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The i-Paper
Perfect by nature
Foreword
The first commercial mobile phone worldwide weighed 800
grammes and measured 33 x 4.5 x 8.9 cm – that was 1983.
Even though at the time it still cost 3,995 US dollars and
had an accumulator capacity of exactly one hour, it started
the first mobile revolution: a year later 300,000 people
owned the “mobile” device.
In 2007 there was a second revolution, this time not from
Motorola, but from Apple: the iPhone. In front of its com-
petitors´ eyes a newcomer conquered the mobile market
and step by step won more market shares – and definitely
not just because of its weight of 133 grammes.
The iPhone aims to cause a breakthrough in mobile Internet
usage. Its users all agree: its usability, multifunctionality
and design are unbeatable. And above all its advanced
touchscreen makes it a real milestone.
And though the iPhone may be small, you should not
underestimate it. Apple CEO Steve Jobs is convinced:
“Folks, it’s bigger than the PC!”
But isn’t that subjective? Do only Apple fans believe in
the iPhone – a small but rock-solid sworn-in minority?
We were wondering whether all the hype was legitimate.
What does the iPhone offer that nobody else can? Who
are the people who iPhone? And can the iPhone be
successfully used for advertising and marketing?
Every question led us deeper into the complex world of
iPhone. A world which is to be conquered if we still want to
have our finger on the pulse of our target group tomorrow.
Enjoy your read!
Sincerely yours,
Michael Schipper
It’s alive!
History
Experts in the trade are astonished at the unprecedented
capture of the mobile market by a newcomer. Never before
has a mobile manufacturer influenced the trade with such
speed and impact as Apple has done with the iPhone. Till
that time there had been no mobile device which was so
easy to use – in particular employing a touchscreen has
made history.
Before that Apple had started its market entry in coopera-
tion with Motorola. The ROKR E1 was one of the first
mobile phones which could be synchronized with iTunes.
The monochrome interface and the clunky touchwheel look
very out-dated from today´s point of view. Steve Jobs was
right in distancing himself from this third-party product.
Speculation that Apple would put out its own mobile
phone became more concrete, one that would not only
play audio files but also show videos and images.
January 2007 the secret was out: the first prototype of
the iPhone could be viewed at the Macworld Confer-
ence & Expo. A few months later came the final market
launch: on 29 June, 2007, in America, and in November
in Europe as well.
Already in its first year the New York Times dubbed the
iPhone “Invention of the year”, because it scored well in
the areas of design, user friendliness, trailblazing function
and development potential.
And it’s true. The iPhone had barely seen the light of the
mobile world when its little brother arrived: the iPhone 3G
– and Apple’s greatest competitor had been made in
house. Within the first two weeks it topped the sales of
the first device.
For one person it was definitely worth it, because for 2008,
Apple CEO Steve Jobs announced: “Apple just reported
one of the best quarters in its history with a spectacular
performance by the iPhone.”
Key Milestones:
Dec 99 Apple registers iPhone.org
Oct – Dec 02 iPhone is registered as a trademark in the
UK, Canada, Australia and Singapore
Oct 04 Apple and Motorola confirm that
they are collaborating on a new device
Sept 05 The iTunes-capable ROKR
phone is launched
Oct 05 Steve Jobs announces
more devices at Fortune
Nov 06 Apple patents the iPhone
Dec 06 Cisco launches a VoIP phone called iPhone
Jan 06 Steve Jobs officially announces the launch
of the Apple iPhone at MacWorld
Jan 06 Cisco sues Apple
Feb 07 Apple and Cisco agree to both use the name
May 07 Rumour has it that the iPhone is being
discontinued – Apple shares drop by 3 %
June 07 The iPhone is launched in the US
Sept 07 The iPhone comes to Germany and the UK
June 08 3G was released
June 09 3GS arrives!
He only wants to play
Facts
133 grammes of mobile world – the Internet in your pocket.
The first iPhone was already very easy to use. A device
with only 5 visible keys for the complex Internet and mobile
world? No wonder that the iPhone caused looks of sur-
prise and didn’t just catch the attention of the curious.
The first device still lacked a UMTS connection, GPS
and business functions, but Apple immediately presented
the more efficient iPhone 3G.
Mobile data use is only one aspect which Apple is sig-
nificantly promoting with its iPhone.
In the meantime Apple is set to take second place on the
worldwide Smartphone market. With an increase in
market shares of over 520 per cent in the past quarter
(Q3) Apple has left the Canadian Blackberry producer
RIM limping behind, according to Canalys. This worldwide
success is due in part to the launch of the iPhone G3 in
July and the international expansion of the company.
Ten million devices were already sold in 2008 – 3 million
more than predicted.
The feeling of having their own home office in their hand
and exploring it with their fingers went down well with
the users. But also the increase in speed and precise
location of coordinates via GPS function made the owners
of the new iPhone even more mobile.
Bull’s eye!
Targeting the iPhone Customer
Our mobile society wants mobile partners. But what do
people from this society look like? What characterizes
people from this society? How do we define a iPhoner?
In most cases he’s male. At the moment only 27 per cent
of women take advantage of an iPhone. And typical
iPhoners are young: two thirds under 35. Forty per cent
of them are single and have managed to avoid the bonds
of marriage – up to now.
When they switch the iPhone on they mostly surf through
the Internet (82 %), which makes them quite exotic because
“normal” mobile users very rarely use their Internet
function. They also usually make much more use of video
options and music-streaming.
They like to send their e-mails directly en route (76 %). As
a successor of the iPod the iPhone is also used more
conventionally as an MP3 player, at least by 73 %. 68 %
make use of its WIFI functionality .
How iPhoners became iPhoners has also been re-
searched: 35 % invested in an Apple device because
they thought that the technologies and functions offered
were unbeatable, 29 % liked the outstanding design and
style, and for 26 % their satisfaction with the brand Apple
was decisive.
The figures on data consumption from summer 2008
prove that iPhoning is addictive.
“iPhone users use in excess of 90 megabytes per month,
Blackberry users use between 1 and 2 megabytes per
month,” says Olaf Swantee, Executive Vice-President of
Telecommunications company Orange.
Mobile data volume explodes automatically with lower
costs and the appropriate end device. A logical formula.
A question of demand
Application Shop
The words spoken at the launch of
the first iPhone were clear: It is far
too dangerous to let some third party
produce the applications – mainly
because of the lack of stability,
explained Steve Jobs already in
January 2007.
Luckily he thinks differently today,
otherwise the iPhone would never
have become such an expandable
software platform – and a perfect
advertising market.
The initial turnover figures prove
that the applications haven’t just
remained greenfield developments:
200 million applications were down-
loaded within the first 102 days from
the specially “built” App Store.
In the meantime there are 10,000
products in the areas of books, busi-
ness, education, entertainment, fi-
nance, games, healthcare & fitness,
lifestyle, music, navigation, news,
photography, productivity, reference,
social networking, sports, travel
utilities and weather.
The download is very easy: via PC
or Mac from the App Store in iTunes
or directly with the iPhone. The ad-
vantage: quicker access.
The multi-touch display, the accel-
eration sensor, GPS, real-time 3D
graphics and 3D audio mean that
web developers will jump to accept
the challenge.
The producer of an application pro-
gram pays 99 dollars for membership
in the App Store, and then the
iPhoner can download it for free
from there. For programs that cost,
Apple retains 30 % of the price for
the service.
Houston we have a problem
The iGalaxy
Apple has made history in the mobile marketing world
with its iPhone.
Step by step the innovative device is conquering the
coat pockets of business people – at the moment private
use is still greater at 63 %. Now is the time to win over
iPhone users before other brands take advantage of
Apple’s success.
How can this be achieved? On the basis of the various
functionalities of the iPhone, we have identified options
for paving the way to the consumer. The iPhone is playfully
easy to use, so we believe that extremely original and
innovative applications provide a great chance to make
people talk about the brand. This area more than any other
provides an opportunity to prove the iPhone’s futurability.
Our iCosmos shows the “new world”:
Downloads
Web
Apps
Music + Video
Games
YouTube
GPS
The perfect wave
Surfing the Web
An Internet page consists of a complex presentation of
contents, which is best shown on a screen of 15 inches
and more. The iPhone has exactly 3.5 inches for that and
still it presents the entire Internet in an appealing and user-
friendly way on its touchscreen, which is one of the largest
on the mobile market.
For mobile use an Internet page is adapted using HTML/
WAP so that it is optimally displayed on the iPhone. At the
moment Flash and Java support are not yet available.
In April 2005 Apple launched version 10.4 of its Mac OS X
system, with it introducing Widgets written in HTML, CSS
and JavaScript with the help of the programme Dash-
board, and is often erroneously seen as their inventor.
In the meantime, the Widget function can also be used
on the mobile Apple device. Since the iPhone is always
subject to change through development, it is necessary
to currently check which applications can be used and
appropriate.
Another way to win the mobile Internet surfer is to offer
data in RSS format, like a news ticker. The user can be led
to his own homepage via headlines and short summaries.
With the pull method every subscriber can constantly
receive news updates.
Until someone cries
Gaming
For no other device than the iPhone is it so undefined how
many labels it can have at the same time and how many
markets it can or should serve. Its latest label is most
certainly also “game console” – portable and at less than
140 grammes impressively light.
The market leaders in the mobile area like Sony with its
PlayStation Portable or Nintendo DS should keep a careful
eye on the competition. Not only can the iPhone make any
train journey seem shorter with its great leisure offers, but it
also makes serious work possible, proving it to be more
and more a multifunctional partner.
The N-Gage from Nokia, which already in 2003 combined
the mobile phone with a game console, couldn’t make
the breakthrough due to its unhandy design: to make a
phone call you had to turn the device to the flat side and
then put it crossways to your ear. Not only did that attract
disconcerted looks but also led to fingerprints on the display.
The iPhone’s gaming advantage doesn’t just come from its
larger 3.5-inch display but also from the intuitive steering via
the multi-touch interface, an acceleration sensor and last
but not least its comparatively strong graphics processor.
Complex games taking up large amounts of memory also
easily find space on the 8- or 16-GB flash drive. Via a web
connection it is possible to access not only higher levels of
the games, but also the latest versions of them. The GPS
function even makes it possible to integrate the current
location of the player into the game. Its broader range of
software has transformed it into a handheld gaming plat-
form which can be taken seriously.
At home, too, gaming fun is guaranteed to be perfect with
the software extension available for version 2.2 and above:
the iPhone can be directly connected to the TV and can be
used as a game controller.
With innovative marketing strategies, the ideal partner to
playfully win over the iMarket.
Explore new shores
Conquer the World
City maps are usually small, foldable plans that can
easily be placed in your pocket, but are less handy to
stow away again properly after use. Or they are cumber-
some download services in digital form.
Still they hardly ever tell you exactly where you are. But
tedious searching has been put to an end with the GPS
function of the iPhone.
Google Maps is pre-installed and gives the precise indi-
cation of your own coordinates on a virtual map, allowing
you to explore any city regardless of how complex its
network is. With the iPhone the user-friendly city map
can be taken exactly where it is needed most, directly in
the streets.
This map is able to not only locate the user, but also
build the bridge between consumer and provider. So
the iPhone user can find not only his old school mate
or the nearest restaurant but also his favourite manu-
facturer, his local garage or his way directly to you or
your branches.
Seek, and you will find
Applications
“The iPhone is not a SmartPhone,” was what experts
were saying before Steve Jobs offered the iPhone to
third-party providers in the App Store in summer 2008.
Now it is up to the user to decide how “smart” his iPhone
is. Very slow transmission speeds and user-unfriendly
websites stop normal mobile owners from using the
Internet function of their mobiles.
That is why the applications in the App Store are tailor
made for the iPhone, which doesn’t only offer better colour
reproduction. The software Update 2.0 opened up the
option for developers to create their own applications for
the iPhone.
To implement an innovative idea the flexible programming
language xCode can be used for native software devel-
opment. Due to its modularity and with the support of
languages like Java, Python, Ruby and Perl it is also
useful for developing platform-independent software.
The free Software Development Kit (SDK) can be down-
loaded directly from the Apple homepage. On their website
or in the WAP portal, iPhone users can be linked directly
to the relevant applications in the App Store.
You benefit not only from the brand name Apple but also
from the App Store being the only legal program down-
load source and from the high frequency of use. Therefore
it offers a whole new marketing level. Fill the free black
spaces on the desktop of a newly bought iPhone with
your icons before someone else does. Or make your way
onto the favourite lists of experienced iPhone users.
The boards that mean the world
o sole mio/Music & Video
The iPhone is in many ways more than just a mobile
phone. It is the next development stage of the iPod with
its 3.5-inch display and its multi-touch interface.
With the touch of a finger one can search the virtual
media library or find favourites again.
The classic iPhoner uses the mobile phone in a completely
different way to the average mobile phone user. The iPhone
package exactly serves the demand for news services,
with video function, games, music and films.
Luckily with the new iPhone this is also possible without
headphones. Additionally no adapter is needed for the
headphones anymore, instead there is a direct connection
providing a sound experience that is considerate of the
surroundings.
Videos can be displayed in various formats on its large
display. The iPhone supports all available audio files.
In keeping with the versatility of the iPhone different file
formats can be offered, e.g. for podcasts, videocasts or
interactive TV programmes. The directly installed video
portal YouTube offers more marketing options: by video
seeding it offers a stronger video integration or the option
of making your own channel.
On the website or WAP site one can be linked directly to
videos which can be watched in superb quality directly
on the YouTube application of the device.
Small fish, big sharks
Downloads
Using downloads anyone can develop their own personal
iPhone world: Every user designs his own iPhone indi-
vidually along with the pre-installed functions.
New innovations in the areas of wallpaper, videos and
photos made especially for the iPhone can motivate the
consumer to initially download and then as a second
step to buy.
The brand presence is enhanced through branded per-
sonalization. Wallpaper files can be loaded directly with
the iPhone. Videos are available via download as well as
via a link with YouTube. Sounds can be transferred to
iTunes after the download.
Knight takes rook
iStrategy
The world is going online – and doing it mobile. Do you
want to mark time? Or will you take the next step into the
relatively unexplored space of mobile Internet usage?
There is a lot to discover for innovative explorers. What is
most important is a good strategy: The iStrategy leads
directly to the iPhone and from there back to your company.
Using market analysis potential partners can be found, the
target group and the competition more precisely defined,
and uniqueness verified.
The second step is the development of a suitable project
(Application Definition Statement): an innovative game, an
entertaining video or perhaps simply a classical Internet
page in the iPhone format? What suits you best?
Step by step the project will take form – and in step 3 the
rocket shoots off into space. The perfect move to outer
galactic success!
Analysis / Situation
Innovation / Singularity
Definition / Measures
Development / Roadmaps
Testing /App Store
Testing /Technique
DetailedConcept
Development Checkup Apple
Delivery
Launch of Project
Testing
Implementation / Project
Rough Concept
Screen Design
Target Group
Downloads
Market Partner / Cooperation
Music / Video
Selection / Specialists
Analysis / Situation
Innovation / Singularity
Definition / Measures
Development / Roadmaps
Testing /App Store
Testing /Technique
DetailedConcept
DevelopmentCheckup Apple
Delivery
Launch of Project
Testing
Implementation / Project
Rough Concept
Screen Design
Target Group
Downloads
MarketPartner / Cooperation
Music / Video
Selection / Specialists
Conclusion
The hype is justified – we think. And the ease with which
Apple as a newcomer has conquered the mobile market
is simply impressive.
The mobile Internet required an innovative device which
was also fun. The easy-to-use iPhone with its attractive
design and appealing icons certainly achieves this.
The target group is growing every day: while at the begin-
ning it may have only been the Apple fans or the curious
computer scientists, today it is more and more people
like you and me.
According to M:Metrics/Comscore, two-thirds of iPhone
users in Germany surf the Web, with 73 per cent overall
in Europe doing so. Not without reason was the documen-
tation of the US election campaign iPhone compatible.
And if iPhoners were only a minority of technology lovers
there would not be a logical explanation for well-known
companies develop ing special programs for the App Store.
The time is more than ready to explore this market before
others do it. With us you can overtake the competition
in the same impressive way that Apple has done so with
the iPhone.
When conquering the iPhone world, however, there are a
few key points to bear in mind:
A well-founded iStrategy (target group, market,
competitors, cooperations) and the consideration of
appropriate measures (classical app, web app, etc.)
should always be the basis of iPhone marketing.
It is extremely important that measures are appropriate
for the relevant market and that significant added
value is generated for the user.
Simply adopting something 100 % for iPhone from
existing online resources will not work. Careful con-
sideration of the mobile channel is of vital importance
for all campaigns.
To make the most of it, an extension to other channels
should occur, for instance the application Facebook
Connect offers the opportunity to extend the iPhone
App beyond the online channel.
Once an application has been created, appropriate
marketing via iTunes and the App Store ensures that
awareness is generated and maximizes the download
figures.
Our conclusion: The iPhone is the ideal channel for inno-
vative advertising strategies and thus the perfect channel
of distribution for future-oriented brands. iMarketing is
on the rise – and no one can do without iMarketing.
Imprint
Who we are
We are the world’s most awarded, direct and digital agency
network with more than 2,000 employees in 59 offices
around the world. We are aligned with BBDO worldwide
and a member of the Omnicom group of companies - the
world’s largest marketing services organization.
Why Clients hire us
We solve complex business problems with a simple strate-
gy: change individual consumer behavior. We succeed by
fusing our digital and direct expertise with our in depth
knowledge and understanding of consumer data. The end
result is a measurable and memorable engagement with
each and every one of our clients brands.
What we do
Interactive Marketing
Mobile and Social Media
Analytics
Branding
Email Marketing and eCRM
Direct Marketing
Interactive advertising and design
Customer Segmentation
Search Marketing
Strategy and Planning
Technology Architecture & Integration
Strategic Planning
Proximity Worldwide
Contact
Michael Schipper | CEO | tel +49 (0)40/278 52-4102 | e-mail [email protected]
As one of Germany's Top 3 dialogue marketing agencies,
Proximity Germany has for the past 25 years been devel-
oping behaviour-changing ideas: innovative dialogue
communication that inspires people and which has the
power to change consumer behaviour.
Proximity offers multi-channel solutions in a variety of
disciplines, including direct marketing, online commu-
nication and mobile marketing.
The agency, which is part of the BBDO Group, is headed
by Michael Schipper (CEO), Detlef Rump (CCO) and
Markus Keller (CFO). Proximity Germany employs 300
people, based in offices in Hamburg and Düsseldorf,
and its clients include major brands like E.ON, GE, In-
tercontinental Hotels Group, Mercedes-Benz, Procter
& Gamble, Shell, Panasonic and smart.
Proximity Germany