Category Archives: Strategy

May 21 2013
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Business, Digital Strategy, Social Media, Strategy

Why Yahoo Bought Tumblr?

“F*ck yeah”

Ended David Karp (founder of Tumblr) his announcement about upcoming Yahoo-acquisition. He is not the only one amped up about the deal. Internet has been buzzing about the Yahoo´s recent acquisition of Tumblr. On theory marriage of Tumblr & Yahoo looks rational. Will it be that on practice?

What will Yahoo get from Tumblr?

1. Reach (especially to the young target audience)
Currently Yahoo has over 700 million unique visitors/month and Tumblr with its 300 million unique visitors and over 100 million blogs might help it bypass the 1 billion-visitor threshold. Yahoo is buying growth.
Tumblr user base is also the youngest among the different social media channels. It is stronger than any other social network within 13-18 and 19-25 demographic. As the buying power of teens and tweens increases even more, this target audience becomes more and more lucrative for marketers. It is therefore important to reach them young and maintain that relationship.
2. Gateway to Social Media & Mobile
Like many of its peers, Yahoo has been struggling with social media & mobile. It actually has a more impressive track record with screwing up potential social media opportunities (Flickr-which has been rewamped today as well, Geocities, Del.icio.us) than utilizing them. By buying Tumblr, Yahoo will get healthy social media which has been designed to be mobile-first from the beginning.
3. Street Credibility
Yahoo has not been a flavor of the month in recent years. Tumblr acquisition is exactly the kind of bold move that shareholders love. It is also the most prolific action Marissa Mayer has yet announced after taking the helm of the struggling company last year. Will it be the right move? That remains to be seen.

What will Tumblr get out of the deal?

Coherence & Monetization
Being the most user-friendly blog platform has its benefits, but also certain challenges. Tumblr is also the world´s most NSFW blog platform filled with porn, politically incorrect gifs and one-off-jokes (not even saving the founder David Karp). How Tumblr will maintain its characteristic quirkiness, but become “brand safe”? Currently adult sites are the leading category of referrals for Tumblr. Yahoo, as a household name, will give more legitimacy for Tumblr and probably help to clean up its act.
Tumblr has also been struggling with monetization and its business model throughout its whole existence. Whatever you say about Yahoo, you cannot dispute their skills and strengths on traditional ad sales. With Yahoo sales teams with interactive advertising (Tumblr) on their toolkit, it will be quite interesting selling point. The challenge is to find ad solutions which are seamless and enhance user experience.

What next?

Based on the statement from Marissa Mayer, it is quite improbable to see radical changes with Tumblr in the immediate future. The model for the Yahoo/Tumblr-coexistence will probably follow Instagram/Facebook –route where Instagram has remained relatively independent from Facebook. Many are likely to draw parallels between this acquisition and the quite ill-fated Geocities-acquisition from 14 years ago, but I am not that pessimistic. Tumblr definitely fills certain problematic gaps within Yahoo´s current strategy.

The crucial questions are whether the synergies that look obvious on paper come to fruition in action and was the price right?

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May 20 2013
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Advertising, Digital Strategy, Marketing Strategy, Planning, Strategy

Modern Marketing: Are You Throwing Javelin or Shooting Hoops?

I might be biased as a Fin, but javelin throw is the most entertaining track & field sports ever. However, what makes good spectator sports is not necessarily good way to do marketing. Many companies are still stuck in the old ways of doing marketing, which painstakingly resemble the Finnish national sport:

Javelin Throw: Traditional Marketing

Seppo Räty, the best Javelin dude in the world

Seppo Räty, the epitome of no-frills javelin thrower

– Fixed amount of trials: In javelin you get six trials to prove that you are worthy. In traditional marketing you do couple of campaigns a year.
– Individual: You only worry about your own performance.
– No room for improvisation: You do what you have practiced and try to duplicate your practice performance. If things start to go sidetrack, it is hard to make changes in competitive situation. Same with big marketing campaigns, when they veer off-the-track you cannot really save them. When javelin is released, you can only hope for it to be a good throw.
– Make it or break it –situation: You either make the throw or not. Your bi-annual campaign is either hit or not. Success of the whole year is judged based on that single try.

Basketball: Modern marketing

In your face

This dunk is one of the many baskets done on the single game.

– No limit on trials, but limited amount of time: Trials depend on your opportunities you get during the game. The best players seize the good opportunities, but occasionally take bad opportunities as well.
– Collaborative: The success is not only based on the individual, but on how well your team is playing and also the level of your opponent.
– Room for improvisation: Practice is important and creates the core of what you do well. Your core skills also contribute to the average probability of succeeding (among other things). That is why it is important to invent as you go along. Success is about talent, hard work & many trials. More you try, the luckier you get.
– End-result matters: Individual throw can go in or not. Only thing that matters by the end of the day is the total amount of shots you got in and have they contributed to your team win. Some shots are more important than others though. One of the most important skills nowadays is the skill to recognize those important shot opportunities and seize them.

If we want to succeed in this changing world, it is not sufficient to improve our technique in the existing game. We have to totally change the sports we are in.

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Mar 18 2013
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Advertising, Business, Marketing Strategy, Planning, Strategy

Calculate the Success Rate of Your Next Marketing Campaign

Based on years of empirical research in real working environments, I have finally cracked the formula for estimating the success rate of your marketing campaign.

It is the following:

SR=C-(10%*X)

SR= Overall succes rate of the campaign

C= Estimated Concept Succes Rate. Below are the average success rates for different type of concepts:

Great Concept (GRC):100%
Good Concept (GOC): 70%
OK Concept (OKC): 50%

If you even your worst day will do something which is below “OK Concept”, you should probably change profession.

x= Amount of every very adjustment, addition, alternation, modificiation and other mutilation given in the revision routes.

So what we can learn from this formula?

1) If you want to maximize your success, aim always for the great work.
2) Even the greatest of concept can be killed with too many modifications. Five revision routes reduce the success rate of your campaign to the same as flipping the coin.
3) Most often, less is more. When you have simple and effective concept in your hands, cherish it. Those are usually the ones, which will succeed.

Mar 15 2013
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Digital Strategy, Insight, Marketing Strategy, Social Media, Strategy

Google Reader and the Missed Opportunity of RSS Feeds

Google Reader is now officially announced dead. Slowly it has been dying for quite a while.

I am one of the apparently very few relics, who have been using Google Reader actively for years and years. Personally it has been the most useful Google tool for me right after search and Gmail. Without using Google Reader (and other digital fossil Del.icio.us, which is still alive but struggling), writing of my first book would have been much more tedious process.

Looking from the business perspective and reflecting the overall downward trend of success of RSS feeds, the decision to kill Google Reader is a no-brainer. Everyone gets their news and blog posts either from search or from social networks, who needs separate place to go for their internet content?

Well us professionals and hobbyist, for instance.

I am passionate about few things. Other half is a work related and others are hobbies (basketball, hip-hop music, literature and movies). Google reader was my starting point for getting my daily fix on those high-interest subjects. Additionally I also use social networks and Google search to find stuff, but for me those are not the primary sources of information. When sharing is the only currency, it will be eventually lead to dumbed down content. Just watch any of the titles of your average web publication.

So farewell RSS feeds, the social media sharing is the way to drive traffic these days.

The demise of RSS Feeds, can be summarized to one word: complicated.
Starting with the name: RSS sounds like some kind of disease. Then there was the ease of use, or lack thereof. Although you did not have to be rocket scientist to get yourself RSS feed reader, it required still more commitment than the normal internet user wants to have with their platforms. The adding of the RSS feeds was not intuitive enough and the logo did not really reach adequate awareness. If following and subscribing would have had button something akin to Facebook like, the situation might be totally different.

Personal blogs have been largely replaced by tweets and Facebook status updates. The promise of RSS Feed Reader is still valid. You get the news you are actively interested to one place. People have not stopped consuming content in the Internet, more the other way around. The way to consume it has shifted more towards social, but there are some users who want to have also more curated experience for their content. Those users are not necessarily lucrative target audience.

Like Rob Fishman points out in his excellent article in Buzzfeed, Google Reader was the closest to functioning social network Google has ever been (excluding maybe for YouTube). I am deliberately excluding Gmail, as the nature of it is more 1-to-1 connections. As the “success” of Google+has shown, building it over Gmail was not necessarily the wisest decision. The mass using Gmail does not necessarily convert to more public sharing of social network, although it might make business sense on the paper. If Google would have invested to Google Reader and pushed it organically towards more social experience, they might have really successful social platform in their hands.

I was actually really active in Google Reader back in the day and sharing content like there was no tomorrow. That lasted until it was connected to Google+, which made it too overbearing. I was not the only one. Google Reader really never got a chance to truly try to strive in the marketplace on its own. Like former Google product manager explains in Quora, the Reader developer team was stretched thin and utilized mostly in other failed projects. Google Reader –based social network would have been the social platform, which is still truly lacking in the marketplace. The social network that is built around your user interests and passions. Maybe the new MySpace is trying to fill that gap, at least with music.

I will not shed tears for Google Reader. The decision makes definite short-term business sense. On the long run however, we will never know. Disappearance of Google Reader might have surprising effects on the digital content ecosystem. Although it has not been major traffic driver for the sites, it might alter and shift the readership radically of certain content providers.

Killing Google Reader and betting with Google+ are probably smart decisions. The real question is, are they wise decisions? Meanwhile Google Reader remains as an artifact of the potential social media success Google is still desperately trying to achieve. Until 1st of July, that is. As I am writing this, I am moving my Google Reader subscriptions to Feedly.

Old habits are hard to kill.

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Mar 14 2013
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Business, Digital Strategy, Planning, Strategy

Wearable Tech: The End of The Mobile as We Know It?

When observing people playing with their smartphones, tablets and phablets*, it is quite hard to believe that handheld mobile phone is only 40 year old invention and has been in mainstream use only for the last twenty years depending on the country. The influence of mobile phone to human behavior has been profound. When comparing current smartphones to the first bulky ones, they are quite far away from its original purpose of speaking to each other. New devices are definitely mobile, not necessarily that much of phones anymore.

So enter the wearable tech. It will be the next step for the mobile revolution.

Phone has been just a transition period with mobile. Mobile consists of three important elements: freedom, access & connection. You can achieve those with multiple devices. When assessing the future of mobile, there are two major shifts happening. Firstly, we are moving to the age of different screens. Secondly, we are totally defining mobile in a new way. It easy to dismiss wearable tech as a fad, but Sergey Brin raises really important point in this comment from Ted Conference few weeks back:

“Is this the way you’re meant to interact with other people? Is the future of connection just people walking around hunched up, looking down, rubbing a featureless piece of glass? It’s kind of emasculating. Is this what you’re meant to do with your body? You want something that will free your eyes.”

Using of smartphone has created new behavior patterns for us (aptly documented in the excellent Curious Rituals). Wearable tech is ideologically step backwards from smartphones. It is technology adapting to existing human behavior instead of actively changing it. In a way, wearable tech is more natural than using smartphone.

When thinking about possibilities of wearable tech, I would closely benchmark sports companies. Quantified self –movement naturally started from sporting and has evolved lately to other areas. Nike FuelBand is one of the first crossover wearable tech products, which has its roots in sports but expands to other areas as well. The really big potential is with the normal people. Being a sports fanatic myself it is often hard to forget that the target audience of us is lucrative but still quite small. The wearable tech company who is able to tap the mainstream audience will win. And win big: the wearable tech industry is estimated to be worth of $6 billion by the end of the year 2016.

When creating wearable technology, we have to think quite deeply about the issue of what people would wear and what they are wearing now? Looking from that angle, the wearable tech products most likely to hit mainstream should be quite familiar product types. My hunch is that they will be either watches, glasses or clothing (or combination of all of these):

The Revenge of the Watch
Watch has been relevant for hundred of years. You do not necessarily use it to its original purpose of timekeeping, but it has still maintained its role as a status symbol for many people. If you check time from your mobile phones, why would you not send your WeChat-messages from your watch? It will be interesting to see will certain existing watch manufacturers with strong brand equity challenge the technology companies in this field?
Watch out for: Kickstarter all-star Pebble, The rumoured iWatch, traditional existing watch manufacturers, sports watch brands (such as Polar or Suunto)

Using Glasses to Look Be Smarter
What can I say about Google glasses that is not said in this video (NSFW)?

Nevertheless, I want to acquire one pair, despite all the privacy concerns.Google Glass has already competitors as well, but all the eyes will be on the Google on this one.
Important players: Google Glass, Luxottica (world´s largest eyewear company)

Maxwell Smart was Right
With clothing technology this rubber boot phone is definitely the most interesting one:
Rubber Boot Phone
(Designer Sean Miles project for O2)

Jokes aside, the smart clothing has more supporting function with wearable technology accessories (maybe excluding bracelets). Different sensors can track things in clothing, but it is unlikely that we use our underwear as the main starting point for our mobile communication or access. That being said, combination of smartphone and smart clothing will probably be quite crucial in the transition period when moving to the new era of mobile. Especially if quantified self- phenomenon continues expanding to even more mainstream audiences.

Will wearable tech be the future of mobile?
I truly think so. The question is when that future is evenly distributed to the whole world?

* Contender for the most annoying word invented in last couple of years.

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Mar 07 2013
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Advertising, Insight, Marketing Strategy, Planning, Strategy

Are You Outrageous, Useful or Oblivious?

Catching people´s attention is increasingly more difficult. Skipping ads is easier than ever and the opportunities to enjoy truly great entertainment (which marketing communications seldom is) more vast than ever. People really do not care about majority of brands. Surprisingly they have more important things on their mind.

To make people care (even a little bit), you first have to make yourself known. In the current marketing climate, there is only two ways for that. You are either:

1. Outrageous
World´s most successful branded app is less popular than the most successful fart app. People love dancing babies, cats, crazy dances and many other inane things. If you want to create truly outrageous brand campaign, you have to benchmark the popular culture phenomena and be at least on the same level or go beyond that.
When to go outrageous?
When you want to get instant attention, maximize the eyeballs and virality of your campaign.
What it requires from the brand?
Balls
For what brands it works?
For lifestyle brands with edgy brand persona.

2. Useful
Moonwalking pony with Fleetwood Mac soundtrack does not work for all brands.
If you want to create something truly useful, first of all you have stop browsing all the marketing blogs (expect this, of course) and start browsing how the people are actually behaving.
You have to build your brand experience around the real experiences of your target audience. You should never assume that the audience would care about your brand a single bit unless you bring some value for them. Creating useful things is more demanding, difficult and than to shock people or get cheap laughs. However if you can truly become part of people´s behavior, it is much harder to break that relationship instead of jumping to the next outrageous fad.
When to go useful?
When you want to create something long-lasting
What it requires from the brand?
Patience & Investment
For what brands it works?
For what brands it would not? If you cannot create anything useful for your target audience, maybe you should do some deep brand soul searching.

Caution: Even though you create something truly useful, you have to still promote it. If you just build it, they will not come. 80% of branded apps have under 1000 downloads. Firstly because many times they are low quality marketing crap and secondly because they are poorly promoted.

If you are not either of the above, you have the one last resort for your brand:
Total oblivion.

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Mar 04 2013
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Digital Strategy, Marketing Strategy, Planning, Social Media, Strategy

Mastering the MIM: Marketer´s Guide to Mobile Instant Messaging

SMS is dead.
Long live MIM.

WhatsApp has been a major contributor of 25% decline of SMS in Spain. Chinese WeChat has over 300 million users. Over 90% of Korean smartphone users use Kakaotalk. These are just a few examples of the rising trend of the mobile instant messaging (MIM).

Instant messaging as such is not a new thing (remember ICQ?), but there are certain reasons why it has had its resurrection now:

1. Phones are increasingly more about data than talking
In developed countries nearly every new phone sold is smartphone. Smartphones are increasingly more about being smart than phone. There is app for that, now also for the basic phone features (talking and texting).

2. That data is getting faster
New 4G LTE (Long term evolution) phones will enable high-speed data for mobile phones. This opens new opportunities for what kind of content we can exchange in MIM platforms.

3. Facebook is so huge that it is already mass broadcasting
If you are average Facebook user sending your status update, the odds are that the message will be seen by your family, friends and colleagues plus countless of people you do not even know about. This is great, but serves more of people´s need for vanity and instant recognition. The most meaningful conversations happen with the people you know. Same phenomenon has been also reason for the success of Path.

4. There is always need for 1-to-1 communication
Some might argue that Facebook message does the trick. However the challenge is that Facebook is already flooded with so many messages, it is not that reliable way to catch people (at least not all of them). Phone has been relevant for so long because you can be quite certain that your message is received. Although Facebook has increased the number of “friends”, it has not really increase the number of “real friends”. The amount of those real friends is limited and many of interactions with those people we want to keep private.

5. World is getting smaller
Majority of MIM applications work internationally. The bread and butter of Telcos profit margins has been charging for international calls and roaming. MIM applications do not have those international boundaries. You want to communicate with your friends no matter where they geographically are.

6. World is getting more visual
Although SMS-messages have been relatively cheap, telcos are still taking quite big premium with multimedia messages. With MIM applications you can send whatever data possible and the because of the point 2 the alternatives are actually increasing all the time. Basic SMS- type of messaging is just the beginning for MIM applications and there will be probably lots of innovations in what kind of communication there will be.

What are opportunities for marketers?
Many MIM applications are still quite in infancy regarding their business model. Opportunities for marketers also vary greatly between different platforms. For example paid application WhatsApp is totally ad-free and there has not really been marketers using it (expect for personal use). On the other end of the spectrum is the WeChat, which is currently almost like Wild West with Chinese brands flooding there.

MIM applications are interesting part of mobile strategy for marketers. They provide straight access to consumer´s main screen: smartphone. As the smartphone is always within you, that is the straight pathway to consumer connecting digital to retail. That is the connection which every marketer wants to master. It might be that clever way to utilize MIM is the key for cracking that task.

But why anyone would want to have 1-to-1 connection with brand?

Compared to Facebook where your brand page reaches only fraction of your fans, MIM application has almost the hit-rate of 100%. This is creates a big responsibility for brands. You cannot flood your fans with messages such as “Like if you are ready for the spring!” or “Tell us in one word: (Our Brand) make me ______”. You are truly invading personal space with your message so it needs to add some real value for the consumer. In Facebook you are more likely to get away with stupid brand messages, although they are definitely not recommended in there either.

Here potential routes for marketers to utilize MIM:

1. Daily Deals & Promotions
Deals and promotions are always appreciated by the consumers. With MIM you can connect it phones and also create the sense of urgency to redeem those deals. Of course, provided that these deals are good.
2. Daily tips
MIM provides opportunities also for content marketing. It could be daily practice tips for sport brand. It could be song of the day for music service. Of recent campaigns Oreo Daily Twist could work in Whatsapp. The most important thing whether deals or content, is the expectation management. You have to be really candid about what kind of messages you send and how often. You have one change to lose trust and none chances to get it back.
3. Extension of loyalty card
Having own MIM circle for the valued customers could be great idea for rewarding your best customers with VIP treatment.
4. Rapid Market research
Combined with promotions or deals, MIM also provides vehicle for doing rapid market research and gather intelligence for your loyal customers.

It is too early to tell whether MIM will be the secret weapon that connects digital and retail. One thing is certain though: MIM cannot be left out of consideration for your mobile strategy.

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Feb 20 2013
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Advertising, Business, Marketing Strategy, Planning, Strategy

What is Good Work?

One of the most common terms (besides ideas) in agencies, which is thrown around is “good work”. Probably everyone has different meaning for it, but I have always believed that good work is just two things.

It is effective and entertaining:

1. Effective
Good work has to provide above-the-average business results for the client. Average is not enough, because average results you can achieve with crappy work pumped up with strong media push. Also to go above the average means that the strategy work is not just stating the obvious. To be truly effective, the strategy must provide either great answer to current business problem or find lucrative business opportunity. Great strategy is all about finding the relevant difference.
Advertising is not art, so if the work cannot be measured with commercial criteria it cannot be truly good either.

2. Entertaining
Although advertising is not art, it is not door-to-door-selling either. Spamming your whole client list might be effective done once, but would ruin your hard-earned reputation at the same time. In marketing communications you are maximixing the effectiveness on the long run, not getting quick wins which are cheap.
Entertaining does not mean cheap laughs either. Zero Dark Thirty is entertaining movie, although it is not funny. Great advertising finds the right emotion to suit commercial purposes. Majority of our intentional consumption decisions are done emotionally (rational car buyers?) so if you do not spark any emotion you do not have the chance to be truly effective either.
Entertaining people is harder than ever. Our marketing communications competes head-to-head with the best content in the world. So when you are doing your next brand mobile application, ask yourself is this really on the same level as other good (not marketing) applications? If not, it does not probably take off.

In advertising, we tend to define the work too often with its novelty aspect. We are obsessed of doing something, which has not been done before anywhere. Sometimes it is for good reason. No one has not build the world biggest toilet paper mummy for any toilet paper brand (at least I hope so), but that is for good reason. That is completely stupid idea. In the search of novelty, we tend too often to shift doing gimmicks. More often than creating something completely new, good work is about looking the old things from new perspective.

Good work requires strong strategy with huge creative leap. On the long run, the selection is not either effective or entertaining. If you want to be ahead of your competition, you have to be both.

Also I have only talked about good work. The great work is totally different beast. Great work changes the whole world.

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Jan 17 2013
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Advertising, Business, Digital Strategy, Social Media, Strategy

Do You Still Want to Hear About Social Media Trends 2013?

Although everyone and their mother has already given their point of view about current social media trends, here are couple of more predictions.

Good folks at Kurio (Finnish Digital Marketing Think Tank) asked me and 17 other Finnish “social media experts”(stated by the report, I prefer to just be “the planner guy with funny glasses”) about social media trends in 2013 and conducted interesting study about the results. They identified nine emerging trends in social media for the year 2013. The report is in Finnish, but the main trends can be read below. All the finnish-speakers should definitely download the report below.

Big Social Media Themes for 2013  (my comments in italics):

1. 2013 is the year of Mobile (this has been my favourite prediction for at least five years. The main difference is that this year I am actually believing it)
2. Multichannel story-telling is the way to create modern phenomena (Or put it this way: If your marketing activity is not multi-channel/channel-agnostic/holistic/360/add your favourite buzzword by nature, it will be doomed to fail)
3. Lack of human resources is the main constraint in social media (The problem is two-folded, there is definitely lack of people actually working with social media. But there is actually even bigger talent problem: there are lots of “social media experts”, “community managers” but not enough actual strategic thinking about what we should do with and in social media. Social media without strategic thinking behind it is irrelevant at best and purely dangerous at worst.)
4. Big Data (Like the report also points out: we have lots of data & information, but do we have talent, resources and capabilities to turn that information to action?)
5. Content: Interesting, current and value-adding (Which starts the discussion about what is the good content? I still believe that good content is either 1)useful 2)funny 3)on some rare instances both)
6. Picture tells more than 2013 words (Despite the revolt against Instagram, people will rather share more pictures online than less in 2013)
7. Social cannot be just a digital or marketing function, but should be thought holistically (Definitely true, but also the most difficult to achieve. On some instances to make the change requires totally new management, who understands the possibilities of digital and social media. On other instances it requires adequate mix of sticks and carrots to ensure the competitive advantage in digital age)
8. Social media channels are starting to resemble more bought media (The pressure to monetize is already showing with different social networks, especially with Facebook)
9. Users are more and more critical towards marketing activities in social media (You might fool a customer once, but not twice. The opportunity to fool once has already passed)

Download the report (in Finnish).

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Oct 25 2012
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Business, Digital Strategy, Social Media, Strategy

Why Google is Struggling with Mobile?

The future of the business is mobile.

Or so they say. Currently it seems more that future business of companies is ruined by mobile. Zynga has lost 85% of its value, because the mobile adoption has been faster than expected. Facebook has been stumbling with mobile advertising, although its recent mobile ad revenues beat the industry estimates.

Even the traditionally steady high-performer Google has been showing signs of slowing down. The problems have their root cause in mobile: Motorola acquisition has not yet paid off and mobile advertising has driven average click prices down.

Here are five other reasons why Google (like many other companies at the moment) is struggling with the mobile:

1. Status Quo Bias
For years the AdWords has been the hen that lays the golden eggs for Google. As humans, we are more likely to believe that things remain the same and are more likely to select to stay in status quo whenever possible. Every company encounters status quo bias at some point. AdWords are still selling like pancakes, the main difference is that the average click price has dropped for four consecutive quarters in row.
Although no one accuses that Google is not doing mobile innovations and investments, there has apparently not been pressing need for them to roll them out faster.
2. Android Ecosystem does not pay off (expect for Samsung)
According to certain estimates, Google makes about $6.50 through ads on Apple devices, compared with under $2 in Android. Google makes roughly the same amount of profit selling Android ads & apps in year that Apple makes selling iPhones a week. Google has regarded Android ecosystem more of an extension of the advertising. Currently it seems that it only benefits Samsung (and maybe to some extend users).
3. Mobile advertising ecosystem is currently broken.
People are not yet ready to make purchases with mobile. That is likely due to change in the future. Meanwhile, the mobile ads generate less revenue than traditional ads on average. Mobile has been thus far more about duplicating the web experience for Google, than regarding it as a center of the advertising innovations.
4. Consumers are even more unpredictable with mobile
Who would have predicted that texting will become popular? Or that tablets will become hits? Consumers are always fickle and surprising, but especially in mobile. Consumers do not really know (or at least articulate) what they want, but they still act quite fast to get it.
5. Google is not (yet) producing phones
Although Google bought Motorola, there has been a strict separation of church and state between Android and Motorola. Apple and Samsung have proven that the money in mobile lies in hardware. Microsoft has returned to hardware game as well. Facebook will probably enter the competition soon. Can Google stay away from the phone game?

I am sure that Google has certain tricks up on their sleeves regarding the mobile. Until those tricks are revealed, there will be more growing mobile pains ahead.

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