Author: Celeste LeCompte

In the mobile industry, hype usually outpaces true performance by a substantial margin. But mobile commerce -– the business of conducting transactions on mobile phones –- is gaining real traction, much of it driven by the mobile web. So while downloadable smartphone applications are the hottest thing in mobile, retailers looking to hawk their stuff to on-the-go users need to make wireless websites their top priority.

“Mobile commerce” is an overly broad term; it includes everything from buying and downloading apps and content (a wildly successful space thanks to the emergence of the iPhone) to the concept of using a phone as a kind of credit card at the retail counter (a segment that has yet to grow legs despite plenty of investment). But another segment is quietly generating money: selling physical goods to consumers over the mobile web. And it’s a potentially huge industry.

eBay is gunning for a whopping $1.5 billion in mobile sales this year, and Amazon’s mobile site traffic is second only to eBay among vendors of real-world stuff, according to figures from Nielsen. An annual survey from Deloitte last year that found that one in five consumers planned to use their mobile phones to shop during the 2009 holiday season, 25 percent of whom said they intended to make purchases on their phones.

Of course, many mobile purchases of real-world goods are being conducted through handset-specific apps that provide a highly optimized user experience. But building an iPhone application isn’t a surefire path to success. Some offerings are plagued with performance problems or inadequate functionality, and many simply aren’t much better than a mobile site. More importantly, mobile applications by definition can address only a small fraction of the potential market.

The iPhone accounted for only 16.6 percent of worldwide smartphone shipments in the fourth quarter of 2009, according to ABI Research, and Strategy Analytics pegged the iPhone’s share of the overall handset market at a mere 3 percent. Meanwhile, it’s difficult –- if not impossible –- to find a mobile phone on retail shelves that doesn’t have at least a rudimentary browser.

As I describe in my column at GigaOM Pro this week, there are a few approaches online retailers can take to maximize mobile sales regardless of which device users have in hand:

• Develop clean, simple mobile pages that require minimal data transmissions.
• Offer mobile storefronts with stripped-down but still innovative features targeting phone users.
• Focus on simple, secure payment systems, whether you’re selling via apps or the mobile web.

Make it easy for users to tune into the mobile web to comparison shop, get product information and close the deal. Vendors who do those things will watch their mobile sales ramp up dramatically. Read the full post here.

Image courtesy of Flickr user 2 dogs

Which one will you pick?

Not all mobile apps are created equal, and choosing the right platform on which to launch yours can be the key to its success or failure. “The App Developer’s Guide to Choosing a Mobile Platform,” a new report from Colin Gibbs over at GigaOM Pro (sub required), takes a look at the seven leading mobile platforms and suggests key tips for anyone considering where to launch their next app.

As you might expect, Gibbs is sanguine about the opportunity for developers who choose to build for the iPhone. In fact, he suggests that not building for the OS that ignited the craze would be a foolish mistake for anyone hoping to hit it big with a mobile app. But the iPhone isn’t the only opportunity out there, and he carefully weighs the pros and cons of developing for Android, BlackBerry OS, Palm’s webOS, Maemo, Symbian and Windows Mobile as well.

Choosing among the competing platforms requires a clear-eyed assessment of the audience for your app, the technical strengths (and weaknesses) of the platform, how easy it is to monetize your work and the long-term health of the platform. You’ll need to ask the following questions:

• Who is your audience? If you’re trying to reach a mass market consumer audience, the iPhone and Android are the big winners, with the most momentum and broadest reach. But size may not be the most important factor for your app, and other platforms may let you reach large pools of users with more specific needs — business-focused users or mobile users without reliable access to a full-scale computer, for example.
• What technical firepower do you need? If you’re trying to build a complex app that runs in the background while users are on the go, you’ll want to pursue a multitasking platform like Palm’s webOS rather than the iPhone. If slick graphics and an immersive user experience are important, you want to pass up the BlackBerry OS and head for Maemo. Knowing what each platform can deliver today — and what it’s likely to offer in the future — can help eliminate some options.
• Can you make money? Developers have it far better today than on carrier decks of old, but not all platforms offer the same opportunities, with different revenue-sharing models for developers, payment options for users and a wide range of median price points. If you’re looking for scale, consider platforms with large audiences and easy payment options. On the other hand, higher price points and more clicks to sale might not scare away high-powered niche users.
• Is there a future for the platform? The mobile OS landscape is changing, and the fortunes of some are rising while others are falling. Gibbs takes a look at what to watch for in each case, including casting doubt on Microsoft’s ability to freshen Windows Mobile for today’s market and raising red flags for the white-hot spread of Google’s Android.

Gibbs’ report also takes into consideration a number of game-changing developments that will alter the course of mobile apps over the next several years. App users and developers alike should find it of interest.

Photo courtesy Flickr user splodge.