Made-for-mobile software will drive device, data-plan adoption
The Apple iPhone's arrival in 2007 showed consumers the mobile phone's potential beyond voice, text and email. That device and copycats will spawn a rash of made-for-mobile software applications, which, in turn, will push device and data-plan adoption.
That assessment comes from Robert Jones, director of marketing at Rave Wireless, a New York-based mobile software and managed services provider for colleges and universities. He tells Mobile Marketer's Giselle Abramovich, the device-application-adoption cycle will take off in 2008. But carriers better be careful or else they might turn into another AOL, he cautions. Excerpts from the interview:
How will 2008 differ from 2007 in regards to mobile software and technology?
The launch and initial wave of sales of the iPhone in 2007 will start to change people's expectations of a mobile device in 2008.
Apple's marketing campaign showing that the phone can do many more things than just voice and text will start to awaken the middle portion of the market, i.e. it will creep slowly past the early adopters in 2008.
That device and its competitors will drive a wave of applications made for the device, and some of those applications may in turn be good enough to drive device and data-plan adoption. This cycle -- again, I expect it will happen slower than many seem to think as consumers are a stubborn bunch and need compelling value -- will really start to take off in 2008.
What does this mean for marketers?
Two implications for marketers. First, the mobile device continues to be the most private, protected device that consumers own. That will not change quickly. Get over it. Traditional advertising, like most traditional big-screen media, won't work on the phone. Most people don't want your text or banner ads on their phone, unless it's a really compelling offer for the low, low cost of free.
Next, I believe there is room, however, for cleverly designed contextual marketing in the guise of applications. Google Maps on the phone -- what a great way to sneak in restaurant reviews, etc.
Imagine a mobile application that could help you find someone to share the $50 cab ride from the airport to downtown, and that application brought to you by, say, the most aggressive cab company.
Marketers will need to get really creative in the mobile world and wrap their offers in something of real value to consumers.
What other trends do you anticipate in mobile software and technology?
Location awareness is going to be a big new thing in 2008. The carriers are slowly opening up their GPS location services to select vendors -- Rave Wireless is one -- and really compelling made-for-mobile applications can be created with location awareness.
For example, our Rave Guardian product allows college students to share their location and travel progress -- think of walking across campus late at night -- with campus police, so the police know exactly where they are if they need help. Students and parents love this application and so do campus administrators.
That is one example of a valuable location-based application. The trend of carriers making location assets available and others like Google mimicking location awareness through their My Location feature will open up a lot of creativity in 2008 on the part of application developers.
What were some key developments in mobile software and technology in 2007?
Launch of iPhone for symbolic purposes and to open consumers' minds. All the buzz about Google's entry into the mobile space means it's becoming real. What doesn't Google do these days? Their My Location feature is a tiny preview, I believe. The death of most MVNOs proves that that business model can't compete with the big powers.
Who do you anticipate will be key players in this area in 2008?
The big four carriers will still rule the roost for now, maybe five as Alltel seems to be picking up steam. But they really need to reassess their business models quickly or they will become the AOL of the mobile industry.
From a device perspective, I like Apple. I didn't get an iPod until the Nano came out. Imagine what their Nano equivalent of the iPhone will be? [Also] Samsung, which makes great products but just doesn't get the attention that Apple does because they don't have the folklore of Apple in this country.
From an application perspective, I like Google -- just such deep resources -- and Microsoft, who you never out.
What challenges do you think mobile software and technology providers face in 2008?
The big challenges are that consumer adoption of data plans remains sluggish.
The big carriers continue to complicate the industry and keep pricing high, which means barrier to innovation in mobile apps remains high. Not good for the consumer.
Mobile application providers really need to wake up and live in the consumer's shoes and understand that an application has to be three things to have any chance: a) it has to provide really compelling value to be done on such a limited or small device as a phone, b) it has to be really easy to find and use; don't forget the find in this equation.
And c) it has to be free or cheap as long as consumers are paying outrageously high cell phone bills. That will change in time and free up more disposable income but for now it's reality.
This article appeared in Mobile Marketer's Mobile Outlook 2008 . It is saved in the Classic Guides section on www.mobilemarketer.com . Please click here to download the PDF file.