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As mobiles evolve, so too innovation
January 11, 2012, Wednesday
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Print Edition
Print Edition
THE popularity of smart phones, not to mention colorful new social networking applications, allows users to enjoy better interaction with friends and family, and, at the same time, opens doors of opportunities for smaller businesses.
The number of Chinese people who accessed the Internet via mobile phones was 318 million as of last July, according to a nationwide survey by the China Internet Network Information Center. It is also estimated that 54 million new smart phones came into use in 2011.
The mobile end of the world's biggest Internet market will continue to grow in coming years, and globally the number of users is expected to reach 10 billion by 2020, according to a report by ZenithOptimedia.
For young urban professionals, smart phones are no longer just a simple communications tool, but rather a vital arm of their social lives. Their media habits will have a profound impact on how the market shapes up in the future.
Businesses are eager to reach out to target consumer groups via mobile Internet, with particular focus on a younger generation glued to its smart phones. The phones make it easy for friends to exchange information about brands they like, restaurants they patronize and products that are worth their prices.
The door is open to innovation.
One of the current buzzes among industry analysts and Internet company executives has been Weixin, a year-old mobile-phone based voice messenger service offered by Tencent, China's largest Internet company in terms of users.
Unlike previous instant messaging software for mobile phones, which allow the sending of only short text messages, voice messengers allow users to send short sound clips as well as photos or videos taken on the spot.
The new service is expected to catch on quickly because data traffic fees are relatively cheap and ownership of smart phones is burgeoning.
Location extension
Tencent is not the first company to get into voice messaging services.
Xiaomi's MiTalk, backed by veteran entrepreneur Lei Jun, was one of the earliest pioneers among domestic clones of Talkbox, a Hong Kong-based instant voice messaging startup, and Canadian-based Kik, a cross-platform messenger that supports group messaging.
One year after its launch, Weixin boasts about 50 million registered users.
Unlike other voice message software, Weixin has a location extension, allowing users to find out who else is using the software in the vicinity.
Tencent introduced the location-detection service in August.
In future versions of Weixin, the service will include social games to allow better interaction with friends.
"I often open Weixin when I am at the airport to see who's also waiting for a delayed flight," said Crystal Xu, an office worker in Shanghai who often takes business trips. "I figure we might strike up a conversation and become friends."
In my opinion, location detection functions open up huge potential for future profits and business opportunities.
That's particularly true for smaller businesses. For example, a coffee shop could open an account with Weixin and provide delivery service for customers within a 2- or 3-kilometer radius.
People who don't know each other but live nearby may be able to meet in the coffee shop to, say, take advantage of a group discount offer advertised online.
While Tencent sees social demand among strangers living in proximity, Jiepang, a much smaller start-up firm, prefers to focus on social networking services among close friends.
Jiepang launched its service on both Apple's iOS and Google's Android platforms about 18 months ago, providing a "check in" service similar to that of Foursquare, which allows users to leave remarks or upload photos at each place they visit.
Through GPS plug-ins on smart phones, the "check in" software can locate one's position and the name of the venue, whether it's a coffee shop, a cinema or a holiday hotel.
One's current whereabouts are then synchronized into social networking sites such as Sina's Weibo microblog site, Renren or Kaixin001.com. Users can configure the sites where friends may see updates.
Money-spinners
"We want our users to share their most intimate experience with close friends, on top of what most other social networking sites are doing," said Jiepang founder and CEO David Liu. In the latest version of Jiepang's iPhone application, users are able to tag their friends in photos they've taken and uploaded, a feature that Liu said will better help friends exchange intimate moments.
On the business side, the company has launched promotions with well-recognized consumer brands like Starbucks and McDonald's to offer special gifts for whoever "checks in" at one of the locations.
Jiepang is working with about 6 thousand of small vendors in major cities in China to offer "check in" users discounts or free product samples. These partnerships currently are free of charge but could be turned into money-spinners if small membership fees are attached. For the moment, that is not a priority, Liu said.
In 2005, advertising spending on Internet and mobile devices accounted for only 5 percent of total media spending globally. ZenithOptimedia estimates that figure will to rise to around 20 percent in 2013.
The future is all about location, location, location! It is the new dimension next to time and space, and it could determine how smaller businesses operate and flourish in the wireless realm.
The number of Chinese people who accessed the Internet via mobile phones was 318 million as of last July, according to a nationwide survey by the China Internet Network Information Center. It is also estimated that 54 million new smart phones came into use in 2011.
The mobile end of the world's biggest Internet market will continue to grow in coming years, and globally the number of users is expected to reach 10 billion by 2020, according to a report by ZenithOptimedia.
For young urban professionals, smart phones are no longer just a simple communications tool, but rather a vital arm of their social lives. Their media habits will have a profound impact on how the market shapes up in the future.
Businesses are eager to reach out to target consumer groups via mobile Internet, with particular focus on a younger generation glued to its smart phones. The phones make it easy for friends to exchange information about brands they like, restaurants they patronize and products that are worth their prices.
The door is open to innovation.
One of the current buzzes among industry analysts and Internet company executives has been Weixin, a year-old mobile-phone based voice messenger service offered by Tencent, China's largest Internet company in terms of users.
Unlike previous instant messaging software for mobile phones, which allow the sending of only short text messages, voice messengers allow users to send short sound clips as well as photos or videos taken on the spot.
The new service is expected to catch on quickly because data traffic fees are relatively cheap and ownership of smart phones is burgeoning.
Location extension
Tencent is not the first company to get into voice messaging services.
Xiaomi's MiTalk, backed by veteran entrepreneur Lei Jun, was one of the earliest pioneers among domestic clones of Talkbox, a Hong Kong-based instant voice messaging startup, and Canadian-based Kik, a cross-platform messenger that supports group messaging.
One year after its launch, Weixin boasts about 50 million registered users.
Unlike other voice message software, Weixin has a location extension, allowing users to find out who else is using the software in the vicinity.
Tencent introduced the location-detection service in August.
In future versions of Weixin, the service will include social games to allow better interaction with friends.
"I often open Weixin when I am at the airport to see who's also waiting for a delayed flight," said Crystal Xu, an office worker in Shanghai who often takes business trips. "I figure we might strike up a conversation and become friends."
In my opinion, location detection functions open up huge potential for future profits and business opportunities.
That's particularly true for smaller businesses. For example, a coffee shop could open an account with Weixin and provide delivery service for customers within a 2- or 3-kilometer radius.
People who don't know each other but live nearby may be able to meet in the coffee shop to, say, take advantage of a group discount offer advertised online.
While Tencent sees social demand among strangers living in proximity, Jiepang, a much smaller start-up firm, prefers to focus on social networking services among close friends.
Jiepang launched its service on both Apple's iOS and Google's Android platforms about 18 months ago, providing a "check in" service similar to that of Foursquare, which allows users to leave remarks or upload photos at each place they visit.
Through GPS plug-ins on smart phones, the "check in" software can locate one's position and the name of the venue, whether it's a coffee shop, a cinema or a holiday hotel.
One's current whereabouts are then synchronized into social networking sites such as Sina's Weibo microblog site, Renren or Kaixin001.com. Users can configure the sites where friends may see updates.
Money-spinners
"We want our users to share their most intimate experience with close friends, on top of what most other social networking sites are doing," said Jiepang founder and CEO David Liu. In the latest version of Jiepang's iPhone application, users are able to tag their friends in photos they've taken and uploaded, a feature that Liu said will better help friends exchange intimate moments.
On the business side, the company has launched promotions with well-recognized consumer brands like Starbucks and McDonald's to offer special gifts for whoever "checks in" at one of the locations.
Jiepang is working with about 6 thousand of small vendors in major cities in China to offer "check in" users discounts or free product samples. These partnerships currently are free of charge but could be turned into money-spinners if small membership fees are attached. For the moment, that is not a priority, Liu said.
In 2005, advertising spending on Internet and mobile devices accounted for only 5 percent of total media spending globally. ZenithOptimedia estimates that figure will to rise to around 20 percent in 2013.
The future is all about location, location, location! It is the new dimension next to time and space, and it could determine how smaller businesses operate and flourish in the wireless realm.
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