The i-Paper
Perfect by nature Foreword The first commercial mobile phone worldwide weighed 800 grammes and measured 33 x 4.5 x 8.9 cm – that was 1983. Even though at the time it still cost 3,995 US dollars and had an accumulator capacity of exactly one hour, it started the first mobile revolution: a year later 300,000 people owned the “mobile” device. In 2007 there was a second revolution, this time not from Motorola, but from Apple: the iPhone. In front of its competitors´ eyes a newcomer conquered the mobile market and step by step won more market shares – and definitely not just because of its weight of 133 grammes. The iPhone aims to cause a breakthrough in mobile Internet usage. Its users all agree: its usability, multifunctionality and design are unbeatable. And above all its advanced touchscreen makes it a real milestone. And though the iPhone may be small, you should not underestimate it. Apple CEO Steve Jobs is convinced: “Folks, it’s bigger than the PC!”
But isn’t that subjective? Do only Apple fans believe in the iPhone – a small but rock-solid sworn-in minority? We were wondering whether all the hype was legitimate. What does the iPhone offer that nobody else can? Who are the people who iPhone? And can the iPhone be successfully used for advertising and marketing? Every question led us deeper into the complex world of iPhone. A world which is to be conquered if we still want to have our finger on the pulse of our target group tomorrow. Enjoy your read! Sincerely yours, Michael Schipper
It’s alive! History Experts in the trade are astonished at the unprecedented capture of the mobile market by a newcomer. Never before has a mobile manufacturer influenced the trade with such speed and impact as Apple has done with the iPhone. Till that time there had been no mobile device which was so easy to use – in particular employing a touchscreen has made history. Before that Apple had started its market entry in cooperation with Motorola. The ROKR E1 was one of the first mobile phones which could be synchronized with iTunes. The monochrome interface and the clunky touchwheel look very out-dated from today´s point of view. Steve Jobs was right in distancing himself from this third-party product. Speculation that Apple would put out its own mobile phone became more concrete, one that would not only play audio files but also show videos and images. January 2007 the secret was out: the first prototype of the iPhone could be viewed at the Macworld Conference & Expo. A few months later came the final market launch: on 29 June, 2007, in America, and in November in Europe as well.
Already in its first year the New York Times dubbed the iPhone “Invention of the year”, because it scored well in the areas of design, user friendliness, trailblazing function and development potential. And it’s true. The iPhone had barely seen the light of the mobile world when its little brother arrived: the iPhone 3G – and Apple’s greatest competitor had been made in house. Within the first two weeks it topped the sales of the first device. For one person it was definitely worth it, because for 2008, Apple CEO Steve Jobs announced: “Apple just reported one of the best quarters in its history with a spectacular performance by the iPhone.”
Key Milestones: Dec 99
Apple registers iPhone.org
Oct – Dec 02
iPhone is registered as a trademark in the
UK, Canada, Australia and Singapore
Oct 04 Apple and Motorola confirm that they are collaborating on a new device Sept 05 Oct 05
The iTunes-capable ROKR phone is launched Steve Jobs announces more devices at Fortune
Nov 06
Apple patents the iPhone
Dec 06
Cisco launches a VoIP phone called iPhone
Jan 06
Steve Jobs officially announces the launch
of the Apple iPhone at MacWorld
Jan 06
Cisco sues Apple
Feb 07
Apple and Cisco agree to both use the name
May 07 Rumour has it that the iPhone is being discontinued – Apple shares drop by 3 % June 07
The iPhone is launched in the US
Sept 07
The iPhone comes to Germany and the UK
June 08
3G was released
June 09
3GS arrives!
He only wants to play Facts 133 grammes of mobile world – the Internet in your pocket. The first iPhone was already very easy to use. A device with only 5 visible keys for the complex Internet and mobile world? No wonder that the iPhone caused looks of surprise and didn’t just catch the attention of the curious. The first device still lacked a UMTS connection, GPS and business functions, but Apple immediately presented the more efficient iPhone 3G. Mobile data use is only one aspect which Apple is significantly promoting with its iPhone.
In the meantime Apple is set to take second place on the worldwide Smartphone market. With an increase in market shares of over 520 per cent in the past quarter (Q3) Apple has left the Canadian Blackberry producer RIM limping behind, according to Canalys. This worldwide success is due in part to the launch of the iPhone G3 in July and the international expansion of the company. Ten million devices were already sold in 2008 – 3 million more than predicted. The feeling of having their own home office in their hand and exploring it with their fingers went down well with the users. But also the increase in speed and precise location of coordinates via GPS function made the owners of the new iPhone even more mobile.
Bull’s eye! Targeting the iPhone Customer Our mobile society wants mobile partners. But what do people from this society look like? What characterizes people from this society? How do we define a iPhoner? In most cases he’s male. At the moment only 27 per cent of women take advantage of an iPhone. And typical iPhoners are young: two thirds under 35. Forty per cent of them are single and have managed to avoid the bonds of marriage – up to now. When they switch the iPhone on they mostly surf through the Internet (82 %), which makes them quite exotic because “normal” mobile users very rarely use their Internet function. They also usually make much more use of video options and music-streaming.
They like to send their e-mails directly en route (76 %). As a successor of the iPod the iPhone is also used more conventionally as an MP3 player, at least by 73 %. 68 % make use of its WIFI functionality . How iPhoners became iPhoners has also been researched: 35 % invested in an Apple device because they thought that the technologies and functions offered were unbeatable, 29 % liked the outstanding design and style, and for 26 % their satisfaction with the brand Apple was decisive. The figures on data consumption from summer 2008 prove that iPhoning is addictive. “iPhone users use in excess of 90 megabytes per month, Blackberry users use between 1 and 2 megabytes per month,” says Olaf Swantee, Executive Vice-President of Telecommunications company Orange. Mobile data volume explodes automatically with lower costs and the appropriate end device. A logical formula.
A question of demand Application Shop The words spoken at the launch of the first iPhone were clear: It is far too dangerous to let some third party produce the applications – mainly because of the lack of stability, explained Steve Jobs already in January 2007. Luckily he thinks differently today, otherwise the iPhone would never have become such an expandable software platform – and a perfect advertising market. The initial turnover figures prove that the applications haven’t just remained greenfield developments: 200 million applications were downloaded within the first 102 days from the specially “built” App Store. In the meantime there are 10,000 products in the areas of books, business, education, entertainment, finance, games, healthcare & fitness, lifestyle, music, navigation, news, photography, productivity, reference, social networking, sports, travel utilities and weather. The download is very easy: via PC or Mac from the App Store in iTunes or directly with the iPhone. The advantage: quicker access.
The multi-touch display, the acceleration sensor, GPS, real-time 3D graphics and 3D audio mean that web developers will jump to accept the challenge. The producer of an application program pays 99 dollars for membership in the App Store, and then the iPhoner can download it for free from there. For programs that cost, Apple retains 30 % of the price for the service.
Houston we have a problem Games The iGalaxy Apple has made history in the mobile marketing world with its iPhone. Step by step the innovative device is conquering the coat pockets of business people – at the moment private use is still greater at 63 %. Now is the time to win over iPhone users before other brands take advantage of Apple’s success.
Downloads
How can this be achieved? On the basis of the various functionalities of the iPhone, we have identified options for paving the way to the consumer. The iPhone is playfully easy to use, so we believe that extremely original and innovative applications provide a great chance to make people talk about the brand. This area more than any other provides an opportunity to prove the iPhone’s futurability.
YouTube
Our iCosmos shows the “new world”:
GPS Music + Video Web
Apps
The perfect wave Surfing the Web An Internet page consists of a complex presentation of contents, which is best shown on a screen of 15 inches and more. The iPhone has exactly 3.5 inches for that and still it presents the entire Internet in an appealing and userfriendly way on its touchscreen, which is one of the largest on the mobile market. For mobile use an Internet page is adapted using HTML/ WAP so that it is optimally displayed on the iPhone. At the moment Flash and Java support are not yet available. In April 2005 Apple launched version 10.4 of its Mac OS X system, with it introducing Widgets written in HTML, CSS and JavaScript with the help of the programme Dashboard, and is often erroneously seen as their inventor.
In the meantime, the Widget function can also be used on the mobile Apple device. Since the iPhone is always subject to change through development, it is necessary to currently check which applications can be used and appropriate. Another way to win the mobile Internet surfer is to offer data in RSS format, like a news ticker. The user can be led to his own homepage via headlines and short summaries. With the pull method every subscriber can constantly receive news updates.
Until someone cries Gaming For no other device than the iPhone is it so undefined how many labels it can have at the same time and how many markets it can or should serve. Its latest label is most certainly also “game console” – portable and at less than 140 grammes impressively light. The market leaders in the mobile area like Sony with its PlayStation Portable or Nintendo DS should keep a careful eye on the competition. Not only can the iPhone make any train journey seem shorter with its great leisure offers, but it also makes serious work possible, proving it to be more and more a multifunctional partner. The N-Gage from Nokia, which already in 2003 combined the mobile phone with a game console, couldn’t make the breakthrough due to its unhandy design: to make a phone call you had to turn the device to the flat side and then put it crossways to your ear. Not only did that attract disconcerted looks but also led to fingerprints on the display. The iPhone’s gaming advantage doesn’t just come from its larger 3.5-inch display but also from the intuitive steering via the multi-touch interface, an acceleration sensor and last but not least its comparatively strong graphics processor. Complex games taking up large amounts of memory also easily find space on the 8- or 16-GB flash drive. Via a web connection it is possible to access not only higher levels of the games, but also the latest versions of them. The GPS function even makes it possible to integrate the current location of the player into the game. Its broader range of software has transformed it into a handheld gaming platform which can be taken seriously. At home, too, gaming fun is guaranteed to be perfect with the software extension available for version 2.2 and above: the iPhone can be directly connected to the TV and can be used as a game controller. With innovative marketing strategies, the ideal partner to playfully win over the iMarket.
Explore new shores
Conquer the World City maps are usually small, foldable plans that can easily be placed in your pocket, but are less handy to stow away again properly after use. Or they are cumbersome download services in digital form. Still they hardly ever tell you exactly where you are. But tedious searching has been put to an end with the GPS function of the iPhone. Google Maps is pre-installed and gives the precise indication of your own coordinates on a virtual map, allowing you to explore any city regardless of how complex its network is. With the iPhone the user-friendly city map can be taken exactly where it is needed most, directly in the streets.
This map is able to not only locate the user, but also build the bridge between consumer and provider. So the iPhone user can find not only his old school mate or the nearest restaurant but also his favourite manufacturer, his local garage or his way directly to you or your branches.
Seek, and you will find Applications “The iPhone is not a SmartPhone,” was what experts were saying before Steve Jobs offered the iPhone to third-party providers in the App Store in summer 2008. Now it is up to the user to decide how “smart” his iPhone is. Very slow transmission speeds and user-unfriendly websites stop normal mobile owners from using the Internet function of their mobiles. That is why the applications in the App Store are tailor made for the iPhone, which doesn’t only offer better colour reproduction. The software Update 2.0 opened up the option for developers to create their own applications for the iPhone. To implement an innovative idea the flexible programming language xCode can be used for native software development. Due to its modularity and with the support of languages like Java, Python, Ruby and Perl it is also useful for developing platform-independent software. The free Software Development Kit (SDK) can be downloaded directly from the Apple homepage. On their website or in the WAP portal, iPhone users can be linked directly to the relevant applications in the App Store. You benefit not only from the brand name Apple but also from the App Store being the only legal program download source and from the high frequency of use. Therefore it offers a whole new marketing level. Fill the free black spaces on the desktop of a newly bought iPhone with your icons before someone else does. Or make your way onto the favourite lists of experienced iPhone users.
The boards that mean the world o sole mio/Music & Video The iPhone is in many ways more than just a mobile phone. It is the next development stage of the iPod with its 3.5-inch display and its multi-touch interface. With the touch of a finger one can search the virtual media library or find favourites again. The classic iPhoner uses the mobile phone in a completely different way to the average mobile phone user. The iPhone package exactly serves the demand for news services, with video function, games, music and films. Luckily with the new iPhone this is also possible without headphones. Additionally no adapter is needed for the headphones anymore, instead there is a direct connection providing a sound experience that is considerate of the surroundings. Videos can be displayed in various formats on its large display. The iPhone supports all available audio files. In keeping with the versatility of the iPhone different file formats can be offered, e.g. for podcasts, videocasts or interactive TV programmes. The directly installed video portal YouTube offers more marketing options: by video seeding it offers a stronger video integration or the option of making your own channel. On the website or WAP site one can be linked directly to videos which can be watched in superb quality directly on the YouTube application of the device.
Small fish, big sharks Downloads Using downloads anyone can develop their own personal iPhone world: Every user designs his own iPhone individually along with the pre-installed functions. New innovations in the areas of wallpaper, videos and photos made especially for the iPhone can motivate the consumer to initially download and then as a second step to buy. The brand presence is enhanced through branded personalization. Wallpaper files can be loaded directly with the iPhone. Videos are available via download as well as via a link with YouTube. Sounds can be transferred to iTunes after the download.
Knight takes rook iStrategy The world is going online – and doing it mobile. Do you want to mark time? Or will you take the next step into the relatively unexplored space of mobile Internet usage? There is a lot to discover for innovative explorers. What is most important is a good strategy: The iStrategy leads directly to the iPhone and from there back to your company.
Analysis / Situation
Target Group
Market
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Partner / Cooperation
Innovation / Singularity
Definition / Measures
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Using market analysis potential partners can be found, the target group and the competition more precisely defined, and uniqueness verified. The second step is the development of a suitable project (Application Definition Statement): an innovative game, an entertaining video or perhaps simply a classical Internet page in the iPhone format? What suits you best? Step by step the project will take form – and in step 3 the rocket shoots off into space. The perfect move to outer galactic success!
Music / Video
Development / Roadmaps
Testing / App Store
Selection / Specialists
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Downloads
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Testing / Technique
Implementation /
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Detailed Concept
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Checkup Apple
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Screen Design
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Launch of Project
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Conclusion The hype is justified – we think. And the ease with which Apple as a newcomer has conquered the mobile market is simply impressive. The mobile Internet required an innovative device which was also fun. The easy-to-use iPhone with its attractive design and appealing icons certainly achieves this. The target group is growing every day: while at the beginning it may have only been the Apple fans or the curious computer scientists, today it is more and more people like you and me. According to M:Metrics/Comscore, two-thirds of iPhone users in Germany surf the Web, with 73 per cent overall in Europe doing so. Not without reason was the documentation of the US election campaign iPhone compatible. And if iPhoners were only a minority of technology lovers there would not be a logical explanation for well-known companies developing special programs for the App Store. The time is more than ready to explore this market before others do it. With us you can overtake the competition in the same impressive way that Apple has done so with the iPhone. When conquering the iPhone world, however, there are a few key points to bear in mind:
well-founded iStrategy (target group, market, A competitors, cooperations) and the consideration of appropriate measures (classical app, web app, etc.) should always be the basis of iPhone marketing. I t is extremely important that measures are appropriate for the relevant market and that significant added value is generated for the user. imply adopting something 100 % for iPhone from S existing online resources will not work. Careful consideration of the mobile channel is of vital importance for all campaigns. o make the most of it, an extension to other channels T should occur, for instance the application Facebook Connect offers the opportunity to extend the iPhone App beyond the online channel. nce an application has been created, appropriate O marketing via iTunes and the App Store ensures that awareness is generated and maximizes the download figures. Our conclusion: The iPhone is the ideal channel for innovative advertising strategies and thus the perfect channel of distribution for future-oriented brands. iMarketing is on the rise – and no one can do without iMarketing.
Imprint Proximity Worldwide Who we are We are the world’s most awarded, direct and digital agency network with more than 2,000 employees in 59 offices around the world. We are aligned with BBDO worldwide and a member of the Omnicom group of companies - the world’s largest marketing services organization.
Why Clients hire us We solve complex business problems with a simple strategy: change individual consumer behavior. We succeed by fusing our digital and direct expertise with our in depth knowledge and understanding of consumer data. The end result is a measurable and memorable engagement with each and every one of our clients brands.
What we do Interactive Marketing Mobile and Social Media Analytics Branding Email Marketing and eCRM Direct Marketing Interactive advertising and design Customer Segmentation Search Marketing Strategy and Planning Technology Architecture & Integration Strategic Planning
Proximity Germany As one of Germany's Top 3 dialogue marketing agencies, Proximity Germany has for the past 25 years been developing behaviour-changing ideas: innovative dialogue communication that inspires people and which has the power to change consumer behaviour. Proximity offers multi-channel solutions in a variety of disciplines, including direct marketing, online communication and mobile marketing.
The agency, which is part of the BBDO Group, is headed by Michael Schipper (CEO), Detlef Rump (CCO) and Markus Keller (CFO). Proximity Germany employs 300 people, based in offices in Hamburg and Düsseldorf, and its clients include major brands like E.ON, GE, Intercontinental Hotels Group, Mercedes-Benz, Procter & Gamble, Shell, Panasonic and smart.
Contact Michael Schipper | CEO | tel +49 (0)40/278 52-4102 | e-mail michael.schipper@proximity.de