The Mobile Ecosystem and Business Opportunities in the Mobile Market

NOTE: Sorry this is so late getting posted! Technical difficulties (in a computer class, that's a bad sign...)

I guess a fair argument could be made that the wheel is the most important invention of all time; but I know a fair number of people who may argue that the mobile phone could hold that distinction (I, myself, may argue for DVR – but that’s another story…).

The mobile phone and its evolution are an amazing success story of our generation. In its infancy, the mobile phone was an bulky, ugly, clumsy piece of equipment seen only in the hands of wealthy business moguls in moviess. I myself remember a time when I couldn’t imagine always having a phone with me at all times. Today, I feel naked without one (yeah, scary thought).

The mobile phone has evolved not only in form, but in function. No longer is it merely a method of voice transmission. Today, business types connect to their company’s Exchange server while teens (and us more mature tech junkies) connect to the web for mobile music, web and video. This evolution of function offers a new forum for content development and distribution. To understand this opportunity, it is helpful, of course, to understand the market. It’s really the best way to know where the money is…

Over 1/3 of the world’s population now owns a mobile phone. In fact, in the US, there are 3.5 times more mobile phones than PCs. As expected, these phones primarly serve to transmit voice communications – but even this is evolving. As technologies change, the uses of the mobile phone are expanding to other realms. Data transmission, including video, music, text, and web is becoming increasingly more common among mobile phone users. This evolution offers both opportunities and challenges to those involved in content development and distribution.

The first and most obvious limitation to mobile device evolution is the limitations of technology. Recently, phones themselves have been changing to reflect capabilities that go beyond voice. Screen size and QWERTY keyboards are good examples of this. Bandwidth itself also presents a challenge to non-voice mobile devices.

Non-voice content is currently provided in two ways: The first, and most common is over-the-air, standard cellular transmission. The advantage to this transmission is that the provider not only controls it, but can charge for it based in volume of use. However, many providers are now offering flat-rate packages even for data transmission, making the latter advantage moot. The second method of transmission is short-range. This means via USB, Bluetooth, WiFi, etc. This method, also known as sideloading, is usually performed by the user, and offers less control for the provider. For this reason, “sideloading” was often disabled or impossible with many phones. The advantage to sideloading is that it takes less bandwith from the general cellular use – meaning more bandwidth for everyone else (and to be resold by the provider). It also allows for relatively easy transmission of large files such as entertainment video. Slowly, advertisers and developers are starting to see uses for sideloaded content, making it increasingly more common.

Currently, most mobile content is not user-generated, but is provided by a commercial entity. This content provides several levels of opportunity for different related businesses. These different levels start with the Content Owners, such as CNN or ESPN; this goes next to the Design and Development team, then to the Publishing group, and to the Hosting company and finally becomes the responsibility of the Marketing group. All of these sections offer unique opportunities for revenue in this growing market.

The mobile market also offers opportunities for advertisers. The evolving uses for the mobile phone offer a variety of chances for advertising. It is estimated that mobile data, web and “infotainment” will become an increasingly valuable asset to advertisers. Different areas of opportunity include downloaded video and tv, in-game applications, web search results, in-website advertising, and ads delivered over text message.

Whether it be from content delivery or advertising, the mobile market present many opportunities for businesses to take advantage. Understanding the “mobile ecosystem” helps us see where business opportunities lie. With the expansive growth of this new market, these opportunities should be plenty.

*Based on an extensive whitesheet published by Adobe discussing the “mobile ecosystem” and the future of Adobe Flash Lite.