Moosylvania | The Great State of Design

«Blog Home

Response In Ad Age - What Google Wants with its own phone: Control

by Administrator December 15. 2009 03:06
Google's Android Platform, regardless of who manufactures it, already trumps iPhone in distribution in the US. Google will continue to push smart phone advancements. If it doesn't, it will be extinct in a few short years, here's why;

Smart phones will outnumber computers in the US in the first half of 2010. A Deloitte survey just released found - 39% of 18 to 29 year-olds planned to use smart phones for holiday shopping in the US and the number is only going to expand at an accelerated rate as a record number of smart phones are being purchased right now.

GPS and Blue tooth proximity based messaging with augmented overlays on video enhanced cameras, combined with snap tag information, real time on-line comparison shopping and instant coupons connect the web with packaging, point of purchase, store shops and even routes to the store, all in real time one-one-one communication.

Consumer consumption for all things web has been running at 3-4 years ahead of marketers' spend, simply because marketers haven't been sophisticated enough to catch up. This chasm has made marketing spend on the web value priced. Now the mobile web is coming on board at a 3G pace, and consumption is already well ahead of anything anticipated.

Significantly faster 4G is just beginning to come on and the lightening speed of 700 Mhz, the old TV spectrum, was slated for now, however, the new administration doesn't think it is appropriate to simply unleash it on the open market, because it's too advanced.

The US Federal Government auction for the 700 Mhz spectrum took place in 2008 with the top bidders being AT&T, Verizon, Craig McCaw's consortium that included Sprint and T-Mobile, Cablevision regionally, and Google.

Google asked and was granted that if any bid for spectrum came in over $4B, then the access provider for the spectrum could be switched at a moments notice on any device (open platform) for the best price. This would make carrier exclusive phones, even the iPhone, and cable set top boxes, a thing of the past.

This scenario would create an environment where app bots continuously shop for the lowest access cost for spectrum and immediately switch to the best provider, similar to roaming on a cell phone.

A scenario like this will lead to price compression in exchange for locked-in connectivity that guarantees sizable audiences for advertisers. Equipment will become a commodity that is driven by open source developers. Sitting atop this food chain?, Google and few other developers/search giants/ad networks.

That's why every marketer needs a mobile strategy right now. The $1B anticipated in mobile media spend in 2010, should be 3-4x that. Additionally, the majority of spend in the space should not be media. It should be on the development of content and interaction with customers. Very soon mobile will be the primary way consumers access and interact with the web.

Read Full Article

Tags:

News

Comments

Add comment


 

biuquote
Loading



Log in