The mobile content market is fast reshaping itself thanks to the continuing advance of smart devices -- from so-called "superphones" to tablet-style computers, led by Apple's iPad -- and the growing availability of mobile broadband networks. An improved user experience and the ability to access an ever-expanding universe of content from the cloud mean that consumers have to make increasingly fewer compromises when it comes to the consumption of games, music, and video. More and more, they can play, listen, or watch when, where, and how they want.
These trends will attract many new mobile content consumers in the next five years. In turn, the growing base of users consuming games, music, and video on their mobile devices will lead to new opportunities for publishers and marketers alike, from subscriptions to downloads to advertising. But capitalizing on these opportunities requires some strategic decision-making.
First, publishers and marketers need to recognize that mobile is part of a larger multiplatform ecosystem, and they have to understand where and how mobile content consumption fits within that ecosystem. To some degree, effectively reaching mobile content consumers means keeping pace with the ways they want to access and use content. And increasingly, the emphasis here is on accessing content rather than owning it. Companies such as Netflix, Hulu, and Pandora understand the need to seamlessly deliver content on-demand or via subscription across TVs, mobile, and PC.
Second, figure out the delivery mechanism. Smartphone owners still represent a minority of all mobile users (25 percent in the U.S., as Q2 2010, according to Nielsen), but they are far more active than non-smartphone owners when it comes to gaming, listening to music, and watching video. Consequently, as smart devices come to dominate the mobile content landscape, there will be a growing emphasis on apps as a content delivery mechanism. Games, music, social networking, news, weather, and maps tend to be the most popular app categories, regardless of device, which provides some clues about not only where to advertise but also the types of marketing vehicles likely to resonate with consumers.
Third, solve the monetization question. Free or fee is the central question with all digital content today. In mobile, the focus on smart devices and apps gives that question an added dimension. With the exception of Android Market, the majority of available apps on all smartphone platforms are paid. Yet, app downloads are tilting decisively in favor of free apps. Pyramid Research found that free apps increased from 30 percent of total downloads in 2008 to 54 percent in 2009, and it projects that the proportion of free apps will level off near 80 percent in 2014. This puts a premium on having a small number of very successful titles, an extensive back catalog of paid apps that capture long-tail searchers, and a comprehensive strategy to monetize free downloads.
Finding the right balance between free and fee is in many respects the trickiest proposition. Either way, the value proposition to the consumer and any potential trade-offs have to be clear.
Interested in more mobile content trends? Read my latest eMarketer report, "Mobile Content: Games, Music and Video Take to the Cloud."
Noah Elkin is a senior analyst at eMarketer, where he covers trends in mobile marketing, content, and commerce.
On Twitter? Follow Elkin at @noahelkin. Follow iMedia Connection at @iMediaTweet.
