At the end of last month Openwave Systems published a report highlighting key mobile internet usage trends in North America, based on findings derived from its Openwave Mobile Analytics product. Key themes that Mobile Analytics uncovered included upticks in social networking site usage suggestive of a new preferred method of communication with the potential to unseat traditional forms of messaging such as email for a particular segment of subscribers; an analysis of mobile advertising click-through rates (CTR) that showed clear advantages of targeted promotions; and the growing trend in accessing mobile classifieds via the mobile device.

Amongst the key findings:

Social Networking Usurping Traditional Messaging as Communications Tool
Social networking remains the number one area of interest to mobile internet users with Facebook and MySpace being the top two search terms on both Google and Yahoo! OneSearch. In terms of average hits per session, MySpace leads Facebook by nearly 46 percent, suggesting that MySpace could become the preferred choice of mobile communication for a particular segment of an operator subscriber base and displace some of the most frequently used email offerings. The social networking trend presents a unique opportunity for operators to partner with these leading social networking sites through co-branding efforts with a view to generating incremental revenues from messaging generated from the social networking sites.

Mobile Advertising – Targeting Improves Click-Through Rate
Regarding mobile advertising, Openwave found that while AdMob served the most ads (nearly 7 times more than the nearest competitor), it also had the lower click through rate in comparison to BuzzCity and Microsoft. AdMob’s lower CTR could be the result of generic ads that are not targeted or relevant to the subscriber. Operators can play a vital role in the mobile advertising value chain by providing aggregated data on subscriber behaviour and preferences to ad networks, which could result in better targeting of subscribers that could lead to high eCPM rates and better results for publishers, advertisers, operators and ultimately the subscribers.

Mobile Access to Classified Advertising is a Key Growth Area
Openwave Mobile Analytics also uncovered that Craigslist ranked number 7 within the top 10 search terms on Google, suggesting a trend towards mobile classifieds for jobs, housing, bargain priced goods and services during the current economic downturn.

It would be a useful exercise comparing these results to data from European mobile usage research. Who knows, we might even do the comparisons ourselves when we have a few minutes spare …

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The Federal Trade Commission (FTC)—the US consumer protection agency —offers consumers a number of useful eCommerce guidelines that should also guide organisations looking to offer eCommerce.

The FTC recommends:

1. Know who you’re dealing with. Confirm the online seller’s physical address and phone number so you can contact them if you have questions or problems. If you’ve never heard of the seller, check its reputation with the Better Business Bureau or the state attorney general where the company is located, or one of a number of consumer rating sites. [Operator Insight: Credibility is essential on the internet. Provide as much real-world information as you can, to reassure potential buyers that you're a solid business.]
2. Know exactly what you’re buying. Read the seller’s description of the product closely, especially the fine print. Words like “vintage,” “refurbished,” “close out,” “discontinued,” or “offbrand” may indicate that a product is in less-than-mint condition. Some name-brand items with “too good to be true” prices may even be counterfeits. [Insight: Detail is everything]
3. Comparison-shop. Check out Web sites that offer price comparisons on similar items from different manufacturers or different Web sites. Some price comparison sites favor their advertisers’ products, so it’s a good idea to look at more than one. And remember to compare “apples to apples.” [Insight: Check out what your competitors are offering. If you can't match their prices, don't panic -- provide exclusive added-value extras that they can't match]
4. Check the privacy policy. The company’s privacy policy should let you know what personal information they are collecting, why, and how it’s going to be used. [Insight: If you're not quite surewhat to include, look to some of the leading websites and see what they include in their privacy policy]
5. Pay with a credit card. It offers you the most protection as a consumer. Don’t send cash. [Insight: offer as many 'safe' payment options as you can -- credit card, PayPal, Google Checkout etc]
6. Use a secure browser. Look for an unbroken key or padlock at the bottom of your Web browser window to ensure that your transmission is protected. Buy only from Web vendors that protect your financial information. [Insight: protection is really, really important]
7. Consider shipping and handling costs. Factor these into the cost of the order and choose the delivery option that best meets your needs and budget. [Insight: be upfront about your shipping costs -- you'll save on returns, disputes and lots of other grief]
8. Print records of your online transactions. Save the product description and price, the online receipt and copies of every e-mail you send or receive from the seller. [Insight: where you can, provide print-friendly versions of your pages]
9. Understand the return policy before you buy. Can you return the item for a full refund if you’re not satisfied with it? If you return it, are you required to pay shipping costs or a restocking fee? [Insight: develop a returns policy and post it clearly on your website]
10. Check delivery dates. An FTC rule requires sellers to ship items when they say they will or within 30 days after the order date, when no specific date is promised. If the vendor can’t ship the goods within the promised or 30-day deadline, it must notify you, give you a chance to cancel your order and provide a full refund if you’ve chosen to cancel. [Insight: say when you'll deliver. If you can't meet the date, communicate. No exceptions].

If consumers feel they’ve been misled or deceived, they can file a complaint online at www.ftc.gov. [Insight: don't make them need or want to do so]

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In its just-released research study EUROPE LOGS ON – European Internet Trends of Today and Tomorrow (April 2009), Microsoft projects that “based on current growth trends, Internet consumption will outstrip traditional TV in June 2010, averaging 14.2 hours per week against 11.5 hours for TV”. Yes, that’s just June next year, just over twelve months away as we write this.

How is that possible? The Microsoft report delves into recent European Internet statistics and mounts a strong argument, going on on to observe that:

“The demand for non-stop connectivity will fuel the migration of online services from the PC onto other everyday devices – resulting in a shift towards seamless PC, TV and mobile experiences. Soon, it won’t matter what device you use to connect to your digital world – people will be able to communicate and get access to information on demand, anytime, anywhere.

“To continue to make the most of digital media and to engage with this digital generation, advertisers need to adopt new marketing strategies that create a conversation with the consumer, provide entertainment and fully embrace the new opportunities made available by technological innovations.”

Microsoft’s specific advice to advertisers attempting to engage in the digital arena:

1. Understand the environment
   Put the message into the right context. Research from Microsoft Advertising emphasises the need to overlay time, place, mood and motivation as digital is unique in delivering on so many different motivations and moods (Context Matters, November 07)
2. Move away from ‘push marketing solutions’ and join the conversation
   Information distribution is today driven by consumers and user generated content has given people a voice online. Digital is the only channel which can offer real-time conversations between brands and consumers – being at the same time both intimate and anonymous. Advertising that encourages interaction, input and community with this digital audience can help drive understanding of, and is more likely to be successful, in shaping consumer sentiment towards a brand, or having a direct impact on a new product launch for example
3. Reach out to the ‘creators’
   Identify the new ‘super influencers’ who are making the most of social media tools including blogs, video and podcasts. Online is the “point of influence” for many purchase decisions and the place where many brand associations are now being built or deepened. Recent Microsoft Advertising and Synovate research found that half of all 18-24 year-olds either review or offer opinions about products or services online
4. Provide content that is relevant, engaging and personalised
   Ensure advertising really appreciates this new role of the consumer as a “self regulator” – actively choosing content and messages relevant to them. Consider developing innovative and strategic marketing campaigns that go beyond traditional advertising formats. For example, rich media and audio/video which allow the creative community new ways to deliver emotional brand impact in the digital space.
5. Don’t bolt on digital
   Impactful and effective advertising content requires careful consideration and planning. Digital needs to be an integrated part of an advertiser media plan and marketing strategy. Embrace technology which is at the centre of enabling better integration of digital into the broader communications planning process.

All good advice as far as it goes, but our research indicates that marketers are out of their depth and unsure how to tackle most of the above five suggestions. We have a whole lot more to say on the subject in the current edition of MARKETING RAG. Subscribe now and we’ll send you that edition.

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Addressable TV Advertising, a long-sought dream of television marketers, is about to become reality.

AdAge is reporting that Canoe, the [poorly-named] technology consortium backed by the six largest cable media companies in the US, will launch the television industry’s first national addressable advertising system next month.

What is Addressable TV advertising and why should it concern us?

Direct Marketers have long been able to slice and dice the country (any country) into different segments, typically based on income and whatever other data is gathered and analysed by census-takers and other researchers. Want to mail to higher-income households in a specified geographic area? No problem. But up until now it hasn’t been feasible to apply that same segmentation and targeting to television.

Even though the cable television operators have always known where you live — and could have matched that address against commercially available databases to deliver unique content just to your household (and to other households that have a demographically similar profile) — they haven’t offered that service in the past. The effort involved, and the technology cost, to offer micro-targeting to advertisers who only had the one national commercial anyway, meant the exercise simply wasn’t worthwhile.

Now, however, as video migrates to the web, it’s never been more important to offer bespoke targeting — especially when competing with organisations that offer geographic, contextual & behavioral targeting and even personalised targeting on sites where registration is required. As marketers get more adept at micro-targeting it’s inevitable that they’ll demand similar capabilities from the previously mass media.

One size, it turns out, no longer fits all.

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