How convergence of mobile and social media changes industry landscapes

With the US economy still in a slump and Europe facing its own economic struggles and the possible demise of the Euro, the global outlook does not look too bright. Here in Asia, things are different.

As tied to the world as Asia is, it has still managed to remain relatively shielded from the worst effects of the so-called global economic downturn. Instead, the last few years have been Asia’s time to shine, as the countries in the region have all experienced substantial growth. Much of that came from two potential superpowers, China and India, but other emerging countries, such as Indonesia and the Philippines, have managed to expand their economies as well.

This new wave of Asian prosperity has also created substantial growth in areas such as the social media and mobile industry. The GSMA estimates that by the first quarter of 2012, half of the world’s six billion mobile phone connections will come from Asia – no surprise considering that the bulk of the world’s population is situated here, but certainly a major comeback for a part of the world that has, for a long time, been considered backward by the West.

Social media is another area in which Asians lead the world. While there are no definitive numbers, studies indicate that Asians number among the leading social media users in the world. Experian Hitwise reports that Singaporeans lead the world with time spent on Facebook (38 minutes and 46 seconds per session).

Other reports reflect that Indonesia, Malaysia, and the Philippines are all ranked as countries where majority of the online population uses social media. Not only is this an amazing feat, social media giants are now rushing to expand their presence in Asia, with Facebook and LinkedIn leading the pack.

The fact is that mobile social media is a global phenomenon and an unstoppable trend. One of the reasons why mobile phones became so popular so quickly in Asia is that the mobile phone is a low-cost, low barrier to entry way to put computing power in people’s hands – and connect them instantly to the Internet.

While broadband network infrastructure continues to grow in Asia, its development lags behind other regions. Cellular networks, although smaller in bandwidth, have enough for mobile phones with their smaller screens, and so, consumers in Asia have turned to mobile devices for quick and affordable online access.

As always, it is the social connection that is powering technology, and accessing social media sites has turned out to be the impetus for continuing development and significant boom of mobile space in Asia.

What does this mean for telcos and other service providers? The upside of mobile social media is that it will attract more users and allow for increased collaboration within the ecosystem.

Additionally, mobile social media provides opportunities for new and diverse revenue streams and even new avenues to encourage customer brand loyalty. Telcos can localise and customise solutions to establish mobile social communities through a solution that spells convergence, convenience and affordability in a single platform. These factors will always be draw cards for consumers.

For marketers, mobile social media is a game-changer. Social networks provide new opportunities to engage with individual users, as well as extensive demographic targeting. Marketers will need to be creative, but the potential for enriching, lasting engagement with customers is there.

The other great strength of mobile social network is that it facilitates sharing, and so benefits offered to individuals (say, special offers or discounts) can be easily disseminated to that individual’s social circle, engendering loyalty and creating joint, group experiences. Human beings love to share, so marketing across a network designed to let them share their experiences with one another will hold great rewards.

It is clear by now that neither mobile nor social media is a one-hit wonder whose time will come and go. In fact, mobile social media may extend the lifespan of both, as we all come to take social media and mobile connectivity for granted. In 2012, mobile social media will firmly stamp its authority in the industry as a norm and a key player in consumers’ and marketers’ lives.

Social sharing on mobile will define user’s overall mobile experience. This will become even more evident in 2012, as sharing becomes more universal: people will be able to share more than just status updates, ideas, media and files.

Instead, sharing will become more experience-oriented: product reviews, e-shopping, banking, web transactions, travel reviews, or even connected to actual locations. There will be even more options to share content in new and different ways. More opportunities will arise for consumers to share individual thoughts and experiences on products or brands, companies and services.

Gamification, where activities or behaviour take on game-like qualities, will become more common. This will allow the experience of products and brands to expand, as gamification allows for the granting of points or other rewards for participation.

Technology has always been driven by what people can or will do with it, and while the connectivity offered by mobile devices and social media may have been a novelty, now they represent real connections between real people. This will be more of a driver in 2012, as people use mobile social media to capture their real experiences so that they can be shared with their network of family, friends and acquaintances, in real time.

Michael Yin, Chief Executive Officer, Mozat Pte Ltd.