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Sarah
Stambler's |
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E-Tactics |
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Letter |
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April 28, 2002
Volume 10, Issue 12 |
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Just when you thought you knew what the next hot electronic frontier
would be, market research proves you wrong. Here’s fresh data and
commentary about what’s really been happening in the mobile phone and
PDA markets that will disspell some of the hype:
Top
Worldwide consumer enthusiasm for using mobile phones to make Internet
purchases is all but non-existent, less than two years after one in three
users said they had such plans, according to results of a study released
today.
And as more Internet-enabled mobile phones go into service, fewer users
have even tried the capability, said the latest Mobinet Index by the A.T.
Kearney consulting firm.
On the other hand, short text messaging (SMS) has been embraced by much
of the world mobile-phone community, with 80 percent usage in some
European countries.
Only 1 percent of mobile-phone users in 14 countries said in January
that they intend to buy something online via handset, compared to 12
percent at the same time last year and 32 percent in July 2000.
Penetration of Internet-enabled cellular phones grew 41 percent since
the June 2001 study, but the number of those actually accessing the Net by
mobile telephone was "flat," Kearney said in a news release.
Fewer than half have never used their phones’ wireless Internet
capabilities, the study found.
"The Mobinet Index recorded high numbers for intent to use mobile
phones to access the Internet 18 months ago," said Paul Collins, who
led the study. "Those numbers have fallen drastically, primarily
because the mobile community hasn’t provided consumers with enough
reasons to access the Internet with their phones."
The Kearney research team also found that 44 percent of cellular phone
users said they intended to use their handsets for the little-known
practice of mobile-cash (m-cash) purchases. More surprising, they said,
was that just 2 percent had actually made m-cash transactions.
The potential of m-cash buying could be wiped out if the industry doesn’t
take steps to develop the market, especially when considering the sharp
decline of enthusiasm for Internet-enabled mobile phones, the firm noted.
"Consumer tastes in the mobile arena are fragile, so it is
imperative that the community of mobile phone makers, carriers, content
providers and financial services companies rally quickly to provide mobile
cash capabilities before consumer interest wanes," Collins said.
SMS use, however, is attractive enough on its own merits to generate
once-a-month user rates of more than 80 percent in the U.K. and Finland,
and 35 percent in all countries studied. At the bottom of the SMS heap is
the U.S., where just 5 percent of mobile-phone users engage in the
practice.
Advertisers have noticed. Nearly a third - 31 percent - of study
respondents said they’ve received some type of ad via their mobile
phones compared to 1 percent last June.
A.T. Kearney, a subsidiary of Electronic Data Systems, studied 5,600
mobile phone users on four continents and for Mobinet Index reports every
six months.
The Mobinet Index is at http://www.atkearney.com/pdf/eng/Mobinet_4_S.pdf.
Top
Killer application, or "killer app," has become one of the
most overused buzz phrases of the Internet era. While geeks in every
sector strive to invent a software application that enjoys near universal
adoption, the president and CEO of Palm’s wireless division says don’t
bother when it comes to personal digital assistants.
David Nagel said he believes the future of PDAs is bright - especially
wireless PDAs - but he doubts that turning one’s organizer into an
e-wallet or a media player will bring a major change to the industry.
"What is the killer app? There is no killer app," he said.
"Like devices, applications are idiosyncratic."
Nagel gave the afternoon keynote on the first day of the iWireless
World trade show. He told the audience at the Wyndham Bel Age Hotel that
new technologies are revolutionizing mobile devices - especially PDAs.
In the next few years, people will see faster processors, magnetic
memory, new displays, and devices that recognize speech. Fuel cells
promise to eliminate battery concerns, more storage is coming, and even
more is possible, he said, but wireless capabilities may be the most
significant development of all.
"Wireless networking will change the equation," he said.
"PDA penetration eventually will surpass PCs because of their
simplicity and lower cost."
The ability to talk to one’s mobile device also will be a crucial
development, Nagel said. He said cell-phones have gotten progressively
lighter since the seven-kilogram Ericsson model in 1987.
"According to some analysts, we soon will have a cell phone on a
chip. For interaction, we need voice input," he said. "Speech
recognition speed has improved 250 times since 1995."
A Palm employee demonstrated the practical uses for a new rugged
handheld designed for the medical profession. Slightly larger than the
company’s popular "Pilot" and armed with a bar-code scanner,
the specialized PDA allows doctors and nurses to synchronize patient
information.
The company said the new product could be used to scan the bar code
symbols on any fluids before they are given to a patient. The wireless
connection with the treatment center’s database allows instant
notification of an incorrect blood type before a transfusion takes place.
Nagel said the delays and difficulties plaguing 3G, the long-awaited
third-generation wireless technology, are opening a window of opportunity
for another type of wireless.
"802.11 uses free, unlicensed spectrum, while 2.5G and 3G use a
costly, licensed spectrum," he said.
Palm Wireless is at http://www.palm.com/wireless.
Top
Online retail sales during the first three months of the year jumped 41
percent over the same period in 2001, according to a survey of Internet
merchants.
The growth is the biggest of four consecutive quarters, including the
traditionally busy holiday quarter, according to statistics released by
comparison-shopping site BizRate.com.
The company says it sees online sales accelerating, not
"maturing" or decelerating, and has adjusted its forecast for
2002 to reflect this.
BizRate now predicts this year’s total e-tail sales will jump 44
percent over 2001, a change of heart from an earlier forecast of 26
percent.
"There is a still a perception that online industries are
faltering, but this is actually the reverse with online retail
sales," said Chuck Davis, president and CEO of BizRate, in a prepared
statement.
"The trend shows that consumers love buying online and are
shifting their purchases from offline to online - and at ever-increasing
levels - even though their overall spending might not be growing,"
Davis added.
The Los Angeles company, which collects data from over 2,000 online
retailers, also revealed the first quarter’s average online sale was
valued at $127 per purchase, compared to $120 in the year-ago quarter.
BizRate.com is at: http://www.bizrate.com.
Top
Newfangled browsers that radically change the face of toolbars soon
will pop up all over the Web, thanks to the latest in online ad technology
aimed at capturing surfers’ attention., will be launched
"soon," company officials said, without specifying a launch
date. And the new ad form is unlikely to get unanimous approval of Web
surfers, some of whom have had it with pop-up and pop-under ads for
everything from pitches for financial publications to Web casinos.
The demo of Ooqa Ooqa, a creation of United Virtualities, shows a
standard, battleship-gray toolbar give way to a version displaying the
client company’s logo in the background. Toolbar mainstays such as
"Edit," become sponsored links.
Surfers who encounter Ooqa Ooqa have options, starting with the power
to go back to their usual browser with a simple command, said Michelle
Ross, strategic alliance director of New York-based United Virtualities.
"You can opt out for the session, or you can opt out and never see
Ooqa Ooqa ever again," Ross said. "So we give the user the
ability to choose if they want to see this type of branding." A user
who initially opts in can opt out later, and is able to do away with some
functions while retaining others, the company said.
Another type of ad laucnhed in 1999, Shoshkeles ,is an animation that
moves across a user’s computer screen, usually accompanied by sound
effects. It lasts only long enough to communicate its message before
settling into a stationary ad on the page. Most do not cover the entire
screen.
The idea behind Shoshkeles is to more readily catch the user’s eye
than other online ad forms. AT&T, Purina, Reebok, Home Box Office and
Volkswagen are among the Shosh-keles clients. Auction Web site Ebay used
the technology to promote Valentine’s Day-related merchandise.
Ooqa Ooqa, like Shoshkeles, is far more effective for the advertiser
and less annoying than the much-maligned pop-up and pop-under ads, the
company says. And the browsers can be made into shapes other than square,
the company said, hinting that a cloud-shaped version is in the works.
Users have complained that pop-up ads are too invasive, and require
time to get rid of, and that the pop-under variety plays a frustrating
game of hide-and-seek by loading behind a browser instead of emerging on
the computer screen.
In contracts to pop-up ads that must be closed every time they open,
Ooqa Ooqa’s opt-out-forever feature requires action just once.
The company believes that users will want the advantages offered by a
customizable browser. It beats the "uniformity" of Microsoft
Internet Explorer and Netscape browsers, a company executive said.
"Your browser becomes contextually active to your browsing,"
the executive said. "You choose what to see, you choose how to see
it, you choose when to see it. This is a totally opt-in environment."
United Virtualities is at http://www.unitedvirtualities.com.
Top
While it may not be unique on the Web, the local ABC affiliate in St.
Paul, Minn., is offering an unusual news video-on-demand service its
general manager hopes will lead his local TV station to the leading edge
of Webcasting.
KSTP-TV today debuted its 5Cast service, which allows Web site users to
select video segments from archived TV newscasts in any order they choose,
giving them, in some sense, the keys to the editor’s desk.
"It allows an individual to create his or her own newscast,"
said Ed Piette, KSTP’s general manager. "If they want to look at
one news story, they look at one news story. If they want to look at 23
stories, they look at 23 stories, in whatever order they’d like to do
that."
Equally important to Piette, he said, is that the software from Man-kato,
Minn.-based Dayport preserves high-quality video from the newscasts,
especially when seen over broadband connections on the Internet. "It
far surpasses anything in the Twin Cities," he said.
Dayport’s software uses an automated process to scoop up KSTP news
stories and to process them digitally so they are Web-ready. By investing
in the software, Piette said, the station had to hire no new employees. As
a result, he expects the video venture to be profitable for his station
within three months.
The KSTP service is now online at http://www.kstp.com/.
One note of caution: because of conflicts between Internet Explorer and
the Netscape Navigator 6, the video service does not work for Web users
operating Navigator 6 browsers.
Top
One year after its inception, a project by Coca-Cola Japan, wireless
giant NTT DoCoMo and trading group Itochu Corp. to make mobile handsets
order and pay for soft drinks from vending machines is being touted as a
new wireless sales channel.
The Japanese companies initially sought to turn NTT DoCoMo’s I-mode
handsets into cashless vendors of soda. A trial in Tokyo aimed to see if
it would be commercially feasible to link Japan’s vending machines to
I-mode mobile phones.
This month, Coca-Cola will begin installing hybrid vending machines
across the nation. The wireless kiosks will now be based on Cmode, the new
name for the service and technology.
"Detailed analysis has shown Cmode to have high levels of consumer
acceptance and to provide significant business opportunities," the
companies said in a statement today.
There should be 2,000 of the machines in Japan by the end of the year,
the companies said. They will also sell other physical and digital goods,
including amusement park tickets and local maps via print-outs, and mobile
phone ring tones and games.
Coca-Cola has at least 1 million vending machines across Japan.
Top
The Internet continues to transform politics, and now is antiquating
door-to-door petitioners who gather signatures for issues of local or
national import. PetitionOnline.com, calling itself "the new
marketplace of free ideas," offers free hosting of public petitions for
responsible public advocacy. The idea is to facilitate grassroots democracy
and all issues are acceptable except those that advocate violence, extreme
hostility, that use foul language, or are otherwise irresponsible or
anti-social. A petition writer simply writes the text of a petition, posts
it online, and solicits signers to log in and sign it. Petitions are then
delivered electronically or physically printed for the original author to
disseminate to the responsible parties. To validate signers, the service
logs each signature and e-mail address for possible statistical validation,
rejecting duplicates. Find out more here:
World Wide Web: http://Petitiononline.com/
Top
Lawyers and interested parties have a one-stop shop now for all they
need to know about the legality of links – clickable doorways to other
Web sites. Here under one roof are links to the latest legal decisions and
litigation on the subject with special coverage of the most notorious
cases. The site also offers technical solutions to linking controversies,
new technical developments, sample link license agreements, hyperlink
patents and more.
World Wide Web: http://www.jura.uni-tuebingen.de/~s-bes1/lcp.html
Top
Add your voice to the debate over the FTC’s proposed change to the
Telemarketing Sales Rule at this site, where the feds are soliciting public
opinions on the matter. The controversial change creates a national "do
not call" registry. Under the FTC’s proposal, it would be illegal for
telemarketers to call consumers who place their phone number on the national
registry. Whether you are a consumer or represent a business, the FTC wants
your opinion about the proposed changes. An e-mail address is provided for
comments, as well as an address for postal mail.m | Privacy Agenda
World Wide Web: http://www.ftc.gov/bcp/conline/edcams/donotcall/
Top
With summer right around the corner, many teens are interested in
temporary employment this summer. This service aims to link them with
employers who could use their help. Registration is free to teenagers age
14 and older, although employers pay a fee to be listed. The site accepts
all types of job openings: full-time, part-time, seasonal, vocational,
apprentice, internship or volunteer. Teenagers create their own profiles
on the site, and can then search jobs by category or location. When they
find a job they like, they forward their profiles to the employer directly
and wait for a response.
World Wide Web: http://www.teens4hire.org
Top
DESPERATELY
SEEKING DISCONNECT TIME
Recently I took a two week vacation to Italy and happily wrote to
clients and vendors,"I will not be checking e-mail or voice
mail. I will be in a state of total techno-disconnect." It was
a little scary to do, but you know, that vacation seemed like a
month. The days were longer and slower and I lost touch with all the
details of my current projects, problems, and bank balances. It was
a great break and a good rest.
Despite my attempts to distance myself from my technology-ridden
lifestyle, wireless communications followed us everywhere. It did
seem strange to see people walking through the streets of Venice late at
night suddenly reach for their cell phones answering "Pronto"
while gondolas drifted by being rowed by human gondoliers. It was not the
Italy I had visited in my college days.
It’s always seemed bizarre to me to see people walking down the
street clutching their cell phones close to the side of their face talking
away into empty space oblivious to the fact that others can hear their
entire conversation. When phones were less ubiquitous phone calls
were more private affairs. Remember the days when someone would ask,
"Do you mind if I take this call in another room?"
Responses to a recent survey form TMP Worldwide of 5,000 workers across
a variety of industries indicate that technology may just be "the
death of us." 44.4 percent of workers polled said that because they
are tied closer to the workplace by mobile phones and computers they feel
they are "on call 24 hours a day, 7 days a week." When TMP
Worldwide looked at advertising industry workers, that percentage leaped
to 77.8 percent. But the survey found it’s not just office-based workers
who are feeling this way - 58.8 percent of construction industry workers
also said technology made them feel on call every minute of every day.
Overall, technology has inflated the expectations of employers and
customers.
TMP Worldwide’s No. 1 tip for the techno-stressed worker is simply:
"Breathe deeply and focus on a pleasurable event or place." The
odds are that place may be beyond the reach of a mobile phone or the
Internet.
Maybe by not having a cell phone I have been able to accomplish this on
a daily basis. When I leave the office, I’m out and about and don’t
want anyone to reach me. That’s why I am out. In that way I
practice a certain amount of "disconnect time" each day.
Do you think we might have to institute an official moratorium on cell
phone usage, on Earth Day perhaps? Or do we need a CPA (Cell Phones
Anonymous) 12-Step Program for those who’ve gone even further over the
edge into heavy cell phone addiction and are in denial? Well, anyway you
accomplish it, I wish you a happy disconnect. Your life may depend
on it!
Top
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JURY IS OUT ON M-COMMERCE & PDA APPS
Interest in Online Buying Via Mobile Phone Near
Zero
Palm Exec: There are No ‘Killer Apps’ for
PDAs
Online Sales Accelerating Not Maturing –
Bizrate
NEW APPS TO LEARN FROM
Browsers Beware: Ad Technology Retools Toolbar
Local TV Station Tackles On-Demand Web
Coca-Cola Serves Up Wireless Vending Machines in
Japan
SITES...
Petitions Online
Think Before You Link
Proposed National ‘Do Not Call’ Registry
Teens 4 Hire
Editor’s Corner
Desperately Seeking Disconnect Time
Want to learn more about us? Please visit our
site at: www.e-tactics.com
Or write:
Sarah Stambler
Phone: (212) 222-1713
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The E-TACTICS LETTER, (formerly MARKETING WITH TECHNOLOGY NEWS
ISSN 1070-809X) is published 12 times a year by E-Tactics, Inc. an electronic
marketing and publishing firm established in 1984 that specializes in the
creative use of electronic media in the design and implementation of customer
driven marketing, research and publication strategies.
© 2002 E-Tactics, Inc. All rights reserved.
Permission is granted to reprint or distribute The E-TACTICS LETTER as long as
this full copyright notice is included together with the subscription
information.
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