Download the latest issue of the mobileSQUARED newsletter. Includes Conversational advertising Google targets smartphones The Weather Channel going mobile UK smartphone usage and more

1. In mobile we trust
Issue 9 / Jul‘10
Conversational Advertising
How messaging looks set to become the most powerful advertising channel
Also in this issue...
The behemoth is Android titles per genre
What’s going on
eyeing up the smart- Arcade & Action
Brain & Puzzle
951
1,696
in the world of
phone market Cards & Casino 284
mobile games
Casual 894
0 500 1000 1500 2000
Source: AndroLib, 1-Feb-10 / PocketGamer.biz Mobile Games Trends Report 2010
They’re back! Yes it is a Volvo.
“Hell, I thought iRAQ And yes, it’s gone
was a country, not a all wireless. And
phone holder,”G.W. yes, we trial it
Who’s in this issue... Android, O2, Lightspeed, Orange, Apple, Opera, Blackberry, Volvo, Google, PocketGamer, Nokia
Our data in this issue... Australian mobile internet usage, UK smartphone usage, India m-commerce
www.mobilesquared.co.uk

2. editorial
Nick Lane, chief strategy analyst
nick@mobilesquared.co.uk
We’ve relaunched our website. It’s pretty cool, and it’s now becoming the hub around
Tel: (44) 118 979 5339 our content output as you’d expect.
Mob: (44) 7976 057 052
Firstly, let me tell you about the mobileSQUARED Knowledge Centre, because this will
Skype: nick-lane1
have a massive influence on our content from here on in. The Knowledge Centre
Gavin Patterson, chief markets analyst contains data and forecasts on the mobile market and the mobile consumer over a
gavin@mobilesquared.co.uk five-year forecast period (presently, up to 2015).
Tel: (44) 1904 675 945
Skype: gav.patterson For instance, in China it let’s us tell you things like 224.4 million people will use mobile
search in China this year, or that over 323 million people will browse the mobile
Michael Carroll, Contributing analyst internet on public transport in 2014. Or, in Australia, there will be a little over 8 million
michael@mobilesquared.co.uk mobile gamers in 2013, and in the same year the mobile advertising market will be
Tel: (44) 118 979 5339 worth almost US$15 million. It really is that comprehensive.
James Cameron, contributor Our Knowledge Centre means we will have data and forecasts on things from device
AKA Founder and head of strategy, segmentation, consumer usage, mobile advertising, apps, internet, page impressions,
Camerjam Events and so on, in over 25 markets around the world. We estimate that in total, we have
james@camerjam.com about 85,000 individual facts, figures and forecasts on the mobile industry. So it’s only
fair we share an item of two of data with you on a daily basis. And these, along with
How to find us: our analysis on key developments on the mobile content, services and advertising
mobileSQUARED HQ
space, and interviews, will be posted on a daily basis on our new site.
Unit 1
58 Denmark Street, To make sure you don’t miss our analysis and data, we have now launched a weekly
Wokingham. analytical service, appropriately titled mobileROUND(UP) -- we just love the shapes. Watch
Berkshire, RG40 2BQ
out for the imminent launch of mobileQUADRILATERAL and of course mobileDODECAHEDRON.
UK
Alright, maybe not. Our weekly service will provide links to the best of our analysis
ISSN no. 1759-6483 and data from the previous seven days. It will also become the vehicle to distribute
this (our monthly newsletter), as well as provide updates on all of the mobileSQUARED
Published in the UK 12 times per year Roadshow developments.
in pdf format
Speaking of Roadshows, for Europe, on Sept 29th in London, we have put together
No part of this publication may be an outstanding line-up of speakers to showcase the world of mobile. Details are
copied, photocopied or duplicated contained within. And if you can’t make our Europe event, the Roadshow: US will be
without prior written permission from in New York on Nov 2nd. Details on all upcoming Roadshows can be found on our
the publisher, D2 Mobile Ltd website.
mobileSQUARED is a trading name of Oh, and to make sure all of the content and data is delivered in a timely and
D2 Mobile Ltd. consistent fashion, Gav’s on board, and he’s our new chief markets analyst. You can
reach Gavin by emailing gavin@mobilesquared.co.uk.
The mobileSQUARED team offers unique
forecasting, analysis, research and That’a sll for now
insight on the mobile market, providing
highly focused reports and bespoke Nick - www.mobilesquared.co.uk
contents
intelligence. We tailor our approach to
the requirements of each project and
use our network of global network
of contacts. Page 3 Feature - Conversational advertising
Page 6 Crunch - UK smartphone usage
Our extensive market knowledge stems
from years covering the mobile industry Page 8 Google setting its sights on the smartphone market
meaning that we’re in a position
Page 9 Where to be a player in the new mobile gaming market
to respond immediately to market
developments. Page 11 In search of Mobile Advertising Revenues of Mass Construction
All rights reserved. Opinions expressed by individual Page 12 Carroll’s Quest - in Sweden’s finest
contributors may not personally reflect the views of D2
Mobile Ltd. Whilst reasonable efforts have been made Page 13 mobileROUND(UP)
to ensure that the information and content of this
publication was correct as at the date of first publication, Page 15 Walled Garden
neither D2 Mobile Ltd nor any person engaged or
employed by D2 Mobile Ltd accepts any liability for any Page 16 mobileSQUARED fast facts: India
errors, omissions or other inaccuracies. Readers should
independently verify any facts and figures as no liability Page 17 All you need to know about mobileSQUARED Roadshow: Europe
can be accepted in this regard. Readers assume full
2

3. feature
Communication is the new
order for mobile advertising
Advertising must evolve beyond its mobile advertising communication as the consumer, and therefore are limited
traditional campaign-led approach Conversational advertising, defined in their ability to encourage the ongoing
on mobile for the channel to develop as the agreed messaging-based interaction and engagement that brands
into the most effective form of communication between the consumer desire. Conversational Advertising
communication between a brand and and a brand to deliver consumer benefits introduces a discursive element to what
consumer, according to a new report to the consumer. has been until now, a largely time-
by mobileSQUARED, commissioned restricted engagement opportunity
by SinglePoint. In a mobile world Conversational advertising capitalizes during a campaign.
overshadowed by the fear of spam and on the opted-in database developed
opt-out, the report calls on brands and by the brand to establish an ongoing But this means something of an
businesses to start building an opt-in relationship with the consumer. In doing overhaul of existing approaches. Existing
database now — if they have not already so, the concept evolves beyond the messaging-based forms of mobile
started to do so, and to not be afraid to traditional campaign ideology that has advertising have involved campaign-led
send several messages to its database a become the cornerstone of advertising. activity over a number of hours, or an
month. occasional communication. And while it
Campaigns, by their very nature, has created instantaneous engagement
The report refers to this form of represent an occasional touch-point with and interaction between the brand
3

4. feature
and consumer, this is
compacted into a very
short period of time, and
lasts the length of the
campaign.
Consequently, the brand is
unlikely to use messaging
to communicate with that
user until it embarks on
another campaign. While
this aligns strongly with
traditional advertising
activity and structure, it is
contrary to how users use
their mobile devices.
In the digital age,
engagement is critical.
Once a consumer has
opted in and become
engaged, it then becomes
counterintuitive to send engagement is ongoing. And with be developed using Conversational
an occasional communication. The ongoing engagement, the notion of the Advertising as the platform – in
effectiveness of the opt-in model is to campaign vanishes. conjunction with web and WAP sites,
maintain that relationship between the for example. A more traditional mobile
brand and the consumer, measured by Adopting an ongoing model will advertising campaign could be used
the Cost Per Engagement (CPE). also make mobile messaging a more to develop brand awareness and drive
appealing medium to advertising consumer opt-ins. The latter could be
Conversational advertising addresses agencies. Presently, agencies have
and enhances the existing messaging supported by cross-platform initiatives,
become ousted from the mobile as well as point of contact literature
practices executed at present, which messaging marketing ecosystem,
are fleeting and largely nonexistent educating the consumer of the merits of
and consequently have very limited opting in.
beyond the period of the campaign. The opportunity in monetizing the
continued rise of SMS, allied with status messaging value chain. But why messaging?
updates on social networks and the rapid
adoption of Twitter, highlights that users Similarly, agencies are more accustomed In essence, messaging has the reach
are now accustomed to communicating to generating several million dollars for and effectiveness that is unparalleled
in 160 characters or less. a TV ad or online campaign. It is almost compared to all other channels available
impossible for an agency to justify on mobile, available online, as well as the
The report states that conversational charging US$100,000 to come up with traditional forms of media. The power of
advertising can generate a similar ‘front- 20, 40, or 60 characters for a messaging messaging can also be attributed to its
of-mind’ presence in the consumer as a campaign, regardless of how successful proximity with the user. On average, the
web site, and should therefore become 20 characters could be. mobile phone
the mobile platform upon which all other
forms of mobile advertising campaigns Conversational advertising addresses the will be in the user’s possession for 16
are based. In the same way web sites clear disconnect between agencies and hours a day. It is not uncommon for
are managed and updated, a similar messaging. By replacing campaigns with users to sleep with their mobile devices
principle will apply to conversational annualised messaging (conversational) next to their pillow - the third most used
advertising. activity, agencies can command a application on a phone after voice and
12-month fee, for example, to manage messaging is the alarm.
As highlighted, the ongoing that process for their brand clients. From
communication generated via an agency’s perspective, conversational Research by Pew Internet in Sept 2009,
conversational advertising, increases advertising ensures their inclusion in revealed that texting is the primary
the consumer’s propensity to engage the mobile messaging ecosystem, and reason that teenagers will sleep with
with the brand. Whereas the window of closely aligns not only with their brand their cell phone next to the bed: Texting
opportunity to engage on traditional enhancement cycle, but with consumer teens are 42% more likely to sleep next
mobile advertising activity would mobile behaviour. to their cells than those teenagers that
only be open during the campaign; do not text.
conversational advertising ensures Mobile advertising campaigns can then
Putting this into context, the mobile
4

5. Indeed, the reason that
95% of messages are read
within 3 minutes can be
directly related to the user’s
possessory behaviour
towards the mobile device.
For an advertiser, the
knowledge that 900,000
customers out of a target
group of 1 million opted-in
customers, for example, will
receive their communication
within a matter of minutes
is an incredibly powerful
channel.
nick@mobilesquared.co.uk
This is an extract from
Conversational Advertising,
phone is in the possession of the average that direct activity on the device will a report by mobileSQUARED,
user for 5,840 hours per year. That automatically alert the user, such as commissioned by SinglePoint. To
compares to the average 2,920 hours a phonecall or message. This level of download the complete report, including
the average user in developed markets “pull” activity is in keeping with the conversational advertising forecasts in
spends in front of their PC, versus the widely adhered-to difference between the US, UK, and India, please visit (or click
average 1,865 hours spent watching the marketing and advertising; the former on) www.singlepoint.com/whitepaper
TV (US only). is push-based, whereas the latter is pull-
based. In relation to messaging, it is very
The implications for the mobile device’s much a pull-based media.
proximity in relation to the user, is
Get Inside the Head of Your Target Audience
Lightspeed Research’s online panels deliver the valuable data
you need to make informed business decisions.
Contact Us: +44 (0)20 7896-1900
5
www.lightspeedresearch.com | msqu@lightspeedresearch.com

6. crunch
UK smartphone users don’t dominate
mobile internet access ... yet!
Smartphone users are more likely to device or access several times a day, mobile Internet users within the next 12
access the mobile Internet than non- versus just 11.7% of non-smartphone months.
smartphone users and certainly create users. However, with 10 million
more page impressions, but non- smartphones in the UK at the end of Moreover, by the end of 2010
smartphone devices still constitute the 2009 and 49.28 million non smartphones mobileSQUARED estimates there will be
single largest method of accessing the (featurephones and basic devices), this 14.8 million smartphones in the UK,
mobile Internet in the UK, according to means that only 4.07 million smartphone versus 46.84 million non-smartphones
figures released by mobileSQUARED. users are considered to be heavy mobile so, even if the current situation remains
Internet users against 5.76 million non- unchanged, organic growth will see
Research conducted by Lightspeed smartphone users. smartphones become the single largest
Research for mobileSQUARED shows that method of accessing the mobile Internet
40.7% of smartphone users in the UK Clearly, there is a higher mobile Internet by the end of the year.
either always access the Internet via their conversion rate among smartphone
users than non- In total, 93.6% of smartphone users
smartphone access the mobile Internet at least once
users. a month, equivalent to 9.36 million users,
Consumers with 28.3% accessing “several times a
are also more day”, followed by 19.7% that use the
likely to spend service “a few times a week”. A little over
more time 12% of smartphone users only access the
browsing on mobile Internet once a month, compared
a smartphone to 29.8% of non-smartphone users.
than any Almost 20% of non-smartphone users
other device. are yet to be tempted to use the mobile
However, the Internet, though are aware of the service.
fact that almost
There has been a rapid increase in mobile
30% of non-
Internet usage over the 12-month period
smartphone
from 2008 to 2009 on all devices, but
users use the
especially among smartphone users.
Source (both graphs): Lightspeed Research/mobile SQUARED
mobile Internet
As of 2008, 47.7% of smartphone users
once a month
spend more than one hour on their
represents a
device per day. By the end of 2009, the
great platform
number of smartphone users spending
upon which
more than one hour using their device
usage can
was up to 62.4%. That equates to
develop. Given
6.24 million users based on end-2009
the uptake of
subscription figures.
mobile Internet
over the last Though not as significant, non-
12 months, smartphone users are also spending
mobileSQUARED more time per day using their mobile
predicts that device. The percentage of users spending
a significant more than one hour on their device per
percentage of day has increased from 37% 2008 to
this figure will 47.5%.
become more
frequent weekly gavin@mobilesquared.co.uk
6

7. The essential guide to
Roadshow 2010 communicating with
Delegate pass
the mobile consumer
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· We have speakers from one of the world’s largest news networks and one of the most innovative mobile
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and numerous mobile operators.
· We have analysis and strategy from the leading mobile advertising, internet and social networking providers.
· We have the Open Mobile Surgery, with our team of first-class mobile Drs on hand to rectify all of your mobile
ailments, queries, and doubts.
· We have one of the most innovative Workshop sessions you will get at any event today.
· And to top it all off, we will have the latest mobile market and consumer research for 15 markets across
Europe.
See full brochure + full agenda from page 19. REGISTER NOW
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Companies attending include Oracle, Sapient Nitro, Sunguard, Mediacom, BSkyB, Microsoft,
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7
more information at www.mobilesquared.co.uk/roadshow/roadshow-europe

8. Google focused on smartphones
Google has seen mobile operations help vice president of product management. important aspect for marketers to grasp.
boost its bottom line as the company “Everything else being constant, we’re “There are huge spikes in mobile queries
reported a 24% jump in revenues to seeing a disproportionately larger around commercials at the end of
$6.82 billion for the quarter ended proportion of mobile clicks than there sporting events, like the Superbowl.”
June 30, but Google chairman and CEO has been in the past.
Eric Schmidt believes the company is The phenomenal growth in mobile
positioning its Android mobile operating Overall, the whole Android ecosystem is search mirrors similar growth in mobile
system to drive revenues exceeding “exploding”, with a 300% rise in search Internet activity. For Google in particular,
$10 billion a year - bolstered by mobile queries made from Android-powered Android is now starting to make its mark
advertising and content downloads. devices in the first half of 2010. “I think on the industry. Android is now the
the most important thing beyond the second biggest smartphone category in
Schmidt claimed that Android’s growing growth is that the most popular app is a the US, with over 100,000 Android device
popularity will see Google’s web search, browser,” said Rosenberg. “And what do sales per day. There are now 60 Android
maps and ad-based services continue people do there? They search — more devices available in the marketplace,
to thrive as customers migrate from the than they ever have.” with an additional 40 expected to be
desktop to the smartphone – in the US released before the end of the year. “We
alone there are over Google 100,000 new There are now approximately 70,000 are super excited about Android,” says
Android device sales each day. “If we Android apps available compared to Steib. “Android is free. So we think it is a
have a billion people using Android, you 30,000 in April, and consumers have platform that is helping to develop and
think we can’t make money from that?” now downloaded more than 2 billion accelerate the mobile web. People seem
Schmidt said, explaining Google could Android apps to their smartphones. to be using their Android devices a lot.
earn $10 billion annually at a rate of $10 The Android app market is on course to The browser will be the killer apps.
per user per year. pass 100,000 by year end following the
July 12 launch of App Inventor - a free “To date, over 2 billion Android apps
Patrick Pichette, senior vice president web-based software tool enabling users have been downloaded. Steib says that
and chief financial officer of Google, to create their own Android applications 25% of iPhone and Android users spend
says more and more traditional brand regardless of previous programming 2 hours per day connecting with apps.
advertisers are embracing search experience. But the focus remains on the mobile
and search advertising to build their web. Google anticipates local playing
brand online and running integrated Apple may have stolen the device glory a major role in the future. “One in three
campaigns across mobile display with 3 million iPads shifting in as many searches are based on local queries,”
and search, and mobile revenue are months, but Google views smartphones says Steib. “And as the innovation in the
growing as advertisers continue to opt as the key ingredient driving the advertising space is accelerating, there
into mobile-specific campaigns. “The widespread adoption of the mobile web is a need to reveal what products are
successful completion of the AdMob and is now focusing its development available locally.”
acquisition gives us a very strong mobile strategy on Smartphones. Mike Steib,
advertising platform to continue to director, emerging platforms, Google, Steib does not think the data caps
grow the business,” said Pichette. “The says that the level of search activity on imposed on AT&T users in the US, and
richer the ad, the more the advertiser is smartphones has experienced a 500% more recently O2 UK users, will have
willing to contribute because it is more growth over the last 12 months. On the a damaging impact on the adoption
engaging and thus creates a better iPhone alone, there is 50x the search of the mobile Internet. Caps on data
revenue opportunity. We’re providing activity compared to featurephones. plans will affect 2% of users in each
better returns for advertisers so we are market. Trend-line analysis conducted
“The transition from featurephones by Google reveals that more and more
able to price the ads better. Agencies are
to smartphpone means that people users want to spend more and more
realizing the value of integrated buys
are now using the phone more like a time on the web. “Data caps make sense
across platform that include search,
computer,” Steib says. “But what we’re when the thing that you are selling is a
mobile, display and YouTube,” he said.
seeing is that for frequent searches limited commodity,” says Steib. “It will
Google claims that click-to-call ads on on mobile devices, their diversity of be better for mobile web when the cost
high-end mobile phones are doing very searches is greater than on their PC. of broadband goes down and we don’t
well. Click-through rates on mobile ads People are actually doing more on discourage users from using mobile web.
increase 6% when the advertiser includes smartphones.” I understand why AT&T have introduced
a phone number and increase 8% if price caps.”
Based on usage, it is apparent to Steib
they include a local address. “Mobile is
that mobile can complement other gavin@mobilesquared.co.uk &
certainly growing faster than other clicks,”
forms of media, which he believes is an nick@mobilesquared.co.uk
said Jonathan Rosenberg, Google’s senior
8

9. Where to be a player
in the new mobile
gaming market
Mobile gaming is coming of age than 26,000 games
App Store titles per genre
in 2010. It’s had some challenging available, with 68
formative years, but that’s all changed percent of them Puzzle 7,737
thanks to the unlikely father figure paid titles. The most Action 5,994
of Steve Jobs, and the phenomenal popular genre - Puzzle Arcade 5,892
growth of the iPhone App Store. - contains more than Family 4,536
7,700 titles.. Kids 4,169
Now mobile companies are falling over
themselves to get into play with the There’s also the thorny Educational 3,456
likes of Google’s Android, Blackberry issue of price. Whereas Strategy 3,236
App World, and Nokia’s Ovi featuring mobile operators Board 2,875
games as a key component of future maintained a £5 price Simulation 2,536
strategy. And the market’s growing fast. tag for games, 59p Adventure 2,154
Gartner’s expects it to be up 19 percent is the most popular Trivia 1,875
to $5.6 billion in 2010, with Juniper price on the App Sports 1,558
and DFC Intelligence respectively Store, with only the Card 1,432
projecting $10 billion in 2013 and large publishers able Role Playing 1,405
$11.7 billion in 2014. to release games at
Word 1,383
the higher prices
But how do you get slices of these pies which dominate the
Casino 897
and, more to the point, which should top grossing charts. Music 866
you focus on? Racing 653
Official statistics on Dice 454
In this edited extract from the Google’s Android
PocketGamer.Biz Mobile Games Trend Market are harder
0 1000 2000 3000 4000 5000 6000 7000 8000
Source: Mobclix, 1-Feb-10 / Pocket Gamer Mobile Games Trends Report 2010
report, we offer a quick run down on to come by than for
the leading platforms. iPhone as there’s announce it’s bringing 10 of its top
no full store listing. As of February, games to the platform.
Apple’s App Store is without doubt the
analytics website AndroLib tracked
best mobile gaming plaform available. The pricing of Android content remains
3,825 Android games, dominated
Activity is huge, with over 4 billion an issue however, with analytics
by the Brain & Puzzle and Casual
accumulated downloads, its 70:30 company Distimo claiming Android
categories. Another difference is the
revenue has been widely copied, and Market has the lowest average price for
lack of big name publishers, who have
there’s precious little fragmentation to paid applications at $3.27, compared
been lukewarm, due in part to the
worry about. to $3.47 for Nokia’s Ovi Store, $3.62
large volumes of free titles, the lack of
for Apple’s App Store, and $8.26 for
Discovery is a growing problem an firstparty store, and inflexible billing
BlackBerry App World.
though. In February, analytics website options.
Mobclix revealed there were more Although BlackBerry App World didn’t
This is beginning to change however,
launch until spring 2009, Research
Android titles per genre thanks to success
in Motion already had a thriving
of devices such as
development community, albeit one
951 the Motorola Droid,
Arcade & Action
focused on business applications. Now,
which combined with
in keeping with its wider refocusing
Brain & Puzzle 1,696 output from HTC
of BlackBerry as a lifestyle brand, it’s
and Samsung means
Cards & Casino 284 doing the same with apps, announcing
Google is activating
support for 3D graphics standard
Casual 894 100,000 devices per
OpenGL 2.0 for its newest devices. App
day. This scale has
World already has plenty of games too
0 500 1000 1500 2000
also seen Gameloft
Source: AndroLib, 1-Feb-10 / PocketGamer.biz Mobile Games Trends Report 2010
9

10. consumed
BlackBerry titles per genre
backend complexity for And there’s more…
developers, and poor
Puzzles 238
sales. At the last count there’s actually 37
Strategy 158
distinct app stores in operation spread
Sports 146 In recent months, across Device manufacturers (including
Action 123 some developers have Samsung, Sony Ericsson, Palm and
Cards 121 reported an upswing, LG), OS developers (such as Windows
Arcade 95 with the store handling Mobile and the Java store), operators
Movie & TV Themes 94 1.7 million downloads (Vodafone 360, Orange App store,
Board Games 80 per day, although Verizon et al all have their own new
Combat 66 this is figure also channels) and independents (From
Space 23
includes wallpapers Getjar and Handmark to Mobango and
and ringtones. But App Central) and that’s not to mention
0 50 100 150 200 250
with Ovi Store coming
Source: BlackBerry App World / PocketGamer.biz Mobile Games Trends Report 2010 the pre-existing mobile operator
preloaded on more and portals and OEM embedded programs.
- around 1,200 at last count - even if more handsets - it’s Suffice to say all of these channels offer
they’re essentially J2ME titles. As with also available in 18 countries and 30 their own opportunities and challenges
iPhone and Android, the Puzzle genre languages - it seems inconceivable it for game developers and should be
is the most populated. won’t be a key player in the market considered as part of a wider strategy.
going forward.
Perhaps the clearest difference
compared to other app stores is pricing
US App Store Prices
however. Thanks to RIM’s policy of
maintaining $2.99 as its lowest price 6.5
point, BlackBerry App World has the
highest average price - $8.26 according
5.4
to Distimo. Even when it comes to
Price in US dollars
games, Pocket Gamer’s research show
that the average price of the top 4.3
20 BlackBerry games is around $4,
compared to $2.50 for Apple App Store.
3.2
Despite being the world’s largest
phone and smartphone maker, Nokia
2.1
hasn’t been able to leverage its market
share into app store success. Indeed,
Ovi Store has enjoyed distinctly mixed 1
fortunes since its launch in 2009. The June 2009 November 2009
store suffered from technical glitches in Average price of EA Games in the Top 100 paid
its first few days live and has since been Average price of Gameloft Games in the Top 100 paid
criticised for customer service issues, Top 100 paid average
Top 10 paid average
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10

11. Why people give their permission
for promiscuous-based marketing
GWB: I don’t know how suited I am at Toe-Knee, have been investigating the they get the stamina. Nor does Mrs B
being a covert analyst exploring the world of opt-in mobile marketing. We’ve for that matter. They’ve launched the
ins and outs of the mobile advertising heard a lot about this promiscuous- service in the Netherlands, which I can
industry for the nice people at based marketing. And I have to say well believe, and India is next on their
mobileDODECAHEDRON. I know for one, I’m not surprised the opt-in process to roadmap. But I’m not surprised Blyk
that my grammar and vocabularity access such messages is so rigorous. The couldn’t keep it up in the UK, the Brits
is not what it could be, and when thought of being promiscuous on a text are far too stuffy for promiscuitities.
confronted with the task of writing message is something both myself and
industry commentary, I, like many can Mrs B cannot relatify too. TKB. Let me just interject there about
be found discombobulating (hell, I think the UK. Our intelligence has revealed
I’ve just made a word up) in a corner But some folk do. What’s more, we’ve that Blyk’s platform was acquired by
somewhere. found a number of companies that are Orange and they are getting more and
actively pursuing promiscuous-based more permission-based opt-ins, as
If this role is only a short-term marketing. In some markets there are indeed are O2. So I would disagree with
venturpotunity, I do believe I am suited hundreds of thousands of people at it. you on your last point. Though I must
for a senior position at Apple. Who in In Turkey, there are millions. say I do appear to have something of
the heckfire came up with iad? Next a reputation for agreeing with Gee W.,
they’ll start putting random bowels in Based on what we can gather about don’t I Gee W.?
front of phones. Hell, I thought iRAQ a company called Blyk, people are
was a country, not a phone holder. apparently feeling the most up for it GWB: Where in the world did you get
mid-afternoon. They always target that? Of course you don’t agree with me.
Apple is nothing more than a people at 16:24 on the promise of
distractulation to the task in hand, getting it at least once per day, and TKB: No, you’re absolutely right.
as me and my esteemed colleague, sometimes up to six. I don’t know where
11

12. Carroll’s Quest
Our resident handset expert Michael Carroll, steadfastly refuses to use the
iPhone. But his resistance is weakening. So we at mobileSQUARED have set Michael
the challenge of uncovering a handset that rivals the iPhone.
Here, he puts the Vovlo C30 through its paces. Yes, a Volvo
The other month I decided to abandon arranged by event-sponsor Volvo
my regular search for the ultimate and involved around 100 cars packed
iPhone-beating smartphone in favour with consumers and minor celebrities
of a more traditional laptop and dongle [Matthew Horne of Gavin and Stacey
approach. The reason? I was heading to fame], but couldn’t source a dongle or
a very small town in Austria for a very even a smartphone from any UK carrier.
big music event.
The drive gave me the chance to assess
Snowbombing has developed into all the wireless technology now finding
one of Europe’s premier dance-music its way into cars.
events over the past decade, attracting
thousands of party-goers with its RFID-based keyless entry and start
unique mix of hedonistic nights, and was great when I had the fob, but the
days spent on the ski slopes around passenger door won’t open until the
Mayrhofen. driver opens theirs, leaving me standing
like a child in the days before central
From a wireless point-of-view, it was locking, when you had to wait for your
a disaster in the making, as the town’s parents to unlock the doors by hand.
WiFi networks experienced such a
surge in demand that even the event’s By far the best thing, though, was that
organisers struggled to get a consistent my ageing Sony Ericsson W800i pairs
Web connection. with the car’s built-in Bluetooth. Volvo
has yet to confirm which version of
Because I don’t spend all day playing Bluetooth is installed in the car, but
with mobile phones I put in a call to suffice to say its backwards compatible
Telecom Austria, who were only too with my 2005 handset.
happy to send an HSPA dongle to my
hotel. A great sound system meant phone calls
were easily heard, and I could place calls
Plug and play is a wonderful invention. I using the car’s central console.
was up and running within five minutes
of figuring out the SIM card that came in But, by far the best feature was the
the box was for the dongle, and not for fact that, when I paired my phone, my
my phone. companion’s iPod – which still connects
using a cable – was rendered inactive.
My travelling companion probably
tested the dongle’s capabilities more Five year-old Walkman 1. Fangled
than I did, having to upload high- i-products 0.
resolution pictures of her long-term test
michael@mobilesquared.co.uk
car – Volvo’s funky C30 – to the website
of the UK’s leading car magazines.
We originally hoped to live-blog details
of the road-trip to Austria, which was
12

13. country data
Permission-based marketing on the up Opera Mini users
O2 More, the operator’s opt-in ad advertising ecosystem, and not at one
messaging service, has more than
doubled its number of users over the
end of the value chain - as is the case
in virtually all models at present - the
surf 1 billion pages
last month, mobile has discovered. consumer will not embrace the medium
per day
SQUARED
Although the operator is believed to have as quickly as the industry anticipates.
experienced a drop in subscribers at some
point during the year, it is now thought Messaging is certainly primed to play a Not only is the number of mobile
to have between 50,000-100,000 users. A massive role in mobile advertising. For browsers around the world increasing,
timely recovery in time for the launch of instance, UK mobile subs send over 11 the average length of time users are
its proximity marketing service, which is million SMSes per hour, amounting to 7.7 browsing is on the up also.
expected to launch in August. billion SMSes per month. Alternatively,
that represents up to 15.4 billion The latest data on Opera Mini reveals
That puts O2 in hot pursuit of Orange engagements with the SMS medium that its 59.4 million users are now
Shots, which told mobileSQUARED that it every month (i.e. send and receive). And generating over 1 billion page
has “well over” the 100,000 subscribers it for this reason alone, mobileSQUARED is impressions a day. On average, Opera
announced when the service launched confident permission-based advertising Mini users are visiting 16.84 pages per
earlier this year. Without divulging actual will be a significant force in the mobile day. This compares to an average daily
numbers, clearly Orange has experienced advertising itinerary within 12-18 months. page impression per user in June 2009
growth, though perhaps not the (See our report for SinglePoint on of 12.98.
spectacular increase it envisaged when it Conversational Advertising).
In those 13 months, Opera has added
took over the Blyk platform in the UK.
In June, speaking at the IAB’s Engage for 11.4 million Mini users, with the total
mobileSQUARED puts this slower-than- Mobile event, Dean Merrion, head of O2 daily page impressions leaping from
expected growth in permission-based More at O2 Media, claimed that 67% of around 653,000,000 to over 1 billion –
advertising on mobile down to consumer O2 customers are likely to engage with an increase of 161%.
education. After all, mobile advertising a mobile offer. That equates to 14.34
According to the company, much
in all of its various guises is only at the million subscribers out of its 21.4 million
of this growth can be attributed to
nascent stage of its development. And the total users. If Orange, Vodafone, 3 and
Africa, where it describes the mobile
process of consumer education is at an T-Mobile’s customers all think along
internet usage as “explosive”. Across
even earlier stage of its evolution. similar lines, then almost 70% of the UK
Africa, the region is experiencing triple
market will embrace mobile advertising,
Consumers nevertheless remain a digit growth, with the top 12 markets
and coupon-based messaging services
pivotal role in the uptake and success of in Africa experiencing a year-on-year
in particular. Provided operators get the
mobile advertising. Until the consumer is growth of 182%, based on an increase
messaging spot on, there are big numbers
placed truly in the middle of the mobile of Opera Mini users of 124%.
out there.
A month-on-month global comparison
26% yoy mobile internet growth in Oz reveals that Opera Mini users viewed
27.3 billion pages in June 2010,
The number of mobile internet users in mobileSQUARED forecasts the number of compared to 26.5 billion the previous
Australia will experience year-on-year mobile browsers using featurephones to month.
growth of 26% between 2009 and 2010, steadily decline between now and 2015,
with 5.14 million mobile internet users as these users upgrade to smartphones. According to the mobileSQUARED
by the end of this year, according to data Knowledge Centre, the average daily
released by mobileSQUARED. More than 56% By 2015, the number of Australian users page impressions per user in the UK will
of the users will be on smartphones, browsing on their mobile phones will increase from 9.39 this year, to 13.44 in
including iPhone users, which alone top 11.1 million, with 69% of users on 2011. While in Australia, the increase
contribute 21% of browsers. smartphones (including Android), while a in daily page impressions in the same
little under a quarter (24%) will be using timeframe will be from 16.08 to 20.58.
Between 2009 and the end of 2010, the the iPhone. Interestingly, all smartphone Clearly, Opera Mini browsing behaviour
number of iPhone and smartphone users categories will account for 68% of total is higher-than-average than the UK.
browsing the internet will almost double. mobile users in Australia by 2015.
13

14. The Weather Channel forecasting severe mobile activity
The Weather Channel is the largest and international, The Weather Channel million followers to submit their location.
location-based advertising platform Interactive. “Consumers have to enter their post code
in the world, boasting 100% of its 137 so that we can deliver content to them,”
million unique consumers being location- With over 100,000 Android devices being says Clayton. “We have location which
enabled. The service attracts 119 million sold a day in the US, The Weather Channel we can use for advertising. And because
cable TV viewers, its website and mobile was quick to ride the Android wave. On of our reach, advertisers are buying
site has 42 million and 22 million unique Blackberry and Palm Pre, there have been cross-platform. As an organisation we are
visitors per month respectively, while over over 2 million and 500,000 respectively, focused on having that cross -platform
520,000 apps downloaded on the iPad apps downloaded. And despite its recent approach, but we’re leading with mobile.
alone. launch, The Weather Channel’s iPad app And mobile is the first conversation that
has already had over 520,000 downloads. we’re having.”
Not surprisingly, The Weather Channel is
one of the largest advertising networks in As Clayton says, mobile has now reached Often forgotten is that voice is still the
the US, and this has enabled it to become scale. But it is how companies and brands first app, which Clayton says is a “lean
one of the leading mobile players also. In utilise that scale that will ultimately forward experience”, encouraging
fact, only Google, Facebook and Yahoo dictate the success of their mobile engagement. “And if you are interacting,
are bigger on mobile in the US than The strategy. “If you’re a brand, you have to then the user is 100% focused on that
Weather Channel. think about what iPad means to your and are totally locked in. For a brand that
brand and your consumers, because a means that they have 100% mindshare of
Its mobile heritage has been evolving brand’s view will be completely different that consumer.”
since 1999 when it launched its first to a publisher’s view,” says Clayton. “That
mobile site, followed by its first BREW and also means that the way consumers The lean back experience is likened to
Java apps in 2001. interact will be completely different.” watching TV, whereby consumers can
operate dual modality and are therefore
“You have to be in these places right at Where The Weather Channel already not as focused.
the beginning to ride the wave,” says holds an advantage is in its unenviable
Cameron Clayton, vice president, mobile position of encouraging all of its 137
The World's Mobile Ad Network
Reach. Size Matters. 179 Million Consumers. 7.5 Billion Impressions. 37 Countries.
Perform . We Deliver. 3,000 Publishers. 25,000 Campaigns. 20,000 Ads/Second.
Measu r e . AdROIt™. Revenue optimization through real-time analytics.
L e a r n a b o ut our intelligent, self- l e a r n i n g m o b i l e a d n e t w o r k a t w w w . i n m o b i . c o m
14

15. walled garden
Mobile apps: A Mexican stand-off?
The mobile apps market is rapidly Consumers will start to buy mobile to revenue generation. This lifetime can
evolving and has massive potential phones based on which ones provide the be extended by releasing similar apps
for growth, especially as smartphones most highly recommended apps. It will across different stores to reach as many
become increasingly ubiquitous over the no longer be sufficient for industry giants consumers as possible. Twitter and
next ten years. A quick glance through to create an app store with thousands of Facebook currently use this method to
the top ten in any of the major app stores potential downloads. What will become great effect.
today reveals how things have changed. critical is securing the best-selling apps.
Gone are the once highly successful Handset manufacturers have already If a cross-platform strategy equals longer
novelty apps like iFart and Sonic Lighter begun to participate in an apps “arms- app lifecycle, a greater customer reach
- displaced by big brand names like race” - purchasing exclusive rights to the and more revenue, then exclusivity
Google and CNN.[i] apps that they see as the most influential deals are unlikely to be an attractive
with their potential buyers. The success proposition for developers. What
Apps are set to be the next battleground of BlackBerry Messenger (BBM) shows could work is a solution that blends
for brands fighting for greater market the power an exclusive app can have on the two models. Exclusive licenses
share. Manufacturers, developers and driving consumers to your devices. with a set expiry date would provide
consumers will have conflicting interests the manufacturers with the exclusive
during this struggle, over issues such as The quest for exclusivity is already app carrot to wave at consumers to
cross-platform apps, handset retention paving the way for specialisation from turn them into paying customers,
and exclusivity. For example, while the manufacturers; location-based while allowing developers to work in
exclusivity might give developers a services, travel and music are particularly the background perfecting versions of
short term advantage, it may be to the popular. In the past few months, Nokia their app for every other store – to be
detriment of long term innovation and has purchased companies like Novarra immediately released when the license
customer satisfaction. and Dopplr and we can expect other expires.
manufacturers to follow suit. What
What does the future hold for the mobile will come next is a trend towards Although this will not guarantee
apps market and the different players consolidation – fewer apps being success for every developer, the ones
involved? available, but the ones that are will be that do recognise the commercial
focused on quality and functionality benefits of this type of exclusivity
Don’t adjust your handsets will look for further ways to add
rather than providing consumers with
Manufacturers are struggling to hundreds of low-quality apps that do the value. Whether that manifests itself
differentiate their offering from same thing. in designing highly addictive apps
the competition, and although all that can start a purchasing craze or
The developing world solving manufacturer issues like in-app
manufacturers proclaim the unique
selling points of their particular handsets, payments or advertising, successful
Developers will need to maximise developers will find ways to make
these are quickly duplicated, making potential opportunities wherever
them commonplace. Even pricing no themselves as indispensable and as
possible. Many app developers currently lucrative as possible.
longer provides much differentiation see cross-platform availability as their
between the top tier handsets. default position in terms of maximising Consumer impact
the profitability of their apps. They are
Apps continue to offer consumers With more consumers turning to
also realising that their mobile apps
greater mobile functionality and content. smartphones, the changing relationship
have a limited lifecycle when it comes
15

16. walled garden
between manufacturers and developers Clever tactics from the corporation but compelling platforms, manufacturers
will have a significant impact on more bad news for the gamer with limited and operators are free to strike exclusive
consumers than ever before. Consumer funds. deals, developers are free to work
demand will evolve from always-on on the platform of their choice and
Conclusions consumers are free to reap the benefits
access to mobile social interaction across
any handset, on any network. of competition.
So where does that leave us? It’s clear
that all three parties want different Allowing open access to their APIs makes
The ongoing competition between
things. But it’s not enough to just use the perfect sense for service providers. They
manufacturers and the exclusivity
old adage and say “never the twain shall can concentrate on profitable deals
between manufacturers and developers
meet.” Someone needs to take a stand while external developers can create
will fly in the face of the consumers who
now and work out a solution – even if for undeserved platforms. Customers
are looking forward to the potential
that means compromising for the sake of benefit by having a wide range of device
of apps that make further use of social
moving the market forward. on which to use their preferred services.
connectivity.
Manufacturers and developers need to Opening up is the only way to ensure
The fragmentation of the app space will
see that they can work closely together, exclusivity deals remain profitable and
eventually lead to further consumer
whilst still maintaining a competitive ensure users aren’t locked out of the
dissatisfaction with the mobile
edge. Otherwise the apps market services they desire.
marketplace – frustrated by the limited
could see itself devolving into the next
social interaction available to them
MMS-style disappointment. Even today By Raam Thakrar, CEO of Touchnote
and being constantly forced to change
MMS is not used to its full potential and
platform just to get the content they [i] What is an app? For our purposes,
we have no-one to blame except the
want on their mobile. We are already we can take it to mean any application
industry for its lack of collaboration.
seeing this frustration demonstrated by developed and distributed not by the
console gamers. Microsoft’s purchase Without this collaboration the future will phone manufactures but by a third party
of game designers like Bungie means produce more losers than winners in the developer and installed on the phone by
hotly anticipated new games will only apps race. the owner.
be compatible with Microsoft hardware.
The proposition to consumers is all too Perhaps the answer lies in open For more information, please take a peek
clear: “if you want to play this game, then ecosystems. With open APIs, service at www.touchnote.com
you’ll have to buy our hardware first”. providers are free to work on the most
mobile SQUARED
fast facts: India
16

17. Roadshow 2010
Asia Europe US South Africa
Singapore London New York Cape Town
Returning in Spring 2011 September 29th November 2nd May 2011
Roadshow 2010
The essential guide
to communicating with
the mobile consumer
Vinopolis, London, September 29th, 2010
Platinum Sponsor Gold Sponsor Lanyard Sponsor Lunch Sponsor Coffee Sponsor Networking Sponsor Mobile Platform
Partner
I strongly encourage fellow creative and media agencies to attend the Roadshow to raise the tide for all our clients’ boats.
Ian Loon - Associate Director, Digital Influence Group, Starcom Media Worldwide
www.mobilesquared.co.uk/roadshow/roadshow-europe
17

18. Roadshow: Europe
What’s it about?
There was a good mix of content
The mobile SQUARED
Roadshow: Europe is an innovative 1-day and presentations for those new
to, and those well immersed in
event covering the essential aspects of connecting with mobile the industry. I particularly enjoyed
consumers, relevant for brands, agencies, content providers, and insights into individual markets.
mobile companies alike. We bring all these key players together to Mike Dunphy, Mobile Consultant,
Liverpool FC.
collaborate outside of their usual siloes, and facilitate fresh
thinking on how to shape the market for best results. Very interesting, and the key
highlight was the excerpts from
It’s about how to harness the one media device that connects to the research. It was good to see an
independent take on the industry
millions, and is always on and always in view. and to have a third party actually
break down the data to include
• Content focus on the key areas of Apps, WAPs, and Mobile markets like Malaysia.
Advertising. Rene Menezes, CEO, Better
• Short ‘how to’ practical guides (e.g. create the perfect mobile Digital Solutions, Malaysia
marketing campaign, build a sticky app)
• Expert keynote presentations
Workshop Challenge
• Take the Workshop Challenge
Pit your wits against other delegates
• Exclusive case studies when your workshop group has
€50,000 to create a mobile campaign
• Lively panel debate to deliver maximum eyeballs and
• Extended networking sessions – to maximise our unique cross interactivity. Your campaign parameters
will be judged against actual mobile
section of industry sectors including mobile folk, brands, metrics, with the winning group
agencies, publishers, and non-profit organisations. handsomely rewarded.
Who is the Roadshow for?
Anyone who wants to understand how to create a successful mobile strategy, drive awareness and revenue from
mobile, meet those who shape the market, and build consumer connections via the mobile platform.
Our content is relevant to companies who are already on mobile and want to learn from the best to optimise
their strategy, and also companies who want to make mobile part of their strategy, but need a clear
roadmap and access to the right contacts to do so.
18

19. www.mobilesquared.co.uk/roadshow/roadshow-europe
3 ways the Roadshow can shape your mobile strategy
• Delivering exclusive research, unique case studies, and focused insight from market-leading mobile experts,
marketers and brands – wrapped up with practical ‘how to?’ sessions with advice on implementation.
• An opportunity to network with a unique mix of new contacts, we help grow the market by attracting fresh
non-mobile sectors as well as key mobile folk.
• Every delegate will also receive a copy of “The Essential guide to communicating with the mobile consumer”
Roadshow Report to take away with them. Our guarantee that you will leave mobile savvy.
Who exactly attends the Roadshow?
An eclectic mix of mobile and non-mobile sectors. We’re different because of the audience mix we deliver
- we proactively market to representatives from across a huge variety of sectors to help grow the mobile
market. Non-mobile sectors made up 47% of our delegates 2009-2010 Roadshows to date.
mobileSQUARED Roadshow: Delegates by Sector
13% Digital Agency / Mobile Ad Agency 7% Vendor / Handset Manufacturer
13% Digital Agency / Mobile Ad Agency 7% Vendor / Handset Manufacturer
11% Service Provider 5% Content Provider
11% Service Provider 5% Content Provider
10% Creative / Media Agency 3% Public Sector / Government
10% Creative / Media Agency 3% Public Sector / Government
10% Ad Network 3% Mobile Solutions Company
10% Ad Network 3% Mobile Solutions Company
10% Brand 2% Media Aggregator
10% Brand 2% Media Aggregator
8% Operator 2% Publisher
8% Operator 2% Publisher
7% Software Manufacturer 1% PR Agency
7% Software Manufacturer 1% PR Agency
7% Consultant / Press / Analyst 1% Media Association
7% Consultant / Press / Analyst 1% Media Association
Our attendees are also senior decision makers. 74% of delegates attending mobileSQUARED Roadshows
2009-2010 are Director level or above.
mobileSQUARED Roadshow: Delegates by Job Function
18% SVP / VP / Managing Director 6% Associate / Regional Director
18% SVP / VP / Managing Director 6% Associate / Regional Director
12% 12% / Owner// Owner //President / COO
CEO CEO President COO 6% 6%
Head of Mobile Services / Head of Digital Services / Head of Digital
Head of Mobile
Director - Content-Development /
Director Content Development / Account Manager / Account Exec Manager / Account Exec /
Account /
9% 9% 6%
Publisher Dev / Content Partnerships Partnerships
Publisher Dev / Content Mobile Exec /6%
Content Mobile Exec / Content Services
Services
8% Sales / Business Development Director 4% Consultant
8% Sales / Business Development Director 4% Consultant
8% Head of Marketing / Marketing Director 4% Other
8% Head of Marketing / Marketing Director 4% Other
8% Manager - Dev Marketing / Country / Sales / BD 3% Research Associate
7% 8%
Business Director / - Dev Services Director 3%
Manager Client Marketing / Country / Sales / BD Manager Integrated Applications
1% Senior Research Associate
7% Business Director / Client Services Director 1% Senior Manager Integrated Applications
19