Mobile Trends 2014

2014 Mobile Trends

Julie Ask, VP, Principal Analyst

February 12, 2014

© 2014 Forrester Research, Inc. Reproduction Prohibited 2

#mobilemindshift

Let’s step back to January 2007

› Now, more than 1 billion Android devices have

been activated and more than 700 million iOS

devices sold.

› Facebook has more then 945 million mobile

monthly active users.

› YouTube generates 40% of its traffic via mobile.

› eBay generated $20 billion worth of mobile

transactions at the end of 2013.

› Source: NBC News and The Associated Press (http://photoblog.nbcnews.com/)


#mobilemindshift

The mobile mind shift

The expectation that I can get what

I want in my immediate context

and moments of need


#mobilemindshift

Your mobile mind shift

Your company must meet these

new expectations.


#mobilemindshift

Agenda

› How will mobile transform your business?

› What will happen in 2014?

› What won’t happen in 2014?


#mobilemindshift

Agenda





#mobilemindshift

Mobile traffic is exploding


#mobilemindshift

Your customers reach for their mobile phones more and more often

Customer journey

Contextual opportunities Mobile moments of truth

Will you be ready to serve them in those moments?


#mobilemindshift

For a marketer, those moments are:

› Loyalty moments

› Manufactured moments

› Borrowed moments


#mobilemindshift

Starbucks relies on loyalty moments in the US and borrows them in China


#mobilemindshift

For an eBiz pro, those moments are:

› Impulse-buying moments

› Influenced buying moments

› Assisted buying moments


#mobilemindshift

The sound of clinking glasses triggers impulse purchases


#mobilemindshift

Agenda





#mobilemindshift

1. The intersection of mobile and the physical world will be a top priority

Walmart’s mobile app uses location as

context for flipping into “store mode.”


#mobilemindshift

ML action: Expand the role mobile plays throughout the organization

Source: www.sephora.com


#mobilemindshift

eBiz action: Expand the role mobile plays throughout the organization


#mobilemindshift

2. Competitive advantage shifts to big data and analytics from experience design

Is your firm leveraging

customer-generated data to

help them easily discover

your products and services?

Do you understand

customer context well

enough to help serve

customers in their mobile

moments?

Are you using customer

purchase data to improve

conversion rates in-store and

online?

Are you collecting data from

products to layer on

services? Or give

customers more control?

Traditional marketing and

customer feedback only

tells part of the story. Are

you tapping into customer

mobile data to understand

what they really think?

Are you engaging

customers in the right

moment to drive the next

purchase or brand

engagement?


#mobilemindshift

ML action: Leverage analytics to engage customers in their mobile moments

› Use data to understand when

consumers are in their exact

moment of need and to meet

that need with the right

message or service.

› Combine real-time analytics

with push notifications to help

deliver contextualized

experiences.

› Integrate your app into your

CRM systems.


#mobilemindshift

Example: Starbucks

– 5 min

• Find nearest SBUX

• Check email, FB

• Check SBUX MSG

–30 secs

• Check balance

• Reload card

• Download song

Purchase

• Order latte

• Open Passbook

• Pay

+30 secs

• Push new balance

• Check email

• Receive receipt for

reload

+ 5 min

• Push new balance

• Check loyalty points

• Listen to new song

In 2013, Starbucks announced that its mobile loyalty and

payment app is used by 10 million customers with an average of

5 million weekly transactions at US stores.


#mobilemindshift

eBiz action: Use analytics to refine the design of services around mobile moments


#mobilemindshift

Anjuke used analytics and A/B testing to refine its lead generation business

• Conversion rates were strangely

low in the evenings – its busiest

time.

• Anjuke conducted A/B testing.

• It learned that the best listings

were no longer available in the

evenings because the spending

caps set by agents had been

reached.

• It reconfigured its algorithms to

ensure the best audience; it also

offered analytics to agents to

increase spend.


#mobilemindshift

3. Mobile contextual data will offer deep customer insights – beyond mobile


#mobilemindshift

4. The audience size in Asia will elevate the region’s role in mobile innovation . . .

Source: Ericsson Mobility report, November 2013


#mobilemindshift

. . . and the gap is growing

Source: Ericsson Mobility report, November 2013


#mobilemindshift

WeChat will turn into a platform play

“Everybody in China is on WeChat. It is not

just IM as you think in the West. It will be

much more than that and become like the OS

on the phone. Brands can push out content,

coupons, integrate payment credentials . . .

Through WeChat APIs, you’ll be able to do

much more. We no longer recommend that

brands launch standalone apps but to embed

web apps into WeChat.”

– CEO and founder of a large advertising

agency in China


› Line’s estimated revenues of $100 million per

quarter come from three main pillars:

• In-game purchases (estimated at 60%).

• In-app purchases.

• B2B advertising through official and sponsored

accounts.

› Stickers are a more expressive form of

communication – not compromising on the

user experience.

› It fits well with the Japanese and some Asian

cultures, but can it succeed elsewhere?

Line has a more advanced monetization strategy


#mobilemindshift

eBiz action: Look to Asia for innovation

ShunKouLiu restaurant app


#mobilemindshift

5. Mobile will sit at the epicenter of mind-blowing exit events


#mobilemindshift

ML action: Define a plan to hire mobile talent and technology expertise

› Consolidation shows that ad-tech companies recognize the need to

strengthen mobile offerings.

› Define a plan to hire mobile talent and technology expertise.


#mobilemindshift

eBiz action: Create a talent and asset “build or buy” acquisition plan

› Consider acquisitions:

• Aetna purchased Healthagen for its iTriage app.

• Google bought Nest.

• Walmart bought Small Society.

› Growth in mobile within enterprises is inhibited

by talent acquisition.


#mobilemindshift

Image source: Smaato; Flurry

6. Mobile advertising will start maturing

› New mobile-centric ad

formats will emerge.

› More mobile ad network will

shift to the exchanges.

› Short videos (5 to 10

seconds) will make a greater

impact on consumers, taking

advantage of higher

engagement levels with

video on mobile.


#mobilemindshift

ML action: Shift the way you think about mobile advertising

› Integrate mobile into your marketing strategy by

taking advantage of mobile’s unique benefits.

› Test new ad formats and compare their ability to

meet your marketing goals.

SIMPLICTY IMMEDIACY CONTEXT


#mobilemindshift

eBiz action: Incorporate ad-network savvy into your app

Customize content based

on your audience.

Use location to shape

service offerings.


#mobilemindshift

Agenda





#mobilemindshift

What won’t happen: Companies will catch up to their customers

› The budget, spend, and expertise gap will not

close.

› Companies will not differentiate tablet and

mobile phone experiences.

› Companies will fail to leverage the convergence

of social and mobile.

› Wearables will not move past a niche market.


#mobilemindshift


› The budget, spend, and expertise gap will not close:

• Build a broader business case to be able to differentiate.

• Expand your KPIs beyond mCommerce revenue and

engagement to justify larger spend.

› Companies will not differentiate tablet and mobile phone

experiences.

› Companies will fail to leverage the convergence of social

and mobile.



#mobilemindshift


› The budget, spend, and expertise gap will not close.

› Companies will not differentiate tablet and mobile

phone experiences:

• Differentiate your tablet approach and split your tablet budget.

• Give your tablet strategy to your online team and mobile to

your ops team.


and mobile.



#mobilemindshift




experiences.

› Companies will fail to leverage the convergence of

social and mobile:

• Engage with younger audiences.

• Watch and learn about mobile plus social in Asia.



#mobilemindshift




experiences.


and mobile.

› Wearables will not move past a niche market:

• It is time to experiment.

• Build commerce and services opportunities on device data

from wearables.

#mobilemindshift

Questions?


#mobilemindshift

Did you know?

› The data from today’s presentation came from

Forrester’s Global Consumer Technographics®

› Attendees can receive a discount to:

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• Marketing Leadership EMEA Forum 2014 - London

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› There are free mobile tools, reports, and assessments

available to you at forrester.com/mobile

* Discount codes are case sensitive

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http://solutions.forrester.com/mobile-ss?cmpid=mkt:soc:ss:MobileTrends2014

Thank you

#mobilemindshift

@JulieAsk

Julie A. Ask

+1 415 355.6002

[email protected]

Thomas Husson

+33 (0) 6 84 82 95 03

[email protected]

@Thomas_Husson

Mobile Trends 2014

Technology

Transcript of Mobile Trends 2014