Steve Madden’s Plan to Enter the Mobile World

Optimistic predictions about mobile advertising are not new at all. You can find a whole bunch of experts claiming that the mobile phone will become the most sought-after advertising platform in the future. However, when something that validates these claims happens, it surely is exciting.

Steve Madden, a San Francisco based retail shoe brand, has been bitten by the mobile bug and is considering shifting its focus on mobile phone advertising. Jared Horowitz, who is in charge of the business development section of Steve Madden, has stated that it has become an integral part of their digital business.

As of now, only 0.5% of Steve Madden’s revenue is generated by mobile users. The company, however, is hopeful that the revenue will increase significantly in the coming years if they develop a mobile optimized site and drive traffic to it by running innovative mobile advertising campaigns. So, to prepare themselves for the mobile juggernaut, they have come up with a long list of plans. They include

• Developing a mobile optimized WAP site which is easy to navigate.

• Adding lots of interactive features to the site like click-to-call functionality (to help people get in touch with sales persons directly) and mobile social networking functionality (to help people share their favorite stuff with their friends via email, Twitter, or Facebook).

• Adding a Store Locator feature to help people find the nearest Steve Madden store.

• Developing an application for the iPhone and iPod Touch to make it easier for iPhone users to reach the site.

• Setting up multiple revenue streams with mobile web display ads, mobile search ads, and in-app display ads.

• Introducing SMS offers and mobile coupons to engage potential customers.

• Devising innovative mobile marketing strategies to target potential customers.

According to the numbers revealed by the company, the non-optimized site of Steve Madden got more than 55,000 visitors via mobile devices in the month of February. There were more than 300,000 page views and 450 purchases. If they go ahead with the plan and implement the ideas they have come up with, they will be able to get a lot more visitors in a short span of time. More traffic, needless to add, will result in more revenue, which is always good news for any company. It should be interesting to see where Steve Madden goes from here.

Categories: Cell Phone Advertising.

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Mobile Application Downloads to Reach Five Billion by 2014

New York based research firm ABI Research says that the number of mobile applications downloaded by mobile phone users is expected to reach five billion by 2014. It says that the surge in smart phone sales and the increase in the number of mobile app stores are the reasons why there has been a sharp increase in the number of apps downloaded in the last few years.

The iPhone, according to ABI Research, is still the major player in the mobile app market. However, its market share is expected to reduce considerably over the next few years due to the rise of Google Android. Android currently has an 11% market share. Due to its increasing popularity and Apple’s shrinking market share, Android’s market share is expected to increase from 11% to 23% by 2014.

The reason behind Android’s growth in the mobile application market is not hard to fathom. As of now, 14 phones run the Android OS and the number is expected to increase sharply this year due to the introduction of new Android based phones. Also, the response for free mobile apps from Google, Google Maps being a fine example, has been great so far. Since Google is expected to come up with more such free apps and ad-funded apps, it is safe to assume that the number of mobile apps downloaded by consumers will increase in the coming years.

ABI Research has also made another observation. It says that even though the number of mobile apps downloaded by consumers is expected to rise sharply, it may not reflect positively on the revenue chart. It says that the proliferation of free ad-funded apps might make people reluctant to buy paid mobile apps. It is quite a bold prediction given the fact that the idea of ad-funded apps is still in its nascent stage.

What I believe is that there is enough space for both ad-funded apps and paid apps. While the demand for free ad-funded apps is likely to increase significantly, the demand for paid apps, particularly business centric mobile apps, will not disappear completely, as there are quite a few people who do not like the idea of a mobile app loaded with ads. So, I predict a mobile ecosystem where ad-funded apps and paid apps can coexist without any problems. What do you think? I am interested in hearing different opinions.

Categories: Cell Phone Advertising, All things mobile phones.

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Greystripe Inc To Go AdMob’s Way?

It seems Greystripe Inc., a San Francisco based mobile advertising company, might go the AdMob way. Its founder Michael Chang said in a recent interview that he has been talking to a lot of what he calls ‘potential suitors’.

Started in 2004, Greystripe has been going strong for the past six years and is one of the leading rich media mobile advertising networks in the world today. It specializes in delivering full screen ads on the iPhone, Java, and Android platforms. It also serves flash ads on the iPhone using a unique transcoding technology. The company has raised nearly $18 million in venture funding and is expecting its sales to triple this year. Michael expects the company to be profitable next year.

Ever since Google bought AdMob, a lot of eyes have turned towards Greystripe, which is a competitor to AdMob. Michael Chang says that in the last two months, he has met a lot of people who have expressed their interest in buying the company. He says that a lot of people were actually interested in Greystripe even before Google’s acquisition of AdMob.

Going by what Michael Chang says, it is safe to assume that Google’s acquisition of AdMob, albeit inadvertently, has made a lot of people focus their attention on companies like Greystripe. By acquiring AdMob, Google has become the top player on the market with 30 to 40 percent market share. So, companies like Yahoo and Microsoft might try to acquire small and medium sized mobile advertising companies to consolidate their market share. Microsoft, in particular, is in dire need of a revival and I will not be surprised if they make the first move. It should be interesting to see how things unfold in the coming months.

Categories: Cell Phone Advertising.

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Huge Slump in Smartphone Market Share - Can Microsoft Reinvent Itself?

When you take a close look at the smartphone market, you will notice something strange. Experts often talk about what is possibly the most popular smartphone available today – the Apple iPhone. They talk about how Google Android could give Apple a tough competition. They talk about Symbian and they talk about Blackberry. They even talk about recently released smartphones like Motorola Cliq and Droid. One name that is conspicuously missing from this list is Microsoft’s Windows Mobile.

It is really surprising. After all, Microsoft entered the smartphone market long back – Pocket PC 2002, the predecessor of Windows Mobile OS, was released in 2002. Soon, Windows Mobile was released in 2003. What has Microsoft managed to achieve in the past six years? The answer is – nothing worthwhile.

Windows Mobile, as of now, is the fourth most used mobile operating system in the world. Nokia with its Symbian OS is the market leader – followed by Blackberry and the iPhone. Experts, however, predict that it might not be able to stay at that spot for long. When you take a good look at the numbers, you get the feeling that what they predict might actually come true.

In the first quarter of 2004, Microsoft’s Windows Mobile had an envious 23% share in the smartphone market. In the first quarter of 2005, there was a steady decline and its market share was somewhere around 18%. In the first quarter of 2006, it further slumped and remained with a market share of 12%. In 2008, its market share dropped to 14%. At the start of 2009, it slumped further and remained at 7.9%. If we go by the recent report from AdMob, Microsoft’s market share, as of now, is only somewhere around 4%.

It is quite a slide – from 23% market share to 4% market share in a span of just five years. In the mean time, Apple, Nokia, RIM, and even Google have made their presence felt in the market big time.

It is really hard to believe. After all, Microsoft has got everything - all the money in the world, some of the brightest minds in the world, and plenty of goodwill. Yet, it has not been able to conquer the mobile market like it conquered the PC market. While late entrants like Apple and Google have been able to generate a big buzz, Microsoft has not been able to do anything that is worth taking notice.

Apple iPhone continues to climb the ladder and even new entrants like Motorola Droid have managed to create a big buzz. With this being the case, Microsoft’s only bet is Windows Mobile 7 OS – which incorporates the elements of Windows Mobile 6.5 and Zune – which is slated for release in 2010.

The mobile phone industry, the smartphone market in particular, is expected to grow bigger by the day. Mobile advertising, as we all know, is set to grow big as well. The time is ripe and the competition is intense. The question is – can Microsoft pull it off?

Categories: All things mobile phones, Microsoft.

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The Need for Mobile Websites - Will Big Brands Wake Up?

Here’s a news item that surprised me to say the least. Interbrand recently released its list of the top 100 brands for 2009 and nearly 1/3rd of the brands in that list do not have their own mobile website.

If your reaction to this news is ‘dude, what’s the big deal?’ – let me tell you something. According to statistics, the number of people who use smart phones (read iPhone, Blackberry, Android, etc) keeps increasing every year. In North America alone, nearly 26% of mobile users use the mobile web facility on their phone regularly. In other words, they use their mobile phone to browse the web. With more and more people buying internet enabled high end phones, it is only logical to assume that this percentage will grow significantly in the near future. So, you’d assume that big brands would have woken up to reality long time back and created their own mobile websites, right? Well; it turns out it is not the case.

Remember – I am not talking about small, lesser known brands here. Big, famous brands like Coca Cola and GE do not have a mobile website. To say that this is surprising is a huge understatement.

I have talked about the importance of big brands having a good mobile presence and how important it is to have a decent mobile website. I firmly believe that a well designed, easy to access mobile website is of paramount importance for any brand, leave alone huge brands like Coca Cola and GE.

Some could argue that iPhone and certain other mobile phones offer a full browser experience and so there is no need for a mobile website. Guess what? Not everyone in the U.S. uses an iPhone. There are other phones whose mobile browsers are not nearly as good as the iPhone mobile browser. What about the people who use these phones? What are they supposed to do?

Contrary to what most people think, browsing the web using a mobile phone is not easy. The screen is small, the keypad is small, and it is certainly not as easy as browsing the web on your PC or laptop. This is why you need to have a customized mobile website which loads quickly and easy to navigate. It is not hard to do. Facebook has a very good mobile site, Toyota has one, MySpace has one, Microsoft has one, and a number of other famous brands have one too. So, the only explanation is that some brands have not yet realized the potential of mobile internet and are reluctant to reach out to their users through their most personal device – the mobile phone.

I hope it does not stay this way. The future is mobile and let us hope – for the sake of all mobile users in the world – these brands realize this sooner than later.

Categories: All things mobile phones, Mobile Web.

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