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Today's Top Stories
1. Year in review 2012: Android, iOS close in on combined 90 percent U.S. smartphone share, making Windows Phone, BlackBerry irrelevant
2. Year in review 2012: Apple boots Google services from iOS, suffers rare humiliation with Maps fiasco
3. Year in review 2012: Verizon Wireless, AT&T leverage mobile subscriber data to sell targeted ads
4. Year in review 2012: Square, PayPal spearhead mobile payments growth, stranding NFC on the sidelines
5. Year in review 2012: Facebook, Zynga missteps call into question mobile social media's future Editor's Corner: Year in Review 2012: Android sizzles, Apple Maps fizzles Also Noted: Akamai
Spotlight On... Instagram backpedals, reverts to original ad terms
eBay will halt ads in mobile apps; bMobilized lands another $2.5M in funding and much more... Photo app PicsArt expands its focus from Android to iOS
 PicsArt, released for Android in November 2011, has emerged as a grass-roots phenomenon, generating more than 30 million downloads and more than 500,000 Google Play users reviews without any of the brand notoriety and marketing muscle boosting its rivals. FierceDeveloper contributor Jason Ankeny spoke to PicsArt co-founder and CTO Arto Mehrabyan about the app's success on Android, its expansion to iOS and the importance of giving the people what they want. Developer Workshop
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Year in Review 2012: Android sizzles, Apple Maps fizzles
It's time to stop speaking of mobile as the second screen. In 2012, smartphones and tablets emerged as the screen of choice for a growing number of U.S. consumers: According to an OnDevice Research survey conducted this summer, Americans now spend an average of 2.4 hours per day consuming media content on mobile devices, ahead of television (2.35 hours) and the desktop (1.6 hours). Sixty-five percent of respondents said they prefer mobile to other media channels because "it's easy to use," and 56 percent favor mobile because their device is always with them. Seventy-seven percent of respondents access mobile media services while lying in bed. Seventy percent multitask on mobile while watching TV, and 65 percent kill time while waiting for something else. That's the state of mobile in 2012: It's everywhere, and it's devouring everything in its path. Mobile phones long ago relegated landline communications to the dustbin of history, and TVs and PCs are next in sight. But mobile isn't stopping there: This was the year that smartphones began replacing conventional wallets, mobile gaming usurped consoles and Black Friday shopping transitioned from overcrowded stores to smartphones. The more some things changed, the more others stayed the same, however: Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) continued setting the pace in virtually all phases of mobile software and services, further separating their platforms from the competition and setting up the next round in their heavyweight slugfest. In this special year-in-review issue, FierceMobileContent looks back at the signature headlines and trends that shaped the mobile media sector in 2012 and set the stage for the next wave of innovations to follow. Please note that we are on publishing hiatus until Wednesday, Jan. 2--be sure to visit our website in the event of breaking news between now and then. In the meantime, have a memorable and safe holiday season, and we'll see you back here in 2013.--Jason Read more about: Year in review
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Marketplace > Shifting Performance Strategies and Solutions for Mobile and Web Experience
> Whitepaper: Are you ready for the BYOD Challenge?
> Research: M-commerce in the UK 2012 | Verdict Channel Reports
> Research: Software: Global Industry Guide
> Research: Enterprise Applications Market Forecast in the US to 2014
> Whitepaper: Native vs. HTML5 Mobile App Development: Which Option is Best?
> Survey: Who Is Moving To The Cloud and Why?
> Whitepaper: Appcelerator/ IDC Q2 2012 Mobile Developer Report
> Whitepaper: 4 Keys to Building a Successful, Scalable Mobile App Strategy
> Whitepaper: How to Evaluate a Next Generation Mobile Platform
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* General ad info: Click here | Today's Top News 1. Year in review 2012: Android, iOS close in on combined 90 percent U.S. smartphone share, making Windows Phone, BlackBerry irrelevant
The news: What third platform? Any hopes that Microsoft's (NASDAQ:MSFT) Windows Phone might emerge in 2012 as a viable contender for U.S. smartphone market dominance effectively faded as Google's (NASDAQ:GOOG) Android and Apple's (NASDAQ:AAPL) iOS pulled even further away from the competition over the course of the year. According to the latest data from digital research firm comScore, Android and iOS combined to command 87.9 percent of the U.S. smartphone market at the end of Oct. 2012, up from a combined 74.4 percent 12 months earlier; Microsoft will look to the fledgling Windows Phone 8 to rejuvenate its mobile fortunes in 2013, but there's little reason for optimism. Consumers simply don't seem interested in the Windows Phone platform: Its market share plummeted from 5.6 percent in October 2011 to just 3.6 percent a year later. At least Microsoft managed to release an updated mobile OS in 2012: Research In Motion (NASDAQ:RIMM) couldn't even muster that much of a fight. RIM delayed its last-gasp BlackBerry 10 until the first quarter of 2013. In the absence of new devices and services to keep pace with the advances made by Android iOS, the BlackBerry operating system continued falling out of favor with consumers and enterprise users alike, ending October with just 7.8 percent of the U.S. smartphone market, down from 17.2 percent a year earlier. At its 2009 peak, BlackBerry dominated 43 percent of the nationwide smartphone market, but those days seem like a lifetime ago. What it means: It's a two-horse race from here on out, although truth be told, even iOS will struggle to keep up with Android moving forward. The Google OS powered three out of every four smartphones shipped worldwide during the third quarter of 2012, corresponding to a record-high 136 million units, market intelligence firm IDC reported last month. iOS trails far behind with third-quarter shipments of 26.9 million, translating to a global market share of 14.9 percent. Speaking in October, Google Executive Chairman Eric Schmidt said there are now more than 500 million Android devices in use worldwide, with an average of 1.3 million additional activations each day. "We'll be at 1 billion mobile devices in a year," Schmidt added, and earlier this month, he even compared Android's decisive lead in mobile to Microsoft's dominance over the desktop segment during the 1990s. "This is a huge platform change. This is of the scale of 20 years ago--Microsoft versus Apple," Schmidt said. "We're winning that war pretty clearly now." It's a bold statement, but one that's difficult to argue. |
| This week's sponsors are Box and Okta. |  | Want to know how & why companies are moving to the cloud? As an IT professional responsible for cloud migration in your organization, your feedback is valuable us. Please take this brief survey and join us as we discuss the results during our January 31st webinar. As a thank you for your time, you will be entered in a drawing for chance to win an iPad Mini! Click Here
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2. Year in review 2012: Apple boots Google services from iOS, suffers rare humiliation with Maps fiasco
The news: Before there was Android, Google's (NASDAQ:GOOG) mobile presence was defined by core services devoted to search, advertising and maps--all hallmarks of the company's desktop empire. Google Maps was even baked into the first edition of Apple's (NASDAQ:AAPL) iPhone, released in mid-2007, and it remained a fixture of the iOS platform for years to follow. But in 2012, the rivalry between Apple and Google reached the point of no return, and with the release of its iOS 6 update, Apple unceremoniously dumped preloaded Google services like Maps and YouTube, further escalating the battle by rolling out its homegrown Apple Maps platform. Because mobile location and navigation services are such a critical source of revenue and consumer data, analysts say that Apple was essentially forced to oust Google Maps in favor of its own proprietary services. But in the short term, it appears Apple made a massive tactical error: So far, Apple Maps has been nothing short of a disaster. Immediately after iOS 6 launched, users identified dozens of inaccuracies including missing roads, misplaced landmarks and mislabeled businesses. With consumer fury mounting, Apple CEO Tim Cook even issued a public apology for the new Maps platform, admitting "We fell short" on meeting customer expectations and suggesting that consumers consider alternative mapping technologies while Apple strives to improve the service. What it means: Both Apple and Google will stop at nothing to gain the upper hand in the battle for mobile dominance--and there will be casualties. The fallout from the Apple Maps debacle grew to include the exits of several high-ranking executives, most notably Scott Forstall, Apple's senior vice president of iOS software. Insiders say Forstall was forced out of Apple due to troubles with Maps and the Siri voice assistant, products that he oversaw, adding that tensions came to a head after he refused to sign Cook's letter of apology. Moving forward, Apple Senior Vice President of Internet Software and Services Eddy Cue will oversee the Maps platform's evolution. "We're putting all of our energy into making [Maps] right," Cook recently said. "And we have already had several software updates. We've got a huge plan to make it even better. It will get better and better over time." In the meantime, Google Maps has returned to iOS--this time as a native application available for download from Apple's App Store. The app went live in mid-December; highlights include turn-by-turn voice navigation, a feature absent from the preinstalled iOS version because of multiple disputes between Google and Apple, as well as vector-based map images available in 2D or 3D views. Google Maps also integrates live traffic conditions, public transit data and details on more than 80 million businesses and points of interest, complete with Street View and Business Photos images, contact information, user ratings and reviews. Within hours of Google Maps for iOS's launch, it topped the App Store's Free Apps download chart, generating 10 million downloads in less than 48 hours and proving that while Apple may want no part of Google Maps, iOS device owners feel otherwise. |
3. Year in review 2012: Verizon Wireless, AT&T leverage mobile subscriber data to sell targeted ads
The news: Both Verizon Wireless (NYSE:VZ) and AT&T (NYSE:T) rolled out controversial new services enabling marketing partners to launch targeted campaigns leveraging subscriber data. Verizon's Precision Market Insights unit collects information on millions of subscribers to help advertisers identify information like which iOS and Android applications are in use in which geographic regions. Verizon Selects, a related program using location, Web browsing and mobile app usage data to serve targeted promotions to opt-in subscribers, followed earlier this month. Verizon Wireless will offer customers who opt into Selects a coupon or some other form of reward, most likely from a name-brand retailer, in exchange for their participation. According to Verizon, Precision Mobile Insights initiatives do not run afoul of legal issues because all data is aggregated and does not reveal subscribers' identities, and because customers may opt-out at any time. "As a carrier, our consumers and brands look to us to really help them figure out mobile, Colson Hillier, Verizon's vice president of precision marketing, told FierceMobileContent this fall. "We realized we had a latent asset. We have information about how customers are using their mobile phones." Rival AT&T responded with its own service letting marketers target Internet ads to consumers using data collected from its wireless and U-Verse cable subscribers. Overseen by AT&T's AdWorks division, the service employs "aggregated TV and mobile data that is not personally identifiable," including information culled from mobile app, game and video downloads. The operator then applies a proprietary algorithm developed in its AT&T Labs division to introduce online campaigns designed for audiences exhibiting similar behaviors. Earlier this month, AT&T Mobility also kicked off AT&T Alerts, an opt-in nationwide location-based deals notification program that uses cell tower data to determine when a device is located within a designated "geo-fence"--i.e., a virtual perimeter around a retail store or event. The service does not access the phone's GPS capabilities. What it means: Operators are willing to run the risk of controversy to profit from subscriber data. Consumer privacy advocates have already called the Precision Market Insights program into question: Hanni Fakhoury, a staff attorney at the Electronic Frontier Foundation, recently said that any wireless carrier that discloses information about which URLs a customer visits could violate the Wiretap Act, a federal law aimed at protecting consumer privacy in their communications with other persons. The Wiretap Act states that carriers may not "divulge the contents of any communication." Lawmakers will no doubt pay close attention to what happens next. This fall, Rep. Edward Markey (D-Mass.) introduced the Mobile Device Privacy Act, which would require wireless operators and their partners to notify subscribers if they employ mobile analytics measurement tools like the controversial Carrier IQ. The bill states that companies must obtain customer consent before monitoring software begins collecting information and transmitting it to third parties. Firms must also disclose what type of information they will collect, where data will be sent and how it will be used. Earlier this year, Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Research In Motion (NASDAQ:RIMM), Microsoft (NASDAQ:MSFT) and Hewlett Packard agreed to expand their privacy principles, bringing the mobile ecosystem in line with the California Online Privacy Protection Act. The agreement commits the six platform providers to educating developer partners about their obligations to respect consumer privacy and to disclose what private information they collect, how they use the information and with whom it is shared. This month, California's attorney general filed the state's first-ever mobile application privacy lawsuit against Delta Airlines. Consumers are taking notice as well. Forty-two percent of U.S. smartphone users identify mobile privacy and security as top concerns according to a survey conducted by Harris Interactive on behalf of privacy management firm TRUSTe. Ninety-four percent consider online privacy an important issue, and 55 percent say it is something they think of often. Consumers are also wary about behavioral advertising: While 62 percent of smartphone users are aware that advertisers track their mobile activities, only 1 percent like it. Ten percent of smartphone owners said they would consent to sharing specific location information, Web browsing behavior, their home address or list of contacts with mobile apps. A message to operators and advertisers: Tread carefully. |
4. Year in review 2012: Square, PayPal spearhead mobile payments growth, stranding NFC on the sidelines
The news: If 2011 was the year that mobile payments went mainstream, then 2012 was the year that began establishing which services and supporting technologies will prevail and which will fail. The biggest winner was Square: Once synonymous with its Mobile Card Reader system, which enables small businesses and other users to accept credit and debit purchases by swiping cards through a small dongle that plugs into their smartphone or tablet audio jack, Square this year exploded into the Fortune 500 segment, inking a deal with coffeehouse chain Starbucks spanning more than 7,000 U.S. locations. Starbucks customers may now pay for their purchases using the Square Wallet application for Apple's (NASDAQ:AAPL) iOS and Google's (NASDAQ:GOOG) Android. The app generates a QR code scanned by a Starbucks digital reader terminal and links to the user's debit or credit card to process the transaction. As of mid-November, Square is processing $10 billion in annual mobile payment transactions, up from $2 billion a year ago; more than 2 billion U.S. businesses and individuals use Square services, and this fall the firm closed a Series D financing round totaling about $200 million, increasing its valuation to $3.25 billion. Square faces its stiffest competition from eBay-owned PayPal, which in March released PayPal Here, a triangle-shaped dongle boasting similar functionality to the Square card reader. More than 200,000 merchants signed up for PayPal Here within its first five weeks on the market--add to that ongoing mobile wallet trials across American retail chains including Home Depot, Abercrombie & Fitch, American Eagle Outfitters, JCPenney, Foot Locker, Office Depot and Toys "R" Us, as well as PayPal's other m-commerce applications. The company is on pace to handle $10 billion in mobile payment transactions in 2012, an increase of 150 percent over a year ago. What it means: The inroads made by Square and PayPal Here could spell disaster for Near Field Communications-based mobile payment systems. More than 18 months after its introduction, Google Wallet, which enables consumers to make purchases by tapping their NFC-equipped Android smartphone at more than 200,000 MasterCard PayPass-enabled merchant terminals across the U.S., remains available across just a handful of devices from operator partners Sprint Nextel (NYSE:S), U.S. Cellular and MetroPCS (NASDAQ:PCS). Google has never revealed Wallet's user totals or transaction volumes, and reports indicate the company is now poised to add a physical credit card connected to the platform, enabling consumers to make in-store purchases at retailers that do not support contactless payment options. In theory, the approach would expand Wallet beyond Android and to devices that don't support NFC--chief among them, Apple's iPhone. Another major obstacle limiting Google Wallet adoption: Isis, the rival NFC-enabled mobile payments network spearheaded by Verizon Wireless (NYSE:VZ), AT&T Mobility (NYSE:T) and T-Mobile USA. After a series of delays and false starts, Isis finally kicked off consumer trials in the Salt Lake City and Austin, Texas markets in October. While some analysts contend Isis could still have the last laugh, citing carriers' marketing muscle and vast customer relationships, many critics have predicted doom for the service, citing its belated rollout, lack of widespread support for NFC and competitive pressures. Isis has not yet released any usage or adoption metrics, so its fate may not become clear until 2013 at the earliest. The question isn't whether Google Wallet or Isis will win the battle for NFC supremacy, however, but whether consumers or merchants have any use for NFC when other mobile payment options are at their fingertips. |
5. Year in review 2012: Facebook, Zynga missteps call into question mobile social media's future
The news: Facebook (NASDAQ:FB) and Zynga (NASDAQ:ZNGA) have made few friends on Wall Street since going public, and the fallout from their respective missteps and ongoing struggles to monetize has some investors questioning whether mobile social media will ever become a viable business model. Facebook went public in May, selling 421.2 million shares at $38 each to raise $16 billion, valuing the social network at $104.2 billion, the second largest IPO in U.S. history. The Facebook IPO trailed only Visa, which raised $17.9 billion in 2008, and vaulted the company ahead of General Motors, which generated $15.8 million in late 2010. But the bottom soon fell out: Within three months, Facebook shares were down 47 percent compared to their IPO price, and in its first-ever quarterly earnings report, the company posted net losses of $157 million. Facebook has vowed to right the ship with new and improved mobile services, and in recent months, the firm has rolled out a series of new initiatives including mobile-only Sponsored Stories ads, two-step carrier billing for mobile Web apps, in-app subscriptions, mobile device and OS advertiser targeting options and a mobile gift-giving platform. Along the way it also acquired photo-sharing app Instagram and vilified the HTML5 standard. More than 1 billion people worldwide now use Facebook actively each month, doubling from 500,000 in July 2010, and more than 600,000 access the platform via mobile device. In addition, mobile services generated 14 percent of Facebook's advertising revenues during the third quarter. But investors remain lukewarm regarding Facebook's mobile monetization aspirations, questioning how its advertising efforts will play on devices where the screens are smaller and the user experience is more intimate. Facebook's future nevertheless looks positively rosy compared to Zynga. The social gaming company's stock has been in freefall since its late-2011 IPO, a decline blamed on challenges including algorithmic changes made by Facebook and diminishing mobile traffic for OMGPOP's Draw Something, which Zynga acquired for about $180 million in March. More than half a dozen senior executives have left Zynga in recent months, and in October, the firm shuttered its Boston studio, reduced staffing levels in its Austin, Texas division and announced plans to sunset 13 games. Zynga is looking to turn around its business by expanding its mobile horizons, launching its first mobile role-playing games and 3D titles. The company also acquiried November Software in a move to court the 'midcore' mobile gaming market between the hardcore and casual segments. Zynga is also moving away from Facebook: Late last month, the two companies renegotiated the terms of their social games publishing partnership, liberating Zynga to expand its products to additional platforms. What it means: What worked for social media on the desktop will not work on mobile, necessitating dramatic changes in how these companies do business. Consider Groupon, the social commerce platform that also went public in late 2011 and has seen shares plummet more than 80 percent in the year since. Despite rumors of potential executive changes and speculation that Google may once again target the company for acquisition, Groupon is making positive strides in mobile: As of the third quarter, mobile devices generate about one-third of transactions across its North American digital deals platform, a year-over-year increase of close to 30 percent. Earlier this year, founder and CEO Andrew Mason told investors that the company's mobile shoppers spend about twice as much as their desktop counterparts. Groupon is also moving beyond its signature mobile bargains with the introduction of GrouponPayments, a mobile payments processing platform to rival efforts from Square and PayPal. Groupon is additionally rolling out Breadcrumb, a point-of-sale platform enabling restaurants, bars and cafés across the U.S. to run their business via iPad. There's no guarantee Facebook, Zynga or Groupon will recapture investor confidence again, but it's clear that mobile will play an enormous role in proving their mettle. |
Also Noted | This week's sponsor is Akamai. |  | "Innovating at the Pace of Mobile" Discover ways to successfully capitalize on the mobile opportunity and how a comprehensive mobile delivery platform can help maximize your organization's chances of success. Download Now.
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SPOTLIGHT ON... Instagram backpedals, reverts to original ad terms Following an outpouring of consumer frustration over proposed changes to its privacy policy and terms of service, photo-sharing platform Instagram said it will not institute controversial new language tied to planned advertising services. "There was confusion and real concern about what our possible advertising products could look like and how they would work," said Instagram co-founder and CEO Kevin Systrom. "Because of the feedback we have heard from you, we are reverting this advertising section to the original version that has been in effect since we launched the service in October 2010. You can see the updated terms here. Going forward, rather than obtain permission from... continued Quick news from around the Web @FierceMobiCo: Editor's Corner: The stalking apps bill raises questions all developers should answer http://bit.ly/TXUkBq Article | Follow @FierceMobiCo > eBay will halt ads in mobile apps. Article > bMobilized lands another $2.5 million in funding. Release Wireless News > Investors cheer BlackBerry financials, but RIM reports a shrinking customer base. Article > Despite endorsements, Sony's Xperia smartphones struggle to break through. Article And finally… Mark Cuban live-tweets kidney stone removal. Article > Globalstar's New "Wi-Fi" Super Highway - Tuesday, January 22nd, 11:00am EST/8:00 am PST This webinar will discuss the innovative technology, public benefits, and regulatory outlook of providing a new 22 MHz channel under the existing 802.11 IEEE standard. Join to learn technical aspects of TLPS deployment and the outlook for near-term relief from the FCC. Register Now!
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