Archive for June, 2011

Consumers to Spend $2.1 Trillion on Digital Information and Entertainment Products and Services in 2011 Worldwide

Gartner Research firm has found that consumers are on track to spend a record $2.1 trillion on digital information and entertainment products this year. That figure is expected to hit $2.8 trillion by 2015. $1.2 trillion — 62% — is spent on subscription-based communication services such as mobile, voice, and data services, broadband packages, video services, online gaming, and cable TV subscriptions.

28% of that total $2.1 trillion or $600 billion is spent on devices themselves, and 10% is spent on content such as computer software, video on-demand, and pay-per-view services. “The three key technology areas that will offer the best opportunity for vendors during the next three years are:

1) Wireless Broadband – which will enable constant connectivity;
2) Location-based services (LBS) - which will personalize and take advantage of the constant connected state; and
3) Operating systems – which are the foundation for integration applications that can bring it all together.

The total consumer spend is expected to increase to $2.8 trillion by 2015, according to Gartner, Inc. Worldwide consumer spending on digital information and entertainment products and services is projected to reach $2.1 trillion in 2011.

The trend among vendors to offer a diversified portfolio of products and/or services puts them in a better position to seize a larger share of the consumer wallet. Gartner defines consumer wallet spending as the money spent by consumers for digital technology devices and services that are for accessing, consuming and creating content. This wallet is divided into three basic spending types — content, devices and services.

“While a vendor can be a leader in specializing within just one segment of the consumer wallet, there are a mounting number of examples that suggest diversification may be the optimal path forward in the consumer electronics industry,” said Amanda Sabia, principal research analyst at Gartner. “Vendors that diversify their offerings across multiple consumer spending segments earn revenue across the full ecosystem and take legacy services to transform to newer products and services.”

“There are two basic strategies that vendors have used to capture consumer spending that will enable their interconnected consumer experience,” said Mikako Kitagawa, principal research analyst at Gartner. “The first is to concentrate in one consumer spending segment, and the second is to diversify into other consumer spending segments.”

“The challenge to vendors choosing to be hyper-focused on one wallet spending segment is the relentless pursuit of innovation required to maintain segment sales leadership in this one specific segment,” Ms. Kitagawa said.

“Technology innovation opens windows of opportunity for vendors to consider diversification,” said Ms. Kitagawa. “However, technology innovation also opens a window for change among consumers to switch vendors in the pursuit of cost savings or lifestyle-changing technology.”

“The three key technology areas that will offer the best opportunity for vendors during the next three years are: wireless broadband, which will enable constant connectivity; location-based services (LBS), which will personalize and take advantage of the constant connected state; and operating systems, which are the foundation for integration applications that can bring it all together.”

Additional information is available in the Gartner report “Market Trends: Diversification Trends Capture More of Consumer Technology Spending.” The report presents what products and services make up the consumer wallet, and a high-level analysis of the varying strategies to capture that spending within and among the various segments.

June 28, 2011 in Blog   |   No Comments

Locally Targetted Mobile Advertising expected to climb to 78% of Mobile Ad spending

Mobile Ads To Hit $4 Billion By 2015

Locally targeted mobile ads will have a 70% share ($2.8 billion) of the expected $4 billion in overall U.S. mobile ad spending by 2015, according to Chantilly, Virginia-based BIA/Kelsey. In addition, total US mobile ad spending will balloon from $790 million in 2010 to $4 billion in 2015. Concurrently, the local portion of that total will increase from $404 million to $2.8 billion. Consequently, the advisory firm projects, locally targeted mobile ads will then make up 51% of overall US mobile ad spending, growing to 70% by 2015.

“Exploding mobile usage, clearer ROI and a shorter purchase funnel will accelerate this demand within display, search and SMS advertising formats,” the report reads. In 2010, overall U.S. mobile advertising was at $790 million. Local mobile advertising’s piece of the pie is $404 million — 51% of the whole mobile advertising market.

The gain is expected when large brand advertisers adapt their marketing goals for the mobile device. That’s thanks to a growing awareness of retail locations, driven by consumers’ increasing smartphone ownership. Once large advertisers move in, BIA/Kelsey says small and medium-sized businesses will also push marketing efforts on mobile. All advertisers will benefit from the clearer return on investment and shorter purchasing funnel.

Mobile advertising sellers will also garner premium pricing on location-targeted ads. Michael Boland, senior analyst and program director of BIA/Kelsey Mobile Local Media practice, stated: “These premiums result from higher performance for locally targeted mobile ads when compared with non-local ads, due to higher relevance, immediacy and consumer buying intent, all of which are more prevalent in mobile than many other print and digital media.”

Bottom Line: Further targeting coupled with LBS and Geo-Fencing advancements will drive an increase in local advertising. Advertisers quickly need to focus on capturing intent to deliver greater ROI on each placement. Mobile is very focused and directive and therefore conversion cannot be ignored.

Let QWASI develop a conversion strategy off your mobile display, in-app advertisements, SMS ads and other placements. For more information on mobile marketing or other QWASI services, contact us today @ 877-747-9274.

June 25, 2011 in Blog   |   No Comments

Over 90% of Americans want or already own a Tablet. How about you?

According to a new reports conducted by Kelton Research on behalf of Samsung, 90% of U.S. consumers either already own a tablet or would consider purchasing one.

THE FINDINGS
Out of 1,000 people surveyed:
76% use the devices to read books or news or books
64% watch TV shows and/or movies
61% listen to music
56% update their social network profiles

Additionally, it is worth noting that 53% said they would rather play games on a tablet than a PC or dedicated game console and 41% shared they were interested in video chat.

The national survey, commissioned by Samsung Mobile, was conducted by Kelton Research and included 1,000 Americans ages 18 and older. Samsung had the survey conducted as part of an upcoming launch for their Galaxy Tab 10.1 device powered by Google’s Android 3.1 Honeycomb OS.

THE iCLOUD
Just this week, Steve Jobs also introduced the world to the new iOS5 which promises greater notifications, messaging options and hooks into their new iCloud service. Apple will launch the new iOS in the coming months across all their latest devices including iPad, iPod and iPhone.

According to John Gruber, a veteran Apple Commentator, the new “iCloud will shape the next 10 years the way the iTunes-on-your-Mac/PC digital hub shaped the last 10,” he wrote. “This is a fundamentally different vision for the coming decade than Google’s. In both cases, your data is in the cloud, and you can access it from anywhere with a network connection. But Google’s vision is about software you run in a web browser. Apple’s is about native apps you run on devices. Apple is as committed to native apps – on the desktop, tablet, and handheld – as it has ever been.”

It will be interesting to see how Google responds with future versions of Android or if it will leave it up to developers to share their open-source direction for their platform.

Bottom Line: Apple continues to dominate the Tablet space making it even easier for these users to be connected to the other facets of their life (and Apple devices). The average American wants a tablet and the ease of access it provides to information and content. Brands need to be mindful of these trends and be sure to include them in their marketing mix and mobile strategy.

June 8, 2011 in Blog   |   No Comments