The future of mobile: 5 trends that matter most

Mobile data services are reaching new heights with richer, more personalized choices emerging daily. Traditional businesses across all industries are starting to make mobile messaging an integral part of their communications strategy to build customer relationships. Clearly, the demand for mobile services is on the rise and the “mobile lifestyle” has undoubtedly become main stream.

Several noteworthy developments have impacted the mobile ecosystem over the last few years, such as the growth in advertising and applications. Let's look at the top mobile trends that will continue to shape the industry.

1.     Mobile payments become a competitive billing option

As devices continue to evolve and mobile apps grow in popularity, there is a tremendous opportunity to expand the marketplace for operator billing with two options: bill-with-mobile and bill-through-mobile.

Bill-with-mobile lands the charge on the operator bill, ideally through a direct billing relationship of BOBO (Billing on Behalf of). BOBO is the most advanced form of mobile operator billing and can significantly streamline the purchasing process, a key contributor to consumer satisfaction. Mobile operators' established billing relationships and high brand credibility with subscribers are clear competitive advantages. By offering BOBO functionality to trusted partners, mobile operators can leverage and monetize this unique advantage and establish a stronger position in the mobile value chain.

For higher value transactions, bill-through-mobile is an untapped market that enables merchants to leverage the mobile device and user payment credentials to charge traditional funding sources like debit or credit cards.

Application stores present a particularly attractive segment for both bill-with-mobile and bill-through-mobile options. In-application billing provides an excellent opportunity for the developer community (and mobile operators) to monetize free applications using the "freemium" model, which offers basic downloadable digital products for free, while charging a premium for special features, and is popular in other parts of the world. In order to sustain this growth, players in the app market must address this critical issue, and BOBO (Billing On Behalf Of) will play a key role in the future of mobile purchasing and billing methodology.

In order to achieve a successful mobile purchase experience, merchants must offer an easy, safe, and ubiquitous payment mechanism. Consumers are eager to adopt and use mobile payments beyond digital goods. The time is right for merchants, provided interchange rates and payments terms become more competitive with traditional payment methods.

2.     Messaging becomes mainstream

According to research by Ovum, mobile subscribers send and receive more text messages in a month than they make phone calls. Although the application (business)-to-person (A2P) messaging market has lagged behind P2P (person to person), traditional brands, media and enterprises are now embracing messaging. This second wave is recognizing and building on the success of previous mobile marketing programs. Businesses realize they must incorporate mobile messaging into all aspects of their customer relationships. SMS is still the only mobile medium that can instantly reach all mobile users, and its ubiquitous use demands integration into customer touch points.

3.     Retailers embrace mobile

Now more than ever, retailers and brands leverage mobile in cross-channel marketing efforts, using mobile Web, website applications, SMS and MMS to communicate with and learn about consumers who currently are only contacted via traditional communication methods. As retailers utilize mobile's interactive advantages, they will begin to integrate with current CRM systems and target specific offers to individuals, maximizing the value that mobile brings to the organization. In addition, cutting edge retailers will take advantage of new technologies, such as augmented reality, to promote their products.

Mobile will also help retailers reduce costs associated with printing coupons and direct mailings, while reaching a more targeted audience in real time. As brands and retailers become increasingly mobile savvy, their offline and online marketing efforts will converge into a single story and strategy using mobile as a more integrated part of their current targeting efforts. Brands will realize that mobile, just like the Internet, is a marketing, communication and revenue channel they cannot afford to ignore.

4.     The (re-)emergence of the mobile Web

Reports of the death of mobile Web have been greatly exaggerated. In the coming years, the re-emergence of the mobile Web will rival and likely surpass the importance of downloadable applications. While apps and iPads may be the flavor of the day, the mobile Web will resurface as a critical e-commerce and distribution screen for content owners and developers. Two important developments - the continual evolution of devices on the hardware side and the emergence of HTML5 on the software side - will fuel this renaissance.  The mobile Web is not dead; it's in its infancy.

5.     Smartphones will overtake feature phones

The Nielsen Company predicts that the number of smartphones in the U.S. will overtake feature phones in 2011. As smartphones dominate the mobile landscape, their use will evolve from voice and data centric devices to a critical everyday utility. Applications already allow a smartphone to be used as a wallet, bank, directory, map, retail store, and price checker. In the years ahead, smartphones will behave more like PCs with broad network access and powerful processors that can handle full-blown apps. The ability to stream live newscasts, assemble full color family photos and watch feature-length films will provide consumers a richer, more personal experience.

It is an exciting time to be in mobile. SMS has gone mainstream, with traditional brands, media, retailers and enterprises embracing mobile messaging, and increasing adoption of MMS and rich media technologies. Additionally, mobile payments will continue to evolve with more sophisticated billing options for consumers. Being open, flexible, and working together is the only way to secure our businesses and provide a valuable customer experience. The quality of the consumer experience will be the ultimate consideration for the continued success of the mobile channel.

OpenMarket operates a leading global mobile transaction hub. For more information, please visit www.openmarket.com or contact +1.877.277.2801.