The online retail landscape is changing fast. And the change is being driven by tablets. T-Commerce is the new e-commerce.
According to eMarketer, $24 billion will be spent by consumers shopping on their tablets this year and that amount will likely double by 2015. Contrast M-commerce (mobile) estimated growth will be lower at $13.44 billion for 2013 and $24.32 billion in 3 years’ time.
Start with your existing site. While it is ok for shoppers to access traditional websites on their tablet, consumers may encounter issues. Some old web elements like flash will not work on a tablet. Tablets are for tapping and desktops are for mouse-clicking. The way you hover on a site using a mouse won’t work on a tablet. So having a site that works on tablet is crucial.
Creating a Great T-Commerce Experience
It’s easy to get lost in the tablet vs mobile dilema. Many think that M-commerce and T-commerce are basically the same thing. When the scramble to create mobile-optimized sites arose, companies quickly jumped on board. Now that tablets are here, many sites simply redirect their tablet users to sites that are mobile-optimized. BIG MISTAKE!
The way we defined mobile is changing. We can’t lump together all online-buying activities from a mobile device as m-commerce. Tablets offer more screen real estate and can deliver more information compared to an m-commerce site. Consistency in the quantity of the content is paramount in creating a better user experience.
HTML5 Is King
HTML5 paved the way for developers to build a rich customer experience online. Aside from that, it enabled developers to add must-have features and functionality for tablet-friendly sites.
While it is widely accepted that Apple’s iPad is dominating the tablet landscape, many retail sites still use Flash – which Apple (along with most tablet manufacturers) does not support. The move to HTML5 entails some new development costs, not to mention production delays.
Analyze Your Data and Set Goals
As with any new initiative, careful analysis of data must be considered. Doing experiments and testing can enable you to create a site that’ll increase sales and provide more value to your customers.
As retailer you can’t ignore T-commerce. Our prediction is that it will end up taking over both e-commdrce and m-commerce in the not too distant future.
In 2010, Steve Jobs announced in a letter that the demise of Adobe’s Flash technology was inevitable and new standards would rise in the mobile area – like the HTML5. A year later, in 2011, Adobe announced that Flash development for mobile browsers would be discontinued and they would focus instead on tools that use HTML5. With Adobe throwing in the towel, HTML5 took the center stage.
Has HTML5 paved the way for more enhancements in web development and usability? What do developers really think about HTML5?
HTML5 gives developers a competitive edge. It integrates seamlessly with different mobile platforms, positioning it for exponential growth.
According to Peter Sheldon of Forrester Research, “We are at an inflection point: With consumer adoption of HTML5-‘capable’ desktop browsers widespread and Web Developer understanding of the technology rapidly maturing. HTML5 is no longer an emerging toolset for mobile and tablet development. Instead, it is fast becoming the de facto standard for Web experience innovation across touch points.”
In 2011, only 56% of North American browsers were HTML5 compatible. In 2012, we saw that figure grow to 75%. Developers are quickly riding the HTML5 wave.
HTML5 Mobile Web Examples
Some of the biggest brands in the world are already using HTML5. The Financial Times, following the success of its HTML5 web page, decided to completely veer away from the iPad app so that they “can have full control over its application,” and rid themselves of the 30% charge that Apple is taking from any company that uses its App store. The “Ford Showroom,” an application that utilizes HTML5 was designed for Ford clients by Burrows Communications Agency. Vimeo also employed HTML5 to create a self-hosted awards show.
HTML5 is good news for advertisers. A single creative unit can now be served across multiple platforms including desktop, tablet and smartphone.
However, not everyone is excited about the HTML5 mobile web. Mark Zuckerberg, Facebook founder and CEO, said that they made a big mistake in banking on HTML5. Questions were raised against HTML5’s readiness and capabilities afterwards. As it turned out, the real issue was Facebook’s lack of adeptness. Even the World Wide Web Consortium has said that HTML5 is “feature complete.” And Zuckerberg made a complete turn-around when he stated: “… it’s not that HTML5 is bad. I’m actually, on long-term, really excited about it.”
In April 2010, Apple released the iPad. News and magazine publishers were ecstatic. The digital platform allowed a lot of extras such as photos, videos and interactive elements that made for a much richer experience.
Apple’s innovation opened the floodgates for publishing companies to crash the mobile party by using Apple’s new device to showcase their beautiful print publications the way they were intended to be seen. Apple capitalized by setting up an easy-to-use pay wall for publishers to upload their content.
Enter the Audit Bureau of Circulations, an organization that monitors circulation and customer base information for magazines and newspapers in North America, which declared that “rate base” would once again be the foundation for setting online advertising rates…
Welcome to the Tablet Advertising Professionals Podcast Episode # 6, Tablet Newspapers and Magazines.
Today, we’re going to go over print versus digital – in both newspapers and magazines. Which direction is the market moving? How quickly is it moving? And what do you need to do as a publisher to adapt.
We’re also going over digital newspapers. What are the different companies out there doing?
Are they using HTML5? Are they using Apps? Or what’s going on?
And digital magazines.
Is interactivity important? Should users need to download them? Are PDFs sufficient? Should they be web-based? Should they be app-based?
We’ll be going over all of that today.
So first of all, print versus digital. The decline of Print Advertising Revenue.
If you look at the chart, since 2005, print advertising revenue has actually declined over 50%. In 2003, it started out at around $46 billion, and gradually increased until about 2005 and then it dropped… and dropped… and dropped. With an incredible decrease from 2008 to 2009.
A lot of that has a lot to do with the iPhone, the iPad, the technology coming down in price and people finally realizing the benefits over print in switching over.
Today we have the rise of the digital advertising revenue, and there’s been over a 100% rise since 2004.
If you’ll take a look at the chart, you’ll notice the print is declining over 50% again.
Online is increasing at a slower rate than print is declining.
Does that mean people are not consuming as much information?
I don’t think that’s the case. There are just too many platforms to consume information on now that those two are just not primary.
And 23% of tablet new users get digital access of some kind through a print newspaper or magazine subscription.
23%, so as a publisher, you’d think it is very important to have a presence on the tablet, whether in App or HTML5. Because a quarter of tablet users are paying for subscription and that’s incredibly important to take into consideration.
So, Apps versus web-based papers.
There are a lot of pros to each, Apps are a little bit snappier. They’re native. The only problem is, especially when it comes to magazines, if you want a native App, you will have to download that magazine.
The whole reason digital takes off is because of the real time aspect of it.
So, you get up to date information, and it’s never outdated.
If you have to download a hundred megabyte magazine every time you want to read it, it is easier to just go to a website to get real time update.
Financial Times is actually the first one to bypass Apple’s 30%. Apple takes 30% of the subscription through their Apps store. And Financial Times said, “We’re not having that.” So they built an HTML5-compatible publication. And users can actually go and subscribe. It’s formatted for the Tablet, and it works on all different types of Tablet and across multiple devices and smart phones.
And the New York Times is also experimenting with something similar.
So, let’s take a look at a case study.
The MIT Technology Review invested $124,000 on development for their iPad App.
Now, it is important to keep in mind that iPad in particular is built in iOs, which is built on Objective C. A completely different language than web developers are used to. And when you have a web development shop in-house, you’re going to need to either outsource that. Or you’re going to need to train your developers or you’ll need to hire someone else to come on. And that can get very, very expensive. It can take a lot of time. And there are risks involved.
If you take a look at The Daily, which was Rupert Murdoch’s tablet-based magazine, he spent millions of dollars, $20 million to $30 million dollars developing this and they just shut it down last week. Because the cost of maintaining that is not offsetting the amount of subscribers they are getting because it is too easy to go on the web and get free information.
With print it’s a little easier to justify a subscription for delivering papers to your house. You could see it. It’s tangible.
But now with the web, it’s so easy to get things for free.
It’s tough to switch people’s mindset into paying to get an online subscription, so that was part of the problem.
The other part of the problem was, again, those large downloads.
If you have a quick 10 minutes during your coffee, to read the newspaper or the magazine, and it’s going to take 30 minutes to download it to your device before you can even read it, you’d say, “Forget it.”
You are going to go to the web, you’re going to pull up the information instantly and you’re just going to consume that.
So, I think any sort of large download, for Apps on magazines and newspapers, is probably not the best idea.
So, in order to make it work, MIT needed 5,000 subscriptions, but it only resulted in 353 subscriptions.
Again it was expensive and time-consuming, so they are actually looking at HTML5-compatible solutions.
One of the things in developing Apps, you have Android, all the different screen sizes. You have to develop for Android, develop for iPad, develop for Windows. I’m talking about Windows’ Surface, we’ll see how the traction gets on that.
But, anyway, so you’re developing for several devices. Whereas if you are developing in HTML5-compatible websites that formats automatically to different screen sizes, with responsive design, then you’re really, really looking at a one-size fits all solution.
And the good news is a lot of HTML5 components are actually based on different languages for development that your developers may be already familiar with so you won’t need to outsource it.
So next episode, we’re going to be looking at Black Friday Tablets sales.
Was it the hottest item everyone expected? We’re going to look at everyone’s Christmas wish list, adults and children. And see what the hottest tablets are this year.
And we’re going to take a look at the holiday shopping on the iPads.
We all know that internet shopping has sky-rocketed once again. How much of that was done on iPad?
How much of that was done on the desktop?
Remember to connect on our LinkedIn group, follow us on Twitter, join our Facebook fan page or just go to TabletAdvertisingPros.com, sign up for the newsletter. And get all the latest updates on the Tablet Advertising Professionals group.
Until next week, have a great weekend and enjoy the holidays.
A Touchscreen is defined as an electronic visual display that can detect the presence and location of a touch within the display area. The term generally refers to touching the display of the device with a finger or hand. (http://en.wikipedia.org/wiki/Touchscreen)
TOUCHSCREEN TECHNOLOGY HISTORY:
The first person to develop the touchscreen in 1965 was E.A. Johnson. He developed a tablet which was used for air traffic control only until about 1995. In 1970 there came two engineers, Bent Stumpe and Frank Beck, who developed a touchscreen which only reacted to certain objects like a stylus and was utilized in 1973. Another touchscreen innovation was created in 1971 by Samuel G. Hurst which was a resistive touchscreen, called Elograph. This was only sold though until the early 1980s. In 1982, a multi-touch technology was introduced by the University of Toronto developing a tablet that could read multiple points of contact; and in 1984, Bells Labs developed another touchscreen. In the 1990s, another innovation happened when Andrew Sears, a computer scientist conducted a human-computer interaction study. Since then, improving the touchscreen technology continues.
In the late 2000s, Apple became responsible for the innovation of touchscreen. This was due to the introduction of iPhone, which immediately became a hit worldwide. Usage on ATM machines, GPS systems, cash registers, medical monitors already showed the possibilities for touchscreen.
The IPhone by Apple is considerably the most popular device in the touchscreen industry. This could be due to Apple’s keen understanding of what a user wants, needs and desires.
FACTS ABOUT THE IPHONE (From Statista):
The iPhone is an insanely popular smartphone. Introduced in January 2007 by Apple, the iPhone was the first phone to offer a multi-touch touchscreen interface which soon became the industry standard. The original iPhone ran on its own operating system called iOS which included a pre-installed set of multimedia and productivity applications. The platform was originally designed as a closed system but soon after the iPhone’s launch, independent developers introduced apps that added functions to unlock or “jailbrake” iPhones. Apple reacted and (reluctantly) opened the system to third-party developers in 2008. The Apple App Store was introduced shortly thereafter and quickly became an essential part of the iPhone ecosystem and a billion-dollar business for Apple.
In the 2011 fiscal year, Apple sold 72 million iPhones, which brought the total number of units shipped (to date) to 140 million. In less than 5 years the iPhone has become Apple’s most important product: in the 2011 fiscal year, iPhone revenue amounted to 47 billion U.S. dollars, representing more than 40 percent of Apple’s total revenue. More importantly, the Cupertino-based company managed to maintain a high profit margin in the otherwise low-margin smartphone industry, which has helped Apple become one of the most profitable companies in the world.
Apple’s strongest competitors in the smartphone market are currently Google and Samsung. Google introduced Android, an open operating system for smartphones in 2008, and although considered an iOS rip-off by some (including Apple), Android has become a huge success. Backed by smartphone manufacturers such as HTC, Samsung and Sony, the system quickly acquired a substantial customer base and is now the leading operating system for smartphones with a market share of over 50 percent. Samsung, on the other hand, is the leading manufacturer of Android devices and has become the world’s largest smartphone vendor in the 3rd quarter of 2011 . Apple dropped to second place, although the iPhone 4, and surprisingly the iPhone 3GS, have remained the two best-selling smartphones in the United States according to the NPD Group.
Another great innovation from Apple is the IPad, which would be considered a device that is more of the “I” than the “Pad”, hence its reign in the market. This Just like the IPhone, it is the user’s individual wants, needs, and desires which were greatly considered in the invention of the IPad. This device’s success could truly be pictured in its sales growth since it was introduced in January 2010.
Apple released these figures periodically (usually around its quarterly financial reports). This list tracks the dates and totals of Apple’s announcements of iPad sales (sales figures are cumulative sales all time, not for a specific period) and is approximate.
Sept. 21, 2012 – 84 million
April 2012 – 67 million
January 2012 – 50 million
October 2011 – 32 million
June 2011 – 25 million
March 2011 – 19 million
Jan. 18, 2011 – 14.8 million
Sept. 2010 – 7.5 million
July 21, 2010 – 3.27 million
May 31, 2010 – 2 million
May 3, 2010 – 1 million
April 8, 2010 – 450,000
April 5, 2010 – 300,000
Today we are examining the question, “Are Tablets Mobile Devices?”
Which direction is the advertising dollar moving right now? Are they moving towards smart phone? Tablet?
Apple knows their audience. This is demonstrated in the autolock setting on iOS. Autolock of iPhone vs that of iPad show that iPhones are used for very short tasks so the autolock is a much shorter time.
What are smart phones for? The top four uses are: Accessing local information, searching for information, finding local services and reading entertainment. These are cases where you are in the store and you need information. These are time sensitive.
What are tablets for? Reading news, searching for information, watching videos and research. These take more time and are not time sensitive. You can do these in a relaxed setting.
Let’s look at shopping activities on tablet vs smartphone
Review and item, purchase an item, research an item takes more time for tablet than for smart phone. While checking price and finding a store took less time for smart phones, this shows that people don’t go around stores with their tablets while looking for what to buy. They would use their smart phones for that.
Mobile web browsing
Tablets are the king of web traffic. An article showed that Apple’s iPad makes up 54.5 % of mobile web traffic, compared to 19.05 % from iPhone and 26.45% from other devices.
So just because there are more Androids in market, it doesn’t meant that they are generating more traffic.
iPad is the King of Kings
iPad continues to dominate tablet web traffic at 98.10 % usage. This is incredible considering that they only have 50 % of the market share
Business Insider released a chart showing positive growth for all devices but the most growth is expected in tablets.
Browser based advertising is expected to be lower compared to app based advertising. Projection in 2016 has 51% for app based advertising over 41% of browser based advertising.
Next week we will look at new tablet releases, tablet newspapers and tablet magazines. Is their future app or web based?
Topics for this episode:
1.Tablet PC Market (Including the new iPad Mini)
2.iOS vs Androids
3.Cross Platform Ads
Tablet Marketing Device
There are many different manufacturers. You need to know which ones you have to pay attention to and which ones you can ignore.
iOS vs Androids
Tablets have operating systems and there are two main players. There could be changes now that Microsoft has entered the market.
Cross Platform Ads
You have to ask if you should build an ad for every different single device or if you should consider focusing on an ad that works on a browser that is cross platform compatible and works on all devices, including smartphones and desktops.
Among the tablet manufacturers, there are several major players involved. These are Apple, Google, Samsung, Amazon, and Barnes and Noble. These 5 manufacturers have both iOS and Android operating systems and Apple is #1, Samsung is #2, Amazon is #3, Asus is #4, and Barnes and Noble is #5. This was taken from a chart where the study was created prior to the release of Windows Surface and Google’s Nexus 7 in the market. When the information gets updated, there could be a lot of changes. Next year could reflect a new list which does not include Barnes and Noble. Windows or Google tablet could become part of the 2013 list of Top 5 manufacturers.
The study has displayed a chart wherein Apple had the lion share at 64%. The rest of them are spread out and this is 2012 year to date.
Introducing the iPad Mini
This is a new product introduced. Its screen size is 7.9 inch diagonal. This is 35% larger than the Kindle Fire which has a 7 inch screen. The resolution is okay. You got all the apps and everything runs the same way.
What does this mean for tablet advertising? We have to look at the way people consume data in different devices.
iOS vs Android
In 2011, there was another study about Tablet Ownership by Brand. Here, Apple had over 80% of the tablet market, while Android had 15%. The rest was dispersed to other manufacturers.
In 2012, Apple is down to 52% while Android exploded to 48%. By next year, there is a prediction that Android will overtake the iPad in the market share.
The right question to ask the advertisers is this: What are the people consuming and where are they consuming it? A large number of Androids may proliferate in the market, but we need to know if the people are consuming the content or if they are looking at the ads?
Recent findings show that 91% of tablet web traffic share come from the iPad. So even the operating system on tablets is about 50-50 split between Apple and Android devices, there is a higher traffic for the web, and if you are building ads, it will pay to consider this.
Cross Platform Ads
It will be best to build an ad that works on all these devices instead of having to create one specifically for each device.
This is cross platform compatible. You develop it for one, it works on everything.
Apple’s market is decreasing but we have to note that the quality of traffic and engagement is still much higher on Apple devices.
Next week we will talk about tablets as mobile; iPhone vs iPad, and Mobile Browsers and how it affects tablet advertising.
We have more to offer, so subscribe to our podcast for a continuing series of topics that discuss what’s happening in the market and the right devices to use that bring in quality results.
Here, at Episode 3 – Building Viral Ads with Social Media by the Tablet Advertising Professional Podcasts, we’ll try to understand how to build ads that really, well… go viral.
Yes, we all know how social media platforms have changed the way companies build their brands, all of these social media platforms promise that they can deliver the right traffic and reach the right target audience.
Here, we have the top 10 brand movers on Facebook, the top 10 brand movers on Youtube… each with their own success story.
But choosing the best one for your business, the one that can make your target customers tick, the one that would make them want to spread the word about you – that’s the key.
We’ll take a look at the top social networks.
In this podcast, each social media platform will be broken down by verticals. We’ll try to understand the best places where different companies can showcase their brand. And we’ll analyze if we’re really reaching the right target audience.
But it doesn’t stop there.
Let’s face it, who would want to sit down and listen to non-stop company advertisements that are just simply about themselves without any attempt to understand what their target audience really wants?
What matters now is not what you are saying about your company and the products or services you offer, but it’s more of how you are viewed by the market. Even if you talk 24 hours a day, 7 days a week… if nobody cares to listen, your company’s marketing efforts are facing a huge blank wall.
So how do you make your target audience talk about you?
We build a small community based on something that your target audience is interested in. You’ll capture their interest and bring them all together using social media. That’s when the buzz starts…
A strategy is very important, and so we put together some case studies and companies and brands that really did a great job of that. We can all learn the tactics that they used which we can borrow for our own brand and for our own advertisements.
The important thing is, we must never leave our audience hanging.
Create calls to action that will compel them to really lift a finger and do what you want them to do.
And don’t stop there, encourage them to share via text or email. Let them circulate your brand.
You can only do this if you get people so intrigued to really want to explore your ads a little bit more.
We’ve also included Ad Age’s quote, to give you a glimpse of what really goes on within these social media platforms’ small groups. Those activities that look like ripples and eventually grow big.
Learn how you can go after small groups, understand why you need to go after multiple influencers, and gain clarity on why you need to be on multiple social networks.
There is a science, and there is a strategy in everything. There are things you can do to make your ads or your campaigns, or your videos or whatever you’re trying to do, go viral.
And using tools like Hootsuite with these social media platforms can make your life a lot easier!
Remember people connect with people NOT BRANDS!
And for next week’s podcast…. It’s all about tablet devices, ipad mini and advertising that will work no matter which device you’re on.
For more valuable information that will give you that “A-ha!” moment, be sure you subscribe to the Tablet Advertising Professionals Podcast
Follow AdGent on Twitter or Facebook as well, and you’ll get tons of ideas on building social engagements that will bring your desired results!
We welcome you again to the Tablet Advertising Professional Podcasts.
For episode 2, we’ll be talking about the topic: Engaging Interactive Ads.
We’ll be reviewing:
Tablet Engagement Rates
Building engaging ads
Plus a Travel case study
We all want an ad that looks simple, yet creates a lasting impression. One that touches the target audience’s heart and plays with their imagination.
It’s really a bit tricky. But bottom line is that our audience is not just mere onlookers anymore, but rather participants who have the need to feel engaged, who want to take action.
The challenge we have right now is: How can we create, or add little things that can make a huge impact on our advertisements?
The most common tablet ad formats that we have are the expandable and the banner ads. But then there are also the interstitial ads that definitely present lots of opportunities and potential.
We can analyze how the table engagement rates go and we can see that expandable ads – poetically at a mere touch of the fingers, show more engagement.
The key thing is that we find ways on how to keep our customers glued. How for that one precious minute we have their full and total attention.
Ads with video are sure-fire winners. And it’s quite interesting to note that call-to-action buttons that use a finger slide instead of a tap can produce more online registrations.
I guess as humans, there’s always that innate need for us to connect. That’s why anything that involves touching is sure to create positive results.
Try to include videos, games, catalogues – and see how those changes can make your audience give you that precious one-minute of solid attention.
It’s becoming a reality that and less people like to read. And text is not going to do it anymore when it comes to advertising.
So for this week’s podcast, watch and learn how small changes can really create a huge impact. And how that precious 1-minute of attention we actually get from our audience can have a huge impact in your business.
So for next week’s podcast, be sure to tune in again, as we talk about:
Social Media Opportunities Through Tablet Advertising
Plus Amazing Examples that will surely to inspire you.
Feel free to connect with us on LinkedIn, follow us on Twitter and connect with us on Facebook.
And please do subscribe to our newsletter. There’s a lot of information that we know you’ll find valuable.
Welcome to the Tablet Advertising Professionals Podcast!
Tablet Advertising Professionals is a group dedicated to all things that have to do with tablet advertising. We’re here to guide you in making your advertising and marketing choices, and in making your brand stand out.
And now for Episode 1, we’ll be talking about tablet advertising. Whether it’s for iPad or android devices, whether it is app or browser based, we’ll cover them to ensure that you get the most information you need in making your business decisions.
We have seen in the past years how the tablet’s market has grown. And looking at the numbers, we now know that they do really matter. It’s all about where the marketing dollar should go, and where the advertising dollars should be as well.
And we now get a clear comparison between Apps versus tablet browser. And why they do matter in advertising.
Customers nowadays want more interactive ads. They want to be more involved. And we are all witnesses to the growth of iPhones, iPads and android devices.
And since Flash doesn’t work on these devices, we’ve seen a decline in its use. Conversely, HTML5, which is cross-platform compatible, enjoys increased popularity.
Annual tablet sales are on a steady rise. And annually, we’ve seen growth that could potentially bring tablet sales to 300 million by 2015.
Statistics show that more than 46% of iPad owners are now actually using their iPads as their primary computer, and they are more satisfied with iPads than any other tablets.
Interestingly, most iPad owners live in households with an income of $100,000 or more. That says a lot about the tablet demographic.
When it comes to advertising, display ads are no longer as attractive. Users want more action. They want to be more engaged. And interactivity is now playing a big role when it comes to advertising.
It’s not about advertisers giving their sales pitch anymore, we now have more engaged users who also want a piece of the action.
Let’s look at the pros of advertising in Apps.
Here’s a sneak peek. It’s faster. We can gain access to native device features, and it’s so simple to use. But then all the information is isolated making searches difficult to track.
With advertising via tablet browser, you can get easily connected and it works across all platforms. But then again, it can be potentially slow, less “sexy” and there’s a lack in quality control.
It is interesting to note that 60% of tablet users get their news from browser VS 23% from apps.
At the end of the day, what matters most is whether a great user experience was achieved.
For next week’s podcast, get ready to learn more about Tablet Engagement Metrics,the tips and tricks on how to build engaging ads, and we’ll present a case study that will bring us to the pros and cons of using a tablet or a desktop.
Subscribe to our podcast, and you’ll get tons of ideas on building social engagements that really bring in results!