Top 10 Digital Trends for 2011 01/03/11

2011 will be a year where brands demonstrate an understanding of how to leverage emerging digital trends in mobile, loyalty, near field communications, group buying, social commerce, crowdsourcing, virtual currency, green consumerism, glocalisation and online privacy.

1. Cross Platform Mobile Applications

A year ago it was all about the iPhone App with the Android Marketplace just finding its legs. Over 2010, Android OS grew market share at a stellar rate, fuelled by exclusive mobile network and device vendor relationships to counter the iPhone’s stranglehold.
This year, expect to see applications available across all smartphone / tablet platforms including including Blackberry and Nokia’s OVI. Creating simple mobile applications compatible across every major mobile OS is becoming easier through tools like The Ovi App Wizard, RhoHub, Wapple, AppMakr and ELIPS Studio.

2. The Rise of Near Field Communication Apps

Contactless payment solution like Mastercard’s PayWave will gain traction as consumers opt for it’s time saving signature-less payment processing, while brands will also leverage contactless technology native to mobile devices.  For example:

Loyalty applications that enrich real-world shopping experiences like Shopkick will proliferate as retailers look for new opportunities to engage their customers. These mobile loyalty applications will appeal to a new generation of shoppers who opt for the convenience of all-in-one devices rather than carrying around lots of paper and plastic alternatives. f This year, there will be a new level of sophistication with checking-in, loyalty and special offers.

3. Group Buying Daily Deals and Aggregation Sites

It’s about helping products and services finding the right audience – And it works.

New Group Buying website clones are emerging almost everyday fuelled by the simplicity of the business model and off the shelf content management systems.  You can purchase a clone script for Groupon for under a $100 or install a WordPress plugin that gives you the same functionality.  As Groupon or Living Social continue with their venture capitial backed and unrelenting global expansion, there are three possible futures for similar sites:

1. Bought out by a larger competitor
2. Steamrolled by better funded competitors
3. Evolve to service niche audience segments:  Hyperlocal and Hyperniche:  DailySuburb or DailyPlumber  (And then bought out by a larger competitor!)  Check out dailybites, a pizzeria directory / deals iphone app:

4. Social eCommerce

Social Media becomes an integral part of the eCommerce experience. The rapid growth of Social Commerce, primarily in the form of Facebook Stores cannot be ignored.  Platform providers are plentiful and the fact that Amazon, the grand daddy of ecommerce,, enables F-commerce activity through its Webstores solution is reason to sit up and take notice.  Real time shopping events like one hour lunch time sales with live Twitter feeds and a video stream of a host (think informercials evolved) is a likely marketing campaign.

In three to five years, 10 percent to 15 percent of total consumer spending in developed countries may go through sites such as Facebook - Mike Fauscette, analyst, IDC.

Watch for an increase in click-through catalogues, gift cards and fully transactional f-commerce stores as more businesses open their social branch.

Further uptake of Facebook connectivity to enhance the online shopping experience.  For example:

5. Continued emergence of crowdsourcing:

Tap into a global workforce to turn your idea into reality.  You can access the creativity of people all over the world rather than just one local agency with a handful of staff.  More niches are being catered to, allowing people more independent working arrangements and lifestyles.  Examples: Freelancer.com. 99designs, Crowdspring, Blog Writers and Fivr.

6. Virtual Currencies

Micro-transactions, those that cost <$2, work best on platforms that provide a streamlined purchase experience.  Unless you have a reputation and content offering as compelling as iTunes, it’s unlikely that many people will want to register their credit card details  and allow you to hold on to them for future micro-purchases.  Facebook Credits could be just the ticket to get people off the fence and accessing your premium content.

Remember to seek out the dominant virtual currency mechanism in each country.  Facebook and therefore, FBCs offer access to most social networkers in English speaking countries, but in Japan, you will note that Facebook is sidelined by Gree, Mixi and Mobage Town.  Purchases on these networks get added to the user’s mobile phone bill or players purchase Web Money in physical stores.

7. Green Consumerism

We are in the midst of the alternative energy revolution and the rise of green consumerism.  From supermarkets to airlines, companies are making a point of making green alternatives available.  This trend is fueled by customers who are willing to make environmentally conscious purchases even though they cost more.  From free range eggs to the Mercedes car sharing program, its all go for green in 2011.

8. Glocalisation

Digital assets that are reaping returns in one country can be transposed and translated into new geographies.  With the ability to deploy web applications in a matter of weeks (if not days) a business model that shows promise in one country can be replicated in another country by an entrepreneur who knows how to tailor the solution to the needs of the local market.

9. The Commoditisation of Knowledge

What we once relied on skilled software engineers for, is now available as a web application for anyone to download or subscribe to and control with a friendly user interace.  Pick almost any online industry, product, service or niche and there’s an 80% chance there’s a pre-built solution waiting for you on the net.  The skills we value today are those that enable us to select the best tools for the job and execute strategic plans.

10. Avatars

As online privacy becomes a real concern, we will start to use animated representations of ourselves in the public domain, with the “real us” being revealed only to close network connections.

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