Mobile Fix – June 14

Apple WWDC 

Back in the 1980s when Coca Cola launched New Coke then quickly withdrew it in the face of consumer reaction, Pepsi ran an ad in the New York Times showing this letter; saying “The other guy just blinked”

Hearing Tim Cook Phil Schiller say “Can’t innovate anymore, my ass,” on stage at the Apple developer conference we thought of that line.

Clearly the criticism is getting to Apple. The Samsung ads seem to be working – in at least they are rattling the Apple team. And a lot of the new features for iOS7 seem to be inspired by other apps and by Android.

With iOS7 having little real substance we wonder if this is a similar moment for Apple? The redesign seems to be insufficient to appease the critics and perhaps enough to discomfort users.

The much trailed iTunes radio looks good and leverages the huge amount of data that iTunes gives Apple. With 8000 tracks burned into in my iTunes, Apple are better able to serve up music I will like than Amazon Google or Pandora. But essentially it’s a version of Pandora.

Whilst there will clearly be a new device announced to coincide its the release of ios7 in September, there seems to be a real loss of momentum at Apple. And with new Android devices due from Motorola and others (probably at a much lower price point) the new iPhone is going to have to be pretty special to regain momentum

The significant change in user experience will be a key issue. Years ago we worked with Motorola when their key problem was the fact most people were very familiar with how a Nokia worked, so were reluctant to start and earn a new operations system

Come September when your experience on your current iPhone changes, making the shift to a Samsung or other Android may not seem such a leap.

Search

We keep saying we expect Apple to switch search away from Google at some point. It’s the one piece of Google still baked into the iPhone (now that Google Maps and YouTube are no longer pre installed ) and we know Bing (and Yahoo) would love to get the search volume that the iPhone delivers

So we were fascinated to see that search in Siri now defaults to Bing. Will the default for Safari on ios7 still be Google or will they switch the 3 choices (Bing, Google and Yahoo) to alphabetical order with Bing as the default?

Whilst on search, one of the best sessions at the econsultancy Future of Digital Marketing event we spoke at last week, was on search. Neil Perkin has done a good write up on this and the deck from Will Critchlow is worth a read.

Mapping

Apple maps didn’t get a mention at the WWDC event, but other news dealt a further blow. Google are to pay more than $1bn for Waze who Apple were rumoured to be buying last year for $500m. A key reason for Apples interest is that Waze supply data to Apple Maps – and that must be in some jeopardy now.

Money

Not everything at Google is going well. There some well documented problems with Google Wallet and this interview with a rival gets into some of the issues. His company Braintree is a big player in digital payments, handling money for Airbnb, Fab, Angry Birds and many more.

One technology in the money space that isn’t doing so well is NFC. For some time now the promise of iPhone support has kept NFC as the next big thing. But in talking about AirDrop the Apple team seemed very uninterested in NFC  and it seems unlikely that it is going to feature in the next Apple device.

Quick Reads

Smart thinking on mobile strategy – its all about quality and frequency

Weve – the UK partnership between the mobile operators is extending their offering to ads in mobile apps. Having built a strong business in permission SMS, they will shortly start using their data to target ads within 3rd party apps. With good relationships with media agencies they are well placed to have real impact, but is their data any better than the other ad networks they will be bidding against? They talk of 17 million people agreeing that data on their location, gender, age, device, district address etc can be used –we wonder how many of those know they have given this permission?

Talking of data the FT have a good look at how valuable your data is with a smart interactive tool – ours is worth just 42 cents.

We all know the old notion of the purchase funnel doesn’t make much            sense anymore. The McKinsey rethink on the Decision Journey seems more realistic, but this HBR article argues that, with mobile, people are shopping constantly.

The hashtag is an idea who’s time has come and Facebook now concedes and enables them.

As the ad world schlepp to Cannes we are seeing some of the promotional ideas. Deutsch are supplying late night pizza (…us neither) but our friends at Clearchannel are adding some value by facilitating a debate on Twitter –which  then culminates in a mural on an outdoor site.

Finally we get some good feedback on Fix, so we guess most readers enjoy it. Can we ask a favour, then?

The Drum is running an online poll to find the most influential people in mobile and, given there is no such thing as bad publicity, we’d appreciate it if you voted for me.

The list has all the usual subjects – many of whom are Fix subscribers – so you can support others too.

Thanks.

Mobile Fix – June 7

Amazon Advertising

With revenues of $38billion Google is now thought to be the biggest media owner in the world. The competition is likely to come from other GAFA players with Facebook growing very quickly – especially in mobile – but they are a long way behind.  Amazon are also a growing threat – as their unique insight into peoples buying habits theoretically allows for very granular targeting.

New forecasts suggest that Amazon will take $835m in ad revenue this year – up from just $400m in 2011.

This shouldn’t cause too many sleepless nights at Google HQ, but the very different business models do suggest Amazon can trouble Google in the future.

Because Amazon profit from the actual sales of goods, they can treat the advertising in a different way to Google – and as they could close the loop between advertising and actual sales they could be an attractive alternative for brands struggling with attribution. Of course Google hope their wallet will one day give them similar data on actual sales.

We see the Tesco investment in media as part of a similar strategy. Persuading brands to allocate marketing funds to Tesco TV as part of the deal for distribution could be attractive to both sides. Although we know that many (most?) CPG companies fear retailers getting more control over what brands do to promote their products. The biggest expenditure of many CPG brands isn’t media spend as is often believed – it’s the funds they give to Tesco, Walmart, Carrefour etc to fund BOGOFs and other instore promotions.

And this is why there is so much interest in mobile shopping list tools and coupons. Brands would love to find a way to use mobile to build relationships with their customers – and retailers are keen to thwart this. Could we see a mobile revival of the Project Jigsaw initiative in the UK in the 90s – where Unilever, Cadbury and Kimberly Clark combined their CRM efforts to offer coupons by direct mail?

Amazon Delivers

The other part of the ecommerce business where Google and Amazon are going head to head is delivery. Google (and eBay) are trialing same day delivery in San Francisco and Amazon are expanding their warehouses across the US and here in the UK. Now they have announced plans to expand their grocery delivery service in the US adding Los Angeles and San Francisco to their current Seattle service.

This is seen as madness by some, but it looks like Amazon could use the low profit grocery business to subside daily delivery for non grocery items. Interestingly one of the sources suggested that the roll out will include some non US markets. Given the persistent rumours that Ocado is a possible acquisition target for Amazon, that could be interesting. Would using the ubiquitous Ocado vans to deliver Amazon orders push Ocado finally into profitability?

And given the very long term view that Amazon take, would they care as long as it cements their position as the dominant player in ecommerce? Despite their amazing revenue growth they seem quite uninterested in profits – which makes them a dangerous competitor to anyone with a more traditional affection for ROI.

This week saw Ocado announce they are to expand into non food areas with a standalone website targeting petowners and soon, toys, beauty and homeware sites. They are also allowing other retailers to use their platform and delivery service – we understand a very good Italian wine specialist will be one of the first.

This is a very good look at how Amazon is using delivery innovation to grow their business.

Making digital efficient

Boston Consulting Group have taken a look at the inefficiencies most agencies have in the way they approach digital advertising. It’s a frightening picture – which we certainly recognise. Someone once said that digital advertising is the only billion dollar cottage industry as it is (was?) largely managed on excel spreadsheets.

BCG obviously recommends embracing technology to solve this problem. Given the report was commissioned by Google we wonder if they are about to ride to the rescue with some sort of platform for agencies to use? Bolting together DoubleClick and Google Analytics with some of the insight tools built into Adwords would be a good start. And Google have the most to gain as the biggest player. Maybe the fruit of their partnership with Publicis could about to be shared.

newTV

Channel 4 are to launch an iPad app so they have a proprietary 2 screen service. We remain convinced that all broadcasters will want to develop their own 2screen service so they keep control and keep all the ad revenue. Zeebox is building strong partnerships with broadcasters around the world and Shazam is doing well with some of the others in a narrower way. But the real competition is Twitter, which is where consumers go to share their views on TV.

Like a lot of the competition the C4 app incorporates Twitter, but we wonder whether on air promotion can pull a significant audience away from their usual Twitter client.

Quick Reads

As agencies wind up for Cannes, the shortlist for the innovations Lion has been published. We have covered a few of these projects in the past and we will look at some more in coming weeks

Our piece on product placement last week didn’t really get into the way tech is adding new possibilities.  MirriAd are doing some interesting stuff – particularly in Asia – and a Finish company Supponor demonstrated its approach in the England Brazil game the other day.

NFC isn’t ready for prime time as this new research shows;

“With the exception of a few projects in Asia-Pacific, there are only three NFC mobile wallet services in the world that have an effective addressable market of more than 100,000 people”

As responsive design grows in popularity, various people are developing responsive advertising solutions. We see this becoming really important in the next 12 months.

An interesting look at Mobile search

PWC have released an interesting report on the Entertainment and Media Industry. These are some of the key points.

More Tech company M&A in the marketing space. Salesforce have paid $2.5billion for email/CRM company ExactTarget. Forrester think it’s a very significant deal and likely to lead to even more consolidation.

Book of the week

Dave Trott is one of the advertising legends and his blog is always worth reading. So this collection of blog posts is our book of the week. Predatory Thinking proves what we have always thought; great creatives are usually great strategists too.

Finally a couple of good articles that are well worth reading;

VC Chris Dixon with smart thinking around mobile and the way app stores are putting off some entrepreneurs.

Our friend Rory Sutherland has written a good piece on marketing for Wired.

 

 

Mobile Fix – May 31 – Mary Meeker, Social, Mobile Money, Product Placement & more

Mary Meeker

And she’s back. Mary Meeker has shared new data on what is happening on the global internet. This is the video of her presenting the deck – she talks even faster than I do – and you can read the deck here.

Lots to digest but a couple of things jumped out. Obviously the data shows mobile is still growing very quickly. Video is growing so fast. And the section on China is really interesting. Especially that QR codes are huge in China – has no-one told them they are really uncool now?

We’ll be digging deeper in the data in the next few days and we’ll tweet the good stuff we find.

Social

Whilst there is rightly some questioning of the business sense of chasing likes and followers, we are seeing social mature as a strategic discipline for brands,

Some are starting to organise themselves in new ways to better capture the potential value of social. We mentioned Nestle last week and now we read Mastercard have a social command centre.

As well as disrupting marketing social is driving new business models too. We met Oliver Luckett when he was with Disney and his new business is blending social with the entertainment industry. The social profile of artists is becoming a key factor in their careers; whilst her acting ability was a factor in Rihanna being given a role on Battleships, we suspect her 30m Twitter followers probably helped too.

This interview with Oliver gets into the thinking of social and as well as some great examples, there is this killer quote;

“If you are sitting in the boardroom and someone says to you here is our 6 month strategy and here’s how it is going to work… They are lying to you. They don’t have any idea…”

Our friends at Dachis have been amongst the pioneers of professionalizing social with tools that turn the data into insight. Here they look at how the sort of cultural relevance that Oliver talks about has worked for H&M through their use of Beyonce.

Product Placement

Ever since soap operas arrived, brands have been looking for ways to get their product associated with content that their customers enjoy. Picking up on how social is being used to promote content, we think there is going to be lots of innovation around integrating product in modern marketing.

I ran a very early product placement test for Kenco Coffee in the early 90s – as an example of what could be done we had the new packaging featured in Coronation Street – Alf Roberts held the jar clearly as he chatted in the corner shop for around 50 seconds.

It was very impressive but we couldn’t see any real commercial value so didn’t pursue it. But the morning after it ran around a dozen people at the client mentioned they had seen it – a good example of Cocktail Party Syndrome.

And some old research into the Coke sponsorship of American Idol shows similar effect; when people were asked if they had noticed the product placement of Coke in the show nearly everyone said no – but ad tracking showed Coke ads perform much better in breaks in the show than when they ran elsewhere.

The new Great Gatsby film was significantly funded through brand integration and whilst the social element wasn’t as high profile as it could have been, this looks like the type of partnership we will see more of.

This is a good look at a more traditional product placement deal for Ford in New Girl.

Will we see more of this thinking in mobile and social? Definitely

Always on

As part of the new Google Think insights there is a good piece on Constant Connectivity – the idea that people are using multiple screens so wherever they are they are constantly connected.

This multi screen multi channel approach makes perfect sense and informs much of our current thinking on projects. But it relies on being able to get a connection. And as we know that isn’t always possible in the worlds biggest Cities– even with 4G rolling out and increasingly ubiquitous free WiFi.

But Google have predicted that by the end of the decade everyone on Earth will be connected. How’s that going to work?

The GoogleX labs think that Blimps are the answer – tethering balloons in the stratosphere to ’beam’ down broadband. As a way to bring in more potential customers for the range of Google products and services this makes sense – like their investment in fiber in Kansas and Austin and free Wifi in Manhattan. And owning the infrastructure as Africa evolves into a major economic power makes good sense too. Google is very active in Africa and looking to have be involved in a range of ways to provide the internet infrastructure 

Mobile Money

Yet another Square like mobile money service is getting traction with investors. Sumup has raised money from American Express and Groupon.

The Economist has a good look at the success of mobile money in Africa . Nothing we haven’t covered before but a good summary.

And NFC seems to be having a few hiccups – it seems that the relatively few NFC enabled readers in retailers have been debiting cards whilst they are still in the customers wallets. We were told that the Oyster system on the tube didn’t take off at first as people were unsure whether their card had worked. So they introduced the beep when your card was read and the rest is history.

NFC payments – whether by card or phone – need some service design to give users confidence around when a transaction has taken place

Future

Next week we are speaking at the eConsultancy Future of Digital Marketing event, and preparing the deck has surfaced lots of interesting thinking around wearable devices – glasses, watches and wristbands like the FuelBand and UP.

This look at the secret Google X lab is really interesting – even if most of the projects are well outside what you would call mobile. Pilotless planes that fly in circles to power wind turbines that send power to the ground, anyone?

And a key member of the Motorola team is looking at electronic tattoos that could replace passwords – and a password you swallow ; the pill is swallowed and the acid in your stomach powers a battery so it emits an 18 bit signal – so your whole body is the password

Quick Reads

Motorola are developing the next Nexus – to be called MotoX. It sounds very cool and continues the Google strategy of making Apple look like the luxury end of the market. It will be much cheaper than the iPhone5 so we can expect a similar price point to the Nexus 4, which is around half the price of an iPhone and arguably just as good.

As we start to think of the Mobile Majority – that time soon when most of your users will be on mobile, this is a good look at the mobile only user.

More good data from Ben Evans – showing that many of the people using Facebook are also using separate messenger apps like WhatsApp.

P&G are digger deeper on ROI

One of the problems with digital is that we have made it complicated. Too many people talk technology rather than ideas, and this does confuse and or scare people. This is a good deck to have to hand as it defines lots of buzzwords you might get thrown at you.

Finally…. are our friends at GAFA risking hubris? With all the debate around tax, it seems politicians are all ready to point the finger at these global players. As the FT points out these people could be the next public enemies.

And this piece on the plans by each to build amazing HQ buildings suggests they could be risking a Leeds United goldfish moment.

Apple is building a huge circular building that they liken to a spaceship. Facebook have got the Bilbao Guggenheim architect Frank Gehry building them a new HQ with a park on the roof. Google plans 9 buildings that lean in, so none of the thousands of workers are more than a two and half minute walk away from each other. And Amazon has just asked for permission to build 3 glass spheres to connect 3 new skyscrapers.

We love great architecture and it seems fitting that todays Industry titans commission great buildings. But the danger  – apart from the accusations of hubris – is that they become white elephants – just as the amazing building modernist genius Eero Saarinen built for Bell Labs has become.

As well as the eConsultancy event I am speaking at Sapient Nitro next week and chairing the IAA Mobile event too – as ever do come and say hello if you are there.

 

 

 

 

 

 

 

 

Help Wanted

Skratchmyback is a start-up enterprise, backed by two successful entrepreneurs, aiming to bring communities of people together to help each other. It’s an early mover in the collaborative consumption movement

The website is up and running and the service works on desktop and mobile. We have ran a closed beta test with friends and family and used the feedback to refine the proposition. And we have now had a couple of completed skratchs (jobs done)

As we get ready to move to an open beta, we need some help.

We are looking for an energetic, intelligent, personable, confident and entrepreneurial graduate who would be willing to work as an intern for a 3 month trial, following which a permanent position and equity will be offered subject to fully satisfactory performance. The successful candidate will be a self-starter, but on the job coaching will be provided by the two backers. This is a once in a lifetime opportunity for the right candidate, to leap into a leading edge industry and fast track into business.

No previous business experience is needed : this is all about the right aptitude.

If you think you can make a real contribution, then get in touch.

Mobile Fix – May 24

Getting Digital Right

Dan Ho of ad agency Weiden & Kennedy has written a great piece on Tyranny of Digital advertising – essentially blaming media agencies for pursuing formats that reach a gazillion eyeballs if they happen to look at it. He goes on to point out that the more interesting things in marketing are around making products and services – something that traditional agencies don’t really get. Well worth a read.

Now, we get some flak for our constant riff around clients now wanting more than agencies can/do deliver. To some friends (many of whom work in traditional agencies ) it looks like a new biz tactic..

But maybe more people will pay attention now adland bible Campaign is saying Why ‘ad agencies’ could be on brink of extinction.

The danger to ad agencies is that if they can’t convince clients that they offer a shortcut to such thinking, then brands will find it elsewhere.

Digital is of course the key issue here. As Dan Ho points out the response to digital has often been to mould analogue thinking to make it fit digital – such as the banner. The other week we heard a senior marketer lament that her traditional agency was only interested in making big budget TV ads – that weren’t going to be shared by anyone – whilst her digital agency didn’t have the insight to do more than push the latest online fad.

Still not convinced? Accenture have published a fascinating report into marketers thinking – called Turbulence for the CMO. With lots of data on what CMOs think the issues are its an interesting read.

The recommendations are also very interesting. CMOs need to

Fundamentally change the marketing operating model.

Build new skills internally.

Get the right set of partners.

Drive digital orientation throughout the enterprise.

That doesn’t sound too comforting if you are a traditional agency – media, creative or even many digital agencies.

There are some brands who are well equipped for this new climate and  the Economist has taken a look at some people doing it well – including Diageo and Nestle. And Heineken have shared their plans to move to real time marketing centred on mobile.

We believe this is an Alice In Wonderland moment for marketing – clients and agencies.  Do you take the Red pill and go off and immerse yourself in the adventure of modern digital marketing – or take the Blue pill and stick with the world you understand?

Whilst you decide, Accenture continue to add to their capabilities, with another $300 acquisition; digital marketing firm Acquity. Adobe also added to their marketing capabilities this week, buying app makers Thumb.

Mobile

At Mobile Engage last week Richard Eyre makes a very eloquent case for mobile as the catalyst for marketing, rather than just another channel on then bottom of the media plan. It’s a 15 minute video, but it is well worth watching as Richard makes the case for brands needing to be trusted, as that is the only way to get the permission from customers, that will unlock the value of mobile. We also loved his quote urging brands to make their sites mobile friendly;

Mobile fluidity isn’t creativity. Its hygiene

Forrester have a new way of emphasizing the importance of mobile – the Mobile Mind Shift Index where they use data from their Technographics study to see how mobile ready people are. They blend data on the devices owned, the frequency they use them and the diversity of locations.

The results are surprising. Across Europe the average score is 25 out of 100. As with nearly all Forrester data its terribly complicated but our take is that, despite all the momentum in mobile, there is still huge upside as mobile crosses the chasm and goes truly mainstream

Twitter

As US research shows Twitter is getting great traction with young people – use amongst online teens in the US has jumped from 16% to 24% in the last year – they are pushing new tools for brands.

Amplify enables broadcasters to share key video clips on Twitter, with brands able to facilitate the content through a pre roll and letterbox branding around the clip. Along with more focus on 2 screen Twitter is building a symbiotic relationship with TV, and according to a Mondelez tweet, it seems to work;

“When we combine Twitter with our advertising on TV, we see twice the effectiveness. This stuff works.” @boughb at #Twitter4Brands

Mobile Money

Following the Google announcement that US users can make payments by email, Square have announced a similar service. With more banks mimicking Barclays Ping by rolling out payment by SMS in the UK, it’s clear that payments are being disrupted.

A smart banking analyst told us a while bank that payments aren’t really about banking – it’s just logistics, albeit focused on money.

iZettle seems to be doing well in the UK – in the last few days we have seen Hackneys’ finest cupcake vendor using one and you can pay for your Shiatsu massage with one too. But Square doesn’t seem to be getting any closer – they have chosen Japan as their first overseas market.

An Australian ex banker thinks we are just at the start of banking disruption, making the point that the network effect of these peer to peer payments methods will make them ubiquitous.

Big Data

We draw a Venn diagram when discussing big data. One circle is people who talk about Big Data and the other is people who actually know about Big Data. There isn’t too much overlap.

Deloittes have published a useful paper on the subject and McKinsey have a good piece on using data in FMCG companies. In the Richard Eyre talk mentioned above, he makes the argument that we don’t want Big Data, we want clever data. And David Edelman of McKinsey reminds us of the value of insight and intuition when using data.

This look at Google data centres shows just what is behind big data.

Tumblr sells out

The Yahoo purchase of Tumblr is going to be interesting to watch. Is it another case of a old(ish) player buying something new in an attempt to recapture youth? News Corp ended up regretting the MySpace purchase and AOL had a similar experience with Bebo.

But Yahoo does seem to have a better take on the world with Marissa Mayer so this may be different. But all those extra young eyeballs are only valuable if they can be sold to advertisers. So we think the future of native advertising will be made or broken on Tumblr.

Their most recent sales deck suggests that advertisers are very welcome – it remains to be seen if users feel the same way. And Yahoo will need to be careful to keep brands well away from all the porn on Tumblr. (Someone suggested that Yahoo was now a major player in porn – but the only people not making any money out of it.)

Quick reads

The new xBox could be a significant player in newTV

One of the many announcements at Google I/O last week concerned new features in Google Analytics. This could be a big deal as it appears to track users across devices – the holy grail for many digital marketers

One thing that didn’t get mentioned last week is that the plethora of photo functionality launched included a very clever photo search. Using the visual recognition tech that powers Google Goggles search can find anything in your photos – the best example shows a search for snakes pulling up 7 untagged photos showing snakes.

The research which shows the popularity of Twitter amongst teens is worth a look as it appears teenagers are using Facebook somewhat reluctantly.

McKinsey reports on 12 disruptive technologies with the potential to deliver $33 trillion in economic value. And Mobile Internet is the biggest

Finally……if you want to ruin someones life (get them fired or divorced) introduce them to DOTS – a highly addictive mobile game. Consider yourself warned.

Mobile Fix – May 17 – Google i/o, Viral, Paywalls and more

Google I/O

The Google developer conference was the big news this week. Last year we saw Google Glass wearing sky divers and everyone there was put on the list to get Glass. This year we had a 3 hour keynote packed with new features. Oh, and everyone there this year got a Pixel laptop.

With so much news it’s inevitable some of the announcements won’t get the attention they deserve. So over the coming weeks we will probably dig into some further.

The Music streaming service where Google takes on Spotify (and takes a lead over Apple) has got lots of press as has the news that voice search is now available on the desktop for Chrome users. Expect lots of office tension as people start talking to their PCs.

Google+ got – as you would expect – lots of love. A new look, awesome photo tools and Hangouts is now available as a standalone app for iOS, Android and Chrome. Maps is getting a makeover – all the folk at Apple striving to get parity with Google Maps now have a longer To Do list.

We suspect the ability to send money via gmail could be a sleeper – it’s a great way to get people using a Google wallet. Only available in the US for now – and for desktop only – it’s a way to go, but it is an interesting start.

On the hardware front a Nexus remix of the Samsung Galaxy S4 was announced – arguable they best hardware with the best software.

And CEO Larry Page closed with a Q&A, making the point;

“In every story I read about Google, it’s about us versus some other company or some stupid thing,” he said. “I don’t find that very interesting. We should be building great things that don’t exist. Being negative is not how we make progress.”

This is a pretty comprehensive list of what was announced.

Prior to the event Sundar Pichai – the new head of Android and Chrome – talked about the dual OS strategy and explaining that;

It’s a world of multiple screens, smart displays, with tons of low-cost computing, with big sensors built into devices. At Google we ask how to bring together something seamless and beautiful and intuitive across all these screens.

And underlining how long it can take for I/O initiatives to get out, this is a good look at Google Glass and where it could go.

Viral & Daft Punk

The subtle marketing from Daft Punk over the past months is a great example of using social (our friend Glyn has written a good description here) and it has worked incredibly well. One question is whether the campaign can have any longevity or are social driven campaigns inevitably short lived?

Harlem Shake seems a long time ago now, but this piece on how the meme got traction – and the role of ‘professionals’ – is good reading. And this look at the latest meme – Ryan Gosling won’t eat his cereal – gives some more clues on how this stuff works. But now that a big brand has got involved we expect Mr Goslings people may have something to say.

Publishing

With the expected announcement that the Sun is moving behind a paywall, this is an interesting look at how the Washington Post and the New York Times deal with digital. The porous paywall of the NYT has driven up their subscriber revenues, with digital subscription revenues of $100m – and the Washington Post is belatedly following.

Whilst paying for ‘quality’ journalism is becoming the norm in the US, its less clear that this trend will take off in the UK and the Sun is the first redtop to try.

But the Sun is now run by a former Sky exec and he has brought some of his experience to bear, paying £30m for the internet and mobile rights to the Premier League. And by bundling this into what will be called Sun+ he may have a chance. Talking about the paywall move Mike Darcey said;

“…We did not buy mobile and internet [football] rights in order to sell mobile and internet rights. We bought them to integrate into an existing product and enhance that existing product.”

Emerging markets

Following our look last week at some of the innovation in mobile around the world we were interested to see that ecommerce is starting to take off on Africa. In Nigeria you can get same day delivery of groceries; BuyCommonThings has partnered with P&G to become the ‘ocado of Nigeria. They just need a mobile website. Konga is more of an Amazon and does have a mobile site. Jumia is another key player – run by the German Rocket Internet group.

More on this topic in this FT feature. And some really good stats about mobile usage across India, Indonesia, Vietnam and more here.

Quick Reads

This is a good look at the 3 German brothers that have built a digital empire (including Jumia mentioned above) ‘inspired’ by US start ups.  This makes the point that’s it is execution where you find the value.

An article in Harvard Business Review on apps suggests most people download around 40 apps and use about15.

Few people use social media better than Guy Kawasaki. Here he shares the tools and processes he uses to manage all this. Some good tips..

New data from the Office of National Statistics prompts headlines that 7 million people have never used the Internet. We’re more interested in the other side of the story; that 43million people in the UK are now online.

Le iTax – France is to tax smartphones, tablets and just about anything else that connects to the internet, to fund culture

Finally …the emerging data driven world of exchanges is still below the radar of many. But within those that do get it there is a lot of ignorance and suspicion as its not quite clear what everyone’s motive is. This article is a good summary of the current situation.

But to put the whole thing in perspective this interactive visualization of the adtech ecosystem is required viewing. Showing exactly what happens as banner is served it describes all the players involved over just a few milliseconds. This is why the MadMen MathMen cliché gets aired so often.

 

And just like the financial services industry got changed by their Big Bang this one is going to reengineer marketing and advertising. Do you have the right partners to deal with this brave new world?

 

 

 

 

 

Mobile Fix – May 10

The future is already here – it’s just not evenly distributed

Whilst the pace of change of GAFA and the huge scale remains a key issue for any brand, its still worth looking around the world to see how people are using mobile and social in a simpler way.

The geeks amongst you will recognise the William Gibson quote – and nowhere is it truer than in mobile.

Take the Unilever campaign for Wheel detergent in India. Promoted on radio and by outbound calls people were encouraged to call a 0800 number, then hang up. They were called back and hear an entertaining clip from a well known comedian and his endorsement of the product. 16 million calls drove higher brands awareness and a spike in sales. Watch this video for the full story.

Still in India, Intuit has developed a new mobile service for farmers that gives free advice and information on agricultural issues by SMS. For example, helping the farmer make more money through telling them crop prices at local markets – so they can go to see at the one paying more. And Intuit make money by selling advertising on the service.

In Africa IBM are using mobile data (looking at where SMS messages are sent from) to map bus services and look for ways of improving the routes. A similar service in the West is Waze where 47 million drivers share their location and traffic news – and it seems Facebook are about to buy them.

Back in India, an IT company called Mastek have taken the traffic idea one step further. To help make the company buses that pick up employees more efficient, they developed a featurephone app so the driver of each bus has their phone on the dashboard.  This means their system can poll the app for exact location of the bus at any time and send a SMS to the employees waiting for it, when it is 10 minutes away then 5 minutes away. There is a big opportunity in apps that work on featurephones, but this tends to be overlooked as developers focus on smartphones. Back in 2005 we worked on the market entry of Refresh Mobile – now better known as Mippin – and did a lot with java apps. There is a lot of friction in developing for phones with small memories and requiring lots of accepts to install etc – but it can be done.

Of course GAFA is active in these emerging markets. Facebook have a team focused on partnerships with operators to encourage Facebook usage whatever sort of device you have. Google are pushing NFC payments in Kenya and their very interesting Trader platform – where you can buy and sell just about anything – works on SMS in Uganda, Nigeria and Ghana.

“It’s the medium of future and the future has already arrived”

Eric Schmidt has caused a bit of controversy this week by implying YouTube has already crushed regular TV. We’re not sure he actually said that; and we do have some experience of journalists misquoting you to make their story hang together better – especially when Google is involved.

For us the two key quotes were Eric Schmidt saying;

“It’s not a replacement for something that we know,” “It’s a new thing that we have to think about, to program, to curate and build new platforms.”

And Jeffrey Katzenberg of Dreamworks saying;

“This is a whole new form of content, content delivery and content consumption,” “It’s the medium of the future and the future has already arrived.”

This NYT video on the video upfronts shows how seriously people like AOL, Yahoo and Hulu etc take this . OK, Sarah Jessica Parker presenting a series on ballet isn’t much of a threat to the Village or Broadchurch but it compares well to the typical programming of those channels not on the first page of the Sky EPG. The key thing with all these new opportunities is can they get the scale advertisers like

The Head of Fox this week agreed that things are changing and the broadcasters need to adapt;

…broadcast TV remained “the dominant form of event television” but was stuck with “historical practices” such as creating hundreds of pilots for series which never air. Broadcasters needed to target investments to fewer shows, he added

As Amazon have entered the world of Pilots it is clear that everyone now see the web as a video medium rather than the text one we have grown accustomed to, because of bandwidth restrictions. Looking at the Amazon initiative the LA Times puts it well;

..what makes the Amazon pilots impressive is not that they create something radically new but that they do “real TV” so well. Their true message is that there are new Big Guns in town, and that, just as broadcast TV lost much of its market share to cable, both are going to have to make room for the major players of digital television — not the diffuse, if sometimes brilliant voices of the medium’s shoestring pioneer age, but rather highly professional ones, well-funded and well-positioned to own the Web-based future

The VC community also gets this opportunity. Mark Suster – who just hired the former head of Endemol – summarises the argument well;

  • People watch 5.3 hours of TV / day. They read less than 30 minutes. You can’t change media consumption patterns easily. The future of the Internet is video. Full stop.
  • Production costs have fallen more than 90%. Distribution costs have, too.  This is classic “Innovator’s Dilemma” market conditions.
  • My estimate is that the top 5 YouTube networks will do > $200 million net revenue in 2013 (after Google’s share)
  • These same top networks – Maker, Machinima, Zefr, FullScreen, BigFrame – and the like have create nearly 1,000 new tech / media jobs in LA in the past 3 years alone.

The ad industry already gets this to some extent – just look at the YouTube leader board where ads are getting 10s of millions of views – through paid and organic views. And an event we spoke at last week, organised by Brainient, underscored how well developed the ecosystem is for video on both the desktop and mobile – although the creative community have yet to really step up.

Branded Content  – back to the future

We have talked about how The Hire from BMW set the bar for branded content some 10 years ago and now see that Jaguar have taken some inspiration for their latest launch – even using the same production company.

Their film for the new F type is interesting but doesn’t seem to have got much traction yet – 67k views on YouTube after 3 weeks doesn’t seem too impressive, but we don’t know how many views there have been through the Jaguar website.

Still it doesn’t quite have the panache of the BMW films. Our favourite Beat the Devil, featured one of our heroes James Brown – who would have been 80 this week – and was directed by Tony Scott. Well worth 10 minutes of your time.

Content is the hot topic amongst brands and the response amongst agencies has been quick. This US blog lists out some of the responses by US agencies. A key quote is

Before a brand hires an agency for content marketing, they should ask to see the work they’re using on their own behalf.

Given you’ve chosen to read our content, we’d like to think we get this space well and we’re looking to do more for our clients. It’s clear that modern digital marketing has to deliver in content, social and mobile to be effective.

Mobile & OOH

After a big consultancy project around this topic recently, we were very interested in the excellent Mediatel event on this subject this week. It is clear there is a real synergy here. We think things like the ClearChannel 10,000 bus shelters across the UK with NFC and QR built in should drive innovation in this space.

But we believe the real opportunity with mobile and DOOH is the ability to create campaigns that match supermarket catchment areas. Few brands are stocked in all supermarkets – and even within, say, Tesco products may be in a limited set of stores. The ability to target people who can actually buy the brand advertised should be a big boost.

But we wonder whether the big retailers could play a part in making this happen. As both Tesco, Amazon and others start to play in content and start to use their customer data to help brands reach consumers the game changes. Tesco want the advertising on their developing media platform to drive sales in Tesco – and they will start to expect brands that want to be stocked to invest in these new opportunities.  But given it will take some time to build their own audience, why wouldn’t they buy DOOH around their stores and resell it to brands – with mobile geo fencing as well?

Sound farfetched? Well how about Target building a tool with Facebook to offer deals that can only be redeemed instore.

We will see retailers collaborate with all sorts of media owners to better drive sales. Interesting times for SoLoMo and for retail.

Quick Reads

45% of Groupon transactions are now mobile

This is a good look at the fascinating work done by MIT – robo cars, air gardens, bionic men and lego.

And the MIT view of breakthrough technologies for 2013 has just been published.

The iPhone is big in Japan

We use LinkedIn a lot as a way to keep connected to people – but as Ben Evans points out it needs some work.

Half of brands still don’t have a mobile optimised site. And of those who do, too many still have a rubbish one. In our experience the quickest ROI is building a really good mobile optimised site and unlocking the huge value in mobile search.

Book of the week

Another brand new book – but pretty much everything Brian Solis writes is worth reading.

So our book if the week this week is What’s the Future of Business by Brian Solis

Finally…..More evidence of the annexation of marketing by tech and consulting firms. The very smart service design firm Fjord has been bought by Accenture. The AdAge headline Agencies, Look Out: Accenture’s Invading Your Turf in a Bigger Way Than Ever is slightly hysterical but there is something significant here.

A couple of weeks ago we quoted Antony Mayfield and his Firestarter deck where he said the challenge for agencies was become McKinsey faster than McKinsey becomes you. It looks like we need to get a move on.

Not convinced? How about this then; BMW have appointed Accenture to manage their global digital presence, all their digital marketing and the agencies. And in the US Amazon have given Accenture the job of managing the review of their media buying account.

Can agencies get past their old business model and be credible partners to brands in the age of GAFA? It requires taking digital much more seriously than most currently do.

Mobile Fix – May 3

Facebook results  

Facebook released their latest financial results this week and their stellar growth continues. They now have 751m mobile users – up 54% year on year. And mobile revenues were 30% of the total – higher than expected. One interesting question came up on Twitter – what does this definition cover? The results deck says;

The number of MAUs, DAUs, and mobile MAUs do not include Instagram users unless such users would otherwise qualify as MAUs, DAUs, and mobile MAUs based on activity that is shared back to Facebook.

So what if I log into Spotify etc using my Facebook identity? Does that make me a mobile user or do I actually have to visit the site or use the app? Can anyone clarify this?

A report from Spruce looks into why advertisers are so pleased with Facebook – lower rates, higher clicks and more inventory.

One analyst was a little picky, pointing out that mobile ads in newsfeed meant the shift to mobile is money they were getting already. But most media owners would love to be that successful in monetising mobile users; very few come close to matching their share of revenue to share of eyeballs. The FT do better than most yet have 34% of their traffic on mobile but just 12% of ad revenue.

This is a strange failing on the part of media buyers. What logic says we want to reach readers of the Mail, Metro and Guardian, but only the ones that read it on newsprint? Leaf through any newspaper and you see ads on every page – go to the mobile or tablet edition and there is a distinct lack of advertisers. And those that ads that have made the transition to the tablet tend to be the press ad, without any interaction or call to action.

Media brands with a strong identity have the opportunity to sell their audience across screens and the ones that do this well will prosper. Otherwise GAFA will soak up all that ad revenue as they embrace an omnichannel approach.

Creativity in social

Facebook have awarded brands for good work across their platform. There are some great examples here of how brands are going beyond the like and using social to deliver big ideas in a lightweight manner that makes the most of social.

The man in charge of creative solutions at Facebook is Mark D’Arcy – who joined from Time Warner where he was in charge of helping advertisers make the most of that (largely) old media business. In a good interview he explains what Facebook mean by lightweight and talks of 4 main requirements for succeeding in social;

Respect Peoples time

Respect Peoples information

Design Lightweight experiences

Be Creative at the speed of Culture

This speed and quick touch approach makes sense whatever marketing channels you are using – as adman Trevor Beattie says, you have to embrace impatience.

Some agencies are evolving the way they work and moving towards a newsroom model – but this throws up some issues with the relationship with clients. Do you need to get everything approved and risk slowing down the cycle or do you have a broad remit agreed around the brand character in social and the brand voice, so you can execute within that without constant approvals?

One of the clients doing social and mobile well is Mondelez (formerly known as Kraft) Their lead on Global Media and Consumer Engagement is B Bonin Bough and his interview at the FT Conference last week is a master class in modern marketing. A must watch as he talks about the work they do for Oreo – a winner in the Facebook awards – and others.

Now all this can seem a little trendy for some clients; doing cat videos may work for Purina but is it relevant for most brands? Well McKinsey think so. They have just published some very smart thinking around On Demand Marketing where they describe;

Digital marketing is about to enter more challenging territory. Building on the vast increase in consumer power brought on by the digital age, marketing is headed toward being on demand—not just always “on,” but also always relevant, responsive to the consumer’s desire for marketing that cuts through the noise with pinpoint delivery.

Do you have agency partners that can help you with that? Or is putting the latest TVC on YouTube the extent of their digital thinking. Or even worse are you being sold Vine strategies – maybe with a cat involved?

McKinsey talk about how one CPG brand is raising their game and how;

…structural and talent changes led the company to realize that it needed to reshuffle its agency relationships, replacing a single brand-and-ad agency with two agencies—one for brand programs, the other for digital and CRM direct marketing. The company also brought more media and digital analytics in-house.

Google Glass

As the lucky few start to receive their Google Glasses we’re getting a better understanding of how people use them. This unboxing story is a detailed look at the product.

As you might expect there are different views. Tech blogger Robert Scoble has written a great piece on Google Glass – saying

I will never live a day of my life from now on without it (or a competitor). It’s that significant.

UK Tech writer Mike Butcher has a different view. He thinks it’s this eras segway.

Our favourite VC and visionary Marc Andreessen is very excited about Glasses though;

The other thing I can’t stop talking about is Google Glass. Google Glass could be transformative for the entire industry

Our view? It obviously depends on the price point – but we expect them to be priced for the mass market – and it is still early days. Consider how much smartphones have evolved in the 6 years since the iPhone launched; when the consumer version of Glasses arrives it will be at a lower price and with a higher spec – plus all the innovations that the developers will bring.

Quick Reads

Rumours around Apple continue – design genius Jonathan Ives is now focused on software and his sweeping changes may slow down product releases – and possibly iOS7

Starbucks report they have 10 million active users of their apps and they handle around 4 million mobile transactions every week.

Google are promoting their Full Value of Mobile tool – which attempts to calculate the value of getting mobile right – with a nice video showing mobile use cases.

The Pentagon are embracing smartphones – until now they have been strictly Blackberry but Apple and Samsung devices are now approved – which should convince some of the other laggard companies that its time to ditch the BB. We still find that many of the people who just don’t get mobile have a Blackberry welded into their hand. Sticking with a Blackberry is like sticking with Black and White TV.

A good piece on the FT mobile success story includes the quote

Most of the savvy developers have switched to HTML5, even if they’re still delivering those apps in a native wrapper. I don’t think it will be long before a lot of those apps start emerging as pure HTML5 apps in browsers

We mentioned that chat app Whatsapp now has 200m users and is bigger than Twitter. Some of the Asian players in this space are huge too – a Japanese app called Line is at 150m users  – up from 100m at the start of the year. The FT suggest that these apps will have double the volume of SMS by the year end – a big blow for operators who earn around $120bn from text messages

Ajaz Ahmed of AKQA has written a good piece on how new technology is best matched with old fashioned values to create real value for people.

Finally…..The huge changes in business driven by GAFA are an issue for any brand. Getting a strategy for managing how your business profits from this new world is a priority, but the old fashioned ivory tower approach doesn’t work.

As McKinsey puts it;

To deliver these new experiences, executive teams must rethink the role and structure of the marketing organization and how it engages with other functions. The changes are likely to cut deeply, transforming the way companies manage campaigns and communities, measure performance, provide customer support, and interact with outside agencies.

And a new book from Dachis picks up on the need for experimentation to validate strategy;

Emergent strategy requires that the company continually generate a broad range of hypotheses, testing them in small-scale experiments, and feeding the more successful experiments while pruning the failed ones

This is an area we are increasingly focused on, so happy to chat with people who may need help.

Mobile Fix – April 26

Amazon on the Box

Whilst we have given lots of attention to Google and Facebook in recent weeks, we haven’t had too much from Amazon to think about.

But there is lots going on here. Amazon has hired quite a few smart sales people here in the UK recently – paying well above the competition seemingly. Their ambitions in advertising have been well discussed, with their data their main advantage. As Razorfish put it;

“In today’s marketing world, data is gold and Amazon is Fort Knox,”

We remain convinced that a priority for Amazon will be to get brands to use the data Amazon has for targeting, with the intention to drive sales on Amazon. A digital equivalent to Tesco or Walmart encouraging brands to invest in instore promotions (Gondola ends of BOGOF) that drives instore sales –so both the retailer and the brand benefit. For Amazon the whole web is their store.

And another tenet of their vertical stack strategy has emerged with stories that they plan to launch a set top box enabling them to stream video. Given their investment in Lovefilm and their move into commissioning programming , controlling distribution on TV is just as crucial as controlling distribution on mobile devices. So just as the Kindle is the Amazon response to the iPod, iPhone and iPad so this could be their response to Apple TV.

GAFA need to be present throughout the value chain of digital content and services if they are to avoid being pushed out. As Amazon saw Apple develop into a major retailer of digital music with iTunes, they have to fight back and TV is the next arena.

One other rumoured move is Amazon physical stores. You can build a reasonably compelling case why Aamzon might consider buying the HMV stores to act as a hub for their business – but it’s not that convincing – yet.

So this recruitment ad for an Amazon store at Westfield probably isn’t kosher. It has now been taken down and we suspect it is more likely a scam to get people to divulge the details of their Amazon accounts; a clever attempt to get credit card details.

(stop press  – their latest results show sales up 22% at $16bn in the first quarter of this year)

Retail 

Talking of retail we chaired the afternoon sessions at the excellent Mobile Retail Summit this week and learnt lots from presentations by supersmart retailers Schuh, Pizza Express and Morrisons Kiddicare.

One interesting theme was that QR codes are still alive and kicking; Kiddicare use them instore and a Waitrose client in the audience shared her experience was that they were incredibly effective both in store and in advertising. I asked about the TV ads from a couple of years ago where they featured QR codes  and was told they had worked well – the third most clicked code of the whole campaign was the TV ad.

The Pizza Express client was less convinced about QR though – they have found them to be really ineffective. Maybe we’ll learn more when the 10000 adshels with both QR codes and NFC tags start to get traction with advertisers.

Pizza Express are a real pioneer with mobile and we learnt that their app has had 500k downloads and has around 200k users a month. Yet 80% of their mobile traffic is via their mobile optimised site. And since they made free WiFi available in all their stores they have 600k users each month – spending an average of 38 minutes connected. So now they are running instagram and Twitter promotions instore and getting good engagement.

What is refreshing about this brand is they have followed their gut – based on their good understanding of their customers – and it’s working really well. What are you waiting for?

Morrisons focused on how they use mobile in their Kiddicare stores and again we saw some great thinking driven by customer insight – and an approach built around testing and learning. As Morrisons get closer to launching online grocery shopping (with an Ocado partnership rumoured to be close) they are using Kiddicare as an R&D Lab.. They describe themselves as a tech company that happens to sell baby stuff.

The two key take outs for us were around testing and learning and that mobile is one part of a multi channel approach – something that Googles Nikesh Arora is pushing as they seek to break down the silos around each device.

But the truth is we won’t build the future of advertising device by device. We need to learn to look at these devices as a way of understanding the context in which consumers are looking for information. Real people use these newest devices — phones, tablets, “phablets”, touch-screen laptops and Web-enabled TVs — to connect with each other, shop, navigate the world, watch videos, play games, and take pictures. It’s how, when, and why people use their devices we should be paying attention to and less so the devices themselves.

We increasingly see mobile as a key part of an overall digital strategy but find that knowledge and expertise across both areas is rare.

Twitter

So following the news last week of keyword targeting coming to Twitter and the launch of Twitter Music, we got some more news this week with the announcement of a major advertising partnership between media agency Starcom Mediavest and Twitter valued at “hundreds of millions of dollars over several years”.

Some question quite why agencies announce major deals and what the implications are for those agency clients; will twitter feature heavily in future media plans because its the right thing or because they need to meet the agency deal?

Given the deal was announced through the FT rather than AdAge or Campaign and on the morning of the Publicis results (Publicis is the Starcom holding company) suggests PR was an issue.

Especially as Publicis made a big thing about their focus on digital, inviting comparison with rivals WPP. Given Martin Sorrell stated he sees Twitter as a PR medium rather than an advertising one, it feels there is some point scoring going on.

So it’s not a huge surprise that Sorrell was talking up the WPP digital push this week too. He claims that shortly Google will surpass News Group to be the biggest media customer of WPP. As we’ve point out before, this sounds quite impressive until your realize that the combined WPP spend with Google, Facebook and Twitter is just 3% of their overall media spend. To be fair Sorrell was warning the traditional media owners on the same panel they were being complacent. You can watch the whole session from the FT Media conference with Sorrell, and the CEOs of Bertelsmann and Time Warner here.

For more on how digital marketing is shaping up the FT have published some good articles this week summed up well with this quite from the CEO of Razorfish

 “In the last 50 years, we have been working in black and white,” . “What technology does is it brings you new talent and it brings you into colour.” 

And from the Omnicom head of Digital;

“You are seeing the industry really shift fast right now, the budgets are moving really quickly to digital. But we’ve only just scratched the surface.”

We live in interesting times but you have to wonder whether traditional agencies are well placed to advise their clients about these changes.

The Social first generation

Some fascinating new research from Deloitte suggests that the UK population is characterised by the under 24s who are social first in their internet usage whilst over 25s are search first.

They also show the usage of various social platforms across early adopters, early majority, late majority and laggards. No surprise that Tumblr and Pinterest score most heavily on early adopters. And Facebook too performs best amongst this group with nearly 70% using Facebook. But Facebook also has around 60% of laggards too. Truly the ITV of social

Book of the week

We haven’t actually read this one yet as it is brand new, but it feels like a safe one to recommend.  Eric Schmidt gets it and his thinking about the future of people nations and business has to be interesting. And the recommendations of the book support this; if Tony Blair, Bill Clinton, Henry Kissinger, Madeline Albright, Mayor Bloomberg and the former head of the CIA all say read it, who are we to argue?

So our book if the week this week is The New Digital Age: Reshaping the Future of People, Nations and Business by Eric Schmidt and Jared Cohen

Quick Reads

We keynoted a Yahoo internal conference this week and as well as sensing the renewed energy and momentum of the company heard some fascinating research. Whilst looking at tablet usage amongst consumers Yahoo have seen that they embrace more of the senses than other media. The thing we were excited by was their view that sound has a role to play in advertising on mobile and tablets. Having spent lots of time working on campaigns where music was crucial and not been able to use it in digital this feels like a really valuable insight. Whether or not this means the Yodel is back, we don’t know.

A couple of weeks ago we spoke at the MAP 2013 conference and in our research for a deep dive into tablets we were quite impressed by Pulse, a news aggregator app that has had some decent investment and was used by around 30m users. Linkedin has now bought them for $90m. Compared to the valuations given to those traditional media companies who do old fashioned things like actually create content, this does seem slightly crazy.

Facebook keep up their push into mobile with the acquisition of Parse – enabling them to offer mobile developers a richer range of backend services. A big problem for Facebook is their developer community has been very Flash orientated and obviously that doesn’t play well on mobile. Finding the talent to convert all those desktop flash apps to work on Facebook mobile too is a challenge – and deals like this improve their attractiveness to mobile savvy developers.

Finally ….our friends at eConsultancy have developed a Manifesto for Modern Marketing – which is well worth reading. It makes lots of sense and we particularly like their thinking on multi screen world;

We believe that the mobile revolution is only just beginning. But we see beyond just ‘mobile’. TVs are screens, books are screens, in-store kiosks are screens, billboards are screens. We believe we are marketing in the context of different screens and experiences rather than different devices or channels. Customers do not recognise lines and nor should we. Online, offline, above the line, below the line… we need to think and deliver customer experiences without delineation. Modern marketers think about the whole customer experience and the many screens that control and mediate it.

This Big Picture thinking chimes with our approach. Mobile and social are now just modern digital and the silos are (slowly) starting to disappear.

Mobile Fix – April 19

Big Numbers

Over 50% of the population now has a smartphone

Digital ad revenue is now over £5.5 billion. And over £500m of that is on mobile

Facebook has 15m mobile users every day. 50% of all internet sessions on mobile are on Facebook or from Facebook links

55% of mobile search conversions (call, store visit, purchase) happen within an hour

So what’s everyone we waiting for? It’s time to experiment and start learning.

New Motorola phone won’t be a phablet

We’re starting to get rumours about the first Motorola phones under Google ownership. Their head of design says;

From a software and UI perspective, our strategy is to embrace Android and to make it the best expression of Android and Google in the market. It will be the unadulterated version of Android, and I feel really good about our embracing Android and being the best Android experience.

But they won’t be following the trend towards bigger and bigger screens. Rather than bigger is better they think better is better. These phones are scheduled for the second half of the year and many suspect the next Nexus will be a Motorola device. Eric Schmidt said of Motorola this week

“They have a new set of products, which are phenomenal,” “Very, very impressive.”

Thinking about phablets Lenovo have got an extreme version – a 27inch screen tablet.

Facebook Home

We chaired the panel at the Facebook mobile event in London last week and felt the visceral focus on mobile that everyone at Facebook now has. With Home they are innovating at the top end of the market but they also have Facebook working in very basic phones and feature phones.

Home is now available and is getting mixed reviews – although we suspect a lot of the 1 star ratings are from people trying to get it to work on unsupported phones.

Inevitably there are rumours about Facebook looking to get Home on to Apple and Microsoft phones  - we continue to believe that we’ll see deeper integration on the next version of iOS, but it won’t be anything as extensive as Home on Android.

There has also been some suggestions that Google are unhappy with Home, which Eric Schmidt has been quick to deny and also stressing good relations with Samsung. With Home not officially available for the Nexus 4  – officially– it will be interesting to see whether the new Motorola phones support Home.

Facebook ads

Sheryl Sandberg has been in town and talking up the power of Facebook advertising;

“The size of the audience makes this – the phone – a mass medium. It’s as important to a marketer as TV,” she told journalists at Facebook’s headquarters in London on Monday. “This is as important – if not more important – than television.”

We have already termed Facebook the ITV of social and their huge reach does mean that they are the first digital opportunity that can truly be compared with TV. And Engagement at Scale will become easier to achieve as they role out video ads in the Newsfeed. Launching in the US in June these ads will expand to take up much of the users PC screen  – exactly how they work (especially on mobile ) is still being worked on but they are being sold now – with an asking price of $1million

The ads will be capped at 15 seconds and frequency capped to ensure that no user sees more than three per day, with an asking price of upwards of $1 million,

Now 3 video ads a day sounds like quite a lot. At the London event a number of people raised the issue of too many ads – with Facebook restating that their data shows no negative effect and that they will be careful not to spoil the user experience. With new research from Nielsen showing that 33% of US users agree ads on social network sites are more annoying than other online ads Facebook will have to be careful with these video ads. But for brands this looks like a great opportunity – even though the sophisticated targeting that epitomizes Facebook won’t be available at first.

Latest research on Social

The new report on Social from Nielsen shows a drop in number of people using Facebook  - down 4% on the previous year – whilst some Experian research also shows a fall in the time spent on social sites; in the UK 22% of time spent online in 2012 is spent on social networks and forums  – down from 25% in 2011

And the Nielsen data goes into some interesting detail on what people are doing when they are second screening – and showing some significant differences between smartphone behaviour and tablet behaviours.

It’s well worth spending time reading these reports as the granular detail is probably more interesting than the headline figures.

And another new study shows that 71% of Twitter users now use mobile – with tablet usage doubling to 18%. And the UK is the top market for Twitter with 21% of respondents frequent users – is they use Twitter at least once a week.

One surprising stat this week showed that messaging service WhatsApp is now bigger than Twitter.  It does seem that teenagers are finding these chat apps more relevant than Facebook. This Daily Mail article is a surprisingly good look at the chat apps market and well worth reading.

And the stories about a Billion dollar sale of WhatsApp to Google are denied – quite why someone with 250m users and a robust business model would sell for the same as Instagram was never clear.

Google Fibre

We talked about Google providing a city wide fibre connectivity a while back. This super fast broadband service (between 75 and 100 times faster than typical broadband) was tested in Kansas and it has obviously been a success as they are now launching in Austin, Texas. Here they go head to head with AT&T so we’ll see how they get on signing up customers.

Those who have used the service in Kansas are very positive

Lets talk about the weather

Yahoo are slowly renovating their mobile services and the latest version of their weather app is really good. Yahoo were an early mover in mobile and – despite losing some momentum  - still have a sizeable mobile audience. Now they are focusing again, we should expect to see some interesting product and services.

As a native app (for both iPhone and Android) it looks beautiful, but another new weather app reminds us that apps don’t need to be native. Forecast is a great weather app that works in the browser, so easily found through Google and available on any smartphone

The blog post about the launch is a must read as it deals with most of the native vs web apps debate really well;

if it looks and feels like an app, and lives on your home screen, it’s an App. With a capital “A.”

We also love the url – Forecast.io – and hope that it was inspired by Scorchio from the Fast Show.

Quick Reads

Google have some new research that gets deep into mobile search. A must read.

Ben Evans from Enders always has good data and smart insight – this new deck summarizing where we are with devices sales is very helpful.

One cliché that keeps coming up is the idea of the connected toothbrush – with an app that measures how long you have brushed for etc and gamifies dental hygiene.  Colgate, P&G, Philips and others have all looked at this and now a US start up is launching one.  Just because you can doesn’t mean you should.

We were really interested to find from a Fix reader that Nectar has a service rewarding people for rating ads. Apart from this review we can’t find out too much about it  -does anyone know how it works?

Finally…..We had to miss the excellent Firestarter event this week but heard good reports. And we love this thinking from the event about agencies and innovation from Brilliant Noise.

McKinsey isn’t saying “we are a digital agency”, it is saying digital marketing is broken and we can help you fix it.

When I say become McKinsey faster than McKinsey becomes you, I’m not saying: become a management consultancy. I’m saying re-invent, re-engineer how marketing works, or someone will come along and do it for you.