2012 Mobile Trends- Mobile Commerce, Product Ecosystems, Location Integration - Levi Shapiro

This week marks the start of H2 2011 a perfect time to consider key trends for the mobile sector in 2012 Three of the sharpest researchers in the industry Nitesh Patel Strategy Analytics Michael Vakulenko Vision Mobile and Dr Bruce Krulwich Grizzly Analytics share their predictions for 2012 In short next year will see mobile devices driving commerce Apple and Google battling for ecosystem dominance and mobile location services more deeply integrated into our daily livesWhy Mobile Will Drive Commerce in 2012Nitesh Patel Senior Analyst Wireless Media StrategiesThe mobile phone is evolving into a power commerce tool enabling consumers to review products run price comparisons access inventory levels and make transactions both over the mobile network and the retail point of sale However while industry commentators have hailed the virtues of mobile commerce for some time consumers have not responded positively beyond buying ringtones and wallpapers So why will mcommerce blossom in 2012First some large web retailers indicate that mobile is becoming a significant sales channel In July 2010 Amazon announced that mobile devices generated US1 billion in sales 35 of its net sales during the 12 month period Last month Ebay stated it expects to process 3 billion in payments via PayPal in 2011 To dispel the view that big ticket items aren39t ripe for mobile commerce Ebay indicated three four Ferrari39s are sold via its mobile application each monthSecond we expect more retailers to create mobile sites enabled for mobile commerce For a long time web traffic from mobile devices has been negligible Once it accounts for over 10 of traffic as it does for some retailers merchants start to view it as a missed sales opportunityThird a slew of services will be launched in 2012 enabling consumers to make small value payments by tapping their NFC Near Field Communication enabled mobile phone against an NFC retail point of sale 2012 will be a critical year for driving NFC handset sales and encouraging retailers to adopt the technology although we expect enduser adoption to lag due to inertiaFinally consumers increasingly recognize that product reviews and price comparisons conducted on mobile devices enable better purchasing decisions both in and outside the store Importantly mobile payment is convenient and enables consumers to buy products when and wherever they wantBattle of the Product Ecosystem MobileMichael Vakulenko Research Partner Vision MobileApple and Google wwwgooglecom turned the mobile industry on its head by creating vibrant product ecosystems encompassing devices content and online services The Apple ecosystem is optimized for a premium user experience delivered via iconic devices sold at premium prices In contrast Google39s ecosystem is optimized to maximize the number of people accessing Google39s adsupported services via a variety of devices Both Apple and Google must expand their experience ecosystems across screens shifting the battleground from Smartphonesamp160 to tablets and finally the living room The outcome of this competitive struggle will be decided by how successfully they can offer a wide selection of content across all devices This includes music premium video ebooks magazines games and applications Both companies need content licensing deals with cloud infrastructure to make the content available across all connected devices Apple dominates content while Google leads in cloud infrastructure Apple will build on its content strengths while investing heavily in cloud services The recently announced iCloud service is the first move in this direction The service detaches iTunes content delivery from PC dependency helping to consolidate the product experience of iPhone iPad Mac and Apple TV Google owns the more robust cloud infrastructure but does not match Apple in content Google will invest in securing big content deals and strengthening content delivery services for Smartphones tablets and connected TV This includes partnerships with music video site Vevo wwwvevocom Google TV and the nascent Google Music httpmusicgooglecommusic and Google Movies Console game platforms Sony wwwsonycom Microsoft wwwmicrosoftcom Nintendo wwwnintendocom are still leaders in livingroom entertainment but on the defensive This is due to fragmented product experiences that are particularly weak on Smartphones and tablets While Microsoft and Sony will continue to close these gaps they won39t challenge the leadership of Apple and Google in mobile devicesA New Level of Location Integration Dr Bruce Krulwich Partner Grizzly AnalyticsOne trend worth noting is handsets using location to assist our daily routines Right now GPS is used mostly for applications like maps and navigation Currently we turn these apps on and off as needed Soon location will be deeply integrated into our regular activitiesThe tipping point will be Apple39s upcoming introduction of locationbased reminders in their iOS httpwwwapplecomiosios5 These locationbased reminders can notify you to pick up a prescription at the neighborhood drugstore as you near the store The iPhone httpwwwapplecomiphone might also remind you to buy flowers for your wife39s birthday on your way home from the officeBased on current research by handset manufacturers this is just the tip of the iceberg for location integration In the future we will be reminded to fill a prescription when passing ANY drugstore We will be reminded to buy the new John Grisham novel when passing a store that has it in stock The phone will automatically switch to vibration mode upon entering the conference room or lecture hall We will receive a wakeup ring five minutes before arriving at the appropriate train station The phone will provide directions to an inexpensive gas station when the car needs refilling The device will even remind you to phone your next appointment if heavy traffic is likely to cause a delay All of these benefits without draining the batteryMany of the tasks we currently do on our handsets such as todo items and calendar entries relate to location Why should consumers need a separate location app when our phones can use location within the builtin todo list and calendar A new level of location integration is coming soon to devices near youLevi Shapiro is a Partner at TMT Strategic Advisors a research and strategy firm focusing on the technology media and telecom sectors He can be reached at levitmtstratcom or via twitter levshapiroRead all Levi39s MediaBizBloggers commentaries at Unleavened MediaCheck us out on Facebook at MediaBizBloggerscomFollow our Twitter updates MediaBizBloggerMediaBizBloggers is an openthought leadership blog platform for media marketing and advertising professionals companies and organizations To contribute contact Jackmediadvisorygroupcom The opinions expressed in MediaBizBloggerscom are not those of Media Advisory Group its employees or other MediaBizBloggerscom contributors Media Advisory Group accepts no 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