Archive for August, 2011

Social Networking and Business 101

August 29, 2011 Leave a comment
By Chester Ng, Sales Director (Southeast Asia) 
If you are a small business owner, you don’t need to spend a lot of time or money to have a presence on the mobile internet. Free social networking tools are making it easy to create ‘mobilised’ content to attract and interact with consumers. You can also publish updates on your own, without having to depend on an agency or web developer.

Best of all, you’ll reach a large market segment that depends on mobile handsets to access the internet.

In today’s blog post, I’d like to share some examples with you of how major brands are using social networks. But whether you own a hair salon or a restaurant, work at a local retailer or manufacturer, you can apply these ideas to your own business in ways that will benefit your company’s bottom line.
Read more…

Categories: Chester Ng

Mobile Hotspots : Latin America and the Caribbean

August 26, 2011 Leave a comment
We recently highlighted hotspots in Latin America which generated a lot of interest among advertisers. This update outlines some of the devices used in some of the key markets in the region.

Costa Rica
We have also expanded this hotspot “watchlist” to include the Caribbean nations. Please download the latest review abstracted from our Campaign Planner.  

Categories: hotspots

Mobile Hotspots : Central and Eastern Europe

August 19, 2011 Leave a comment
We often share market opportunities and wanted to highlight hotspots in Central and Eastern Europe.

Last year, a report called “Do you CEE?” was published which studied Central and Eastern European internet ecosystem. What is clear from the report is that the CEE is:-

  1. A market full of incredible potential for online advertising growth, 
  2. Growing from strength to strength and appears to be a forward-moving and….,
  3. …has “much more room for new media”

Our own data also shows that countries in Central and Eastern Europe have had a year of tremendous growth in mobile. Advertisers are taking advantage of this particularly in Turkey, Poland, Romania and Russia.

Click here to download a brief summary of opportunities across continental Europe.

Categories: hotspots

What’s The Shelf Life Of Mobile Games?

August 16, 2011 Leave a comment

In the last 7 months our ad network has doubled in size; possibly because there are more (new) surfers on the mobile internet and also because they (early adopters and newbies) are spending more time surfing. Their voracious appetite for content has improved the longevity of many game titles on Djuzz. We looked at the Top 100 games of the last six months to see how older content fared against the latest additions….

  1. By August 2011, the Top 100 games this year have had more than 34 million downloads.
  2. More than a quarter of these titles are from HOVR who has 26 games among the Top 100. These include Underground Racer, 4×4 Extreme Rally , Big Game Safari, Euro Football, and Battle Line Okinawa. Collectively these titles have been downloaded 7.5 million times in the last 7 months.
  3. Herocraft has 10 titles (including  Mr Revolver, Dragon & Dracula and Robo 2) which secured 2.5 million downloads.
  4. Youpark has secured 2.2. million downloads from 9 titles and
  5.  inLogic has 7 titles (including long-time favourite on Djuzz Fatal Fist, among others) that have been downloaded 1.2 million times.
While popular wisdom among developers suggests that “celebrity” titles have a longer shelf life among games (2-3 months) we could not help noticing some evergreen favourites on Djuzz. Mr Revolver (by HeroCraft) traces its lifeline on Djuzz to Dec ‘09 and BomberXmen by Falcon Mobile also from Dec ’09 that tops off longevity with almost 2,000 downloads per day !

While it may be too early to tell, we are keeping an eye on these trends to see how developers and brands can leverage rich content offering to develop sustainable distribution to mobile surfers. 

Expect more on this in our Q4 Report !

ps The shelf life of unbranded games is rumoured to be 2-3 weeks !

Categories: mobile gaming, report

Some Advice for the Makers of White Box Phones (and the rest of us too)

August 12, 2011 Leave a comment
By Michael de Souza, VP Media

Walk into a handset store in the popular shopping mall ITC Roxy Mas in Jakarta or District 1 in Saigon and there’s a very good chance you’ll find rarely heard of makes being sold alongside the international mass-market brands.  Some phones, though, like the Blueberry and ti-phone, have a familiar ring to them.

These generic ‘white-box’ phones are selling just about as well – sometimes better – than their big-name competitors and they now offer the same features, and then some, at a cheaper price.

Telecom carriers and brand-name manufacturers are taking a big hit, but if the no-name upstarts are to survive and flourish, they should take a few tips from the likes of the iPhone and Samsung. Otherwise, they’ll be knocked off the block by the next company that can slice a penny off the cost of a chip or screen.

Background: White Boxes Are In

It’s no secret that white box phones are cheap (US$50 to $100) and have been winning market share for some time. Generic handsets – taken as a group – are the market leader in Vietnam and hold the second and third largest stakes in several other markets. Just take a look at these stats:

  • Vietnam: 40% (Nokia is in second place with 39%.)
  • Indonesia (21%, second largest)
  • India (12%, third largest)
  • Kenya (11.5% third largest)
  • Philippines (11.5%, second largest)

White box handsets today have bigger screens, full QWERTY keypads and processors that can handle most multimedia content. In fact, a consumer can buy a generic phone that can do everything an iPhone or Blackberry can do at a fraction of the price . . . and without having sign a 24-month contract with a telecom carrier.

The user experience can be glitchy at times and is honestly not as good as that of an iPhone, but these generic handsets have additional advantages. Some phones, for example, offer slots for duel SIM cards so a consumer can have more than one active number at a time, a feature that mainstream handsets have shied away from in order to avoid upsetting the telecom companies.

Who Makes the White Boxes?

There are three main categories of players here:

  • Chip manufacturers – like MTK in Taiwan and Spreadtrum in China — who build the processors that power smartphones. They make A LOT of these and produce each processor for as little as USD 2-3 each.
  • Vertically integrated manufacturers, who build and spec entire handsets (buying key components from likes of MTK and Spreadtrum)
  • Retail brands that spec white box handsets and brand them (like Maxis in Malaysia or Nexian, an Indonesian company that was recently bought by India’s Spice Mobile). Their key offers are own-OS phones retailing for USD30-50 each and Android-OS phones that cost about USD100.

Often, the white box manufacturer wills send a glorified salesperson to a carrier, who will specify a price point and the required features (say $55 for xxx thousand handsets with 3G, a certain screen and processor, etc.). The phones are then made based on that order rather than the other way around. The manufacturer very quickly sources the parts and fullfils the purchase order.

Impact on the Industry

Major players like Nokia and RIM are losing market share . . . a fact reflected in their share prices. Nokia shares are down nearly 60% since mid-February; RIM is off 68%. But if you look at our stats, it’s definitely not game-over. Nokia is still the biggest player in most markets.

The white box business model also poses a real threat to telecom carriers. Until now, the two have built a strong symbiotic relationship. Carriers subsidise the cost of premium handsets – driving up demand for the phones – while securing the loyalty of customers who sign 12 and 24-month contracts. But cheap quality handsets turn this model upside down.

It’s worth nothing meanwhile that Samsung is reading the market well. True, the share price of Samsung Electronics is off (28% since mid-January) but the company’s smartphone sales grew by 51% in the second quarter of the year and it’s one of the top two handset makers in 7 of 10 of BuzzCity’s top markets. 

Samsung is setting the right price points and choosing attractive feature sets in developing markets. The Android-powered Galaxy S2 also competes head-to-head with the iPhone in developed countries. And in both cases, Samsung is using attractive content and services to develop a relationship with consumers.

There’s a wave of demand for data meanwhile as users take advantage of the full capabilities of their handsets. New market segments are now accessing multimedia content, browsing the internet and checking email from their phones. This increased consumer usage of course opens up new opportunities for marketing and advertisers.

Lessons for White Box Manufacturers

While competing mainly on price has been a successful strategy to date for white box manufacturers, it’s a risky strategy and one that will fail in the long term (which in today’s mobile industry arrives sooner than you think). Margins are raser thin, so as soon as another company comes along that can shave a penny or two off the component prices, you’re history.

So if White Box #1 is going to thrive – and not fall to White Box #2 – it is going to need to build user loyalty by offering BRANDED SERVICES and CONTENT. Manufacturers should study their markets to learn consumer interests, which they can monetise through content sales and relevant offerings.

This is nothing new. Branded services fueled the success of today’s best-known brands. Blackberry took instant messaging, which had been around for 15 years, created a walled garden and gave people code numbers. It became cool to BB Message. Apple has taken video messaging, called it Face Time and it’s considered revolutionary.

And all of the major players offer content stores. Apple has iTunes, Nokia – the Ovi Store and Android – the Android Market.

Most people now treat handsets like a PC: apps are more important than the device and consumers want to be able to customise their phones.

The Last Word

The mobile industry is changing before our eyes. Twelve months ago, you couldn’t have predicted that Nokia would be in the trouble it’s in now. Change is accelerating and it would be foolish to predict a year in advance. But if today’s white box makers want to thrive, they need to grow up and become brands. And by moving towards the mid-tier market and offering a range of features, it appears some players are already headed in this direction.

Categories: Michael de Souza

Djuzz Top 10 – July 2011

August 10, 2011 Leave a comment

In July, more than 7.5 million games were downloaded from our games portal Djuzz.  The Top 10 were …

Need for Speed Shift
Outlaw Racing  2011
Up 15 places
The Sims  World Adventures
Down 1 place
Command and Conquer: Red Alert Mobile
Down 1 place
Underground Racer
Cricket T20 Fever 3D Android
Tom and Jerry – Mouse Maze
Airforce  2
Up 8 places
Ben 10 Power of The Omnitrix
D Street Racing
Up 1 place

New to the charts is Outlaw Racing 2011 which climbed 15 places to get to the 2nd position in July. The top climbers also included Airforce 2 which landed in 8th place having climbed 8 places.  Other big climbers in July were Ibibo Browser (up 2,870 places), Ultimate Mortal Kombat 3 (up 23 places) and EA Cricket 11 (up 45 places).

By the end of July more than 12,000 games were hosted on Djuzz and distributed via 1600 catalogue partners.

Click here to download the Top 50 Games on Djuzz.

Categories: mobile gaming, report