Thought Starters

I have recently taken on full time work on top of other commitments, so I’m finding my time to blog is less than I have had in the past. Find below content recently that has caught my attention.

I’ve seen my own consumption of podcasts increase sharply over the last year, so it’s great to see NY Magazine profile this burgeoning media format:

“Radio has been saved the disruption that has happened to other media. It’s been frozen in time for 50 years,” Blumberg said. “Now that everyone is walking around with a radio in their pocket at all times, and now that all cars are going to be connected, the form can flourish again.”

Recent figures point to Facebook as doing a great job in muscling in on Youtube’s role as host of online video according to Comscore figures:

Online Video Comscore Benedict Evan’s Mobile is Eating the World presentation provides a valuable look at how mobile is coming to dominate the consumer technology landscape:

Evans’ view is further backed up by John Lewis whose recently released retail report points to mobile overtaking desktop for online traffic:

Mobile vs PC

There’s a looming battle in the US in the mobile payments space between Apple Pay and the retailer backed CurrentC. Reports that CurrentC has been hacked before it has fully launched and reports of the system’s poor user experience suggest it might be a one horse race:

When it comes to actually paying, the system gets even more cumbersome. CurrentC describes the process on its support site: You need to select a “Pay with CurrentC” option on the register, activate your phone, open the CurrentC app, enter a four-digit passcode, press the “Pay” button, “either scan the Secure Paycode that the cashier presents (default) or press the Show button at the bottom of your screen to allow the cashier to scan your Secure Paycode,” select the account you want to pay with, and then press a “Pay Now” button.

Whilst mobile payments is in its relative infancy at the moment, the indifferent attitude that many millennials have to cash points to this space as being increasingly important in years to come:

Currency_Figure

Ben Thompson looks at the media sector, analysing which elements are extracting the most value, drawing an analogy with the iPhone and its components manufacturers:

The Smiling Curve for publishing

John Kirk takes a critical look at market research and points to it as providing a much better source of insights in enhancing existing products rather than providing guidance on new product categories:

We’re very, very good at explaining why things won’t work. We’re not nearly as good at imagining creative new ways things might work.

A look at the quality of life index by The Economist point to a rapidly narrowing gap between rich, emerging and poor countries:

Quality of Life The Economist takes a valuable look at Iran pointing to a country that is becoming less radical and more secular:

The regime may remain suspicious of the West, and drone on about seeding revolutions in oppressor countries, but the revolutionary fervour and drab conformism have gone. Iran is desperate to trade with whomever will buy its oil. Globalisation trumps puritanism even here.

I am a strong believer in the view that climate change is one of the major issues that needs to be addressed now if we’re to have a real chance of living comfortably on this planet going forward. The following graph from Bloomberg gives me some hope although the inconsistency of supply and issues of storage means that we’re not likely to see a wholesale switch to solar in the immediate future:

Solar Energy If you’ve ever wondered how hard it would be to pick up another European language, the following visualisation should provide a useful guide, found on Etymologikon:

LanguageI recently discovered the Earth View from Google Maps Chrome extension which provides a view of Earth each time you open a new tab – certainly beats the traditional blank screen:

Google Earth

The featured image is GoddoG’s piece from the Festival K-live in Sète, France.

Thought Starters: Content that has got me thinking 17

A lot of noise is being made about the rapid growth of ecommerce and the  effect this is having on bricks and mortar retail. Forrester analyst Sucharita Mulpuru provides an alternative view,  pointing to the continuing growth in the traditional retail sector and the need to distinguish between retailers making the right (and wrong) decisions.

Geoffrey Moore gives a rather sobering view on the effect that technology is having on America’s middle class and suggests some potential avenues to address this.

Marc Andreessen is interviewed in the Washington Post providing commentary on the impact of revelations on NSA surveillance, net neutrality and bitcoin. His commentary on the latter is particularly interesting and marks out why Andreessen Horowitz are investing heavily in the sector.

E-commerce would’ve gotten built on top of this, instead of getting built on top of the credit card network. We knew we were missing this; we just didn’t know what it was. There is no reason on earth for anybody to be on the Internet today to be typing in a credit card number to buy something. It’s insane, because — which is why you have all these security problems, the Target hack and all this crazy…. And these high fees, this high fraud rate. It doesn’t make sense online to have a payment mechanism that requires you to hand over your credentials to make a payment. That’s just an invitation to fraud and identity theft. It’s just stupid.

But we didn’t have the better way of doing it. So we didn’t know what else to do, and now we have the better way of doing it. Now, it’s going to take time. We’re quite confident that when we’re sitting here in 20 years, we’ll be talking about Bitcoin the way we talk about the Internet today. We just need time for it to play out.

Moving customers over to a subscription model of payments may provide companies with a valuable regular income stream but Brian S Hall points out that this is   not necessarily in the consumer’s best interests.

Timothy B Lee looks at the New York Times’s Innovation report which identifies new disruptive players, but also suggests that the organisation like many incumbents is poorly placed to meet the challenge of new entrants.

Game Oven recently wrote a piece looking at the difficulties in writing software for Android given the fragmented hardware and software environment. Benedict Evans built on this post , pointing to the problems of Android fragmentation but also suggesting that the movement to a more cloud based environment may alleviate many of the current problems associated with developing for Android.

Deloitte has released its latest Media Consumer report looking at changes in media consumption patterns in the UK. Among the areas covered are device ownership, television consumption, trust in journalism, use of social media, cinema viewing, gaming and streaming of music.

Percentage of households that have at least one of these devices

 Julie Ask looks at the role of disintermediaries in an increasingly mobile centred environment, with social media, mapping, entertainment, commerce and payments growing in strategic importance.

Today, a third crop of platforms are laying the groundwork to step into the powerful position of “owning the customer,” by serving them in mobile moments. Consumers expect to be able to get what they want in their immediate context and moment of need. They will reach for their phone for information and services. The issue is, most brands aren’’t yet there for their customers in this moment, challenged to even get customers to visit their mobile website or download the brand’s mobile app.

That’s where the platforms that dominate minutes of use, such as popular messaging and social media apps, come into play. It’s not hard to imagine a future where a small set of highly contextual and curated disintermediaries offer consumers a portal to the universe of services on mobile devices. Companies should consider the possibility of a future where their access to consumers is through this small set of disintermediaries

JWT Intelligence has a look at the mobile payments sector which is encumbered by the chicken and egg scenario. Consumers won’t use a service if they’re not familiar with it but retailers won’t invest in a platform if it’s not widely adopted. Efforts are being made to increase adoption and Apple is a potentially disruptive player waiting in the wings.

A growing amount of attention has been given to the mobile messaging sector lately, particularly in light of Facebook’s recent acquisition of WhatsApp. Line and WeChat are similar (provide text and photo messaging but different from the more traditional mobile messaging players  with Mark Bivens and Jerry Yang comparing the two Asian powerhouses on Bivens’ blog.

I am a strong believer that we will see some version of enhanced eyewear make inroads in the future  but Matt Lake’s review points to  Google Glass being some way from the medium’s end goal.

There’s been a lot of talk lately of a cooling in tablet sales with commentators suggesting that the smartphone can more than adequately fulfill many of the use cases. Providing a counterpoint to these suggestions is research from Flurry which point to growing usage by tablet owners.

Tablet usage

Matthew Yglesias looks critically at the content that Facebook looks to share among its users following Director of Product at Facebook’s recent rant about the state of the media.

Relationship status is one of those sensitive areas that users aren’t always willing to make public on Facebook. In an attempt to overcome consumers’ reluctance (and provide another data source), Facebook is providing consumers with the opportunity to directly ask fellow users what their current relationship status is.

Relationship Status

Facebook has added song and television show identification (à la Shazam) to its iOS and Android app, providing the opportunity to further enrich its collection of consumer data.

Facebook Music and TV Id

Whilst digital technologies such as HTML5 and WebGL are enabling a richer array of experiences online, the majority of online spend is still very much on direct response advertising in the US according to eMarketer figures.

Digital Ad Spending ShareThe featured image is Reliefs by Evgeniy Dikson

 

Trends to Watch: Mobile enabled shopping

I was asked to have a look at some of the trends that I feel are likely to have a considerable impact on the consumer landscape. This is the first in the series, drawing on my earlier presentation on mobile retail.

Mobile enabled shopping

The growth of smartphones has provided ecommerce operators with the opportunity to encroach on the space of bricks and mortar retailers with apps like Amazon’s Price Check providing a presence in physical stores as well as at consumers’ desktop. In the words of Street Fight, we’re moving towards the following environment:

“Discover anywhere, transact anywhere, and fulfil anywhere.”

But smartphones are also enabling bricks and mortar retailers to provide a more enriched instore experience for consumers. We saw the beginnings of this with the introduction of QR codes, enabling consumers to access product information, reviews and comparisons from their handset and expanding the selection of products beyond what is physically available instore.

The introduction of Bluetooth Low Energy (BLE) beacons has made the process of bringing information to the attention of consumers a whole lot easier, with information and alerts triggered by consumers’ location within the store after downloading the relevant app.

Smartphones are also offering to enrich loyalty and discounting campaigns, making the process of rewarding more tangible and providing offers to consumers that they can more readily take up.

Whilst we’re still to see the arrival of the much-touted mobile wallet, we have seen retailers begin to integrate payments into their own mobile apps, providing an additional means of purchase, which can prove particularly valuable for regular customers.

These initiatives provide retailers with a rich seam of data with which to better understand their audience and the opportunity to provide a more personalised response to consumers when combined with an effective data management strategy.

Macy’s & Shopkick: Making consumers feel welcome

Macy’s has partnered with Shopkick in the deployment of shopBeacon (BLE) transmitters. Consumers who have downloaded the Shopkick app will be welcomed by the app when entering participating branches and then shown location-specific deals, discounts, recommendations and rewards, without having to open the app.

Cartwheel by Target: Bringing discounting into the 21st Century

Target offers consumers the ability to browse for discounts online, add the offers to the Cartwheel mobile app (and share with friends via Facebook) and then redeem the offers at the checkout. Target must be doing something right as it came at as the most browsed retailer on mobile in the US.

Cartwheel by TargetKFC Fasttrack: Getting what you want asap

 KFC is piloting the Fasttrack app in the UK, enables consumers to place an order and get priority service when they arrive and check in at the participating branch. The app makes it easier to order by remembering favourite items and payment details.  For the participating branches, this has meant cutting down waiting and ordering time by 60-70%, sounds like a win-win situation.

KFC FastTrack

 

 

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