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@

Dan Butcher Associate Editor dan@

Jodie Solomon Director, Ad Sales ads@

401 Broadway, Suite 1408 New York, NY 10013 Tel: 212-334-6305 Fax: 212-334-6339 Email: Website: For newsletter subscriptions: newsletter.php For advertising: general/1.html For reprints:

Giselle Tsirulnik Senior Editor giselle@

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Mobile Commerce Daily covers news and analysis of mobile commerce. The Napean franchise comprises Mobile Marketer,, the Mobile Marketer Daily newsletter,,,, the Mobile Commerce Daily newsletter,, Classic Guides, ©2011 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission. webinars, the Mobile Marketing Summit and the Mcommerce Summit and awards.


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
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

engaging ads that will be easy to build and implement such as videos. incorporate social media. retailers and brands need to understand what their value proposition is to the mobile search user.” he said. the key to fully unlocking mobile commerce is the call to action. “The value of the landing page – whether it’s product information. Timid trial buys will only put brands behind their more aggressive competitors. Third. “Scale and performance is the real value of mobile advertising to retailers.” “As a retailer. I want to drive consumers who want that national brand into a particular retail store but not its competitor’s store. “Campaigns can once again tell a story – not unlike TV and radio – and offer consumers multiple ways to engage. Next. WA. combined with these compelling creative opportunities. Ms. tell a story through creative. in terms of mobile search advertising. Glavin said. Redmond.” Best practice It all starts with having a mobile-optimized and meaThat said. often with 100 percent share of voice.” she said. Glavin said. execute at scale. PAGE 5 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . “Mobile consumers are looking to search. The extension of ROI is critical and it ties to the most important use of the mobile phone. Frisbie said. Drive traffic to it using mobile advertisretailers. I want to drive sales of my product across my retail channels. is now unlocking – namely.InMobi’s Ms. there are challenges ahead for brands and sured storefront. Microsoft’s Mr.” he said. find and transact quickly.” Mr. expandable “As a national brand. the next step is to construct a mobile campaign and landing page strategy that best delivers that immediate action to mobile consumers.” Mr. “From there. Frisbie said. Mobile actually offers the ability to send multiple impressions in a short time. There’s a big opportunity for retailers who are able to leverage national search advertising in their local campaigns. Full use of these calls to action and creative storytelling will help consumers discover and convert. according to Dennis Glavin. a local store locator or a special offer – needs to be an integrated part of the paid mobile search campaign. North American mobile search advertising business for Second. Glavin said. Finally. and interstitials. “There will be some natural friction between these two important players in the retail ecosystem. “In addition to reach with impact. “The real promise of mobile Microsoft. manager of the ing.

you’re running essentially traditional Web analytics. I click in three basic concepts—the first is the mobile Web brows.” PAGE 6 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .that app. there are “When I want to complete a transaction. “If you’re talking about mobile commerce. for example. CEO of Mashery. and suddenly I’m taken to a browser page to er experience. but it helps me find what I want. “You’re doing the same analytics as you’d be doing on a desktop browser. booking a ticket within the American Airlines app. case. I go to an app. and in that complete the transaction.” said Oren Michels. While transactions on the mobile Web can often be tracked in the same way as they are on the PC Web. San Francisco. and it doesn’t let me do a transaction inside.” he said. inapplication transactions and applications that redirect users to a commerce-enabled mobile site have to be handled differently. “In the second instance.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. an app is involved—one version is someone uses an app and that app internally completes a transaction. and this year will see more sophisticated measurement both within the mobile medium and across channels. a site that people buy stuff on. “In the third version.

“You have to track a bunch of different people doing a bunch of different things Even more so than in 2010. merchants need to be able to track what is happening in that application. Best Buy has announced that it is doing API-enabled commerce. going to be treated as the marketing platforms that they are. but to get the full picture. makes it easy. you’re going to need the abilplications that they use as customer engagement. publishers and developers will continue to try that grants a wish around a particular experience and different tactics to generate revenue. . applications this year are for you.” All about APIs Most companies have not been able to open underlying APIs that perform commerce. Therefore. but looking at 2011. I see that changing. they redirect consumers to a Web page because it is easier than building purchasing capability into the application’s API. Applications do not run JavaScript. in 2011 you’ll see a ton of explosion of commerceenabled APIs. even on individual platforms.” PAGE 7 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 “The concept of being able to roll out bunches of different app experiences on different platforms is pretty rare right now.ity to track many different partners.” Mr.” Mr. “You have to bridge the two analytics. Many applications are currently being built around data APIs. ing to become a much more significant and dominant component of merchants’ overall ecommerce stratSmarter companies are going to have many different ap.Mobile transactions In the second example. “You can’t just have one app that runs on every platform. so it is not traditional analytics. or third-parties. Michels said. merchants need to know the underlying APIs on which these applications are based. Michels said.” he said. per Mashery. so that when it is time to do the transaction.egy and market share. so that developers can build applications on “I think that when you look at how mobile apps are goBest Buy’s API that enable transactions. The third hybrid case is common. where it is a pure in-application transaction situation. A great app is one Also. “You can get only Web analytics. “If you look at the demands we’re seeing from our API customers and enterprises. Applications are built on application programming interfaces. mar. you have to join the two experiences and know what’s happening between the two experiences. whether internal keting and customer retention tools.

” Mr. vice president of marketing at mobile commerce platform provider Digby. vice president of mobile at JiWire.” Widgetization of mobile apps he said. “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. “It’s important to note that mobile continues to be more effective in driving in-store purchasing than mcommerce. 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. Internet-based models more effective on mobile. “This will be a great place for retailers and brands with good distribution to differentiate themselves. Purchases from tablets such as the Apple iPad are also going through the roof. Austin.000 people. but instantly distributed to millions of people. per Mr. PAGE 8 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . where an entire app can be presented in an ad format. San Francisco. “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. BlackBerry and Android devices to reach and develop a personal relationship with their most loyal customers. TX. with sales jumping 300 percent from 2009. but rarely does it reach more than 100.” said Dan Lowden. and product videos. ratings and reviews. mobile applications will continue to be the best experience for discovery and purchasing as well as tying into social networks. As a consequence. A retailer or brand can launch its own application. bar code product lookup. ity in an ad that can do anything a mobile application can.” he said. it is expected that half of the population in the United States will use a smartphone.“IAd is a good example of this – rich functionalphones. special offers. according to Amsymco. “What we will see in 2011 is the widgetization of mobile application functionality. Dunlap said. more retailers will develop branded rich applications for iPhone. Without doubt.” By year’s end.” said Scott Dunlap. Dunlap.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.

Dunlap said. “If you don’t have the budget. 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. Gowalla and shopkick. more frequent customer interaction and higher conversion rates.” Digby’s Mr.” Mr. Lowden said. higher average dollar order transactions. Dunlap said that those focused on new customers should consider mobile advertising and widgetized applications. create a mobile application that rewards loyalists for in-store visits and sends regular content. or increasing sales with existing loyalists? Mr.” PAGE 9 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . 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.” Mr. dip your toe in the checkin apps such as Foursquare. retailers can see which rich app to focus on initially. For a loyalty play. more personal relationship with customers and drive incremental revenue. “Features and deals only offered through the retailer’s app can help build a closer. Digby’s Mr. “By matching the application to the demographic of the customer base. Lowden said. Will it be about getting new customers. “From there. Retail detail Retailers need to choose a mobile application strategy. 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.Digby’s Mr. the retailer can leverage the mobile commerce platform to easily add additional apps over time.

mobile banking solutions manager at Diebold. Michele Rene Scott. as opposed to waiting in line for a teller or ATM. mobile banking offers opporapp stores. said that a comprehensive mobile banking program provides numerous opportunities for both financial institutions and consumers to gain significant benefits and efficiencies. 80 percent keep their mobile devices with them at all times. Mobile banking empowers consumers by giving them on-demand access and real-time information to securely manage their finances. “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. OH. Through the integration of a financial institution’s various channels. or contacting a customer call center. Financial institutions must undertake several steps to ensure that they are investing in a service that their customers want and will use. “In addition. and generous data and messaging plans. North Canton. “We anticipate continued strong adoption by our customers. vice president of online and mobile banking communications at Wells Fargo.” she said. transfers. payments and two-way personalized communications are just a few of the ways the mobile medium is expanding the definition of selfservice banking. Account alerts. Reinhart said. the usage rates of active mobile banking customers will increase across mobile Web site banking. San Francisco. deposit and withdrawal confirmations.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. app banking and text banking services..” said tunities to realize operational efficiencies and cost savings by empowering customers to handle basic transactions and inquiries from their mobile phone. Of these subscribers. according to CTIA – The Wireless Association. Can numbers translate? The United States counts 270 million consumers as mobile phone subscribers. fuelled by adoption rates of smartphones and According to Diebold Inc. Mark Reinart. Multichannel integration An important part of the mobile banking evolution is multichannel integration.” Mr. customers have the ability to make purchasing and account transfer decisions based on realPAGE 10 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .

Scott said.details. per Diebold. “Finally.” Wells Fargo’s Ms. ing for all customers regardless of their phone type or data or messaging plans [is key]. only 35-40 percent of financial institutions’ customers use online banking. while ensuring broad-based access to bank.” she said. continue to rank banking functionality by customer demand and utility.tomers will want more availability and more account lets. However. since financial institutions will have the ability to deliver consistent messages across every channel to educate customers about available services.” she said. in a branch office. It is also an important tool for customer retention. with a customer service representative or through an institution’s interactive voice response system. branch or self-service channels. providing marketing materials to current and prospective customers and ensuring that staff is trained and available to help customers learn how to use mobile. “In 2011. on a mobile device. A successful adoption plan includes developing criteria that lists specific target adoption goals such as assigning a project team with defined roles and responsibilities. including tab. and cusdevices and their user interfaces. financial institutions must realize the importance of developing PAGE 11 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . and implementing a strong consumer adoption plan from day one. “Think of cross-channel solutions and take advantage of the device capabilities such as GPS. Multichannel integration is at the foundation of the drive to give customers a consistent look and feel across every channel. mobile banking will become even more main“Optimizing customer experiences for a range of stream as a channel of choice for customers. Signup for mobile banking services typically occurs only through the online channel.” A major theme this year will be multichannel integration. online. “By utilizing multichannel integration. image capture and mobility.time information shared by the mobile. Reinhart said.” Diebold’s Mr. “Institutions need to listen to customers through multiple research channels. “Financial institutions should continue to optimize the mobile banking experience to take advantage of larger screen sizes and touch screens in 2011. mobile signup can be offered and tracked conveniently and securely at the ATM.” Wells Fargo’s Ms. Scott said. Adopt to adapt For a mobile banking program to be successful.

ary 2012. but also announcements from mobile OEMs and OS-makers around NFC. with participation from Discover Card and Barclaycard. “I think 2011 really marks the point of ignition for mobile commerce and payments. “Isis has paved the way by guaranteeing a market for that technology. AT&T and T-Mobile USA. Isis is a joint venture between Verizon Wireless. “That will pave the way for a running start in 2012. which has been a barrier.” priority No. will begin to be put into place. certainly with the Isis announcement.tion will persist throughout the year. fragmentaAlthough it is not set to officially launch until Janu. in general. carriers. where these things are actually out in the wild at scale in significant numbers.” While Isis marks the most significant attempt by the carNFC and RFID riers to create a mobile payments standard.” Mr. “In 2011. so that constraint begins to fall down as merchants replace pin pads and signature capture pads—the replacements will be NFC-enabled. Johnson said that this is really the year where all of the infrastructural development for mobile commerce. “2011 is the year of building. NFC-enabled handsets and hardware will become standardized in the market over the course of the year. spokesman for Isis. 2012 will be the year of launching. whether it is activities around bill-to-mobile and carrier billing for mobile content and virtual goods. carriers have much to accomplish over the course of 2011.” he said.S. we will see more contactless acceptance. While the carriers are running initiatives related to mobile commerce outside of Isis. “Some of the infrastructural hurdles that have dampened or prohibited uptake of mobile commerce will begin to fall in 2011. 1. per Isis. Johnson said. Bellevue.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. as well as from the carriers’ standpoint. and this year will work together to lay the groundwork to try to create a nationwide standard for contactless mobile payments with Isis. T-Mobile USA and Verizon WirePAGE 12 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . AT&T Mobility. “Many of the big POS terminal-makers are including NFC by default in most of their new hardware. Mr. Isis is certainly the most meaningful venture for three of the top four U.” said Jaymee Johnson. WA. with Near Field Communication and Carriers collaborating on Isis radio frequency identification (RFID) infrastructure as With Isis.

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. slowbuilding consortiums and a lot of initiatives to sort out. “Carriers have talked about developing mobile implementations. no meaningful share of transaction volume through the mobile commerce channel. so there might not even be a single application in market at all this year. “Isis may not even have a market test in 2011.” A lot of innovation can happen in a year’s time. Red Bank.” said David Schropfer. are teaming up tactless mobile payments forward in to rollout a national mobile commerce network that will 2011.” said Josh Martin. Boston.” PAGE 13 “That’s a big deal for merchants.” 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. because it will give them one standard to focus on. partner at The Luciano Group. 70 percent of the mobile let consumers use their mobile phones to make point-of. independent players in the mobile commerce and payments space should not despair. “This year there will not be a significant number of calls-to-action other than participating in tests. from the Wholesale Applications Community to Isis.” he said.Rough seas or Isis? At first blush. “Isis will have a big role in moving conless. but usually the way things work is that there’s a lot of talk and then when there’s money to be made. they start squabbling. but I predict that they’re going to be relatively isolated. “Similar to this year. which tend to be grand ideas that are slowdeveloping.S. the influence of OEMs over consumers. “If any of those come to fruition. Some analysts see the Isis rollout as too deliberate. Isis expects to introduce its service in key geographic markets towards the beginning of 2012.phones in the U.” Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . “I don’t see any meaningful market penetration in 2011. Isis seems formidable. rather than many. senior analyst at Strategy Analytics. it puts them in a better position.” Mr. because for the first time. “Frankly. standard. but I don’t think it will have an impact on 2011 on any of their businesses. the carriers will face significant hurdles in 2011. along with Discover and Barclaycard. However. I see carrier participation in mobile payments not impacting retailers in a meaningful way this year.” he said. “The carriers will position themselves in 2011. Schropfer said. “We may see some market tests. “They are predicting 18 months from the time of the announcement. NJ. will be able to use the exact same sale purchases. from the dominance of the App Store.

” said Nick Taylor. 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. and creating a user interface that is mindful of a much smaller screen. Taylor. New York.” According to Mr. retailers will need to create specific marketing strategies and promotions to maximize this new opportunity. Companies including State Farm are offering services PAGE 14 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . but also tablets. rather than an afterthought. brands looking to expand their content to mobile should not only look at iPhone. Content with context As mobile’s significance grows as a medium.” he said. “Brands should make easily accessible those features that reflect the most immediate on-the-go needs. Tablets will require their own optimized experience as consumers increasingly use those devices to access company sites. “It’s important to consider mobile user behavior when creating the best possible customer experience.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. president of Usablenet. Android and BlackBerry devices. Marketers such as State Farm and Amazon as well as book publishers are taking their content to mobile handsets and creating interactive user experiences.

” he said.” Usablenet’s Mr.“Consider integrating key Web features and functionallar. rich media. to start the shopping Indeed. and incorporating key content Mobile Commerce Daily MOBILE be able to seamlessly features in their mobile-optiCOMMERCE mized sites. “A great example is keeping log-in information and customer history interchangeable across channels. OUTLOOK 2011 complete this process on their phones later. “Customers are easily frustrated and are always oneclick away from not completing a transaction. where consumers can sign up for more information. PAGE 15 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .” Mr. applications and calls to action. “Maintaining consistent information and functionality from their existing Web site to mobile is important for an adequate mobile content strategy. but should incorporate key content features. Taylor said. “So creating an effortless mobile commerce experience is necessary.” sonalized coupons and content. especially with the proliferation of HTML5 and ity into both mobile Web sites and branded apps. Taylor said. such as talking or finding an agent and getting on-the“This allows a customer road assistance to consumers via a mobile application. per.and vice versa. but to catch a consumer’s attention marketers must remember to create a consistent feel. Mobile content such as video is also becoming popu. brands are realizing the potential of mobile and process online. Taylor also said that it is very important to have tracking for ROI and user behavior.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. Incorporated features include social functionality. Mr. A brand’s application need not mirror its Web site.

consumers want instant reRetailers this year will be marketing heavily to their opt. “There is little room for failure in mobile as it’s a missionwhile delivery of right offers and information to the right critical medium. and quick response to questions driven by a click-to-call feature or a live chat capability will be the new norm.DATABASE/CRM Mobile database essential for driving direct commerce By Giselle Tsirulnik P roper. turn.sults. “When it comes to 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.” he said. consistent and measured uses of databases said Andrew Koven. and customer relationship management. which in New York.” places on time will be requirements.” Taking the time to test ideas and strategies to estab- PAGE 16 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . can drive mobile commerce sales. Order shipment notifications that does. president of ecommerce and cusare critical success factors for mobile marketing tomer experience at footwear retailer Steve Madden. Top database … “There is little room for delays and misses in mobile.

” Mr. en. … then tap Mobile coupons. we send information that makes sense beyond coupons “Specifically. Koven. alerts for flash sales and special offers are obvious drivers of sales and will continue to be used this year and beyond. per Mr. loRetailers should be developing strategies that excite. Discounts and rewards via mobile challenges to mobile database members will be a hot trend as well. leading to more sales. contests. “We will see branded content.cation-based alerts. Koven “How to target mobile databases in 2011 is really a bigsaid.” bile database first. for example. multi-part question. Koven said retailers need to do a much better job of building their mobile databases from the get-go.” Mr. Consumers currently receive mostly general discount messages from major retailers. Using the mobile database to build out a social media strategy will also be key. Getting consumers to join a retailer’s Facebook of Twitter page. Location-based mobile rewards to opted-in consumers will be key in 2011. discounts. Mr. Koven said. thinks leads to a false-positive read for the long term. “It’s essential as a marketer and customer-experience builder to realize the value of a mobile phone number for long-term CRM. will be one trend to expect as this year progresses. style tips. it’s not as meaningful strategically. and that building a mobile database is essential for the future of direct commerce and communications. But that may have to change. “I believe as retailers that we can drive sales when ger. Expect to hear a lot in terms of geo-fencing. Koven consummated in a store or online.lish a strong database with the proper levels of customer information leading to a high degree of segmentation are key callouts for mobile databases. in particular. private sales. “I’ve stopped looking beyond professional interest – as a consumer. 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. as geography plays a big role in driving consumers in-store.” deal. Koven said.” he said. PAGE 17 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . what tactics will be used to build the moand this will take time to strike a balance..” Mr. how-to videos gage and endear consumers to the brand more so than a and special offers for sure. Yet this will take time.

their email on mobile devices. “Mobile users want wonderful deals and they want relevant content.purchase experience that is fully optimized for mobile tion vehicle for consumers. MMS.” said Debobile email will remain an effective means to rah Hall. “The most important thing to keep in mind is not to replicate a desktop experience. Rendition of email on different mobile clients continues to be a challenge. Hall said. the mobile marketing to catch mobile consumers. targeted offers and see what appeals to the mobile user base.” she said. “The opportunities are to offer consumers an end-to-end Email is still an important notification and communica. so there will be continued. drive commerce this year. applications growth in the retailers and deal-finding Web sites using and social media are all growing steadily. thus rendering ads and images ineffective in emails read on many smartphones. 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. Choose fewer. per Web2Mobile. There are several factors that marketers. managing partner at Web2Mobile.Render bender phones. “In the last few months. 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.EMAIL Mobile-optimized email can be effective commerce-driver By Dan Butcher W hile SMS. optimized email communications offer. Toronto. “Mobile users have different behaviors and can be a lucrative.” Ms. Also. Now that more than 25 percent of consumers in the United States have smart. retailers and merchants need to keep in mind. the use of email is increasingly important for While no one doubts the opportunities that mobilemarketers to consider. spontaneous audience if the content is delivered PAGE 18 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . some potential pitfalls remain. Many email clients block images. given that many emails will be viewed by their target consumers on a wide variety of mobile devices. 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. mo.

Marketers may have had time in 2010 to test and implement programs to see what works. Now. social connections. chief marketing officer of Message Systems. The opportunities and challenges for marketers in reaching customers via mobile email are the same—relevancy. Marketers who are tuned-in to the wants and needs of their customers and deliver messages how. when. where.” PAGE 19 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . Hall said. In short. and that is certainly a trend that will accelerate and take new forms in the year ahead.” he said. bile. when and where they want them will break through to success. per Message Systems.” said Dave Lewis. consumers will increasingly dictate the terms of online communication. constructed for viewing in a mobile environment. experiences.” Ms. it will also require attention to how the message is this year.How.” “If your sites and emails are not optimized for mo. 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. San Francisco. the broader context in which the message is delivered and viewed cannot be ignored.“And given greater access to various applications and ger time to take a leisurely approach to mobile email.” she said. “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. appropriately. there is no lon. and marketers need to look beyond it. what Marketers must always make sure that their email communications have contextual relevance for consumers. “In a real sense. “It’s already happening and will accelerate in 2011. Lewis said.he said.” Mr. [consumers] are redefining the boundaries between the offline and online experience.” she said. More consumers have smartphones loaded with applications. Those who do not will be left to explain their dwindling returns and declining brand loyalty stats. your customers will go to your competitors. And with those powerful Web-enabled devices. “Look to the recent Facebook announcement as to where online communication is headed. it’s not just about email anymore.

Additionally.” “Games. Victor said. PAGE 20 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . 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. providing product reviews in communities or sharing relevant videos will continue to move to the “In 2011.” Mr.” he said. vice president of product and strategy at appssavvy. The rise of applications and location-based services are set to change gaming in the mobile commerce channel. “We did the same with Powermat. retailers such as Swedish trendy apparel chain H&M use mobile games to drive awareness of their new fashion line. social activities like recommending things demand for user-friendly purchase mechanisms. but lighter social communications platforms like Twitter and Facebook may be able to gradually move back to the Web. Untapped games Mobile location-based services are an untapped resource for retailers. “The campaigns were wildly visits by leveraging check-ins at relevant locasumers via mobile campaigns and applications.GAMING Mobile games as traffic driver? Worth a second look By Rimma Kats A lert marketers are noticing positive trends in mo. to friends.” mobile device. we suspect a rise in mobile Web applications. appssavvy worked with H&M to drive bile payments for digital goods and engaging con. The campaign delivered 10. haven’t created an iPad application yet and I’m not sure social consumers to help make the best purchase decithey really need one.” he said.“Earlier this year. sions and merchandise over the social graph right at – or in close proximity to – a point of purchase. Victor. New York. said Robert Victor. per 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. tions near bricks-and-mortar stores. “AdGaming sites and social networks are creating a huge ditionally. retailers will be able to work with informed. In the case of H&M. “Look at Facebook – they “This year. 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.

” PAGE 21 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . not just watching and sharing videos. “Every brand. “Other than device improvements.” their scores. will be split between utilities in applications like Four“Improved mobile devices and access to high-speed data square and connection services like Twitter. “Let people share their purchases with friends and cre“Social and communications applications will continue ate utility by advertising within social activities. Victor said. 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. “They Victor said. engage users. Victor recommends that retailers leverage social activities in their mobile games.” he said. an important catalyst to the move back to Web applications is Facebook continuing to make it easy to leverage the graph on mobile. Branded games can help a company get the word out about a certain campaign.” Mr. but at the same time.Like social Financial services firms such as Barclaycard target consumers via mobile branded applications. Mr. joining and participating in retailers. can greatly benefit from this phenomenon.” Mr. connections has opened up an amazing opportunity with “People are performing activities with their friends like portable social activities.” he said. to grow quickly on mobile devices. and participating in social games. communities.

so when marketers start experimenting. it is likely that we will start to see a greater focus on privacy this year. and the legal landscape changes. it does not need to collect contact lists or call logs from a consumer’s device. Mon I t is rarely easy to figure out how old laws will apply to new technologies. the Federal Trade Commission issued a The FTC urges companies to come up with simpler preliminary staff report on privacy. operating system vendors. Although not primarily focused on mobile marketing. lines inevitably get crossed. the report includes examples of how each recommendation applies in the mobile context. For example. The FTC notes that all companies involved in informaPAGE 22 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . • First. legal challenges follow. companies should integrate privacy into their regular business operations at every stage.LEGAL/PRIVACY Greater focus on privacy is inevitable By Gonzalo E. if a mobile application provides traffic or weather information based on location information. The FTC cites privacy policies in the mobile context as a particular problem. tion collection and sharing on mobile devices — carriers. policies so that consumers can more easily read and The report proposes a new privacy framework and makes understand them. three key recommendations. • Second. applications and advertisers — should provide meaningful choice mechanisms for consumers. a privacy policy can be spread out over 100 screens. 1. For example. when consumers download a mobile application. Although we can expect these battles to continue. they may not know whether personal information is shared with third parties. Mobile is no exception. • Third. companies should provide privacy choices in a simpler manner at the point of data collection. companies should improve the transparency of their privacy practices. 2010. and the past few years have seen a number of battles over how marketers make disclosures and get consent. Because of the limitations on mobile devices. Agency of change On Dec.

Disclosures and consent Make sure you consult these settlements and the carrier In recent years. top cop agreed to pay $1 use or disclose personal information from children million or more to settle under 13. For example. and (b) regulators may see red flags. Disclosing costs in the fine print is unlikely to satisfy laws in any state — instead. pared to adapt to changes in the legal landscape. even though that But where marketers see exciting opportunities. Among other things.The FTC invited the public to file comments by Jan. Fortunately. Many of the companies COPPA generally requires Web site operators to ob.challenged by Florida’s tain verifiable parental consent before they collect. Although the FTC was due to review its COPPA Rule in 2015. (a) many text message campaigns are subject to the Telephone Consumer Protection Act. the FTC announced that it would begin its review in 2010 to deal with rapid advancements in technology. the law requires companies to get consent before sending text messages. the FTC asked whether the rules should be different in the mobile context. failing to get consent before sending text messages to consumers. view the Mobile Marketing Association guidelines for instructions on getting consent. one company paid $7 million to settle accusations of sending unsolicited text messages. Some wireless carriers have also agreed to include provisions in contracts with third parties that dictate how certain disclosures must appear. many law was enacted long before the advent of SMS. courts essentially determined that with consumers. Mon is a Washington-based partner in Kelley Drye & Warren’s advertising and marketing law practice. For instance. Mobile marketers may want to take this opportunity to provide input. ReGonzalo E. Reach him at gmon@kelleydrye. the mobile medium is going to offer marketers more opportunities to interact In a series of lawsuits. but buried costs in the fine print. the investigations. PAGE 23 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . As technology continues to change. so marketers must remain vigilant and be preThe costs of getting this wrong can be 31. it is relatively easy to avoid these problems. Many companies have also gotten in trouble for failing to clearly disclose offer terms. marketers have gotten in trouble for contracts when making disclosures. New regulations and enforcement actions may be on the horizon. with mobile issues. the Florida attorney general has challenged companies that advertised “free” services. 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.

consumers as well as the economy. Year of inflection That said. being passed. presumes – it has a voice in the privacy debate. PAGE 24 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . this year will inevitably see some form of privacy legislation privacy is low-hanging fruit. While I am a firm believer in self-regulation in the area of online and digital behavioral advertising. projects and deals that come across my desk. mobile will this year finally get the credit it deserves. the welfare of U. Mobile media-buying terms now seem commonplace in media buying agreements. with a squabbling Congress and a Republi. and networks are now pushing mobile to their advertiser clients with vigor.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. Mobile site development agreements have replaced the seemingly ancient Web site development agreements. I am now seeing a major increase in the number of mobile-related campaigns. As an attorney who represents advertisers. it laid the foundation for what is to come this year and beyond. current efforts in this area may not be enough to stave off legislation.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. Geo-targeting has already been tagged as one of the areas that legislators see the need to protect. Moreover. summaries and studies that seemingly get released in droves these days by one agency after another in Washington that assumes – or better said.S. agencies and networks. Geo is targeted Between the two separate consumer privacy-focused bills currently pending in Congress and all of the privacy reports.

If Facebook were a country. testimonials and enrameters for these platforms in the areas of data privacy dorsements that require more narrowly tailored discloand behavioral marketing. though under the with the newest federal agency on the block: the Bureau guise of greater regulatory oversight. a New So. advertisers and agencies need to be prepared to Between the floods in Pakistan. sures. bloggers who need to be transparent or anything Maybe that will force Facebook to finally figure out a green-related. Reach him at awsnukal@reedsmith. social media and the mobile device took on another dimension – a We are seeing a return to consumer protection enforce. leads me to believe 2011 will be a year of inflection for mobile. privacy policy that works. this will be a year where the Federal Trade Commis. The Facebook data banks have more information on us than any other source worldwide. While we all hope and pray that nothing devastating will This point is especially true if your business touches the occur in 2011. sion and the United States will get back to basics. New page for privacy Who does not have a Facebook page? By the end of 2010. we saw throughout 2010 the power of causeAlso.This. ti and political campaign contributions. including your local DMV. charities and nonprofits will likely harness financial services for giving.related marketing.that require better substantiation. ads about mortgages. texting and usage rates. with more than 220 million of them accessing the network via a mobile device. trailing just China and India. The social network is set to close in on 600 million users this year. credit cards or free checking. as you will now have to deal these tools more effectively in the year. it would be third in size. vetted and even litigated. the number of Facebook members exceeded 500 make sure you have sound legal advice. By that I mean. Adam Snukal is a senior associate at Reed Smith LLP. I expect we will figure out how to monetize both online and mobile social media more effectively this year. Mobile profits causes Vet blanket Finally. the earthquake in Haihave advertising reviewed. while at the same time establish regulatory pa. of Consumer Financial Protection. coupled with continued exponential growth in mobile surfing. whether your advertising strategy consists of claims York law firm. PAGE 25 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . ment actions with alacrity on all levels.

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. it is important to have a mobile-specific merchandising strategy within these destinations to drive sales. cofounder/CEO of shopkick. Many retailers have yet to address the mobile commerce opportunity of implementing personalization as the basis for their optimization. which launched its mobile commerce-enabled site Oct. A good example is Baby Phat. “Giving shoppers an incentive to visit is the first step in converting them to loyal shoppers. then why does nobody reward consumers for walking into the store – why only for actual purchases?” he said. “Our entire outlook is mobile. 4.” said Cyriac Roeding. Because mobile shopping sites display little content. it is paramount that all offers and products are relevant to each consumer.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. “If getting people into the store is so important. 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.” Pushing right buttons Personalization on a mobile site could mean many different things. San Francisco. “All indications from our first several months in market show that the outlook is positive. New shoppers are assigned a cookie when they land PAGE 26 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . Merchandising on mobile means understanding the mobile user specifically and how this person differs from shoppers on the PC.

This type of behavioral targeting is ideal to try and drive sales through product recommendations to users who search a mobile site. “The focal point should be the product the visitor is searching for. which begins tracking from the first click. CA. Wiscot recommends that retailers make their mobile is important on a mobile site. “Now that data has been collected with these first launches. “We are projecting 400 percentplus gross merchandise value growth in 2011 from Brands can also use this information down the road to mobile customers. vice president of marketing at Buy. the Baby Phat site personalizes the homepage based on how that person arrived at the site – for example.on http://m.” 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. They should study what customers are browsing and searching and make the shopping experience easier. Soft landings When incorporating mobile.” merchandise products and product categories to that particular user. 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. give them a seamless PAGE 27 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . from a paid search keyword. retailers will now use the information to construct roadmaps building on successful results. Online retail firms such as eBay and have mo. Mr. But even before the shopper clicks on an item or category.” “Purchase” and “Add to wish list.” products they need. provide the most common desired details on the landing page and. step of the way for the most effective optimization. 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. Aliso Viejo. “Many large retailers launched mobile beta programs in 2010. “Mobile customers look for speed and simplicity when shopping. finally. Wiscot said.” he said. Including a search functionality front and center Mr. marketers should focus on consumer needs.” Mobile users are on the go and looking for information “Give them fast resources to find a product when they’re on the go.“In 2011. as well as a “Homepage” or “Homescreen” tab to take the visitor to the opening page.” said Jeff Wiscot.

senior vice president and director of digital innovation and strategy at MSLGroup Digital. how does a retailer use their current as. PAGE 28 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .Mobile commerce is rapidly changing the way that conparing prices. sumers manage their own shopping time. Atlanta. thread opportunities for engagement with a consumer using a mobile device?” he said. “We also believe that social media integration within the mobile commerce sites will become an essential tool for driving organic traffic to those sites. The top activities that consumers use their mobile device in shopping are calling. Shopping is no longer limited to those times when in a brand’s store or visiting a Web site on a computer. call centers – to vider Siteminis. stores. marketing.” he said. com. president of mobile commerce platform pro.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. Timpson said. It can also drive mobile users to branded applications that offer an even more optimized shopping expertise tailored for specific devices. Amazon. New York.for brand engagement can lead to shopping anywhere. mobile-savvy merchants will look for innovative ways to engage mobile shoppers in ongoing mobile communications programs via SMS.sets – like employees. “Also.comparison a snap. The mobile Web will become the most essential channel for retailers because it offers the best discoverability via search. More“The key to a comprehensive strategy in the mobile space over. relevant offers that drive in-store and online traffic. per Steve Timpson. have made price where the intersection points are with the retailer’s cur. which is a fantastic channel for delivering timely. texting or sending a picture to Anytime.” said Webster Lewin. viewing product reviews. actually making purchases or looking for deals and coupons.” Mr. anywhere shopping someone regarding a potential product purchase. mobile applications such as Red Laser and more is to evaluate each of these activities and determine threatening to other retailers. visiting a mobile Web site or application. rent business attributes. Mobile shoppers are spontaneous and the opportunity “In other words. 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.

there will be more sustained and consistent efforts driving consumers to mobile shopping sites and services. “Apps are definitely in the mix. the highest frequency mination for app development and deployment must be of engagement. Channeling platforms Siteminis’ Mr. SMS and email into its mobile portfolio. “The mobile Web will offer the most flexibility in creating cross-channel interactions with the largest group of “Painting with a broad brush. mobile strategy. applications. social media. mobile Web and in-application display banners. as well as SMS-powered coupons and loyalty programs. 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. Timpson said. so brands need to monitor their customer’s activity across all channels. thought through carefully.” MSLGroup’s Mr. the deterreach for customers and. Timpson said a high-functioning retailer will incorporate mobile Web. but with the fragmenta“From this basic starting point. Lewin said. however. Many retailers already understand that the mobile consumer is a more engaged consumer. much of the mobile shopping activity can ultimately lead to a sale in-store or on the desktop Web site. As more brands adapt to that reality this year. Tactics will build upon those that have proven to be effective including paid mobile search.” he said.” PAGE 29 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .“Because mobile has allowed virtually any time to be shopping time.” Mr. a retailer has the farthest tion of operating systems and form factors. frankly.

reducing the head of mobile products at payments franchise Visa. The case was developed by DeviceFidelity and has been tested in trials with financial institutions. “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. In 2011. and the Android-based Samsung Vibrant number of transactions. Visa accountholders will use a protective case that incorporates a microSD slot. that model has For the first time in Visa’s history. researched purchases. friction of everything from impulse buys to wellSan Francisco.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. Mobile payments via SMS. bile wallet to replace cash and plastic. which want to compliant products. the mobile Web and applications are becoming more commonplace.” said Dave Wentker. However.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. or PSMS. For the iPhone. the number of players and PAGE 30 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . the biggest leap forward will come from commercial deployment of Near Field Communication technology. increase the prevalence of direct carrier billing.” he said. Chips fall where they may In addition. Galaxy S. North America through fully integrated NFC That infrastructure will eventually enable the moand microSD technology in 2011. ality. a mobile contactcome under scrutiny from less payment solution is now included in the list of Visa the carriers. NFC chips will finally be installed in hand“We are looking for. iPhone tant. and in 2011 we’ll see significant growth in the 3GS and 4. with online retailers such as Amazon and eBay successful driving sales through those channels. security and plenish virtual currencies usability testing of the via premium short messagVisa payment functioning service. representing three of the leading mobile operating systems in the world.“There is no dispute that mobile payments are impornology include the BlackBerry Bold 9650. Smartphone models compatible for use with this tech.

99. Preena said. $1. He calls it a fixed tariff product. as merchants are losing a significant amount of their conversion ability. those coming up with new ways to meet carrier Mr. “Premium SMS is dead. “However.” PAGE 31 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . is not well suited for microtransactions—it makes the current model unviable.” said Poojitha Preena.not made for microtransactions.” “In 2011 there will be a lot of growth and a lot of infrastructural changes and change in how carriers approach mobile payments. which is going to create a significant issue. there is not a lot of flexibility. 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. it will be a case of the innovators getting strong.” he said.S.” Mr.99. some mergers-and-acquisitions activity. “What you will see in 2011 is a significant amount of change from a transaction standpoint. “In [this] year. retailers and publishers. San Francisco-based consultant for Payfone. “In the last 18 months. premium SMS. $2.” he said. “That is another reason premium SMS is not interesting for mass merchants. according to Payfone. 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.99 and so on. the amount of time mobile payments companies are getting in front of brands. where the offerings have to fit into one of several buckets— $0. ting stronger. because from a merchant perspective. Preena said the user experience of premium SMS was needs and merchant needs.” he said. a significant amount of traction has been achieved to use premium SMS for offdeck content. has communicated that they will no longer allow micro-billing via SMS. while highly suitable for ringtones and wallpapers.

search. 2. especially when retailers have recognized that consumers will not As mobile commerce grows. according to Juniper ReBlackBerry AppWorld and Windows Phone 7 App in to a retailer’s mobile application and.per Research reported that the mobile retail market will abled smartphones and access to app stores. This is no surprise. according to Data Innovation.2 billion in 2011. Mobile app store revenues will exceed $6. are some stats that indicate what to expect in the 4. consumers who are signed up for the alerts say that such services affect their decion mobile. sion to buy products in-store. The mobile retail market will continue to grow. value of digital and physical goods that consumers buy PAGE 32 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . exceed $12 billion by 2014. 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. Here ing handsets in the retail cycle. The market researcher predicts that by 2012. Research In Motion’s bile commerce and payments. per Placecast. Junidrastically as more consumers have Web-en. so will the amount of data leave home without their mobile device and are includspewed from all the players in the ecosystem. the the application market will reach new heights this year. Con. Seventy percent of smartphone owners use mobile purchase. one-third of U. With the success of Apple’s App 5.S. according to Gartner.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. Applications will continue to be key drivers of moStore. Google’s Android Marketplace.

per Adobe Systems. and ping for its 800-plus brand clients from Nov.600 percent in 2010. product information and worldwide. 17 to Dec. home furnishings/ housewares (6 percent). 11. mobile online shopping excluding travel in the United States doubled to total approximately $3. mobile commerce sales are divided as follows: travel (31 percent). In September 2010.S. ABI Research developed an analysis of the current mobile commerce merchants in the U.$1. entertainment tickets (3 perPAGE 33 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .5 billion. to ensure that usability is never compromised. cent) and all other (12 percent). Shopatron’s analysis of multichannel holiday shop. Travelrelated purchases such as airline tickets and hotels added another $1. 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. Based on initial growth data.4 billion by year’s end. Eighty percent of businesses have or plan to have a mobile commerce-enabled site. 9. In 2015. including mobile. 2010 found that mobile represented 2 percent of commissioned by Liz Claiborne. Budgets for mobile advertising skyrocketed from 7. browse a retailer. a discount. 12. sales in this period. office supplies (7 percent). 48 percent of smartphone owners pre8. or 12 percent of global ecommerce turnover. 32 percent have not measured their ROI or do not know how to measure it. More marketers are leveraging mobile and must deliver consistent. according to InsightExpress. Mobile bar code usage grew 1. Web usage.S. 14. ABI Research predicts that mobile online reflecting increased adoption of smartphones for every. ABI Research reported that in 2010. U. This year.via mobile will reach $200 billion globally. If given the choice between visiting a Web site on a mobile phone or downloading an application to shop or holiday season. the company expects mobile sales to double by the 2011 15. according to a study 6. 6. per FitForCommerce.2 billion in 2009 to around $2. apparel (13 percent). books/music/DVDs (9 percent).4 billion in 2010. according to Scanbuy. will be responsible for $163 billion in sales day activities such as shopping. rich experiences across all channels. computers/electronics (20 percent). For 2010. 10. retailers should look at traffic and figure out how to measure their ROI. those ads are influencing shoppers. Although 41 percent of merchants have seen positive return on investment from mobile commerce.

“It does not surprise me and it showcases the rapid transition of shoppers to the mobile channel. as well as increased consumer confidence in mobile commerce transactions will lead to a boom in revenue.” she said. MA. whose mobile commerce sales comprised just 1 percent of the company’s total revenue in 2010.” said Sucharita Mulpuru. services and digital and virtual goods. EBay generated close to $2 billion in global mobile sales in 2010— and expects even more in 2011. Although the percentage is a small PAGE 34 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . vice president and principal analyst of ebusiness and retail at Forrester Research.REVENUE Sky’s the limit for mobile commerce sales By Dan Butcher A dvances this year in mobile payments for physical products. Hail sales Another example is 1800flowers. On the mobile commerce side. 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. Cambridge. “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.

ToPenny pinching and pulling tal transaction value is projected to reach $245 billion In terms of opportunities. whole Internet usage model is becoming dominated by mobile devices. down to just a few cents. Travel-related purchases such as airline tickets and hoMalhotra said.“The choice is 100.5 billion. representing 5 percent of the worldwide mobile user base. tiated payments will dwarf.” he said. England. pay-per-track for streamed music and pay-perpage for publications. “We forecast growth in application store-billed revenues. tracks the iTunes senior vice president of marketing and alli. anything we have seen in PC-based ecommerce so far. In the mobile commerce space. the outlook for While the mobile payments revenue in some mar. see-do style ping excluding travel in the United States doubled to apof transactions means that the volume of mobile-ini. Food delivery site GrubHub has steadily expanded its mobile footprint.” he said. “If all other things remained constant.” payments is continued growth.” According to Gartner analyst Sandy Shen. the retailer has experienced huge mobile growth since 2009. application store revenue volumes would cause a 2. and traditional off-deck content revenues. Bango’s North American estimates should be welcome news to digital The number of mobile payment users is expected to merchants worldwide. listened to and number of pages downloaded. commerce channels. enue. Shop till you top ABI Research reported that in 2010. which is equivalent to approximately a 150 percent increase in value compared to 2010.5 times growth in rev. Bango projects digital mobile commerce for 2011 to surpass $4 billion in North America. tels added another $1. This is the idea of enabling charges “We forecast an easing-back of carrier on-deck revenues well under a dollar. and its total revenue from mobile orders increased to approximately $7 million in 2010. 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. PAGE 35 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .” Mr. frequent. view.000 readers paying $9 a month. reach 340 million in 2014. they can pay for videos viewed. Malhotra said. within three years. Cambridge. but perhaps commit to subscriptions to access phone and Apple continuing to generate the lion’s share through tablet content. one area of real potential is in micro-billing. 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. mobile online shop“The opportunities for regular.” said Anil Malhotra. the big picture is that the in 2014. kets in Asia are quite difficult to assess.proximately $3. according to Gartner.4 billion by year’s end. depending on their total growth figure averaged across all mobile digital consumption.The opportunities that this opens up include pay-perances at Bango.

New York. This year.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. most consumers were able to leverage mobile optimized and paid search to find a product or locate a store nearby. including the browser. “To me it means many things. Mobile search advertising will make it possible for advertisers to translate consumer searches into immediate action. and will be in 2011. “With the increasing numbers of smartphones and growing number of tablet devices.” said Andrew Koven. research and validate both their preferences and purchases. president of ecommerce and customer experience at footwear retailer Steve Madden.” he said. social media sites and price comparison tools – and asking questions of their peers on the fly via text at points of purchase.” Clicks for retailers In 2010. “Mobile search will continue to play an increasingly important role in 2011. and even sourcing the best local price. mobile search will this year be an important aspect of driving consumers to these destinations. “Clearly more and more consumers have been in 2010. flexibility and confidence to search. PAGE 36 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . By leveraging mobile offers and loyalty programs. consumers will use mobile search to support more advanced retail scenarios such as comparing prices. utilizing search. finding special offers and discounts. the consumer will more than ever have the freedom. advertisers will drive measurable foot traffic to retailers.

figure out a way to track ROI. 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. understand it and buy it.” Mr. consumers have to be able to quickly get to what it is they want. From a business standpoint. To drive sales. Koven said. Redmond. advanced mobile devices and mobile commerce. said retailers will need to figure out how to make the products for sale in their local outlets more discoverable to the mobile consumers. awareness. overcome potential issues related to mobile coupons and. Koven said. Having an optimized mobile commerce site with proper deep links to ensure relevancy of results is key. “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. “Having the ability to identify where a particular “Small-to-medium advertisers will likely leverage click.action. will give the savvy retailers a sites to drive consumer engagement and immediate leg-up in sales.” PAGE 37 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .” Mr. “For example. “We look at mobile as a multichannel shopping enabler. Koven said. he said. excuse this pun. 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. if a consumer is searching for a particular type of can be found based on the consumer’s current locato-call for their mobile ad campaigns and on their Web tion and. the rules have not changed for mobile. group product manager of mobile search advertising at Microsoft. we need to provide them the most efficient way to find it. “This intelligence is becoming far more prevalent as mobile-optimized search evolves into the mainstream and we apply it as business leaders. WA. Steve Madden’s Mr.” Dennis Glavin. mobile device migration to smartphones and basic know-how.” Glavin said.” Mr. That said. “The larger advertisers will likely continue to make improvements in their Web sites that are optimized for “Inventory visibility is key. most importantly.” he said.” Optimize opportunity The major difference from 2010 is comfort level.

“The effect of this. via the same social networks they use to keep in touch with friends. combined with more new entrants into the mobile operating system arena than ever before. Saks Fifth Avenue.” he said.” said Eric Friedman. “Companies are energized to gain the growing smartphone user’s attention. Marketers and retailers such as McCormick & Schmick’s. as well as enriched interactions with everything around them. which means the best user experience will win. “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. Crumbs and American Eagle Outfitters are complementing their mobile strategy via mobile social network outreach. during and after their shopping experiences than ever before. mean consumers win. “Retailers are now much more in tune with providing an end-to-end experience that starts online and results in an offline sale. Foursquare. “More customers interact with retailers before. Scvngr and Gowalla to get consumers in-store. Consumers are now enticed to shop on a personal level.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.” PAGE 38 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . New York. director of client services at Four- square.

220 million were mobile in 2010. “Mobile is now location-aware. at a store (40 percent) driving traffic to brands’ mobile Web sites. lipstick if they checked-in to any of its participating locations via the Foursquare application. 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. CEO of Scvngr. Hunt begins A whole new wave of startups this year will pop up to Consumers were encouraged to go to four different de. “As an ecosystem. It has to. even more transactions around the mobile device. About 31 percent of consumers check-in at least once a day and 21 percent do so a few times per day. Only 18 percent of check-ins come from Foursquare and 12 percent are via Google Latitude. Of Facebook’s 550 million users. “You’ll have players like Scvngr experimenting with ways to tie our gameplayer more and more directly to commerce at local businesses.” said Seth Priebatsch.take advantage of the Near Field Communication techpartments and unlock shopping tips to get their prize. Indeed. social and fun.Mocial On Foursquare users are competing for a chance to be mayor of a specific location to win a prize by checking in. with 52 percent of Also. Expect to see more social media applications and mobile Web sites incorporate social functionality. Last year. we’re just now experimenting with tying the mobilesocial entity to transactions. social networks such as Foursquare will centralize respondents using it. at a restaurant (50 percent). “All of this experimentation will converge in fascinating ways. Facebook Places is the most popular check-in mechanism. marketers are starting to notice the benefits of Facebook Places is likely to turn into a valuable tool for mobile social media. According to Lightspeed Research. indicating the massive Saks Fifth Avenue recently offered consumers a free Nars opportunity for brands to monetize using the platform. Boston. Facebook Mobile is also cent).” he said. nology deployed by Google’s new Nexus S mobile phone from Samsung. “We’re just at the beginning of mobile commerce. or at work (39 percent). marketers realized the value and virality of including a Facebook Like feature to a mobile site.” PAGE 39 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . On Facebook. brands in 2011.

In mobile the slower progression is largely due to the continued fragmentation of the ecosystem.SOFTWARE AND TECHNOLOGY It’s all about Near Field Communication By Dan Butcher M obile software and technology will make big strides this year. The rise of the HTML5 standard has enabled richer mobile Web experiences.” he said. senior analyst at Celent. and those advancements will have a huge effect on commerce. “Apple remains a leader. The question was and is. There will be continued growth in mobile banking. 2011 will be a banner year to see if a particPAGE 40 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . 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. “Although a critical mass of such phones and contactless terminals at merchants will take years to achieve. banks. location-based applications. banking and financial services. couponing services. 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. “In terms of mobile payments. including if Apple will be available on more carriers in 2011 [the iPhone and iPad will sell through Verizon Wireless and AT&T]. While that is significant. payments. like who delivers on the promise of mobile commerce. the biggest news of 2011 will center on the commercial introduction of Near Field Communication-enabled handsets and contactless mobile payments. “Android has arrived in terms of what devices consumers are buying. per Nielsen Co. but in North America. “Ultimately.” said Paul Kultgen. mobile wallet vendors. while other times it progresses slower than many would like.” he said. Savvy retailers and merchants will be quick to launch commerce-enabled mobile Web sites. director of mobile media and advertising at Nielsen Online. Google’s Android and Research In Motion’s BlackBerry closed out 2010 neck-in-neck for the lead in operating system market share. San Francisco. Platform shoo-ins At times. retailers. Chicago. the big development will be the long-awaited commercial shipments of NFC-enabled devices by mobile phone manufacturers. “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 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. innovation happens in the blink of an eye. retail. with many launching applications this year. Android solving some of the challenges of purchasing apps and others.” said Red Gillen.

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 .” See more NFC While many marketers and merchants have waited years for NFC-enabled handsets and point-of-sale contactless readers to achieve scale.” he said. consumers will be able to tap their phones at a merchant’s contactless POS terminal to accrue and redeem loyalty points. In addition. this year will be a breath of fresh air for many stakeholders in the mobile commerce ecosystem. “This will be a fantastic opportunity for merchants.” boggling array of campaigns that could be devised via the mobile channel.” Mr. While challenges such as fragmentation and lack of a revenue-sharing consensus will persist. although still nascent. Gillen said. mobile coupon redemption will increasingly take place. as it will allow them to track redemption down to the user level. ular platform can create a new offering that fundamen. setting the stage for more targeted. as well as customer relationship marketing and loyalty.” Celent’s Mr. However. Point-of-sale integration with mobile software and technology will offer retailers and merchants the opportunity to drive commerce and payments.and merchants on a limited scale. which enable loyalty and coupon issuance and redemption. effective couponing thereafter. “NFC will move from something only being talked about to being something real and tangible. “The challenge to merchants will be to invest in new contactless hardware and to properly implement campaign management systems. real progress will actually be made this year.“If merchants hope to adopt the mass-market-of-one tally shifts the market. which will be required to deliver mentality of personalized marketing. to the extent that it is available and leveraged appropriately. per Celent. Gillen said.

“We are exceptionally positive about the opportunity for mobile commerce in 2011. past purchases and preferences. increased online sales. retailers rushed to get a basic mobile Web site up-and-running as quickly as possible. New York. more importantly.” Make it personal Retailers focused on creating mobile commerce-enabled PAGE 42 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 . “We’ve heard from online shoppers that they want brands and retailers to provide a consistent shopping experience across channels. one that recognizes who they are and what they have browsed and purchased in the past.” said Bob Cell. but we believe there is an even greater opportunity for retailers to connect with their shoppers. as evidenced by the surge in mobile shopping over Black Friday and Cyber Monday this past year. “Many of our retail clients have seen significant traffic to their mobile sites and. Mobile Web sites will rapidly evolve. “Consumers have stat- ed emphatically that they want to shop using their mobile phone. whether they’re shopping in-store.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. CEO of MyBuys. They want a personalized experience. “In 2010. 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. online or via their mobile phone.” he said. providing more personal experiences based on consumer behavior.

sites in 2010. TX. starting with the homepage all the way • An ever-present search bar through checkout. Lowden said that consumers now expect the of customers.• Rich product images ing mobile experience. “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.• Unique offers merce site. .” MyBuys’ Mr.” he said. 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.• 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. • Ratings and reviews • Store locator Retailers will this year concentrate on revamping their • Order status mobile sites to create a personalized shopping experi. 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. so that retailers can create a rich and engag. • 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. 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. • Facebook and Twitter integration “We’ve seen that by providing a personalized experience. vice president • Detailed product description of marketing at Digby. Cell said.” said Dan Lowden. Austin.

MyBuys’ Mr.” he said. rience. ences for their mobile Web site rather than cut and paste the same content from their ecommerce Web site. “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. Lowden said. “so for those willing to make the invest“Retailers will also realize that in order to provide value to ment. they will need to create unique experi. Cell said. consumers expect their favorite brands and retailers to offer a personalized mobile expequantities. which will only accelerate the adoption curve of mobile shopping.” PAGE 44 Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2011 .” Smartphones and tablets such as the Apple iPad are becoming commonplace.” make consumers feel that they are connecting with the retail brand on a personal level. “It sends the message to loyal customers that the brand knows their shopping preferences and has tailored an experience to meet their needs. they will benefit from increasing consumer traffic their customers.

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