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THE
mobile industry is taking too long to introduce news solutions
to the marketplace and risk them being obsolete when the finally
sees light of day according to new research by Valista, a
provider of digital commerce software and managed services.
Over 86% of the industry insiders interviewed by Valista at
the Building Blocks 2008 conference believe that it should
take less than a month to launch new mobile content and services
with an operator. This expectation is far from reality, as
80% of respondents stated that it actually takes three to
nine months to introduce new mobile content and services.
This is far too long, warned Fran Heeran, CTO of Valista,
"It's clear that the mobile industry is looking for more
streamlined ways to on-board and manage content and services.
It can typically take months to introduce new mobile content
and services across all the carriers. This clearly needs to
change as content and services lose relevancy with each passing
month and some content is never considered because of the
production time. Mobile service and content providers need
to be able to react to the market quickly and provision new
mobile content and services in a more dynamic fashion."
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INDUSTRY
COMMENT |
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Ad
funded mobile service delivery:
A guide for realists... |
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providers should give careful consideration to
ensuring that they deliver the best possible experience
to the widest possible audience in order to attract
and retain the necessary volume of users, writes
Jeremy Copp, CEO Rapid Mobile Media.
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Delivering
applications or content to mobile phones is vastly different
to delivery to PCs connected to the web: there are a
huge variety of different device capabilities
not only screen size and interaction models, but execution
environments, firmware differences and content format
support. It is not uncommon to have to support well
over 4,000 device variants. To reach the widest possible
audience the service must automatically deliver an experience
that matches device capabilities, and most importantly
must not fail to deliver any service at all. There needs
to be a mechanism to deliver a service in an appropriate
format for less capable phones, rather than following
a lowest common denominator approach and
scaling up the experience for higher-spec devices.
Optimising
the user experience is also dependent upon automatically
accounting for device differences. There is an opportunity
to maximise user engagement and stickiness
- the tendency to return to a service at every stage;
from the initial point of contact where users should
not have to identify or configure their phone (many
wont know the model or how to anyway) right through
to the experience of the service itself. The interaction
model should be familiar to the user and match the user
interface of the device (for example, a dedicated back
key should do just that; an application shouldnt
require a different keystroke or action to achieve the
same effect).
Issues
of responsibility
Achieving the widest device reach and optimising the
user experience should not have to be the responsibility
of the service provider: their focus should be on the
content and/or service delivery rather than having to
constantly repurpose, port and test for every possible
phone type. Nor is it the responsibility of the handset
manufacturers they will always want to differentiate
their products through alternative functionalities and
capabilities rather than homogenise with their competitors;
the emergence of new platforms in the market does not
improve this situation either, only increasing the diversity
from a service provision perspective. Rather it is the
content, application or advertising delivery platforms
that should manage the automatic deployment, allowing
the service provider to develop (and manage) only one
version of the content or application.
Advertising
is increasingly offering a viable mechanism to subsidise
or wholly monetise mobile services and applications,
but the delivery of high quality display advertising
is subject to the same issues of device diversity as
the content and applications; from the brand and advertisers
perspective they want to be able to reach as many people
as possible at the highest quality, without having to
manage the complexities of the diverse range of mobile
devices. An advertising delivery platform should therefore
offer the ability to serve up adverts in a variety of
mobile media (messaging, mobile internet sites and in-application)
automatically accounting for differences in the phones
whilst optimising delivery. Furthermore, ad creative
teams shouldnt be expected to have to repurpose
the advert content to match the multitude of display
and interaction options that have to be accommodated.
Monetisation
mechanism
The monetisation mechanism for a service also needs
careful consideration in order to ensure that a sufficient
volume of users is attracted. There is growing consumer
acceptance of relevant, targeted and unobtrusive advertising
within mobile services which can be potentially coupled
with subscription or pay-to-play models. Advertising
also offers an option for lowering the barrier to entry
for the end user by ad funding trial or introductory
versions of the service, thus accelerating growth of
user numbers. Consumers appear to be willing to pay
for services that provide entertainment, offer opportunities
for a return (usually some kind of winning in return
for a stake) or provide personalisation of their devices;
more straightforward utility services are a harder sell
and other revenue generation methods may need to be
deployed, such as advertising.
As
the mobile market evolves so consumer appetite and acceptance
of mobile services grows. The technical and business
environments have also evolved to support this but at
the cost of ever increasing device diversity
a situation that is only likely to get worse over time.
Ever richer content and media types will be delivered
as part of these services, compounding the problems
of delivery to the widest audience at the optimal quality.
To take advantage of the mobile phone as the ubiquitous
content consumption device of the future, service providers
need to consider:
How they will reach a sufficient number of users and
not artificially limit their addressable market through
device type.
Mechanisms for monetising the service without alienating
their user base.
The
option of delivering advertising within the service,
but in such a way that it maximises value for both the
advertiser and consumer by being presented at as high
a quality as possible and by being perceived as relevant
by the end user through intelligent targeting.
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MARKET
LEADING ANALYSIS |
C2M |
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