Xiam/Qualcomm Study Reveals People Would Buy More Mobile Stuff – If They Could Only Find It; Are Social Recommendations The Next Big Thing?
Regular readers will recall that I am sharply focused on tools/technologies and companies providing personalization and recommendations solutions to mobile operators and content owners. My passion stems from my own ongoing research into content discovery and – more recently – work on a new report on mobile personalization and recommendation. (If you are a company in this space, then I invite you to contact me directly.)
At first, the endgame was about boosting personalization to improve the mobile operator portals (that forced us to navigate through multiple menus) and cut the clicks to content that we genuinely appreciated. Typically, operators implemented personalization tools to bubble up cool content to the idle screen, taking the hassle out of finding and buying content on the device.
Fast forward, and on-portal is no longer where (all) the action is. The explosion in the number of app stores — software applications supermarkets run by handset makers, operators and independent players such as GetJar – increases our interest in finding stuff we like, and the sheer abundance of apps turns up the pressure on companies across the emerging ecosystem to make finding cool stuff a no-brainer.
By way of background, the content discovery dilemma was expertly outlined in a recent post by Alfred DeRose, who heads Tego Interactive, a Web and mobile product and services company specialized in integrated solutions for converged businesses determined to get more out of their digital assets. Working with clients to address a variety of issues around content discovery has allowed Tego to create a series of “cheat sheets” and white papers describing the problem and offering suggestions/solutions. So, watch this space.
PERSONALIZATION FOR THE PEOPLE
Put another way, content discovery is back at the top of the agenda and interest in personalization/recommendation technologies (to expose people to apps they are likely to appreciate) is also on the rise.
I know this from my interviews with vendors and operators, and from studying a raft of recent stats confirming (through app downloads) that we do indeed want more mobile stuff than ever. However, a disturbing hole in the argument has been (until this week) a lack of insight into what the people want.
Indeed, the underlying assumption has been that poor discovery (and even more miserable mobile search, as this in-depth post from my last mobile search master class shows) frustrates us (because we can’t find what we want) and forces mobile companies (operators/content owners and now developers) to leave money on the table.
So – how serious is the content discovery dilemma, really? Are people really frustrated? And would they buy more if it was easier?
NEW SURVEY
Thanks to a new survey of 2,666 mobile users in the U.S. and the U.K. — conducted by research firm TNS Global on behalf of Xiam Technologies, a Qualcomm subsidiary providing discovery and recommendations solutions to mobile operators – we finally have some thought-provoking stats.
The key data point: 80 percent of people experience some sort of problem getting stuff. The three biggest barriers: stuff is hard to find, phone and interface issues are a pain and the content is just plain irrelevant.
MOBILE SEARCH DOESN’T CUT IT
People are relying on mobile search to discover content, with some 68 percent using search engines to find what they want. 58 percent type in the URL. But – when it comes to effectiveness – people report URLs (83 percent) and bookmarks (89 percent) are the best ways to find content. Mobile search comes in a close third. Interestingly, 67 percent said the handset manufacturer portal was an effective way to find content; 67 percent said operator/service provider portals were effective.
Overall, people complained they are unsuccessful in accessing/purchasing (!) content they want 27 percent of the time.
WOULD PERSONALIZATION HELP?
In principle, it would. Assuming it was easier to find personalized stuff, almost 60 percent would spend more time accessing content and almost 40 percent would spend more money. Would people accept customized recommendations to find stuff they like? Approximately half of people survey in both the U.S. and the U.K. would accept suggestions.
HOW MUCH MONEY CAN BE MADE
Specifically, people said they would spend over an hour a week (55 percent increase) more accessing stuff with their mobile phones and over $8 per month (148 percent increase) if finding and buying was a no-brainer.
In addition to these consumer insights, the report is chock-full with interesting stats about the type of content people download (apps lead the pack) and pay for (games); top mobile sites (service provider destinations/portal trail the likes of Google, Yahoo, Facebook and the BBC); and the gripes people have about their providers (too pricey, too difficult to use and un-cool content).
MOBILE SOCIAL FUTURE
My personal thanks to Martin Clancy, Xiam Marketing Manager, for bringing my attention to the report (in a pre-briefing) and for arranging an interview with Colm Healy, Xiam CEO, to connect the dots. Naturally, much of this analysis is reserved for my report.
However, one exciting observation I can share is the pivotal importance of “significant others” (peers, friends, like-minded people) in the content app suggestions we can expect moving forward.
As Colm put it: The space is “in the eye of the storm.” App stores up the ante and force companies across the ecosystem to focus on personalization and recommendation as means to expose people to the stuff they are likely to appreciate and – ultimately – purchase.
App stores are the place to go – but what is going to keep us coming back for more?
Colm believes that social discovery will provide that stickiness. As he puts it: Recommendations from our friends will be the way we find apps.
But the challenge is not just in harnessing rants and raves from our peers to complement personalization and drive discovery. The real work is in creating recommendations that will work across the plethora of app stores coming on line. “There are unique challenges related to app store fragmentation. If I’ve discovered a great app on an iPhone, obviously what I want to do is let my friend know about that great app. But – if they have a different phone – then the question is how to direct them to the right app for that particular phone.”
Another trend high on Colm’s radar: apps to discover apps. As Colm sees it: Smartphones are chock-full of features and functionalities — clever technology that providers could/should harness to sell us on the wealth of apps at our finger tips. It’s all about taking advantage the interface and features such as location, the compass and the accelerometer (to name a few) to help people get to apps they would likely appreciate.
My take: Personalization has been at the center of mobile since the start. First people bought content (such as ringtones) to personalize their devices. Then companies implemented technology to deliver personalized suggestions and idle-screen takeovers as a way to help people navigate the avalanche of content and cut the clicks to content. It’s work in progress. Now the explosion of app stores pushes the content discovery issue back to the top of the agenda for operators, handset makers, developers – everyone. As this report shows, people would spend more time and money accessing stuff on their mobile phones if it were easier to do. Moving forward, people will likely not only appreciate personalized recommendations (particularly if they come from their peers). They may even come to expect them.
Disclaimer: MSG relies on Tego Interactive for the creation and integration of its online and mobile destinations/strategies. Xiam has aligned with MSG to publish a sponsored series of thought leadership columns and contributions beginning in December 2009.
Tags: behavioral targeting, Mobile Search, Mobile Social Networking, Mobile Social Networks, Personalization, Qualcomm, Recommendation, Social Media Marketing, Xiam







November 20th, 2009 at 7:27 pm
[...] 1 votes vote Xiam/Qualcomm Study Reveals People Would Buy More Mobile Stuff – If They Could Only Find It; A… Regular readers will recall that I am sharply focused on tools/technologies and companies [...]
February 1st, 2010 at 2:44 pm
[...] of cool stuff at their finger tips. Apparently great news for companies in the space (and this survey and this guest column from Xiam underline the wider case for recommenders). Now the time is right [...]