Research: Smartphone sales increased in Q1 2013

 

Summary: Sales of smartphones surged during the first quarter of 2013.

Smartphone shipments worldwide soared during the first quarter of the year, new research has revealed.

According to new figures released by Gartner, sales of the devices hit around 210 million units during the three-month period, a rise of 42.9 per cent since the same time in 2012.

In addition, the handsets accounted for 49.3 per cent of overall mobile phone sales across the globe, up 34.8 per cent from the first quarter of last year and 44 per cent from the fourth quarter of 2012.

While smartphones were once viewed as a luxury item, over time they have evolved into a commodity and more consumers than ever are able to afford a mobile with flashy features and larger screens.

What’s more, this explosion in sales means mobile marketers may need to work harder than ever to roll out effective campaigns tailored to the channel.

The research also discovered sales of feature phones dropped by 21.8 per cent in the first quarter of 2013 and Anshul Gupta, principal research analyst at Gartner, said users of these mobiles across the world are either content with their existing phones or waiting for smartphone prices to be reduced further.

“Either way, the prospect of longer replacement cycles is certainly not good news for both vendors and carriers looking to move users forward,” he added.

Meanwhile, Samsung has maintained its position as top dog of the mobile phone industry and the manufacturer’s sales were found to have grown by 13 per cent in quarter one. Its share of smartphones hit 30.8 per cent, up 3.2 per cent from the first quarter of last year.

Mr Gupta stated the Korean firm’s main market rival Apple is set to become increasingly dependent on the replacement market and face challenges in the upcoming two quarters, given that it isn’t expected to release any new products until the third quarter of the year.

newsDynmark is the power behind global cloud mobile messaging and mobile marketing. We help organisations from SME through to global enterprise, to leverage the power of messaging as a business communication tool, for marketing or operational uses. Read more about Dynmark here.

Reach target audiences with location-based mobile ads

 

Summary: Mobile advertisements based on the specific locations of consumers could help companies grow their returns on investment.

Location-based mobile advertisements could be a great way of helping businesses to boost their returns on investment (ROI).

According to the latest Mobile Locations Insight report from mobile ad specialist xAd, which focuses on mobile trends in the first quarter of this year, there is a steady shift among agencies in the US towards geo-precise targeting.

This form of advertising – which interacts with users based on their exact whereabouts – accounted for 58 per cent of all national brand campaigns studied throughout the three-month period, compared to just 27 per cent during the same time last year.

It was also found to have continuously provided companies with increased ROI than standard geo-targeting, which is more common among traditional marketing methods.

This is likely to be because older marketing channels like print and email are becoming less relevant to the daily lifecycle of consumers all over the world, while mobile continues to surge in popularity.

Currently, one of xAd’s customers Pinkberry is using geo-precise mobile ad targeting to boost traffic to its stores and drive forward uptake of its latest promotional offer concerning a new Greek yoghurt.

The company is taking advantage of technology that relies on accurate location signals – combined with real-time mobile search behaviours – to send relevant and timely messages to mobile users within a one-mile radius of its shops. Amazingly, after just two weeks of adopting this method of marketing, Pinkberry has noticed its mobile ad performance has doubled.

Dave Martin, senior vice-president of media at Pinkberry partner Ignited, explained it was critical for the company to reach new and existing customers within “shouting distance” of all stores.

He added the latest investment has made its hyperlocal strategy “come to life” with a solution that included “dynamic, creative and even a custom landing page to assist with offer redemption”.

Dipanshu Sharma, chief executive officer at xAd, said the rapid adoption of geo-precise targeting technology comes as no surprise, given that it enables brands to capture their target group of consumers when they are at their most influential.

He added national advertisers are becoming better acquainted with the power of mobile location and its ability to not just reach specific audiences based on their past location behaviours, “but its unique ability to reach users at the specific moment they are most likely to view and engage with an ad message”.

Other findings in the report included that the top three industries capitalising on mobile location at present are telecommunications, restaurants and financial services and insurance. These were followed by health and beauty, travel, retail and education.

The research follows a recent study that was carried out by BIA/Kelsey, a leading advisor for the media industry, which predicted that mobile ad revenues will soar to $9.1 billion (£6 billion) in 2017, up from $1.2 billion in 2012.

It also stated mobile ad spending in the US will grow from $3.2 billion in 2012 to $16.8 billion in four years’ time, meaning that location-based ads could represent more than half (54 per cent) of spend in 2017.

Dynmark is the power behind global cloud mobile messaging and mobile marketing. We help organisations from SME through to global enterprise, to leverage the power of messaging as a business communication tool, for marketing or operational uses. Read more about Dynmark here.

Mobile marketing strategies ‘must be long-term’

 

Summary: A mobile marketing campaign should not be short-term.

Retailers must think long-term when it comes to investing in their mobile strategy, one expert has claimed.

Shaun Dobbin, chief executive of Australian mobile service provider Gomeeki, said in an article for Marketing Mag that companies shouldn’t try and cut costs by relying on traditional marketing methods.

He explained that too often, firms regret their decision to ignore more advanced channels – such as mobile – and failure to develop a higher quality digital infrastructure could have a disastrous impact on their revenue.

According to the expert, it’s time for businesses to view mobile as a core marketing platform and not a one-off, short-term campaign that delivers fast results when they’re needed.

“Mobile can be a slow burn and it must be considered a long-term investment – one that will be critical for business success in the upcoming years,” he stated.

Indeed, it is a great way of reaching target audiences while they’re out and about and launching promotions tailored towards their interests and demands.

However, a recent survey from Adobe revealed too few organisations are recognising these benefits, as less than half (45 per cent) of companies questioned from North America, Asia and Europe have established a mobile presence.

Mr Dobbin gave eBay as an example and noted how the online vendor boasts an extremely successful mobile space, due to the fact it invested in the channel early. It prepared for the rising number of people to own smartphones around the world and adapted its businesses to accommodate this shift.

While not all retailers will have lots of room in their budget to splash out on this branch of marketing, awareness of mobile is essential and it must be taken into account that most people would rather leave their wallet at home than their handset.

Mr Dobbin concluded: “Consumer behaviour is changing so quickly that what has worked today, or last week, may not have the same effect tomorrow and businesses need to keep up with these behaviours or risk being left behind.”

newsDynmark is the power behind global cloud mobile messaging and mobile marketing. We help organisations from SME through to global enterprise, to leverage the power of messaging as a business communication tool, for marketing or operational uses. Read more about Dynmark here.

Mcommerce abandonment linked to poor user experience

 

Summary: A poor mcommerce experience often causes consumers to abandon their mobile shopping carts.

Mobile user experience is the greatest barrier to consumers completing purchases made on their handsets.

This is according to new findings released by Jumio Inc, which revealed that while most smartphone and tablet owners (68 per cent) have attempted to buy goods on their devices, 66 per cent of this group have failed to see a transaction through to the end.

It was discovered the main reasons for mobile users holding back were feeling uncomfortable entering credit card information and the checkout process, which they said was too difficult on their device.

Daniel Mattes, founder and chief executive of Jumio, said although companies invest a great deal in encouraging consumers to reach the point of sale on their apps, there are many obstacles that keep people from committing to a purchase.

He added: “From frustrations around having to type – and often retype – personal information into tiny text boxes to concerns over the safety of data, users are bailing at checkout. Brands can’t afford to lose shoppers in those final moments of the transaction.”

The research found men are more likely to pay for products from their handsets than women, with 74 per cent of males with smartphones or tablets saying that have attempted to make a mobile purchase compared to 62 per cent of women.

Meanwhile, the majority (62 per cent) of consumers over the age of 55 said they had security concerns about handing their credit card data over to vendors, compared to 59 per cent of people aged 45 to 54 and 45 per cent of 18 to 34-year-olds.

The figures suggest businesses need to do more to convince the older generation of the security of paying through their dedicated platforms, as otherwise they may not see their returns on investment grow.

Indeed, mcommerce is becoming increasingly integral to the retail industry and recent research from eBay claimed it has risen in demand by 55 per cent from a year ago.

Mr Mattes concluded that unless retailers provide faster checkout options and address any security doubts, they will continue to see a large proportion of their customers abandon their mobile shopping carts before checkout.

newsDynmark is the power behind global cloud mobile messaging and mobile marketing. We help organisations from SME through to global enterprise, to leverage the power of messaging as a business communication tool, for marketing or operational uses. Read more about Dynmark here.

Mobile ‘outstripping’ other marketing channels

 

Summary: Businesses need to make the most of mobile marketing, one expert has stated.

Traditional methods of marketing are beginning to disappear thanks to the rise of the mobile channel, according to one expert.

Digital marketing specialist Anton Koekemoer has claimed companies that make the most of the platform will outperform those solely running a campaign for desktop users and said the latter are missing out on a huge chunk of business.

He added there are a number of different ways in which organisations can optimise their mobile marketing strategy to make it as successful as possible, including the issue of visibility in his list of recommendations.

Indeed, by creating profiles on websites like Google+, Foursquare and other community resources, a brand’s target audience will find it easier to look them up from their smartphones.

When they reach this stage, it is also important that consumers are able to access a mobile website without having any technical problems. This means firms should optimise their sites and make them more responsive, which could be done by including mobile-friendly graphics and simple navigation tools.

“Even though your website might look good on a tablet or [large-screened] smartphone, mobile devices have smaller screens and it’s much harder to find something if it’s not clearly visible,” Mr Koekemoer explained.

However, a recent survey carried out by Adobe has found that too few companies around the world are following these rules, as only 27 per cent of bodies questioned said they have a mobile-optimised website and just seven per cent boast their own mobile application.

Mr Koekemoer suggested SMS marketing should be another important consideration, as this method of communication allows companies to attract the attention of their target demographic faster and more accurately.

Individuals are starting to use their handsets for even the most basic everyday activities – such as buying groceries – and this is something marketers must take into account.

The expert remarked: “Mobile marketing is a way you can move information about your business directly into the hands of your customers when they are using the mobile web.”

newsDynmark is the power behind global cloud mobile messaging and mobile marketing. We help organisations from SME through to global enterprise, to leverage the power of messaging as a business communication tool, for marketing or operational uses. Read more about Dynmark here.