Tag Archives: Mac

Economics of the Future of Mobile

Recently I was asked to write an opinion piece for the magazine Marketing, capturing my thoughts on the future of mobile marketing which has always been touted as a large and emerging opportunity, but has yet failed to gain critical mass and more importantly material advertiser support.  Below is an extract of the article.

Marketing Magazine - The Future of Mobile isn't Mobile

THE FUTURE OF MOBILE ISN’T MOBILE

Mobile Marketing has been the long-held, future of advertising. A promise that everyone has got excited about, but few delivered on. I’ve seen numerous reports from industry experts and market analysts, who’ve produced endless business cases and revenue models that never seem to gain any traction anywhere but in a spreadsheet.

Many mobile-based businesses start and fail even before they’ve worked out who they are, where they fit and more importantly what the consumer need and engagement point is. The promise of mobile has been built on a nascent industry that hasn’t really found its feet so far. It begs the question, why have so many people been so wrong for so long? In my humble opinion we’ve all been considering the problem, or opportunity in the wrong context.

The future of mobile isn’t “mobile”. Building yet another disconnected platform, which operates singularly, is the problem. The real question isn’t about what is mobile, it is more about what connectivity and ubiquitous consumer centric computing experiences hold.

The Black Swan of the mobile industry came from an outlier that radically changed the face of what we understood the market to be, Apple. Like it or not Steve Jobs and the Apple crew decided to rewrite the rulebook, grounded in a consumer truth & desire for simplicity when they launched the iPhone.

iPhone

iPhone

The iPhone was one simple device that allowed consumers to do almost everything they could on a desktop or laptop, with the benefits of a compact device that had GPS functionality that could fit perfectly into your pocket at the cost of a normal mobile contract. The iPhone ran basically the same operating system as a Mac, it synced seamlessly with all your business and personal applications wirelessly and it was just easy. Combine this with creating a relatively open software platform that developers could deploy a range of consumer centric applications on, with an open software market place where developers could reach a global audience and monetize their ideas rapidly. Hey presto the face and future of mobile changed irreversibly.

The biggest change Apple brought to the mobile industry was they established and built sustainable consumer behaviour, where for the first time consumers could use mobile devices in an entertaining and meaningful way.  Almost everyone I know now uses the SAME applications and services on their desktop as they do on their mobile. Tweeting, Facebooking, Googleing, blogging, emailing, taking and sharing photos, reading PDF’s, listening to and downloading music have all become a ubiquitous experience, regardless of the device or location. The iPhone really enabled the “Social Web”, combine this with location-based mobile applications, and the face of the mobile game has changed forever, why? Because Apple rewrote the rulebook.

Apple changed the clunky face of mobile marketing and e-commerce. They did what Microsoft, Symbian, Blackberry, Nokia, Sony Ericsson, HTC et al couldn’t do. All of the previous industry incumbents were all operating based on a set of rules designed by engineers and analysts that had a vested interest in developing a disparate market, not a connected market. Apple innovated that last 10% of the mobile market and that innovation has had a 200% impact on the mobile industry as we know it.

Before you start to think this is a plug for Apple, have a look at the ripple effect across the entire mobile industry. Nokia has launched “me too” devices with their own music store, HTC have launched devices with similar interfaces and capabilities, Blackberry has started to support their developer community with a “me too” application store. The rate of change in mobile is increasing exponentially, all because an outlier rewrote the rules.

Apple's App Store

Apple's App Store

So where is the advertising world in all of this though? The advertising community both creative and media is still way behind. Ad Networks are still trying to sell on a silly impression based model (CPM) through serving non-targeted, dumb ad’s that have little relevance to a consumers experience that are at best annoying. Creative agencies and their digital heads have not yet woken up to the fact that it would be a better use of clients funds to build a simple mobile site, designed for a handheld device that delivers consumer utility rather than fight for a full flash and video site that can’t be viewed on a mobile device or indexed in a search engine. It is time to catch up people, understand the consumer and find the right intersection point.

The future isn’t mobile; it is ubiquity of experience across any device that delivers consumer utility and meaningful brand engagement.

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The Economics of Online Music

Short & sweet today. I’ve been talking with a new on-line music portal www.bandit.fm being pioneered by Sony BMG here in Australia. Downstream are looking at potentially partnering with Sony to help build an audience for their new service.

Now anyone that knows me, knows how much of an Apple fan I am. I think anything Apple touches, generally turns to gold. Apple have successfully become the trail blazer in almost every product category (think iMac, iPhone, iPod, Mac Books of all types and descriptions). They’ve also revolutionised the consumer software market with easy to use intuitive applications (think iPhoto, iMovie, iDVD and before anyone cans me the whole iWork suite, awesome productivity suite for $99! Let’s also not forget iPhone apps – just brilliant way to build and scale your mobile platform).To date no brand really comes close to Apple’s innovation and foresight.

But when it comes to music, I think there is a true challenger that could really take it to them. Sony have developed what I believe is the BEST music site / portal on the market today.

New iTunes killer

New iTunes killer

I think it is the best for the following reasons:

  1. Great content – they’ve developed the site intuitively with a mixture of channels, artist specific pages, video, news feeds etc. You can engage in specific genres like R&B, Hip-Hop, Rock, Pop or you can navigate to specific content rich artist pages like N.E.R.D, John Legend, Duffy etc etc.
  2. Great site build – mixture of indexable HTML & interactive flash elements, URL structures, title tages, H1 tags etc
  3. Downloads are easy after simple registration process
  4. Music & videos are DRM free
  5. Great experience – you can listen to a whole song or view a video in high quality full screen mode vs. Apple’s 30 second preview function
  6. Not constrained by an app like iTunes – you can access it from any browse
  7. Easy content network integration (PPC) into YouTube & Myspace. They are “THE PLACE” to view music related content.
Specific Music Genre Channels

Specific Music Genre Channels

Usher on Bandit.fm

Usher on Bandit.fm

The site will work very, very well for Paid Search / PPC campaigns, the site structure allows you to deep link to exact content as well as being able to achieve great quality scores which impacts highly on economical bid prices and as content is more compelling than iTunes, I believe with a much higher conversion process too.

The site also has very high potential to work very very well for Social Media, as the site structure let’s consumers be very specific about their Tweets, blog postings etc and create specific interest in genre based content communities. One area they could approve is allowing their content to be aggregated and syndicated on other sites, think embedding audio files or video files to MySpace or Facebook profile pages with pre & post roll Bandit.fm ads promoting their service – very economical way to drive new subscriptions, downloads or cross sell new artists / releases / albums.

So the product I think is truely world class, if this is release 1.0 I can’t wait for new versions updates. Bandit.FM can successfully take on iTunes and Apple in the market they really pioneered and commercialised (on-line music), and hopefully give consumers a compelling reason (safety – no viruses / Trojans, reliability ets) to BUY music rather that steal it from sites like Limewire.com. They only have to carve out small incremental percentages of the on-line global market to create real value & high return for their pioneering investment in on-line music. Congrats to the whole team at Sony BMG!

If you are into music give it a go.