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3 out of 4 Mobile Consumers Prefer Free Content with Ads Over Paid Content

3 out of 4 Mobile Consumers Prefer Free Content with Ads Over Paid Content

mobile apps free premiumA new study from Tapjoy and Yankee Group reveals that 73% of tablet users and 67% of smartphone users would engage with advertising to access content for free while just 46% of tablet users and 31% of smartphone users would consider purchasing in-app premium content priced between $0.99 and $2.99.

In fact, 80% of mobile device owners reported that they already engage with advertising on a daily basis in exchange for premium content or some form of virtual currency, and nearly 50% do so on a monthly basis or more frequently.

It turns out that mobile consumers are already comfortable engaging with online advertising in order to get free content, and they’re willing to accept more advertising if it means they’ll get more free content or virtual currency. When asked what kind of content mobile consumers would want to receive in exchange for viewing and engaging with advertising, the study found the following breakdown:

  1. Tablet apps = 77%
  2. Paperback book = 75%
  3. MP3 download = 73%
  4. Table app upgrade/premium content = 73%
  5. Coffee = 71%
  6. Smartphone app = 70%
  7. Smartphone app upgrade premium content = 67%
  8. Newspaper = 66%

What does this mean for brand marketers? According to Tapjoy’s “Redefining Virtual Currency” report, giving your mobile consumers opportunities to earn virtual currency by willingly engaging with advertising is a key monetization strategy. Consumers have already demonstrated their comfort-level with accepting mobile advertising in exchange for premium content and virtual currency, and they prefer accessing that premium content and other rewards by accepting mobile advertising than paying for it.

Bottom-line, mobile consumers understand that the ads they see are what gives them free content. They expect to see ads, and as long as those ads aren’t obtrusive to the mobile experience, consumers are satisfied. Don’t jump on the premium content or freemium app bandwagon. Instead, consider how advertising and virtual currency could be integrated into your brand’s mobile app to generate revenue and satisfy more customers. In-app mobile advertising can be a positive thing for consumers and brands, so don’t count it out of your app development process.

What do you think? Leave a comment below and share your thoughts on free vs. paid mobile content and in-app advertising.

Image: Intel Free Press

Yahoo! Tries to Regain Cool Factor with Younger Audiences

arrows differentYahoo! wants young people to think it’s cool. That’s a strategic priority for the company according to CFO Ken Goldman who told the audience at the J.P. Morgan Global Technology, Media and Telecom conference in Boston on this week that Yahoo! is launching marketing campaigns directed at the 18 to 34 year old audience. The new marketing initiatives will make the Yahoo! brand more visible and spread the word about new products on outdoor billboards, sporting events, and other places.

Goldman explained, “Part of it is going to be just visibility again in making ourselves cool, which we got away from for a couple of years.”

While Goldman didn’t share budgets or timing of the new marketing push, he did admit that there will be significant advertising spending across a variety of media and channels to spread the cool brand message. The question is whether or not Yahoo! can back up its claims of coolness among the 18-34 year old audience. It’s likely this audience doesn’t remember the early days of the Yahoo! brand when it was known as the main competitor to Google’s search engine. Instead, many members of this audience associate the Yahoo! brand with curated and syndicated content, low quality content provided by writers who are paid little or nothing at all, and a lot of clutter.

I want Yahoo! to succeed, but is it too soon to hype the “cool” message? Yes, the company has a young CEO in Marissa Mayer who is known for her digital product development prowess, but does her presence equate to instant coolness? Will the younger demographic make that leap?

In life and in branding, you need to earn a “cool” reputation. It doesn’t come easily, and actions speak louder than words. It’s the perfect time for Yahoo! to make some bold moves (and I don’t mean eliminating telecommuting). Many of the dominant online brands have been at the top of their respective markets for a while, and consumers are ready for the next big thing. Can Yahoo! bring it? One thing is for certain—the brand that delivers the bold new products and online experiences will be cool.

What do you think?

Image: Ilker

2 out of 3 U.K. Smarphone Users are Mobile Shoppers

ebay mobile app iphoneThink your customers aren’t using mobile devices to shop? Think again.

New research from market research firm Arbitron Mobile found that 66.8% of U.K. smartphone owners used mobile commerce apps in March 2013. That number is higher than any other country included in the study (United States =55.9%, Germany = 57.6%, and France = 52.5%).

The report also shows that U.K. smartphone owners spend the most time using mobile commerce apps and shopping with their mobile devices. You can see the specific data below:

  • United Kingdom: Minutes per month = 134.8, Sessions per month = 54.5
  • United States: Minutes per month = 91.0, Sessions per month = 30.8
  • Germany: Minutes per month = 74.3, Sessions per month = 32.1
  • France: Minutes per month = 56.1, Sessions per month = 23.9

The most popular mobile commerce app used by smartphone owners in the U.K. during the month of March 2013 was the eBay app. Nearly one out of two (43.8%) panelists used the eBay app during March for a total of 144.1 minutes and 52.1 sessions for the month.

In fact, more than twice as many U.K. smartphone owners used the eBay mobile commerce app than the next most popular mobile commerce app, Amazon Mobile. Just 16.0% of U.K. smartphone owners reported using the Amazon Mobile app during March 2013 with usage time reported as 29.1 minutes and 9.5 sessions during that month. The Groupon, Nectar, and Maximiles app were each cited by 10% or fewer U.K. smartphone owners.

Interestingly, the study found that U.K. mobile commerce app users actually use those apps less frequently during the December holiday season. The data below shows you the usage pattern between October 2012 and March 2013, and it will probably surprise you:

  • October 2012 = 61.6%
  • November 2012 = 60.4%
  • December 2012 = 59.6%
  • January 2013 = 59.8%
  • February 2013 = 58.9%
  • March 2013 = 66.8%

The data shows that mCommerce is growing steadily in the U.K., and companies with useful mobile commerce apps are reaping the rewards. Think about your brand and how you can create a mobile commerce app that meets your target audience’s needs just as eBay has done. Don’t create an app simply to check it off of your list of 2013 projects. Make sure it delivers the experience your target audience wants and you’ll be able to attract that growing audience of smartphone users who are comfortable shopping through their mobile devices. After all, this audience certainly isn’t going to shrink, so ignoring the opportunity mCommerce represents could be a strategic disaster.

Image: Dan Taylor

Leveraging Emotions Analytics in Brand Marketing

sound waveToday, brand marketers have access to more data than ever, but there is a new kind of data you might not be accessing yet. It’s called emotions analytics.

Tel Aviv, Israel-based Beyond Verbal has launched a patented voice recognition technology that can extract, decode, and measure an individual’s full set of emotions and character traits from that person’s raw voice in real-time (i.e., as they speak). Using this data, the technology can detect moods, attitudes, and decision-making characteristics, which the company refers to as emotions analytics.

A team of physicists and neuropsychologists spent 18 years researching voice data and studied more than 60,000 test subjects in 26 languages to develop the technology behind emotions analytics. The company leaders believe that the technology will change the way people communicate and interact with each other as well as how they interact with computers. Taking it a step further, you can imagine how useful this voice data could be to brand marketers.

Already, Beyond Verbal licenses its technology to companies for use in their consumer applications, products, devices, software, appliances, and more. The company is also building a web-based tool for individuals to use, and a third-party mobile app using the Beyond Verbal API is expected to be released within a few weeks.

In a press release, Beyond Verbal CEO and 25-year technology veteran Yuval Mor explains the far-reaching implications that his company’s emotional analytics technology could have:

Nearly two decades of research tells us that it’s not what someone says, but how they say it, that tells the full story. Beyond Verbal has the potential to impact numerous multi-billion dollar verticals and leverage a new market of emotionally-enhanced applications installed in any voice-enabled, voice-activated, or voice-controlled device. This opens up a new dimension of emotional understanding, called Emotions Analytics, giving humans and machines the ability to react in ways that were never before possible.

For brand marketers, tapping into consumer emotions is critical, and this type of technology, which extracts emotional data and interprets it, could be a gold mine. I’m excited to stay tuned to this story.

What do you think? Is this type of technology, which delivers emotions analytics, a brand marketing game-changer? Share your opinions on emotional analytics in the comments below.

Image: Artur Bieniek

Android and iOS Users Display Different Mobile Behaviors

iphone apple iosWhich mobile operating system is driving the most internet traffic? That’s an important statistic for marketers, but most don’t know the answer. In fact, the result might surprise you.

Despite higher market share for Google’s Android mobile devices, the Apple operating system, iOS, drives more internet traffic according to the new “State of Mobile Benchmark” study by Adobe.

In the United Kingdom, Germany, China, the United States, France, and Japan, iOS internet traffic from tablet devices beats Android by a significant margin in February 2013. The numbers are closer for smartphones with iOS beating out Android in three of the six countries researched — the U.K., Germany, and China.

In all six countries studied, other mobile operating systems weren’t even close to generating the kinds of internet traffic that iOS and Android do. As you can see below, the gap is largest among U.K. mobile consumers who are also driving the largest percentages of internet traffic from tablets and smartphones.

Tablet Internet Traffic

  • United Kingdom: iOS = 84.2%, Android = 13.8%
  • Germany: iOS = 81.8%, Android = 17.5%
  • China: iOS = 81.6%, Android = 17.3%
  • United States: iOS = 77.8%, Android = 20.5%
  • France: iOS = 77.4%, Android = 22.0%
  • Japan: iOS = 77.2%, Android = 22.4%

Smartphone Internet Traffic (February 2013)

  • United Kingdom: iOS = 53.5%, Android = 37.2%
  • Germany: iOS = 51.0%, Android = 41.2%
  • China: iOS = 49.5%, Android = 45.5%
  • United States: iOS = 44.9%, Android = 48.9%
  • France: iOS = 36.3%, Android = 60.9%
  • Japan: iOS = 32.0%, Android = 49.6%

The important takeaway for brand marketers based on this data is simple. Mobile behaviors, including internet usage, vary based on the mobile operating system. Emarketer predicts that Android will continue to lead the smartphone market and will successfully steal significant market share from Apple over the next five years. As a result, internet traffic from Android smartphones and tablets will go up, too. However, there are inherent differences in mobile engagement between users of the competing operating systems. Brands must consider these differences to maximize mobile marketing return on investment.

In simplest terms, not all mobile consumers are alike. They use their devices differently and they choose devices and operating systems that fit their needs and lifestyles. This data is just one more piece of the brand marketing puzzle.

Is your company targeting consumers with messaging and offers based on the mobile operating system they use? Leave a comment and share your thoughts.

Image: Gonzalo Baeza