10 Reasons to Go Mobile in 2010

Morgan Stanley’s Mobile Internet Report was released Dec 15, 2009.

Extracted from 426 pages of Morgan Stanley’s data, below are ten reasons to seriously consider a proactive and thoughtful mobile strategy for your business in 2010.  This data clearly shows that the Mobile Surge is On…

1. “Ramping faster than the desktop internet, the mobile internet will be bigger than most think.”

Morgan Stanley expects more users to connect to the internet using mobile devices than desktop computers within 5 years. There are 5 trends converging to make mobile grow faster than desktop internet:

• 3G
• Social networking
• Video
• VoIP
• Impressive Mobile Devices 

This will require an evolving marketing approach to keep up with shifting consumer mobile behavior. Mobile consumer ad/commerce/paid services revenue is estimated to grow from $37B in 2008 to $107B by 2013.

2. “Increasingly, consumers expect to get what they want, when they want it, from the palm of their hand…”

Consumer expectations are rising and they will quickly adopt new mobile capabilities that serve their needs. We know that Nokia identified the trend of “the death of patience” now Morgan Stanley is confirming it.  The marketing question is how can your brand use mobile to tap into this desire/deliver on the demand?

3. Mobile devices are creating opportunities & dislocations, empowering consumers in unprecedented & transformative ways

They are evolving into remote controls for ever “expanding types of real time, cloud-based services.”  Game changing communication/commerce platforms are emerging very rapidly.  One of the leaders, Facebook,  has 17% of its 430MM users currently accessing it via mobile and “we assume this number will rise to +90% within 5 years.”

4. Consumers spend much more time on the mobile channel than advertisers do

Ad spend on the internet (8%) and mobile phones (1%) is far below the time people actually spend on that media (25% and 13% respectively).   “We expect this imbalance to correct itself.”

5. “If consumers have it on their desktop, they will expect it (and more) on their mobile”

Many consumers expect to do the following anytime/anywhere:

• Get real time dinner reservations and directions while riding the bus
• Get nearby movie showtimes and purchase tickets while at dinner
• Watch Yankees (Red Sox!) games live on phone
• Upload photos to Facebook and distribute while on a mountaintop
• Comparison shop (with barcode scan assist) for best prices while walking around a retail outlet

6.  Japan has already proven out a roadmap for mobile growth and monetization

The best place to look for where the mobile intenet may be in five years is Japan.  Japan has the most developed mobile ecosystem in the world with thriving mobile online commerce, paid services and advertising growth. 

13% of Japan’s online commerce and 17% of Japan’s online ad revenue came from mobile in 2008. (compared to <1% and 5% respectively from the USA).  Mobile revenue per user in Japan (excluding data) has doubled over the last year and is three times the rest of the world.

7. “Mobile physical goods (general merchandise) are a bigger opportunity than most people realize”

Mobile Commerce = Accelerator for Offline to Online Retail Transition.                                                                         Its like having a Wal-Mart or Best Buy in your pocket - Neil Young, CEO ngmoco:)

Mobile coupons and branded mobile apps have potential to generate substantial incremental retail store traffic/sales. Nearly 20% of the revenue for Japan’s largest online mall was derived from mobile in 2008.  44% of Japan’s mobile retail sales are from physical goods.

8. Apple iPhone was the fastest new tech device ramp/ecosystem in history

iPhone + iTouch users = 8x AOL users nine months after launch.  Customers are voting with their usage and dollars. The power/impact of this trend/shift “should not be underestimated.”

9. The mobile internet is the 5^th wealth creation computing cycle in 50 years and will be biggest yet

We are in the ‘early innings’ of mobile internet development. The winners in each cycle often create more market capitalization than in the last.  How will your business engage in this trend?

10. Your competitors are probably already exploring mobile strategies

Alright, so Morgan Stanley does not explicitly state this. But synergizing the content of this report with hundreds of examples of revenue-enhancing SMS, mobile application and advertising programs from other industry sources is a clear indicator that the mobile surge is here.

If you are interested in discussing the implications of this information on your business or having a copy of the full Morgan Stanley report please contact hsears@mobilesynergies.com

One Response to “10 Reasons to Go Mobile in 2010”

1. Peter says:

   December 23, 2009 at 10:02 am

   Your phrase “Mobile Surge” is a good one, very appropriate for what is currently (finally) happening for the industry & with marketers.
   You should trademark it.