Consumer Pulse: Smartphones. So Smart, It’s A No-Brainer.

Smartphones are increasingly becoming the “third screen” in consumers’ lives. Driven by the benefits of enhanced utility and versatility, smartphone penetration will increase to about 20% of the mobile phone market within the next few years. Apple’s iPhone has initially driven smartphone growth – other brands will continue to accelerate the adoption of smartphones, including RIM’s Blackberry, Nokia, the Palm (with “Pre”) and new handsets powered by Google’s Android operating system.

What makes smartphones so smart?

For consumers, smartphones translate into a powerful, Web-on-the go means of connecting – enhanced by GPS and add-ons – and wrapped up in a portable, rather cool-looking device. They deliver an easy, fast, relevant and personal user experience that makes the old cell phones look, quite simply, old-fashioned. Leading brands are already embracing the potential of smartphones – eMarketer forecasts that mobile advertising will grow from $648 million in 2008 to $3.3 billion in 2013.

Smartphones are not just for early adopters

While their popularity was jump-started by techies, hipsters and the corporate elite, smartphones are now a natural fit for texty Gen Yers, a boon for busy moms and increasingly, a requisite for road warriors – thus triggering speculation that smartphones may replace laptops in the workplace one day. In the future, the democratization of smartphones will likely be accelerated by a shift to an ad-funded business model, making smartphone technology accessible to the mainstream.

The growing app-licability of smartphones

The smartphone access point for many brands has been through downloadable applications – or “apps.” The best apps offer functionality and engagement, as well as branded personality. Kraft’s iFood app provides recipe ideas, built-in shopping lists and supermarket locators to family chefs on-the-go. Godiva’s app enables on-demand purchases and “closest store” locators for last-minute gift buyers. iPhone’s app store is eyeing its billionth download, and RIM just launched App World, much to the delight of Blackberry users.

WHAT ARE THE IMPLICATIONS FOR BRANDS?

• Get smart, quick – and consider your brand’s mobile utility for consumers. Think about how they might engage with your brand using smartphones, when they’re on the go.
• Strive for staying power when it comes to apps. Less relevant apps have a shelf life of just 30 days, but a rich, engaging brand experience can extend their long-term value to consumers.
• Ensure your website is smartphone-friendly. Minimize download times, limit images and the need for scrolling and include alternatives for Flash. Invest in style sheets to present your site the “right way” for specific devices.
• Harness the social potential of smartphones, which let people access content anytime, with anyone. How can your brand spark a consumer conversation on a smartphone?