THE STATE OF THE MOBILE MARKET - What end-users want from mobile


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What end-users want from mobile
Lorenz Jakober
Product Marketing Manager – Mobile APM, Compuware

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  • 44% of total searches for last minute gifts and store locator terms will be from mobile devices this holiday
  • Nearly 30% of’s web traffic comes from the travel agency’s iPhone and Android Cruise Finder mobile apps. And iCruise expects m-commerce to grow, says UfTukel, co-president.“Mobile commerce is one the most important aspects of our multichannel retail strategy,” Tukel says. “More and more vacation planning is occurring away from the personal computer.”
  • In late 2010 global smartphones sales outpaced PC sales for the first time - 87% increase YoYThe reality is that in a global population with more than 5 billion subscriptions, smartphones are still niche. However, in the US and some European countries, smartphone penetration is racing past 35-45%; smartphones are going mainstream, albeit at a varying pace across the globe.And todays smartphones are tomorrows feature phones.
  • Picture Source - Sign Source - Jay Shells – artist working in Manhattan
  • June 01, 2011 - July 01, 201175% of the top 87 US mobile website home page response times are more than 5 seconds across verticals Some verticals have a better culture of performance and more lightweight mobile home pages (sign-in vs. content) – Banking (33% more than 5 seconds) – News (82% more than 5 seconds)
  • Deloitte Study
  • On average 1.5 seconds faster
  • Correlation between mobile maturity and importance of mobile as business driver to whether mobile site delivered/managed by internal team or outsourced.3rd party companies you need to be aware of … Mobile website and application development and delivery:Banking – Firethorn, mFoundry, ClairMail, Antenna/Vaultus, etc.Retail – Usablenet, Digby, Branding Brand, NetBiscuits, Kony Solutions, etc.Media - StarcutMediaone, Crisp Wireless, Verve Wireless, Rosetta Marketing, etc, etc.Enterprise – Antenna/Vaultus/Volantis, Apperian, etc.
  • 4G dongle and achieved average downlink data rates of 23.6Mb/s uplink, the average throughput was 15.2Mb/s and latency was a bit of an issue, ranging from between 40 and 49 milliseconds
  • With every un-optimized link you are perpetuation a negative impression of your brand – and the mobile web.
  • Focus on providing value leveraging mobile’s unique features – gps, accelerometer, compass, camera, small screens, only what is important – don’t dumb it down for mobile – focus on what your customers want.
  • THE STATE OF THE MOBILE MARKET - What end-users want from mobile

    1. 1. THE STATE OF THE MOBILE MARKETWhat end-users want from mobileLorenz JakoberProduct Marketing Manager – Mobile APM, Compuware
    2. 2. The Year Of Mobile…
    3. 3. Are Organizations Taking Mobile Seriously?• 90% of the top 30 US banks have a mobile initiative• 87% of the top 30 US retailers have a mobile initiative Source: Gomez Research
    4. 4. Mobile Web Usage Is Growing Fast • According to IDC in 3 years more US Internet users will access the Web through mobile devices than through PCs • Google has seen US mobile queries grow by 4x in past yearSource:; Internal Google Data 2010;
    5. 5. Mobile Web Usage Is Growing Fast HauteLook (US Retailer) projects 25%-30% of its online traffic will come from iPhone and iPad users by the end of 2011
    6. 6. Mobile App Usage Is Growing Fast • Apple passed 15 billion app downloads within 3 years – Took 6 years and 10 months to pass 15 billion song downloadsSource:
    7. 7. Mobile Site And App Revenue Growing Fast • eBay sales closing on mobile devices – $600 million in 2009 – $2 billion in 2010 – $4 billion in 2011 (expected) • “In the last twelve months customers around the world ordered more than $1 billion worth of products from Amazon using a mobile device.” – Jeff Bezos, CEO Amazon • Apple paid out $2.5 billion to third- party app developers – up from $1.5 billion a year ago • Marriott Hotels is averaging mobile sales of $6 million per month in 2010 – up 100% from 2009
    8. 8. Smartphones Driving Mobile Web & App Growth % Of Adult Cellphone Owners Who Downloaded An App / Accessed The Web Downloaded an app Accessed the internet 4% Featurephone Owners 15% 69% Smartphone Owners 84% 0% 20% 40% 60% 80% 100%Source: Pew Research Centers Internet and American Life Project , May 2011
    9. 9. Smartphones Are Going Mainstream • According to Google by the end of 2011 over half of all Americans will have a smartphone End-users are replacing feature phones with smartphonesSource: Google - Are You Mobile Ready? Webinar - May 2011;
    10. 10. Smartphones Have Redefined Mobile End-Users’Experience Expectations• Mobile users expect rich, engaging mobile website and application end-user experiences
    11. 11. Mobile Context Shapes Mobile End-Users’Experience Expectations• Speed matters more in mobile context – Waiting for the bus, checking user reviews/prices/bank balance in a store, updating Facebook status etc.
    12. 12. End-Users’ Mobile Web Performance Expectations Are Increasing Percentage of mobile web users who expect websites to load as quickly, almost as quickly or faster on their mobile phone compared to their home PC 80 70 60 50 Percent 40 71% 30 58% 20 10 0 2009 2011Source: 2009 & 2011 Gomez/Compuware Equation Research Study
    13. 13. End-Users’ Mobile Web Performance Expectations Are Often Not Met 89% of US mobile web users expect a website to load on their mobile phone in 5 seconds or less Gomez Mobile Web Home Page Benchmark Response Times Across Verticals 18Response Time (seconds) 16 14 12 10 8.633 8.275 8 7.286 6.593 6 5.054 4 4.227 2 End-Users’ Expectations 0 US Banking HP US Insurance US News HP – US Sports HP – US Retail HP – US Travel HP – – AT&T/iPhone HP – AT&T/iPhone AT&T/iPhone AT&T/iPhone AT&T/iPhone AT&T/iPhoneSource: 2011 Gomez/Compuware Equation Research Study and Gomez Mobile Benchmarks, May 1 - June 1 2011
    14. 14. End-Users’ Mobile Experience Expectations AreOften Not Met 57% of mobile web users had a problem in the past year when accessing a website on their phone Social media allows users to voice & record their frustration in real-time, negatively impacting revenue and brand equity
    15. 15. What’s The Impact Of Mobile Performance Issues On Your Business? 47% of mobile web users had a problem in the past year when accessing an app on their phone 80% of branded iPhone, Android and Blackberry apps fail to achieve 1000 downloadsSource:
    16. 16. Mobile Service Performance Impacts Business Results Abandonment Rate Across 200+ Web Sites / 177+ Million Page 30 Abandonment Rate - All Browsers 25Abandonment Rate (%) Abandonment Rate 20 - iPhone Safari 15 Slower pages = higher abandonment • Reduces revenue 10 • Increases costs • Damages brand 5 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Page Load Time (sec.)Source: Gomez real user monitoring
    17. 17. “When we looked at how faster ads on mobiledevices affected interaction rates, we discovered that click-through rates increased by 12% -- a substantial difference!” Richard Rabbat, Product Manager, Google/DoubleClick
    18. 18. “This link between increased usage and a fasteruser experience - be it search or mobile Gmail -reinforces something we at Google have known for a long time: fast is better than slow.” Robert Hamilton, Product Manager, Google Mobile Team
    19. 19. A mobile site or application that is slow, orworse malfunctioning, negatively impactsrevenue and damages brand equity
    20. 20. How Do Organizations Deliver Mobile Sites/Apps? • Vast number of organizations outsource mobile website and application development and delivery Top 20 US Mobile Commerce Sites Outsourced vs. In-House 45% 55% Third Party Powered Mobile Site In-House/UndefinedSource: Gomez Research
    21. 21. Delivering High Quality, Fast Mobile Websites And Applications Is Difficult • Device, network, usability and complexity challenges Different Networks Offer Different Browsers Offer Different Experiences Different Experiences Cable Wifi 3G Cable Wifi 3G 30 160 140 25 120 20 100Mbps 15 80 ms 60 10 40 5 20 0 0 Download Upload Latency Mbps Mbps msSource: Gomez Research
    22. 22. Solution - Adopt Your End-Users Point Of View The Application Delivery Chain Cloud Customers Private Public Browsers Local Data Center ISP 3rd Party/ Virtual/Physical Environment Cloud Services DB App Web LoadMainframe Servers Servers Servers Balancers Major ISP Customer/end-user point of view Storage Network Content Delivery Networks Web Mobile WAN Services Components Optimization Mobile Carrier Devices Employees Employees
    23. 23. Adopt Your End-Users’ Point Of View - Discovery• Does the team responsible for your mobile websites / applications focus on the end-user experience? Ensure your customers can access your mobile content
    24. 24. Adopt Your End-Users’ Point Of View - Value • Can your mobile end-users easily achieve their goals and does your mobile website/application create/add value?Leverage mobile’s unique capabilities to improve end-users’ experiences Source:
    25. 25. Adopt Your End-Users’ Point Of View - Delivery• Does the team responsible for your mobile website / applications keep performance in mind? Major US retailer trumpets the launch of a new mobile site to meet rising customer expectations New mobile website does not follow mobile performance optimization best practices resulting in 2x mobile response time