Google released Q1 earnings yesterday, beating expectations but posting its first quarterly decline in revenues. There was a fair amount of discussion on the call about mobile, which was identified as one of three growth areas for the company. The other two were apps (enterprise) and display advertising.
Mobile continues to be a major area of strategic focus for the company and it appears there will be many more devices running Android (or announced) by this time next year. The following are comments from the earnings call transcript relevant to mobile.
CEO Eric Schmidt
Look at the success of Android and the mobile space in general. By improving the mobile web experience people search many, many times more than they did in previous mobile devices. We benefit both in terms of end-user happiness as well as ultimately in strong revenue growth from that area.
SVP Jonathan Rosenberg
Patrick highlighted in his remarks that Google has rigorous management of expenses, but we also have a history of making big investments based on technical insights and we are going to continue to do that today, especially in areas like display, mobile, and Android . . .
On the mobile side, more people are accessing the web from their phones. The number of mobile searches has gone up five times in just the last couple of years and this new generation of phones has eyes, a camera; ears, a microphone; skin; a touch screen; and they know their location. This makes them a great platform for very compelling applications.
We launched Google Latitude which you can use to share your location with friends with a fun Google news cluster just this morning on Latitude helping catch a thief in San Francisco. If you go to Google news and type in Latitude thief.
We are also investing in Android to make a great mobile web experience available to everyone and over 8% of mobile browsing is now conducted through Android, which is second only to the iPhone.
Spencer Wang - Credit Suisse
On mobile, can you give us a sense of what the click view rates look like on mobile relative to traditional search?
I don’t have specific data on click through rate. We are certainly seeing more advertisers are choosing to run their ads on mobile devices. You can see examples if you query auto insurance on the iPhone or an Android device. And the RPMs on the iPhone and Android are high, even though we’re in very early days of the mobile ecosystem, but I don’t have any specific data on how click through rates differ.
Sandeep Aggarwal - Collins Stewart
[W]hat kind of traction you are seeing for Android on mobile and what do you think about the potential of Android on the netbook?
Overall it looks like Android is going to have a very, very strong year. We are already aware of many, many uses of Android, which as you know is open source, where literally the devices we hear about near the announcements, so the open source part of the strategy is working. We have also recently just announced an upgrade in new software for Android which is out now among the technical community and again, the stability, the proof points are really there now.
There are announcements happening between now and the end of the year that are quite significant from operators and new hardware partners in the Android space, which I won’t preannounce except to say that they really do fulfill much of the vision that we laid out more than a year ago.
On the netbook side, there are a number of people who have actually taken Android and ported it over to netbook or netbook-similar devices. So we think that’s another one of the great benefits of the open source model that we’ve used. We’re excited that that investment is occurring. And again, largely outside of Google, which we think is great.
Idearc's Superpages directory becomes the final directory publisher among the majors in North America to release an iPhone app. And like Dex, which understood that the use cases for mobile are not the same as in print or IYP and designed its app accordingly, so too Idearc has done some novel and clever things with its iPhone offering.
(For its part, AT&T has also done interesting thing with YPMobile, such as events integration and in launching non-branded apps such as Have2P, Have2Eat in the iTunes Apps Store.)
The Superpages app is at once broader and more specific than its online yellow pages sibling. It's focused on restaurants and entertainment categories (including shopping) but also offers nice features such as weather, WiFi and ATM locators, as well travel-realted information (i.e., airlines, hotels, taxis, etc.). There's also a high degree of personalization available on the app. Beyond favorites, it allows users to reorder top categories presented on its home screen.
There's a slider across the top of the home screen (see screens below) that changes the view and type of content presented, moving from listings to a map view. Speaking of which, Superpages has done a nice job integrating Microsoft's Virtual Earth. The maps look great -- it's probably the first appearance of Virtual Earth on the iPhone -- and one can get multi-point routing and directions as well.
There's Open Table integration for restaurant reservations. And one can also watch movie trailers through the app. In one of the movie-related screens you're able to page through movies posters using cover flow and then go to an information page by tapping the image.
Finally, there's a novel reviews feature that allows users to turn a thumb to indicate the intended star rating (image above). One can also upload images from the phone. Presumably all this user-generated content will make its way onto the IYP site. Superpages earlier created a Facebook app for the same reason.
I was interested to see whether the shopping content would leverage Idearc's relationship with Krillion for local product inventory data. Currently it does not but I would assume that will appear in time. It would be a winner in mobile, whereas online it's currently suboptimized in my view.
We'll have more to say in more detail in a later report.
Avantar, LLC, publisher of the iPhone "yellow pages" app put out a press release that the app had reached number 1 in the App Store's "navigation" category. The release claims two million searches per month on the app. Yellow Pages is just one of several apps that use the "yellow pages" brand or metaphor, including YPMobile (AT&T). Interestingly most of the YP apps are categorized under different headings, including "lifestyle" and "productivity." In terms of popularity by category they largely don't compete "head to head."
In Canada only Yellow Pages Group is permitted to use the "yellow pages" name, unlike in the US where anyone can use the term.
Here's the list of most popular apps in that category as of this morning:
Also popular in navigation is Say Where, voice-driven local search from Dial Directions and the Where app from uLocate.
Here's the list of the most popular apps overall from Apple.
SEMPO's 2008 survey covered the waterfront in terms of the state of search engine marketing. The professional organization surveyed 800 search marketers and agencies from all over the globle. (68% of respondents were from the US, with 20% coming from a range of countries; 7% were from Canada and 5% from the UK.)
On the issue of interest among search marketers in mobile and mobile search in particular, here's what the survey reported:
Q: How interested are you in being able to serve geographically relevant advertising to mobile search users? (Scale of 1-5, 1=lowest, 5=highest)
Source: SEMPO/Radar Research (2009)
The graphic above shows at least 57% of respondents (a subset of the entire survey sample) said they were somewhat or very interested in geotargeted search marketing in a mobile context.
In addition, 20% of survey respondents said they would pay a premium of between 10% to 50% over conventional search marketing. The majority (39%) said they wanted to pay the same amount as online for keywords/ads in mobile search results.
ADCENTRICITY is a digital out of home (OOK) technology provider and aggregator of ad inventory. There are literally more than 100K digital OOH screens at various locations around the US (supermarkets, franchise stores, gas stations, malls, retail stores, movie theaters, etc). ADCENTRICITY makes it easier for brands and advertisers of all stripes to buy these screens and get access to the audiences in these places.
With Impact Mobile as the mobile service provider, this offering will provide advertisers with hyper-targeting capabilities to increase interaction with audiences on-the-go through mobile devices and help extend campaigns across even more channels. Capabilities include:
- Call-to-Action: SMS, votes, polls, sweepstakes, contests, promotions, coupons, call-back request, text4info, surveys
- Retail & Redemption: Mobile coupons (bar codes), unique PIN numbers (drive2web), ticketing
- Content Deliver: Rich content, ringtones, wall papers, games, videos
- Mobile Applications: Mobile Internet Sites (WAP) & Smart Phone Applications (more comprehensive and customized solutions)
Consumers engaging with digital out-of-home media are on-the-go and the interaction with mobile can be used for example, to send pre-programmed, customized messages to specific geographic targets throughout the life of the campaign. A mobile component to any digital out-of-home campaign can also help to drive a call to action, increase brand awareness and point-of-purchase sales.
Digital OOH is a fascinating (and effective, according to reports) marketing platform that can be used for both branding and direct response. Combining it with mobile makes it more actionable and dynamic in a range of ways implied by the release excerpt. For example, it can motivate someone to go to a point of sale (POS) and buy immediately with an offer or discount; it can get someone to sign up for alerts; it can motivate someone to download an application and so on.
Mobile can do this type of thing in general for traditional media (i.e., newspapers, mags, TV, radio) as well. And, eventually, most traditional media will (or should) offer some sort of mobile tie-in both to extend reach and to measure effectiveness. However, digital OOH is like combining TV and mobile at or near the POS.
Yet these dynamic capabilities and the integrated marketing campaigns they imply are still quite a bit more sophisticated than the advertisers who would potentially be buying them.
Related: Here's some additional color on the announcement from MediaPost.
There's an impending branding change coming to Microsoft's Live Search. But for the time being Live Search is still the Microsoft brand online and in mobile. And Microsoft is making its Live Search client app (with voice search) available on a broader array of BlackBerry devices including the Bold and the Storm.
I haven't been able to use it for awhile given that my WinMo HTC phone's touchscreen phone broke. However I like the Live Search app and used it when I had the phone. Until the Pre comes out I'm using an iPod Touch for WiFi mobile Internet access and a very low-end feature phone on the go.
Separately, Yellowpages.com (AT&T) is the direct beneficiary of Microsoft's mobile distribution when local searches are performed:
When the iPhone and apps store first launched it was unlikely that the device and its sibling the iPod Touch would become such a hot mobile gaming platform. Consistently, however, the most downloaded apps are games, according to the "top lists" on the iTunes store and comScore, which put out some new data on the subject yesterday.
The following chart reflects comScore data on the top iPhone apps for February:
Among the few non-games here, in order of popularity, are:
Here are today's top free and paid apps, according to Apple (note Skype at #2 and Yahoo! Mobile at #10):
comScore also offered the following observations about the apps audience:
Two independent location-based mobile social networking providers BrightKite and Limbo have merged. The Brightkite brand will be the surviving one, but the company will be headquartered in Burlingame, CA (Limbo's offices). The companies also have access to the $9 funding round that Limbo recently received.
The two services combined will have several million reported users on a global basis. Both offer location based advertising and their merger is an attempt to gain more scale on the user side and to offer a stronger play for advertisers.
Mobile social networking is a segment ripe for consolidation, as the combination above suggests. It's a space that will be dominated (it already is) by established Internet brands such as Facebook and MySpace.
There will be a few independent companies that succeed but most will not. Loopt is probably the highest profile independent mobile-LBS company in the US, while Mocospace is on the pure social networking side. However the quality of ad inventory on Mocospace has been repeatedly criticized in private conversations I've had with people.
Recently Whrrl, a mobile-centric site like Yelp reinvented itself around the concept of storytelling (tied to place). As more and more people adopt the mobile Internet, the desktop brands have the advantage of a built-in user base. The audiences are thus theirs to lose. Independent, mobile-only companies must offer a user experience that is especially compelling and/or the PC-based companies moving into mobile must essentially botch the mobile user experience to create an opening for the independents.
Expect more such consolidation in the coming months. (As they used to say in the earlier days of blogging, hat tip to Perry Evans for alerting me to the merger via Twitter.)
Verizon announced that it was integrating 411 with VZ Navigator in those instances when the wireless caller is a VZ Navigator subscriber. According to the release put out by Verizon it works as follows:
After using 411 Search to find a phone number or address, Verizon Wireless said its customers with VZ Navigator-capable phones can now have a Place Message with that destination sent to their phones, simply by pressing "1" when prompted. The customer can then use VZ Navigator to display the location on a map or navigate to that location. Connecting these two services means that details for a listing found with Verizon Wireless' directory assistance can be provided to Verizon Wireless' VZ Navigator location-based service (LBS) so that customers can access audible turn-by-turn navigation to their destinations, the company noted . . .
Jon Wells, vice president for product development at Verizon, said, "We found that many customers were using the 411 service with the hopes of finding directions to that location, so we launched the integrated VZ Navigator with 411 Search nationwide to provide customers with a one-stop shop for listing information and directions. The service offers convenience and value while eliminating the need for customers to manually enter their destination information, especially when driving."
This is a novel tie-in between 411 and directions. We wonder if Google will do something similar for Android with the GOOG-411 service. (VZ Navigator functionality is provided by Networks in Motion.)
Users will pay $1.49 (411) + their VZ Navigator subscription fees ($9.99 per month) for each use. As smartphones like the iPhone and Android start to offer improved turn-by-turn directions capabilities the market for subscription services like VZ Navigator will be diminished. Indeed, smartphones with GPS threaten the entire PND market over time. That's why Garmin has become a smartphone maker.
Even though the iPhone, Android and, to some extent new WebOS from Palm have captured the hearts, minds and resources of application developers, Java remains the common denominator for running apps that serve the hundreds of millions of wireless subscribers with "feature phones". That's why it is noteworthy that Pongr - with an "image recognition and price comparison" application that already runs on the iPhone, Blackberry and low-end (text-only) phones, has joined the developer network operated by Java specialist Everypoint. It highlights the developer's dilemma when looking to reach the maximum number of subscribers worldwide with "rich" applications.
Pongr supports comparison shopping by allowing shoppers to use their mobile phone to do global price checks. For text-only shoppers, it keys off of a manually entered bar code. For phones equipped with cameras, it will key off of an image of the item that a shopper is looking at. The service then allows the shopper to buy the item from his or her phone, or through MyPongr.com, its on-line portal. Turning to Everypoint to extend its footprint reflects some dissatisfaction with the reach provided by a decidedly bi-modal strategy. SMS may prove too clunky, while high-end smartphones may remains too exclusive. In this case, support of Java through a device-neutral platform may be just right.
Someone said to me last week that he thought Twitter was "primarily a desktop thing." If you listened to last week's Stephen Colbert interview of Twitter co-founder Biz Stone, you'd have heard how mobile-centric Twitter actually is, from inception to its future ambition.
Much of the discussion of whether Twitter came from and where it's going focused on mobile phones.
The inspiration behind Twitter is instant messaging "connected to mobile texting such that it was available everywhere -- totally ubiquitious," said Stone.
Where do the 140 characters come from? SMS messaging according to Stone: "The limit on texts are 160 characters and we wanted to reserve a little bit of room for a username." And he specifically cites mobile as part of the larger growth strategy for the company. "There are over four billion mobile phones," observed Stone.
Though not asked, Stone impliedly rejects the notion of an acquisition: "We're going to become a strong, profitable independent company."
Canada's Yellow Pages Group has launched iPhone and BlackBerry applications. The straightfoward, though nicely designed applications -- I've only seen the iPhone app -- offer local business search, reverse lookups and people search. Location can be manually entered or found via GPS. Results can then be saved under "My Favs" or shared via email or SMS.
There's also voice-based search, although I haven't been able to use it because I have an iPod Touch rather than an iPhone. I was also unable to get any results for the US market, which makes sense.
In addition to yellow pages, Yellow Pages Group also owns Trader Corporation in Canada, publishers of vertical advertising directories and classifieds. It also owns and operates a range of Canadian cityguides (e.g., MontrealPlus.ca). Consequently the company has a range of "vertical" options and could develop other types of apps around restaurants and entertainment or some of its Trader categories.
In the US, AT&T has developed several vertical apps (downloading one ties into the others), which represent a kind of back door into the YPMobile app. None are branded "yellow pages;" they're called Have2Snack, Have2P, Have2Drink, but they essentially repurpose other Yellowpages.com/YPMobile content and offer another way to drive traffic to AT&T listings and advertisers.
Unlike its US counterparts, Yellow Pages Group owns the "yellow pages" trademark so no other app developer targeting the Canadian market can use that term.
Google has introduced the "places" layer of Google Earth on the PC to the iPhone. Tapping a blue, square icon on the map brings up a range of different content types (video, Wikipedia entries, images) for the particular location. All this remains within the Google Earth experience.
Google Earth has never been a particularly good local search tool on the PC. Though a terrific educational tool, it's large and much slower than Google Maps. But on the iPhone one can efficiently use it to find information about places, businesses and venues. And because of the variety of content type on Earth, it's a more interesting tool than the iPhone version of Google Maps.
Using OnStar’s Voice-Activated Hands-Free Calling system, and having your voice converted into text, you can provide updates which would appear in the “What are you doing?” section of your Twitter homepage. It is also possible to listen to a tweet that was sent to you by someone else after it has been converted into voice. You can send and receive tweets without having to type or read anything.”
This is fascinating. We've talked about Twitter morphing into a DA-like, social directory service where you ask your "followers" for recommendations and receive them in near real time. This potential in-car integration would further that use case for sure.
And just because it's so good, here's the Twitter send-up from Current TV: "We've wasted our lives."
Barcode readers and scanners should be a common part of the next generation of smartphones. But for now the capability among US handsets is limited.
ShopSavvy (from Big in Japan) brought this functionality to the Android G1 (it doesn't exist on the iPhone). The camera-phone-based scanner allows users to get information on products by scanning barcodes on packaging. ShopSavvy had also promised data on local product inventory. However that promise was largely unfulfilled.
Now the company has announced a partnership with Krillion to integrate Krillion's real-time product inventory database into ShopSavvy:
Through technology developed by Krillion, shoppers can now view real-time product inventory at local stores when they use the ShopSavvy application to scan a product barcode. This means they can quickly identify a local retailer with in-stock product and then purchase the product online for immediate pick-up at a nearby store.
I haven't used it but imagine that one could a) straightforwardly search for local products in nearby stores w/o scanning and b) use this to see who has a better deal on the product scanned nearby
uLocate's WHERE has launched a location-enabled mobile Web site (not an application) in conjunction with Sprint, with which it has a long-standing relationship:
With access to network-based location on the Sprint network, WHERE provides nearby search results, even on non GPS-enabled devices, without requiring users to report their location. Sprint users can now browse to WHERE (m.where.com) on their phone’s Web browser and easily find locally relevant information from AccuWeather to ZipCar.
WHERE has also been experimenting with some innovative social features on its client application for the G1.
The benefit of the Sprint relationship is that the mobile site can detect location without the need for a download, a GPS chip in the phone or triangulation; current location is supplied via the carrier. Any user with mobile Web access can get the site; however location would need to be manually set for non-Sprint customers.
US yellow pages publisher RH Donnelley just launched its "DexKnows" set of mobile sites/apps. That now completes the quartet of major US publishers with mobile sites and applications: Yellowpages.com, Idearc (with a new iPhone app coming) and Yellowbook. In particular AT&T's YPMobile application has been quite popular and successful as an iPhone app.
In Europe, MobilePeople has been building mobile apps and sites for YP publishers for several years. Now, in the US, mobile is no longer a novelty or "nice to have." It's a critical part of an overall traffic and brand strategy. As print usage in major metro markets continues to decline and the consumer market fragments even further, mobile is another piece of the traffic puzzle.
However the challenge for these publishers is to really do mobile in a way that makes it an asset rather than simply a bunch of listings distributed on a mobile handset. There are plenty of mobile apps and sites that provide local listings data. Arguably the mobile market is more competitive in this way than online.
One way in which the DexKnows iPhone app does something different on its iPhone app is by employing an Urbanspoon-like spinner/slot machine feature under a category called "Feelin' like." It provides restaurant listings by "genre" and location. That same tool also works with travel related services (e.g., lodging) and attractions (e.g., museums).
YP Mobile has included events (from Zvents), which stretches beyond the online product.
For most YP publishers, mobile will be a "defensive" strategy to avoid losing users as they shift to mobile, rather than a way to gain new users. Yet unimaginative apps or sites will fail to serve even this function. Mobile is similar to online in many respects. But there are also important differences and publishers should be sensitive to those differences accordingly. For example the categories of usage in mobile are going to be different (at least in the near term) from those in the print directory or online. The "feelin' like" functionality on the Dex iPhone app recognizes this.
Dex also offers 1-800-Call-Dex, which is a free-DA service.
The question remains in my mind: Are YP publishers "culturally" up to the task of creating compelling mobile applications and experiences (which might include verticals or specialized apps) vs. simply reproducing their directories on the handset.
Mobile-social network Whrrl was essentially a reinvention of Yelp with location awareness on the mobile handset. There was a PC site as well but the company's focus was on mobile. On Friday Pelago (Whrrl's developer-parent) relaunched the site with a new look, new positioning and a new iPhone app.
The map is no longer the central metaphor for the site, although location is still a central element of the experience. Finding things to do and places to go is no longer the site's reason for being. Instead the emphasis now is on telling stories: Twitter-like missives combined with images.
VentureBeat and CNET have largely positive reviews of the changes and the new app. But another view might be that Whrrl's shift and repositioning were compelled by necessity and the idea that as a mobile-social/LBS site there were too many competitors already and the company wasn't getting adoption. That's got to be partly the case.
But here's what CEO Jeff Holden said on the company's blog about the changes:
Whrrl was a very worthy experiment, but we learned a couple of important things that led us to conclude we should build a different product.
First, people don’t really like writing reviews very much. Only a very small percentage of users actually wanted to take the time to write a review. When we talked to our users, they told us that reviews are too impersonal and they’re just not very engaging. They told us that what they really wanted to share was their stories. The second big learning was that gratification in Whrrl came too slowly — before a new user would start seeing social discovery benefit, they had to contribute quite a bit. This really had its root in the first point: since sharing reviews wasn’t very motivating for people, they needed a greater reward to do it. And truly getting to the discovery benefit was a bridge too far.
I'm sure Holden is accurately representing what Whrrl's users said. Yet, while it's true that only a small percentage (<10%) of people write reviews, more established sites like Yelp contradict Holden's generalization. GoodRec, a mobile-centric ratings site, also said that it's seeing 50% of its reviews coming from mobile (mostly the iPhone). It's likely that Whrrl as it was constituted before the change didn't give users enough of a reason to use the site (vs. more established competitors).
The redesign and repositioning may turn out to be a great move and help the site really take off. But that remains to be seen.
The new site effectively abandons the idea that it's creating an independent network and seeks to leverage Facebook and Twitter directly, although that has been true for a few months. It also seeks to leverage the "culture of updates" that Twitter created and that Facebook is also seeking to capitalize on.
The new site is no longer like Yelp or Citysearch or other local review sites. But now that Whrrl has become more like Twitter, the question is: is there enough here that's different to motivate people to use it?
Last week Big in Japan, creator of the barcode scanning Android app ShopSavvy, announced that it had integrated the Skyhook location awareness suite of tools. The G1 has built-in GPS but the Skyhook tools will be used to augment that and better provide location-related data that facilitates delivery of nearby store inventory information.
ShopSavvy crawls for data and works with Krillion to provide local product inventory.
Other mobile providers of local inventory data include NearbyNow and TheFind (which gets data from NearbyNow). In-store price comparisons and local inventory lookups are going to be increasingly popular as smartphones continue to grow share.
However ShopSavvy in the US is currently unique; there is no comparable barcode scanning app today for the iPhone, WinMo, Symbian or BlackBerry. Yet we can expect to see much more use of the camera as a search tool across smartphones in the future -- with barcodes, QR codes, etc. And many of those codes will likely be embedded in traditional media: magazines, newspapers, outdoor.
From a usability standpoint this "camera search" capability is roughly akin to voice interfaces in a way, expediting the retrieval and return of information.
Go2 is one of the true incumbents in mobile, having started more than a decade ago. The current version of go2 is the result of a merger of the original company and 80108 in October, 2007. The company claims more than a million monthly users.
The company has a range of major carrier relationships and distributes most of its content (and advertising) accordingly through those operator decks. However go2 has seen many of those gains somewhat obscured by the movement of higher profile players into the mobile space in earnest and the shifting of the high end of the market away from the carrier deck and toward the open Internet.
go2 has taken a smart local-vertical approach to content and ads delivery with a range of niche directories. Consistent with that the company today announced "mobile entertainment guides" for "473 US colleges." Characterized as local entertainment portals, here's how the release describes the new guides:
The guides are available on AT&T MediaNET's NCAA Basketball site as "News and Events from Your School," where students can access local events, movie showtimes, college sports scores and recommendations from the go2 Content Network.
The guides will soon be available to Virgin Mobile/Helio and Sprint/Nextel subscribers.
go2 Colleges provides students with an unmatched array of useful entertainment info in one portal designed around their campus location. Students can check constantly updated local event info about movies, concerts and school sporting events or access a directory of restaurants and bars close to campus.
In fairness to go2 I haven't used the guides and so can't comment on how strong they are. If they're good people will use and promote them via word of mouth. Their greatest usage may well be on "feature phones" where consumers can't as easily access familiar Internet brands and sites that they're accustomed to using on their PCs.