It’s not news that the wireless companies are finally aiming their guns at mobile data usage and inherently it’s users. While users seem to be up in arms over pricier mandatory data plans, it seems they have forgotten how we all got to this point. Phones like the iPhone and the G1 has sparked a mass consumption of data that has never been experienced before and with any widely adopted product that relies on a service to power it, there will inevitably be a cost. Much like a drug, the first hit is relatively free (or low cost). But as more and more users are growing dependent on these services, the wireless providers have gained the advantage that allows them to rewrite the terms.

While Americans are generally more critical of these price changes, we tend to forget that the rest of the world has always paid more for these services.  As a comparison, I looked at Vodafone UK rates for the iPhone and compared to what American’s are paying for similar service on AT&T:

Vodafone iPhone Basic

• Minutes – 300
• Text – Unlimited
• Data – 1gb per month (£2 per MB overage)
• Contract Terms – 24 months
• Cost – £30 ($48.00 USD)
• iPhone 16gb 3GS cost – £149 (@242.00 USD)

AT&T iPhone Basic

• Minutes – 450
• Text – 200 @ $4.99
• Data – Unlimited
• Contract Terms – 24 months
• Cost – $74.99
• iPhone 16gb 3GS cost – $199.99

With the average iPhone user averaging about 500-700mb per month of data use, the Vodafone cap doesn’t leave much room for growth. Especially as more and more apps are dependent on externally accessible data, a users is sure to exceed the limit and incur hefty charges. Along with the reduced minutes and high phone price, it’s clearly visible that the US is still the cost leader in data (and cost per minute for wireless voice) for today’s smartphones. But as more and more US users are taking advantage of this, the backend services that drive these smartphones are unable to cope.

We often praise wireless providers such as Vodafone for providing a solid level of support for data users yet forget what is involved to maintain that level of service which is in this case are pricing controls. But as services continue to evolve (LTE is currently in the pipe for Verizon, AT&T, Vodafone, O2, Orange and T-Mobile Europe starting in 2010) it’s predicted that these pricing controls will adapt to not only provider better growth services to the end user but also to scale to smartphone growth overall which will effectively allow the continued evolution of the mobile ecosystem.

There is no mistaking that the warning bell  has been sounded for the digital agency. As more and more companies are taking control of their own brand using tools such as SEM/SEO, social networking, mobile and analytics tools, the concept of the digital agency is quickly becoming a fading memory.  Most people recognize this but perhaps don’t understand why this happening. The list of reasons is quite large but I would like to focus on what are the top three consecutive reasons why this is occurring.

1. Failure to see the big picture

Digital agencies are mostly transitioning traditional agencies and with that suffer from the pains of any industry in transition. For the digital agency, these pains come in the form of the old guards resistance to change. It’s not that they don’t have a willingness to understand change, it’s their cautiousness that holds them back from innovating let alone staying current. This cautiousness extends not only from product development but extends to operational procedures as well. What this ultimately creates is an environment where agencies don’t take the necessary risks which are the risk to innovate, risk to listen to employee feedback, and risk to adapt. Failure to address these are probably the single biggest reasons why agencies (especially transitional agencies) are presently being phased out in favor of companies taking initiative to meet their own branding needs.

2. Companies who are filling the void

Understanding change is the only way to be ahead of it. Agencies have not only lost touch with the technology but lack the level of understanding needed to make it work for their clients. This has essentially created a vacuum that is slowly being filled by companies looking to internalize and take back control of their brand advertising. More and more companies are filling their ranks with web-savvy users in an attempt to stay current and competitive. With more and more inexpensive tools at their disposal e.g. Google Analytics, SEM/SEO, and social media, agencies are slowly losing their relevance in the advertising space.

3. Unable to cope

I think ultimately, agencies are unable to cope with the level of changes required to keep them relevant in the marketplace. This especially applies to the large agencies who like any large business lack the ability to turn on a dime in an environment where flexibility is key . This in turn means that they are going to be unable to respond quickly enough to the demands of clients looking to them to represent their brand as effectively and thoroughly as possible.

In closing, while the writing is slowly appearing on the wall it is not a concrete fate. While we are seeing the concept of the digital agency slowly being absorbed by the very clients who they represent there is still hope. But this is only if digital agencies can start adapting to new technology quicker, utilizing (and listening) to existing talent, and taking the necessary risks to be innovative for their client.

The most recent article is a reproduction from an upcoming article written by me for my corporate newsletter. I’m mirroring it here for those who don’t have access to it. Enjoy!

It’s no question. The mobile application has become the default medium for mobile advertising. As more and more users adopt the new class of smart-phones, they are, by default, embracing what has become its’ biggest appeal: a large collection of very specialized applications performing very specific functions. It’s these new applications that are providing the new model which advertisers perceive as the next logical step in their endeavors. In-app advertising has taken off in the last 3 years. With industry growth in mobile advertising expected to reach $1.2 billion by 2011, there is certainly enough incentive to keep mobile advertising at the forefront of development.

No longer is the mobile phone viewed as a mere utility – an extension of our home telephone. Instead, people are now seeing their mobile phone as a natural extension of the desktop computing experience they’ve become accustomed to. Email and a near desktop internet experience are as accessible to them as the pocket holding their mobile phone. With that accessibility comes a whole new world of expectations, not all of which translate into the mobile space as predicted.

In effect, the traditional advertising we’ve become accustomed to encountering in the desktop realm is lost in translation to the mobile space.  Traditional advertising relies on channels of operation that are not only device inappropriate, but fall on blind eyes and deaf ears of users exploring their new found freedom in accessing the web from their phone.  Like the mobile phone, advertising has had to evolve, and quickly, in order to stay relevant by not only changing its’ methods, but also exploring uncharted territory.  Consider location sharing our next domain to explore.

The perfect storm is coming and you’re not going to hear about it on the Weather Channel. It’s a storm that started about 3 years ago with the iPhone and will likely end with the convergence of all things digital into a single, unified device. This future will be the result of the inevitable marriage of intuitive software and remarkably simple hardware. The mobile evolution has literally changed the way we view and communicate with our phones forever.

Location based services like Foursquare, Gowalla and SetCliq are driving the next stage of the mobile evolution and are consequently reforming mobile advertising. These location services are looking to make brick and mortar businesses relevant in a digital economy ruled by the likes of Amazon, an online company popularized for its’ ability to sell and rapidly ship almost anything straight to customers’ doors. Location services are also poised to serve as an additional avenue for branding initiatives.  For example, startups such as Causeworld are changing the way we give to our favorite charities by enticing users to visit their favorite stores creating a unique brand-awareness experience.change  Location based services may even change the way we search for employment. For instance, companies like DemandSpot are already exploring these new avenues by combining Twitter with location sharing, creating a new forum for users to virtually find anything, including their next job.

Remarkably, it’s not industry that is driving the emergence of location sharing services; it’s every day users who are now dictating how they receive the message. It’s going to be up to businesses, big and small, to be reactive to these changes and proactive and innovative in how they deliver that message.

You might have noticed the site looking a little leaner lately and that is due to a post cleanup (removing irrelevant posts) and a move to feedburner for the ones who do subscribe to the feed. This should make the feed more manageable and give some new options to the feed users out there. Leave a comment if you are running into any issues.

The last decade has seen major changes in how we interact with each one another. It’s almost been an evolutionary leap in how we’ve come from using email to instant messaging and from instant messaging to social media in our efforts to connect and stay connected. The biggest change however has come from the way we gather and absorb news from around the globe. Mobile has in some strange form of digital genetic amalgamation combined with social media to create the next generation of news reporter, you.

Feature rich smart phones such as the iPhone, the Droid and the others hitting the market quicker and cheaper than ever; it’s only natural that the way we interact with them has extended into the news we see, hear and read about everyday. Twitter has replaced the news ticker of older days with brief news clips delivered as fast as the news happens. RSS has replaced the front page paper with custom tailored news bits while Facebook and MySpace has started replacing those long phone calls with friends and family.

This is merely the logical progression of social technology and the pig picture that is mobile. As mobile transitions from a convergence device into the replacement of the desktop computer and the television, we can expect to have more news delivered to us quicker and quicker. Soon, the only thing need to evolve for us to catch up is us.

So like the rest of the world, I was lying in bed this morning slightly hungover from the night before when I started pondering. Unlike the rest of the world however, I was pondering what to expect from mobile in 2010. That stream of consciousness quickly headed toward what to expect from social media and mobile and from that thought stream, I was reminded of a conversation I was having last night about micro-payments and how they are going to change the way we interact with each other from an economic standpoint.

Companies like SquareUp have started opening the eyes of small businesses and consumers such as myself everywhere to the real power of mobile and how it is changing the way people view their mobile device. Instead of being a platform that people equate with single-purpose apps, games and music, companies are looking at turning the phone into a platform for everyday living. It’s already begun with social media and it’s not going to stop there. Mobile is well on it’s way to being that convergence device that started with the desktop computer.

My prediction for the next decade is the beginning of the end of the desktop computer as we know it and the true birth of the mobile computer and it all starts with the mobile micro-payment system. I think it’s going to take hold with card based payments for like SquareUp and Verifone and then extend into NFC (Near Field Communications) forms of payment where our mobile device replaces our the wallet full of credit cards.

Who knows, with how things are moving I might finally get that jet pack in my lifetime after all!

It’s almost 2010! That generally means the following:

• 1. Lots of drinking
• 2. Lots of eating
• 3. Hangovers
• 4. New Year’s resolutions

I can tell you that I plan on doing at least of three of those before the night is over.  The one I’m certain about is my NY resolutions. A new year represents new possibilities as customary, I’m putting them on a list in a effort to motivate myself.

2010 New Year’s Resolutions:

• 1. Turn unpixelated.com into something useful
• 2. Turn chadmullinax.com into something personal
• 3. Lose 30 lbs.
• 4. Work on being a better listener
• 5. Make at least one major life change

Well folks, there it is. Here’s to hoping I keep it on track.

-Cheers!

I’ve spent the last 5 years or so trying to figure out what I really want to do with this blog. I’ve tried making it a personal outlet for some of my craziness, I’ve tried to include personal interests as well. I think in the end though, I’ve been gravitating toward making this a tech focused site with a specific focus on mobile. I increasingly see mobile as the next frontier in the the great technology revolution. So on that note, I’m planning for a complete site redesign and a new site focus with less about me and more about mobile news and my spin on where I think it’s going. So to all one of you who read this site, get ready!!

[update] – Yeah, that project is going to have to go on the backburner or it’s going to take another form.