Paper discussing the trend of Mobile web replacing apps. Great discussion including financial implications and potential for trend going into the future.

1. Mobile Web: There’s Not
An App For That
Trends Assessment – Marketing 7546
The University of Memphis
Sam McDaniel
2/14/2012

2. Mobile Web: There’s Not An App For That
February 14, 2012
Historical Overview
Mobile web has been around since smart phones could first access the internet. Going
forward, mobile web should be poised to overtake mobile apps as the primary means individual
access information on their smart phones. In addition to being poised to overtake mobile apps,
mobile web is poised to replace apps for many of the tasks that apps dominate (shown below).
If mobile web is poised to overtake mobile apps, then where are they now? A chart
provided by eMarketer provides a current representation (Cavazza, 2011).
As you can see, mobile apps still currently reign, primarily because everyone was
focused on apps with the release of the first iPhone (“There’s an app for that”). While apps can
better engage consumers, the fact is that mobile web has become more economically viable
(discussing more in a moment) and easier to manage/update with tools such as HTML5.
Through HTML5 a company’s site can be optimized for usage on a desktop or smart phone.
Where apps are tied to a specific platform, mobile web can be accessed across all platforms, thus
delivering a more consistent experience in the process.
The financial impact and potential impact on business is tremendous. According to
estimates by Forrester Research, the financial impact of mobile commerce driven by mobile web
is estimated to reach $31 billion in the United States by 2016 (Hardawar, 2011). While the
financial impact is will only reach 7% by 2016, the mobile web trend will force companies to be
more transparent in pricing policies as well as creating an environment in which consumers have
2

3. Mobile Web: There’s Not An App For That
February 14, 2012
new and better experiences in stores (Hardawar, 2011). For mobile commerce in the U.S., the
customer will primarily research on the phone in store or on the go. Europe reflects much of the
same thing. In Europe, mobile commerce is expected to hit £12 Billion in 2012, up from £7.7
Billion in 2011 (Mobile Commerce to Surge in Europe). The article indicates Europe acts
similar to the US in regards to smart phones and commerce via mobile web.
The ROI related to mobile web is also a key point in the trend taking off. Based off an
estimate of 234 Million US consumers with smart phones, below is a chart detailing the ROI of
mobile web compared with mobile app (Maxwell, 2011). This shows not only a stronger ROI
with mobile websites, but also lower costs with bringing a mass product to market.
Channel Cost Reach Number of People Per $
Mobile Website $ 30,000 36.40% 2839.20
Mobile App (iPhone Only) $ 30,000 6.75% 526.67
Mobile App (iPhone, Android, BB) $ 90,000 23.04% 599.00
How Mobile Web is Currently Being Utilized
One company that is embracing the trend is SESAC, which is a performing rights
organization based in Nashville, TN. Similar to ASCAP and BMI, the Company’s goal is to
represent the rights of recording artists to be compensated for their music being performed in
public (SESAC, Inc.). The Company contracted with Centresource Interactive Agency in
Nashville, TN to create a mobile website to complement their existing site (Centresource
Interactive Agency).
SESAC knew that mobile web growth was significant and that smart phone users would
outnumber desktop users by 2014 (Centresource Interactive Agency). Centresource created a
mobile version of the existing site that was fully optimized and could be accessed by SESAC’s
primary customers, recording artists, who are always on the road. With the creation of the
mobile website, customers could track news, earnings, performances, etc. while also find
information about composers and copyrights (Centresource Interactive Agency). In further
discussions with my expert (Yeargin, 2012), he indicated that much of the drive behind going
with a mobile site was due to the Company’s desire not to be locked into certain platforms, as
well as not wanting to retain the services of an additional company to service the app.
Based on what information I have available, I think SESAC was very accurate in their
thought process for utilizing the technology. For an entity such as this, excess costs associated
with maintaining multiple tools could easily be funneled back into serving the artists. My one
criticism about their mobile platform would be that not 100% of the information available on the
website is available on the mobile site, such as the history of the organization. All of the truly
necessary information for artists can be found on the site, but I am thinking about the potential
individuals that are looking for other reasons than representation.
Another Company that is moving towards the mobile web platform is Raven Internet
Marketing Tools out of Nashville, TN. (Raven Internet Marketing Tools). Raven is an online
3

4. Mobile Web: There’s Not An App For That
February 14, 2012
platform that helps users quickly manage, monitor, and report on all things internet marketing
related. Their existing customer base includes Outback Steakhouse, Bankrate.com, and PBS. The
Company boasts thousands of customers worldwide.
Raven currently has a mobile app available for customers through iTunes for free.
According to my expert (Yeargin, 2012), the Company did not develop the app and paid
someone to build/support the tool. As the Company adds to their platform offerings, there are
limits to what the app can do beyond the basic dashboard type views. I think the Company will
eventually stop supporting the mobile app in favor of the mobile website. Much of the
Company’s reasons for making the switch were for cost savings and design responsiveness (i.e.
ease of update across multiple platforms and consistency/simplicity in design not afforded by
app). I think they also recognize the need to be 100% engaged with their customers.
I am surprised by the fact an Internet Marketer got on the app bandwagon before making
the switch to mobile web. While it appears to be the best move for their customers, I can only
access their true mobile platform if I am a customer. They have provided the traditional website
for viewing on a mobile device, which is a bit problematic as it is not optimized for a phone.
Potential Applications
Since consumers carry their smart phones everywhere, there is significant need to provide
mobile web across social, shopping, and other mediums. One medium that is heavy in
applications but not web services is fitness. I can go to any app store, and get a calorie counter,
pedometer, etc. Most people run with their phones, but unless you have an iPhone, you can’t
utilize a service like Nike Plus. The online community does not have a web presence, but could
reach an untapped market of non-Apple users along the way. If I had my Android phone, in
conjunction with my phone’s gyroscope and GPS, I could immediate log on to, sync to my
Phone, and off I go. This would update in real time with the primary website, and allow the user
to immediately interact with other members of the community.
Another potential use could be for the businessman who has a bad habit of losing
business cards. LinkedIn is great, but it is not always accessible or up to date. Business cards
now come with QR codes that allow for ease of contact input into your phone. What I did not
find in my search was a networking service that initially utilizes QR codes, but offers a real time
update capabilities via mobile web. Here’s my scenario. I receive a business card from a
prospect and scan their QR code, which will upload the contact to a website, which will be
optimized for mobile phones. As the contact changes jobs, that person’s information is updated
on the service’s primary website and mobile site in real time, as well as the individual’s phone
list. The information is always available, and fills in a void that is not currently met via LinkedIn
or other networking systems.
Interview with My Expert
I sat down to interview Stephen Yeargin, who is currently the Development Coordinator
at Raven Internet Marketing Tools in Nashville, TN. (Yeargin, 2012). After discussing the
4

5. Mobile Web: There’s Not An App For That
February 14, 2012
mobile web trend with him, his indications reflected the primary driver of the trend is ROI.
While certain situations are more conducive to web apps, Stephen indicated that more of his
Company’s customers are leaning towards what he called “responsive design”, which allows for
websites to be built in a manner that will automatically adjust between devices. The end result
being better consistency with a user’s experience and less hurdles to jump through in regards to
design, etc.
I asked several questions to Stephen; primarily about the trend. In talking with him about
the benefits for a company that wants to shift their mobile presence from an app format to a
mobile web format, he said the following (Yeargin, 2012).
“(Mobile Web is) (e)asier to maintain and faster to market. The development shops that
build your full desktop website are keenly aware that they need to offer mobile versions
and have started building those costs into their proposals to win contracts. The number
one driver of consumer interaction on mobile is search. If they find or arrive at your
website, you want to make sure they have a positive experience and can actually use it.”
In terms of effort, I was interested in the amount of effort needed to build an app vs. a
mobile site, as well as effort involved in migrating to a mobile site (Yeargin, 2012).
“As with all development, approaches are refined year after year that lowers the barriers
to entry. There are frameworks out there today that allow developers to release multi-
platform native mobile apps by just knowing a bit about HTML and Javascript (see
http://www.appcelerator.com/). Still, deciding whether to build a native mobile app or to
simply offer a mobile web version will always come down to desired goal. If you run a
company like Instagram or Foursquare, it just makes sense to have a native application
that can utilize the camera, GPS sensors, etc. of the device more seamlessly than trying to
make it work via their web browser. Conversely, if you are selling shoes to a consumer,
they just need to be able to see the size and style they are looking for and make a
transaction the same way they could on their desktop computers.”
In working on this trend, I felt there was a significant impact on the business landscape
that was being met by mobile web. I got Stephen’s thoughts below (Yeargin, 2012).
“Your phone is with you all the time. Ask any marketer if they want access to their
consumers like that and they will enthusiastically agree. They do research on their phone.
They make impulse purchases on their phone. They connect with friends on their phone.
It is a personal companion and a channel that marketers want to reach.”
For there to be a trend, there must be some sort of competitive advantage that would be
afforded to an adopting company. Once adopted, it will be imperative for the company to stay
ahead of the technology to keep the advantage. Based on my discussions with Stephen, I think
companies will have increase the user experience in order to maintain the competitive advantage.
Once a customer has a good experience, it is less likely they will trade to another company.
5

6. Mobile Web: There’s Not An App For That
February 14, 2012
“(If) I were shopping for shoes, I would likely want to go to a site that I have a better user
experience with. Example: Try to buy something from Walmart.com on the phone versus
Amazon. Wal-Mart has a solid mobile interface right up until purchase, and then it is
nearly impossible to use. These kinds of experiences will be lessons for business leaders
as they begin to analyze where their conversion funnels lose the most people.”
I think that the entire mobile web landscape will drastically evolve over the next 5 years.
I think the changes within the trend will lead to new and exciting experiences. Stephen had this
to say (Yeargin, 2012).
“Responsive design will start to take hold. We don't know what the next iPad looks like,
what screen size it will have, etc. So the smart decision is to create web properties that
adapt to changes rather than building separate versions for every possible scenario. Near-
field payments and a more seamless process of purchasing will likely become a focus for
platform developers.”
Based on my initial charts in the historical overview, someone in each consumer segment
is probably using mobile web. While that is meaningful, the real meaning is in new adopters
along the way, which makes this trend more important. Stephen provided an example of one
segment that is expanding its use of mobile web more than others. His example was of mobile
food vendors (Yeargin, 2012).
“Perhaps the most intriguing development of late is the mobile food vendor. If you
encountered a food truck selling delicious barbecue two years ago, your first thought
would be "damn, I wish I had some cash on me." With the advent of Square and other
mobile payment providers, they can use their phones and iPads to process those payments
over the internet. No cash needed. Likewise, they can update via Twitter and other Social
networks where they are right now in case anyone has a craving for that barbecue.
Retailers use "Find Me" features on their mobile sites to access the phone's GPS location
(with the user's permission) to give them directions to the nearest store.”
Conclusion
Mobile web has been around for a while, and there are companies that have early adopted
the technology instead of apps. Based on the significant increase in ROI when compared to the
app route, as well as the reduced costs and functionality provided by mobile web, it would be
wise for businesses to adopt this trend and make it work for their company.
6

7. Mobile Web: There’s Not An App For That
February 14, 2012
Bibliography
Cavazza, F. (2011, September 27). Mobile Web App vs. Native App? It's Complicated. Retrieved February
6, 2012, from Forbes: http://www.forbes.com/sites/fredcavazza/2011/09/27/mobile-web-app-vs-
native-app-its-complicated/
Centresource Interactive Agency. (n.d.). SESAC Social Media Site. Retrieved February 7, 2012, from
CentreSource Interactive Agency: http://www.centresource.com/who-we-work-with#sesac
Hardawar, D. (2011, June 17). Forrester: U.S. mobile commerce will hit $31B by 2016, still a tiny sliver of
ecommerce. Retrieved February 8, 2012, from MobileBeat:
http://venturebeat.com/2011/06/17/ecommerce-16b-2016/
Maxwell, A. (2011, February 24). Is Developing a Mobile App Worth the Cost. Retrieved February 9,
2011, from Mashable Business: http://mashable.com/2011/02/24/mobile-app-dev-cost/
Mobile Commerce to Surge in Europe. (n.d.). Retrieved February 8, 2012, from Warc:
http://www.warc.com/LatestNews/News/Mobile_commerce_to_surge_in_Europe.news?ID=29423
Raven Internet Marketing Tools. (n.d.). About Raven Internet Marketing Tools. Retrieved February 7,
2012, from Raven Internet Marketing Tools: http://raventools.com/about/
SESAC, Inc. (n.d.). About Us: SESAC, Inc. Retrieved February 8, 2012, from SESAC, Inc.:
http://www.sesac.com/About/About.aspx
Yeargin, S. (2012, February 8). Development Coordinator, Raven Internet Marketing Tools. (S. McDaniel,
Interviewer)
Interviewer’s Bio
Stephen Yeargin is the current Development Coordinator for Raven Internet Marketing Tools in
Nashville, TN. He has previously served as the Manager of Interactive Strategy at Centresource
Interactive Agency and the Director of Publication at MTA Distributors. His full profile and bio
can be found at http://linkedin.com/in/stephenyeargin.
7