Comscore recently revealed Smartphone adoption in the EU5 (UK, France, Germany, Spain, Italy) has grown 32% over the past year and some analysts project location-based mobile spending will top $4 billion in 2015 (currently $34 million). Net effect: mobile marketing is set to become a critical part of a brands overall marketing strategy.

Diana Pouliot, Director of Mobile Advertising at Google, recently spoke at a Mobile Marketing & Advertising event in Las Vegas, where she revealed one-third of all Google searches via the mobile web pertain to some aspect of the searcher’s local environment. This highlights the importance of “local-intent” when it comes to mobile advertising. This reference to the importance of local and relevant search through mobile devices was again referenced by Ronan Harris, Director of Online Sales, Google Europe, at last week’s National Digital Media and Marketing Summit.

With Google’s personalised web based searches now corresponding with a user’s online profile, the dominance of personalised marketing is set to be a huge factor on mobile devices.

Ireland’s Digital Media Future by Minister Eamon Ryan. from Cybercom on Vimeo.

Cybercom’s insights from the 2010 National Digital Media & Marketing Summit. from Cybercom on Vimeo.

We’ve been speculating internally, (as many others have), about a Facebook move into the location territory. According to a news report from New Media Age, Facebook is to add a feature that includes people’s locations in their status updates.

It has updated its privacy policy to use the term ‘Place’ when describing its location-based service ahead of the launch of the feature. The update will provide a link to any Facebook page possessed by the owner of the location, such as a coffee shop.

No doubt more will be revealed at Facebook’s F8 Conference on April 21st.

In advance of the launch of iPhone within the Vodafone network, the Digital Reach Group (DRG) have just completed some research on the size of the smartphone market in Ireland.

Key Findings:

• Approximately 250,000 iPhones are currently active on Irish networks. This represents market penetration of 5.2%, (based on the latest comReg data).
• While O2 makes up the highest proportion of iPhone mobile traffic at 35%, 10% of iPhone traffic already comes from Vodafone iPhone devices ahead of the company launching the handset.
• The most popular individual smart phone handset is the Apple iPhone followed by handsets from Nokia’s E and N series, and Blackberry’s 8000 series.
• iPhone traffic was static between September and November 2009, but increased by 50% in December 2009 versus November.  This is most likely due to O2’s free iPhone offer at the end of 2009 and in advance of the end of its exclusive handset deal with Apple.
• Apple traffic on the network is divided at 82% for the iPhone and 18% for the iPod Touch.
• Google’s Android system is a new entrant into the Irish market and is making rapid inroads at 0.5% already since the October ’09 launch of HTC’s Hero handset on Meteor.
• Peaks and troughs in usage are less pronounced for iPhones than other devices, as people tend to use them far more regularly throughout the day. This reinforces the idea that there are benefits to combining usability with an attractive data tariff.
• The top five handset manufacturers on the overall mobile network are: 1. Nokia, 2. Sony Ericsson, 3. Research In Motion (Blackberry), 4. Samsung and 5. Apple.

Still on the Oscar theme in the build up to tonight’s Irish broadcast, we’re happy to acknowledge The Academy’s efforts in giving the usually conservative awards ceremony a much needed push into the realm of social media.

2010 saw a number of notable ‘firsts’ for The Academy Awards, with the launch of The Academy’s own official iphone app, and for the first time ever, the announcement of the nominees were streamed live on the Academy’s official site, Oscars.org as well as their newly launched Facebook page Facebook.com/TheAcademy. Over 170,000 viewers tuned in to watch the live stream via these two channels. The site itself has experienced a makeover prior to the 82nd Awards Ceremony last night, hosting a wealth of behind the scenes footage and reams of exclusive content from nominees.

And while The Academy has pushed the boat out considerably this year, they have been upfront about the fact that they have a long way to go in terms of utilizing all that social media and online has to offer, “We won’t get accomplished everything we want to this year. If you look at the site, it’s really better than it’s ever been, so hopefully next year we’ll be able to execute 50% of what we wanted to. This year we’ll probably only accomplish 20% of what we wanted. We always wanted Twitter and Facebook to be used…to speak to an audience that has not traditionally viewed the Oscars.” Mr. Mechanic, the show’s co-executive producer has said.

Of course, by the time next year’s Awards are on, The Academy’s original plans could be outdated. Either way, social engagement at the heart of Oscar activity is here to stay.

We’ve been doing a lot of research lately around the evolution of smart mobile technologies. In parallel we’ve also been looking at next gen information exchange formats such as 2D bar-coding and considering what sort of impact they may have for everyday users. We were therefore particularly interested to see an exciting, yet practical application of the convergence of these two areas when one of the Cybercom team, recently travelling in the States, spotted a rather smart iPhone ‘Paperless Check In App’ in use from Delta Airlines.

Delta Airlines’s iPhone App offers users a streamlined, secure and user-friendly experience to finding out details such as Flight Status, Flight Schedules, Itineraries and SkyMiles Account Information. A user can check-in using their iPhone, print out their boarding pass at a kiosk, and head straight to security and departures. Users are also able to change flights directly through the app if they have their credit card details on file with Delta.com.

A recent update of the app now includes a new ‘Paperless Check-In’. For all users on flights originating in LaGuardia, Indianapolis, Minneapolis/St. Paul or Detroit, they can use an onscreen electronic boarding pass and QR code at the gate to board their flight. Delta have also confirmed that ‘Paperless Check-In’ will soon be rolled out to Atlanta, Las Vegas, Memphis, Orlando, and Salt Lake City. May other local airlines follow suit quickly!

While the investment in sensor readers has been significant for Delta Airlines, paperless mobile check-in is an extremely efficient way for an international airline to manage the boarding process, resulting in quicker flight times and man-hour savings.

Our prediction is for an influx of time-saving and money-saving location-based initiatives powered through mobile sensor capabilities, improving day-to-day experiences for consumers and the bottom line for business owners.

Further reading:
Mobile World Congress 2010 – The Buzz, News & Launches (Part 1)
Mobile World Congress 2010 – The Buzz, News & Launches (Part 2)
Ralph Lauren’s use of QR codes in their advertising and digital windows

Adobe’s efforts to give their Flash Runtime a solid foothold on emerging smart phone platforms has received a much needed boost with the news that Google are making pro-active moves to fully support Flash on Android devices. Google Product Manager, Eric Tseng made the announcement this week at the Mobile World Congress in Barcelona (see article).

Both Flash Player and Flash AIR mobile apps are to be integrated with the platform in an attempt by Google to capitalise on both the demand for Flash content from mobile internet users as well as the substantial Flash Developer Base. It remains to be seen to what degree Flash support will provide a competitive advantage to Android devices over the almost pervasive Apple iPhone which doesn’t directly support Flash in any way.

Apple have strongly rebuffed repeated advances by Adobe, most recently in the case of the Apple iPad, making it unlikely that Apple will ever provide Flash support on its mobile devices. Google have a great deal of catching up to do on the selection of 140,000+ applications currently available on the Apple App Store. Google’s decision to adopt an established runtime, like Flash, appears to be a move to address this.

You can view an unofficial video demo of how Flash will work in the Google Nexus One internet browser.

Adobe have, however, officially announced their AIR application runtime for Mobile devices. For a demo view Adobe AIR on Andriod.

The pace of announcements and the general buzz around the venue was somewhat quieter by the third day of the event. However this is THE event for the mobile industry and – let’s be honest – the future of the Internet so it was another busy day of new product launches, great speakers and significant developments for digital marketing.

Erik Huggers, the BBC’s director of future media and technology, delivered a thoroughly interesting session on mobile entertainment. The BBC is set to launch two applications for news and sport that will make it easier for smart phone users in the UK to access the broadcaster’s content on their handsets. An application for the iPlayer, the broadcaster’s hugely successful catch-up TV service, is under consideration for launch later in the year. The broadcaster will develop the apps first for Apple’s iPhone followed soon after for BlackBerry and Android-based handsets. It also intends to develop versions of the applications for other smart phone operating systems.

The BBC has seen a significant increase in mobile traffic since the start of 2009. The surge has been precipitated by two events: a heavy burst of snowy weather in the UK in February and the death of Michael Jackson in June. Both events triggered massive consumer interest in instantly finding out more information about a major event. ‘What’s interesting is that we saw spikes which we expected to fall back afterwards but the traffic kept growing’, said Huggers. Talk about classic ‘tipping point’ moments!

But the BBC and other content providers face challenges in their relationship with the mobile industry. Huggers listed three in particular, starting with standardisation. ‘The BBC has driven it for 88 years. Somehow we find it strange that burden falls to us to re-purpose our programming for every new product. Can we agree on a standard?’ asked Erik. Cybercom has now heard this same point be made over and over again in Barcelona. Be prepared to hear a lot more as brands are asked to cough off development costs on what’s effectively the same product.

He also signalled a potentially major issue of the mobile network overloading as an increasing amount of video is downloaded by users. Finally, he said, there is an absence of good data on mobile media consumption: ‘We are flying in the dark – the industry needs a set of metrics.’

Daniel Ek, Spotify Co-Founder, told delegates that the firm was in discussions with operators and handset makers to bring its pioneering music streaming service to mobile. This is great news for all fans that the amazing music cloud network is looking at deeper integration with mobile devices. We’re already using it here in Cybercom on their recently launched iPhone platform – well worth checking out if you have a UK credit card and postal address.

We loved Ek’s comments about ‘making all the music in the world playable for you within five seconds’ – what a vision! Interestingly, Spotify users have already past the 100 million playlists mark. In the short term, Ek sees bundling Spotify with tariffs as ‘something we’re going to see a lot more’. He’s adamant that Spotify will become the intermediary between the licensing side of music and the consumer. Who’d argue with him!?

Other highlights today (Wednesday) included a joint venture from Verizon Wireless, the largest US mobile operator, and Skype, the biggest VoIP provider. They’re developing an application that will enable the operator’s 3G smart phone users to make free or cheap international calls. The application – Skype mobile – will be available for download by users of popular Verizon Wireless smartphones from next month. The application has been developed by the two companies to run on the Verizon Wireless 3G EV-DO network.

The alliance confirms a change of attitude among mobile operators who have historically been hostile towards VoIP providers. The Skype mobile application will be offered to users of Verizon Wireless smart phones including BlackBerry models, HTC phones and Motorola’s Droid.

Very interestingly, we heard a contrasting opinion on standardisation for the first time! Hugh Bradlow, CTO of Telstra, Australia’s largest operator, put forward an alternative proposal. He said that customer demand would force the company to support numerous app stores and handset operating systems regardless of the various industry initiatives to reduce fragmentation. ‘We don’t see the growing number of available app stores or mobile operating systems as fragmentation, but as competition. I believe there will still be at least six to 10 mobile OS offerings on the market in the coming years.’ Perhaps the first remotely positive comment in Apple’s general direction all week!

On a slightly more technical point, there has been a lot of buzz around LTE this week. It stands for Long Term Evolution and is the project name of a new high performance air interface for mobile broadband. LTE seems to be the last step toward the 4th generation (4G) of radio technologies designed to increase the capacity and speed of mobile networks. Most major operators in the United States and several worldwide carriers have announced plans to convert their networks to LTE this year. The world’s first publicly available LTE-service was opened by TeliaSonera in the two Scandinavian capitals Stockholm and Oslo in December 2009. This is a very exciting space so worth watching intently this year!

So there you go! We hope you enjoyed our highlights from the Mobile World Congress. As Eric Schmidt said yesterday ‘this event is the place to be for everyone in the industry’. At Cybercom, we’re delighted to be in a position to share our learnings and blog about the industry’s future for the benefit of our clients and friends.

WOW! We’ve just finished our first day at the Mobile World Congress in Barcelona, the industry’s annual get together. This is a conference like no other. Perhaps even a year like no other. There is a buzz around, in fact a genuine belief, that the world is about to go through another major paradigm shift.

Hans Vestberg, President and CEO of Ericsson had some very interesting comments to make earlier this afternoon. The jist of his presentation was that we have been through four technical revolutions (Industrial / Steam & Coal / Heavy Engineering / Oil) and are now finished the first phase of the world’s fifth technical revolution. The installation phase of the IT & Telecom revolution is complete and we are moving into deployment.

In layman’s terms, the ‘deployment’ refers to broadening the reach and capacity of mobile broadband – in effect an understanding and commitment that global consumers will demand ‘Internet on the go’. This is very exciting for Cybercom and our clients as it’s in tandem with our approach and thinking around the mobile channel.

Among the other impressive speakers today was Lu Yimin, President of China Unicom, who gave the audience rare and succinct insight into the country’s Internet public and industry. He spoke about how telecoms is the engine driver and pillar industry in China – representing a massive 7% of total GDP. There are now 747 million mobile subscribers in the country (56% penetration) while the 3G network covers a staggering 335 Chinese cities. In fact, 3G development is a core strategic requirement laid down by the government. Here’s to the Year of the Tiger!

It’s been great to hear that the fight against poverty and minimising CO2 emissions seem to genuinely be high on everyone’s agenda here. Predictably this seems to be led by Scandanavia and China but the talk is big and focuses on energy savings through the (much hyped) unified charger and rolling out 3G networks (mobile broadband) in developing countries.

HTC’s product launch was one of the most anticipated events today and the Taiwanese manufacturer certainly did not disappoint. HTC, which built the Nexus One for Google, unveiled three new smart phones – The Legend, The Desire and The Mini. The Legend and the Desire both run the latest version of Google’s Android operating system. There was a lot of buzz around the congress on the back of HTC claims that they will take Android ‘to the next level’. Today seemed like a watershed. It’s as if Android has finally arrived and is about start challenging the iPhone.

The anticipated ‘arrival’ on Android will have massive implications for marketers. At Cybercom, we anticipated that Android would finally make an impact on the global consumer. We are looking forward to redeveloping some of our iPhone applications for Irish Android users during 2010.

So what of Apple? Of course they will remain the largest player in the market definitely in the medium term and probably even in the long term. However they are conspicuous by their absence (or at least light presence) in Barcelona. There also seems to be a growing resentment about lack of integration. This is primarily aimed at Apple but also any companies that steel a march in the mobile web.

Vittorio Colao, CEO of Vodafone, thinks the mobile industry has reached a critical point. He claims lack of application interoperability between different types of phones is THE critical issue at the moment. He challenged the handset makers and software developers to start working together for the greater good. The theme of ‘coming together’ was echoed in one way or another by numerous leading global CEOs and Presidents throughout the day.

Still on Vittorio, he also had some interesting comments on Google and Yahoo – calling on public policy through global regulators and politicians to take a hard look at their growing influence. He has a good point when you consider over 80% of power rests with the search giants.

So, on that point, onwards to the last session of the day! It was delivered by none other than Mr. Eric Schmidt, Google’s CEO and Chairman. We love everything digital in Cybercom so this really was fever pitch stuff, better than any gig or game! In a strange way, the naivety of the organisers projecting ‘Happy Chinese New Year’ as Eric was introduced and the fact that the WIFI network couldn’t deal with the audience capacity just added to the event.

One of the most powerful people in the world told us that there are now more Google searches via mobile than desktop in emerging countries like Indonesia and South Africa. He also spoke about a girl caught in the rubble in Haiti who used messaging to direct her rescuers.

We got a lowdown of Google’s new mobile products – ‘the game changing’ development for the marketing industry is the launch of Flash 10.1 for Android. We can only assume that Apple will follow suit for this summer’s release of the fourth iPhone.

Brilliant new consumer innovations include the launch of Google Voice and Google Goggles (image recognition search) on the mobile. Check out more details of these when you get a chance.

The meeting point of the 3 critical waves seem to be the critical turning point over the last few months:

1. Computing (think Moore’s Law and where it’s going to take us over the next few years)
2. Connectivity (70 million public servers around the world)
3. Cloud (SIM card as an identifier to locate online data storage eg. Spotify)

Convergence is well and truly upon us. The time is absolutely now.

What we have learnt from today is that our agency belief that mobile comes first is actually right on the button. The phone is, well, no longer a phone. It’s the consumer’s alter ego – an extension to everything they do. We’ll leave you with a quote from Eric Schmidt: ‘Put Mobile First, Your Job Is To Create Magic!’

Check out our Twitter feed at twitter.com/cybercom tomorrow for ongoing buzz and news from Mobile World Congress.