Author: Denny

IBM report sheds light on growing mobile commerce field

| April 29, 2013

IBM mobile commerce reportMobile commerce experiencing strong growth in retail

IBM has issued a new report concerning the growth of mobile commerce in the retail sector. The report — “Online Retail Index” — shows that mobile commerce has been growing in popularity among mobile consumers that favor their smartphones and devices over traditional means of shopping. Many of these consumers have become very comfortable with the concept of shopping online but are becoming less likely to remain tethered to stationary computers while doing so. Mobile technology has allowed these tech-savvy consumers to shop wherever they are, enabling them to shop more frequently and, in some cases, spend more money.

Tablets contributing to expansion of mobile shopping

According to the IBM report, mobile commerce grew by 31% in the first quarter of this year, up from where it had been in the same period of 2012. The report notes that growing tablet use is a major contributing factor to the growth mobile commerce is experiencing. Many consumers consider tablets to be convenient mobile shopping platforms. Larger screens offer better functionality with conventional e-commerce sites, making these sites easier to navigate removing some of the problems consumers have had with purchasing products.

Online sales are becoming increasingly mobile

The report indicates that mobile commerce now accounts for 17.4% of all online retail sales. This is expected to grow in the future as more consumers become acclimated to the concept of mobile shopping and purchasing products with nothing more than their smartphones or tablets. IBM predicts that growth will be sustained by retailers’ ability to provide consumers with a positive shopping experience and their ability to cater to tablet users.

Interactive technologies help attract consumers to mobile commerce

The IBM report notes that the use of interactive technologies, such as augmented reality and QR codes, has helped boost the adoption of mobile commerce. These technologies have been able to engage consumers in a new and dynamic way, encouraging them to make purchases of products that they are most interested in. In the case of QR codes, consumers have been able to make use of retailer discounts at a higher frequency, as long as they purchase products from a mobile device.

Financial woes for Zynga mount as shift toward mobile games continues

| April 28, 2013

zynga mobile gamesZynga’s future in mobile games may be turbulent

Zynga is in the midst of transitioning from social games to mobile games, but this shift has proven somewhat turbulent for the once popular developer. The company has targeted the mobile space as the ideal environment, wherein it can once again establish dominance in the gaming field. This comes after its fall from grace with Facebook and the subsequent crash of its status in the social gaming field. Mobile games do hold strong potential for the developer, but mounting financial problems could derail Zynga’s plans for the future.

Zynga posts decline in revenue

Zynga’s revenues for the first quarter of this year have declined by 18% year-over-year. During the first quarter, the company pulled in $264 million in revenue, but managed to report net income gains due to the continued performance of FarmVille 2, one of Zynga’s most played social games. Nonetheless, declining revenue presents a problem for Zynga, especially as some analysts suggests that the company will continue to report declines in revenue through the remainder of the year. Falling revenues could have an impact on Zynga’s ability to enter into the realm of mobile games.

Developer not likely to see gains through 2013

According to Zynga CEO Mark Pincus, 2013 is a transition year for the company. Pincus does not predict that Zynga will post promising results throughout 2013 until the company can establish a strong presence on the mobile gaming front. Currently, the developer does not anticipate any significant problems entering into mobile games, but development is rarely an inexpensive venture and producing games that do not end up a hit with consumers could lead the company into troubled financial waters.

Consumers wary of mobile games produced by Zynga

Zynga has the long term in mind when it comes to mobile games. The company is currently developing several titles for various mobile platforms, hoping to find the same success with mobile consumers that it had seen through social networks. Consumers remain wary of Zynga, however, as the developer has often been accused of blatantly copying other, more popular games in order to appeal to the interests of gamers.