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PAGE 3 EDITOR’S NOTE: Mobile set to influence retail, on-device shopping By Mickey Alam Khan ADVERTISING Mobile advertising to drive mobile commerce sales By Giselle Tsirulnik ANALYTICS Analytics key to multi-platform mobile commerce By Dan Butcher APPLICATIONS Retail apps will be next-generation loyalty cards By Giselle Tsirulnik BANKING Anticipate strong consumer adoption of mobile banking By Giselle Tsirulnik CARRIER NETWORKS Carrier networks laying the groundwork for huge Isis launch By Dan Butcher CONTENT Content integration pivotal to mobile utility By Rimma Kats DATABASE/CRM Mobile database essential for driving direct commerce By Giselle Tsirulnik EMAIL Mobile-optimized email can be effective commerce-driver By Dan Butcher GAMING Mobile games as traffic driver? Worth a second look By Rimma Kats LEGAL/PRIVACY Greater focus on privacy is inevitable By Gonzalo E. Mon PAGE 24 LEGAL/PRIVACY Expect mobile and online behavioral advertising legislation By Adam Snukal MERCHANDISING Merchandise SKU and mobile store functionality are winning combo By Rimma Kats MULTICHANNEL RETAIL SUPPORT Thread multichannel assets for engagement with mobile consumer By Giselle Tsirulnik PAYMENTS End of premium SMS micro-billing? By Dan Butcher RESEARCH Top mobile commerce stats to remember in 2011 By Rimma Kats REVENUE Sky’s the limit for mobile commerce sales By Dan Butcher SEARCH Properly executed mobile search marketing will drive sales By Giselle Tsirulnik SOCIAL NETWORKS Consumers will respond to location-based social promotions By Rimma Kats SOFTWARE AND TECHNOLOGY It’s all about Near Field Communication By Dan Butcher WEB SITE AND DEVELOPMENT Mobile Web underpins mobile commerce’s growth By Giselle Tsirulnik
Mickey Alam Khan Editor in Chief mickey@ napean.com
Dan Butcher Associate Editor dan@ mobilemarketer.com
Jodie Solomon Director, Ad Sales ads@ mobilemarketer.com
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Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011
Mobile set to influence retail, on-device shopping
his year marks a turning point in mobile commerce as more retailers realize that a transaction-ready and shopper-friendly mobile store is no longer an option but increasingly a necessity. Mobile commerce’s good days are about to begin. As Mobile Commerce Daily’s Mobile Commerce Outlook 2011 shows, all facets of mobile are showing tremendous strength. Not suprisingly, mobile Web sites are leading the charge in mobile commerce, followed by applications and SMS programs designed to drive traffic to mobile and in-store destinations. This compendium is designed to help retailers and marketers navigate the world of mobile commerce this year. For followers of ecommerce, the landscape looks awfully familiar to the early days of the Internet: lack of standards, clunky interfaces, difficult transaction process and page pull-up speeds that don’t meet the demands of today’s impatient consumer. But a little patience and lots of best practice will resolve most of these salad-days issues for mobile commerce. In this Outlook, senior editor Giselle Tsirulnik, associate editor Dan Butcher and editorial assistant Rimma Kats have ably outlined what to expect in mobile commerce this year. Each article is worthy of a serious read. Many thanks to them and to those industry experts and columnists who helped for their hard work and also to Rimma for her art direction on this edition. Sky’s the limit for mcommerce The mobile commerce opportunities for retailers are several. First, mobile expands the number of channels for retailers. Contrary to what the Internet did to other channels such as the catalog, mobile will have an incremental effect on overall retail sales, and not cannibalize ecommerce. Second, mobile adds legs to other channels. Expect mobile tactics such as SMS marketing to drive traffic to stores with incentives such as coupons, alerts, discounts, new-merchandise updates and store openings. Third, mobile adds a social element to the shopping experiPAGE 3
ence. Happy shoppers will tweet, Facebook Like or post positive comments on feedback pages if the retail experience on mobile or in-store was satisfactory and more. Fourth, mobile allows for price and product comparison on the spot. While this is a double-edged sword – after all, Amazon is poised to become the de facto mobile comparison shopping engine for mobile commerce – it also offers a new layer of transparency to the shopping process. Fifth, mobile is an excellent marketing channel for retailers. Its potential to add to the overall customer loyalty program is mouth-watering. If there is one area that retailers are neglecting it is this: they are not moving fast enough to capture opt-in mobile numbers to market to consumers. A CRM program without a mobile component is an incomplete program. It is a must to communicate with customers in the channel they are most comfortable with, and that today is mobile – via SMS and email. Remember ecommerce? Of course, mobile still has issues such as security concerns over transactions on the phone and lack of frictionless payment options unless the mobile store relies on the consumer data stored on the ecommerce site. Add to that screen size, page load and site and application design and utility issues that need to be resolved and, of course, the back-end infrastructure that needs to tie into the ecommerce engine for order fulfillment, returns and everything else. Having seen the Internet and ecommerce’s growth since the early 1990s, this writer has little doubt that mobile commerce in 2015 will be every inch as sophisticated as ecommerce in 2011. This year marks the first long stride toward that possibility. Let the Mobile Commerce Outlook 2011 embolden retailers and marketers to sprint ahead in mobile commerce.
Mickey Alam Khan email@example.com
Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011
Mobile advertising to drive mobile commerce sales
By Giselle Tsirulnik
etailers and brands will this year rely heavily on calls to action that link the consumer to the store nearby mobile advertising to drive traffic to their mobile are key. commerce-enabled Web sites and applications. While much of this advertising will drive direct converEBay and Amazon alone generated more than $2.5 bil- sion to commerce, even more will drive people into the lion of mobile commerce sales in 2010, so the opportuni- stores or toward permission marketing relationships for ty is proven. While the market is clearly exploding, most future conversion. major bricks-and-mortar retailers and manufacturers are only now building their mobile storefronts to tap into 3. Social media. The easy integration of social media calls to action within the mobile ad campaign are critical. mobile commerce. “While many of these brands in 2010 used to buy the shiny-object marketing tactics for mobile, many of them are moving to performance-driven mobile marketing combined with mobile storefronts in order to effectively execute against the huge opportunity that mobile commerce presents,” said Anne Frisbie, vice president and managing director of North America at mobile ad network InMobi, San Mateo, CA. “While the selling of digital goods via mobile devices represents a huge opportunity, mobile campaigns should also be leveraged for influencing offline purchases through the sign-up of consumers to sales and offers or calls to action that allow store location lookups or the ability to phone your local store,” she said. Staying on track The winning mobile advertising strategy for retail commerce in 2011 contains the following three elements: 1. Tracking and optimization. Many players currently take a spray-and-pray approach to mobile advertising. What is needed is a mobile-optimized storefront with back-end measurement of conversion and optimization based on that knowledge. 2. Local. One of the best applications of mobile is its local advertising capabilities. Yet many brands and retailers have not truly embraced it. Promotions, events and new products and services with Again, these possibilities are present, but not really tapped by brands. Strong narrative “The infatuation with iAd and other mobile advertising plays built exclusively on high-end ads will end quickly,”
Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011
InMobi’s Ms. WA. PAGE 5 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . “There will be some natural friction between these two important players in the retail ecosystem. Full use of these calls to action and creative storytelling will help consumers discover and convert. find and transact quickly. execute at scale.” she said. Frisbie said. retailers and brands need to understand what their value proposition is to the mobile search user. “The value of the landing page – whether it’s product information. “In addition to reach with impact. Glavin said. manager of the ing. incorporate social media.” Mr. Redmond. Timid trial buys will only put brands behind their more aggressive competitors. Mobile actually offers the ability to send multiple impressions in a short time. according to Dennis Glavin. Microsoft’s Mr. The extension of ROI is critical and it ties to the most important use of the mobile phone. I want to drive consumers who want that national brand into a particular retail store but not its competitor’s store. Next.” “As a retailer.” he said. combined with these compelling creative opportunities. tell a story through creative. There’s a big opportunity for retailers who are able to leverage national search advertising in their local campaigns. is now unlocking – namely. in terms of mobile search advertising. and interstitials.” Best practice It all starts with having a mobile-optimized and meaThat said. engaging ads that will be easy to build and implement such as videos. the next step is to construct a mobile campaign and landing page strategy that best delivers that immediate action to mobile consumers. a local store locator or a special offer – needs to be an integrated part of the paid mobile search campaign. “Mobile consumers are looking to search. Glavin said. Frisbie said. Drive traffic to it using mobile advertisretailers. Finally. “Scale and performance is the real value of mobile advertising to retailers. often with 100 percent share of voice. “The real promise of mobile Microsoft. Glavin said. there are challenges ahead for brands and sured storefront.” Mr. the key to fully unlocking mobile commerce is the call to action. Third. I want to drive sales of my product across my retail channels. expandable “As a national brand.” he said. “From there. “Campaigns can once again tell a story – not unlike TV and radio – and offer consumers multiple ways to engage. Ms. North American mobile search advertising business for Second.
inapplication transactions and applications that redirect users to a commerce-enabled mobile site have to be handled differently. “In the second instance. CEO of Mashery. and suddenly I’m taken to a browser page to er experience. booking a ticket within the American Airlines app. “If you’re talking about mobile commerce. and it doesn’t let me do a transaction inside. an app is involved—one version is someone uses an app and that app internally completes a transaction. for example. San Francisco.” said Oren Michels. and this year will see more sophisticated measurement both within the mobile medium and across channels. a site that people buy stuff on. I click in three basic concepts—the first is the mobile Web brows. case. “In the third version.” PAGE 6 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .that app.” he said. I go to an app.ANALYTICS Analytics key to multi-platform mobile commerce By Dan Butcher C ommerce transactions conducted via the mobile Web and applications require their own unique analytics. “You’re doing the same analytics as you’d be doing on a desktop browser. While transactions on the mobile Web can often be tracked in the same way as they are on the PC Web. you’re running essentially traditional Web analytics. there are “When I want to complete a transaction. and in that complete the transaction. but it helps me find what I want.
bar code product lookup. Austin.” Widgetization of mobile apps he said. and product videos. it is expected that half of the population in the United States will use a smartphone. The biggest challenge with applications continues to be how to reach enough consumers to move the needle for Location will continue to be a catalyst for making other a large business. according to Amsymco.” By year’s end. BlackBerry and Android devices to reach and develop a personal relationship with their most loyal customers. Dunlap. “It’s important to note that mobile continues to be more effective in driving in-store purchasing than mcommerce. Dunlap said. “The new rich app features will be an asset to retailers and create tremendous value with shoppers as they will wonder how they ever shopped without their smart. ratings and reviews. San Francisco. Without doubt.” Mr. but instantly distributed to millions of people. “What we will see in 2011 is the widgetization of mobile application functionality. mobile applications will continue to be the best experience for discovery and purchasing as well as tying into social networks. vice president of marketing at mobile commerce platform provider Digby. more retailers will develop branded rich applications for iPhone. PAGE 8 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . Internet-based models more effective on mobile. As a consequence.APPLICATIONS Retail apps will be next-generation loyalty cards By Giselle Tsirulnik C yber Monday 2010 was proof that mobile has quickly become an option for consumers to buy goods and services. “This will be a great place for retailers and brands with good distribution to differentiate themselves. with sales jumping 300 percent from 2009.000 people. “Consumers will look to retailers to create even more value in their mobile shopping experience through the rich app by making the app the next-generation loyalty card that could allow for store check-in. A retailer or brand can launch its own application. vice president of mobile at JiWire. TX. special offers.” said Scott Dunlap.“IAd is a good example of this – rich functionalphones. ity in an ad that can do anything a mobile application can.” he said. per Mr.” said Dan Lowden. Purchases from tablets such as the Apple iPad are also going through the roof. where an entire app can be presented in an ad format. but rarely does it reach more than 100.
“By matching the application to the demographic of the customer base. or increasing sales with existing loyalists? Mr.” Mr. more frequent customer interaction and higher conversion rates.” Digby’s Mr. Digby’s Mr. Lowden said. the retailer can leverage the mobile commerce platform to easily add additional apps over time. “Features and deals only offered through the retailer’s app can help build a closer. create a mobile application that rewards loyalists for in-store visits and sends regular content. Will it be about getting new customers. more personal relationship with customers and drive incremental revenue. A retailer has the opportunity to overcome these thirdparty applications by delivering its own retail-branded mobile application that can provide unique and valuable experiences to customers so that its application is preferred. “From there.” Mr.Digby’s Mr. dip your toe in the checkin apps such as Foursquare. Dunlap said that those focused on new customers should consider mobile advertising and widgetized applications. For a loyalty play. Gowalla and shopkick. Lowden said that retailers should review what mobile device types are already connecting to their mobile site to determine which mobile platform is most appropriate for their customer base. Retail detail Retailers need to choose a mobile application strategy. retailers can see which rich app to focus on initially. Dunlap said. “If you don’t have the budget.” PAGE 9 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . higher average dollar order transactions. Lowden said a challenge for retailers is that there are third-party location-aware mobile applications that can actually pull customers away by doing price and product comparisons. Lowden said.
“In addition. Reinhart said. the usage rates of active mobile banking customers will increase across mobile Web site banking.” said tunities to realize operational efficiencies and cost savings by empowering customers to handle basic transactions and inquiries from their mobile phone. “We anticipate continued strong adoption by our customers. as opposed to waiting in line for a teller or ATM. transfers.” Mr. Mark Reinart. customers have the ability to make purchasing and account transfer decisions based on realPAGE 10 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . Multichannel integration An important part of the mobile banking evolution is multichannel integration. North Canton. OH. Through the integration of a financial institution’s various channels.. San Francisco. and generous data and messaging plans. Account alerts. deposit and withdrawal confirmations. said that a comprehensive mobile banking program provides numerous opportunities for both financial institutions and consumers to gain significant benefits and efficiencies. Michele Rene Scott. fuelled by adoption rates of smartphones and According to Diebold Inc. mobile banking solutions manager at Diebold. 80 percent keep their mobile devices with them at all times. Financial institutions must undertake several steps to ensure that they are investing in a service that their customers want and will use. vice president of online and mobile banking communications at Wells Fargo. “One challenge to achieving a valuable mobile banking solution is the need for financial institutions to evolve existing infrastructure and develop an open system that can securely incorporate the latest technologies and functionalities.” she said. mobile banking offers opporapp stores. app banking and text banking services. payments and two-way personalized communications are just a few of the ways the mobile medium is expanding the definition of selfservice banking. or contacting a customer call center. according to CTIA – The Wireless Association. Can numbers translate? The United States counts 270 million consumers as mobile phone subscribers. Of these subscribers.BANKING Anticipate strong consumer adoption of mobile banking By Giselle Tsirulnik T he consumer-driven movement towards mobile banking will continue this year and beyond. Mobile banking empowers consumers by giving them on-demand access and real-time information to securely manage their finances.
mobile signup can be offered and tracked conveniently and securely at the ATM. Signup for mobile banking services typically occurs only through the online channel.” A major theme this year will be multichannel integration. Multichannel integration is at the foundation of the drive to give customers a consistent look and feel across every channel. “Financial institutions should continue to optimize the mobile banking experience to take advantage of larger screen sizes and touch screens in 2011. Scott said. and implementing a strong consumer adoption plan from day one. online. “Finally. “In 2011. financial institutions must realize the importance of developing PAGE 11 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . including tab. image capture and mobility. providing marketing materials to current and prospective customers and ensuring that staff is trained and available to help customers learn how to use mobile. and cusdevices and their user interfaces. It is also an important tool for customer retention. since financial institutions will have the ability to deliver consistent messages across every channel to educate customers about available services. branch or self-service channels. continue to rank banking functionality by customer demand and utility. A successful adoption plan includes developing criteria that lists specific target adoption goals such as assigning a project team with defined roles and responsibilities. “Think of cross-channel solutions and take advantage of the device capabilities such as GPS. per Diebold. in a branch office. while ensuring broad-based access to bank. “By utilizing multichannel integration.” Wells Fargo’s Ms. Reinhart said.tomers will want more availability and more account lets. ing for all customers regardless of their phone type or data or messaging plans [is key].” Diebold’s Mr. only 35-40 percent of financial institutions’ customers use online banking. Scott said. with a customer service representative or through an institution’s interactive voice response system. However. “Institutions need to listen to customers through multiple research channels. on a mobile device.details.” she said.time information shared by the mobile. Adopt to adapt For a mobile banking program to be successful.” she said. mobile banking will become even more main“Optimizing customer experiences for a range of stream as a channel of choice for customers.” Wells Fargo’s Ms.
fragmentaAlthough it is not set to officially launch until Janu. 1.” While Isis marks the most significant attempt by the carNFC and RFID riers to create a mobile payments standard. with participation from Discover Card and Barclaycard. “Many of the big POS terminal-makers are including NFC by default in most of their new hardware. whether it is activities around bill-to-mobile and carrier billing for mobile content and virtual goods.S. “I think 2011 really marks the point of ignition for mobile commerce and payments. “2011 is the year of building. we will see more contactless acceptance. carriers have much to accomplish over the course of 2011. per Isis. While the carriers are running initiatives related to mobile commerce outside of Isis. and this year will work together to lay the groundwork to try to create a nationwide standard for contactless mobile payments with Isis. Mr. Johnson said.” Mr. Johnson said that this is really the year where all of the infrastructural development for mobile commerce.tion will persist throughout the year. NFC-enabled handsets and hardware will become standardized in the market over the course of the year. carriers. as well as from the carriers’ standpoint. “Isis has paved the way by guaranteeing a market for that technology. WA. T-Mobile USA and Verizon WirePAGE 12 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . “Some of the infrastructural hurdles that have dampened or prohibited uptake of mobile commerce will begin to fall in 2011. so that constraint begins to fall down as merchants replace pin pads and signature capture pads—the replacements will be NFC-enabled.” said Jaymee Johnson.” he said. AT&T and T-Mobile USA. which has been a barrier. certainly with the Isis announcement. 2012 will be the year of launching. “That will pave the way for a running start in 2012. Isis is a joint venture between Verizon Wireless. ary 2012.CARRIER NETWORKS Carrier networks laying the groundwork for huge Isis launch By Dan Butcher C arrier networks last year in the United States finally realized the importance of mobile commerce. in general. Isis is certainly the most meaningful venture for three of the top four U. spokesman for Isis. “In 2011. Bellevue. but also announcements from mobile OEMs and OS-makers around NFC.” priority No. will begin to be put into place. AT&T Mobility. where these things are actually out in the wild at scale in significant numbers. with Near Field Communication and Carriers collaborating on Isis radio frequency identification (RFID) infrastructure as With Isis.
“Similar to this year. “Isis will have a big role in moving conless. from the Wholesale Applications Community to Isis.” PAGE 13 “That’s a big deal for merchants.S. because it will give them one standard to focus on. “I don’t see any meaningful market penetration in 2011.” said David Schropfer. which tend to be grand ideas that are slowdeveloping. but I don’t think it will have an impact on 2011 on any of their businesses. “Isis may not even have a market test in 2011. slowbuilding consortiums and a lot of initiatives to sort out. they start squabbling. so there might not even be a single application in market at all this year. NJ. from the dominance of the App Store. “This year there will not be a significant number of calls-to-action other than participating in tests.Rough seas or Isis? At first blush. partner at The Luciano Group. Isis seems formidable. are teaming up tactless mobile payments forward in to rollout a national mobile commerce network that will 2011. Some analysts see the Isis rollout as too deliberate. The initial focus of Isis will be on building a mobile payment network using smartphone and near field communication (NFC) technology to streamline the payments process for consumers and merchants. but I predict that they’re going to be relatively isolated.” Mr. senior analyst at Strategy Analytics.” Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . “Carriers have talked about developing mobile implementations. the influence of OEMs over consumers. along with Discover and Barclaycard. it puts them in a better position. standard.” said Josh Martin. the carriers will face significant hurdles in 2011. Red Bank. “Frankly. Boston.” he said. Isis expects to introduce its service in key geographic markets towards the beginning of 2012.” he said. and the carriers need to move forward with a sense of urgency to stake out a dominate position in the mobile commerce ecosystem. “We may see some market tests. independent players in the mobile commerce and payments space should not despair. no meaningful share of transaction volume through the mobile commerce channel. will be able to use the exact same sale purchases. I see carrier participation in mobile payments not impacting retailers in a meaningful way this year. because for the first time.phones in the U. but usually the way things work is that there’s a lot of talk and then when there’s money to be made.” A lot of innovation can happen in a year’s time. However. “They are predicting 18 months from the time of the announcement. Schropfer said. rather than many. “The carriers will position themselves in 2011.” he said. “If any of those come to fruition. 70 percent of the mobile let consumers use their mobile phones to make point-of.
Marketers such as State Farm and Amazon as well as book publishers are taking their content to mobile handsets and creating interactive user experiences. Brands need to realize that mobile should be an integrated part of a company’s overall marketing and sales strategies. “This means identifying the most important features for the customer on-the-go. president of Usablenet.CONTENT Content integration pivotal to mobile utility By Rimma Kats I ntegrating social media and location-based services into mobile content will be an important trend this year. retailers will need to create specific marketing strategies and promotions to maximize this new opportunity. Content with context As mobile’s significance grows as a medium. Tablets will require their own optimized experience as consumers increasingly use those devices to access company sites. and creating a user interface that is mindful of a much smaller screen. Android and BlackBerry devices. Taylor.” According to Mr.” said Nick Taylor. New York. brands looking to expand their content to mobile should not only look at iPhone. rather than an afterthought. “Brands should make easily accessible those features that reflect the most immediate on-the-go needs. Companies including State Farm are offering services PAGE 14 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . “It’s important to consider mobile user behavior when creating the best possible customer experience. but also tablets.” he said.
Apps need not ape Users accessing Apple’s App Store or Google’s Android Marketplace can view many applications that fit their lifestyle needs. information about the brand and what it stands for and also data capture. rich media. but to catch a consumer’s attention marketers must remember to create a consistent feel. per.” Usablenet’s Mr. brands are realizing the potential of mobile and process online. “Customers are easily frustrated and are always oneclick away from not completing a transaction. to start the shopping Indeed. Mr.” Mr. “So creating an effortless mobile commerce experience is necessary. Taylor said. especially with the proliferation of HTML5 and ity into both mobile Web sites and branded apps.and vice versa.” sonalized coupons and content. and incorporating key content Mobile Commerce Daily MOBILE be able to seamlessly features in their mobile-optiCOMMERCE mized sites. Taylor said.” he said. OUTLOOK 2011 complete this process on their phones later. Incorporated features include social functionality. but should incorporate key content features. A brand’s application need not mirror its Web site. applications and calls to action. Taylor also said that it is very important to have tracking for ROI and user behavior. where consumers can sign up for more information. such as talking or finding an agent and getting on-the“This allows a customer road assistance to consumers via a mobile application. “Maintaining consistent information and functionality from their existing Web site to mobile is important for an adequate mobile content strategy.“Consider integrating key Web features and functionallar. PAGE 15 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . “A great example is keeping log-in information and customer history interchangeable across channels. Mobile content such as video is also becoming popu.
“When it comes to mobile. turn. “There is little room for failure in mobile as it’s a missionwhile delivery of right offers and information to the right critical medium.” Taking the time to test ideas and strategies to estab- PAGE 16 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . and customer relationship management. president of ecommerce and cusare critical success factors for mobile marketing tomer experience at footwear retailer Steve Madden. which in New York. can drive mobile commerce sales. Order shipment notifications that does. consistent and measured uses of databases said Andrew Koven.” places on time will be requirements.sults. consumers want instant reRetailers this year will be marketing heavily to their opt.DATABASE/CRM Mobile database essential for driving direct commerce By Giselle Tsirulnik P roper.” he said. and quick response to questions driven by a click-to-call feature or a live chat capability will be the new norm. Top database … “There is little room for delays and misses in mobile. “But here’s the risk – fail to deliver and ed-in mobile subscribers to push them to make mobile I think the consumer will move on to another option commerce transactions.
” Mr. Consumers currently receive mostly general discount messages from major retailers. … then tap Mobile coupons. Koven “How to target mobile databases in 2011 is really a bigsaid. en. Using the mobile database to build out a social media strategy will also be key. Location-based mobile rewards to opted-in consumers will be key in 2011. Koven said.” Mr.” Mr.” bile database first. Koven said retailers need to do a much better job of building their mobile databases from the get-go. Expect to hear a lot in terms of geo-fencing. for example. private sales. Discounts and rewards via mobile challenges to mobile database members will be a hot trend as well. discounts.” he said. Koven. what tactics will be used to build the moand this will take time to strike a balance. will be one trend to expect as this year progresses. and that building a mobile database is essential for the future of direct commerce and communications. “It’s essential as a marketer and customer-experience builder to realize the value of a mobile phone number for long-term CRM. as geography plays a big role in driving consumers in-store. PAGE 17 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . Getting consumers to join a retailer’s Facebook of Twitter page. leading to more sales. But that may have to change. in particular. “I believe as retailers that we can drive sales when ger. contests. we send information that makes sense beyond coupons “Specifically. alerts for flash sales and special offers are obvious drivers of sales and will continue to be used this year and beyond. multi-part question.. “We will see branded content. it’s not as meaningful strategically. Yet this will take time.cation-based alerts.” deal. “I’ve stopped looking beyond professional interest – as a consumer. Koven said. how-to videos gage and endear consumers to the brand more so than a and special offers for sure. per Mr. which can be Sending discounts to consumers as the default standard made directly via mobile or originated via mobile and use of the database is a slippery slope which Mr.lish a strong database with the proper levels of customer information leading to a high degree of segmentation are key callouts for mobile databases. thinks leads to a false-positive read for the long term. Koven consummated in a store or online. loRetailers should be developing strategies that excite. style tips. Mr.
managing partner at Web2Mobile. optimized email communications offer. to make a mobile commerce experience seamless requires choices and decisions of what products to serve and when—it cannot be a mirror of a desktop experience. to allow users to find deals on the go and buy products exponential growth in the number of people checking when and where is convenient for them. Toronto. Hall said. “The most important thing to keep in mind is not to replicate a desktop experience. “Mobile users have different behaviors and can be a lucrative.Render bender phones. targeted offers and see what appeals to the mobile user base. thus rendering ads and images ineffective in emails read on many smartphones. Choose fewer. applications growth in the retailers and deal-finding Web sites using and social media are all growing steadily. “Mobile users want wonderful deals and they want relevant content.” she said. the mobile Web. “The opportunities are to offer consumers an end-to-end Email is still an important notification and communica. the use of email is increasingly important for While no one doubts the opportunities that mobilemarketers to consider.purchase experience that is fully optimized for mobile tion vehicle for consumers.email marketing to catch mobile consumers. per Web2Mobile. Now that more than 25 percent of consumers in the United States have smart. Many email clients block images.” said Debobile email will remain an effective means to rah Hall. retailers and merchants need to keep in mind. some potential pitfalls remain. there has been significant The issues and challenges for marketers are to get the appropriate technology in place to be relevant for consumers and to make the user experience on mobile devices seamless. their email on mobile devices. spontaneous audience if the content is delivered PAGE 18 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .” Ms. “In the last few months. drive commerce this year. There are several factors that marketers.EMAIL Mobile-optimized email can be effective commerce-driver By Dan Butcher W hile SMS. so there will be continued. given that many emails will be viewed by their target consumers on a wide variety of mobile devices. Also. Rendition of email on different mobile clients continues to be a challenge. mo. MMS.
” she said.” she said. “Look to the recent Facebook announcement as to where online communication is headed. chief marketing officer of Message Systems.How. Marketers who are tuned-in to the wants and needs of their customers and deliver messages how.” PAGE 19 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . “Marketers will need to think more holistically about ways to influence and leverage that context in prompt“Consumers do not have the patience to wait on bad ing response. And with those powerful Web-enabled devices. Hall said. Lewis said. The opportunities and challenges for marketers in reaching customers via mobile email are the same—relevancy. Now. there is no lon. it will also require attention to how the message is this year.“And given greater access to various applications and ger time to take a leisurely approach to mobile email. In short.” he said. bile. San Francisco. when. it’s not just about email anymore. the broader context in which the message is delivered and viewed cannot be ignored.he said.” Mr.” Ms. what Marketers must always make sure that their email communications have contextual relevance for consumers. your customers will go to your competitors. and that is certainly a trend that will accelerate and take new forms in the year ahead. where. per Message Systems.” “If your sites and emails are not optimized for mo. and marketers need to look beyond it. consumers will increasingly dictate the terms of online communication. appropriately. Marketers may have had time in 2010 to test and implement programs to see what works. when and where they want them will break through to success. More consumers have smartphones loaded with applications. Those who do not will be left to explain their dwindling returns and declining brand loyalty stats. constructed for viewing in a mobile environment. “In a real sense. social connections. [consumers] are redefining the boundaries between the offline and online experience.” said Dave Lewis. “It’s already happening and will accelerate in 2011. experiences. There will be a higher sense of urgency for brands and “While success demands greater segmentation in targetagencies to mobile-optimize their email campaigns ing.
retailers will be able to work with informed. providing product reviews in communities or sharing relevant videos will continue to move to the “In 2011. said Robert Victor. sions and merchandise over the social graph right at – or in close proximity to – a point of purchase. New York. consumers were encouraged to check-in to stores or nearby locations to earn points that could be used to buy branded H&M virtual goods in the application.6 million branded impressions. The campaign delivered 10.” “Games. “We did the same with Powermat. Untapped games Mobile location-based services are an untapped resource for retailers. vice president of product and strategy at appssavvy. we suspect a rise in mobile Web applications. The rise of applications and location-based services are set to change gaming in the mobile commerce channel.” mobile device.” he said. In the case of H&M. “AdGaming sites and social networks are creating a huge ditionally. per Mr. to friends.GAMING Mobile games as traffic driver? Worth a second look By Rimma Kats A lert marketers are noticing positive trends in mo.” he said. PAGE 20 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . tions near bricks-and-mortar stores. retailers such as Swedish trendy apparel chain H&M use mobile games to drive awareness of their new fashion line. appssavvy worked with H&M to drive bile payments for digital goods and engaging con. social activities like recommending things demand for user-friendly purchase mechanisms. Victor said. but lighter social communications platforms like Twitter and Facebook may be able to gradually move back to the Web. “Look at Facebook – they “This year. “The campaigns were wildly successful. Victor. Appssavvy used location-based services in a Powermat campaign where it rewarded consumers for in-application activity and interaction with its brand in Booyah’s MyTown location-based game.” Mr. location-based services and productivity tools will still require the raw power and access to the phone’s services like GPS provided in downloaded applications. Additionally.in-store visits by leveraging check-ins at relevant locasumers via mobile campaigns and applications.“Earlier this year. haven’t created an iPad application yet and I’m not sure social consumers to help make the best purchase decithey really need one.
” their scores. “They Victor said. and participating in social games. Branded games can help a company get the word out about a certain campaign.Like social Financial services firms such as Barclaycard target consumers via mobile branded applications. The marketer rolled out a Rollercoaster Extreme game that lets consumers play with other players and share “We’re building support for brands to connect with people through social activities across all of these platforms. to grow quickly on mobile devices. can greatly benefit from this phenomenon. “Other than device improvements. an important catalyst to the move back to Web applications is Facebook continuing to make it easy to leverage the graph on mobile.” Mr. Mr.” PAGE 21 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . connections has opened up an amazing opportunity with “People are performing activities with their friends like portable social activities. communities. will be split between utilities in applications like Four“Improved mobile devices and access to high-speed data square and connection services like Twitter. “Every brand.” Mr. engage users.” he said. Victor recommends that retailers leverage social activities in their mobile games. “Let people share their purchases with friends and cre“Social and communications applications will continue ate utility by advertising within social activities. Victor said. joining and participating in retailers. but at the same time. not just watching and sharing videos.” he said.
challenged by Florida’s tain verifiable parental consent before they collect. Mon is a Washington-based partner in Kelley Drye & Warren’s advertising and marketing law practice. and (b) regulators may see red flags. For example. the investigations.com. even though that But where marketers see exciting opportunities. the FTC announced that it would begin its review in 2010 to deal with rapid advancements in technology. PAGE 23 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . Disclosing costs in the fine print is unlikely to satisfy laws in any state — instead. marketers have gotten in trouble for contracts when making disclosures. top cop agreed to pay $1 use or disclose personal information from children million or more to settle under 13. Some wireless carriers have also agreed to include provisions in contracts with third parties that dictate how certain disclosures must appear. but buried costs in the fine print. Although the FTC was due to review its COPPA Rule in 2015.The FTC invited the public to file comments by Jan. one company paid $7 million to settle accusations of sending unsolicited text messages. Fortunately. pared to adapt to changes in the legal landscape. For instance. 31. Among other things. Many companies have also gotten in trouble for failing to clearly disclose offer terms. the law requires companies to get consent before sending text messages. Mobile marketers may want to take this opportunity to provide input. As technology continues to change. failing to get consent before sending text messages to consumers. the mobile medium is going to offer marketers more opportunities to interact In a series of lawsuits. ReGonzalo E. the FTC asked whether the rules should be different in the mobile context. with mobile issues. many law was enacted long before the advent of SMS. Disclosures and consent Make sure you consult these settlements and the carrier In recent years. courts essentially determined that with consumers. (a) many text message campaigns are subject to the Telephone Consumer Protection Act. New regulations and enforcement actions may be on the horizon. it is relatively easy to avoid these problems. Many of the companies COPPA generally requires Web site operators to ob. costs should be The FTC is separately considering whether the Children’s presented in the main Online Privacy Protection Act should be updated to deal body of the offer. Reach him at gmon@kelleydrye. view the Mobile Marketing Association guidelines for instructions on getting consent. the Florida attorney general has challenged companies that advertised “free” services. so marketers must remain vigilant and be preThe costs of getting this wrong can be high.
presumes – it has a voice in the privacy debate. this year will inevitably see some form of privacy legislation privacy is low-hanging fruit. Moreover. agencies and networks. mobile will this year finally get the credit it deserves.Do not be naïve and underestimate the effects and concan Party that earnestly needs to prove it can balance sequences that privacy legislation will have on mobile. it laid the foundation for what is to come this year and beyond. While I am a firm believer in self-regulation in the area of online and digital behavioral advertising. As an attorney who represents advertisers. Year of inflection That said. being passed. with a squabbling Congress and a Republi. consumers as well as the economy. the welfare of U. summaries and studies that seemingly get released in droves these days by one agency after another in Washington that assumes – or better said. Mobile site development agreements have replaced the seemingly ancient Web site development agreements. current efforts in this area may not be enough to stave off legislation. Geo is targeted Between the two separate consumer privacy-focused bills currently pending in Congress and all of the privacy reports. I am now seeing a major increase in the number of mobile-related campaigns. and networks are now pushing mobile to their advertiser clients with vigor. PAGE 24 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .S. projects and deals that come across my desk. Geo-targeting has already been tagged as one of the areas that legislators see the need to protect. Mobile media-buying terms now seem commonplace in media buying agreements.LEGAL/PRIVACY Expect mobile and online behavioral advertising legislation By Adam Snukal A lthough 2010 did not mark the year in which the mobile industry saw the passing of watershed legislation or game-changing technological innovations.
it is important to have a mobile-specific merchandising strategy within these destinations to drive sales.” Pushing right buttons Personalization on a mobile site could mean many different things. Merchandising on mobile means understanding the mobile user specifically and how this person differs from shoppers on the PC. cofounder/CEO of shopkick. which launched its mobile commerce-enabled site Oct. “If getting people into the store is so important. “Our entire outlook is mobile. A good example is Baby Phat. then why does nobody reward consumers for walking into the store – why only for actual purchases?” he said. San Francisco. Tracking consumers once they are on a retail site or mobile application is a good way to serve that person relevant products and up the chances of a sale. “Giving shoppers an incentive to visit is the first step in converting them to loyal shoppers. It could mean that a consumer is tracked once she visits a retailer’s site and is shown products according to the parts of the site clicked on. New shoppers are assigned a cookie when they land PAGE 26 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . “All indications from our first several months in market show that the outlook is positive.MERCHANDISING Merchandise SKU and mobile store functionality are winning combo By Rimma Kats W ith a growing number of retailers using mobile sites and applications as mini-storefronts. 4. Many retailers have yet to address the mobile commerce opportunity of implementing personalization as the basis for their optimization. Because mobile shopping sites display little content. it is paramount that all offers and products are relevant to each consumer.” said Cyriac Roeding.
” Mobile users are on the go and looking for information quickly. marketers should focus on consumer needs. we’re looking to expand our reach to other bile applications where consumers can search for the mobile devices starting with Android and the iPad. “Now that data has been collected with these first launches. This type of behavioral targeting is ideal to try and drive sales through product recommendations to users who search a mobile site. finally.” products they need.” said Jeff Wiscot. But even before the shopper clicks on an item or category. Wiscot recommends that retailers make their mobile is important on a mobile site.” It is key to also incorporate larger images to compensate for small screen size – although another school of thought believes this increases page load times – and an easily located “Back” button for navigation to the previous page. Including a search functionality front and center Mr. Aliso Viejo. “The focal point should be the product the visitor is searching for. the Baby Phat site personalizes the homepage based on how that person arrived at the site – for example. provide the most common desired details on the landing page and. checkout.” he said. “We are projecting 400 percentplus gross merchandise value growth in 2011 from Brands can also use this information down the road to mobile customers. They should study what customers are browsing and searching and make the shopping experience easier. Mr. “Mobile customers look for speed and simplicity when shopping. step of the way for the most effective optimization.” “Purchase” and “Add to wish list.on http://m.” merchandise products and product categories to that particular user. Soft landings When incorporating mobile. which begins tracking from the first click. retailers will now use the information to construct roadmaps building on successful results. so that consumers can find merchandising strategy fast and simple and test every what they need with speed and ease. Top functionality on a mobile site should include tabs such as “Search all products.“In 2011. “Many large retailers launched mobile beta programs in 2010. vice president of marketing at Buy. give them a seamless PAGE 27 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .com. from a paid search keyword. Wiscot said.babyphat. CA. Online retail firms such as eBay and Buy.com have mo.com. “Give them fast resources to find a product when they’re on the go. as well as a “Homepage” or “Homescreen” tab to take the visitor to the opening page.
comparison a snap. mobile applications such as Red Laser and more is to evaluate each of these activities and determine threatening to other retailers.for brand engagement can lead to shopping anywhere. which is a fantastic channel for delivering timely. viewing product reviews. have made price where the intersection points are with the retailer’s cur. thread opportunities for engagement with a consumer using a mobile device?” he said. Form and function The key to multichannel mobile engagements is to first understand each type of mobile form factor and what these devices can and cannot do for the user.” Mr. “We also believe that social media integration within the mobile commerce sites will become an essential tool for driving organic traffic to those sites. texting or sending a picture to Anytime. stores.Mobile commerce is rapidly changing the way that conparing prices. president of mobile commerce platform pro. Amazon. Timpson said.” he said.MULTICHANNEL RETAIL SUPPORT Thread multichannel assets for engagement with mobile consumer By Giselle Tsirulnik M obile will be key for online and bricks-andmortar retailers to grow overall sales this year. visiting a mobile Web site or application. PAGE 28 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . marketing. how does a retailer use their current as. Mobile shoppers are spontaneous and the opportunity “In other words. call centers – to vider Siteminis. The top activities that consumers use their mobile device in shopping are calling. The mobile Web will become the most essential channel for retailers because it offers the best discoverability via search. relevant offers that drive in-store and online traffic. More“The key to a comprehensive strategy in the mobile space over. New York. Shopping is no longer limited to those times when in a brand’s store or visiting a Web site on a computer. senior vice president and director of digital innovation and strategy at MSLGroup Digital. anywhere shopping someone regarding a potential product purchase. mobile-savvy merchants will look for innovative ways to engage mobile shoppers in ongoing mobile communications programs via SMS.sets – like employees. actually making purchases or looking for deals and coupons.” said Webster Lewin. Atlanta. “Also. rent business attributes. per Steve Timpson. com. sumers manage their own shopping time. It can also drive mobile users to branded applications that offer an even more optimized shopping expertise tailored for specific devices.
mobile strategy. Lewin said. mobile Web and in-application display banners. Channeling platforms Siteminis’ Mr.” Mr. Many retailers already understand that the mobile consumer is a more engaged consumer. Tactics will build upon those that have proven to be effective including paid mobile search. we see the desire consumers and reach plus frequency is more important by retailers to create a user experience on the mobile than device bells and whistles for retailers at this point Web as the most important foundation point to their in the mobile space. “Apps are definitely in the mix.” PAGE 29 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . the highest frequency mination for app development and deployment must be of engagement. As more brands adapt to that reality this year.” MSLGroup’s Mr. frankly. applications.” he said. there will be more sustained and consistent efforts driving consumers to mobile shopping sites and services. much of the mobile shopping activity can ultimately lead to a sale in-store or on the desktop Web site. Timpson said. thought through carefully.“Because mobile has allowed virtually any time to be shopping time. “The mobile Web will offer the most flexibility in creating cross-channel interactions with the largest group of “Painting with a broad brush. a retailer has the farthest tion of operating systems and form factors. but with the fragmenta“From this basic starting point. Timpson said a high-functioning retailer will incorporate mobile Web. the deterreach for customers and. as well as SMS-powered coupons and loyalty programs. so brands need to monitor their customer’s activity across all channels. social media. however. SMS and email into its mobile portfolio.
“There is no dispute that mobile payments are impornology include the BlackBerry Bold 9650. NFC chips will finally be installed in hand“We are looking for. a mobile contactcome under scrutiny from less payment solution is now included in the list of Visa the carriers. Smartphone models compatible for use with this tech. bile wallet to replace cash and plastic. However. researched purchases. that model has For the first time in Visa’s history. which want to compliant products. the number of players and PAGE 30 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . the mobile Web and applications are becoming more commonplace. ality. security and plenish virtual currencies usability testing of the via premium short messagVisa payment functioning service.” he said. In 2011. “Visa has established a Third-party mobile payments companies such as Boku and new compliance testZong have thrived largely ing process for mobile by enabling online gamers contactless payments and social networkers to that includes extensive buy virtual goods and retechnical. increase the prevalence of direct carrier billing. and the Android-based Samsung Vibrant number of transactions. North America through fully integrated NFC That infrastructure will eventually enable the moand microSD technology in 2011. Galaxy S. with online retailers such as Amazon and eBay successful driving sales through those channels. For the iPhone. representing three of the leading mobile operating systems in the world. Mobile payments via SMS. Visa accountholders will use a protective case that incorporates a microSD slot.” said Dave Wentker.PAYMENTS End of premium SMS micro-billing? By Dan Butcher M uch of the groundwork that was accomplished in the mobile payments ecosystem over the course of 2010 will start to pay off this year as transactions via various mobile channels enter the mainstream. reducing the head of mobile products at payments franchise Visa.sets such as Google and Samsung’s Nexus S and contactward to advancing less payments terminals will be installed more broadly at mobile payments in bricks-and-mortar retailers’ point-of-sale locations. The case was developed by DeviceFidelity and has been tested in trials with financial institutions. friction of everything from impulse buys to wellSan Francisco. and in 2011 we’ll see significant growth in the 3GS and 4. iPhone tant. or PSMS. Chips fall where they may In addition. the biggest leap forward will come from commercial deployment of Near Field Communication technology.
$2. where the offerings have to fit into one of several buckets— $0. has communicated that they will no longer allow micro-billing via SMS.” he said. Preena said the user experience of premium SMS was needs and merchant needs. retailers and publishers. ting stronger. the amount of time mobile payments companies are getting in front of brands.” he said. as merchants are losing a significant amount of their conversion ability. $1. “That is another reason premium SMS is not interesting for mass merchants. San Francisco-based consultant for Payfone.” “In 2011 there will be a lot of growth and a lot of infrastructural changes and change in how carriers approach mobile payments. there is not a lot of flexibility. people putting Premium woes themselves up for sale— A certain percentage of premium SMS transactions fail it’s not going to be a case in 2011 of the strong getfor one reason or another.not made for microtransactions.99. “In the last 18 months. “However. a significant amount of traction has been achieved to use premium SMS for offdeck content.” he said.” said Poojitha Preena. we’ll see announcements by the carriers that they will no longer allow micropayments via SMS—at least one top-tier carrier in the U. premium SMS. because from a merchant perspective. according to Payfone. “In [this] year.” Mr. is not well suited for microtransactions—it makes the current model unviable.99 and so on. “Premium SMS is dead.” PAGE 31 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . while highly suitable for ringtones and wallpapers.S. those coming up with new ways to meet carrier Mr. some mergers-and-acquisitions activity. it will be a case of the innovators getting strong.99. Preena said. He calls it a fixed tariff product. “What you will see in 2011 is a significant amount of change from a transaction standpoint. which is going to create a significant issue.
value of digital and physical goods that consumers buy PAGE 32 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . Google’s Android Marketplace.2 billion in 2011. Research In Motion’s bile commerce and payments. according to Juniper ReBlackBerry AppWorld and Windows Phone 7 App Store. exceed $12 billion by 2014. Applications will continue to be key drivers of moStore. one-third of U. The market researcher predicts that by 2012. 2. Here ing handsets in the retail cycle.per Research reported that the mobile retail market will abled smartphones and access to app stores. Mobile alerts will drive one out of three recipients coming year: in-store and 27 percent of those consumers will make a 1. Consumers are continually optfinancial services. so will the amount of data leave home without their mobile device and are includspewed from all the players in the ecosystem. With the success of Apple’s App 5.RESEARCH Top mobile commerce stats to remember in 2011 By Rimma Kats M obile commerce sales will this year increase 3. according to sumers are open to having their financial information Placecast. according to Data Innovation. Seventy percent of smartphone owners use mobile purchase.ing in to a retailer’s mobile application and. search. The mobile retail market will continue to grow. sion to buy products in-store. per Placecast. are some stats that indicate what to expect in the 4. Junidrastically as more consumers have Web-en. especially when retailers have recognized that consumers will not As mobile commerce grows. the the application market will reach new heights this year. This is no surprise.S. according to Gartner. consumers who are signed up for the alerts say that such services affect their decion mobile. Mobile app store revenues will exceed $6. Con.
the company expects mobile sales to double by the 2011 15. mobile online shopping excluding travel in the United States doubled to total approximately $3. according to a study 6. according to Scanbuy. ABI Research predicts that mobile online reflecting increased adoption of smartphones for every. For 2010.2 billion in 2009 to around $2.$1. 11. A study by Sybase found that 32 percent of consumers fer the mobile Web site and 38 percent prefer a mobile would make a purchase via their mobile device if given application. 10. those ads are influencing shoppers.5 billion. cent) and all other (12 percent). ABI Research developed an analysis of the current mobile commerce merchants in the U. office supplies (7 percent). including mobile. mobile commerce sales are divided as follows: travel (31 percent). 12. and ping for its 800-plus brand clients from Nov. Travelrelated purchases such as airline tickets and hotels added another $1. Based on initial growth data. rich experiences across all channels. ABI Research reported that in 2010. 9.4 billion by year’s end. product information and worldwide. In September 2010. or 12 percent of global ecommerce turnover. If given the choice between visiting a Web site on a mobile phone or downloading an application to shop or holiday season. Mobile bar code usage grew 1.S. Although 41 percent of merchants have seen positive return on investment from mobile commerce. a discount.S. In 2015.4 billion in 2010. 6. computers/electronics (20 percent).shopping will be responsible for $163 billion in sales day activities such as shopping. Eighty percent of businesses have or plan to have a mobile commerce-enabled site. Shopatron’s analysis of multichannel holiday shop. according to InsightExpress. home furnishings/ housewares (6 percent). More marketers are leveraging mobile and must deliver consistent. browse a retailer. 32 percent have not measured their ROI or do not know how to measure it. books/music/DVDs (9 percent). sales in this period. entertainment tickets (3 perPAGE 33 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . 48 percent of smartphone owners pre8. to ensure that usability is never compromised. 17 to Dec.via mobile will reach $200 billion globally. per FitForCommerce. retailers should look at traffic and figure out how to measure their ROI. Budgets for mobile advertising skyrocketed from 7. per Adobe Systems. Web usage. 13. apparel (13 percent). This year.600 percent in 2010. 2010 found that mobile represented 2 percent of commissioned by Liz Claiborne. U. 14.
vice president and principal analyst of ebusiness and retail at Forrester Research. Although the percentage is a small PAGE 34 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . whose mobile commerce sales comprised just 1 percent of the company’s total revenue in 2010. services and digital and virtual goods.REVENUE Sky’s the limit for mobile commerce sales By Dan Butcher A dvances this year in mobile payments for physical products. “This means that maybe about 5 percent of their [total] gross merchandise value is through mobile now? “I suspect they still have significant headroom for increasing that figure even higher. “It does not surprise me and it showcases the rapid transition of shoppers to the mobile channel. The rise of Near Field Communication-enabled handsets such as Google and Samsung’s Nexus S and better contactless point-of-sale infrastructure will lead to the growth of the mobile wallet to pay for physical goods and services.” she said. Hail sales Another example is 1800flowers. MA. as well as increased consumer confidence in mobile commerce transactions will lead to a boom in revenue. EBay generated close to $2 billion in global mobile sales in 2010— and expects even more in 2011.” said Sucharita Mulpuru. Cambridge. On the mobile commerce side.
whole Internet usage model is becoming dominated by mobile devices. Bango’s North American estimates should be welcome news to digital The number of mobile payment users is expected to merchants worldwide.one. which is equivalent to approximately a 150 percent increase in value compared to 2010.5 billion.The opportunities that this opens up include pay-perances at Bango. senior vice president of marketing and alli. according to Gartner. England. tiated payments will dwarf. depending on their total growth figure averaged across all mobile digital consumption. they can pay for videos viewed. mobile online shop“The opportunities for regular.” he said. within three years. Food delivery site GrubHub has steadily expanded its mobile footprint. the big picture is that the in 2014.mobile payments is continued growth. view. the outlook for While the mobile payments revenue in some mar. “If all other things remained constant. In the mobile commerce space. tracks the iTunes store. Shop till you top ABI Research reported that in 2010. This is the idea of enabling charges “We forecast an easing-back of carrier on-deck revenues well under a dollar. down to just a few cents. see-do style ping excluding travel in the United States doubled to apof transactions means that the volume of mobile-ini.” said Anil Malhotra.4 billion by year’s end.” Mr. Travel-related purchases such as airline tickets and hoMalhotra said. reach 340 million in 2014. tels added another $1. the retailer has experienced huge mobile growth since 2009. PAGE 35 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . anything we have seen in PC-based ecommerce so far.000 readers paying $9 a month.” Mr. representing 5 percent of the worldwide mobile user base. listened to and number of pages downloaded. one area of real potential is in micro-billing. with newer stores from Research In Motion and “Instead of customers having to pay larger amounts and Microsoft’s Windows Phone 7 growing most quickly. and its total revenue from mobile orders increased to approximately $7 million in 2010. Bango projects digital mobile commerce for 2011 to surpass $4 billion in North America. Malhotra said. but perhaps commit to subscriptions to access phone and Apple continuing to generate the lion’s share through tablet content. kets in Asia are quite difficult to assess. enue. frequent.” he said. Cambridge. and traditional off-deck content revenues.proximately $3. application store revenue volumes would cause a 2. but the reduced revenues from carrier-provisioned versus 10 million readers paying anything from just a content compared with 2009 and 2010 takes down the few cents a month to a few dollars. “We forecast growth in application store-billed revenues. ToPenny pinching and pulling tal transaction value is projected to reach $245 billion In terms of opportunities.“The choice is 100.” According to Gartner analyst Sandy Shen. pay-per-track for streamed music and pay-perpage for publications.5 times growth in rev. commerce channels.
most consumers were able to leverage mobile optimized and paid search to find a product or locate a store nearby. and even sourcing the best local price. advertisers will drive measurable foot traffic to retailers. consumers will use mobile search to support more advanced retail scenarios such as comparing prices. finding special offers and discounts. president of ecommerce and customer experience at footwear retailer Steve Madden. the consumer will more than ever have the freedom. research and validate both their preferences and purchases.” said Andrew Koven. New York.SEARCH Properly executed mobile search marketing will drive sales By Giselle Tsirulnik W ith an increasing number of retailers and brands building smartphone-optimized Web sites. including the browser. This year.” he said. flexibility and confidence to search. social media sites and price comparison tools – and asking questions of their peers on the fly via text at points of purchase. and will be in 2011. Mobile search advertising will make it possible for advertisers to translate consumer searches into immediate action. “Mobile search will continue to play an increasingly important role in 2011. utilizing search. mobile search will this year be an important aspect of driving consumers to these destinations. PAGE 36 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . “Clearly more and more consumers have been in 2010. By leveraging mobile offers and loyalty programs. “With the increasing numbers of smartphones and growing number of tablet devices. “To me it means many things.” Clicks for retailers In 2010.
“This intelligence is becoming far more prevalent as mobile-optimized search evolves into the mainstream and we apply it as business leaders. figure out a way to track ROI. WA. the rules have not changed for mobile.” Mr. From a business standpoint. most importantly. That said.style can be found based on the consumer’s current locato-call for their mobile ad campaigns and on their Web tion and. if a consumer is searching for a particular type of shoe.” Mr. he said.action. will give the savvy retailers a sites to drive consumer engagement and immediate leg-up in sales. mobile device migration to smartphones and basic know-how. Redmond.” Glavin said. advanced mobile devices and mobile commerce.” Optimize opportunity The major difference from 2010 is comfort level. said retailers will need to figure out how to make the products for sale in their local outlets more discoverable to the mobile consumers. “We look at mobile as a multichannel shopping enabler.” he said. Having an optimized mobile commerce site with proper deep links to ensure relevancy of results is key. group product manager of mobile search advertising at Microsoft. “Having the ability to identify where a particular “Small-to-medium advertisers will likely leverage click.” Mr. Steve Madden’s Mr. consumers have to be able to quickly get to what it is they want. overcome potential issues related to mobile coupons and. The sheer amount of media attention focused on consumer mobile shopping behavior during the holiday season was on par with the press garnered by ecommerce a decade ago. Koven said. we need to provide them the most efficient way to find it. awareness. “Both types of advertisers will likely integrate offers and promotions into their paid mobile search to drive foot traffic to local merchants as a way to differentiate their products and services in the marketplace. Koven said. To drive sales.” Dennis Glavin.” PAGE 37 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . Koven said. understand it and buy it. “The larger advertisers will likely continue to make improvements in their Web sites that are optimized for “Inventory visibility is key. excuse this pun. “For example. this is all positive because a big part is making sure that retailers display the most important information for consumers on the pages within context of the desired mobile experience.
mean consumers win.” PAGE 38 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . during and after their shopping experiences than ever before. Saks Fifth Avenue. Foursquare.SOCIAL NETWORKS Consumers will respond to location-based social promotions By Rimma Kats B rands are increasingly turning to mobile as another revenue driver and using social media applications such as Facebook. via the same social networks they use to keep in touch with friends. “More customers interact with retailers before. “We are experiencing a perfect storm of sorts in the mobile space that allows apps like Foursquare to thrive and this leads to more people to have powerful pocket computers. Scvngr and Gowalla to get consumers in-store. Consumers are now enticed to shop on a personal level. Crumbs and American Eagle Outfitters are complementing their mobile strategy via mobile social network outreach. which means the best user experience will win.” he said.” said Eric Friedman. director of client services at Four- square. “Companies are energized to gain the growing smartphone user’s attention. “The effect of this. “Retailers are now much more in tune with providing an end-to-end experience that starts online and results in an offline sale. Marketers and retailers such as McCormick & Schmick’s. combined with more new entrants into the mobile operating system arena than ever before. as well as enriched interactions with everything around them. New York.
“Mobile is now location-aware. Facebook Mobile is also cent). About 31 percent of consumers check-in at least once a day and 21 percent do so a few times per day. “As an ecosystem.take advantage of the Near Field Communication techpartments and unlock shopping tips to get their prize. Facebook Places is the most popular check-in mechanism. On Facebook. It has to. 220 million were mobile in 2010. According to Lightspeed Research. social and fun. even more transactions around the mobile device.” he said.Mocial On Foursquare users are competing for a chance to be mayor of a specific location to win a prize by checking in. “You’ll have players like Scvngr experimenting with ways to tie our gameplayer more and more directly to commerce at local businesses. brands are keeping consumers up-to-date on deals and contests and using their pages to distribute The most popular places to check in are home (52 perbranded content such as videos. “All of this experimentation will converge in fascinating ways. CEO of Scvngr. social networks such as Foursquare will centralize respondents using it. lipstick if they checked-in to any of its participating locations via the Foursquare application. marketers realized the value and virality of including a Facebook Like feature to a mobile site. with 52 percent of Also. Indeed.” said Seth Priebatsch. nology deployed by Google’s new Nexus S mobile phone from Samsung. Only 18 percent of check-ins come from Foursquare and 12 percent are via Google Latitude. or at work (39 percent). indicating the massive Saks Fifth Avenue recently offered consumers a free Nars opportunity for brands to monetize using the platform. Last year. at a restaurant (50 percent). Expect to see more social media applications and mobile Web sites incorporate social functionality. marketers are starting to notice the benefits of Facebook Places is likely to turn into a valuable tool for mobile social media. at a store (40 percent) driving traffic to brands’ mobile Web sites. we’re just now experimenting with tying the mobilesocial entity to transactions. Of Facebook’s 550 million users. brands in 2011.” PAGE 39 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . Boston. Hunt begins A whole new wave of startups this year will pop up to Consumers were encouraged to go to four different de. “We’re just at the beginning of mobile commerce.
as well as more sophisticated richmedia mobile advertising—both across the mobile Web and within applications—that can directly drive transactions and will do so throughout the year. location-based applications. Savvy retailers and merchants will be quick to launch commerce-enabled mobile Web sites. In mobile the slower progression is largely due to the continued fragmentation of the ecosystem. couponing services. retailers.” said Red Gillen. senior analyst at Celent. payments.” he said. which platforms to support? shipments of such phones will spur development of NFCrelated shopping applications by hundreds of players— Most marketers chose to first support Apple’s iPhone. including if Apple will be available on more carriers in 2011 [the iPhone and iPad will sell through Verizon Wireless and AT&T]. banks. but in North America. retail. director of mobile media and advertising at Nielsen Online. “Apple remains a leader. while other times it progresses slower than many would like. “Although a critical mass of such phones and contactless terminals at merchants will take years to achieve. like who delivers on the promise of mobile commerce. the big development will be the long-awaited commercial shipments of NFC-enabled devices by mobile phone manufacturers. banking and financial services. There will be continued growth in mobile banking. “Android has arrived in terms of what devices consumers are buying. and those advancements will have a huge effect on commerce. The question was and is. “In terms of mobile payments. The rise of the HTML5 standard has enabled richer mobile Web experiences. the main reason for this being the growing adoption of smartphones that will increase consumer discovery of their banks’ mobile services and drive more mobile transactions. “The battle for dominance will be fueled by innovation in the features and services a particular operating system offers over another and market factors. the biggest news of 2011 will center on the commercial introduction of Near Field Communication-enabled handsets and contactless mobile payments. innovation happens in the blink of an eye. mobile wallet vendors. “Ultimately. While that is significant. per Nielsen Co. 2011 will be a banner year to see if a particPAGE 40 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . San Francisco. with many launching applications this year. Chicago.SOFTWARE AND TECHNOLOGY It’s all about Near Field Communication By Dan Butcher M obile software and technology will make big strides this year. Android solving some of the challenges of purchasing apps and others.” said Paul Kultgen. Platform shoo-ins At times. Google’s Android and Research In Motion’s BlackBerry closed out 2010 neck-in-neck for the lead in operating system market share.” he said.
effective couponing thereafter.“If merchants hope to adopt the mass-market-of-one tally shifts the market. ular platform can create a new offering that fundamen. real progress will actually be made this year. Point-of-sale integration with mobile software and technology will offer retailers and merchants the opportunity to drive commerce and payments.” Mr.” See more NFC While many marketers and merchants have waited years for NFC-enabled handsets and point-of-sale contactless readers to achieve scale. setting the stage for more targeted. While challenges such as fragmentation and lack of a revenue-sharing consensus will persist. consumers will be able to tap their phones at a merchant’s contactless POS terminal to accrue and redeem loyalty points. to the extent that it is available and leveraged appropriately. there is a mindfair share plus market growth. NFC technology will also be available for both consumers PAGE 41 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .” boggling array of campaigns that could be devised via the mobile channel. In addition. as it will allow them to track redemption down to the user level. However. which enable loyalty and coupon issuance and redemption. Gillen said.” Celent’s Mr.” he said. which will be required to deliver mentality of personalized marketing. “NFC will move from something only being talked about to being something real and tangible. per Celent. “The challenge to merchants will be to invest in new contactless hardware and to properly implement campaign management systems. as well as customer relationship marketing and loyalty.and merchants on a limited scale. this year will be a breath of fresh air for many stakeholders in the mobile commerce ecosystem. mobile coupon redemption will increasingly take place. “This will be a fantastic opportunity for merchants. Gillen said. although still nascent.
increased online sales. retailers rushed to get a basic mobile Web site up-and-running as quickly as possible. But the key to mobile shopping this year and beyond is convenience – consumers want to quickly find what they are looking for and easily make a purchase. “In 2010.” Make it personal Retailers focused on creating mobile commerce-enabled PAGE 42 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . online or via their mobile phone. more importantly.” said Bob Cell.” he said. providing more personal experiences based on consumer behavior. They want a personalized experience. “Consumers have stat- ed emphatically that they want to shop using their mobile phone. New York. one that recognizes who they are and what they have browsed and purchased in the past.WEB SITE AND DEVELOPMENT Mobile Web underpins mobile commerce’s growth By Giselle Tsirulnik T he mobile Web will be the gateway for mobile commerce transactions this year as more retailers and brands realize the importance of having a mobile Internet presence to be relevant to a new age of connected customers. as evidenced by the surge in mobile shopping over Black Friday and Cyber Monday this past year. CEO of MyBuys. past purchases and preferences. whether they’re shopping in-store. “We’ve heard from online shoppers that they want brands and retailers to provide a consistent shopping experience across channels. “We are exceptionally positive about the opportunity for mobile commerce in 2011. “Many of our retail clients have seen significant traffic to their mobile sites and. Mobile Web sites will rapidly evolve. but we believe there is an even greater opportunity for retailers to connect with their shoppers.
” he said. “Unique mobile experiences on a mobile-optimized Web PAGE 43 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 consumers are more receptive to making a purchase using their mobile phone.• Customer support ence for every consumer by displaying relevant products • Email and discounts that are optimized based on preferences • Shop by category and past online activity. .” MyBuys’ Mr. Lowden said that consumers now expect the of customers. TX. • Ratings and reviews • Store locator Retailers will this year concentrate on revamping their • Order status mobile sites to create a personalized shopping experi. vice president • Detailed product description of marketing at Digby. The mobile Web quickly became a major new channel for retailers with significant revenue and an opportunity to “We’re investing heavily in personalized mobile combuild a strong relationship with mobile customers. unique mobile-optimized Web site that looks elegant across all popular smartphone platforms and cre.Key site features ates a mobile shopping experience for the broadest set Digby’s Mr.” said Dan Lowden.sites in 2010. starting with the homepage all the way • An ever-present search bar through checkout. • Facebook and Twitter integration “We’ve seen that by providing a personalized experience.• Unique offers merce site. Austin. Cell said. so that retailers can create a rich and engag. merce and are excited to be able to offer new media capabilities and mobile coupons to retailers and consumers Retailers understand the importance of offering a alike in 2011.• Rich product images ing mobile experience. • Shop by brand • Deals of the week The mobile experience can be 100 percent customized to • Secure checkout any individual. following features when they visit the mobile sites of their favorite retail brands: “The mobile-optimized Web site needs to be unique and not a cut-and-paste of the same content from the ecom.
site make consumers feel that they are connecting with the retail brand on a personal level. MyBuys’ Mr.” Smartphones and tablets such as the Apple iPad are becoming commonplace. Lowden said. they will benefit from increasing consumer traffic their customers. Cell said. “It sends the message to loyal customers that the brand knows their shopping preferences and has tailored an experience to meet their needs. “Loyal customers who feel a personal connection to a retail brand tend to buy more frequently and in higher “More importantly.” he said.and sales from their mobile site. rience.” PAGE 44 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .” Mr. consumers expect their favorite brands and retailers to offer a personalized mobile expequantities.” he said. “so for those willing to make the invest“Retailers will also realize that in order to provide value to ment. ences for their mobile Web site rather than cut and paste the same content from their ecommerce Web site. which will only accelerate the adoption curve of mobile shopping. they will need to create unique experi.