When Google acquired Android Inc. in 2005, no one could have predicted the success story it would go on to become. With the 2008 launch of the HTC Dream, the first commercially available handset to run Android, Google’s operating system went from strength to strength, slowly but surely biting into the Apple market share. According to a recent Guardian report, about 42 million Android devices were activated in December alone, suggesting that there are now just less than 280m active Google Android devices worldwide – that’s 47% of the market share. [1]

Of course, we’re not just talking about mobile phone devices. Now tablets and e-readers account for a huge share of tech sales, and with a number of tablets running the Android OS stealing customers from Apple’s rival iPad, there is no doubting that Google Android is packing a huge punch in the market. But why? Here’s what we’d put Android’s success down to:

ANDROID

Google released the Android code as open source, and it is this that lies at the heart of the battle between the Android OS and Apple’s iOS. Unlike Apple, with Android, compatibility is the name of the game. The so-called ‘Android Open Source Project’ (AOSP) is led by Google, with “the goal to create a successful real-world product that improves the mobile experience for end users” and ensures the continued compatibility of all Android devices. Google also heads up the Open Handset Alliance (OHA), a consortium of 34 companies, including HTC, Sony, Dell, Intel, Motorola and Samsung, committed to developing open standards for mobile devices.  On the surface of it, the majority of users won’t even be aware of the open source nature of Android. However, for a number of reasons, it has a profound effect on the service they receive:

- Fast reactions

There is a huge community of developers able to write apps that extend the functionality of Android devices. So instead of just one company working on the code, an unlimited number of people are able to do so, meaning that open source software tends to be more secure than proprietary software because thousands of developers are monitoring the code every day. As a result bugs in the software are quickly fixed.

- Creativity

The open source nature of Android means that developers’ creativity is encouraged rather than quashed. Working with the open source Android code gives developers a huge amount of freedom to produce exciting new apps.

As of October 2011 there were more than 400,000 apps available for Android, and the estimated number of applications downloaded from the Android Market as of December 2011 exceeded 10 billion [2,3] – a measure of the popularity of Android with developers and customers alike, and therefore with brands interested in investing in apps.

- Freedom

So long as the user gives approval at installation time, Android apps are free to do whatever they want, i.e. ‘accessing the internet’ or ‘reading the state of the phone’. Apple apps, on the other hand, are tightly restricted – they are not allowed to communicate with each other for any reason, or run in the background. The increased functionality granted to Android apps, makes the possibilities for developers and users far more wide-ranging than their Apple counterparts.

APPLE

However, Apple is still indisputably a world leader in the tech field and still boasts the largest market share. So how can Apple fight back against the attack of the Android?

- Love

Apple has the so-called ‘sticky factor’ – the addictive desirability of its products that keep customers coming back to them time after time because they love the brand.

- Money-making

Whilst the open source Android offers many advantages to developers, Google has not yet made an app market that makes publishers more money than Apple, so developers are continuing to pick iOS over Android because it is here that they can make the most money.

- Upgrade time

The upgrade path from developer to user is much shorter for Apple users. Android upgrades have to go from Google to the phone manufacturers to the carriers to the devices, whereas iOS upgrades can be sent from Apple directly to devices. As a result, Android users can’t get an upgrade until they buy their next phone, whilst Apple users don’t have to wait.

- Innovation

If there’s one thing that Apple represents, it’s innovation. The consistently exciting new Apple releases, such as Siri, iCloud, iTunes Match and iMessage, ensure the successful future of Apple. As long as people still believe they are getting the latest, and the best, from Apple, they will continue to remain loyal members of Team Apple.

So when it comes to one of the biggest battles of the 21st century tech world, one that defines and divides the tech universe, there’s a real dichotomy – and the choice is yours. Whilst Apple is all about making it as easy as possible for the user, Android’s motto is “it’s your phone, you have the right to do whatever you want with it”. The choices they make over the next few years are critical for both operating systems. Will Apple endeavour to let go of the reigns a little and increase compatibility? Will Android be able to improve its ‘sticky-factor’ so that customers come back time and time again? We don’t know, but it’ll certainly be an interesting ride.

[1] http://articles.businessinsider.com/2011-12-30/tech/30571342_1_android-platform-smartphone-windows-phone#ixzz1ihCS2ozs
[2] http://www.t3.com/news/android-market-reaches-500000-app-mark
[3] http://www.wired.com/gadgetlab/2011/12/10-billion-apps-detailed/

Phillippa Holmes
Account Executive, Golley Engage

Customer services on Twitter

More and more consumers are turning to Twitter to complain about poor customer service, particularly when they feel let down by existing channels. However, few companies have the infrastructure in place to manage queries directed via social networking sites. The company will need a specific workflow that feeds complaints made via social media into the traditional customer service process and ensures that queries are resolved efficiently and communicated effectively.

It is important that responsibility for each complaint is communicated internally right from the off, as often the social media manager will not be the person dealing directly with the case, but will need to constructively communicate any developments to the consumer. It seems that at the very least consumers expect a response from businesses when they engage with them through a brand social media channel, regardless of whether that platform is an official customer services outlet. It is therefore imperative that every brand carries out an online reputation audit and highlights any potential hotspots, allowing brand managers to implement processes for responding to consumers.

Mobile enabled site

Just under half of the UK population now owns a Smartphone, and Google’s mobile operating system Android is powering half. Consumers are using mobile internet on the move and so it makes sense for businesses to ensure that at the very least their site and store locator is negotiable via a smart phone device; and that the site or app is compatible with both Android and iPhone technology. Mobile offers brands a real opportunity to be useful to their customers. Using existing technology such as QR codes and near field communication, retailers should look to alleviate consumer bug-bears by helping customers check availability or price compare. Businesses can use advertising as a prompt to launch local store locators, or to fulfil an online order for a consumer who can’t find the right item in store. Businesses are really missing a trick if they do not target customers on the move.

Rewards

Consumers expect rewards for showing their support of a business or service online. A recent survey amongst consumers who are ‘fans’ of businesses online found that 65 percent of respondents are connecting with brands to take advantage of promotions, contests and games. Whether it’s an offer, a voucher code or simply a free prize draw, if you are looking to extend your brand presence online then it is valuable to offer an incentive. Consumers are used to being rewarded for participating in brand related activity online, and therefore are most receptive to companies that offer useful or entertaining apps, fan pages or online services.

A social experience

The growth of social networking has shown that, given the right tools, consumers will participate in conversations and share with friends. In order to be more social, brands should put the user first – responding to how users socialise online.

When shopping for a new dress online, a customer will search for information from a range of sources to decide what to buy. They may browse fashion websites, ask for recommendations from friends, look at celebrity blogs or pictures or look for advice through Facebook/Twitter. It is therefore important that a brand looks to replicate this process through their online marketing activity. This could include signposting customers to product reviews or allowing them to connect with like-minded individuals through a forum or Facebook community.

Making reviews and opinions an integral part of the shopping experience replicates offline behaviour where users will often seek the opinion of a friend before purchase. It is also important that the brand can be contacted with ease and those questions or queries are resolved efficiently. A major part of the social experience is about opening a two-way dialogue.

[1] Practical Ecommerce, January 2012 http://www.practicalecommerce.com/articles/3255-Social-Media-Users-Look-for-New-Products-and-Offers-Survey-Finds

Lindsey Reaney
Account Manager, Golley Engage

Having launched in New York in September 2011 (with a UK release expected early 2012), the Kindle Fire is likely to be the latest must-have on Americans’ wish lists this Christmas. This is largely due to its cost of $199 compared to the most basic version of the iPad 2’s recently slashed price of $458. Amazon’s lower price reflects the fact the Kindle Fire has a smaller screen than that of the iPad (7inches compared to 9.7inches) and is Wi-Fi only (so no 3G). Lack of integrated camera also means you can’t make video calls, and it features a stripped-back version of Google’s open-source mobile operating system, Android.

Considering the Kindle Fire as a potential iPad-defeater on specs alone, it doesn’t have what it takes. But the reality of the situation is that Amazon isn’t exactly going for Apple’s consumer base… yet. Instead it’s targeting those who are reluctant to spend out vast sums for a tablet computer. This may be because they aren’t keen on the Apple brand, or that they simply don’t value the benefits of touch screen computing as highly as its price. The Kindle Fire is also likely to capture those consumers who were already tempted to buy Amazon’s popular range of e-readers. With a low price the device is very much in the “impulse buy” category, which is likely to encourage hesitant consumers to go ahead and experiment.

In many respects Amazon is doing Apple a favour. The company’s move is likely to result in a growth in the overall tablet computer category. Potentially enlightening consumers to the value of using computers this way, it will create a better target market for Apple in the long term. However, this is early days for Amazon and it’s likely that the company will release an upgraded alternative within the next 12-16 months. It is anticipated that the next incarnation of Kindle Fire will be 3G-enabled – allowing consumers to download Amazon’s vast catalogue of books, music and movies on the move – and in the process go one step further in competing against the iPad.

Research has shown that mobile commerce looks set to grow by 55%[3] over the next five years. Traditional e-commerce relies heavily on consumers having time on their hands to browse and an affinity to a particular website or brand, m-commerce is proving much more impulsive. If consumers see products they like for a reasonable price, they buy – there and then. In short mobile offers a great opportunity to connect with consumers on-the-go.

Source: Forrester Research

Just under half of the UK population now owns a smartphone, and Google’s mobile operating system Android is powering half – followed by RIM’s BlackBerry models with 22.5% and Apple’s iPhone at 18.5%. These smartphones are GPS enabled and offer brands the unique opportunity to connect to consumers through location-based targeting. By focusing your advertising spend within a small geographical area, targeting a specific audience profile, you can communicate with consumers in an extremely cost-effective manner.

Consumers are increasingly becoming reliant on their mobile devices, 90% of consumers in the UK have their mobile phone to hand while they are watching TV,[4] and a recent report by the Science Museum placed the mobile phone in tenth place on the list of things UK consumers could not live without – polling higher than central heating or painkillers. Whilst this confirms the mobile offers an incredible opportunity to reach huge audiences, brands need to exercise caution when engaging with consumers through their mobile devices. Consumers are much more likely to find commercial messages intrusive, and once they are turned off they are unlikely to switch back on.

Instead, m-commerce should aim to capitalise on existing opportunities to further engage the customer and should, above all else, place the consumer at the centre. Consumers are using mobile to seek out further information in store, so using existing technology such as QR codes and near field communication, retailers and major brands should look to solve consumer bug-bears. M-commerce offers retailers the opportunity to use advertising as a prompt to launch local store locators, or to fulfil an online order for a consumer who can’t find the right size in store. Savvy brands will be looking to do more than just advertise on handsets, they will instead need to target users with effective marketing campaigns whilst on the move. 2012 is not just the year of m-commerce, it is the year of cross platform, integrated, consumer-lead marketing.

[1] http://www.guardian.co.uk/technology/2011/oct/31/half-uk-population-owns-smartphone

Lindsey Reaney
Account Manager, Golley Engage

At a rumoured £550 on pay-as-you-go and £35 a month on a mobile contract, the device certainly doesn’t come cheap. While it’s unlikely to put off hard-core gamers, the handset, dubbed the ‘PSP Phone’, is likely to struggle to attract casual gamers who prefer the simplicity of games such as solitaire and Angry Birds (not to mention the fact that they’re free to download). These have the advantage of being quick and easy to dip in and out of, especially on the commute to work.

One obvious way in which Sony could grow the appeal of a PSP Phone would be to drop the price. However, another strategy would be to use PSP games to drive greater awareness and loyalty to the Sony Ericsson brand. Perhaps offer ad-sponsored games for free, but only to owners of these specific handsets. An added advantage is that it would allow the brand to distinguish itself in a market that is increasingly saturated with competitively priced, well-designed, Android smartphones. Watch this space.

Jim Clark, Research & Insight Analyst

David Carr of The New York Times wrote recently that Apple’s tablet would be nothing less than “the second coming of the iPhone, a so-called Jesus tablet that can do anything, including saving some embattled print providers from doom.”

The result, after the launch of this new piece of voodoo from the people at the forefront of technology has been a monumental disappointment. It seems to be no more than an electronic book, magazine or newspaper – with internet access and a few nice apps and a screen that will screw your eyes up in about 15 minutes!

What’s interesting is why some of us expected so much more from a new gadget. I suspect this is because for some people, technology has become a kind of religion. We may not believe in a God anymore, but just as 500 years ago the Spanish missionaries put shiny mirrors in churches to dazzle the Incas and draw them in – we still like to see shiny new things that fill us with awe.

We’re living in an age of change and upheaval – yet technology gives us the illusion of control, a sense of order. Pick up a smart phone or turn on your laptop and you have a reliable, dependable device that does whatever you tell it to do. And no wonder a lot of people in the media wanted to believe that a new device from Apple could stop the decline of our industry’s Newspapers and magazines. Both are struggling to adapt to the Internet, and no one has any idea what our business will look like when we get to the other side of this wrenching period. The iPad may very well be the answer …….. eventually. But not from day one – and not until you get one free when you sign up to a year’s subscription of …. whatever.

It says more about us and what we have come to expect from Apple than Apple itself. Yet Apple did not invent the MP3 player, and they where not the first to think of distributing music over the internet. What they did was make it ‘cool’. In a world where Apple only have a 5% share of the mobile market and about the same in home computing – I don’t think the iPad is the savior of the printed word. But its quite cool. Should have called it the iWant.

Online is the prefect testing ground of this theory for many brands to collaborate with individuals and communities who share a common passion.

Apple opened up the source to its iphone and now they can claim over 90,000 applications for the iphone, the majority of which have been developed by consumers for consumers. When Vodafone tried to do this internally with a team of over 500 developers they arrived after 1year of development with zero, that’s right zero applications for their Vodafone live service!

And more recently a company called Local Motors has built a car called the Rally Fighter which has been designed and specified purely from thousands of ordinary people, who happen to be car nuts, submitting ideas, plans and concepts to the company’s website. Those that came up with the best and most significant ideas won cash prizes. The whole venture has taken about 14 months and about $2m to take the car from a sketch to the finished item. And there are already more cars in the pipeline.

 But even though these are great examples of successful product developments, brand owners are still reticent to let go and try this approach, they cling to teams of researchers and business analysts to inform their strategies and plans ,yet increasingly consumer knowledge outweighs expert knowledge and has more relevance and saliency.

So why not collaborate with the end users, ask them what they want and how they want it and cut out the “middle man” and develop your new products at a fraction of the cost and in a fraction of the time and with a ready audience of buyers!

The time for a new product development model is upon us.

Chris Lovell, Group CEO