41 PERCENT  OF CONSUMERS WILL MAKE SMARTPHONES their next device, according to Yankee Group research. The report also reveals that trends within the smartphone ecosystem are shifting the balance of power between equipment manufacturers (OEMs) and operators.

Yankee further suggests smartphones are the most competitive battleground in wireless today, and predicts U.S. penetration will reach 38 percent by 2013.  More competitive device entrants, tighter budgets, and increased consumer expectations are factors that will force OEMs and operators to collaborate in order to grow. Source

The bottom line: The proliferation of full-featured handsets and the advance of payment mechanisms (other than the ones operators offer) have created some tension, making this an interesting space to watch.   It’s also worth pointing out that, while 41 percent will choose smartphones, the majority (59 percent) of consumers are not going for smartphones as their next device, nor may they even care to upgrade.

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IDLE SCREEN TECHNOLOGY ENGAGES 82 PERCENT IN TRIAL by Celltick’s LiveScreen Media platform. The Telefonica mobile operators group announced the launch of an innovative idle screen marketing solution, Livescreen Media, which broadcasts news, sports, business, entertainment and lifestyle teasers – as well as advertising messages directly to the mobile idle-screens.

Movistar, the Mobile Phone Company from the Telefonica Group, tested the service as part of a six-month trial in Mar del Plata, Argentina, involving around 5,000 customers, and results showed 82 percent of users engaged with the new communication channel on the idle screen.  The platform is also able to segment users based on location, handset type and areas of interest which are generated from tracking user response to idle screen messages. Revenue is generated from content downloads, subscription services and advertising fees.  Source

The bottom line: As I posted on my own blog, the Idle Screen presents an enormous opportunity to drive increased data traffic and service engagement, if issues of bandwidth and battery life can be overcome.  82 percent engagement is a massive proportion of users, albeit in a local and rather limited trial. In my book it begs the question: Is further proof of concept really required?

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PURCHASES ON MOBILE CONSIDERED SAFE BY 71 PERCENT consumers, says an eMarketer summary of recent mobile commerce statistics. The round up reveals the kind of products people want to buy from their phones, which include pizza, movie tickets, hotel rooms, and fast food the most popular.  Internet Retailer, a ranking of America’s 500 largest e-retailers, provides us more proof that mobile commerce is gaining some traction in the U.S. It reports that 5 percent of the top 500 online retailers offer m-commerce sites or iPhone apps. It estimates the U.S. m-commerce market will total $1.6 billion in 2009. Source

The bottom line: This report suggests that the U.S. is ahead of the game in m-commerce. Peggy adds: It also lends credence to the view that mobile advertising (communicating the brand message via mobile) could be just a side-show. The real excitement is building around selling stuff via mobile, a scenario that could put mobile operators (with their trusted payment mechanisms) back on center stage.

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EUROPE TO HAVE 130 MILLION MOBILE LBS USERS BY 2014. A Berg Insight report predicts that the number of European users of mobile location-based services will grow significantly from 20 million users in 2008, propelled by local search, navigation, and social networking services.

Among the drivers: On-device application stores will provide greater access to mobile services for a broader audience, flat-rate data plans will make pricing transparent and more operators are opening their location platforms up to third parties.  More than 20 percent of mobile handsets shipped in 2009 will feature GPS, and the installed base in Europe will surpass 50 percent of total handsets in 2013.  Source

The bottom line: Berg adds more fuel to the location fire with this report. Technological penetration, consumer education, and basic marketing remain key to the success of location services. And we shouldn’t forget that there’s a big difference between having the technology and using it on a regular basis.

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NOKIA ANNOUNCES OVI STORE VISITS FROM CONSUMERS IN 152 COUNTRIES.  Two weeks after the initial Ovi launch, Nokia has revealed a range of statistics about the service. It says that the Ovi Store is accessible from over 75 Nokia devices in five languages and taps into mobile billing from 27 operators. When it comes to free downloads, the Applications category tops the list. Games is the top catgory in premium content.  Many of the most popular applications involve messaging, such as Twitter, Facebook and SMS applications. Source

The bottom line: All-systems go for Ovi. After what I described as a difficult launch, these statistics illustrate that the Ovi Store is now bedding in and beginning to enjoy use with a broad reach.  With improved user experience (which will come when the store becomes pre-installed on devices) will come increased, carrier independent use with a significant global footprint.

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MOBILE REVENUE GROWTH SLOWS TO 3 PERCENT in Q1 2009, according to a Strategy Analytics report. Down from 8 percent a year earlier, the report, “Wireless Operator Performance Benchmarking, Q1 2009,” says nearly 40 percent of all mobile operators saw revenues fall in Q1 2009, compared to just 16 percent in the same forecast period in Q1 2008. The research, which tracks the operational and financial performance of over 175 mobile operators who account for 80 percent of global subscribers, found that a quarter of the operators in emerging markets also saw service revenues fall in Q1 2009. Source

The bottom line: Bleak reading from Strategy Analytics illustrates that the economic downturn has made a global impact on operators, and very few are immune.

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U.S. FLIRTING ADDICTION SEES AN AVERAGE OF FIVE DAILY LOG-INS AND 26 SENT MESSAGES.  Statistics from Flirtomatic, a U.K.-based mobile and online flirting service that recently launched in America, reveals mobile flirting behavior using their service is remarkably similar on both sides of the Atlantic.  This has allowed Flirtomatic to reach critical mass in the U.S. – much earlier than expected.

By way of background, Flirtomatic, with 1.3 million U.K. users and a frequent listing in the top 5 mobile websites, stands out as one of the mobile Internet’s social networking success stories. It also offers an effective platform for advertisers, and reports an impressive 10 percent CTR.  A witty and effective campaign for Storngbow cider in the U.K. resulted in users sending (gifting) their buddies a whopping 340,000 drinks (delivered as drink tokens to their mobile phones) in just two weeks. Source

The bottom line: Given the previous gloomy story, I thought it reasonable to conclude Data Points on a lighter note this week.  Flirtomatic’s story illustrates what can be achieved if the platform, offering and audience are all in synch and the effort is made to benefit consumers, carriers, advertisers, and partner brands.

Tags: Celltick, eMarketer, Flirtomatic, idle screen, LBS, Location-based services, Mobile Advertising, Mobile Marketing, Mobile Social Networks, Movistar, Nokia, Ovi, smartphones, Telefonica

This entry was posted on Friday, June 12th, 2009 at 8:55 pm and is filed under Content Discovery, Data Points, Local Search, Location-based services, Mobile Advertising, Mobile Content, Mobile Research, Mobile Social Networking, Personalization. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.