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Internet analyst Mary Meeker from Morgan Stanley presented a report on Internet trends at Events@Google yesterday. Echoing those trends identified in her 2009 presentation , the report focuses on the rapid and continued growth of the mobile internet and social networking. Claiming that the world has entered the fifth major technology cycle, Meeker predicts that this cycle will be marked by the adoption of mobile Internet technologies, as the trends of "3G + Social Networking + Video + VoIP + Impressive Mobile Devices" converge. Meeker predicts the mobile Internet will be bigger than desktop in five years, noting that by comparing iPhone and iPod touch versus AOL and Netscape users, that mobile Internet is ramping up at a rate far faster than desktop did. Furthermore, she argues that 3G coverage has reached a global inflection point, meaning it is available to at least 20% of the world's cellphone users. Sponsor While the trends Meeker identifies in her report will be familiar to ReadWriteWeb readers, it is worth considering how some of what she observes might impact startups, providing opportunities for new business ventures. Mobile E-Commerce : Not only is mobile increasingly the method by which users are accessing the Internet, Meeker contends that mobile will revolutionize e-commerce, forcing both innovations for both online and brick-and-mortar companies. She identifies location-based services, push notifications, transparent pricing, and instant mobile delivery as four potential areas this will occur. Virtual Goods : The success of Tencent, with over $2 billion in sales of virtual goods in China, demonstrates the potential for this area, Meeker argues Applications : Noting the success of both Facebook and Apple in the app market, what Meeker labels as "vibrant developer / application platform ecosystems, " she suggests that companies will continue to leverage social networks for fans and for revenue. Video : Meeker's research points to video as outpacing VoIP and other resources people seek to access with their mobile devices. Look to Japan : Meeker points to the Japanese social networking site Mixi, who has seen its mobile page views increase from 17% of total views three years ago to 72% today. It is clear that social networks and mobile Internet will continue to play a huge role in shaping the future of technology and business development. The full version of Meeker's presentation is available on Scribd, thanks to Mathew Ingram from GigaOm . Don't miss the ReadWriteWeb Mobile Summit on May 7th in Mountain View, California! We're at a key point in the history of mobile computing right now - we hope you'll join us, and a group of the most innovative leaders in the mobile industry, to discuss it. Register now » Discuss
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Mary Meeker's Internet Trends: The Future is Mobile
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The popular location-based services Foursquare and Gowalla were launched at the 2009 SXSW, and one year later, many proclaimed the 2010 SXSW to be the year of "location, location, location" . With almost 350,000 Foursquare check-ins during one day of the event, and with numerous location-based services launching before, during, and after SXSW, the buzz among early adopters surrounding location-based social networking seems to show no signs of abating. Sponsor In a provocative (and NSFW) blog post this weekend, entrepreneur and developer Dave McClure takes both location-based social networks and their early adopters to task, arguing that "the current method of check-ins is a classic case of early-adopter lust for shiny objects, & has not a damn thing to do with long-term sustainable mainstream consumer behavior." Dismissing the lure of the game-mechanics that many of these platforms utilize - the idea of collecting badges, points, and/or mayorships - McClure contends that until LBS start offering some sort of simple monetary incentive, mainstream users will not be compelled to check-in. Whether or not you agree with McClure's pronouncements and predictions about location-based social networks, his comments about "early-adopter lust for shiny objects" are worth considering. Although conventional wisdom posits that early adopters provide a solid target market for startups, there are some drawbacks in responding focusing solely on those who "lust for shiny objects." Early adopters' enthusiasm may not always be a good indication of future growth and sustainability. Although early adopters are often willing to provide feedback on a product's development, that feedback might not be the information necessary to woo a larger market. Early adopters' feedback on existing features and push for new features might not necessarily be the feedback necessary for features that mainstream users would want or need. The push for special stamps and badges from Gowalla and Foursquare might excite early adopters, for example, but mainstream users may not find this a compelling reason to adopt a service. The lure of other social networks, such as Facebook, is in part that "everyone is there." The question remains how to make the move from just the early adopters to "everyone" being there. Nevertheless, early adopters can be terrific champions of a product, actively promoting it to their friends. Early adopters are a small, but vocal group. Ignore them at your peril. And focus exclusively on them at your peril. Discuss
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Startups and Early Adopters: "Checking In" on Conventional Wisdom
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It is widely accepted that social media has transformed the landscape of marketing radically, and no longer can businesses - no matter their size or stage of development - afford to avoid social media. While the importance of developing one's brand online remains paramount - most obviously through the registration of a domain name - the proliferation of social media platforms can be overwhelming, and startups might feel compelled to register and interact with every service in order to quicken the spread of their name. Sponsor The multitude of social media platforms allow new businesses to establish their online presence, develop a brand and a message, and grow fans and followers - and of course customers - all without extensive investment in elaborate or costly marketing campaigns. The danger, however, lays in the proverbial "spreading oneself too thin" by attempting to make sure one's startup has a presence in every social media network. While new businesses should certainly take advantage of social networking, here are a few tips to help avoid social media overload: Avoid social-media-for-social-media's sake : Social media endeavors should always be in service of clear business goals, not merely an abstract notion of "user engagement." Develop a social media plan that supports your business plan. Use the services which which you're most comfortable : Take advantage of social media networks to which you already belong and in which you are already active. It is preferable to develop a robust presence on one or two platforms than to create profiles on every possible site, particularly if these are in danger of becoming unused and out-of-date. Engage : Despite the far-reaching power of social media networks, these services are not bullhorns. Use them to engage in dialogue with potential investors and customers, not merely to push information out to them. While social media can be a great place to share information, promote a service, and so on, it is important to be responsive - listen, engage. Track, evaluate, and adapt : Many services offer analytics tools in order to ascertain traffic levels and engagement. Be sure to check these regularly to evaluate the ROI of a platform. And as the field of social media is ever changing, be prepared to adapt. For example, just because a service like Foursquare is popular now does not mean that you should be forever wedded to location-based marketing. Although it is tempting to register for every social media site and to try to adopt every new tool, the drawback may be that in an attempt to network everywhere, your startup fails to network anywhere. Discuss
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Social Media Marketing Overload? Some Tips for Startups
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In the midst of the SXSW festival last month, we reviewed a mobile social network called LoKast . Our one lingering question about the app's utility, at the time, was were we really going to run around town staring at our phone to see if someone else nearby was running the same app? The answer was "no" then and is "no" now, but the difference now is that the iPhone OS 4.0 that was announced yesterday allows for background location multitasking . This opens up a whole new realm of experiences for the iPhone. Sponsor First, LoKast. LoKast is a self-described "disposable" social network. That is, as you move about and come near other people running LoKast, you can quickly interact with them. Then, when you move ot of range, you may never see them again. It is social networking based on location, without a persistent friends listing. So now, with background location monitoring, an app like LoKast is actually feasible. I can turn it on, leave it running and wander around town and perhaps have it notify me when I'm within range of someone. As Kim-Mai Cutler notes, background location also brings up some "slightly creepy" privacy concerns relating not only to applications running in the background, but also location based advertising. But what if you think about location based advertising like you think of iTunes' "Genius" function or all the other recommendation engine software you use? It may be tough to realize that you are not quite the unique snowflake you thought you were and that, indeed, everyday around three you end up at the same coffeeshop, but wouldn't it be nice for your iPhone to realize this and get you 20% off? Without you even having to lift a finger? Well, fine, maybe you have to lift an iPhone. The list of ideas for background location are endless. Of course, we'll have to see how quickly a battery gets drained with persistent GPS monitoring. Having the ability to let our phones deliver us information, as we move about the world, based on our location has some amazing potential. Think of EveryBlock , the hyperlocal news aggregator that Marshall Kirkpatrick went ga-ga over when it arrived in Portland. The block-level delivery of news wouldn't even need to wait for you to check it any more - it could simply deliver relevant information as you move about your day. Real-time rideshare services like Avego and Flinc suddenly become that much more feasible, in fast-paced, real-life situations. We could go on, but we have another couple of months before the next version of the iPhone OS comes out and we're already too excited as it is. What crazy, creepy or otherwise cool potential do you see with the new background location capabilities? Discuss
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What Background Location Brings to the iPhone
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The current generation of check-in based location apps like Foursquare and Gowalla are more or less focused on the gaming aspects of location-based social networking. CauseWorld for the iPhone and Android, however, wants to use location based check-ins for two things: connect you to the stores around you and allow you to use the points you get for checking in to support a variety of charitable causes . CauseWorld features badges and other virtual rewards, but the main focus of the app is on collecting "karma points" that can then be exchanged for donations to participating charities. Sponsor Shopping and Charity The mission of CauseWorld's parent company Shopkick is to bring the physical and virtual worlds of retail together. Besides just checking in at various stores, CauseWorld's users can also scan products in supermarkets to get extra points. Typically, it's been hard for barcode scanners like RedLaser to get to this data for grocery items, but as Shopkick's CEO Cyriac Roeding tols us yesterday, his company manged to strike a deal with Procter & Gamble and Kraft Foods, which gives Shopkick access to this data. It's easy to see why these companies would be interesting in making the deal with CauseWorld. After all, whenever you scan a product (even if your motivation is to help the world by gathering karma points), you are already holding this product in your hands and Kraft can now give you a mobile coupon for the product that you can use at the check-out counter. That, as Roeding put it, "is the holy grail for retailers" - being able to create a deeper relationship with the consumer right in the store while they are already looking at the product. After just a little bit more than three month on the market, CauseWorld has already seen 400,000 downloads of its mobile app and plans to release a major update in the summer. So far, the company has received around $700,000 in sponsorship money from Citi for its charity program and is giving away about $100,000 per month. Features The app itself is pretty straightforward. You can check in to stores around you and if this is a participating store, the app will also encourage you to check the store out and scan some products. To make sure that you are not just gaming the system, CauseWorld restricts you to 10 check-ins a day and enforces a three minute break between check-ins. Every check-in is worth 5 karma points (some sponsors also offer double points). You can connect the app to Facebook, but the social networking aspects are really not the focus of the app. One problem we noticed, however, is that the app allows to check in even if the store is still almost mile half a mile away from you. This seems to defeat the purpose of really connecting consumers to nearby stores and makes it rather easy to collect points while you are actually still sitting in your living room. Discuss
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CauseWorld: Checking in for Charity
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