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

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THE STATE OF THE MOBILE MARKET
What end-users want from mobile
Lorenz Jakober
Product Marketing Manager – Mobile APM, Compuware

Published in: Technology, Business
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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: http://internet2go.net; Internal Google Data 2010; googlemobileads.blogspot.com/2011/09/holiday-retail-mobile-insights.html
  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: asymco.com
  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; asymco.com/
  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: http://www.bizreport.com/2011/07/less-than-1-of-mobile-apps-top-1million-downloads80-of-branded-apps-struggle-to-achieve-1000-downloads.html
  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 http://doubleclickadvertisers.blogspot.com/2011/06/cranking-up-speed-of-dfa-leads-to.html
  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 http://googledata.org/google-mobile/fast-is-better-than-slow/
  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: slideshare.net/stephenhay/structured-content-first
  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

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