Online Retailers and the Mobile App Profit Dilemma

by Holly Shoemaker

A recent report from research2guidance reported that in 2012 most online stores made less than five percent of their revenue from a mobile app. 

Numbers at a Glance

The company surveyed more than 600 mobile-commerce companies and found the following:

• Almost 19 percent of e-commerce companies made more than 25 percent of revenue via mobile channels. 
• One third reported that they expected to generate more than a quarter of their revenue from mobile within the next five years. In addition, 15 percent of those companies reported that they planned to generate half their revenue from mobile apps.
• For online retailers to profit from mobile apps, they need to achieve downloaded numbers of more than two million. At this time, many online stores only achieve a few thousand downloads. 

Mobile Ad Spending to Grow

eMarketer predicts that U.S. mobile ad spending will reach $7.19 billion in 2013 and more than $20 billion in 2016. Despite those numbers, mobile only entails a small percentage of total ad spending. It comes in at just 2.4 percent. If the number increases as expected to $20 billion in 2016 that will bring the percentage to 11 percent – that means it will rank higher than radio, but will not overtake print.

Hope for Online Retailers?

The future for online retailers and revenue from mobile apps depends on the goods or services sold. Stores that sell virtual goods perform well. Companies that sell game apps and upgrades or virtual goods inside them also have a better chance at becoming part of the exclusive five percent.

RIM's Port-A-Thon Has Hours to Go

by Holly Shoemaker

Developers looking to make a little cash from Research In Motion (RIM), have a few hours left today. In anticipation of its BlackBerry 10 launch on Wednesday, January 30, 2013, RIM is conducting another Port-A-Thon, a 36-hour marathon that began at noon on Friday, January 18, 2013. In that 36-hour span, RIM will pay Android developers $100 for every approved app that gets ported over to BlackBerry 10. There is a a limit of 20 paid apps per developer.

Port-A Thon Rules

RIM has allocated $500,000 toward distribution, and to qualify developers must register and submit their apps into the BlackBerry World Vendor Portal by 11:59:59 PM EST on Saturday, January 19, 2013. Any app submitted outside that timeframe, will not count, and BlackBerry must approve all apps.

Valuable Sessions?

RIM sees value in these sessions, and the Port-A-Thon held on January 11, 2013 brought in over 15,000 apps. RIM ultimately needs to gain back consumer satisfaction and apps provide a way to do that. However, the company needs to hope that top apps get transported over and meet the needs of all stakeholders involved.

URL Redirect and Testings Keys to Successful QR Codes

by Holly Shoemaker

With the increase in smartphone use, quick response (QR) codes are becoming a way to get the latest deals and promotions out to consumers. They were an integral part of holiday shopping, and the U.S. Postal Service and others will continue to place emphasis on them as part of their marketing campaigns in 2013.

What is a QR Code?

A QR code is simply a readable bar code that stores up to 4,296 characters of information in its data. Bar codes may come in different patterns, multiple shapes and colors. However, the pattern in the corners should always remain clear.

Designing an Effective Code

While the color, pattern and shape of the code may vary, there are some basic guidelines developers should adhere to when developing a QR code:

• Keep the code simple – A more complex code will lead to a larger code pattern, meaning the image projected on the smartphone will become larger for the consumer to read. Therefore, developers should simplify the code to keep the image easy to read.
• Use a shorter URL – Keep the URL small. When the URL becomes larger, so does the pattern of code. When the code stores more information, the image becomes harder to read.
• Create a URL Redirect – The URL itself is often the biggest long-term challenge for developers because QR codes cannot be edited. If the code needs altering, companies will need new marketing materials because the old code becomes void. To avoid the costs associated with printing new materials to accommodate a new code, create a URL redirect or URL forwarding. This allows developers to have the code land where it needs, without changing the URL itself. A URL redirect also keeps the URL shorter, easier to manage and allows the developer to change the end location without the need for editing.

Always Test and Test Again

As with all apps, developers need to test the code. First, print the code to make sure it fits the needed specs. Then use a few different scanners to ensure the bar code works. Make sure the phone works across platforms and devices so test on iPhones and various Android devices. Developers should also test with different lighting as the end user will not always scan the code under the same lighting conditions.

Concluding Thoughts

Keep the URL short and the pattern easy to read. If the URL goes astray from where the end user needs to land, the code itself becomes useless. Therefore, test the code to ensure it works under multiple conditions to take into consideration multiple scanning scenarios.

Google Restores December; Bluetooth Issue Remains

by Holly Shoemaker

This week Google released version 4.2.1 Jelly Bean to its Nexus devices. The release aimed to fix the glitch of forgetting to include the month of December in its People App. As a point of clarification, because of the posts out there that claim Google stool Christmas, never mind some of us celebrate a holiday that begins earlier that month, December always showed up in the calendar app.

Fix Fails to Address Bluetooth Issue

Now that people may once again enter birthdays, other dates or remind themselves that Christmas is the same day every year, unlike Hanukkah which never starts on the same day, Google may need to address another issue. Since version 4.2 of Android, many users have complained about the inability to use Bluetooth. The patch did not address the issue for those hoping to connect Bluetooth-enabled devices to Nexus ones. It looks like Google needs to work on version 4.2.2.

BlackBerry 10 Finally Receives Launch Date, but Specifics Lack

by Holly Shoemaker

Research In Motion (RIM) has finally set a release date for its BlackBerry 10 devices – January 30, 2013. Consumers should expect to first see a full touchscreen device followed by ones with keyboard capability.

Thorsten Heins, the company’s CEO, said RIM initially used about 50 carriers for testing. While he said the number increased, no specifics were provided at this time. The company also remained vague on what devices the four major U.S. carriers would stock.

In terms of apps, Heins said the company will gain ground, but specifics lack here too. He did not mention any new apps for the BlackBerry 10, but said it will offer must-have ones and programs specific to countries. For interested developers, RIM started accepting apps for BlackBerry App World for the new QNX-based operating system in October. 

Stakeholders Respond Well

The market and analysts responded favorably to the news. Goldman Sachs upgraded the company’s shares. It stated there is a 30 percent chance that RIM’s BlackBerry 10 lineup with be successful. Goldman Sachs upgraded the company’s status to "buy" from "neutral." In turn, the stock market responded well. RIM’s shares rose almost 10 percent. While the stock rose 78 percent since September, it has lost more than 90 percent from its 2008 high.

When will the company make a profit? Analysts still expect the company to clock in a loss next year, with a turnaround expected in February 2014.

Concluding Thoughts

This is encouraging news for RIM, although the company still cannot compete with the upcoming holiday season. To that point, RIM does not seem all that concerned. Its devices will initially target the high-end market and rely on the popularity it had focusing on QWERTY. Now, after much disappointment, RIM must stay firm on this release date.