Mobile media is growing more important to consumers
Mobile media is becoming more important to consumers on a seemingly daily basis. Mobile video, websites, games, and social media services have become integral parts of a society that is becoming more reliant on technology. New analysis from Strategy Analytics suggests that mobile media will reach a new milestone in the near future. The growing popularity of mobile games, mobile commerce, and entertainment applications will contribute greatly to the growth of mobile media.
Firm predicts growth of global mobile media sector
According to the firm’s analysis, spending on consumer mobile media will reach $200 billion worldwide by 2017. The growing number of media-centric mobile devices will contribute to this growth as well as the more flexible data pricing plans coming from telecommunications companies. Various forms of mobile media will also contribute to this growth, with entertainment mediums likely to see the majority of consumer spending.
Smartphone and tablet penetration will power growth
The mobile sector will see some major challenges in the future, according to the analysis, as companies begin bringing mobile-centric services to markets where smartphones and tablets have not yet become popular. In these markets, feature phones are the dominating force, and these mobile devices have limited access to media of any kind. The challenge that companies will face in these markets is encouraging consumers to embrace smartphones and tablets, but many people may not be inclined to do so because of the cost of such devices and the cost of the data plans they are associated with.
New mobile marketing opportunities to emerge in future
The firm predicts that mobile advertising will become more important as mobile media itself grows. New advertising opportunities are expected to emerge as more consumers embrace mobile technology. The first estimates that mobile advertising will account for 18% of total media expenditure by 2017, reaching $42 billion. This growth is expected to continue into the future, especially as more consumers become involved in mobile technology.
Wallet has yet to find traction in mobile commerce
Google has been a big name in the mobile commerce space, but not necessarily a well-loved name. The company’s Wallet platform, which exists to facilitate mobile payments, has been the recipient of harsh criticism since its launch. The early days of Google Wallet were plagued by serious security issues that drove many consumers to other mobile commerce platforms. While these issues were ultimately resolved, Wallet experienced other hardships that made it unpopular with consumers, with companies like Verizon refusing to support the mobile commerce platform for various reasons.
Google continues to invest in Wallet platform
Google may have a strong interest in mobile commerce, but the company has not been able to find any significant traction in this sector. Google has invested more than $300 million into the Wallet platform, which also includes the acquisition of companies that had specialized in application development and mobile commerce. The company has also devoted more than 100 developers to focus solely on the Wallet platform. Despite this support, the Wallet has only seen 10 million downloads worldwide, a very low number in the mobile space.
Wallet fails to enthrall consumers
One of the reasons that Google Wallet has not become the dominating force in the mobile commerce space has to do with U.S. telecommunications companies. Few of these companies are interested in supporting the Wallet due to the other alternatives that are available. Lack of support means less exposure with consumers, which means that fewer people even know that Google Wallet exists. In the case of Verizon, AT&T, and T-Mobile, these companies have teamed together to launch their own mobile commerce platform called Isis, which has thus far proven to be somewhat more popular than the Wallet despite a very limited release.
Google may abandon Wallet platform, eventually
The Google Wallet was once considered by Google to be the key to mobile commerce success, but the platform has become a serious money sink for the company. It is uncertain how long Google will continue to devote money to the Wallet platform, but the company has not yet shown any signs of abandoning its mobile commerce endeavors.
