The iPhone 3G: Beyond The Hype, A Catalyst For the Mobile Marketplace - MediaBizBuzz for June 16

It39s easy to view last week39s muchawaited and endlessly ballyhooed release of the second generation iPhone as simply a PR triumph But that would be a mistake By incorporating 3G technology and GPS and lowering the purchase price by 50 Apple has radically altered the landscape of the mobile marketplace The timing is impeccable It coincides with last week39s Mobile Marketing Forum MMA mostly bullish Q2 white papers from a halfdozen research firms the coming battle between WiMax and LTE camps Brands are beginning to experiment on mobile spurred on recent partnership announcements between marketers carriers manufacturers and content providers of any and all combinations This will be the year then we find out whether or not the mobile phone is the Third ScreenIPhone All the TimeCoverage of the iPhone 3G was ubiquitous CNet did a nice roundup of the week39s festivities at Apple39s Worldwide Developer Conference reminding us that it wasn39t just about Jobs39 Monday morning tour de force Out of the gate there were many critics chirping over Apple39s decision to accept a phone subsidies The New York Times quoted Sanford C Bernstein analyst Craig Moffett as believing that it was a step back for Open Networks Ostensibly the Economist agreed PaidContent39s Tricia Duryee interviewed two senior Apple execs Bob Borchers and Chris Saito who credited the iPhone39s success to an interdisciplinary approach merging hardware software and services Our Shelly Palmer contrasted Apple39s back to the future model with Google39s Android platform due out Q4 While Palmer concludes that it was a necessary move to ensure mass adoption of the smartphone Slate39s Tim Wu believes it augers the return of Ma Bell For its part CNet reasons that it39s a first step away from carrier exclusivity BusinessWeek found the offering a boon to both Apple39s marketshare and to carriers Even Nokia a direct competitor with 45 of the world39s smartphone market was savvy enough to recognize that to paraphrase quota rising tide lifts all mobile manufacturersquot Format Wars ReduxFollowing the FCC39s 700 MHz wireless auction both Verizon and ATampampT emerged winners with blocs of wireless spectrum Clearwire39s WiMax initiative attracted more than 32B of investment from the likes of Google Intel Nortel Sprint and Comcast Recently Nortel pulled away from the effort to instead pursue the competing LongTerm Evolution LTE solutionbased 4G network Last Thursday quotNew Clearwirequot was undeterred at its presentation projecting 308M subscribers by 2017 Related Verizon39s recent 28B acquisition of Alltel both of which are focusing on LTE which it expects to make commercially viable by early 2010 The wireless industry has been called a quotposter child for competitionquot are those days behind it Or will we have a replay of HDDVD vs Bluray Survey SaysThere39s no shortage of data on mobile Harris Interactive Nielsen Mobile Gartner eMarketer Motricity Research Analysis of Media RAM and Jupiter Research all have findings to share At the Mobile Marketing Forum last week JumpTap shared the study it commissioned with RAM which found that mobile had stellar results in brand recognition recall and purchase rates Gartner gauges the worldwide mobile advertising marketplace to be 27B up from last year39s 17B above all it points to usability and relevance as the two main drivers for growth EMarketer looks at the global ad spend and puts a figure of 17B on it with most of the growth forecast across the AsiaPacific Nielsen Mobile39s biannual Mobile Advertising Report looked at the behavior of 22000 mobile users during Q4 2007 with the stark finding that only 10 of users thought mobile advertising acceptable But not so fast while Harris Interactive doesn39t dispute this metric it makes lemonade The research firm touts the personal relationship consumers have with their phones noting that despite the economic downturn and the fact that a sizable percentage of consumers say they39ll cut back on tech purchases that 41 will press on where cell phones are concerned Harris finds that consumers are willing to accept messages as long as they are properly incentivized Motricity39s takeaways presented at the MMA included the findings that content providers considered targeting and demographics most crucial to campaigns while wireless carriers believed that personalization and customization was the key to success While marketers admitted that their agencies spent less than 2 on mobile marketing initiatives one third of the same group pegged the ad spend increase for mobile at 25 in the next year Consistent with Harris Interactive39s findings UKbased Mobixell Networks an adsupported mobile network found that 183539s consume 56 of all mobile media content Brand InnovatorsIt39s notable that it took a pair of predators two large cats to validate the mobile platform Puma has just launched quotTogether Everywherequot to support the Union of European Football Association39s Euro 2008 games Downloaded ringtones will sound when one39s team scores up to ten soccer fans can chat live during a match Luxury automaker Jaguar recently ran a campaign with Yahoo Mobile to promote its XF sedan in conjunction with the Los Angeles Auto Show targeting males 3553 with household incomes over 150000 Jaguar placed banner ads on Yahoo pages which served 20 million unique monthly visitors generating over seven million brand impressions These advertisers have come to appreciate the flexibility that a mobile campaign can often the ability to jump in and out of a campaign with a lifecycle of as little as one weekend Yahoo Mobile has itself worked with over two dozen brands in addition to Jaguar such as American Airlines Wachovia VH1 Paramount and Delta It has also recently partnered with Coupons Inc supporting its transition from the world39s leading provider of printable coupon marketing onto the mobile platform Mobile has played a role in the release of Madonna39s new release Hard Candy which came bundled with SonyEricsson phones Screenvision in partnership with Verizon polled theatergoers on their music preferences prior to a screening The Nokia Advertising Alliance was launched last week to support campaigns for brands using cuttingedge technology from locationbased targeting clicktocall coupons and basic banner ads Current members of the Alliance include imovo Mobile Acuity Mobiqa and uLocate A mockup of Nokia39s response to the iPhone codenamed quotThe Tubequot is pictured above During Steve Jobs39 lengthy presentation last Monday he wielded some stats that should have had everyone stand up and take notice 98 of iPhone owners use the mobile Web 94 use email 80 use 10 or more features And that39s iPhone 10 Apple39s launch of an app market for its 3G phone represents a forwardlooking initiative as well as a cash cow Piper Jaffray thinks it could reach 12B in revenues by 2009 As we go forward the mobile industry holds promise with the caveat that there are variables aplenty contesting its ultimate success As the FCC39s Kevin Martin is considering a tighter rein on Early Termination Fees ETF will consumers continue to accept the notion of a walled garden Or will they push back at even such an aesthetic and usable icon as they have in demanding that they take their phone numbers from carrier to carrier In the face of this will Google39s Open Handset Alliance gain traction Next week paidContent will explore these and other pending questions at a June 26 panel entitled quotMobile Advertising With 4G On The Wayquot at Seattle39s W Hotel Speakers will include folks from Clearwire Yahoo Mobile Advertising MSNBCcom and Alltel Let us know what you hear

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The iPhone 3G: Beyond The Hype, A Catalyst For the Mobile Marketplace - MediaBizBuzz for June 16

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