TABLETS, TABLETS, EVERYWHERE.

theyve got our attention. and a chunk of our paychecks. Beyond that shiny surface, theres some real possiBility.

featured story

optimizing for a new platform pg04 taBlet weB vs. taBlet app testing the ipads competitors pg09
near field communication pg12 / sound tagging pg16 / moBility snapshot pg18 platform overviews: ios, android, wp7 & BlackBerry os pg20

also in this issue

pg06

Q4
2011

at a glance
these tiny computers (or large phones) are dominating the landscape... and our attention.

When we set out to write this edition of AKQA Mobility, we didnt intend to focus so much on tablets. But at this moment in time its hard to find a space generating more excitement. As designers and developers of experiences and campaigns that run all over the world, its thrilling to work with a platform experience that is, at its core, imbued with playfulness and exploration. The past few months have marked the tablets entrance into its teenage years with quick (and at times awkward) growth. With a steady stream of challengers to the dominant iPad, weve yet to see if anyone has the right mix of software, hardware, and content to knock Apples darling off its perch. Now all eyes are on Amazons impending plunge as the Kindle giant looks to flex its content muscles in a way that could truly rival Cupertinos curated ecosystem. This new tablet battlefront escalated the war between iOS and Android. But with Apple now the number-one handset maker in the world, one might doubt

they care much about market penetration numbers. With RIM, and the new underdog Microsoft, soon entering the ring, the market only promises to become more interesting as second, third, and fourth-generation devices surface. In this issue we dive into the possibilities of the tablet experience, looking carefully at the possibilities of the web, apps, and how brands are (and should be) positioning themselves on each. In addition, we find out what some everyday iPad users think of the competition, and dig into how businesses are using tablets. We also shed some light on the ever-elusive realm of Near Field Communication and examine the surprising ways audio is being used in geofencing. Finally, well catch up with the big fouriOS, Android, BlackBerry, and Windows Phoneto see whats worth knowing and whats worth watching.

aKQa mobility is produced by a team of designers, developers, strategists, and account leads. With extensive mobile experience in the automotive, travel, and entertainment space, aKQa is a recognized industry leader in innovation and strategy, and a pioneer in bringing brands to life on mobile platforms. aKQa has developed award-winning mobile solutions for delta, gap, nike, target, Volkswagen, and the u.s. postal service.

THE CuRiouS CASE of THE TABLET ExpERiEnCE

a look at what taBlets can and should do.

its already hard to imagine the world before the ipad. the rate at which users are adopting the tablet as a platform is nothing short of staggering, making it easy to forget that were talking about a device thats relatively young.
And even though the tablet already feels like a staple of the digital ecosystem, many brands and companies are still grappling with the best way to put themselves out there on this new screen. At AKQA, were often asked about our tablet strategy. What should we do? Is another app really needed? Should it be the same as our mobile apps? Should we serve up our regular site or our mobile site? And is all this sufficient? Often the answers come from an instinctive, gut reactionan Ill-know-itwhen-I-see-it momentin part because the tablet is so hard to categorize. By definition, the only difference between an iPad and an iPhone, after all, is the size of its screen. In fact, one of the many early criticisms of the iPad (besides the nameremember that?) was that it was just a big iPod Touch. Yet less than two years later theres a common consensus that, as a device, it warrants a fundamentally different treatment and approach. Perhaps the best way to tackle some of the questions is to break down the tablet experience into its simplest forms of interaction: web sites and native (non web-based) apps. Each brings with it a very different set of baggage, habits, and expectations, and each is ripe with exciting possibilities. Lets take a look at both, starting with tablet web.

AKQA Mobility Q4: 2011

The Curious Case of the Tablet Experience

the taBlet weB

Just dont call it moBile

should a user visiting your site on an ipad be directed to your full site or to your mobile site?
Though a case could be made either way depending on the situation, generally speaking, tablets are not used the same way as a mobile device. Mobile sites are, and should be, designed for quick, easy consumption; accessible on a small screen and in scenarios where data rates are potentially at a premium. Tablets, on the other hand, have the screen real estate and, more often than not, the connection speed to take advantage of the traditional website. And, chances are, users arent running down the street in a hurry using their tablets, so theyre not in a speed crunchyou can take advantage of an interface and information layout closer to that of using a computer. So if a mobile site is not right for a tablet what should people find when they search for your brand on a tablet? Two potential options include a tabletcompatible site, and a tablet-optimized site. Lets review each, starting with the most basic. the taBlet-compatiBle site When the iPhone first launched, there was disagreement between Steve Jobs and Adobe over the inclusion of the Flash Player. On one side, Adobe claimed that in order to experience the full web, with all of its rich experiences, you need Flash. On the other side, Steve Jobs, in true fashion, claimed that Flash wasnt good enough for this new wave of technology and suggested that everyone should recreate their websites to support the open standards associated with HTML5. At first, Jobs refusal seemed like a loss for consumers. Surely they were missing out on a rich wealth of videos, not to mention countless games and websites in general. The iPhones lack of Flash support, however, was largely mitigated by the devices redirection to mobile sites (already written without use of the plug-in). But when the iPad took a seat at the full-web table, it became clear that reliance on plug-ins like Flash for mainstay information was no longer possible. This, along with the skyrocketing adoption of Firefox and WebKit browsers, took a burgeoning movement towards HTML5 and kicked it into high gear. Disappearing were the corporate home page Flash carousels, animated restaurant menus, and photo slideshows of the mid-2000s. While subsequent tablets and devices have touted Flash as a major feature, its clear that the interactive staples of old are gone. Slowly but surely, sites began converting functionality to more standards-friendly methods, bringing tablet compatibility with them.

taBlet users exhiBit high engagement on average, how many hours a day do you spend on your ipad? NOVEMBER 2010 MAY 2011
41.2% 38.2% 36.4% 36.3%

15.2% 11.3% 7.3% 8.4% 2.9% 2.8%

UNDER AN HOUR

1-2 HOURS

2-5 HOURS

5-8 HOURS

MORE THAN 8 HOURS

Source: Business Insider, How People Really Use the iPad: Our Exclusive Survey Results May 11, 2011.

AKQA Mobility Q4: 2011

The Curious Case of the Tablet Experience

Were now past the tipping point. Consumers, even those in the late majority, expect sites to support whatever device theyre on. This makes a tabletcompatible site the absolute minimum for any brand or company. Fortunately, tablet-compatible sites are extremely easy to achieve and come at almost no additional cost. Chances are, if youve updated your site anytime within the last two years, youre already set. There are minor tweaks that you can make to improve the overall experience (such as the initial scaling of your website and how much your users can zoom in or out), but in general your site should be compatible already. And in cases where a plug-in like Flash is more appropriate, an alternate experience for those on tablets is all you need. That said, Apple, Google, and others have created browsers built on modern foundations, meaning that in many cases people visiting your site on the Galaxy Tab will have more capabilities than someone visiting on their computer running Internet Explorer 8. It also means that the tablet browser is host to a slew of device-specific features not traditionally associated with the web browser: multi-touch, geolocation, accelerometer data, and more. So what about building a site that can take advantage of all these features? the taBlet-optimized site Check out Nike.com on an iPad and youll find an experience specifically tailored for your device: the layout is optimized for 1024 x 768, the quick menu of shoes is tactile and draggable, the big photography takes advantage of the rich, vibrant display. This is one example in a small but growing set of sites that are just scratching the surface of whats possible on the tablet web. In the past, if you wanted to have meaningful multi-touch interactions or advanced location-based data, youd have to develop a native application. This is no longer the case, as the list of features available only in native apps shrinks. Properly crafted, a tablet-optimized site can provide the same depth and richness that weve come to associate with native apps. So why arent more sites doing this? The answer is twofold. First, a tablet-optimized site abandons the main appeal of a standards-based siteuniversal computability. Creating an alternate version of your site for iPad isnt a big deal if thats a large part of your brand or consumer base. But as tablets diversify, interaction models differ, and hardware specs vary, accommodating for an increasingly fragmented market becomes more and more difficult. Its conceivable that, at a certain point, making a polished web app that works everywhere could become just as expensive as developing it natively. The second, and perhaps most important reason, is the fact that consumers simply dont expect to interact with the tablet web in an app-like way (yet). While Google has moved to combat this by redesigning its suite of apps, people still expect an experience similar to that of the desktop web. Nor do they think to use the web in offline situations, such as on an airplane, even with the advent of local storage in HTML5. So, for the moment, the tablet-optimized site should hardly be seen as a death knell for native apps. Instead, the tablet web lives in symbiosis with the app world, with each serving its own, unique purpose. Nike.com isnt meant to replace their rich suite of appsits meant to enhance it.

on taBlet, moBile weB and apps are used in concert app and weB usage Breakdown

APPS ONLY

16%

WEB ONLY

39%

45% APPS & WEB

Source: Forrester, Apps and Browsers will Coexist on Tablets March 23, 2011.

increased time spent on taBlet weB is reflective of superior Browsing time spent Breakdown By device

15% WEB

39% WEB

85% APPS

61% APPS

SMARTPHONE

TABLET

Source: Zokem Analytics, 360 Degree Study on Tablet April 2011.

AKQA Mobility Q4: 2011

The Curious Case of the Tablet Experience

the taBlet app

an excuse to experiment

its nearly inconceivable now that on January 9, 2007, apple introduced the original iphone with no support for third-party apps. whether they intended to enable that support once the platform had achieved success, or whether they simply seized upon a fervor stirred up by the jailbreaking community, the success of the app store has been utterly undeniable.
Not only did this new marketplace bring major success to both Apple and Google, but it made the barrier to entry into the smartphone market all the more difficult for would-be competitors. Microsoft, HP, and others would be simply unable to launch a product without an app store (and developers) in support. While it was easy to see why a brand would need a mobile app, the reason for creating a tablet app was far less clear. The primary driver behind mobile apps was the ability to complete quick, easy, focused tasks while on the go, and without having to use a site originally designed for a big screen. With the increased real estate of the iPad, there appeared to be no immediate need for an app, as your browser-supported site would still be easy to navigate. 1. same content, optimized experience Native tablet experiences will always be capable of providing a smoother, faster, and more robust interface than websites. The same is true on any platform, including desktops. The reason is simple: the necessary security layer of the browser means that sites will never have access to the same amount of computing resources as a native app. For YouTube, this native access was reason enough to make an app. Originally released on the iPhone to allow users to view videos without needing Flash, YouTube apps are a prime example of a brand recreating the functionality and look of its site in a native environment. The iPad app especially excels at this. While not markedly different from the site, the app runs more smoothly and with all of the flourishes that users expect from apps. This works because their brand is built on a function: to make watching videos easy. They need to get you to their content as fast as possible in the method that you prefer. Theres no reason for a dramatic remake of the sites interface as much of the behavior is well established and should therefore be consistent across platforms. 2. same content, different experience CNN had a very different challenge. They already had an expertly achieved tablet-compatible site that provided users with the same video and content theyd come to expect from desktop browsing. Aside from some potentially slicker animation, creating a native app that mirrors the website would bring little benefit.

if the browser is the public library, the tablet app is the cozy chair by the bookcase back home.
Regardless of these practicalities, consumers gravitated towards the native experience, downloading apps in droves and searching for richer content. They responded enthusiastically to a new, more intimate way of interfacing with information. If the browser was the public library, the tablet app became the cozy chair by the bookcase back home. It was clear that even if there wasnt an obvious reason for why a brand would need to create a tablet app, the amount of consumer attention the platform was receiving meant you might want to have one. This presented brands with a new question: What should a tablet app do?

AKQA Mobility Q4: 2011

The Curious Case of the Tablet Experience

Therefore, CNN decided to focus the app on a different kind of behavior. Rather than targeting news seekers, they went after news explorers. Taking advantage of the tablets flexibility as an entertainment device, CNN created an app where news articles are displayed in an open grid, playing up the role of photography. By rethinking how to present their content on this new screen, CNN provided a way for consumers to interact with the news, and the brand in an unexpected way.

ability to branch out from their core objective and focus on building the brand by providing entertaining, engaging, and intimate experiences. Nike.com sells shoes. The Nike suite of apps sells Nike. finding the right comBination for the JoB At no other point in digital marketing has there been a platform with so much possibility and flexibility. The tablet web has helped to introduce a new, standards-conscious era. The tablet app has become the new microsite, but with an opportunity for engagement and interaction that far exceeds that of its bygone predecessor. Ultimately the right tablet strategy depends on the brand in question. In some cases, eschewing the tablet app in favor of the tablet web makes sense. Facebook thought so, though they eventually caved to user demand and are in the midst of finishing their app as of this writing. For other brands, the best strategy may require a careful balance of features and functions, the right combination of web and app that is appropriate for who theyre trying to reach and how. Two years ago there was no such thing as the iPad. Its hard to predict how the market will mature and how consumer behaviors will settle. And its quite possible that the tablet web will win the day, especially as Google and Microsoft make inroads into Apples early dominance. In the meantime, its clear that consumers are expecting brands to be present in the tablet space in the most relevant way possible. And at this moment, that means playing well on the tablet web and delivering the most appropriate app experience.

nike.com sells shoes. the nike suite of apps sells nike.

3. different content, different experience In 2010 Nike released Nike Football+ Team Edition, an iPad app designed to help football coaches at all levels better organize and train their teams. It included drills, challenges, and insights from some of the best-known names in the sport. Even amateur team managers could track individual player profiles, fitness levels, and performance history over a season. Nowhere in the app did Nike provide an add to cart button. Thats what the website is for. It is precisely this freedom from mainstay functionality that makes the tablet such an exciting opportunity. In some ways, this type of app is reminiscent of a traditional microsite. Only now, combined with a new level of technology, portability, and intimacy, these apps hold the promise and possibility of daily relevance. With the tablet web serving as the ever-present foundation, brands have the

taBlet sales have grown expoentially since release first 3 Quarters cumulative unit shipments, ipod vs. iphone vs. ipad
GLOBAL UNIT SHIPMENTS (000) GLOBAL UNIT SHIPMENTS (000) IPAD IPHONE IPOD IPAD IPHONE IPOD

14K 12K 10K 8K 6K 4K 2K 0K 0

14K 12K 10K 8K 6K 4K 2K 0K Q1 0 Q2 Q1 Q3

taBlet sales are predicted to overtake desktops within the next 4 years

pc sales dropped 10% in Q1 of 2011the largest drop in 10 years

Q2

Q3

Source: KPCB, Top Mobile Internet Trends, February 2011

AKQA Mobility Q4: 2011

The Curious Case of the Tablet Experience

taBlets: marketers latest tool

the last six months have been a constant bombardment of tablet stats. whether its the amazing growth of the ipad or the estimated penetration of the year-old devices in the near future, you cant escape the impressive figures.
Although most of the buzz seems to surround consumers and their tablets, (having the latest apps, shifting device usage, the tablets status as the most coveted holiday toy for Americas six-year-olds you know, the biggies), some of the latest staggering stats cut through the clutter of consumer tablet lust as we witness the rise of the tablet within enterprise. The numbers are hard to ignore: Currently 80 percent of Fortune 500 companies are testing uses for the iPad, and its estimated that one in four of the iPads sold in 2011 will be purchased by businesses. And the evidence of these efforts spans the industry spectrum. From travel to retail to automotive, brands are discovering the benefits of the tablets mobility, size, simplicity, and interface, and creating a more engaging and effective experience for both the customer and the employee.

Iberia Airlines equipped their customer service agents with iPads in February of this year, connecting them to real-time information and updates via 30 apps. Initially an aid to the concierge at any Intercontinental Hotel, the brand is exploring new assistance stations throughout the hotels, where the iPads forward facing camera enables a face-to-face connection, for easy, efficient help in any corner of the hotel.

In an effort to streamline the typical three-hour car buying process, Mercedes-Benz created the MB Advantage app, allowing dealers to start collecting the necessary customer information earlier in the buying process. To enhance and bring an upscale feel to their bridal services, JC Penney armed fine jewelry sales reps with iPads to enable side-by-side comparisons of all inventory, and the pricing implications of different rings.

AKQA Mobility Q4: 2011

Trying On a New Tablet

TRYing on A nEW TABLET

we asked three of the offices most avid ipad users to give up their ipad for a week and try out a different taBlet. it wasnt all pretty.

its hard not to use ipad and tablet synonymously. certainly google, rim, amazon, samsung, and others would prefer a broader definition of the phrase. yet, for the moment, theres really only one game in town.
We approached three dedicated iPad users in our Washington, DC, office and asked them each to try out a different tablet for a week. We had them, wherever possible, use it for office emails and tasks, gave them a budget to download apps, and generally tried to re-create the experience of owning and using that device. Roman Ptakowski (Account Supervisor) drew the now defunct HP TouchPad with Web OS, Sarah Lockwood (Interaction Designer) got the Samsung Galaxy Tab 10.1 running Android, and Matt Herzog (Creative Development Architect and Lead iOS Developer) took on the challenge of the BlackBerry PlayBook. Heres what they had to say.

AKQA Mobility Q4: 2011

Trying On a New Tablet

what did you like most aBout your device? roman, touchpad: Its small, but honestly, my favorite feature was staying in the store when downloading something. It really frustrates me when the App Store for iPad shoots me out to watch it download. I also really liked that the keyboard had a shift key so you could see all the buttons you need. sarah, galaxy taB: I liked the notification management, as well as being able to use the physical back button to navigate through apps. The customization is nice, letting savvy users create the most efficient workspace for their needs and leveraging on-screen widgets for apps, like Facebook, to reduce search and loading times. matt, playBook: The overall form factor is nice. Its considerably smaller than the iPad, but fits in your hands more firmly. The multitasking gestures and navigation were very easy to use and trump what the iPad currently offers.

sarah, galaxy taB: The apps. Just because the Android tablet dimensions allow an app designed for a phone to fit on a larger screen without pixilation doesnt mean it works as a tablet app. This results in tiny icons, poor use of space, and the user experience suffers. If its just a blown-up phone app, whats the point of having a tablet? matt, playBook: Limited apps. And theres no built-in email client for nonBlackBerry users, which is definitely a burden. Hopping onto the web for Gmail was also pretty awful. Luckily for iPad users, Google has created an attractive and optimized site. However, navigation to the same site on the PlayBook yields a text-only site that makes email browsing less fun than it already is. The same is true for Twitter.

did you use flash at all on your device? roman, touchpad: I did use Flash at some points, but pretty rarely. I think Im trained from my iPad to try and avoid Flash. It was nice to be able to use it when it showed up, but it also enables annoying banners. On the whole, Im happier without Flash. sarah, galaxy taB: Not that I know of. matt, playBook: Involuntarily. It was nice to see some sweet banner ads!

how was Browsing the internet? roman, touchpad: Not terrible, not great. I often felt it didnt get my touch right, so it would grab links I didnt intend to hit. Other than that, the screen is legible and bright so browsing was fine. sarah, galaxy taB: I liked being able to instantly access tabs on the browser. It felt like Google Chrome, which is my browser of choice. matt, playBook: Browsing the Internet was on par with similar platforms. What Id expect: Fast and responsive.

what lesson, if any, could the ipad learn from your device? roman, touchpad: Let me stay in the store when Im downloading! Flicking things to close them was pretty satisfying, though not entirely intuitive. sarah, galaxy taB: I was fond of customizing my desktop for my own efficiency and addressing my notifications when I was good and readyrather than being bombarded immediately and forced to either view or lose the notification forever via iPad (Yay iOS 5!). matt, playBook: Swiping between apps is pretty cool. The touch-sensitive bezel takes a little getting used to. But once you get the hang of it, moving between apps and the home screen is pretty slick. Being able to see the current state of open apps from the home screen is really helpful, too.

what was your favorite app (downloaded or Bundled) and why? roman, touchpad: Angry Birds. I downloaded others but ended up deleting them, as I had no need for them. It seems like a lot of the apps are ported over from Android or iOS, so they dont work all that well. Angry Birds on the big screen was fun (I dont have it for my iPad). sarah, galaxy taB: Google+ integration! matt, playBook: In general, the native apps are pretty polished. Calculator, Weather, and Photos. I didnt get the same sense while browsing BlackBerry App World. The title of favorite app goes to Calculator!

would you consider using this as your personal device? roman, touchpad: No, and Id tell others no way. I havent spent much time with any Android devices, but from my experience, iPad far outclasses all other tablets. sarah, galaxy taB: Nope. When the brand new device experienced technical difficulties while mulitasking, the glitz and glamour faded. If Im going to overlook the fact that the Android marketplace for tablets is terrible, Id have to be blown away by this device, and I wasnt. matt, playBook: No.

if its just a blown-up phone app, whats the point of having a tablet?
- sarah lockwood, galaxy taB

what did you like least aBout your device? roman, touchpad: On the whole (and one of the things I liked least about the tablet) the quality of the app store was just abysmal. I know its a new tablet, but wow, the apps were atrocious. I found it hard to find things I wanted to download. There were definitely some UI issues as well, like the keyboard covering up the input fields so I had no clue what I was typing. And the tablets design itself was pretty bad. The plastic made it feel like a Fisher-Price tablet that smudges even more than the iPad. pick three adJectives to descriBe your device or your experience with it. roman, touchpad: Clunky, frustrating, cheap knockoff. sarah, galaxy taB: Sexy, glitchy, underwhelming. matt, playBook: Fun, yet disappointing. Is two OK?

10

AKQA Mobility Q4: 2011

Trying On a New Tablet

sizing up the competition

heres how the tablets we tested stack up against the ipad.
taBlet Basic specs the good the Bad

os: ios 4.3 screen size: 9.7 resolution: 1024 x 768 thickness: 8.8mm weight: 601g

gold standard of the industry. app liBrary to die for.

mostly issues addressed in ios5, such as notifications.

apple ipad2

while it still holds up well for the moment, another refresh in 2011 will ensure it stays ahead of the pack.

os: android 3.1 screen size: 10.1 resolution: 1280 x 800 thickness: 8.6mm weight: 595g

slim and sexy. construction feels premium. honeycomB is the most coherent version of android yet.

poor selection of apps. wider screen can make it awkward to hold and use in landscape.

samsung galaxy taB 10.1

os: weBos 3.0

r.i.p. hp touchpad

screen size: 9.7 resolution: 1024 x 768 thickness: 13.7mm weight: 740g

fresh take on the taBlet experience. native apps feel snappy and are well designed. good to see someone else cares how things look.

shockingly poor use of plastic means the touchpad feels like a giant (and heavy) iphone 3g. os and third-party apps still have a ways to go.

os: BB taBlet os screen size: 7 resolution: 1024x600 thickness: 10mm weight: 425g

BlackBerry playBook

wonderful to hold. capacitive Bezel allows for nice, suBtle interactions. Built-in apps (when they have them) feel sleek.

navigation controls are tough to learn if you missed the tutorial screens. BBs app world is a pit of despair.

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AKQA Mobility Q4: 2011

Near Field Communication

nEAR fiELd CommuniCATion

a Quick take on the futures Biggest Buzzword.

in the future, you wont carry a wallet.

You wont need cash. Or a debit card. You wont keep a bus pass, CVS card, USB stick, airline ticket, or supermarket coupon. Youll never be handed a paper receipt. Or movie ticket. You wont need keys to your car, your office, or even your home. All youll need is your mobile phone. This is the promise of Near Field Communication (NFC). Or at least these are the possibilities. As a concept, NFC occupies the space that biometrics once held in our product imaginations, a vague yet exciting promise of ease, access, and, for marketers, consumer openness. As long as you dont lose your phone, that is.

Photo Credit: Google

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AKQA Mobility Q4: 2011

Near Field Communication

So how far beyond the horizon is this new capability? According to Google, its closer than we think. But lets take a step back and figure out what NFC is in the first place. first, a few acronyms Near Field Communication, or NFC, is a subset of an older, more entrenched technology, RFID (Radio Frequency Identification), with a heritage reaching as far back as the 1940s and a buzzword of its own.

This showcases one of the key features of RFID: The readers can detect tags outside of the line-of-sightand in bulk. Unlike the cashier at the grocery store, the reader doesnt need to scan the items one at a time, but can instead process hundreds of tags simultaneously. Its easy to imagine why, in 2005, Walmart mandated that its top suppliers start using RFID labels. Suddenly, counting and tracking inventory was as easy as walking right past it. Despite RFIDs enormous success in industry, it has made its way into relatively few consumer devices and even fewer minds. Thats because, instead of counting a massive number of shipment pallets, the everyday consumer is interested in the smaller, one-to-one exchanges of daily life: Paying for the bus, buying groceries, trading music. And they want to do it on devices they already own and carry with them, their smartphones. up close and personal The obvious thing that sets NFC apart from its lineage is the near part as data exchange only happens over very short distancesless than four inches. Couple this with an additional layer of shielding to keep out prying signals and youve got a technology ideal for payments, transferring key information, and other secure transactions. Close-range transactions have been happening for years. Go into any 7-11 and youll see a MasterCard PayPass contactless payment system. Travel on the Washington, DC, metro and youll see locals tapping SmarTrip cards to get on the train. But do these things count as NFC? Because of the very subtle technical differences between NFC and RFID, it can be hard to differentiate the two. What really sets NFC apart from RFID is the presence of two things: software and a power source. And what better place to find both than on a smartphone?

rfid has made its way into relatively few consumer devices. thats because the everyday consumer is interested in the smaller exchange of daily life.
Ever passed through a tollbooth with an E-Z Pass or FasTrak? Used a key fob to get into your office? Then youve interacted with RFID. The part you used is a small chip known as a tag. Its responsible for storing unique identifying information, such as an account number. These tags can be embedded in everything from credit cards to posters to livestock. Best of all, theyre cheap. The other part of the RFID equation is the reader, a powered device that detects when an RFID tag comes into range and extracts the identifying information. Thats the part in the tollbooth. This technology has a wide range of uses. In 2010 an armed man made off with $1.5 million in chips from the Bellagio in Las Vegas, Nev. Unfortunately for him, each chip had been embedded with an RFID tag. So, unlike a 1993 crime in which a pair of robbers successfully made off with $2.95 million in chips, the casino was able to easily identify which chips were stolen and invalidate them immediately, rendering a bold heist entirely worthless.

Photo Credit: Intuit

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AKQA Mobility Q4: 2011

Near Field Communication

Through power and software, NFC-enabled phones are able to mimic a tag, a reader, or both. That means they can scan a movie poster, be scanned by a credit card reader, or trade information with another NFC phone. Add in a persistent connection to the Internet and you have a device capable of instantly downloading the latest movie trailer, knowing how much money you have in your account without visiting a site, and sending that latest Ke$ha MP3 to your buddy with only a tap.

The premise is simple. Launch the Google Wallet application, choose your MasterCard account (credit or debit, depending on your bank) or your Google Prepaid Card and youll be able to pay at all of the locations above just by tapping your phone to the credit card reader. This works seamlessly, as Google Wallet lets your device mimic the same kind of tag already found in the physical PayPass program. Availability and other details on Google Wallet remain scarce, though wed expect a public release before the end of the year. For the moment, youll need a Nexus S 4G from Sprint to run it, but look for that to change as manufacturers begin building NFC hardware into their new products. its (not) all aBout the BenJamins While mobile payment is perhaps the most touted aspect of NFC, it promises to change our daily habits in many other ways. Much of what we carry around subway passes, loyalty cards, key fobscould be transitioned to our phones. Anything with a barcode can be replaced. Some other compelling interactions starting to come to light today. For example, rather than simply exchanging info between phones via peer-to-peer, NFC could be used to initiate Bluetooth or WiFi connections. The often painful process of pairing Bluetooth with a car can be taken care of with a simple NFC tap. One of the most popular Android music players, DoubleTwist, has already introduced this type of interaction for sharing music called DoubleTap. By bringing two phones close together, the app initiates a WiFi connection between the two devices and begins transferring a chosen song from one to the other.

much of what we carry aroundsubway passes, loyalty cards, key fobscould be transitioned to our phones.
While NFC adoption is still in its early stages, its likely that most of these interactions will require specific apps to be running on an NFC-enabled device. NFC isnt something that will happen without an opt-in (though the opting might be as simple as launching an app). In fact, on Samsungs Nexus S, one of the first Android devices with NFC, the feature is disabled while the phone is locked. Instead, youll likely interact with NFC though channel-specific apps like Google Wallet. google Bets... with your money As mentioned above, contactless payment has been around for years. The standout example is MasterCards PayPass. The chip, embedded in credit cards, has been around since the mid-2000s and readers can be found everywhere from CVS to McDonalds to the Foot Locker around the corner. Its precisely this infrastructure that Google has latched onto with its new Google Wallet product. In fact, the PayPass brand is at the center of the wallet itself.

Photo Credit: Google

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AKQA Mobility Q4: 2011

Near Field Communication

And the uses keep coming. In July, PayPal threw its hat into the NFC ring, opening the possibility that your friend might be able to repay you that $20 he owes you through a simple bump. Location-based services like foursquare are already testing the waters in an effort to make sure that the guy down the street cant become mayor of everything simply by walking past. how close are we? Three months ago it would have been difficult to predict the adoption rate of NFC. After all, biometrics held many of the same promises that never materialized. Weve long maintained that two things would be necessary for the widespread adoption of NFC: 1) mass hardware implementation and 2) public education. Thanks to Google, these two prerequisites are underway. Its easy to imagine how the inclusion of NFC in something like an iPhone 5 commercial would launch this technology to the forefront. With nearly limitless possibilities and the promise of a shrinking digital/ physical barrier, NFC is one of the most exciting prospects to come along since the phone and the Discman became one device. While a world without a wallet or keys may still be a ways off, we expect it to be quite a bit closer within the next two years.

the nitty gritty

passive mode

nfc-enaBled phones are capaBle of three different modes of interaction:

Passive mode essentially turns your phone into a very expensive tag, much like those associated with RFID, that can be picked up by readers. Just tap your phone to the reader and your appropriate identifying information is sent off. active mode Active mode enables your phone to become a reader itself. Tap your phone to a product containing a tag in the grocery store to find out the price, or to a used car at the dealership to bring up its full owner history. peer-to-peer mode The final mode, peer-to-peer, is by far the most interesting and exciting. As the name implies, this allows two devices to communicate with each other, passing data back and forth in a way thats not unlike WiFi or Bluetooth (albeit significantly slower than either).

maJority of devices will Be eQuipped with nfc hardware in the near future phones shipped with integrated nfc chipsets NUMBER OF UNITS SOLD (000)

600K

450K

300K

150K

0K 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: IHS iSuppli, May 2011.

15

AKQA Mobility Q4: 2011

Sound Tagging

Sound TAgging
the latest extension of location-Based services comes in a surprising package.

location-based services, or lBs, have been a part of our daily lives for some time now. foursquare, gowalla, facebook, google search, google maps, and a whole host of other applications and services regularly employ users geographical location to lead to the digital holy grail: relevance.
Geo-fencing is one of the oft-touted uses of LBS. The idea is simple: An action is triggered when a user enters or leaves a virtual perimeter. For example, you might get a reminder to pick up your dry cleaning when you leave your office parking lot. Or you might be reminded to check into your flight when you get to the airport. You might even receive a discount when youre in your favorite clothing store by launching their app. These types of opt-in geo-fences are easy to create and implement. They can be arbitrarily defined and executed as part of an apps background processes. Precise GPS location, however, takes time and is battery-costly to maintain. Many devices will turn to cellular triangulation while running location services in the background in order to save power. But that comes at the cost of precision. Even while running in the foreground, though, an app may not be able to guarantee accuracy down to a building level. This inaccuracy means geo-fencing and other LBS technologies can often be cheated, like foursquare check-ins from two blocks away. So what do you do in cases where thats unacceptable? How can you easily ensure a user is in a specific location? What about places where GPS may not available?

16

AKQA Mobility Q4: 2011

Sound Tagging

enter the latest lBs darling: sound tagging Many people are already familiar with sound tagging, but in a very different form. The popular app Shazam, used to identify music playing in the wild, works by fingerprinting a song and then comparing that digital fingerprint against a database of pre-processed audio.

amBient sound as the digital foreground

Sound identification techniques are only just beginning to be explored. Already, brands such as ABC, The Weather Channel, and the CW are exploring how sound in television programming can be used to trigger actions within apps to bring up contextual information and promotions timed directly to the content being viewed.

ios5 reminders: apples newest bundled app lets users set alarms based on entering or exiting custom-defined geo-fences.
This same technique can be used to determine when a user is in a specific place. In the case of ShopKick, a kind of foursquare-meets-Groupon service, hidden speakers are installed in partner stores. These devices emit a unique sound at a frequency above the range of human hearing that can be picked up by a mobile devices microphone. Just like Shazam, the sound is then processed, identified, and used to confirm that the apps user is indeed inside the store and not across the street (or even just outside the door). This level of accuracy makes sound tagging a compelling addition to traditional LBS. By leveraging sound, locations can be identified and cordoned off in natural and intuitive ways, helping to bridge the physical and digital worlds in ways were only beginning to imagine.

taBlets, smartphones, and e-readers are all Being used in concert with other activities, including watching tv and shopping. device usage across platform

70% WATCHING TELEVISION 70% WATCHING TELEVISION 57% LYING IN BED 57% LYING IN BED 44% WITH FRIENDS/FAMILY 44% WITH FRIENDS/FAMILY 42% WAITING FOR SOMETHING

25% IN THE BATHROOM 25% IN THE BATHROOM 24% IN A MEETING/CLASS

68% WATCHING TELEVISION 68% WATCHING TELEVISION 51% LYING IN BED

28% IN THE BATHROOM 28% IN THE BATHROOM 23% IN A MEETING/CLASS

35% WATCHING TELEVISION 35% WATCHING TELEVISION 61% LYING IN BED

17% IN THE BATHROOM 17% IN THE BATHROOM 10% IN A MEETING/CLASS

taBlets 24% IN A MEETING/CLASS

21% SHOPPING/ RUNNING ERRANDS 21% SHOPPING/ RUNNING ERRANDS 20% DURING COMMUTE

23% 51% LYING smartphones IN A MEETING/CLASS IN BED 58% WITH FRIENDS/FAMILY 58% WITH FRIENDS/FAMILY 59% WAITING FOR SOMETHING 59% SHOPPING/ RUNNING ERRANDS 59% SHOPPING/ RUNNING ERRANDS 47% DURING COMMUTE

61% LYING e-readers 10% IN A MEETING/CLASS IN BED 17% WITH FRIENDS/FAMILY 17% WITH FRIENDS/FAMILY 32% WAITING FOR SOMETHING 9% SHOPPING/ RUNNING ERRANDS 9% SHOPPING/ RUNNING ERRANDS 11% DURING COMMUTE

42% WAITING FOR TABLETS 20% DURING SOMETHING COMMUTE TABLETS

59% WAITING FOR 47% SMARTPHONES DURING SOMETHING COMMUTE

Source: Nielsen, Q1 Mobile Connected Devices Report, May 2011.

32% WAITING FOR 11% E-READERS DURING SOMETHING COMMUTE E-READERS

SMARTPHONES

17

AKQA Mobility Q4: 2011

Mobility Snapshot

with the moBility landscape shifting so rapidly, this Quick look at the latest stats can Be a great way to keep pace with growth As we look ahead to Q4 2011, we see fragmentation as a continuing issue in the mobile space, though it will be some time before it significantly affects the tablet realm. Overall, smartphone penetration and usage are rising across every activity, as are the budgets, revenues, and effectiveness of mobile advertising. Well be tracking these last few months of the year with great interest, so stay tuned to this space for more on whats in store for 2012.

moBility snapshot

android extends its market share lead even as apple continues to grow os market share taBlets are already making a huge impact as of may 2011, 5% of consumers own a taBlet ipad holds 82% of the us market and over 95% of the world market non-ipad us taBlet market share samsung galaxy 4% dell streak 3% motorola xoom 2% other 9%
Source: Nielsen, Q1 Mobile Connected Devices Report, May 2011.

JANUARY APRIL

40%
36.4%

30%
31%

20% 10%

24.7%

26%

30.4% 25.7%

8%

6.7%

3.2%

0%

2.6%

GOOGLE

APPLE

RIM

MICROSOFT

PALM

Source: comScore MobiLens, Monile Marketshare, 3 mo. Average Apr 2011 vs 3 mo. Average Jan 2011.

AUG - OCT 2010 FEB - APR 2011

every moBile activity is experiencing an upward trend moBile phone usage

70% 52.5% 35% 17.5% 0%

67.1% 68.8%

35.3%

39.1% 33.4%

37.8% 23.5% 37.8% 22.6% 26.2% 15% 18%

TEXTING

WEB

APPS

SOCIAL

GAMES

MUSIC

Source: comScore MobiLens, Mobile Content Usage 3 mo. Average Apr 2011 vs. 3 mo Average Oct 2010.

29%
/

increase in average time spent on mobile devices each day

Source: eMarketer

44%

u.s. smartphone owners who have used scanner apps while shopping
Source: Chadwick Martin Bailey

18

AKQA Mobility Q4: 2011

Mobility Snapshot

smartphone penetration is growing rapidly smartphone penetration andriod 38% ios apple iphone 27% rim BlackBerry 21% windows moBile 9% symBian 2% hp weBos 2% palm os 1% windows phone 7 1% other 1% 34%
73.3 93.4 84.4

us smartphone users 2009 - 2015 ( millions and percentage of population )

40%
101.5 109.5

28%
40.4

60.2

22%

16%

38% SMARTPHONES
FEATURE PHONE

10% 2009 2010 2011 2012 2013 2014 2015

Source: eMarketer

62%

as of June 2011, 38% of moBile consumers own a smartphone

55% of new purchases are smartphones, up 21% from 2010
Source: Nielsen In US, Smartphones Now Majority of New Cellphone Purchases June 2011

moBile marketing creates more leads than online moBile advertising effectiveness

82% of survey respondents recall noticing a moBile advertisement.

1/3 of whom recalled moBile search ads, while 2/3 recalled display ads.
Source: Google Study Mobile Ads Driving Purchase Intent April 28, 2011.

percentage of respondents who perform a moBile search after an ad exposure By channel

TOTAL RESPONDENTS TRADITIONAL MOBILE 27% 18% 71% 68%

while moBile generates high performance overall, especially as compared to all other digital and traditional media, ipad rich media advertising generates engagement rates 15 percent higher than smartphones, said the medialets Benchmark report for the first Quarter.
Source: Medialets, Ad Report, June 7, 2011.

ONLINE

Source: Google Study Mobile Ads Driving Purchase Intent April 28, 2011.

19

AKQA Mobility Q4: 2011

Eye On Case Studies

apple finally makes it possiBle to set up an iphone without having to connect to a computer

eye on: ios

The first of several exciting announcements from Apple this year was iCloud, which furthers an already strong ecosystem by connecting an expanding number of devices. Described as a hard drive in the sky, iCloud provides users with access to their music, photos, and more across all iOS devices. No management or syncing required, just seamless access for a growing number of consumers who own multiple Apple devices. The impending release of iOS5 looks to address many of the current criticisms of the platforms, particularly by updating a now-antiquated and clunky notification system. Apple has also finally enabled the ability to set up a device without having to connect to a computer. Combined with the power of iCloud, this finally means that people can go iPad without the need for a separate computer.

ipad hd

while it seems almost inconceivable that apple would release a tablet so soon after the ipad 2, rumors of a retina ipad could mean that apple has found another way to downplay the e ink resolution advantage of the kindle.
Apple has also upped the value of AirPlay. Whether streaming your iPhones music through your home speakers or mirroring your iPad through your TV wirelessly, Apple is bringing down the barriers that once limited each device. In fact, EA Sports recently announced that the next version of FIFA Soccer for the iPad will allow users to play the game on their TVs using iPhones or iPod Touches as controllers. Of course, no summary could be complete without rumors of the iPhone 5. The new device is rumored to be faster (of course), thinner (surprise), and will potentially boast a larger screen. 4G and NFC seem unlikely additions at this point, but years of watching Apple has taught us never to second guess the one last thing.

12,000

rumored number of terabytes in apples new north carolina server farm

Source: CNNMoney, April 7, 2011.

ios5s secret weapon: imessage

Its BlackBerry Messenger on steroids. Circumventing text message fees and communicating seamlessly across devices means theres another great reason to get your friends to switch, too.

20

AKQA Mobility Q4: 2011

Eye On Case Studies

ThE cAsE AgAInsT fRAgmEnTATIOn Is fInAlly bEIng mADE

EyE On: AnDROID

500,000

IcE cREAm sAnDwIch: A fEw hIghlIghTs

Unified platform for tablets and phones Faster time-to-market USB support Built-in face tracking Host of new APIs Open source (unlike Honeycomb) Available before the end of 2011

number of new Android devices being activated daily

Source: Andy Rubin, Chief of Google Android, June 28, 2011.

This past quarter has brought big developments for Google. First, they took on mobile payments with Google Wallet and then decided to pick a fight with the Facebook behemoth by launching the initially successful Google+. Add in a newfound appreciation of design (finally!) and Google has managed to surprise even its most ardent detractors. A great deal of hype is also surrounding Ice Cream Sandwich, version 4 of the Android operating system which promises to combat one of the OSs biggest criticism: fragmentation. Google has stated that Ice Cream Sandwich will merge their phone (Gingerbread) and tablet (Honeycomb) operating systems into one single solution and that they will also look to reduce the delay in getting new updates to all users. On top of their innovation news, Google has finally thrown its hat into the hardware game with the $12.5 billion purchase of Motorolas mobile arm.

$12.5 bIllIOn
Source: Google, August 15, 2011.

The amount of money google paid for motorola mobility

Though it remains to be seen how the search giant integrates its newfound ability to control the mobile product end to end, it will clearly put competitors, and partners, on alert. Some will say these developments, along with the devices ability to support the multitasking or Flash, are the reason for Androids sucess. Others would venture to guess that their pricing and universal availability is more likely the cause of its dramatic market share increase. One thing is certain, though: Android sales are skyrocketing.

21

AKQA Mobility Q4: 2011

Eye On Case Studies

the company and an anonymous employee make the wrong kind of waves

eye on: BlackBerry

There is one word that describes Research In Motions (RIM) BlackBerry: turbulent. Once considered the godfather of smartphones, the brand has been in decline as of late, with shareholders losing over 80 percent in the last three years. Internally, BlackBerry seems to be battling itself, announcing layoffs and suffering negative publicity from several open letters to its executives. In an attempt to counteract their slide, BlackBerry has made efforts to play in a more cutting-edge consumer space with the launch of their tablet, the BlackBerry Playbook. Unfortunately the companys first tablet proved commercially and critically disappointing, and the mystifying decision to exclude native email and calendaring didnt help. The device has even earned a significantly higher consumer return rate than the not-so-popular Motorola Xoom, which had its own very public fall from predicted grace earlier this year. Though bruised, BlackBerry isnt dead yet. For now, BlackBerry can still play the strong government relationship card, as evidenced by the recent announcement of the Playbook as the first tablet approved for U.S. government use. BlackBerry is also expanding tablet sales into 16 new countries, rumored to be competing in new segments with the launch of a potential Apple TV competitor in the fall, and jumping on the NFC wagon with their latest BlackBerry Bold. Will these relationships and expansions resurrect BlackBerry? With all the rapid internal changes, continual rumors, and inevitable counter-rumors, its impossible to tell. But it should keep things interesting.

excerpt from a June open letter to rims execs: 25 million iPad users dont care that it doesnt have Flash or true multitasking, so why make that a focus in our campaigns? Ill answer that for you: Its because thats all that differentiates our products and its lazy marketing. Ive never seen someone buy product B because it has something product A doesnt have. People buy product B because they want and lust after product B.

rim responds to Junes open letter: It is obviously difficult to address anonymous commentary and it is particularly difficult to believe that a high-level employee in good standing with the company would choose to anonymously publish a letter on the web rather than engage their fellow executives in a constructive manner, but regardless of whether the letter is real, fake, exaggerated, or written with ulterior motivations, it is fair to say that the senior management team at RIM is nonetheless fully aware of and aggressively addressing both the companys challenges and its opportunities.

-4%

rims BlackBerry was the big loser, as its piece of the smartphone market dropped from 25.7% to 21.7% in just three months
Source: ComScore MobiLens, 3-month average, Aug 2011.

22

AKQA Mobility Q4: 2011

Eye On Case Studies

a promising platform has Just a few more months of waiting patiently

eye on: windows phone

Since Microsoft announced it had struck a deal with Finnish giant Nokia back in February to adopt Windows Phone as its operating system of choice, there has been little movement for the platform. With penetration still in the single digits, the success many predicted early on has yet to materialize. But that doesnt mean Microsoft is throwing in the towel. One might sense that the software titan and its partners are lying in wait, preparing to unleash a flurry of devices to correspond with Mango, its first major update to its Windows Phone operating system.

Were inclined to agree. We fully expect Windows Phone to make major inroads over the next six months, as the operating system matures and becomes accessible to more and more people. Its definitely a platform to watch.

worldwide smartphone operating system 2011 and 2015 market share and 2011-2015 compound annual growth rate

20.3%

idc wordwides projection for window phone 7 market share in 2015

With flat, graphic live tiles and full-screen imagery, the operating systems radical departure from its past has clearly energized Microsoft and its influence can be felt throughout the company, informing everything from Windows 8 to future Xbox interfaces. And consumers are beginning to react. Mike Krahulik, better known as Gabe from Penny Arcade, sums up this positive impact best: I know how ridiculous it sounds to say that I switched to a Microsoft device because I prefer the UI design and the way it feels to use the device, but its true. Im not sure when MS became the scrappy underdog hungry to shake things up with a radical new idea, but here it is.

operating system android BlackBerry os symBian ios windows phone 7/moBile others total

2011 38.9% 14.2% 20.6% 18.2% 3.8% 4.3% 100.0%

2015 43.8% 13.4% 0.1% 16.9% 20.3% 5.5% 100.0%

unit cagr 23.7% 18.3% -68.0% 17.9% 82.3% 27.6% 20.1%

Source: IDC Worldwide Quarterly Mobile Phone Tracker, June 9, 2011.

microsoft Boasts that mango has over 500 new features. here are a few of our favorites:
Multitasking IE9 with HTML5 support OS-level Twitter integration Multiple live tiles per app Bing Vision Kinect Integration

23

AKQA Mobility Q4: 2011

THe PosTscriPT
Mobile usage MarkeTsHare

DIVIDED WE CALL AND TEXT, AND EMAIL, AND SURF...

ANDROID IOS BLACKBERRY OS NEUTRAL

Source: Jumptap, MobileSTAT Report, May 2011 / Market Research Corp .

75.7% of THe u.s. PoPulaTioN uses a Mobile PHoNe iN 2011.

86.5% of TeeNs will owN a Mobile PHoNe iN 2015.
Source: eMarketer.

1.8 billioN
Mobile phone subscriptions in china 2015
Source: eMarketer

99 MillioN
Mobile phone subscriptions in the u.k. in 2015
Source: eMarketer

24

AKQA Mobility Q4: 2011

moBile operating system market share

international

usa

uk

china

Brazil

russia

germany

apple ios BlackBerry os android other

35% 28% 27% 11%

apple ios BlackBerry os android other

42% 36% 12% 10%

nokia apple ios android other

59% 11% 3% 27%

nokia samsung sony ericsson other

47% 21% 8% 24%

nokia apple ios sony ericsson other

47% 12% 12% 30%

apple android nokia other

59% 21% 8% 12%

Source: iCrossing, Mobile Operating System Market Share Version 2.0, Feb 2011 / Source: Market Research Corp / Source: Telecompaper

81.3 million taBlets proJected to Be sold worldwide in 2012.

thats up from 15.7 million in 2010.
Source: eMarketer.

1.8 Billion
mobile phone subscriptions in china 2015
Source: eMarketer.

99 million
mobile phone subscriptions in the u.k. in 2015
Source: eMarketer.

25

the future inspires us. we work to inspire.