Notes from Wireless Technology Forum SIG on Wireless Apps and Mobile Media (WAMM), Atlanta 10-09-2008

I attended the Wireless Tech Forum Meeting today at The Ashford Club, Atlanta. Today’s topic was Wireless Applications and Mobile Media. This is a new Special Interest Group within the Wireless Tech Forum and organizers have done a great job as usual of creating format and content for this SIG. Steve Bachman heads up the WAMM SIG along with co-chairs Richard Yates and Ed Pimentel.

Today we had an excellent first session on mobile media with a great presentation by Jerry Rocha, the Sr Director of Mobile Research at Nielsen Mobile (formerly Telephia). Jerry presented some great information on patterns, trends, usage stats on mobile media and mobile apps. Here are some highlights from the session :

Among major apps on the mobile data gravy train are SMS, mobile apps and mobile internet. We have to see which one comes out ahead in terms of user adoption but all are growing with heady growth rates compared to where they were before (of course we are only talking US market in this entire discussion, I know mobile data in Europe and Asia is a totally different ballgame and growth pattern).

Number Crunching :

If we include all mobile data, it is growing at rate of 28%. In Europe, SMS was big but with falling rates of SMS, carriers are pushing MMS which commands higher revenues. There were 260 million mobile customers in USA at end of Q2, 2008. Of which 56 million were downloading mobile apps. 15 million customers have seem video on mobile – small percent of mobile population but growing. Of the 260 million mobile customers in USA, 102 million have access to the mobile internet. 77% of mobile subscribers can get SMS today. Mobile internet is now a 1.2 billion dollar industry. 43 million customers in USA use mobile internet regularly now.

Trends :

Nielsen Mobile has access to 80,000 customers bills for market survey and this is the primary source of market research for Nielsen Mobile.

Among data apps, audio is a big killer app. Games was popular but there is decline in mobile gaming. Many fringe mobile gaming firms are going out of business with big ones like Glu Mobile and Electronic Arts taking majority of market share in mobile gaming. Ringtones are powerful but see slower traction now.

Mobile apps have see a huge uptick this year – one reason is the iPhone and the awareness it created about mobile apps in general.

From a strategy perspective, media firms like CNN, ESPN and others have pushed mobile media in spite of lack of enough support from carriers. Media firms are pushing off-deck content.

Mobile Internet :

Mobile portals are most heavily visited area. Email is second most popular with 27.4 million users (Nielsen is not including POP3 email accounts). Among sites visited most, the order is : Yahoo (22.3 million users), Google (18.9 million), MSN (14.4 million), AOL (12.6 million), Weather Channel, CNN, FOX, Apple, Turner in that order.

iPhone has been a game changing device for mobile internet with each firm now forced to follow a three pronged internet strategy : Regular website, Mobile website and iPhone-optimized website. Many firms have device detection and render appropriate website based on source of access.

Mobile Apps :

These have seen a giant increase since Q1 of this year. Most popular apps are related to LBS (Location-Based Services) – an area for which we in CellStrat have written extensively and have a nice white paper on our company website (www.cellstrat.com). Top 10 mobile apps are (in declining order of popularity) :- Verizon Navigator,  Sprint Navigator, AT&T Navigator, Wireless Synch Email, TeleNav GPS Navigator, Sprint Family Locator, MySpace Mobile, Mobile Email, MapQuest Mobile and XM Radio Mobile.

Lot of firms like Nokia are buying up firms which have LBS offerings or technology.

Some of the big publishers of mobile apps are : TeleNav Mobile, Networks in Motion, Intellisync, WaveMarket, MySpace Mobile, AutoDesk etc.

It seems Location tracking is an app whic commands $5 per month revenue relatively easily. Same cannot be said for some of the other mobile apps though.

The top mobile app areas in order of popularity are (most popular first) :- LBS (69% of mobile apps are related to this), PIM Tools, Weather, Music, Maps or Directions etc.

iPhone :

This has shaken the mobile world as we report countless times now. Apple iPhone now as 1% of USA market share and 3.7% of AT&T mobile phones are iPhones. By Q3, Apple had sold 10 million iPhones worldwide easily hitting its goal of 10 million iPhones in first year.

iPhone AppStore is a breakthrough concept and has opened up the mobile application ecosystem to developers like never before. In the 4 months since its launch, iPhone AppStore has seen 100 million downloads of mobile apps, total number of mobile apps on iPhone available now exceeds 3000 apps.

iPhone dominates every category of mobile web usage.

Some cool iPhone killers like BlackBerry Bold, Storm and Google G1 are out or coming out soon and we will have to see how well they do against iPhone. One reason for huge app success on iPhone is its excellent developer support and ecosystem eg the iTunes store. Nokia scores well too on this front with its Symbian platform.

iPhone users skew towards male with 67% iPhone users being males and 33% females although in overall mobile world, 52% of mobile customers are females.

Mobile Advertising :

This one pays for it all.

Interestingly Atlanta is No 3 in mobile video usage (interesting..never thought Atlanta was that big on mobile web adoption). Among mobile email, gmail and yahoo email dominate.

Nielsen has tools to scrap 300 websites every 15 minutes and categorizes them for ad purposes. It turns out Eletronic Arts and Dunkin Donuts are bigger advertisers in mobile internet. On ESPN Mobile, Electronic Arts is the biggest advertiser.