Web is going mobile

(global smart phones sales increased from 297 m (2010) to 472 m (2012) plus mobile cloud & apps increasing in use in early 2012; cars & domestic appliances now share a common internet-based computing platform)

"...Mobile adoption eclipsed desktop usage by a factor of three, that smart phones are in the hands of 1 billion users who are spending 20% of their waking time interacting with them, and that perhaps apps are by far the most powerful way to interact with those smart phones......how quickly a touchscreen interface, a powerful operating system, integrated sensors and an ubiquitous mobile Internet connection changed our lives..."

George Berkowski, 2014

. Paying by mobile devices. The aim is to have more transactions through payment networks as people tend to spend more when they pay with methods other than physical cash.
. New phones have "near field communication" technology that works on contactless terminals built into the device. Some examples
- credit card companies like Visa, MasterCard and Amex are working with local banks to upgrade their systems, ie "tokenisation" of card numbers which makes electronic payments more secure by using secondary numbers generated from the digits on an individual's actual card. These tokens are tied to domains or devices rather than the original credit card number
- both Apple and Samsung use fingerprint swipes in conjunction with tokenisation. This ties an automatically-generated version of credit card numbers to a domain or device. It allows the biometric identifier to replace a pin or password, and makes credit card details more secure because they can't be used from another device.
- more and more items like cars, refrigerators, health monitoring, etc are being linked to the Internet by mobiles
. Other identification techniques (biometrics) include voice print, iris or eye blood vessel pattern, facial recognition, measurement of a person's gait, heart rhythms etc. Biometrics will improve accuracy of authentication and be easier to use

organisational development change management

In 2008 Apps started with smart phones, eg iPhone (Apple); 21b. mobile app available (Dec. 2014); with people adopting mobile computing 3X faster than desktop; using mobile app 6X more than websites.

Another example of the importance of going mobile-centre is Nintendo (Japanese electronic game creator). Until 2015, Nintendo had resisted the move to develop its games for mobile devices as it felt that this would undermine hardware sales. But this approach was failing as in the 9 months to December 2014 their hardware sales declined 1/5th. Thus in 2015, Nintendo has developed a new mobile-centric strategy.
- mobile gaming revenue to 2015 from games played on tablets or smart phones was expected to exceed US$ 30 b.(an increase of 20%) while console revenues are likely to be around $US 26 b.
- Mobile online venders, like Google and Apple, take a large commission, ie as much as 30%
- other producers of mobile hits such as Finnlands Rovio (Angry Birds) and US King (Candy Crush) have struggled to maintain momentum, ie after increasing revenues by 23 times between 2010 and 2012, Rovio's earnings in 2013 fell by 50%. They are hoping a feature length "Angry Birds" film will revitalise them in 2016
- Electronic Arts (Fifa & Madden NFL) is a role model for Nintendo as they went gone mobile in 2014 with the results of its December quarter's digital revenue rising by 1/3 to US$ 540m. (The Lex Column, 2015a)

Despite the large numbers using social media, the chances that your fans or followers will see your posts are very small, ie

- Facebook posts of top brands reach only 2% of their fans (similar rates for Twitter)
- Engagement - percentage of fans who like, comment and share are
i) Facebook (0.073%)
ii) Twitter (0.035%)
iii) Instagram (4.21%)
Stackla have developed a way to harvest social media chatter and turn it into something useful, ie their software scours social media sites, collecting all the information, like twits and posts, and delivers results to be used as marketing on client's web pages, etc

People wanted computers to be mobile, ie

"...China ended 2014 with 618 million Internet users, of which 500 million were mobile Internet users. 81% of Chinese are now accessing the Internet via mobile. Mobile Internet browsing as a percentage of total Internet browsing has reached 23% by January 2014 - this is an 83% increase in just one year. If the above trend continues, then mobile is going to represent the majority of all personal computing platforms by 2016. In 2015, the number of smart phone users is expected to hit 2 billion. The lower cost of mobile devices combined with the growth of mobile broadband networks will actually see the next billion people who come online bypass desktop computing entirely and go straight to mobiles..."

George Berkowski, 2014

"...A typical smart phone user looks at their phone around 150 times per day…… In 2013, the average consumer spent an average of two hours and 38 min per day on their smart phone and tablet. That accounts for a whopping 17% of their waking time - that's almost one fifth of the time we spend with their eyes open…… Thoseconsumers spend 80% of that time……using apps and only 20% on mobileWeb. Apps offer the better mobile experience - and a result holds four times more of our daily attention than the mobile web…… Almost 60% of our time on games, Facebook or entertainment-related apps..."

George Berkowski, 2014

. Facebook's app and Apple’s Safari dominate mobile web browsing

. Apple and Google are the middlemen (taking up to 30% of revenue); they dominate with about 90% of 102 b. apps that were downloaded in 2013.Extra income sources are

i) the transactions income from apps when you enter your credit card information directly

ii) in-app purchases, ie extension of pay-before-you-download model; it makes downloading the app free (plus encourages more people to do it) and gives the app developer the opportunity to sell other services or products with the app. For example, “Clash of Clans” game makes 100% of its revenue via in-app payments, ie US $890 m. In 2013, similarly, e-commerce via mobile apps generates an estimated US $ 43.2 b. in mobilesales (2013); up from US $ 21 b. (2013).

“…This means that mobile represented around 13% of the US$ 260 billion total retail sales in 2013. Amazon doubled its mobile sales in 2013 to $ 8billion…”

George Berkowski, 2014

iii) advertising via app magazine

. The app stores were very popular with developers as they could

. buildup massive audiences

. made it easier for users to make purchases with credit card details, ie a single click

. the app store owner manages everything to do with the accounts, payments and any hassles, such as fraud & chargebacks

Some mobiles stats 

. Number of mobile phones exceeding the world's population of 7.1 b. (2015);with 70% of the world's have mobile phones
. 91% of Americans have their mobile devices within reach 24/7
. Americans spend around 40% of their time on social media with Facebook and Pinerest accounting for 50+% of social media-generated commerce
. 78% of Americans Facebook users access Facebook from mobile phones
in 2012, global mobile ad spending was $US 8.7 b; this is projected to increase to $US 33b. +, ie 6% of all advertising spending and 25% of all internet advertising in the next couple of years.
. 74% of US consumers rely on social networks to guide their purchases; Twitter users make 50%+ of their social media purchases from mobiles
(source: George Berkowski, 2014)

iii) Australian numbers

- around 11 m on Facebook

- around 1.9 m are Twitter users

- 51% penetration of total population with mobile device with 37% of Australians start a sale on a mobile device, eg

" ...you see the ad on the television, you search it on the mobile device, you like the look of the page, you e-mail it to yourself, follow it up on your desktop and complete the transaction..."

Diane Costa as quoted by Anne Fulwood, 2013

- 60%+ are Internet users

- 13 million Australians are connected to the Internet for 18 hours a day, with 3.6 of these hours spent on social media
- by 2020, 12+% of Australian workers are expected to be working from home

The use of social media needs to be combined with the use of traditional media, ie TV, print, radio, etc.


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