Wednesday, October 13, 2010
The Success or Failure of Windows Phone 7 All Comes Down to Marketing
At least Microsoft got the software right this time. Whether the embattled technology giant will be able to carve out more market share for the new Windows Phone 7 (WP7), unveiled yesterday (full video of the introduction available here), all boils down to marketing.
Let’s face it: Microsoft’s recent forays into the mobile space have been rocky at best. The Kin twins, introduced in April to great fanfare but generally poor reviews, lasted less than two months before being pulled from the market, their ambitions done in by flawed execution and high pricing for both the phones and the accompanying data plans.
Before that, the only major mobile news from Microsoft frankly wasn’t all that major. In October 2009, it launched Windows Mobile 6.5, a mild rework of the aging Windows Mobile 6.1 operating system designed to tide over Windows fans for a full year until WP7 was ready. Not surprisingly, it failed to make much of an impression, in no small part because it built on a platform that no one really loved in the first place.
A complete reboot was in order. Much as Microsoft did with Bing, it has aimed for a clean slate with WP7. Microsoft is adopting what it regards as a hybrid version of the Apple and Android approach: There will be multiple manufacturer partners but a single standardized OS regardless of the manufacturer. According to Microsoft, this will provide the best of both worlds—the unified experience of Apple’s iOS platform combined with the scale of Android.
The Twitter traffic during yesterday’s launch event with AT&T and early hands-on assessments have been positive if not downright enthusiastic, with Microsoft earning praise for taking a fresh, non-app-focused approached to the smartphone. There will be apps of course, but the primary user interface on the home screen will be customizable “tiles” designed to get users quickly to key functions and content.
Having virtually sat out the last few mobile device development cycles and because of its recent setbacks, Microsoft has a lot a ground to make up in the mobile space. But it can draw on some key strengths, namely integration with its Office suite and the Xbox gaming platform.
Office software still has a strong hold in the enterprise space, and that represents a distinct competitive advantage over any of the other smartphone platforms. And as I noted in my recent “Mobile Content: Games, Music and Video Take to the Cloud” report (full version available here to eMarketer Total Access clients only), gaming represents a significant growth opportunity for both paid and ad-supported content. But the bottom line is that making up all that lost ground will be tough, and Microsoft finds itself in the unenviable position of playing David vs Apple and Google’s Goliath.
Marketing will be a vital ingredient in WP7′s success or failure. Simply put, Microsoft has to convince consumers and business users why WP7 is worth their attention. Working with Crispin, Porter + Bogusky, Microsoft has fashioned a new ad campaign that represents a complete reversal from message used to market the Kin. As Mashable described it, “Rather than the phone being the center of your life, your life is the center of the phone. ” In classic Crispin, Porter fashion, the ads are distinctive, quirky and somewhat oblique, which is to say that the general public may need a more pointed message to get them to sit up and take notice.
And that’s where the carriers and Microsoft’s hybrid approach come in. Android has seen such strong growth this year in large part because of aggressive marketing support from the carriers. Assuming that Microsoft has the table stakes to play effectively in the smartphone game, a similar level of support will be crucial to WP7′s success.









