions, then AR has the potential to be a new computing platform in a way that VR cannot – AR can be with you everywhere whereas VR needs a room, and so AR could be the next universal computing platform after mobile. 

The transition from physical to digital distribution of music has been a far from smooth one with no shortage of musicians complaining that the shift to a streaming model is leaving them out in the cold. Figures from the International Federation of the Phonographic Industry suggest the industry may have now turned a corner with the fastest revenue growth since 1998 – whether that money reaches musicians remains to be seen:

Music sales growing at fastest rate since 1998

The Guardian is one of my go to news sources even if I am not always in sync with their view of the world and their drift to a more lifestyle format. Given this, I was disheartened to read Michael Wolff’s analysis of the organisation’s management under Alan Rusbridger which suggests it may face the same fate of other newspapers struggling to make the transition to a digital world:

Alan Rusbridger’s disciples consider him a visionary, but the former Guardian editor oversaw enormous losses, a huge fall in circulation and a ruinous faith in free content. Now, as he returns as chairman of its parent company, has his legacy of unchecked idealism condemned the iconic brand to terminal decline?

Right through my university career I identified as politically correct reflecting strongly held views on the sexism, racism and homophobia of various aspects of contemporary society. Given this, I’ve watched with considerable interest recent debates around political correctness particularly in American universities of today with commentators pointing to activists overreaching and the silencing of broader debates. Whilst I feel too far removed to give a considered judgement, Greg Lukianoff and Jonathan Haidt’s article in The Atlantic and Lauren Modery’s commentary on Medium gave me plenty of food for thought.

Tim Harford has become one of my favourite commentators, separating the truth from fiction in news reports via the More or Less radio show/podcast and his regular column in the Financial Times. A recently penned feature article profiles the distortion of statistics and outright lies by politicians looking to shore up support among the general public – something well worth reading as UK approaches the Brexit referendum and the US head towards their presidential elections:

Perhaps the lies aren’t the real enemy here. Lies can be refuted; liars can be exposed. But bullshit? Bullshit is a stickier problem. Bullshit corrodes the very idea that the truth is out there, waiting to be discovered by a careful mind. It undermines the notion that the truth matters. As Harry Frankfurt himself wrote, the bullshitter “does not reject the authority of the truth, as the liar does, and oppose himself to it. He pays no attention to it at all. By virtue of this, bullshit is a greater enemy of the truth than lies are.”

Whilst we’re on the subject of politics and its impacts, CEPR have had a look at the economic impacts of Brexit and it’s unsuprisingly not positive:

The economic consequences of leaving the EU will depend on what policies the UK adopts following Brexit. But lower trade due to reduced integration with EU countries is likely to cost the UK economy far more than is gained from lower contributions to the EU budget.

Even setting aside foreign investment, migration and the dynamic consequences of reduced trade, we estimate the effects of Brexit on trade and the UK’s contribution to the EU budget would be equivalent to a fall in income of between 1.3% and 2.6%. And once we include the long-run effects of Brexit on productivity, the decline in income increases to between 6.3% and 9.5%. Other possible political or economic benefits of Brexit, such as better regulation, would have to be very large to outweigh such losses.

Diet is one area where we’ve seen the media and public opinions shaped by evidence that often falls well short of gold standard in scientific research. Ian Leslie’s fascinating coverage of attitudes to sugar points to a situation where strong scientific wasn’t enough to change societal norms with personal politics getting in the way of the truth (see below). Unfortunately many countries are now paying the price with growing obesity rates:

It is a familiar complaint. By opening the gates of publishing to all, the internet has flattened hierarchies everywhere they exist. We no longer live in a world in which elites of accredited experts are able to dominate conversations about complex or contested matters. Politicians cannot rely on the aura of office to persuade, newspapers struggle to assert the superior integrity of their stories. It is not clear that this change is, overall, a boon for the public realm. But in areas where experts have a track record of getting it wrong, it is hard to see how it could be worse. If ever there was a case that an information democracy, even a very messy one, is preferable to an information oligarchy, then the history of nutrition advice is it.

There’s been growing awareness of discrimination faced by women in the workplace, reflected in the lack of women in leadership roles and the gender pay gap. Whilst a lot of attention focuses on the need for flexibility in the workplace and familial demands, research from ICEDR suggests that what thirtysomething women are really interested in is better pay:

The top 5 reasons people in their 30s leave companies

London has long had a character that set it apart from the rest of the UK both in terms of its international character and its economic output. One of the more recent consequences of this is the growing squeeze on poorer residents, reflected in the decline in the number of children eligible for free school meals as London’s central boroughs increasingly gentrify (see below). It’s no surprise that first time buyers are finding it increasingly hard to get on the property ladder compared to the rest of the country with regulation compounding the problem of population pressures:

Free school meal eligibilitySilicon Valley with its sea of office parks provides a rather different development model to London. Hunter Oatman-Stanford provides a fascinating look at the growth of this suburban corporate campus model as companies looked to flee inner cities. Unfortunately by sealing themselves off from the rest of society, businesses risk losing touch with the noisy and chaotic world they’re in many cases trying to serve:

While many modern office developments specifically include lounges or multipurpose zones where employees might randomly interact with one another, these spaces are entirely limited to office staff—with the aim that conversations would further relationships or spark ideas beneficial to the business. “I look at Apple’s Norman Foster building, and it’s 1952 all over again,” Mozingo says. “There’s nothing innovative about it. It’s a classic corporate estate from the 1950s, with a big block of parking. Meanwhile, Google is building another version of the office park with a swoopy roof and cool details—but it does nothing innovative.”

Online dating is reshaping the way people meet their flings / boyfriends / girlfriends / future partners. You can see this in Michael J. Rosenfeld and Reuben J. Thomas’s research from the US (see table below). The 2009 cut off date suggests the graph is substantially underreporting the current situation given the growing penetration of smartphones, services such as Tinder and growing social acceptance of online dating.  Alex Mayyasi reports on some of the consequences of this trend including a likely growth in assortative mating which is ultimately likely to undermine social mobility:

How straight couples met their partner

Whilst we’re on the subject of relationships, it’s worth reading Gay Talese’s account of one motel owner’s voyeurism. You might not learn a whole lot about human relationships, but it does makes for an entertaining read.

The featured image is a GoddoG mural from Bordeaux published in ekosystem.

 

The Changing Outdoor Advertising Landscape

The growth of the digital media  has brought considerable change to the media landscape.  Television has managed to more than hold its own over the last ten years but the newspaper and publishing sector has seen dramatic declines as consumers switch to free online alternatives. Unfortunately for the print industry, PWC’s forecasts point to  this trend continuing.

Sector growth in UK entertainment and media

Out-of-home advertising is another of the more traditional media formats that has managed to go against the trend of declining revenues. The UK out-of-home media sector has managed to continued the growth trend that followed the London Olympics.

Changes in technology have strengthened out-of-home advertising’s position, putting it in a comparatively strong position vis-a-vis other media channels. I’ll look at some of the key developments in the sector.

Outdoor joins the world of Big Data

The first development is the industry is taking a much more methodical approach to reporting on consumer’s exposure to outdoor media. In the past the outdoor sector’s reporting was a lot less robust than the equivalent for television and digital but initiatives such as Route in the UK and TAB Out of Home Ratings in the US are going a long way to address this.

Route  uses mobile technology to track a 28,000 person UK sample and understand the likelihood as to whether audiences will have seen  the outdoor assets (and not simply having been in proximity to it).

The system also enables the profiling of the poster by audience type  (demographics, behaviours and media consumption) rather than raw numbers, enabling more targeted approaches and facilitating cross media campaigns.

This reduces wastage in outdoor media campaigns and has put it in a more equal footing with other media channels where they have traditionally had a richer pool of consumer data to pull on.

Digitally Enriched Outdoor Advertising

The second development I would point to in out-of-home media sector is the growth in digital outdoor advertising.

Digital outdoor advertising when coupled with appropriate content management systems has given media owners the opportunity to serve different creative based on the  time of day as well as enabling a more rapid turnaround in creative.

The Sun’s Second Sight campaign provides an example of these forces at work, promoting the day’s headlines to commuters during the morning rush hour.

The Sun Second Sight

Digital formats also provide the opportunity to enrich creative executions. British Airway’s #lookup in Piccadilly Circus used a video advertising billboard to show pictures of a young child tracking a British Airways plane flying overhead with live flight information.

Interacting with Outdoor Advertising

The third development I would point to is the growing array of response channels now provided to out-of-home advertisers. Outdoor advertising has traditionally been associated with broadcast advertising, using bold imagery and sharp copy to catch consumers eye. Abbot Mead Vickers’ pioneering work on The Economist and TBWA/Chiat/Day’s work on Apple’s iPod Silhouettes campaign provides an interesting case study of how messages can resonate long after the creative was experienced.

The growing prevalence of mobile phones and more specifically  smartphone has changed the landscape for outdoor advertisers, giving the media space to have a life beyond the four corners of a billboard.  The use of SMS short codes, QR codes and NFC has provided advertisers with a means of engaging with consumers, provided the appropriate incentives (music downloads, games. discounts etc) are given.

Universal Pictures tried this with its outdoor campaign for Despicable Me 2 which saw users able to control elements of a digital billboard after synchronising their smartphone with users then able to share the results with their social networks.

Advertisers also have the opportunity to enrich their outdoor campaigns using augmented reality mobile apps such as Aurasma, Layar, Blippar and Vuforia. These enable the creation of a virtual layer on top of the outdoor creative,  providing the opportunity to inform and entertain

Whilst the results can proving exciting for consumers, the need to download a mobile app in the majority of cases often leaves these campaigns better suited to print or packaging based campaigns where the consumer has more time interacting with the creative.

SMS short codes, QR codes and NFC have all been held up as providing a more universal means of forging a channel with consumers but stumbling blocks remain with user experience, awareness and device compatibility issues.  The emergence of BLE enabled smartphones and beacon based technology raises the prospect of an improved channel for communicating with consumers, but it remains a largely unproven channel at this stage.

Analog Still has a Role

Digital outdoor revenues are experiencing strong growth but its important to remember that this is off a small base and traditional analog advertising still makes up the majority of outdoor revenues.  Analog outdoor poster campaigns still have a lot to offer advertisers and don’t need to worry about technology getting in the way of an impactful message.

Online advertising stalwart Google’s campaign promoting voice search for mobile is one of my outdoor favourites, showing what can be done when smart copy and media placement are paired together.

Pih-ka-di-lee sur-khus

Competition with the Mobile Screen

One of the interesting issues that the outdoor sector needs to address is the competition for consumer’s attention when out-of-the-home. Consumers are spending growing amounts of time with their mobile phones – something that’s particularly apparent in the UK.

Time Spent Using Phones Online Per Month

Whilst the growing penetration of smartphones provides a valuable means of bringing campaigns to life, it also provides a competitor for consumers attention when on the go.  Whilst this is arguably not the case for drivers, anyone who has walked down a major high street over the last year will have experienced  the perils of zombie texters.

For outdoor to be a success, the industry will need to ensure that outdoor advertising continues to entertain and inform rather than simply confronting and disrupts as people go about their daily lives.

The featured image is Sixe Paredes’s mural for Asphalte in Charleroi, Belgium and covered in StreetArtNews.

Taking a Mobile First Approach to Retail

I gave the following presentation recently on the application of Mobile First within a retail environment. You can find the accompanying text and references in the post below.

Slide 1: Cell Towers by Rebecca Rothfus

Slide 2:  There’s no escaping the fact that mobile is here as smartphone and tablet penetration increases.

Slide 3:  Mobile is now taking the lion’s share of growth in ecommerce sales with tablets performing strongly and sales from smartphones growing particularly fast.

Tipping point reached in e-Retail, as mobile now accounts for all online growth, IMRG, 2013,

Slide 4:  Whilst sales are on the increase, it’s also important to look at mobile as an important contributor to offline and online sales.

The growing influence of mobile in store, Deloitte, 2013,

Slide 5:  I’ve taken a broader view of mobile first, looking at how retailers can better enable their offering to mobile and tablet users. It’s important to note that the retail sector is not homogenous and different strategies are going to work better for different parts of the industry.

Slide 6:  Mobile and tablet devices are getting more and more capable, but their form factor provide some limitations. Among these are more limited keyboard, smaller screen size and less powerful process. This raises the need for a digital presence that’s built with these constraints in mind.

On top of this, further impetus is driven by Google’s search optimisation policy which is penalising websites with slow mobile load times.

2014: the mobile SEO timebomb, Econsultancy, 2013

Slide 7:  Despite mobile device’s technical limitations, consumers expect their mobile devices to deliver a similar level of performance to their desktop equivalent.

The World Has Gone Multi-Screen, Google, 2013

Slide 8: The different formats of mobiles, tablets and PCs provide different optimum use cases.

The mobile screen is great for snack sized content. Tablet screen is a more lean back medium which is great for consuming media. PCs on the other hand are often described as lean forward medium where the user is better orientated to interacting with the content.

But for mobile devices, it’s not all about limitations as they’re increasingly loaded with a range of sensors which give them capabilities not provided by your PC.

There is a real need for digital resources to be designed in a way that reflects these differences. 

From Smartphones to Tablets – The Changing Landscape, immobi, 2013

Slide 9:  Mobile First asks designers to ensure that their designs will work within these constraints and not simply provide a lesser experience.

This has seen the growth of adaptive and responsive web design and…

Slide 10:  The emergence of card based user design formats, all of which look to adapt readily to the different devices form factors.

Designing for mobile use also means legible typography, content that renders in both portrait and landscape, concise content, avoidance of plugins such as Flash, click to call functionality and the minimising of user text input.

Why cards are the future of the web, Intercom,

Slide 11:  It’s also important to remember it’s not simply about the visual appearance but also ensuring that consumers have an easy way to navigate to where they want. This means a user experience designed for navigating by touch and meta data designed to enable the mobile searcher to quickly get from A to B.

The Mobile Playbook, Google, 2013

Slide 12:  The constraints of mobile mobile devices also make payments more difficult than on your typical PC. So it’s well worth giving thought to services such as Amazon Payments and Paypal which reduce the obstacles to purchase for mobile users.

We’re also beginning to see new models of payments emerge with initiatives such as Starbucks’ Tweet a Coffee and the use of mobile messaging platforms to make payments.

The future of mobile payments, Medium,

2014: the year of ‘Buy with Google’? Econsultancy

Hugo Barra, Vice President, Xiaomi Global & Loic Le Meur, LeWeb, 2013

Social commerce, the influence of China and other tech trends for Southeast Asia in 2014, TheNextWeb,

Slide 13:  It’s also important to consider native apps. These typically enable a great degree of personalisation, can make better use of phones’ native functionality, can be used offline and are typically quicker to start up.

Ocado on the Go, Ocado

Slide 14:  Mobile apps also provide a means of getting consumers to engage with your brand outside of just the purchase process. Content that informs and or entertains has the opportunity to put multiple shop windows in front of the consumer. Examples of these include Tesco’s meal planner or for a more light hearted approach, American retailer Home Depot’s mobile game.

It’s important to stress given the increasingly crowded nature of the app ecosystem, you cannot adopt a build and they will come approach.

Tesco Food, iTunes,

Corso’s Cornhole Challenge, Home Depot, iTunes,

Home Depot tackles mobile gaming to score sales, Mobile Commerce Daily,

Slide 15:  Consumers are faced with an endless array of choices, so the content needs to be compelling and the app needs to work well or consumers will simply go elsewhere.

Any mobile app developed needs to be promoted as it’s rare for a resource to go viral without a bit of a foot up.

Mobile app based strategy is not without its hurdles given that development is platform specific leading to the exclusion of users on other platforms. 

As an example, Android has the greater penetration in the UK but research points to iOS users making greater use of their devices’ functionality including spending more online. There’s also evidence that points to different audience profiles for the different mobile platforms.

Finally, Android has a more fragmented environment with a much wider range of devices and operating systems complicating any app roll out.

Android and iOS Demographics In The US, AVC, 2013,

Alert: Mobile Traffic and Sales Surge on Christmas Day 2013, IBM, 2013

Building Android first, Kidogo,

App Store Distribution, Apple,

Dashboards, Android,

The horrible state of Android fragmentation, iDownloadBlog,

Slide 17:  Whilst the majority of social networks function on PCs, it’s often on mobiles and tablets where they come into their own, particularly when it comes to the sharing of content and it’s on these devices we’re seeing the strongest growth.

Mobile users are nearly twice as likely to share content on social networks as desktop users, Social Media Marketing: The ROI is not MIA, Mobile Marketing Watch, 2013

Facebook’s Monthly Active Users Up 23% to 1.11B; Daily Users Up 26% To 665M; Mobile MAUs Up 54% To 751M, TechCrunch, 2013,

Slide 18:  This raises the need to optimise social channels for mobile users.

Whilst many of the principles remain the same as for desktop, there is even greater emphasis on brevity of content and the use of strong imagery to catch the eye of users.

Mobile users are nearly twice as likely to share content on social networks as desktop users, Social Media Marketing: The ROI is not MIA, Mobile Marketing Watch, 2013

UK retailers make a splash on Twitter as Christmas nears, Twitter Advertising Blog, 2013,

See yourself in Times Sq. on #NYE! Twitter, https://twitter.com/MasterCard/status/416657951428857856

What You Need To Know About Facebook Mobile Ads, Entrepreneur, 2013,

Slide 19:  Instagram, Vine and Snapchat are all built on Mobile First principles and provide great opportunities to reach consumers in a way that takes the best advantage of the limited screen space of the mobile phone with paid and earned media campaigns.

Are mobile social ads overhyped? Mobile Marketer, 2013

Co-op claims retail ‘first’ with Snapchat campaign, Marketing, 2013

Nordstrom: Vine on Vine, Brands on Vine, 2013

Slide 20:  Pinterest has been a powerful generator of retail traffic with the platform offering a strong mobile presence. Driving traffic to Pinterest provides a great means of increasing consumer engagement with retailer’s brand and potentially to purchase. 

It’s also important to consider other opportunities in the social space with Polyvore in particular standing out with its ability to generate sales traffic.

Mobile users are nearly twice as likely to share content on social networks as desktop users, Social Media Marketing: The ROI is not MIA, Mobile Marketing Watch, 2013

One social network you’ve never heard of drives 20% of all social commerce, VentureBeat, 2013 ,

New iPad and iPhone Updates: Collections, Shop on iPad and More, Polyvore Blog,

Slide 22:  Despite the growing penetration of mobile and tablets, the media world has still to adjust their spend to reflect this change. 

At a basic level, adding the use of mobile media in conjunction with traditional advertising brings an incremental lift in marketing campaigns.

Study: Mobile Video Ads Complement TV Campaigns, AdColony, 2012

Slide 23:  But where the concept of cross media activity really comes into its own is where different media are used together, increasing consumers’ engagement with the message.

The World Has Gone Multi-Screen, Google, 2013,

Slide 24:  A good example of this is the use of augmented reality apps, bringing traditional static media to life and providing a response channel for consumers.

Tesco Homeplus ‘Virtual Supermarket’, Streething, 2011,

Layar Creator brings interactive augmented reality to print media, The Verge, 2012,

Track My Macca, Protein, 2013

Slide 25:  We are also seeing the integration of mobile functionality into television advertising that goes well beyond simply providing a URL or hashtag.

Twitter now provides the opportunity to target advertising at Twitter users who have identified themselves as watching a particular programme, Kia is asking users to play tennis against their television and mobile app Shazam is being used as a response channel for viewers. We’re likely to see a whole lot more of these initiatives going forward.

TV conversation targeting launches in the UK and US: Coming soon to Brazil, Canada, France, and Spain, Twitter Advertising Blog, 2013,

Kia Game On Tennis, Google Play,

Expedia drives mobile bookings via TV campaign, trip-a-day giveaway, Mobile Commerce Daily, 2013,

Slide 26:  Where it gets really exciting is when different digital screens are combined creating an altogether richer interactive experience. Google has been doing this with its Chrome Experiments, and Orange had a go at it with it’s Hello 2014 campaign that ran over New Year’s Eve.

This multiscreening approach offers real potential but doesn’t come without its own problems.

The varied nature of mobile devices brings technical challenges, although the rise of HTML5, WebGL and other technologies are proving important enablers. More generally, different media platforms have been developed on different principles and cross media platforms are requiring the development of common frameworks.

hello 2014, Orange,

Orange Rings in the New Year with a Dual-Screen Experience, Counsel, 2014

Slide 27:  One of the key differentiators of mobile is its portability, raising place as an important variable. Location based services provide retailers with the opportunity to help get consumers into physical stores and keep them returning.

To put this in perspective 57% of smartphone users look for information at least once a week and 25% of smartphone users look for information daily.

Google statistics quoted in Optimizing Your Local Presence for Mobile Search (and vice versa!), Distilled, 2013

Slide 28:  Retailers need to ensure their physical stores are findable, with locations in online map services, retailers own mobile properties and location based services such as Fourquare and Facebook Mobile.

Attract new customers with local ads on the Google Maps app, Inside AdWords, 2013,

Tesco Groceries, iTunes,

 Slide 29:  Building on the earlier location based services is the finding of products, services and information instore using third party resources such as Google maps or via owned media.

Let indoor Google Maps be your guide this holiday shopping season, Google Maps, 2012,

Lowe’s personalizes mobile shopping via in-store app features, Mobile Commerce Daily, 2013

Slide 30:  It’s also worth encouraging customers to check in via Foursquare and Facebook, providing the retailer with free publicity across the consumer’s social networks.

Location based marketing is seen by many as a godsend, offering the opportunity to reach consumers when it takes them the least effort to purchase. The problem is that close proximity alone is not necessarily a good indicator of whether the consumer would make a good prospect. The best results come when location is paired with other variables to give a robust means of targeting consumers. We also need to be acutely aware of overloading consumers with marketing messages which could lead to their abandonment of this channel.

Powerful yet simple to use, Foursquare for Business,

Slide 32:  Mobile is coming to play a significant role in the instore retail environment.

The growing influence of mobile in store, Deloitte, 2013,

Slide 33:  Mobile apps like Amazon’s Price Check have raised the spectre of showrooming, as ecommerce operators aim to turn bricks and mortar shops into the display stands for their own operations.

And there is plenty of evidence to support consumers using their mobiles to check prices.

The Mobile Playbook, Google, 2013

Slide 34:  But international research by the Columbia Business School points to consumers engaging in a broad range of activities instore and it’s not simply a case of try there and buy elsewhere.

Showrooming and the Rise of the Mobile-Assisted Shopper, Columbia Business School, 2013,

Slide 35:  The use of instore maps provides a means of getting consumers to your goods and services, but where smartphones really come into their own is enriching the retail environment. This has traditionally required the sometimes clumsy process of scanning QR codes but NFC and Bluetooth Low Engery Beacons are providing a more seamless experience for mobile users.

This provides smartphone users with the opportunity to find out further information about the store and its products and services. Like an Amazon user, an instore shopper has the potential to pull down consumer and expert reviews, product demonstration videos and comparisons whilst keeping within the retailers’s digital and physical environment.

Apple’s iBeacon and NFC, DigitalLab, 2013,

Slide 36: We are also seeing smartphones used to deliver offers, promotions and rewards. A lot of noise is currently being made about the introduction of beacon based programmes enabling users to receive location specific deals, discounts and recommendations.

What is shopBeacon?   shopkick

Cartwheel by Target, Target

Macy’s Dips Toes in Brave New Marketing World, TechNewsWorld, 2013

Slide 37:  Mobile payments is another area we are seeing a significant change, offering consumers an easier way to purchase instore whilst avoiding unnecessary queues.

There are a range of solutions currently on offer, with mobile payment providers such as Google Wallet, Paypal, Masterpass and Square but it’s in the area of retailer specific solutions that we’re seeing the greatest success.

When considering mobile payments and beacon based initiatives, it’s also important to think about how any instore promotions will be integrated with retailer’s loyalty programmes and discounting campaigns which are also increasingly mobile enabled.

Like the use of instore beacons, mobile payments is very much a nascent field in which we’re seeing a rapid evolution of best practice.

Apple Store, iTunes,

KFC’s Mobile Shopping App sees 90pc of users placing orders via mobile, Mobile Commerce Daily, 2013,

KFC Fasttrack, iTunes

Walmart, iTunes,

2014: the year of ‘Buy with Google’? Econsultancy, 2014

I’m Still Waiting for My Phone to Become My Wallet, New York Times, 2013

Target leverages Facebook to bolster downloads for new mobile deals app, Mobile Commerce Daily, 2013

Slide 39:  The above quote comes from the New York Times paints a rather unwelcoming picture for the bricks and mortar retailer, but it’s not all bad. Mobile has the real potential to strengthen the hands of retailers with a physical presence. A more positive note was recently sung by IBM who have touted buying local as one of the key forecasted trends over the next five years driven by the opportunities of a more digital enriched shopping experience.

eBay’s Strategy for Taking On Amazon, New York Times, 2013

Buying local will beat online, IBM, 2013