MSearchGroove

In-Brief: The first in a series of quarterly Thought Leadership articles focused on personalization and content discovery for the mobile Internet from Prof. Barry Smyth, ChangingWorlds‘ Chief Scientist, examines the hidden interaction costs associated with surfing and exploring the Mobile Internet. Prof. Smyth concludes that these costs - a sum of the time and effort required by subscribers to access the relevant content they demand - are prohibitive, frustrating, and threaten the future of mobile data usage worldwide. (More in this press release.)

The Mobile Internet is a case of good news and bad news. The good news is that it’s chock-full of compelling content and data services that could more than make up for the worldwide decline in mobile voice revenues. The bad news is mobile data revenues are relatively low - and will remain so - until mobile operators demonstrate the value of the Mobile Internet to subscribers. This is tougher than it looks, since accessing the Mobile Internet is neither enjoyable nor affordable, and no amount of marketing to the contrary is going to encourage usage until mobile operators understand and address the hidden costs.

Put simply, there are two costs that drain both users’ wallets and their patience.

There are the obvious monetary costs associated with Mobile Internet access. These are the direct costs that the subscriber bears, in the form of charges levied by the operator, each time they access the Mobile Internet from their phones. This is a clear direct cost to the user they are faced with each billing period - and it’s the one charge that causes “bill shock.” Common sense tells us high data tariffs will never encourage high data usage. The fact that mobile operators such as Vodafone have recently introduced flat-rate data packages is evidence that monetary costs are indeed a barrier to usage that operators can no longer ignore.

The second type of cost, what I call interaction cost, is perhaps less obvious than a line item on a monthly mobile bill, but it is far more central to the health and continued growth of the Mobile Internet and must be addressed.

These interaction costs reflect the time and effort required by the average subscriber to access the content they consider relevant and genuinely useful. While these costs are less visible to subscribers, they are manifest in the frustration that subscribers routinely experience when they try - and often fail - to find and access the content they want.

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• Posted in
• Recommendation, Mobile Research, Personalization, Mobile Search, Mobile Advertising, Content Discovery

In-Brief: In response to the comment Medio Systems’ co-founder Michael “Luni” Libes recently posted on MSG I tested Verizon’s Get It Now service. My analysis reveals what Verizon delivers - and doesn’t.Mobile search is about allowing users to find what they already know they want. It’s important to get search right, but even power-search does little to encourage impulse buying behavior. That’s where recommendations come in. Unlike search results, recommendations suggest similar content to users based on their search queries. It is also possible to base recommendations on other factors such as browsing patterns, purchasing habits or intelligent segmentation - but the mobile industry, for the most part, isn’t there yet.

What the industry can do is match content recommendations with keywords. At least, that’s what I assumed when I began my study of mobile search/recommendation on the T-Mobile USA and Verizon portals. However, I am forced to conclude that the industry has a long way to go before it properly implements content recommendations. To be fair, the industry has to get search right first, (which it is currently struggling to do), but I believe the industry should tackle these issues in parallel as the technologies are intertwined and mutually beneficial.

In response to my earlier post Luni correctly pointed out that the searches were performed from within Verizon’s Vcast Music application. He stated that “for a better experience on a Verizon phone, subscribers (today) must download the “Get It Now Search” application, which will search not only the VCast Music catalog, but also the ringtones, ringback tones, wallpaper, games, and applications catalogs, all from a single search box.”

Curious to see if there would be a vast difference in the quality of the results I downloaded the Get It Now app to my handset and conducted mobile searches for a variety of content, the results of which I have documented in this post.

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• Posted in
• Mobile Research, Recommendation, Mobile Search, Mobile Music, Content Discovery

In-Brief: Eric Chan shares his research and views on the state of recommendation. Based on a meticulous study of mobile search on the T-Mobile USA and Verizon portals (powered by white label mobile search provider Medio Systems), Eric concludes recommendation is work-in-progress. But, boy, the industry has a long way to go!

I took some time off yesterday to work on my presentation for Search Goes Mobile, an invitation-only workshop from April 28-30 that brings together senior search company execs, mobile operator representatives and top academics to discuss the challenges and opportunities that lie ahead as we create truly mobile mobile search. (More about this closer to the date.)

I also used the “downtime” from MSG for a long overdue mind-meld with Eric Chan, mobile evangelist, thought-leader, blogger and Adjunct Lecturer in the School of Computer Science at Carnegie Mellon University. Eric also founded Caboodle Networks, a company that developed the know-how and the patents to deliver recommendations based on the user’s context. He later sold the company to mobile search platform provider MCN, a move I reported here.

(I’m also proud to report Eric, who shares the MSG vision, will be a regular contributor to MSG, providing us with his take on content recommendation, key players and offers aimed at content cross-sell and upsell, as well as the delivery of relevant and useful mobile advertising. He has also agreed to collaborate with me and Peggy Albright as we develop a series of mobile search performance reports. I’m honored to have Eric on board and greatly look forward to what we can co-create. )

In January/February 2008 Eric compiled some remarkable data on recommendation, research he agreed today to share with MSG.

Before analyzing the results, which he gathered by testing the ability of the T-Mobile USA and Verizon portals to deliver search results and content recommendations, I wish to make it clear that this is not a judgment of T-Mobile USA/Verizon abilities. It is an objective look at service performance and plea to all companies to push the boundaries of what is possible. In fact, Eric commends both operators (and their search provider Medio) for improving content categorization and successfully tackling the issue of query ambiguity. Good progress, but there’s still a long way to go - for everyone…

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• Posted in
• Mobile Research, Recommendation, On-Device Portals, Mobile Search

In-Brief: A detailed look at Mobicious, a nimble newcomer that has quietly signed a slew of deals with content retailers and fine-tuned its own proprietary crawling technology to create a place where users can find everything for their mobile phone. David Chang, Mobicious co-founder and VP of Marketing, talks about the company’s focus on discovery, plans for expansion outside the U.S. and hints at the pivotal role of social media. Shortly after the audio interview Mobicious took the wraps off of SnapMyLife, a mobile photo sharing and social media site. In March 2008, over 500,000 unique visitors from over 180 countries visited the site, which served over 4 million page views. Since then Mobicious reports over 1,000 people are joining the made-for-mobile community site (which has also appeared in the top ten social networking apps for the Apple iPhone). Could mobile advertising be far off? Read on!

When it comes to mobile content, offering more is good. But offering it all is best. This is the thinking at Mobicious, a Boston-based start-up that has made it its mission to become a kind of mobile content/services/apps emporium. The company, which built a “discovery engine”, has partnerships with around 10 major retailers including Jamster and Thumbplay - alliances that have laid the groundwork for an impressive and comprehensive catalog of 400,000+ premium and free content items.

More importantly, Mobicious has developed the IP to spider mobile content sites (as well as user-generated content destinations) and pull in a steady feed of fresh content from the legendary Long Tail…This has allowed the company to launch 100+ content “channels” where users can browse content according to topic and explore related content. (Mobicious aims to improve its Amazon-like approach to content recommendation - but that’s coming a little later in the roadmap.)

One part iTunes, one part Google (as the company has been described) Mobicious is more than a single destination for users to discover all things digital for their mobile phone. The company also reports high conversion rates for its content partners - generally over 20 percent conversion - and has plans in the pipeline to bring the same positive benefits to mobile carriers who tie-up with the company to boost their off-portal traffic and mobile commerce.

As David put it: Mobicious is in discussions with U.S. carriers about “augmenting their current on-deck content with all of the off-deck content.” How would it work in practice? “If you’re a subscriber, you’ll see not only your own service provider’s content; you’ll see all the off-deck content ‘merged’ into one place.” The result is a “one-stop discovery engine for everything that’s out there.” Unlike a Google or other portal/search provider that would no doubt prefer to take center stage as a content super-store in their own right, Mobicious would “forward the consumer off to complete the purchase at the specific site - whether it’s the carrier’s site itself or a third-party provider….We let the consumer complete [the purchase] using the existing distribution mechanism.

Listen to the podcast here. [14.00]

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• Recommendation, Mobile Social Networking, Web 2.0, Personalization, Mobile Search, Content Discovery, Mobile Advertising, Mobile Content, Podcasts

In-Brief: A follow-up interview with Herbert Vanhove, Vice President & General Manager, Qualcomm Internet Services, Europe, which connects the dots in the company’s roadmap and puts the purchase of Xiam Technologies into perspective. Capturing a rich user profile could offer the foundation for scores of services we haven’t thought of yet…Herbert and I offer our pick. What services are on your radar?

When I reported in March that Qualcomm had snapped up Xiam Technologies — an Irish provider of targeted advertising, content discovery, and recommendations solutions for clients including Vodafone, Orange UK and O2 - I knew there was more to it. In my mind, the move clearly cemented the foundation of a new kind of Qualcomm, a company firmly focused on services and personalization - and not limited to the BREW value prop.

Without a doubt, Qualcomm has the corporate DNA for a full-force push into the delivery of targeted (dynamically personalized) content, apps and advertising. Consider the assets it accumulated when it acquired Trigenix back in late 2004. That IP became the basis for uiOne and has since evolved into a product portfolio combining a store-front, a home-screen replacement, and a skinning application that has been deeply integrated within Qualcomm’s BREW platform. Add Xiam, and Qualcomm has the bases covered to make its mark in mobile personalization, recommendation and targeting solutions. Xiam’s MPOS (My Personal Offers System) is software that enables operators to deliver targeted advertising/content to users.

But does Qualcomm see it that way?

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• Recommendation, Personalization, Mobile Content, Mobile Advertising, Content Discovery

In-Brief: Another time that MSG was on the money! Aggregate Knowledge hinted at a mobile deal in this exclusive podcast - and now we know Paul Martino, Aggregate Knowledge CEO, meant the tie-up with CBS Mobile. I caught up with Dave Peterson, Aggregate Knowledge Chief Marketing Officer, late last night (my time) to get the inside track on precisely how the partnership aims to deliver personalized content and relevant ads. Thanks again to Falguni Bhuta & Jennifer Henderson for the quick response in arranging an impromptu Q&A with Dave.

The news yesterday reminded me how much I love my work and why. It is exciting to be that little bit ahead of the curve, consistently and correctly identifying the companies and trends that will have a significant impact on the mobile space. No wonder VC companies lead the new user registrations on MSG and also pack my in-box with requests to discuss cool new companies and technologies. I enjoy the exchange and encourage VCs - as well as the rest of the MSG community - to reach out to me directly to continue the dialogue. Of course, MSG will continue to showcase companies worth watching - so please check back regularly.

By now we have all read that CBS Mobile and Aggregate Knowledge are teaming up to enable content discovery and recommendation and deliver targeted and relevant advertising. But it’s not just about technology; it’s about a seismic shift in mobile advertising strategy. As Jeff Sellinger, Executive Vice President, CBS Mobile, pointed out in a press statement: “Behavioral targeting on mobile phones is the next frontier …because the smaller the screen, the more relevant the content needs to be.”

Trading in key words for technology to tap the collective wisdom of crowds… Is this the way forward? It will be great to hear the CBS side of the story, particularly since this move is the latest in a strategy marked by industry firsts - including the first location-based advertising scheme (together with social-mapping and communications company Loopt) and the first alliance with a line-up of leading mobile advertising companies (AdMob, Millennial Media, Rhythm New Media and Third Screen Media) - to get more bang for the ad dollar. (I’ve contacted CBS for a podcast/Q&A and will circle back when I have it.)

In the meantime, let’s look at what Aggregate Knowledge brings to the table, and the interplay of discovery, recommendation and advertising.

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• Recommendation, Mobile Social Networking, Personalization, Mobile Search, Mobile Advertising, Content Discovery

In-Brief: A look at Aggregate Knowledge, a content discovery/recommendation company that drives highly targeted and relevant content and product placements to consumers based on real-time buzz and collective buying behavior which it monitors across its network of 100+ media and retail websites. The newcomer is gearing up to make its mark on mobile. With one trial in progress (no word on whether it’s with a mobile operator or a content company) and others in the pipeline, it merits a closer look. Paul Martino, Aggregate Knowledge CEO and co-founder, talks about his company and the mobile trends on his radar. Best to listen. Paul is a serial entrepreneur whose social networking company Tribe Network was recently acquired by Cisco.

I first met with Aggregate Knowledge during RecSys 2007, a super-cool conference focused on recommendation engines and technologies. I felt it was a great opportunity to meet with companies sure to make a mark on mobile - and I was right. Aggregate Knowledge has since entered into its first mobile trials, and Paul tells me that other companies in the space are lining up. Why? Because mobile search is great if users know what they want, but most times they don’t. And even if they do, inputting their request on a mobile device can be a pain. That’s where discovery and recommendation come in. (Why I’ve consistently come out for tie-ups between companies in the two spaces - and why we’ve seen a string of M&A aimed to accomplish just that…)

I did the interview a few weeks back, but had to hold off on final production because industry conferences and speaking engagements kept me on the road and away from my studio. But sometimes being a little late is a good thing. Case in point: yesterday’s news that BusinessWeek has chosen Aggregate Knowledge to deliver “user-driven content recommendations” on BusinessWeek.com. How will it work? When a reader clicks on a breaking news story on the BusinessWeek site, Aggregate Knowledge will automatically provide user-driven content suggestions in the form of “More from BusinessWeek.” These suggestions are based on what visitors are actually reading across BusinessWeek.com.

Clearly, recommendation - not search - will transform how users find and buy content. The tie-up with BusinessWeek confirms that this is going to be a big thing in the online. I look for it to be huge in mobile - soon.

After all, the personal nature of device and the emergence of social networking are key factors that play in favor of any scheme that harnesses community buzz to bubble up cool content. (In a nutshell, this is what Aggregate Knowledge does and I encourage you to read my recent column for background on the company’s Pique Discovery Network, an offering that - true to the name - is designed from the ground up to pique the consumer’s interest in targeted content they will most likely find useful and most definitely would not have known otherwise existed.) As Paul puts it: “We think that discovery is going to be a line item on the marketer’s budget the way search is. And it’s not that discovery will cannibalize search or search will cannibalize discovery. It’s much more that there are two ways in which people find content.”

Listen to the podcast here. [10:13]

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• Recommendation, Mobile Social Networking, Web 2.0, Personalization, Mobile Search, Content Discovery, Mobile Advertising, Podcasts

In-Brief: Details from last week’s Q&A with SurfKitchen and Medio covering their partnership to deliver search via the idle screen; SurfKitchen’s “next-gen” ODP strategy, plans to boost mobile search & advertising, and upcoming North American mobile operator win; Medio’s view of the competitive landscape & plans to launch self-service mobile advertising.

Regular readers will recall that I reported on the tie-up between white-label mobile search & advertising provider Medio and leading on-device portal (ODP) provider SurfKitchen last week when it made the rounds at Mobile World Congress. I wrote my analysis based on the press release (coverage here), and requested briefings with both companies. Michael “Luni” Libes, Medio Chief Architect and co-founder, responded immediately and Dave Evans, SurfKitchen CTO and widget guru, followed soon after. Thanks to my able assistants, Andrea Henninge and Bev Nicholson, I now have transcripts of both interviews that I can feature here as well as incorporate into other reports/projects in the pipeline.

To be clear, the partnership between Medio and SurfKitchen is neither exclusive nor unique in the industry (in fact, other ODPs tell me they are planning similar partnerships as we speak). However, it is a development that validates the pivotal position of the idle screen in delivering search and, more importantly, advertising. And we all have our eye on that prize…

Search & advertising + ODP is a winning combination that we’ll see more of this year. This is because mobile operators recognize they must move past using ODPs to deliver what Dave calls the list of “hit” services (such as mobile TV, music, content catalogues, and navigation) which offer limited customization but drive significant revenues. The real value is in harnessing ODPs to support a broader range of services and business models around search, advertising and personalization. (For more check out this thought-provoking opinion piece - and Dave has promised to circle back with a guest column for MSG soon.)

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• Posted in
• Personalization, Recommendation, Web 2.0, On-Device Portals, Mobile Search, Local Search, Mobile Advertising, Content Discovery

In-brief: MoConDi’s one-click viral sharing gains traction. JT Klepp, MoConDi President, talks stats & strategy, and discusses the role of recommendation & reward in the scheme of things. Finally, a cool idea from an Amazon exec merits a closer look.

“Been there, done that” was my initial reaction to a service that rewards users when they recommend content to their peers. That’s basic Marketing 101. But in mobile it’s a lot harder to manage, and the virtuous cycle it creates (enabling users to share premium content in order to sell still more content) can pay off for the mobile operators and content companies that get on board. Indeed, next to social networking, viral marketing, which builds on the connections between members to potentially boost commerce, is poised to gain some serious traction in 2008.

Case in point is MoConDi’s opt-in content sharing application MeYou.

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• Web 2.0, Mobile Research, Mobile Social Networking, Recommendation, Mobile Advertising, Content Discovery

In-Brief: Medio teams up with SurfKitchen to deliver search, recommendation and targeted advertising via the on-device portal. Medio also draws from internal research to reveal search stats and CTRs.

The news today from Medio - that it has partnered with SurfKitchen around an on-device portal (ODP) offering - is both vague and unexpected. I’m left with more questions than answers, but that could change later today. I’ve received an email that Michael “Luni” Libes, Medio Chief Architect and co-founder, is available for a briefing.

According to the press release, Medio, which just launched an ODP based on its own technology, has today teamed up with SurfKitchen to “offer a seamless search experience.” According to the companies, the partnership will “enable consumers to discover and use a broader range of services, as well as search for relevant online content within an integrated on-device experience.”

It’s not clear how this fits together, but, for the moment, it looks like a case of more is better as far as Medio is concerned.

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• Posted in
• Recommendation, Mobile Research, On-Device Portals, Mobile Search, Mobile Advertising, Content Discovery