We’re going to get out ahead of this one. Do not believe the hype; 2010 will not be the “year of the mobile phone.” For starters, it is a misnomer to continue to refer to these pocket devices as “phones,” especially as they increasingly resemble portable computers, replete with their own software, web access, document editing suites, update hassles, and more.

Industry insiders have observed that the last true mobile phone was Motorola’s wildly popular RAZR handset. Phones produced since then have focused more on so-called “lifestyle features” that extend functionality beyond touchtone dialing and basic contact list management. Modern devices take things a step further hoping to replicate and expand on the basic functionality of desktop computers.

The net effect of this evolution is dramatically altering the media landscape and consumer behavior. What marketing and revenue opportunities does this create for marketers? Where do brands fit in? And how can mobile help drive the bottom-line?

The Smartphone Explosion
The true reason 2010 won’t be the year of the mobile phone is because 2009 was. If the evolution of the Moto RAZR was a turning point in mobile phone history, then the introduction of the iPhone and the ensuing smartphone boom sounded the death knell for the term.

While the recession placed significant pressure on the mobile handset industry as a whole, smartphone sales have continued to pick up steam. Nielsen reports that one quarter of all phones sold last year were smartphones. A sizeable number, but nothing compared to their analysts' expectations that a full 40-50% of mobile devices sold in 2010 will fall in the smartphone class.

But the most important outcome of the smartphone revolution isn’t sales, but rather the shift in the cultural expectations of the device. The iPhone set a new bar for usability, data accessibility and utility. Its App Store shattered preconceptions that the device that ships in the box is the finished product. Now users expect and demand to customize their phones with a wide range of software “apps.” In two years, the iPhone, Time Magazine’s 2007 “Gadget of the Year,” has quickly ascended to pop-cultural icon, and has shifted the way that mobile devices impact consumers’ lives, attitudes, and how they, in turn, view the role of a mobile device to support their daily needs.

40% of iPhone/iTouch users access the internet more on their mobile than their desktop (Nielsen). In fact, U.S. mobile internet traffic across all handsets is now estimated between one third and one half that of wired internet traffic, making the mobile phone increasingly not the “third screen” but, increasingly, the first.

With demand for smartphones at a fever pitch and thirteen additional Android (Google) handsets, a new iPhone and intense competition from Blackberry and Palm planned for next year, 2010 is shaping up to be an exciting year for the mobile platform. The question for brands is not if to get involved, but how.

The Role of the Mobile Device in Marketing
Though the much-hyped whistles and bells (touch screens, enhanced graphics, accelerometers, GPS, etc.) have made the phone a pleasure to use, more importantly, they have also given it the potential to become a true "lifestyle enabler". Brands are no longer resigned to merely tell consumers about aspirational lifestyles, they can now give them the tools to live aspirational lives.

The mobile phone is the perfect platform to explore this new dynamic. Its portability, location-awareness and ubiquitous internet connectivity makes it ideal for lifestyle enhancing tools, services, entertainment and content. Brands that can capitalize on this dynamic will find themselves repeatedly welcome in modern consumer’s day-to-day lives.

Improving Brand Sentiment via Multiple Screens
Mobile marketing can not only help keep brands relevant in the modern media landscape, but can also help build the bottom line. Mobile is unique among marketing vehicles in that it effectively bridges the gap between the analog and digital worlds. This allows it to serve as a kind of “marketing glue” that allows the consumer experience to seamlessly jump between mediums: from broadcast or print to digital or even directly to point-of-sale. The net effect can dramatically amplify the effect of marketing communications.

Even more traditional paid display media can take advantage of the increased interactivity of the mobile device. Dockers’ recent “Shakedown 2 Get Down” interstitial advertisements exploited this to great effect. The ad featured freestyle dancer Orbitron wearing Dockers Vintage Workwear Khakis. Users could shake the phone to watch him dance. The campaign, targeting 30-something tech-savvy males, averaged 42 seconds of engagement per viewer. It also led to a 300% gain in positive brand conversations about Dockers in social media as well as widespread media coverage.