T-Mobile subscribers with Chase Visa's and a G1 can check download the Visa Mobile application designed to deliver "near real time alerts", such as when a subscriber is approaching a designated credit limit or if Visa has detected potentially unauthorized use of the one's credit card; "offers", which amount to promotions from participating retailers, restaurants or service providers; and "locator", which illustrates nearby merchants that will honor Visa Mobile offers.
Greg Sterling noted that Google and Visa were working on an Android-based service back in September. We haven't used the service, but reviews have been generally favorable. Including "offers" presents the possibility of a viable business model and the "locator" service is a natural form of local mobile search.
The introduction has already sparked some discussion of the need for stepped up security for mobile devices. Apparently Visa embedded some interesting weasel words in its terms of service warning that "no data transmission via a mobile handset can be guaranteed to be 100% secure." Lack of 100% security should be a well-understood given by now, if for no other reason than the fact that people have a bad habit of leaving their phones on trains, planes or cabs.
A cottage industry is about to be created to protect the information that people carry around on their mobile devices. [At LMS and Opus Research we believe that the human voice (in the form of a passphrase or voice signature) should be an important part of the equation for mobile phones, but that's a different story from a different program.]
In an effort to control the costs of making mobile applications that are "geo-aware" Vodafone acquired Wayfinder, a Swedish developer of location-based services. The two companies have a history of working together to offer GPS services in some of the countries in Western Europe. But Vodafone's services in Germany, the Netherlands and Portugal have been offered in conjunction with TomTom, which acquired digital map specialist Tele Atlas earlier this year.
Something about the purchase price (roughly $29 million in cash) has led shares in TomTom to surge on European exchanges. One explanation is that Vodafone, which had acquired the Danish social networking specialist ZYB in May of this year, is taking more control of local social networking offers through its affiliates. In that case, it regards Wayfinder as a component for a robust set of home-grown (more accurately 'recently acquired') mobile services. Such a strategy points to more opportunities to knit TomTom's resources into the mix, at the expense of alternative mobile content and service providers, specifically Nokia.
The role of wireless carriers in providing innovative services remains a matter of great uncertainty. The "AppStore" model for publicizing and distributing a constant stream of new applications from third parties is certainly gaining traction with iPhone users and is certain to become the model for the new generation of "open platforms" for mobile services. This approach makes it less and less likely that wireless subscribers will turn to their carriers as the sole source of mobile applications.
If anything, the $29 million sale price is a testimony to the fact that "there's no better time to buy!" innovative technology firms. ZYB cost Vodafone $50 million just four months ago. By contrast, TomTom spent 2 billion Euros (more than $4 billion-with a "b") for TeleAtlas and its resources for generating and maintaining digital maps and navigational services around the world. Spending mere millions to take control of resources for integrating geo-awareness into local, social networking services is a small price to pay.
Local search and city guide provider Citysearch has just launched an iPhone app, which is much more successful than prior mobile efforts in my view. TechCrunch believes that it's virtually indistinguishable from Yelp's iPhone app. But it the palate is different (if you don't like black you won't like it) and there are a couple of meaningful substantive differences. Two biggest are:
But many of the features and capabilities of the apps are similar or the almost same. Citysearch has redesigned and integrated Facebook Connect on the desktop, though there's no apparent evidence of that in mobile (yet). That could be a differentiator of sorts for the site.
My guess however is that if you're a loyal Citysearch user online, this will be your local mobile search app of choice on the iPhone. The same goes true for Yelp users who are unlikely to switch.
Here's the press release.
There's really no good name for it but it's happening: multi-channel in-store shopping. That's where people do price comparisons or product review checks in the store while a consumer is looking at/for a product. There's also the scenario where she or he buys it online (right there) because it's sold out. And increasingly consumers will also be able to look for it at a nearby store (TheFind allows this, as does Android's ShopSavvy).
The new Amazon iPhone app also allows users to take photos of products in stores, which are then "remembered" on the app. Amazon reminds you of these items and finds them or similar ones among Amazon's inventory. While I'm jumping the gun, this feature could eventually be as big a deal for Amazon as "those who bought . . . also bought . . ."
Given the recession and a parallel push online there's new momentum behind mobile coupons/deals. For example, there's a burgeoning effort to create a weekly mobile coupon day in "Mobile Tuesday":
Mobigosee, a leading innovator of transformational mobile marketing technology, today announced that Mobile Tuesday will run for 52 weeks each year, delivering coupons, offers, discounts and information to consumers from retailers and other organizations interested in tapping the power of mobile commerce directly to mobile phones. Mobile Tuesday, similar to the traditional 'circular' received in the mail, comprises offers, discounts, coupons, store location information and purchasing power delivered directly to mobile phones.
And HipCricket, among others, has captured this growing interest in mobile coupons (we also have data that is consistent with this):
ShopLocal is increasingly distributing its retailer data via mobile devices on behalf of clients as well:
NearbyNow, which provides retailer inventory data, is also doing some very innovative things in mobile with SMS advertising and soon the iPhone platform.
Individual retailers are also recognizing the opportunity; Gap and Target launched iPhone apps recently.
The Wall Street Journal also ran an article on Monday detailing some of the efforts that retailers are making in mobile:
Most cellphones support the promotional text messages. But many advanced shopping and commerce features are built for specific smart phones, such as the Apple iPhone. Most programs, like text-message alerts, require consumers to sign up either through their phones or via the Web.
Wal-Mart is sending out more-frequent text-message alerts to its shoppers who signed up for the service, says Melissa O'Brien a spokeswoman for the company. Last year, Wal-Mart sent out three alerts to shoppers' cellphones the entire holiday season. This year, the company is sending out weekly alerts that customers can tailor by category. Last week, Wal-Mart sent customers text messages detailing holiday specials on toys and home electronics. Shoppers can click on links within the text messages that will take them to Wal-Mart's mobile Web site to find additional details and reviews of that item.
Buy.com is sending out daily deals on Twitter, a Web site on which users send and share short messages via the Web, text-messages and email, says Neel Grover, Buy.com's chief executive and president. The company is sending out about 25 messages a day about new specials it is offering, Mr. Grover says.
Last month, Sears launched a new mobile Web site called Sears2Go, where customers can make credit-card purchases directly from their phones. Tom Aiello, a Sears spokesman, says one way shoppers are using the site is to make purchases while in the store after finding out that an item is sold out.
There has been some evidence of resistance by retailers to in-store mobile research and price comparisons by consumers. But as the pop-culture expression goes, "resistance is futile."
Mobile advertising as a major contributor of digital ad revenue is probably several years away (we'll be revising our forecast shortly). But consumer adoption of mobile "shopping" is procceding apace. As the various consumer behaviors and use cases crystallize the marketing opportunities will become more and more apparent, although the discussion above illustrates many of them already.
ChaCha reported this morning "among pure-play SMS search providers ChaCha, Google SMS and Yahoo! SMS, ChaCha is the fastest growing service," according to Nielsen:
ChaCha’s 28 percent share of transactions is up from just seven percent in Q2, marking a 300 percent quarter over quarter gain, driven by a 660 percent quarter over quarter growth in overall ChaCha transactions. ChaCha reports that they now deliver 30 million impressions per month and have had more than 2.5 million users since the SMS answers service launched in January.
The company also reported that it has gained traction among advertisers such brand advertisers as McDonald's and Coca-Cola.
The success ChaCha has had in transforming itself from a great concept but faltering desktop search engine to a mobile search tool, driven by viral adoption, is a great success story.
Recognizing the need to build a developer and software ecosystem, Sprint announced a new open platform for third parties:
Continuing its leadership in employing an open application model, Sprint today is introducing the latest version of its developer toolkit, relaunching its Professional Developer Program and preparing to deliver new Sprint devices and a new Java platform that will open the door to millions of developers who have traditionally designed for a desktop environment.
As a pioneering user of the Java mobile platform, Sprint is participating in JavaOne for the eighth consecutive year, offering its latest tools for developers to create wireless applications that customers can run on Sprint phones. At the Sprint exhibit during the 2008 conference, Sprint will launch its latest Wireless Toolkit, demonstrate the capabilities of its latest technology, including the new Titan platform, and launch its revised Professional Developer Program.
Sprint arguably has the best mobile broadband network and is ahead of rivals with the new Clearwire/Sprint 4G initiative. But it lags in terms of "sexy" hardware and mobile software applications vs. Apple, Android, RIM and WinMo.
Oodle, the second largest classified network in the U.S. announced that it has been chosen to be the "classified advertising application" embedded in Facebook. The target is to deliver an updated version of its Marketplace in the first quarter of 2009. In effect, Oodle will become the engine for local searches surrounding roommates, apartments for rent and other popular classified category.
No question, this is local search. But is it mobile? I say, definitely.
The leading "social networks" transcend both space and time by keeping individuals in touch with friends, classmates, colleagues, associates or idols in many locations and across many stages in their lives. Still, propinquity and immediacy are the elements that foster activity. As evidence, one need only look at our recent posting that revealed that MySpace, AIM, FaceBook and Craig's list are among the top search terms from mobile browsers. Mobile folks are definitely interested in who's nearby and what they are doing.
Desk-bound social networks days are numbered. They are already being replaced or (more accurately) augmented by their "to go" counterparts. The addition of Oodle as a classified application to Facebook Mobile will be especially useful, for it is through mobile renditions of Web-based resources that members communicate their location, thoughts, activities, interests and other elements of "status." Delving into classifieds through Facebook on featurephone or smartphone amounts to local mobile search.
Dial Directions' Say Where local search app was the first voice-enabled application for the iPhone. Then came Google's Voice Search and now Vlingo has released a version of its voice search product for the device.
We haven't had a chance to test it yet but CNET calls it better than Google's voice search. It appears to have a broader range of capabilities. From the video (link below) it also appears impressive. However, we'll give it a try and report back.
The app allows users to search Google and Yahoo! (Vlingo is behind its pre-existing speech-enabled oneSearch), initiate calls to any of their contacts, look up map listings (local search) and update Twitter or Facebook status.
Here's a video of how it works.
Contextual content and advertising provider Proximic released an iPhone app, as the first step into a much broader foray into consumer-facing mobile search. The company's underlying technology is called "pattern proximity matching," which seeks to better understand pages and context through numerous points of relevance. Company CEO Philipp Pieper says that it can be used to match ads with content (or content with other content) but that it also offers a superior relevance algorithm for consumer search.
However the new iPhone App "Proximic Agents" isn't yet a full-blown search engine; it's a more intelligent news reader -- for now. Here's how the company describes the new iPhone app:
The Agents app is an intelligent news service for better daily productivity. Proximic will scour millions of RSS feeds to find relevant content. Agents then match your interests and deliver fresh information directly on your iPhone.
Users set up queries or search terms ("agents"), very much like current news alerts. Wikipedia and news feeds are indexed and dynamically presented to end users who can save or share queries/results. Results may be sorted by relevance or date. But in the near term location awareness will be incorporated as another layer of relevance and factor into how results are defined and presented as well.
Search queries may be stored and retrieved under the "agents" button (upper left of the screen). The interesting thing is that the app doesn't call itself a search engine but that's largely how it presents itself to iPhone users. Over time it will become more like a search engine, with more data sources and more use cases. Users who set it up as a news reader will today have a better experience than those seeking to use it as they would a mobile search engine.
The rest of this post is on Search Engine Land.
Mobile classifieds platform Gumiyo is pitching the newspaper industry that a suite of new tools and services represent an important new revenue stream for the beleaguered industry. (Here's our previous post on Gumiyo.)
From the press release earlier today:
Gumiyo's Mobile Ready Platform can be privately labeled and integrated directly into a publication's existing ad sales business, providing in-depth, interactive, and media-rich content that is linked to the advertiser's display and liner ads. The platform can also mobilize a paper's classifieds section by delivering matched listings to on-the-go consumers, and creates additional opportunities to engage those consumers beyond the printed page. Combinations of its unique engagement tools keep local consumers and advertisers connected and communicating.
Rather than a mobile-only classifieds platform this "mobile ready" platform offers the ability to link SMS messages and mobile web content to static print ads. In terms of classiifieds activity in mobile, note that "Craigslist" was the #3 mobile search query from Yahoo! this year.
The integration between print and other forms of traditional advertising and mobile will only gain steam and could deliver meaningful mobile marketing revenues in the near term. (See also Yell Puts QR Codes on Print Directories.)
HipCricket, among others, is also working in this "online-offline" segment, linking traditional media and mobile.
Earlier this morning AOL released its list of top search terms, including top mobile search terms.
Here are Yahoo!'s for comparison purposes:
AOL released five terms. However the only apparent overlap is in the social networks MySpace and Facebook. It will be interesting to see how results differ if Google and Microsoft also do this for mobile.
iPhone tracking site 148apps.com said over the weekend that the number of apps in the iTunes store has now passed 10,000 (10,134 to be precise). The site breaks them out by price, category and when they were submitted:
According to Skyhook Wireless (as of 11/7/08) roughly 530 apps are location-aware (just over 5% of the total):
Update: after I posted yesterday, Skyhook updated its slides. It appears location aware apps for the iPhone are now closing in on about 600 or 6% of the total number of apps:
In a new experiment UK directory publisher Yell has added 2D barcodes to the cover of two of its print directories, which provide access to weather and entertainment information. According to the release issued earlier today:
Yell is to trial innovative smart codes on the front covers of two editions of its Yellow Pages directories, enabling consumers to obtain the latest local cinema and weather information via the mobile internet.
Two interactive smart codes published on the covers of the new Edinburgh and Cardiff editions of Yellow Pages in December will feature an encoded URL that hyperlinks consumers to the mobile internet. They will provide an innovative and quick way for Yellow Pages consumers who have a mobile phone with an internet service to obtain the latest cinema and weather information.
Users are required to download software that enables the phone to read the barcodes (and thus may it have limited adoption). However if successful, this has much more widespread potential application thoughout the directory.
It's yet another example of how mobile can be used to extend and make traditional media more dynamic.
HTC said that it will ship more than the 600K units originally forecast for the end of 2008. The expectation is now that 1 million units will ship by the end of the year. AT&T and Motorola expect to have Android phones out in 2009. I will predict that Sprint will bring one out in late 2009 as well.
Meanwhile the G1 will get the Opera Mini 4.2 as an alternative browser.
US carrier Alltel, soon to be a part of Verizon Wireless, has launched targeted, idle screen advertising in the context of a program it calls "Alltel Perks." Here's how the press release describes the offering, which requires users to download software and register for the program:
Once registered, the service proactively delivers offers and content to subscribers when their phone is not in use. As offers download to the handset, users can open the banner to display more content by selecting the “View” hot button as indicated on the phone. If any other button is selected the offer will go away, as to not be intrusive. While airtime charges may apply to the service, the initial download of the Alltel Perks application from the Alltel Shop is free for Alltel customers.
The Alltel Perks service, powered by Mobile Posse, the first company to launch idle screen-based advertising in the United States, is fully customizable based on consumer preference and feedback. The application delivers content based on the customers’ ZIP code, age and gender, in addition to providing information and offers related to specific times of day and days of the week.
Meanwhile Transverse commissioned a study (n=810, US mobile subscribers) that found a majority of users would receive ads in exchange for discounts on their phone bills: 56% of mobile users said they would view ads on their phones if they were given a 25 to 50% discount on their monthly bill. Such a finding is perhaps "amplified" during a recession. But this is consisted with the data coming out of Blyk and VirginMobile USA's Sugar Mama programs.
Other findings from the Transverse study:
Mirroring a deal that already exists in Europe, Yahoo! will become the default search provider for T-Mobile USA's new "Web2go" portal. (Medio has an existing deal with T-Mobile that will remain but is not about Web search.) Yahoo is now the default search provider on two of the four major US carriers; AT&T is the other one.
T-Mobile, of course, just released the G1 (the Google Phone). I was in a T-Mobile store last night in San Francisco and a plastic copy of the Google home page is prominently displayed on the front of the phone to let people know "this is the Google Phone."
Google is competing with Microsoft for the default search provider role at Verizon. The most recent reports suggest that Microsoft has offered a sweater deal than Google and may win the business accordingly. Google and Microsoft both have relationships with Sprint, but Google is the preferred partner in that context.
Yahoo now says it has similar deals with more than 80 carriers around the world and thus can reach something close to 850 million people.
Being a default search provider will boost share somewhat. But as browser-based smartphones increasingly penetrate the US and Europe, existing Internet habits may trump those relationships. (It's an "empricial question" that will be answered in time, especially if Microsoft wins the Verizon business.) However comScore found that the "carrier's search engine" -- the default provider -- accounted for more share than Microsoft and AOL in September in the US (21%).
Using a smaller sample than comScore, the following were our findings from a US mobile user survey in August regarding mobile search market share:
Source: Opus Research/Multiplied Media (8/08, US mobile users)
Local cityguide Citysearch has launched a major overhaul of its site and user experience. I discuss the desktop portion of the site on my blog Screenwerk. There are more social features (in part via the capacity to log in using your Facebook ID) and the content is now searchable by neighborhood.
Citysearch mobile (which had been powered by Earthcomber and may still be [haven't confirmed]) is taking the medium much more seriously (press release). It will use device detection to optimize the experience for different mobile handsets and platforms and leverage location using a couple of methodologies. The company will also be releasing an iPhone app soon.
But the most significant aspect of the new Citysearch mobile experience, from my point of view, is the ability to write reviews from a mobile device in a highly simplified way. As we've written before more and more local user reviews will be coming through mobile devices and Citysearch is seeking to take advantage of that emerging trend.
Google Voice Search is apparently now finally available to download from the iTunes Store. However there's nothing different about the iTunes app that I can tell from the associated copy.
But here's the Google mobile page that offers a link directly to the iTunes store to download the updated app.
The "first impressions" are are now coming in quickly: some people love it, some are giving it a more qualified endorsement. So far no one is highly critical of it. Here's the complete blog roundup on Techmeme.
What people should remember is that this is the beginning of something . . . We'll have our own take in the near future.
We're still waiting for the Google app to update for voice search. Theories abound about why it hasn't yet been released. You can see the demo video on my personal blog Screenwerk. Here's what I wrote about it over the weekend after a conversation with Google's Mike Cohen and Gummi Hafsteinsson:
The first thing that is both intriguing and very different is that there are no buttons to push (although you can if you want apparently) to initiate voice search. Once the app is open on the iPhone you hold it up to the side of your head as though you were going to talk on the phone and simply speak the query. Search results then appear as they would if you had manually entered a query.
Google says it has learned tremendously from its experience with Goog411 but its desktop search query data is also contributing knowledge to the effort. These and other technical factors, beyond the scope of my expertise, will make the system more accurate that what has been possible in the past, said Google’s Cohen.
Beyond its reported accuracy, the usability of the system is striking. Most voice control on mobile handsets requires that buttons be pushed. There’s also often a “walkie-talkie” style experience, with the phone held out in front of the user to speak the query or command into the phone.
By removing the need to push a button and simply mimicking the experience and handset position of talking on the phone Google’s voice search may prove to be quite a bit more “natural” and intuitive. Another benefit for Google is that by having the phone’s receiver closer to the mouth of the person speaking the system gets a better, cleaner input.
After talking to Google I became hopeful that what Google is introducing will be a leap forward. If it indeed is we should see increased query volumes and longer query strings — and increased search monetization from mobile for Google. But all this will become more clear once the app launches -- hopefully today.
Chipmaker Qualcomm is incorporating Skyhook's various location awareness technologies into its new chipsets (gpsOne Platform). According to the press release this morning:
Skyhook's WPS is a software-only system that produces accurate location information by detecting Wi-Fi access points and comparing them against a known database of geo-located points. By combining Qualcomm's market-leading gpsOne solution – the most widely deployed A-GPS solution available – with Skyhook's location technologies, Qualcomm will enable future mobile device manufacturers, mobile operators, third-party service providers and application developers to utilize a single, integrated hybrid positioning solution.
I spoke to Skyhook CEO Ted Morgan about the announcement. He told me that the company's technology works best when it's integrated into the chipset, as with this annoucement. And the deal doesn't simply pertain to mobile handsets; it will include phones but also extend to laptops, cameras and potentially other mobile devices.
Morgan reminded me that "every CDMA phone has a Qualcomm chip in it." He also said that, combined with Skyhook's other relationships (e.g., Broadcomm), the deal gives Skyhook penetration into "north of 90% GPS supplier market."
We're entering a world where location is going to be available, at the chip-level, in the browser or via other mechanisms, to advertisers and publishers at almost every turn whether in mobile or on the traditional Internet. It may take a few years to realize this ambition but there can be no question of its inevitability.
Indeed, very soon users may start seeing pop-ups like this when they visit selected sites online: