Automotive

Oracle survey reveals people of different ages experience mobile differently

from Connected Planet Mar 22, 2011 1:51 PM,

The 35-to-54 age group shows the fastest rate of growth in terms of researching and transacting online

Oracle today released key findings from its report, “Mobile Trends: Consumer Views of Mobile Shopping and Mobile Service Providers.”

After talking to more than 1,000 mobile phone consumers in the United States, Oracle released information about how people today use mobile devices for shopping and commerce-related activities, as well as what they hope to do with mobile devices in the future.

In the study, it became apparent that consumers increasingly rely on their mobile devices to do comparisons and research before purchasing products or services. About 48% of consumers conceded they use their mobile devices to look up product ratings or to find promotions. One of the more surprising findings in the survey was that the 35-to-54 year old segment is the age group with the fastest rate of growth in terms of researching and transacting online. While the 18-to-34 segment still dominates for actual use, the usage in the 35-to-54 bracket nearly tripled.

For those older than 35, it was twice as likely they’d leverage a mobile device to research products and services than their younger brethren (growing from 19% to 36% for users aged 55 and older and 23% to 44% for those aged 35-54 from the previous year’s research). Of the younger respondents in the18-34 bracket, 60% said they use their mobile device to research products and services (up from 41 percent the previous year).

In addition, more than two times as many consumers aged 35 and older have made a purchase via a mobile phone since 2009, compared to a 74% increase for consumers aged 18-34.

“We found that the perception of the experience also varied in these two groups, as the younger demographic wants more self-service on the Web and more online access to information about their plans and accounts, while the older bracket prefers to learn about plans, devices and accounts directly from a customer service representative. While the younger people feel comfortable connecting via chat or click-to-call, the older people prefer to be able to talk to someone on the phone immediately,” said Kelly O’Neill,
product strategy director for Oracle-ATG.

What is also remarkable is that most carriers, according to O’Neill, fail to tailor their sites to accommodate those disparate preferences. “The younger generation is more likely to churn, so to fail to personalize or make things relevant to their desires means there is a higher chance of losing them to other competitors,” added O’Neill. She believes telecom providers have to continue to evolve to think more like retailers, which consumers increasingly want them to do. “Rather than compete with products and services alone, carriers have to embrace the idea that customers want their telecom providers to give them the same type of attention and personal experience they get in other industries,” said O’Neill.

That is particularly true as mobile technology continues to invite new business models for merchants and retailers seeking to partner with communications companies. “You cannot overstate the importance of streamlining mobile and retail services to enhance sales and the customer experience,” said Kelley, noting that the survey showed that mobile devices are enhancing the in-store shopping experience, with 28% percent of respondents admitting to using their mobile device for comparing products with competing brands, as well as visiting Web sites to acquire more product information, research product reviews and coupons.

Mobile Ad Spending, U.S. Online Metrics

Mobile commerce is a top 2011 priority for direct-to-consumer companies

Mobile commerce is the top new area of investment, the survey finds. 35% of companies say they have a mobile program in place, while 30% are in the early stages of implementation and 25% are investigating options and plan to have a live mobile program in 2011. Less than 5% reported no mobile initiatives planned in the next 12 months.

Mobile commerce is the top new area of investment, the survey finds. 35% of companies say they have a mobile program in place, while 30% are in the early stages of implementation and 25% are investigating options and plan to have a live mobile program in 2011. Less than 5% reported no mobile initiatives planned in the next 12 months.

Half of business-to-consumer companies struggle to understand when to integrate into their e-commerce platform additional systems for functions such as customer reviews or site search, the survey says. 45% say integrating technologies is difficult for technical teams managing a growing backlog of initiatives.

And improving and leveraging product content is a top 2011 priority identified in the survey. 44% of respondents say building out complete product content, including images, data, video, user guides and more, and using it across all channels is a priority this year.

Q4 2010 Mobile Video Ad Report

Rhythm releases metrics every quarter to help you evaluate the effectiveness of your mobile video ad campaigns and to learn best practices. The report for Q4 2010 covers over 535 million average monthly content views in the US only across iPhone, iPod Touch, iPad, Android and other mobile devices.

Key findings for Q4 2010 include:

  • Mobile video ads go mainstream: Over 70 Fortune 500 brands ran campaigns on Rhythm’s network in Q4 alone. Over 200 Fortune 500 brands ran in 2010.
  • Apps dominate mobile web for premium video: Video views per unique user are moer than five times higher in apps than on the mobile web.
  • Mobile video retention rate superior to online video:Viewer retention rate after 60 seconds was 81% on Rhythm’s network vs. 55% online.
  • Ad completion rates exceed online and TV: Completion rates for interactive pre-roll video ads remain high at 88%, exceeding online video and TV.
  • iPad CTRs highest: iPad CTRs for pre-roll video ads are higher vs. iPhone, iPod Touch and Android.
  • Action words drive high CTRs: CTRs are 67% higher on display ads that include written actionable words like “Tap to video.”
  • Auto & Telecom top two categories: Other categories in order for Q4 were CPG, Travel, Entertainment, Retail, CE, Finance/Insurance, Govt/Edu, Beer/Spirits/Wine.

Car Makers Add Apps to Their Dashboards

By IAN SHERR

Carmakers are taking apps for a spin.

Automakers from General Motors Co. to Hyundai Motor Co. are using the Consumer Electronics Show to announce plans that will transform dashboards into mini-computers running Internet-connected programs.

For example, Ford Motor Co. debuted an app that will allow owners of its new Focus electric car to schedule charging times from a smartphone. Toyota Motor Co. unveiled a program that lets motorists make reservations via booking site OpenTable.com.

The auto industry’s embrace of apps comes as carmakers look for new ways to differentiate their vehicles from the competition’s. “Internet-connected autos will be among the fastest-growing segments in four years,” said Gartner Inc. analyst Thilo Koslowski.

Mr. Koslowski forecasts more than half of all new premium vehicles in the U.S. will support apps by 2013 and mass market cars will reach that level in 2016.

Carmakers first started experimenting with apps about three years ago, when Ford announced its SYNC system. The technology allows drivers to use voice commands to control smartphones.

Now, the technology is advancing. Some new apps for cars will allow motorists to stream Internet radio, while others will let them update their Facebook pages from the driver’s seat.

At the show, Toyota demonstrated its new in-car system, dubbed Entune. A relative latecomer to apps, Toyota said the system will connect cars to the Internet using a smartphone. When connected, Entune allows the car to stream music from Pandora Inc., book seats through Movietickets.com or conduct Web searches with Microsoft Corp.’s Bing.com.

The current apps were all designed by Toyota partners. Jon Bucci, who runs Toyota’s technology initiatives, said the company will open the system to outside developers this year.

Ford is releasing a host of smartphone apps that allow car owners to keep closer tabs on how the vehicle is running. One in-house app, called Sync Destinations, allows drivers to enter their route in a smartphone and then beam it to the car, providing turn-by-turn directions. Another app, Sync AppLink, allows users to have their Twitter streams read to them. “It’s all about using the right technology and the right application for our customers,” said Ford Chief Executive Alan Mulally.

General Motors has expanded its onboard OnStar system, allowing car owners to access it via their iPhone and Android handsets. Nearly all of GM’s newest cars can send diagnostic information, such as when the oil should be changed.

OnStar is beginning to let motorists update their Facebook status by speaking commands directly to the car. The feature is integrated into OnStar’s system, which also offers directions and emergency services.

Currently, the OnStar system doesn’t accept apps written by third-party developers. But apps written by outside developers could be available later this year, according to two people familiar with company. GM is planning to create an app store for outside apps later this year, the two said.

Nielsen at Advertising Week: Fact Sheet and Video Presentations

For Advertising Week, The Nielsen Company provided a snapshot of ad spending in the U.S., including a comparison of ad dollars in 2009 vs. the first half of 2010. While some sectors like Automotive and Auto Insurance are up in 2010, the majority of ad categories are down relative to the same time period in 2009.

Ad Spending Overview

  • $117B was spent on all U.S. advertising in 2009. 57% of all ad spending in 2009 went into Television, making it the largest medium for advertisers. Print media earned approximately 28% of ad dollars, while Internet earned 7% of all ad dollars.
  • The top spending product category for national TV was Automotive with $3.4B spent in 2009. The most significant growth by any one category among the top 20 was mobile phones, with national TV spend growing almost 200% to $587M in 2009.
  • Ad dollars spent in primetime in national television account for about 50% of total TV ad dollars.
  • The 30-second commercial remains the television advertising standard in primetime, accounting for 54% of all commercials (2009). However, the number of 30-second commercials has decreased 5% in primetime, while the number of 15-second commercials has increased 6%.
  • For more, including ad effectiveness data, download Nielsen Advertising Fact Sheet.

Event Video

On Monday, Steve Hasker, President of Media Services, The Neislen Company, announced a “major step forward” in online advertising measurement, Nielsen Online Campaign Ratings.

Spanish Mobile Advertising Campaign For Audi Sees 50,000 Impressions In A Matter Of Days

A recent mobile advertising campaign for Audi’s new A1 model in Spain achieved impressive results in a matter of days using a rich media video ad unit recently introduced by TAPTAP Networks and GoldSpot Media — two leading mobile video solution providers in Spain.

The new format used in the Audi campaign is the result of a recent collaboration between the aforementioned companies, including interstitial video and video banners ads.  At the heart of the solution is a way to re-purpose TV commercials into mobile video campaigns for mobile apps and the mobile Web.  Both video solutions allow users to watch a commercial on their mobile device while loading at app startup or while navigating through apps.

The campaign in question was ran in Spain’s leading iPhone sports application AS.com, and engaged users with a full-screen video interstitial upon starting the app. The campaign quickly saw huge success, garnering more than 50,000 impressions in just a few days and achieving more than eight seconds of average viewing time per user.

“We’re extremely happy with the initial campaign results.  Many more top tier brands are interested in trying these new video formats in the short term,” said Alvaro del Castillo, CEO of TAPTAP Networks.  “Advertisers are looking for new ways to stand out in a fragmented media landscape and we’ve found that mobile video provides the best opportunity to generate great awareness and strong brand recognition with the mobile audience.”