Guest Blog: The Impact of Smartphones on American Life

Presented by Arbitron Inc. and Jacobs Media, this study is extremely important to the development and evolution of marketing in the coming years.  Smartphones aren't just changing the rules -- they're switching the game.

Goin' Mobile:  The Impace of Smartphones on American Life
Presented by Arbitron Inc. and Jacobs Media

Mobile has emerged as the new mass distribution medium, with more than four billion mobile devices worldwide—topping televisions, radios, and personal computers.  This study is a result of Arbitron’s interest in assessing how consumers perceive and use smartphones and attendant technologies.

• The smartphone has blossomed into a piece of technology that transcends definition. Despite their origins as “phones,” smartphones have become an essential piece of technology for a growing
number of consumers.

• Smartphones have permeated all aspects of American life. They have a significant impact on productivity, personal and professional accessibility and human engagement and interactivity.  Smartphones are redefining careers, the family unit and social intercourse.

• There were very few differences in the overall use of and attitude toward smartphones based on age, gender, geography or ethnicity. The key distinctions appear to be based more on 1) the type of device owned and 2) the specific job or lifestyle of the respondent.

• There do appear to be clear differences in the impact and use of a smartphone based on the type of phone that’s used. BlackBerry® owners tended to concentrate their usage on talking, texting and e-mailing. On the other hand, iPhone® and Android™ owners treated their smartphones in a customized, chameleon-like way. They were more able to configure these devices by accessing apps that fit their needs and desires, whether for social, business, personal or recreational needs.

• Smartphones have moved from the “next big thing” to the “most essential thing.” While typically regarded as “cool” or “fun,” these devices have become a part of most consumers’ personal communications equipment, and their utility and features are assumed. Most consumers believe that smartphones have nearly unlimited uses.

• Smartphones are rewriting the rules of social interplay, often breaking down barriers of what is considered to be acceptable public behavior. There are numerous complaints about rude drivers using mobile devices, as well as disdain for people sharing their most intimate details while talking on the phone in public. A devout church-goer felt compelled to text message while in church and even rationalized doing so in her interview. A student used her smartphone while in class and devised various ways of hiding its use. Whether it is acceptable to use these devices in certain situations or not, respondents often find ways to conceal or justify their use. While several respondents acknowledged that using mobile devices in certain situations is “wrong,” the need to be in touch can overwhelm these social norms.

• Apps are a key to the popularity and ubiquity of smartphones. We observed respondents who used apps to manage dietary needs or financial affairs and entertain their children while in the car or while the child was undergoing medical treatment.

• Smartphones have become completely invasive in the lives of most respondents. It is the one piece of technology that is with them during nearly all of their waking hours and is always “on.”


• Constant accessibility translates to greater efficiency and more comfort, but also increased stress. Many reported that having a smartphone for business has made them more productive because they could now multitask with ease. On the other hand, this study contains stories about how clients and bosses now expect a greater degree of responsiveness in the form of returned e-mail and/or text messages (something that we found to now be acceptable in business) on an immediate basis.

• Smartphone apps have been a “game changer” in the workplace. Many respondents share a strong conviction that these devices enhance their productivity and the quality of their business endeavors.

• Smartphone use while driving is universally thought to be dangerous, yet the activity continues. There is an obvious disconnect between rational thought (“I know I shouldn’t text while driving”), local laws (“I can get a ticket and a fine”) and the emotional, even addictive, need to stay connected. The lure of accessibility, speed and constant connectivity is simply too powerful for many, so they continue to engage in this activity despite the consequences.

• Smartphones may be altering the use of other devices. Most respondents increasingly use their smartphones for an increased array of functions and, as a result, there appears to be a drop-off in the use of other devices. Laptop and desktop computers, GPS units, cameras and camcorders and car radios seem to be used less frequently among smartphone owners.

• Smartphones make it easier to use social media tools like Facebook® and Twitter. While most respondents were utilizing these networking sites before owning a smartphone, their activity has accelerated with the ability to post, update and tweet while on the go.

• Smartphone media usage is increasing, but is still in the formative stages for many respondents. The entertainment application that was most ubiquitous was Internet radio station Pandora®. While many utilized this service on their desktops and laptops, the ability to access Pandora on their smartphone was a game-changer. Along with the Facebook application, Pandora was the most frequently used application.

• The smartphone is the ultimate time-filler and time-killer. While in line at the grocery store, waiting in a doctor’s office, eating, waiting at a stop light, needing a break from work and even while spending time in a restroom, the smartphone has emerged as the “go to” device.

• Finally, smartphones are addictive. While most admit it, there is a strong sense throughout these interviews that smartphones aren’t just about utility and recreation. There was often a compulsive quality about their omnipresence that many respondents were aware of.

Moving forward, expected improvements in technical connectivity, data storage and capacity and application development will accelerate everything we observed in this study.  We expect that consumers will become more addicted to their smartphones and, as prices for handsets and data plans moderate and access to more consumers improves, larger and larger segments of the population will experience what we observed in Goin’ Mobile.

The Times, They Are A' Changin': New Marketing Budgets

A really great article from Research Brief shows interesting trends for marketing budgets planned for 2011.  It's looking good for marketing next year -- at least half of businesses polled plan to increase their advertising budgets.  For the second year in a row, email marketing and social media marketing are expected to be the top targets for increased spending.  Here are the highlights from Strongmail's late November survey:

• 93% of businesses plan to increase or maintain marketing spend in 2010
• 41% of business cite lack of resources/staff as primary email marketing challenge in 2011; 41% data integration; 36% email deliverability
• 52% of businesses cite increasing subscriber engagement as top 2011 email marketing initiative; 49% improving segmentation/targeting; 43% integrating email and social media
• 65% of businesses plan to increase marketing budget for email; 57% social media; 41% search
• 71% of businesses plan to integrate email and social media in 2010

These numbers are very encouraging, indicating that email and social media marketing are still king in the marketing arena.  Another interesting stat claims respondents name lack of resources or staff to be the biggest marketing challenge in 2011 -- this opens up the job market for talented direct marketing individuals.

Strong goals for 2011 seem to be increasing subscriber engagement, improving segmentation and targeting, and integrating social media and email.  Social media may be the new kid on the block, but it's here to stay -- and interestingly enough, it's not knocking email marketing off its throne, either.  Business leaders know the two will have to play well together in 2011 for fully effective marketing.

You can read the survey and accompanying article in their entirety here on Mediapost.

Twitter VS Facebook: Who's Winning the Click-Through Contest?

According to this article from Fast Company, Internet sharing trends have shifted dramatically.  While email still remains king with 55% of referrals, social networking sites saw a 10% jump.  But out of that arena, who's winning?  And how reliable is the source?

Simply put, Facebook is overwhelmingly the favorite for social network of choice with 78% of the market share.  Twitter only accounts for 5%.  Yet, the stats appear to lean towards Twitter rather than Facebook -- links shared through Facebook have a click-through rate of 287%, while Twitter boasts an astounding click-through rate of 1904%.

But what does this mean?

If the click-through rate is so high on Twitter, but it's not the social network of choice, how many clicks are really valuable?  And what about spambots or spyders checking these links -- does that have an effect on the rates?  And some savvy commenters argue that yes, the Twitter click-through rates will be inherently higher because that's all Twitter is.  Facebook has more content than just links, therefore the rates are lower.

What do you think?  Is there a simple answer for these statistics, or are the waters too muddied with other complications?

You can read the whole article and see the in-depth stats here.

Marketing From the Bleachers: Who's to Blame for KFC Meltdown?

This story was recently posted on MSN's business page, depicting the battle for marketing and advertising control within the KFC corporation. Local franchisees say the corporate "blue blazers" don't have a clue what goes on in individual stores and have lost sight of what made KFC famous...namely, the FRIED part of their moniker.

This is a truly fascinating example of what can happen when the guys in the ivory tower lose sight of their customer base. Take a gander, and let us know what your thoughts are. As an agency who works with a few local franchises, we can see both sides to the argument. Brand protection versus local control....what do you think?

Read the whole article from MSNBC here.

Most Businesses FAIL: The Importance of Marketing & Advertising

“If cash flow is the lifeblood of a business,
good marketing is the heart that keeps it pumping through the veins.”

Most businesses fail.  The primary reason they fail is poor cash flow.

This is typically because they underestimated their projected expenses, or just as commonly, they overstated their projected income.

This is because they didn’t have enough customers, or they didn’t have the type of customers they needed.

And this is often the result of bad marketing and advertising.

Who needs to advertise?  Simple - anybody who doesn’t get enough customers without it.  If you generate sales through referrals or if you have a great location with ample foot traffic, congratulations!  You may not need to advertise.  So, leave the money on the bottom line and retire sooner.

But for others, effective advertising is required to provide our need for new prospects, as well as compelling our previous customers to return again and more often.  Even businesses that have established major brands such as Toyota, Wal-Mart, Pepsi, McDonalds, need to continue to advertise like everybody else.  They know that if they stop, competitors will soon take their place in the public mind causing customers and cash to cease to flow.

Our audience, those potential customers or clients we are trying to reach, present a moving target.  All of their needs, opinions, and their perceptions are constantly undergoing change.  What do teenage girls wear today that they we’re wearing say, five years ago?  If you were going to buy a brand new car, would you expect to find cars that look like the one you drove eight years ago?  Do you read the same books or watch exactly the same television shows you did three years ago?  Probably not.

To stay on top of your game, you need to stay aware of changes in public or segment opinion and perception.  And it is often not easy to keep your eye on them, or predict where their preferences are headed.

This is why marketing and advertising is not an exact science.  There is no one way you should advertise or market you; if there was, we’d all look exactly alike.  In this arena, unique approaches are often rewarded simply because they are noticed more than what everyone else is doing.

In spite of all this unpredictable chaos, there are fundamental steps you can use to improve your odds of success in your advertising.  These steps involve research, planning, careful monitoring and adjustment. 

These are the things we at Red Crow Marketing perform on a daily basis.  If you need sales boosts and you're lost in the muddle of options, give us a call.  We'll help you sort it out and get your business back on track.

Low-Lying Fruit: Is Your Business Harvesting?

In the advertising and marketing world, you hear the phrase "low-lying fruit" pretty frequently. It refers to your existing client base, the people you know use your products or services, the ones you have in your company records as customers. All too often, when we are searching for the elusive bounty that is "profitable sales", we walk right past the low-lying fruit and go out of our way to struggle and strain to pick the one or two big apples off the top of the tree. We neglect the easy stuff because it's easy--heck, anybody can pick that fruit. But if we keep treating existing customers that way--walking right past in search of bigger, juicier fruit--anybody will pick that fruit, right off your tree.


If you want to be successful in your market, you simply must go out of your way to keep your customers happy and coming back for more. If you don't, someone else will come along and shake them out of your tree. Asking your existing customers to come back by offering them "thank you" gifts (like a coupon or a free month of service) will not only keep them happy, it will help you create referral business. Better yet, offer referral incentives to your current clients--"refer a friend, get a gift card." It helps retain and grow your current clients, builds brand awareness with potential new clients, and better yet, turns your customer base into a sales force you could never hope to compete with.


Feed, water, and nurture your customer tree, harvest the low-lying fruit, plant new trees from your existing fruit, and pretty soon, you'll have an orchard full of happy, profitable customers.
For information on how Red Crow Marketing and CORE can help you harvest your customers, email us today.