Tuesday, July 24, 2007

GetThere2go seamlessly replicates a corporation‘s travel site on any Web-enabled mobile device, allowing road warriors to book flights, add an extra hotel night, or rent a car – all within corporate policy guidelines.

GetThere, Sabre’s online corporate travel reservation technology, announced that corporations using GetThere can soon offer business travelers the capability to book and manage trips anywhere around the globe via their hand-held devices. GetThere2go seamlessly replicates a corporation‘s travel site on any Web-enabled mobile device, allowing road warriors to book flights, add an extra hotel night, or rent a car – all within corporate policy guidelines.

GetThere, which recorded more than 10 million online corporate bookings in 2006, unveiled the new functionality at the annual National Business Travel Association (NBTA) Convention & Exposition in Boston, Mass.

To facilitate this new service for its global client base, GetThere entered into a unique relationship with Usablenet, Inc. New York-based Usablenet first offered mobile services to travelers in 2006, and in only 18 months, Usablenet’s scale and speed has driven the company to a leadership position in the mobile travel arena. Three of the top six U.S. airlines use Usablenet, as well as three of the world’s top hotel brands and Amtrak. On an average day, 20,000 to 30,000 travelers connect via Usablenet to manage their trip via their mobile devices.

From a corporate policy standpoint, GetThere2go eases concerns travel managers may have when it comes to mobile-generated bookings. Options for air, car and hotel are provided in the same manner as if the traveler was shopping on a computer. Preferred airlines and hotels, complete with logos and photos, are highlighted on the small screen. If a company has a GetThere feature such as Online Ticket Exchange active, the traveler can access that functionality as well. Fulfillment and quality control are facilitated through the standard agency process.

GetThere2go’s arrival coincides with the rapid growth of the number of travelers across the globe boarding planes and trains with a mobile device – and they are using those devices to perform many tasks. Mobile technology providers estimate that as many as 97 percent of business travelers carry a phone or PDA, and a May report by Forrester Research noted that “45 percent of business travelers use mobile data services such as text messaging and the mobile Internet. Mobile data services form the foundation for the next generation of travel distribution.”

The initiative to launch GetThere2go marks Usablenet’s first foray into managed travel. “GetThere’s roster of Fortune 500 clients and agency resellers that already have harnessed online managed travel is a critical component of our decision to work with GetThere and enter the business travel sector,” said Nick Taylor, vice president of business development for Usablenet.

“The introduction of GetThere2go is a natural extension of our services at time when business travelers are increasingly asking for tools that give them more control over their journeys,” said Ray Pazerekas, vice president of business development for GetThere. “The ability to manage trip options without needing a computer or an agent gives travelers the freedom and flexibility to make the in-policy choice that best suits their needs. GetThere2go makes it easy for road warriors to stay focused on business and spend less time dealing with travel arrangements.”

GetThere2go will be available to an initial group of GetThere customers in August, with plans to roll it out to the wider universe of GetThere clients and resellers later this year. Representatives from GetThere and Usablenet will demonstrate GetThere2go in GetThere’s booth (# 1433) at the NBTA event.

Mobile Search in the US

JULY 24, 2007

Still waiting for a market leader.

Competition for the US mobile search market promises to be fierce, thanks to the large US online ad market and strong pushes by portals.

Join eMarketer and Citrix Online for a free Webinar:
"Best Practices for Email Marketing"
August 8, 1 PM ET. Click here to register.

eMarketer projects that by 2011, mobile search will account for around $715 million, or almost 15% of a total mobile advertising market worth nearly $4.7 billion.

US Mobile Internet Users, Mobile Search Users and Mobile Search Advertising Revenues, 2006-2011 (millions)

Granted, a $715 million mobile search market is not a foregone conclusion, but many of the behavioral factors are in place in the US market to push mobile search forward. For one, there is already a strong correlation between mobile Internet use and accessing mobile search services.

In April 2007, iCrossing reported that three-quarters of mobile Internet subscribers access mobile search services. This is in contrast to the little more than 20% of general mobile phone users in the US who access mobile search.

US Mobile Internet vs. Mobile Phone Users Who Use Mobile Search, March 2007 (% of respondents in each group)

The US mobile search market can be expected to suffer some growing pains over the next two to three years as the tug of war between the major operators, the major portal players, major media and a gaggle of mobile search start-ups compete for the title of mobile search leader.

eMarketer Senior Analyst John du Pre Gauntt said, "Mobile search in the US has all the right parts on the table: a huge online advertising ecosystem, the world's leading content industry, massive portal players, major league mobile operators and a host of VC-backed start-ups.

"In other words, it'll be a bloody mess over the next few years sorting out the center of gravity for mobile search, as each player tries to convince the others to follow its lead. The good news for marketers is that there's enough of a prize for the winner(s) that resolution will come."

Sunday, July 22, 2007

The Search Wars Are Going Mobile

JULY 17, 2007

The telecom and Internet industries are colliding head-on in competition for control of the consumer mobile search business.

Telecom carriers, handset manufacturers, publishers, directory and yellow pages companies, Silicon Valley giants and a gaggle of start-ups are squaring off to contend for the title of mobile search champion. Each is trying to convince marketers that it is the natural inheritor of mobile search.

"Mobile search is a battle to define perhaps the most important new interface with the consumer," says John du Pre Gauntt, eMarketer Senior Analyst and the author of the new report, Mobile Search: Clash of the Titans. "Whoever cracks the consumer and commercial code for delivering and monetizing relevant answers for people on the go will secure a license to print money, at least for a time."

Depending on a researcher's particular bias toward telecom, Web or technology factors, the published forecasts for mobile search vary from $1.5 billion by 2011 (from Informa Telecoms & Media) to over $11 billion by 2008 (according to Piper Jaffray).

Worldwide Mobile Search Advertising Revenues, 2006 & 2011 (millions)

eMarketer forecasts that the general mobile ad spending market — along with ad spending that supports mobile multimedia — should reach over $13.8 billion worldwide during the same period.

Mobile Advertising Spending Worldwide, 2006-2011 (millions)

Of that total, mobile search is expected to account for 17%.

Altogether, eMarketer projects that the global market for mobile search will approach $2.4 billion by 2011.

Worldwide Mobile Internet Users, Mobile Search Users and Mobile Search Advertising Revenues, 2006-2011 (millions)

"While in absolute terms that figure is not earth-shattering, compared with the online search market, let alone mobile content categories such as messaging, the fact is that mobile search carries with it the promise of radically changing how users access other, far larger content and commerce categories," says Mr. Gauntt. "In that sense, the impact of mobile search goes far beyond its specific industry opportunity."

Regardless of its relatively small size, mobile will continue to attract investment and talent because it is one the best platforms for connecting marketers to consumers with short-term or immediate purchase intent.

For instance, Informa predicts that global mobile entertainment sales will reach over $38 billion by 2011. Of that market, the top three subcategories are music ($13.6 billion by 2011), mobile video and TV ($8.3 billion) and mobile games ($7.2 billion).

Mobile Entertainment Revenues Worldwide, by Type, 2006 & 2011 (millions)

"The days when mobile search need only organize a mobile carrier's content retail store are rapidly drawing to a close," says Mr. Gauntt. "Too much money, talent and technology are moving into the mobile marketing space to expect that users, let alone advertisers, will stay content to search within the walled gardens that predominate today."

Monday, July 16, 2007

Virtual marketers have second thoughts about Second Life; Firms find that avatars created by participants in the online society aren't avid shoppers.

Alana Semuels, Times Staff Writer

SECOND LIFE a three-dimensional online society where publicity is cheap and the demographic is edgy and certainly computer-savvy -- should be a marketer's paradise.

But it turns out that plugging products is as problematic in the virtual world as it is anywhere else.

At www.secondlife.com -- where the cost is $6 a month for premium citizenship -- shopping, at least for real-world products, isn't a main activity. Four years after Second Life debuted, some marketers are second-guessing the money and time they've put into it.

"There's not a compelling reason to stay," said Brian McGuinness, vice president of Aloft, a brand of Starwood Hotels & Resorts Worldwide Inc. that is closing its Second Life shop and donating its virtual land to the nonprofit social-networking group TakingITGlobal.

Linden Lab, the San Francisco firm that created Second Life, sells companies and people pieces of the landscape where they can build stores, conference halls and gardens. Individuals create avatars, or virtual representations of themselves, that travel around this online society, exploring and schmoozing with other avatars. Land developed by users, rather than real-world companies, is among the most popular places in Second Life.

But the sites of many of the companies remaining in Second Life are empty. During a recent in-world visit, Best Buy Co.'s Geek Squad Island was devoid of visitors and the virtual staff that was supposed to be online.

The schedule of events on Sun Microsystems Inc.'s site was blank, and the green landscape of Dell Island was deserted. Signs posted on the window of the empty American Apparel store said it had closed up shop.

McGuinness said Starwood's venture into Second Life did accomplish something. Feedback from denizens gave Aloft ideas for its physical hotels.

The suggestions included putting radios in showers and painting the lobbies in earth tones rather than primary colors. But now that the design initiative is over, he said, it's difficult to attract people to the virtual hotel to help build the real-world brand.

For some advertisers, the problem is that Second Life is a fantasyland, and the representations of the people who play in it don't have human needs. Food and drink aren't necessary, teleporting is the easiest way to get around and clothing is optional. In fact, the human form itself is optional.

Avatars can play games, build beach huts, dress up like furry animals, flirt with strangers -- sometimes all at once.

Their interests seem to tend toward the risque. Ian Schafer, chief executive of online marketing firm Deep Focus, which advises clients about entering virtual worlds, said he recently toured Second Life. He started at the Aloft hotel and found it empty. He moved on to casinos, brothels and strip clubs, and they were packed. Schafer said he found in his research that "one of the most frequently purchased items in Second Life is genitalia."

Another problem for some is that Second Life doesn't have enough active residents.

On its website, Second Life says the number of total residents is more than 8 million. But that counts people who signed in once and never returned, as well as multiple avatars for individual residents. Even at peak times, only about 30,000 to 40,000 users are logged on, said Brian Haven, an analyst with Forrester Research.

"You're talking about a much smaller audience than advertisers are used to reaching," Haven said.

Some in the audience don't want to be reached. After marketers began entering Second Life, an avatar named Urizenus Sklar -- in the real world, University of Toronto philosophy professor Peter Ludlow -- wrote in the public-relations blog Strumpette that the community was "being invaded by an army of old world meat-space corporations."

He and other residents accused companies of lacking creativity by setting up traditional-looking stores that didn't fit in. His column was reproduced in the Second Life Herald.

Nissan Motor Co., a subject of such protests, has since transformed its presence in Second Life from a car vending machine to an "automotive amusement park," where avatars can test gravity-defying vehicles and ride hamster balls. Sun Micro has made its participation more interactive and fanciful, Chief Gaming Officer Chris Melissinos said.

Ludlow isn't impressed. He said most firms were more interested in the publicity they received from their ties with Second Life than in the digital world itself. "It was a way to brand themselves as being leading-edge," he said.

Angry avatars have taken virtual action. Reebok weathered a nuclear bomb attack and customers were shot outside the American Apparel store. Avatars are creating fantasy knockoffs of brand-name products too.

Some buying and selling does go on in Second Life. An avatar can acquire currency -- called Linden dollars -- by earning it or buying it with U.S. dollars. (The exchange rate is 268 Lindens to $1.) With a stack of Linden dollars, an avatar can spice up his or her look or while away the time in a casino.

Only a few other virtual worlds allow avatars to create and sell content as Second Life does. But users are flocking to the other worlds, in part because some don't require people to download software to take up residence.

Others just want to access a larger community than Second Life offers. Between May and June, the population of active avatars declined 2.5%, and the volume of U.S. money exchanged within the world fell from a high of $7.3 million in March to $6.8 million in June.

Companies are following them. IBM Corp., which has an extensive presence in Second Life, is expanding into the other environments, including There, which features a digital version of the popular TV show "Laguna Beach," and Entropia Universe, which pits users against one another in a sci-fi civilization.

Consulting firms that were set up to bring brands into Second Life are busy helping clients explore other worlds.

One such agency, Millions of Us, recently announced that it had formed a partnership with Gaia Online, a site popular with teenagers, and CEO Reuben Steiger said it would be unveiling more soon. Millions of Us had previously worked only with Second Life.

"It's not about whether Second Life is good or bad," Steiger said. "It's just that there are a lot of alternatives."

alana.semuels@latimes.com