Published on February 27, 2014
WHITE PAPER Mobile Changes Everything Enabling best practice Web experiences for today’s increasingly mobile world www.coremedia.com
WHITE PAPER MOBILE’S GROWTH BRINGS CHALLENGES AND OPPORTUNITIES Today more than a billion people — a seventh of the world’s population — are using their smart devices to support almost every aspect of their lives. We’re spending more of our time engaging with our mobile devices, downloading and using more and more apps, and expecting all the different organizations we engage with to allow us to do so over our chosen devices. With more than 1 billion connected devices shipped in 20121, analyst firm IDC sees continued growth in the use of intelligent mobile smartphones and tablets, with overall shipments passing 2.2 billion units by 2018. Recent growth has been driven particularly by a 78.4 percent year-on-year surge in tablet shipments in the last year alone. People are now spending a significant part of each day on their smartphones and tablets. According to Flurry Analytics2, U.S. consumers, on average, are on their devices for two hours and 38 minutes per day. They report that 80 percent of this time is spent inside apps and 20 percent on the mobile Web. What’s clear for businesses is that a growing proportion of their customers are increasingly using mobile as their primary device. This has significant implications for businesses and the Marketing function in particular as consumers increasingly demand the compelling content and context-enhanced online experiences that will keep them coming back for more. According to Forrester Research: “mobile is the visible manifestation of a much broader shift to systems of engagement.”3 This white paper examines the enormous growth and challenges mobile is presenting to businesses and discusses ways in which businesses can efficiently use content, context and digital intelligence to present their customers with compelling and unified mobile experiences. 2
Understanding the scope and scale of Mobile “We are committed to shaping the Networked Society — where everyone and everything will be connected in real time; creating the freedom, empowerment and opportunity to transform society. We believe affordable connectivity and internet access improves people’s lives and helps build a more sustainable planet and therefore we are excited to participate in the internet.org initiative.” Hans Vestberg President and CEO | Ericsson speaking about the mission of internet.org upon its launch Despite an uncertain economy, the global mobile market has continued to grow strongly. According to data from GSMA Wireless Intelligence and A.T. Kearney Analysis, the global market for mobile connectivity has grown by 13.7 percent annually since 2008, with 3.2 billion people worldwide now having a mobile phone. Asia Pacific now accounts for more than half of the world’s mobile subscribers4, generating 57 percent of all new connections between 2008 and 2012. In China there are now more than 520 million active mobile Internet users5 — that’s more than the entire population of the European Union. Of the world’s top 10 mobile markets, only one European country — Germany — makes the list. It’s predicted that Africa and the Middle East will power the next phase of mobile growth, overtaking Europe as the second largest region for mobile subscribers by 2016. These figures show that mobile is more than just another technology trend — instead it’s proving a massive economic, social and political driver — particularly in regions such as Africa where mobile often represents the only way of accessing online services. Already mobile subscriptions far exceed those of fixed lines by a factor of three, according to mobiThinking estimates based on International Telecommunication Union figures. However, this varies dramatically between developed and developing nations. In Africa, for example, there are 30 times more mobile subscriptions than fixed. This mobile focus is likely to accelerate, particularly as initiatives such as internet.org6 — lead by organizations such as Facebook, Ericsson, Nokia, Qualcomm and Samsung — look for new ways to bring Internet access to the world’s next 5 billion users. These figures show that perhaps the only consistent factor exhibited by mobile is its overall global growth. For businesses looking to implement a homogeneous strategy when addressing mobile opportunities on a global basis, there’s a clear message: it’s not going to be that simple. Take smartphones. Although there are more than 3 billion mobile phones worldwide, it’s only in 2013 that Gartner was projecting that worldwide smartphone sales will approach the one billion mark7, accounting for more than 50 percent of the global market. Marketing operations that only invest in smartphone channels, are going to fall short in a world where two out of three mobile phones aren’t smart at all. While traditional feature phones and mobile PCs still outsold smartphones and tablet devices according to Canalys figures from February 2013, that’s changing quickly, with 2012-16 smartphone growth estimated at 17.9 percent to 35.3 percent annually over the next four years. The advent of smart connected devices — coupled with the widespread deployment of mobile broadband networks — is leading to a significant change in the provision and usage of mobile services. 3
WHITE PAPER Living in a mobile world Clearly the last decade has seen enormous growth in mobile usage, with mobile network providers, handset manufacturers, customer service organizations and software application developers all combining to confirm the place of mobile devices at the heart of everyday life. Progress is intense, with smartphones and tablets driving new ways for consumers to use their mobile devices. Whether it’s listening to music, taking pictures, watching TV, paying bills, finding an exact location, booking a movie ticket or simply getting online, as consumers we typically turn to our smart mobile devices first. An entire mobile ecosystem has emerged to help businesses integrate mobile capabilities into their own sectors, with smart devices now an active component in markets such as education, automotive, media, health, entertainment and utilities to name just a few. As new technical enhancements become available, this mobile ecosystem is proving quick to incorporate these into their propositions, with significant commercial advantages available to those businesses that can deliver compelling mobile propositions for customers. For businesses looking to target customers, the sheer scale of mobile is daunting. For decades TV has provided an ideal, direct medium for reaching out to target customers. However the proportion of potential customers watching traditional network TV is falling, and — according to Nielsen — nearly half of smartphone users (46 percent) and tablet owners (43 percent) already use their devices as second screens while watching TV each day8. Of mobile Internet subscribers, 76 percent use a device while watching TV, and 95 percent of tablet shoppers and 72 percent of smartphone shoppers use their devices to make purchases from home. These numbers are only likely to keep on growing, for example: JJ ccording to a U.S. Mobile Traffic Report, Web visits coming from mobile devices A increased 73 percent over the last year — and 244 percent since 2011 — with mobile traffic from iPhones spiking substantially9 JJ ore than a quarter of mobile shoppers said they make purchases more frequently M using their mobile devices than they do using PCs10 JJ of all local searches are performed on mobile devices Half JJ India, Mobile Internet traffic overtook desktop Internet usage in May 2012 In JJ the U.S., 78 percent of adults are now using smart mobile devices; 79 percent in I n Australia; and 92 percent in Singapore, according to Flurry JJ Over a third of Facebook’s 600 million plus daily user base uses Facebook Mobile JJ ccording to IDC, the worldwide smart connected device market exceeded 1 billion A shipments in 201211 JJ also predicts that tablet shipments will surpass desktop PCs in 2013 and portable I DC PCs in 2014 4
Technology is constantly evolving and advancing Increasing consumer dependence on mobiles and smartphones has led to strong demand for the latest generation smart mobile devices. Apple’s iPhone 5 handset, for example, racked up two million units in a single day when launched in September 2012, with the company selling out its U.S. release-day stock in under an hour. While developed markets show continued strong demand for the latest mobile smartphones and tablets, the massive success of the Android platform shows that there’s an increasing global requirement for a platform that allows devices to be targeted at a broader range of consumer and network provider price points. The coming year will also see a drive toward lower cost, sub $200 smartphones aimed at prepaid operators in both developed and undeveloped markets. ABI Research estimates these will account for 44 percent of all smartphones by 201812. Each new technology refresh delivers additional hardware functionality and performance for consumers, with faster processors and memory, increased storage, removable media, higher resolution cameras and better quality speakers all proving popular. As 4G mobile networks increase their footprint, mobile users will benefit from connectivity that was previously the preserve of home broadband. Network providers are also tempting the market with promises of a new class of pervasive user connectivity that will distinguish their 5G offerings. This next generation of wireless technology will allow users to simultaneously connect to multiple access technologies and seamlessly move between them. Future developments will also include such things as flexible screens, console quality gaming and new levels of security to support increased levels of mobile commerce, mobile payments and personal wallet functionality. Not surprisingly, mobile infrastructure stakeholders including OEMs, OS players and dedicated manufacturers are all driving technical innovations in order to differentiate their products. Content providers are also working to harness the power of these innovations to deliver additional value for customers. Despite the fact that devices are getting smarter, networks are getting faster and functionality is accelerating, it’s important for businesses not to become too obsessed about the technology. While 32GB of memory is no doubt better than 16GB, and a 14-megapixel camera takes better pictures than an 8-megapixel, once a user has chosen their device they’re more interested in what the device can do than its technical specification. What makes the real difference is the excellence of the overall mobile experience provided, and that embraces hardware/network performance and the kind of compelling content and engagement that can transform everyday activities. Central to this is the need to delivery experiences that are inherently suited for consumers in motion. 5
WHITE PAPER Supporting consumers in motion — tracking the customer journey Rather than simply focus on delivering information to a mobile customer, businesses need to think more deeply about how that content is going to be used. Most consumers have evolved their typical mobile usage alongside technology development. Starting off with calls and SMS, people now turn to their devices for a broad range of activities, and see them as an integral part of their daily lives. Smartphones particularly become an extension of the individual user, nearly always available and the only technology that people immediately think of when determining their next action. That’s why so many users make an emotional and intellectual connection with their devices. Smart devices can quickly become an integral part of our daily lives—and an ideal channel for businesses wanting to develop stronger online and offline relationships. Given users’ increased propensity to use smart mobile devices instead of traditional desktop and notebook PCs, it’s no surprise that more and more consumers are using their smartphones and tablets to engage with organizations However, while it’s essential for sales and marketing operations to ensure they can interact with all the key mobile devices, it’s even more important for them to recognize that longer-term, meaningful mobile customer engagement demands a far more intelligent and joined-up approach. Perhaps the key issue for businesses to absorb is that mobile engagement isn’t really a technical issue. Of course there are huge technical challenges and complexities to address in order to engage mobile customers successfully, but the most critical stage comes as businesses really start to look at the mobile experience from the customer’s perspective. Central to this is learning what actually drives customer behavior. So rather than simply focus on delivering information to a mobile customer, businesses need to think more deeply about how that content is going to be used — and how it needs to evolve over time. It helps to look at mobile engagement as “Content in Context” — information and activity that need to develop and change according to each customer’s specific situation at any given time. This takes businesses beyond basic content delivery to a more engaged process where priorities need to be balanced, content adapted and the customer listened to. What works with one customer won’t necessarily work with another. What works for an individual on Monday won’t necessarily be the case on Saturday, or if they’re in a different location, or using a different device. Taking the step towards addressing mobile consumers helps businesses to apply a far greater degree of context to their mobile engagement. Where exactly is the customer on their journey? What level of engagement have they already had with your business? Are they using mobile Web or a native app? Where are they? Are they on the move? Are they at home? It’s only when you start to establish answers to these questions that businesses can engage successfully. Some of these answers can be collected as part of data-driven marketing activities, others will require more intelligent context-gathering. 6
Research already suggests that there’s considerable differentiation between the type of mobile device being used and likely outcomes. Nielsen, for example, suggests that U.S. mobile shoppers use their devices predominantly in the home, often while watching TV. The research firm found that 59 percent of tablet owners actively engage in product research, and that they are 14 percent more likely to purchase physical items than smartphone shoppers. Nielsen also found that smartphone users might use their devices at home to read reviews and social media feedback, but will also use them to locate a physical store, check prices when at stores, and to find the best prices. A growing number will also turn to their devices to redeem mobile coupons and pay. When they get home, customers might pick up their tablets to track and share their shopping experience on social media or a reviews site, or they will track their online orders via their devices. What mobile really means for CMOs Perhaps the most important message here for Chief Marketing Officers is that businesses really need to think about the mobile experience they offer — but from the user’s perspective. Customer satisfaction and the provision of a quality experience need to be the standard for mobile customers at every stage of their journey. Mobile Customers 80% will go elsewhere if sites are fully optimized for mobile 51.6% will delete and forget a broken app 74% will wait only 5 seconds for a Web page to load on their mobile device 46% will not return to a mobile site that is not working Having a viable mobile strategy along with channels that successfully serve mobile customers is critical — and an investment that needs to be made as soon as possible. The rewards for successful mobile engagement will be considerable, but there is also a significant downside should mobile strategies go wrong. Chief Marketing Officers need to recognize the finely balanced nature of mobile customer loyalty. Successfully targeting mobile customers at exactly the right stage of their journey isn’t easy, and earning their loyalty requires consistently excellent delivery across every touchpoint. Mobile customers, however, are difficult to please — expecting unified, consistent and relevant experiences via their mobile devices. Four out of five will look elsewhere if sites aren’t fully optimized for mobile. 51.6 percent will delete and forget a broken app, 74 percent of customers are only prepared to wait five seconds for a Web page to load on their mobile device before abandoning a site, while — according to Nielsen — 46 percent will not bother to return to a mobile site that isn’t working. Despite these high levels of intolerance, it’s hardly surprising that businesses are still determined to make a success of their mobile strategies. According to research from Mobile Path to Purchase, 46 percent of respondents said they relied exclusively on their smartphones or tablets when conducting online research. It’s this user commitment to mobiles that is so potentially attractive for businesses. Disturbingly, Nielsen also found that 39 percent of businesses actually do nothing to make their site mobile-ready. 7
WHITE PAPER That’s why Chief Marketing Officers need to take the lead in helping mobile customers benefit at every stage of the purchasing journey — whether through on-the-go research, in-store mobile usage, the presentation of opportunities based on specific user contexts, and a growing acceptance of mobile payment capabilities. CMOs need to play a stronger role in orchestrating the many different business functions — Marketing, Sales, Product, Customer Care, Support — that combine to deliver these kind of joined-up customer experiences. Mobile Web and native app propositions need to be carefully aligned with broader sales and customer service strategies if they are to succeed, with constant re-adjustment and refinement in order to deepen customer relationships and drive lasting bottom-line impact. By knowing exactly how and when customers engage via their mobile devices, businesses have an ideal opportunity to push out relevant content at the very moment consumers need that information. Marketing operations will place an increased emphasis on approaches such as Big Data and powerful Web analytics technologies, and will be in a position to help identify critical moments on the customer journey, and track what’s going on before, during and after these interactions. How does Mobile impact Web Content Management? Responding to the rapidly changing world of the mobile is an enormous challenge, even for the smartest and most nimble CMOs. The good news is that the key technologies are now in place for CMOs to really get behind mobile engagement initiatives. An effective Web Content Management platform will have a critical role to play in helping to achieve lasting success. However, businesses first need to understand just what it is they’re looking to achieve from their Mobile strategy. How, for example, are they going to balance conflicting demands, such as the need to reduce costs, increase compliance and ensure enterprise levels of security, while simultaneously growing transaction volumes, mining customer data, and delivering great services and choice to consumers? While the shift towards “mobile first” strategies has helped develop the Mobile WCM debate, the reality is that the concept was still based on the idea that mobile Web is only a subset of the traditional web. However we now live in a post-PC world and, with mobile devices overtaking PC as the Web access platform of choice, the mobile Web is quickly becoming the only Web. This clearly requires new content strategies from marketers, and a more intelligent contribution from Web Content Management vendors. Because consumers are increasingly turning to their mobile devices to conduct commerce, businesses need to find ways to create content rich and context-aware experience for those using these devices. The content creation and augmentation process will need to support multiple channels seamlessly, accommodate a broad range of content contributors and sources, while also adapting to an ever increasing range of devices, platforms and form factors. It’s not just about the mobile channel, but also about having a consistent management process across every channel, from mobile to tablet to PC. 8
There’s increasing evidence that customers are doing their research via mobile and making their buying decisions well before they even reach a retail store. So it’s even more important that businesses deploy tactics that help them find the consumer at exactly the right point in their customer journey. This demands a next generation approach to Web Content Management — one that moves beyond the traditional one-size-fits-all interface. Such an approach is simply not possible with a WCM system that was designed primarily to delivery static Web pages. WCM solutions that are built around “pages” and rigid site structures rather than information and dynamic experiences are a straightjacket for companies that are seeking to enhance their brand and build revenue by delivering engaging experiences to mobile consumers. Companies need to manage content assets and customer experiences across any current or future touchpoint — not just Web pages. Effective WCM solutions that empower a robust mobile strategy must: JJook beyond flexible layout and design to support the omnichannel customer experience L across all touchpoints JJ ove from the traditional page-based paradigm to an information and experience based M paradigm JJ ecognize that successful mobile content strategies must support both native apps and R mobile Web deployment options JJeverage mobile Web technologies such as HTML5 to deliver enhanced functionality, L ensure responsiveness, flexibility and speed JJynchronize content publishing across multiple mobile channels while retaining instant S time-to-web JJ educe the workload, resources and costs of developing and managing multiple mobile R touchpoints JJrovide content that is personal, relevant, and contextually-aware P JJeverage the benefits of ubiquitous mobile accessibility with integrated social media L and cloud applications — empowering mobile social experiences at every stage of the customer journey JJrovide a platform for continued mobile innovation through video, machine to machine P (M2M) mobile communications and other connectivity options 9
WHITE PAPER Harnessing the power of Mobile to work with CoreMedia Manual Ordering Page-based Construction CONTENT ASSETS PAGE DELIVERY CMS CRM PIM ERP Context Information-based Dynamic Assembly Experience DIVERSE CONTENT ECOSYSTEM Today’s contextual cross-channel experiences render traditional page-based approaches obsolete. A paradigm shift to information-based approaches is essential to address these new realities. MULTI-TOUCHPOINT DELIVERY AND DIALOG CoreMedia enables the publication of content to any mobile device — whether smartphone, featurephone, tablet or netbook — in any format and with full editorial control. CoreMedia’s Web Content Management platform automates the reuse and delivery of content to browser-based mobile applications, incorporates Responsive Web Design functionality and supports native mobile applications as well locally installed native mobile applications. CoreMedia makes is easy to deliver engaging mobile content to any device because object-based content handling is part of the product’s underlying DNA — from storage and management — to editing, rendering, and delivery. CoreMedia replaces the “page-oriented” approach — that requires each use, channel, and device to be created, managed and delivered separately — with an integrated and more dynamic “information-based” approach. Rather than having to rewrite and manually replicate each piece of content for different pages or specific device templates, CoreMedia allows business users to create it once and deliver it many times, saving time and effort. Nobody really knows how mobile technology will evolve. With its flexible CoreMedia 7 Web Content Management solution, CoreMedia prepares businesses for any mobile strategy, offering the broadest range of mobile capabilities and supporting: JJ oreMedia Studio — CoreMedia 7 provides an information-based UI built around true C content reuse, not replication JJ eb Applications — with the ability to optimize content to any device, anywhere, W CoreMedia stores content in a rich yet neutral format, automatically delivering it in the most appropriate format for any device with a Web browser. JJ esponsive Design — CoreMedia 7 instantly and seamlessly adapts Web properties to R any device resolution or layout requirements, providing flexible images and fluid page grids, full support for HTML5, and Instant Responsive Previews for an optimum editorial experience and more efficient re-use. JJ obile Previews — CoreMedia 7 provides instantly scalable, contextual responsive M previews as well as the ability to preview content objects and experiences on any Webenabled external device. JJ ative Applications — CoreMedia 7 also supports the creation, publication and seamN less reuse of content to mobile native apps. Through a dedicated Native Apps Connector, businesses can incorporate content elements and data into existing native mobile application frameworks. 10
Conclusion It may have taken some 15 years for mobile penetration to reach almost half the world’s population, but during that time society has adjusted quickly to the reality of the mobile world. It’s probably fair to say that for many people mobile devices now act as the hub for their lives, with younger demographics particularly now finding it difficult to imagine life in the pre-mobile age. The combination of rapidly-improving connectivity, access to data stored in the cloud, and increasingly ubiquitous usage represents a powerful transformational force — one that is already helping to redefine sectors as retail, healthcare, media, politics and many others. With numbers of users that are already many orders of magnitude bigger that those involved in the dotcom boom, mobile is proving a global game-changer. CMOs who don’t meet the mobile challenge head on will quickly find themselves disadvantaged in terms of their ability to deliver a successful sales, marketing and customer service experience online. Conversely, those who identify the right mobile strategies will be in a position to carefully analyze individual customer journeys, effectively pre-empting the kind of issues that might previously have driven mobile users away from specific online properties. In order to master this challenge, CMOs must be prepared to shift from a page-based paradigm to an information-based approach that enables business users to optimize the way content is accessed, interpreted, and represented on any channel or device. CoreMedia helps CMOs address the mobile challenge by providing an extensible, objectoriented content management platform — paired with a single, advanced informationbased user interface — and enhanced by a variety of deeply integrated modules for social, contextual, and e-commerce experiences. 1 IDC Smart Connected Device Tracker, March 2013. 2 Flurry Five Year Repor, “It’s an app world,” April 2013. 3 “Great Mobile Experiences are Built on Systems of Engagement.” Forrester Research, November 2012. 4 mobiThinking, Global Mobile Statistics, May 2013. 5 Analysys Research. Prediction on China’s Mobile Internet Market, May 2013. 6 Technology leaders launch partnership to make Internet access available to all. Facebook, August 2013. 7 “Gartner says worldwide mobile phone sales declined 1.7% in 2012,” Gartner, February 2013. 8 “How second screens are transforming TV viewing,” Nielsen, June 2013. 9 Walker Sands Quarterly Mobile Traffic Report, August 14, 2013. 10 “Who is the Mobile Shopper?” Nielsen, February 2013. 11 IDC Smart Connected Device Tracker, March 2013. 12 “Sub-$200 smartphone shipments to exceed 750 million by 2018,” ABI Research, August 2013. 11
Germany, Switzerland, Austria CoreMedia AG Ludwig-Erhard-Straße 18 20459 Hamburg Germany Tel + 49 .40.32 55 87 .0 The Americas CoreMedia Corporation 118 Second Street, 5th Floor San Francisco CA 94105 USA Tel + 1 .415 .371 .0400 CoreMedia Corporation 1001 N. 19th Street, Suite 1200 Arlington VA 22209 USA Tel + 1 .703 .945 .1079 Europe, Middle East and Africa CoreMedia Ltd. 90 Long Acre Covent Garden London WC2E 9RZ United Kingdom Tel + 44 .207 .849 .3317 Asia Pacific CoreMedia Asia Pacific Pte. Ltd. 25 International Business Park #0–106 German Centre Singapore 609916 Tel + 65 .6562 .8866 For more information, please visit our website: www.coremedia.com Email: email@example.com Copyright 2013. CoreMedia AG. All rights reserved. 1013-WP-EN-MOB001
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