Telemedia Magazine - Issue 35

i ssue 3 5

Connecting consumers to media, content and billing

JUDGEMENT DAY

Is affiliate marketing safe to use yet?

PAY AWAY

Carrier billing goes mainstream

READ ALL ABOUT IT

What media wants from telemedia preview of:

cracking the code Unravelling the DNA of regulation

PLUS: International PRS • New payment opportunities • SMS retargeting • Beacons and coupons • News • Analysis

contents

18

Going global

International PRS is a tough one: it can be lucrative, but there are many challenges, not least regulation. Edgar Nobbs takes a look at how the international market is functioning and how the challenges are being met

20 Extras

Media companies have long realised that they have an interactive relationship with their audience. Now the technology is there to make this not only a truth, but also a business opportunity. But how is telemedia helping this?

Paul Skeldon reports

22 Catching the mainstream

REGULARS 05

Apple Pay day

What does this actually mean for everyone?

24 28

06 TV times

Most people want to watch live TV… in their TV

06 Channel 5 goes interactive

Channel 5 boosts interaction with Fonix

07 Tipping point

30

Half of traffic to retail websites come from mobile

08 Celebrity. Sports. Social 09

MIG founder launches celebrity powered sports social network

Apps stores embrace telemedia

Bango signs deal for more App Store payments, this time in Germany

34

10 The Agenda

Our regular round up of what the trade bodies have been up to

42 Directory

The only exhaustive list of industry do-ers

16

As PhonePay Plus and the industry thrash out a 13th Code of Practice, Paul Skeldon takes a look at the good, bad and the ‘unpretty’ elements that are currently on the table

Guilt by association?

The affiliate marketing bust by PPP has turned into a legal storm that has spurred the development of the 13th Code, elicited a judicial review and awakened the possibility of regulators being sued. Paul Skeldon surveys the scene

Access all new areas

Mobile payments are moving apace in Western Europe and the UK, but they are still not actually in widespread use. However, they are in many of the areas of the world considered less developed. Edgar Nobbs takes a look at how m-payments are being used elsewhere and show-cases how payments may play out here

Ready. Aim. Retarget

Retargeting m-commerce consumers to get them to spend again is becoming big business – and SMS is the key platform through which to achieve this. So, with an eye on this new prize, Surash Patel, Chief Operating Officer, Europe for mGage, explains how to make it work

38 Shopping for dummies

12 Cracking the code

14 The Good, the bad and the ‘unpretty’

Game on

One of the key areas where direct carrier billing is really surging ahead is in in-game purchases. Paul Skeldon talks to NeoMobile about the nuts and bolts about how this works and what it means for telemedia and gaming industry insiders

SMS remains the most penetrative messaging channel of the modern era – yet many businesses still fail to leverage its rich potential. Alan Dye, Sales and Marketing Director, Boomerang, outlines how – in almost every industry and every company – SMS can be used to transform processes, drive efficiencies and enhance the customer experience

The movers and shakers moving and shaking

The 13th Code of Practice is being finalised, but what does it contain and what impact is this going to have on the industry.

We stand on the brink of mainstream telemedia success, will the code help or hinder? Paul Skeldon unravels its DNA

WORLD TELEMEDIA PREVEW

With so much happening in the industry, World Telemedia Marbella on 15-17 October promises to be a corker.

We take a look at what’s on the agenda

36 Thread or dead

46 People

FEATURES

The mobile payments revolution is not being televised, but it is playing out across the media and, increasingly, retailers.

And a strange thing is happening: direct operator billing is starting to attract attention out there in the mainstream.

Paul Skeldon takes a look at what’s going on

40

Retail is now driven by mobile and the beacon has this summer become the retail experiment of choice.

Paul Skeldon looks at why and showcases some of the weirder ones that are up and running

5 Ways beacons can change m-commerce

As EAT and Weve announce the launch of a trial using iBeacons to develop a contactless mobile loyalty product called Pouch, Alex Sbardella, Product Director at Red Ant, gives his top five reasons why iBeacons are going to change retail forever

41 Coupons come of age

Digital coupons – started by telemedia stalwarts Eagle Eye – are poised to really take off and it is being driven now by retailers themselves. Paul Skeldon takes a look at how the coupon world has changed and how it soon will be part of the m-payments process

issue 35 telemedia 3

comment

To the motorway The telemedia industry stands at a crossroads. After years of bumpy roads and dusty detours, it is now on the slip road to the mainstream motorway.

Blue chip brands are starting to see the potential in using direct carrier billing as a way of charging for mobile content and services and it can’t be long before quasi-physical goods and then eventually physical goods follow suit.

This, in turn, is going to lead to the ability to push other telemedia stalwarts such as Voice Short Codes, PSMS and the like, into these mainstream markets. Things are looking up.

However, there is the ever-present question of regulation pulling the other way. There is a change at the top of PhonePay Plus and we have seen fewer negative press stories about the damage rogue services have caused and more about the positives, but still we stand at a crossroads.

The 13th Code is in the works. The affiliate marketing issue is in judicial review. The role of the regulator and what it regulates is being debated and, frankly, there are questions about what the future might hold.

Get it wrong on a regulatory front and the industry is forced to turn not onto the motorway, but back onto the old ring road. Get it right and it’s pedal to the metal and, handled right, telemedia companies could well be propelled into working with some of the biggest brands out there. Heck, they may even yet give Apple Pay a run for its money.

And this is the thrust of this issue of telemedia magazine – and also forms the backbone of the forthcoming World Telemedia Marbella event on 15-17 October. This dichotomy of forces pulling the industry in two directions shows how far the industry has come in the past decade and how it does finally look like fulfilling it true potential. It should be sitting at the heart of apps stores, apps, games, gambling, car parking, media snacking, interaction and more. It should be everywhere.

Yet the regulatory set up hasn’t moved in time with it. Sure, PhonePay Plus is seeking to change its remit, but to my mind it seems to be for the wrong reasons: it seems still to be propelled by the engine of “if the industry is trying to do it, then it is going to hurt consumers,” rather than the more enlightened approach of “consumers want this, let’s make sure it works for them and everyone in the value chain.”

Now I am not dissing PhonePay Plus, far from it: they do a sterling job and any change in remit or even just in the code is going to be a tug out of war. But, like any relationship – and I’ve had a few – what it needs To find t World b ou rb ella a e r is good dialogue, an openness to each other’s views and the ability o m dia Ma ob er e m e l e to compromise for the greater good.

T 7 O ct

on 15-1 age 24 see p up go to sign a n d t o tev e nt . c o . u k www.w

As the 13th Code gets written – it has been consulted on and should be finalised by early 2015 – this dialogue needs to be productive. And World Telemedia Marbella is going to be the place where this happens. Let’s make it work, let’s make it to the motorway.

Paul Skeldon

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Directeur de la rédaction Paul Skeldon paul@telemediamagazine.com Art Director Victoria Wren victoria@wr3n.com Contributors & Consultants Matthew Leach, Aideen Shortt, Sheldon Johns, Andrew Darling, Peggy Ann Salz, Ritesh Gupta, Alexandra Franklin, Paul Dunone, Bruce Pharoah, Christabel Farrah, John Strand, Melvin de Vere, Victoria Hawes, Peter Welburn Sales & Marketing info@telemediamagazine.com Production Director Annika Micheli annika@telemediamagazine.com Publisher Jarvis Todd jarvis@telemediamagazine.com To subscribe www.telemediamagazine.com What we’ve been listening to I Melt With You, Modern English Can’t Eat Money, Spirit Bomb What we’ve been amused by PhoneShop series 3 WHO we’ve been following @TheMobileView What we’ve been reading about One Three One by Julian Cope autumn 2014 will bring...

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analysis #payments

What Apple Pay really means Forget the fancy handsets, the latest announcements from Cupertino are all about Apple Pay and what this means to the world of commerce Everyone. Calm. Down. Deep breathes.

There, that’s better. Now, has Apple really transformed the worlds of payments, retail, commerce, wearables, apps and devices in one morning? No. But it has certainly focussed a lot of minds on how the next few years will see incremental changes in how people shop and spend money. Here’s how.

phone because Apple has put consumers’ interests first and introduced a very simple user experience.”

And this goes further.

It is widely known now that thanks to the biometrics and the

But there is some conjecture that even the inclusion here of NFC is a stop gap.

Most of what Apple does is aimed at the US market (and increasingly China). In the US, they don’t use chip and PIN they use the mag stripe on the back of the card.

This is being phased out, so US retailers are looking at a mass upgrade of POS systems in the coming 18 months. Many will get NFC built in. Apple is merely using this to bring its payment system to the biggest possible US retail market.

Apple Pay is the really interesting, if not entirely unexpected, part of the offering that Apple has served up. It is going to consign the wallet to history and revolutionise how people pay in shops and online. And it has the credentials to do so.

It has 800million people’s cards linked to iTunes accounts already (dwarfing PayPal’s customer base of 150million) and, with the biometric touch thing on its 5S and 6 series phones, has security.

It has also developed its own form of payment tokenisation so that it isn’t involved in the transaction between customer and merchant, it only enables it making it not only super secure, but also – interestingly – opting Apple out of any of the data collection process associated with the service.

It is also a payment mechanism that will work on e- and m-commerce sites, too, making it something of an all rounder.

But the real winning play is that Apple has, unlike everyone else, approached mobile payments from the customer point of view, rather than the businesses point of view.

“Where other people have had fits and starts with mobile payments, Apple Pay looks to be the first usable payment experience that consumers and marketers will actually use,” says CEO and cofounder of mobile marketing company Vibes, Jack Philbin. “Finally, consumers will be able to pay for things with their

The choice of NFC is also really interesting. This had been written off – by me among many – as being passé and old tech after Apple didn’t work it into the launch of the 5 or the 5S. Seems we were wrong. Very wrong.

And that is because this is really all about selling handsets. Forget any ideas that Apple is doing it for us, it is doing it for the money and that money comes from making the handset as desirable as possible. tokenization giving Apple Pay such good security, banks and card companies have agreed to let Apple have the lower card present rates for Apple Pay transactions, rather than the costly card not present ones associated with all other wallets and m-pay products (apart, interestingly from direct carrier billing).

This is designed to seal the deal with merchants. This makes it not a nice add on, but really a clear rival for cards and, therefore, real world wallets.

“Unlike all the other contenders’ motivations, this is about selling handsets by making them more useful, and it will help to drive payments as a facilitator for mobile commerce,” says Andrew Bud, chairman of the Mobile Entertainment Forum. “Whether this will gain any traction outside the United States, in countries where NFC has not found a use beyond paying for sandwiches, is open to doubt.

issue 35 telemedia 5

analysis #media

Brits still prefer to watch live TV, on their TV There are a plethora of screens now available for consumers to watch TV content on, and with another summer of sport on the UK’s TVs well under way as well as an 11th series of X Factor, it’s understandable that many media owners are still searching for how best to use these devices.

same room – like something out of Royle Family or Goggle Box. Although 28% of people concede that they might also be on their smartphone or tablet device at the same time and 11% potentially using that device to watch a different show entirely.

However, new research reveals that despite the growth in TV viewing via PC, tablet and smartphones, 89% of viewers still regularly use the TV to watch their content live – with 85% also stating that the TV is their preferred screen.

The most solitary TV viewers can be found in Scotland, with one in ten (11%) reporting that they never watch TV in the same room as family and friend, which was the highest in Britain and closely followed by watchers in Wales (10%).

The research from global broadcast solutions provider BroadStream Solutions, who polled a representative sample of the UK population in conjunction with YouGov, also found that 83% of Brits still use the TV as a social hub for the household, opting to all watch in the

According to the data, when it comes to entertainment shows like Britain’s Got Talent, The Voice or X Factor, of those consumers that watch these programmes 81% prefer to do so on TV and live rather than on catch-up or using any other device. Similarly, with sports

events like the 6 Nations Rugby or Wimbledon, of those that watched these match-ups last year, 88% preferred to do so live and on a television.

Mark Errington, CEO, BroadStream Solutions comments: “The range of services now available to consumers certainly gives them the opportunity to consume TV content in new ways, but the focal point of the living room is increasingly becoming the TV once again. It is traditional ‘live’ TV that continues to be the cornerstone of any broadcaster’s service, offering the viewer a constant reference point throughout their viewing experience. We also can’t forget that news, sport, and entertainment are all areas that people still want to watch in realtime, whether it’s in order to vote on X Factor or watch their favourite football team, these are events that simply don’t have the same impact when recorded.”

#media

Channel 5 selects newbie Fonix for two year agreement on all mobile interactive services UK commercial broadcaster Channel 5 has signed up mobile messaging, payments and telephony newbie Fonix in a two year deal focused on developing engagement between Channel 5’s audience through mobile interactive services, driving returns for the broadcaster and value to the audience.

Using a suite of Fonix solutions, includ-

ing mobile messaging and payments layered with data analytics and marketing services, Channel 5 is providing viewers with an opportunity to interact and engage with formats through an increasingly optimised and value added experience.

“We have some of the most popular interactive formats that TV has to offer.

We need our partners to be technically and operationally flawless whilst supporting us strategically around new initiatives. We have undergone a market wide supplier review process and are very pleased to have appointed Fonix to work with us moving forward,” said Joanna Cox, Acting Head of Commercial Partnerships, Channel 5.

Rob Weisz, CEO of Fonix Mobile explains: “Channel 5 is forward thinking, innovative and expert in the interactive mobile space. Our relationship with Channel 5 allows us to work collaboratively to drive key objectives and introduce new initiatives like data driven marketing and optimisation – we have a number of very exciting initiatives to introduce over the coming months.”

FOR MORE ON MEDIA & TELEMEDIA SEE PAGE 20

6 telemedia issue 35

analysis #commerce

More than half of traffic to commerce sites now comes from mobile, but what does this really tell us? gemini m-Retail Sales Index. The study also uncovered that visitor bounce rates rose to 28% in Q2, up from 25% in the previous quarter. This is most likely due to increased mobile traffic and that the checkout abandonment rate reached a record low of 27%, down from 36% in Q1.

Visits to retail websites from mobile devices have overtaken desktop traffic for the first time, the latest IMRG Capgemini Quarterly Benchmarking Report has revealed. As well as 52% of visits coming from mobile, more than a third (36%) of UK online sales are now completed on a smartphone or tablet device – a figure that rises to 40% for clothing and apparel merchants.

Of sales completed on a mobile device, smartphones account for around 18%, while tablets account for 82%, based on the data sample from the IMRG Cap-

The report also revealed that the total estimated online spend during Q2 (May to July) was £24.2bn, with £8.7bn spent via smartphones and tablet devices.

Alex Smith-Bingham, Vice President, Digital Services Leader, Capgemini, adds: “Whether you’re shopping on your Tina Spooner, Chief Information Officer tablet from the comfort of your couch at IMRG, explains the findings: “With over or on your smartphone during your daily half of all e-retail traffic now coming via commute, mobile offers the customer smartphones and tablet devices, the latest unparalleled convenience. It’s no wonder Quarterly Benchmarking results reveal a then that we’ve hit such a significant huge landmark in the growth of mobile milestone in a relatively short period commerce. Considering that as recently of time. As retailers further develop as 2010 mobile visits to e-retail sites their m-commerce platforms and as the technology becomes increasingly more accounted for less than 3% of traffic, this sophisticated, we’ll see the role of the latest milestone represents staggering desktop in our day-to-day shopping growth of 2,000% over the past 4 years.

These results clearly demonstrate that re- cycle diminish. It will be very interesting tailers’ investment in mobile optimisation to see just how wide the gap between is encouraging consumers to adopt mobile mobile and traditional e-retail will become in 12 months’ time.” devices as a shopping platform.”

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issue 35 telemedia 7

analysis #sport

MIG founder Houlihan bounces back with celebrity-led sports network Plans for a new mobile-first, celebrityled social network, BreatheSport, have been unveiled by MIG founder and telemedia buddy Barry Houlihan. The new free to join mobile platform is the first mobile sports platform of its kind.

It brings live celebrity response to sports breaking news and live sports events in a troll free area known as the “locker room” allowing fans to engage indirectly in a separate area called the “fan zone”

the BreatheSport consumer experience.

BreatheSport will use the latest mobile loyalty techniques to enrich fans’ and sports celebrities’ user experience.

BreatheSport expects to have 200 sporting personalities signed up for its official UK launch later this year and plans a rapid global roll out deploying regional versions in as many key markets as possible. This portfolio of sporting names will cover a diversity of talent If the celebrities are the heart of including today’s, tomorrow’s and yesterBreatheSport, the fans are the life-blood. day’s superstars.

Fans will be able to move around watching unguarded celebrity debate unravel Athletes and para-sports men and in a mobile first experience, whilst women will be represented within a connecting and commenting with other portfolio aiming to achieve equality sports fans. across sport. There will also be a group of sports journalists and pundits who There will be an enthralling and unique will add crucial opinion and debate to challenge for fans. Each fan will earn the platform. their right to interact directly with celebrities through a remarkable rewards BreatheSport will be a platform for anyscheme. Rewards are at the very heart of one passionate about sport; this will be

illustrated by the sports celebrity portfolio. Over 100 names have already signed up and include some of the biggest names in sport. They will be protected from abuse by a platform that will encourage real-time quality discussion and debate on sports biggest stories.

Barry Houlihan, co-founder and CEO says: “As a team we have developed some of the most innovative mobile technology in the world in our previous ventures. We know that sports fans are obsessive about real time news and engaging with sports celebrities, pundits and fellow fans. We wanted to bring that experience together in a mobile first experience as we recognise that global content providers and social networks have not yet brought order and structure to live sports debate. We have been delighted by the response from celebrities to our vision and cannot wait to get the BreatheSport experience into the hands of fans around the world.”

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8 telemedia issue 35

analysis #payments

Deutsche Telekom and Bango partner to power app store operator billing partnership opening-up several of Deutsche Telekom’s European markets through a single point of integration.

The march of carrier billing continues apace, with German giant Deutsche Telekom partnering with Bango to widen access to Direct Operator Billing (DOB) for app store purchases. The partnership enables Deutsche Telekom to accelerate DOB deployment, bringing frictionless ‘one click’ payment for apps, music, games and other digital content, to its subscribers across Germany and other European markets.

The partnership establishes Bango as a strategic partner, powering Deutsche Telekom’s payments across the range of popular app and content stores, including BlackBerry World, Facebook and Mozilla’s Firefox Marketplace. The partnership is significant in its huge reach, and in

DOB enables consumers to charge the cost of digital purchases to their mobile bill, in one click, without the need for credit/debit cards, or to register personal details. DOB has emerged as the fast path to monetization for mobile content developers, and most of the world’s leading content ecosystems are racing to adopt it as widely as possible.

the app store payments space, connecting an ever-widening group of app stores and Mobile Network Operators (MNOs) to oneclick operator billing. Deutsche Telekom selected Bango because of this leadership in powering payment for app stores, and the partnership is a further endorsement of Bango’s platform approach. As the company that has partnered with most of the giants of mobile, driving operator billing forward on a global basis, Bango is the natural partner as large MNOs seek to harness their billing capabilities in order to drive revenue from digital goods.

Bango has emerged as the de facto global leader in DOB, powering many of the world’s largest app stores, including Amazon, BlackBerry World, Facebook, Firefox Marketplace, Google Play, Windows Phone store and with more than 130 live operator connections.

Bango CEO Ray Anderson also explains: “Bango is proud to build on our long-established partnership with Deutsche Telekom. This agreement reaffirms Deutsche Telekom’s commitment to providing the very best, frictionless payment experience, for the largest possible number of Today Bango fulfills a vital strategic role in subscribers.”

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issue 35 telemedia 9

agenda

agenda

stant among men and women and among under and over 35 year olds.

Interestingly, feature phone owners are just as likely to use an app as those with newer, more advanced smartphones indicating the app economy is truly mass-market.

Gaming and social media apps remain the most popular category, with 54% and 46% of mobile media users respectively having used one in the last six months. Music (41%) and photo & video (37%) apps are also well-liked by consumers. Book apps are the least popular, with just AIME Consultation is now available for 16% having used one.

In growth markets the figures for AIME Early Warning System goes members to view and input.

The document will be refined gaming vary. Mexico consumers are live over the next week and re-issued avid gamers at 62% but in Kenya The AIME Early Warning System to Members prior to submission to only 36% of users download games, has now been live since July and PhonepayPlus. AIME has agreed preferring music (45%) and social has had contributions from Phone- an extension to the PhonepayPlus networking (42%) applications payPlus, Empello, Zamano and oth- 10th September deadline of up to instead. Social networking apps ers plus our own specialist staff. two weeks. usage also varies – Brazil leads the The Early Warning System is way at 62%, outperforming users in New PhonepayPlus Guidance on a Digital Marketing Community the UK and US (55%). However, of Q&A and Competition Services blogging system designed to alert the developed markets, China does advertisers of malware and malConcern has been expressed to not match this trend with only 35% practices that have been spotted AIME recently about PPP Guidance downloading social apps. by other advertisers, anti-virus emerging out of individual Track-1 Lifestyle and tools apps vary companies, PhonepayPlus, security procedures for Q&A (Question and from market to market with highest specialists and other UK businesses. Answer) type services and Compeengagement in developed mobile L1 Members are encouraged to tition subscription services. The markets (US, UK, China). For exprovide access to EWS and AIMEs guidance relates to the classificaample, 32% of users in this block of digital marketing guidance to their tion and regulation of Q&A services countries have downloaded a naviL2 clients to provide them with and the verification messages used gation or travel app in the last six the tools to avoid being a victim of to validate consumer submitted months whereas in other regions affiliate scams and malware.

MSISDNs. studied it was just 11-13%. When To read and make contributions While AIME does not intervene it comes to weather apps, 44% of to EWS you will need your FREE in individual cases, we support the mobile consumers in developed online account. AIME Members have view that regulation must evolve as countries have used one; elsewhere full access to EWS and can view all our industry evolves. Nonetheless, it is between just 9-17%. India leads contributions submitted to EWS, AIME had concerns with the process the way in Education apps with but will need to login through the in that it had the potential to create 26% of users actively engaged in home page once your new account an uneven playing field between Mobile Education. is active. providers, might have resulted in When you look at the data by Non AIME members can access non-technology neutral regulation, operating system, Windows phone and view information that other and may not have addressed the owners are the most enthusiastic non member contributors have underlying issue. users of apps, across every category submitted, and those that AIME AIME Board Members discussed except books in terms of average Members have allowed to be made these concerns with PhonepayPlus, number of apps downloaded per generally available; but you will who are organising a workshop user. There is little to separate still need to login through: http:// (date to be announced) to discuss iPhone and Android phone owners ews.aimelink.org the underlying issues with the obwhen it comes to app use though If you would like to submit your jective of agreeing an approach to iOS users are more likely to enjoy own contribution please email these services that AIME Members gaming (60%) than any other catinfo@aimelink.org for the EWS can support. egory (music and social networking Contributor template. are the next most popular categoOnce you have your EWS acMEF ries with 40%). count keep up to date with what Rimma Perelmuter, CEO of MEF, contributions have been submitted, MEF Study finds 96% of the commented: “Apps are an essential world’s mobile media users are by receiving alerts from our new part of consumers’ day-to-day life, downloading apps Twitter page @Aimewarnings. If regardless of gender, age, geograyou do not follow this page you will MEF has released the final phy or device-type. While games not receive alerts about new contri- report in its Global Consumer and social networks remain domibutions. We have now also created Insights Series. The report analysed nant, MEF’s App Economy report the following new # to allow you data from 10,000 respondents in 13 highlights growth across all catto search for related information countries, examining trends in the egories and engagement in growth faster: #aimeews global app economy. markets that will continue to drive Apps are all but ubiquitous adoption worldwide to deliver new 13th Code Consultation among mobile media users, with opportunities across new verticals Response Draft 96% having used any type of such as money, education, health The first draft AIME response app on their device in the last six and productivity.” to the PhonepayPlus 13th Code months. This figure remains con-

10 telemedia issue 35

MEF expands LatAm team with appointment of new General Manager MEF has appointed Ricardo Bastos as the new General Manager of its Latin America Chapter. Bastos joins MEF as a seasoned mobile industry executive having held senior roles at Vodafone Group, Siemens as well as digital agency, Accedo Brasil.

The expanded team will build on the platform it has established as the regional hub for mobile content and commerce including its Unified Code of Conduct for Brazil, which defines guidelines for the content and promotion of all value added services (VAS) within this key mobile market.

Bastos will oversee an enhanced roadmap of LatAm activities across areas such as Mobile Innovation and Mobile Money in collaboration with MEF’s LatAm Board Chaired by Filipe Rosa. Rafael Pellon will continue to drive the region’s Policy and Initiative activities to build a sustainable and trusted mobile content and commerce ecosystem. The team will work with members and the LatAm board which includes representatives from Boku, Naranya, Binbit, F.biz, Mobile Life, MOBINT, Movile, Spring Mobile Solutions, Take.net, TIMWE and Zeniva to build a globally relevant local community.

New initiatives in the region will include connecting the LatAm mobile start-up community to the established mobile industry both locally and internationally. A key component of this is MEF’s flagship event MEF Global Forum taking place in Silicon Valley on November 17th – 19th which features a dedicated Innovation Day, regional Latin America track supported by Movile, as well as the 11th annual international Meffys awards.

Rimma Perelmuter MEF CEO said: “The mobile industry in LatAm is growing rapidly, with a vibrant and diverse community that is embracing new markets, business models and verticals.

Ricardo brings a wealth of experience to MEF and the expansion of the LatAm team reflects our commitment to nurture the region’s abundant opportunities for innovation, ecosystem expansion and investment.”

MEF LatAm Chair Filipe Rosa added: “Since launch MEF LatAm has established itself as a regional enabler for mobile content and commerce. Bastos’ appointment supports our commitment to expand activities to meet the needs of changing LatAm mobile landscape as it evolves. We look

forward to working with our members to advance the exciting next phase of the Chapter.”

MMA MMA and Adidas publish The Mobile Marketing Playbook to drive global marketing efforts The Mobile Marketing Association (MMA), in partnership with Adidas, the global sports brand have released The Mobile Marketing Playbook. Created as a tool for brands and agencies, this resource aims to explain when, where and how companies can consistently use mobile around the globe as core to their marketing efforts. The playbook also provides insight on how marketers can understand the impact mobile has in the marketing mix.

“Mobile is inarguably the most global medium that marketers have in their arsenal today. Ensuring consistency in brand messaging and a consumer’s brand experience around the world is no small task for marketers,” said Sheryl Daija, Chief Strategy Officer of the MMA. “Collaborating with a respected global brand such as adidas has allowed us to keep this valuable tool grounded and focused in real world application and helps to ensure that the insight and guidance included in the playbook is practical, easily applicable to real strategies and accessible to all marketing team members.”

The Playbook takes marketers through the process of mobile strategy development from start to finish. It provides best practices around mobile executions, ways to leverage the myriad mobile vehicles, insights into mobile creative effectiveness and how companies can effectively measure and optimize mobile. Aiming to demonstrate to marketers the versatility of mobile as a marketing channel, the document provides a consistent resource to educate marketing organizations locally, nationally and globally.

“The Playbook is our guide to help establish test and learn priorities, build best practice guidelines and, perhaps most importantly, to ensure our global approach to mobile is consistent,” said Victoria Havens, Global Senior Manager, Mobile, adidas. “It allows our entire brand to fully grasp the power of mobile, making it an integral part of the marketing mix. We felt the creation of such a document will further drive the development of the mobile marketing industry and are delighted to work with the MMA to launch this resource as we share

it with the industry at large.”

The collaborative insight from the MMA and adidas provides an indispensable tool to aid strategic discussion, creative thinking and successful marketing campaign execution. Filled with case studies from the MMA’s over 450 case study hub as well as insights from the recently launched Mobile Creative Framework, the Playbook provides a foundation for brands to catapult their mobile efforts and gain a competitive edge.

In order to continue to address the ever-changing needs of and challenges faced by marketers, the document will be regularly updated to reflect shifts in consumer behavior, mobile trends as they are introduced, and innovations that are continuously being developed through and with mobile.

MMA announces formation of Mobile Location Data Accuracy Group to drive trust and scale in location marketing The Mobile Marketing Association (MMA) has announced the formation of the first ever Mobile Location Data Accuracy Group. The focus of the group will be to eliminate any confusion around mobile location data and to improve the trust and confidence brand marketers and agencies have in mobile location advertising and the data that drives it.

Simultaneously, the MMA is forming a Location Leadership Council, that will be an industry “think tank” comprised of a merging together of thought leaders from the MMA’s Location and Privacy committees, as well as experts in the various areas of location – marketing, technology, data and policy. Stemming out from the Council will be a number of working groups, the first of which is the Mobile Location Data Accuracy Group.

The working group will expand on the previously launched Location Terminology Guide, in which the MMA Location Committee identified eight types of location data and signals, and ranked each according to the reach and accuracy of the data. The data and signals to be examined by the working group include (from most accurate to least): • Indoor positioning system • Bluetooth • GPS • Wi-Fi hotspots • Wi-Fi triangulation • Cell tower triangulation • IP address • User reported location

Specifically the Mobile Location Data Accuracy Group will:

• Dig deeper into each of these data types and elaborate further on their appropriate uses and limitations • Develop and issue an RFI (Request for Information) to all location data vendors and validators that will establish criteria with which vendors can be aligned with the data types they use • Establish strict, standardized definitions with the MRC that vendors will be held accountable to and audited against According to an April 2014 BIA/Kelsey study on local media spending, location targeted mobile advertising accounted for 40% of the $7.22 Billion mobile ad spend in 2013, and is expected to grow to 52% of the $30.3 Billion forecasted for 2018.

“In order to scale mobile marketing specifically driven by location data, it is critical for the industry to come together to develop a common set of definitions of the types of location data available and how they are best used,” said Greg Stuart, CEO, MMA. “By agreeing to and abiding by a common set of best practices and guidelines, MMA members will be instrumental in driving the growth in the industry while assuring brand marketers of the measurable value derived from their mobile efforts.”

With tighter definitions of location data, and the viable uses of such data, measuring results will be more consistent and reliable. These benchmarks will allow buyers to have a much clearer understanding of the data being used, and how it will impact their location driven mobile advertising campaigns.

Initial members of the group will include: • xAd - Monica Ho, SVP Marketing (co-chair) • Joule – Michael Lieberman, CEO (co-chair) • Factual – Vikas Gupta, Director of Marketing • ThinkNear – Brett Kohn, Director of Marketing • Mobiquity – James Meckley, CMO • Nielsen – Tom Eaton, VP, Client Services • MEC – Bav Panchal, Mobile • OpenX – Rob Kramer, GM, Mobile • Ubimo - Ran Ben-Yair, CEO • Verve – James Smith, CRO

“Having this type of transparency into location data is a huge step forward that will allow us, as buyers, to invest in mobile with increased confidence,” said Michael Lieberman, CEO, Joule North America.

“This program will, in large part, allow mobile marketing to truly scale and deliver measurable results for our clients around the world.”

The telemedia industry crosses so many business borders, its interests are tied up with a range of trade bodies and associations. Here we take a look who is doing what

issue 34 telemedia 11

regulation

Cracking the code

12 telemedia issue 35

REGULATION

“When 12th Code came in there was a risk that interpreting the code could be different depending on your place in the value chain.

This is where the affiliate marketing issue came from – what might seem a bit naughty to one company is hugely serious to PPP,” says Rory Maguire, chairman of AIME. “So two distinct discussions happen with PPP: focus on making what PPP calls “Changes one around the code and its wording and to improve the effectiveness and efficiency one about what it is there to do – and how of PhonepayPlus’ investigative processes; to avoid creating man traps for providers. changes to further embed the principle of Polluter Pays, ensuring that those who cause We have to get this detail right and so far harm to the consumer bear a higher relative there is no real disagreement between the burden in terms of funding regulatory activ- industry and PPP here.”

The 13th Code of Practice is being finalised, but what does it contain and what impact is this going to have on the industry?

We stand on the brink of mainstream telemedia success, will the code help or hinder? Paul Skeldon unravels its DNA When PhonePay Plus’ 12th Code was published it was something of a watershed moment: the onus suddenly looked to shift from just blame and retribution to actually trying to make the industry work better and for the regulatory regime to be fairer.

Now, with a change at the top of PPP– out goes Paul Whiteing, in comes the pragmatic Jo Prowse – and with the 12th Code in need of some sprucing up, the process of working out what is ‘fair’ for the industry and for the consumer starts again. And it makes for interesting reading.

Of course, the affiliate marketing issue (see page 16) looms large over proceedings, but what is more apparent is that shifts in technology, shifts in the user base for PRS and shifts in consumer habits are all having to be analysed and assessed and worked into this new code.

The code is there to tell you how to abide by the rules.The real nitty gritty lies in the application of the code and the two become very different beasts

According to PPP: “The review and accompanying proposals for a new edition of the Code represent an important set of changes to ensure an already strong regulatory framework can continue to adapt to the pace of change in the digital telecoms arena. PhonepayPlus does not believe that the changes being proposed will create a disproportionate burden on industry. Indeed it is our view that the majority of changes will reduce regulatory burden, increase flexibility, or ensure clarity and consistency, and will be relatively easy to apply.”

What it seeks to do is to ensure that the Code remains effective after Ofcom’s implementation of its Non-Geographic Call Services review in June 2015. This includes proposals around changes to existing spending caps on various voice and mobile services.

PPP also wants to make sure that the Code is “future-proof, continues to have appropriate flexibility to adapt to market developments and acts as an enabler for market innovation.”

Some of the more contentious parts of the new code (see overleaf for our assessment)

But, there are potential issues in the application of the code. “This is more about continuous engagement with PPP to help them understand the market and take what we learn from them and taking that out to the market to help market not fall foul of PPP,” says Maguire.

Increasingly, this process of discussing the implementation of the code has benefits for PPP itself. Following the legal challenge to it over affiliate marketing (see page 16), PPP could find itself increasingly under legal scrutiny from providers who think they have been wrongly policed. They argue that the implementation of the PPP adjudication process severely restrains their business and is contravening European and UK laws about restraint of trade and human rights.

“We are seeing more and more people going to their lawyers arguing this and wanting legal clarification,” says Maguire. “PPP will see more and more legal challenges as they try to apply code.”

ity than others in the market; and changes to the existing prior permissions regimes, which will remove the requirement to seek permission prior to operating a relevant service. These changes will allow PhonepayPlus to activate previously defined special conditions to apply to any service types which present risk going forward.”

These are all great aims and, implemented correctly, could really enhance an industry that is on the up. But there are subtleties at work here. It is worth noting that the code is there to tell you how to abide by the rules.

The real nitty gritty lies in the application of the code and the two become very different beasts.

Seemingly, insiders tell us that PPP is largely in agreement with most of the proposed amendments tabled by the industry. But it’s a hard road. AIME is there to represent the industry to PPP, but PPP can’t be seen to be influenced by AIME. But things are looking up. The negative PR slant that essentially said “PRS bad; thank goodness for PPP” is now being consigned to the bin where it belongs. We haven’t seen too many negative PR stories of late and PPP is letting AIME at least see in advance PR about the industry so that it can comment.

Perhaps, with the new code set to be ratified in February 2015, we are poised to see a new dawn not only for the industry but for the regulator too? J

issue 35 telemedia 13

world telemedia conference & expo

15-17 OCTOBER 2014

H10 ANDALUCIA PLAZA HOTEL

MARBELLA

SPONSORS

interesting times The telemedia industry has had its share of ups and downs, but as we gear up for World Telemedia Marbella on 15-17 October, we find an industry that is ready for an almighty up. Some traditional services may have plateaued or even hit decline, but there has been of late a groundswell of interest in the services we offer as an industry within the mainstream world. And this is why we hit Marbella with high hopes.

Mobile payments are poised to be massive, boosted this autumn by Apple’s announcements around iPhone 6, NFC and Apple Pay. More and more businesses are looking to let customers pay – especially for digital goods – in the fastest and most convenient way possible. And direct carrier billing is playing into that.

The emergency of Voice short codes (VSCs) and increasing confidence in HRPRS, better operator pay outs and generally much greater MNO support for telemedia is seeing it hit the big time. And this is one of the key themes of World Telemedia Marbella.

However, with great success comes great

responsibility and, while the business is on the up, regulation is in flux. There is a new Code of Practice, there are issues with affiliate marketing, there is the spectre of the Payment Services Directive all bearing down on our bubble.

And this really is the theme of World Telemedia Marbella 2014: how to exploit the boom and create a regulatory environment that helps perpetuate that boom.

Two things that could well be considered oxymoronic, but two things that we have to make work in harmony.

So that is what the show is going to do. It is going to pull together the entrepreneurial and the go-getters and it is going to gather the law makers and regulators. It is going to catalyse the debate, not just by bringing together the two sides, but by showing the two sides what the other needs to achieve and how they can aid each other.

It’s a tough call, but one that we think we can pull off. All you have to do is be there to join the debate.

FOR LATEST INFORMATION ON EVENTS, CONFERENCE SCHEDULE AND HOW TO BOOK GO TO WWW.WTEVENT.CO.UK 24 telemedia issue 35 24,25,26,27 ShowPreview_WT35.indd 24

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world telemedia conference & expo

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Why we like World Telemedia “The balance gained between daytime engagements and evening networking, compliments the audience needs and provides a solid environment to bolster meaningful business opportunities year on year. The relaxed, informal environment with clients and prospects fosters greater discussions. The concentration in one location of technology, billing and service providers is invaluable. This forum truly can accelerate plans and initiatives. The international focus that WTM can deliver, bringing differing perceptions and opportunities yet ultimately driving new partnerships and future relations.”

Kevin Dawson, Head of Payments, Oxygen8 “Black Dog Communication’s main focus is to gain new business from the show and add a few names to our list of clientele. World Telemedia is a worldwide meet of the billing community, old faces and new! It is a great opportunity for networking and we can’t wait to attend.”

Barbara Matthews Coyle, Director, Black Dog Communications

FOR LATEST INFORMATION ON EVENTS, CONFERENCE SCHEDULE AND HOW TO BOOK GO TO WWW.WTEVENT.CO.UK issue 35 telemedia 25 24,25,26,27 ShowPreview_WT35.indd 25

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world telemedia conference & expo

DAY ONE 16 OCTOBER 2014 INTRODUCITON: The state of telemedia An expert overview of the telemedia industry in late 2014 that sets the scene for the two days of conferencing ahead, looking at: • Size of market • How it has been growing and how it is set to grow • Where the new opportunities lie in media, payments and beyond • Overview of regulatory issues and challenges • What the next 12 months holds 13th Code debate With the UK telemedia industry and regulator beginning to thrash out what will be in PhonePay Plus’ 13th Code of Practice, we assemble our experts to outline the issues and most importantly to give YOU, the industry, your say.

Is it safe to go back to Affiliate marketing Part 1 With a best practice guide in place and an Early Warning System set up, is it safe to return to using affiliate marketing? We assemble and expert panel to lay out the issues and take your questions before a private lunch where the issues will be thoroughly debated.

International PRS and wholesale markets With so much attention, rightly, focussed on the UK regulatory regime, we round off our look at regulatory issues with a more international look at the industry and the international challenges it faces.

Including: How to ride to the DOB challenge and The new generation of telemedia payment tools

Payments: How to rise to the DOB challenge Mobile payments are flavour of the month, and that is presenting a massive opportunity for carrier billing services. In the first of our two parts looking at the carrier billing landscape we hear from leading operators and providers about what these opportunities are and how to deliver them.

Payments: The new generation of telemedia payment tools Mobile payments are the hot topic du jour in all commercial circles and renewed interest in direct carrier billing is seeing new services emerge – and the growth in use of some old favourites.

Here we explore some of the latest developments and assess how they are going to impact the industry.

DAY TWO 17 OCTOBER 2014 Global outlook and wider services There is an increasingly diverse playing field in telemedia, covering SMS, DOB, Voice and Voice short codes, credit card, apps and m-payments and clients are looking ever more for fully managed, wrapped services. We kick off day two with an exploration of how the industry can help deliver this.

Trends and Opportunities in Media Day two of World Telemedia focuses on where the latest and next opportunities for telemedia services and payments lies and we look at what the media industry is looking to do with telemedia.

Opportunities in Sport, leisure and entertainment After a summer of sport, many in and around the industry are looking at how to capitalise on the opportunities in the sports, leisure and entertainment worlds.

Opportunities in Gambling Following the successful mGaming Summit in London in May, we get a follow up look at what key gambling companies are doing with telemedia and what opportunities it can unlock.

Opportunities in games and apps stores The world of apps stores and games are opening up to carrier billing and other telemedia services – this could very well be the portal to mainstream mass market penetration of the industry. We wrap up World Telemedia 2014 with a look at how this is working right now and what opportunities it gives you in the year ahead.

FOR LATEST INFORMATION ON EVENTS, CONFERENCE SCHEDULE AND HOW TO BOOK GO TO WWW.WTEVENT.CO.UK 26 telemedia issue 35 24,25,26,27 ShowPreview_WT35.indd 26

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world telemedia conference & expo

M18 SUMMIT 16 OCTOBER 2014 M-Adult 101 – Busting Mobile Myths Challenging the urban myths – TRUTH v HYPE – previous experiences are distorting views on the opportunity.

The Case For Mobile in Adult Why consider mobile as a key game play? As Juniper report that mobile adult subscriptions will be worth 1.2 billion by 2015 – how to get a share of this significant market segment Real Mobile Strategies We’ve seen what the reality of mobile is and considered the business case for implementing it – but how should you approach it strategically and tactically?

Mobile Payments “Billing is boring but getting paid is fun!”

We analyse how to make the best use of the burgeoning range of billing and payment tools and discuss what they can specifically bring to the market for over 18 services.

Partner Discussion Forum How can the adult services industry work with operators and aggregators to get a better deal that helps stimulate growth.

Mobile Content Establishing the links between successful mobile services and online.

Chat, Dating & Social Media Telemedia platforms and billing products have been a core component in delivering interactive chat and dating services. So as dating becomes mainstream and chat is an intrinsic part of the social media – what will the next generation of commercial services look like?

PREMIUM NETWORKING World Telemedia has a long standing reputation for providing a first class opportunity to rub shoulders, pick brains and share some drinks with the people that can really deliver. Marbella is no exception.

• Start “Shhmoozing” with our mobile meeting system • LinkedIn VIP and Telemedia-News.com groups • Facebook Telemedia-News.com page • WT18 Golf Day • Welcome Drinks • Opening Party - Sponsored by International Premiums • Expo Hospitality Suites, Bars & Lounges • Blind Speed Networking - “Movers” meet “Shakers” • Directors’ Lunches - in the restaurant / terrace • Working Lunches – in the main expo lounge • Happy Hour Expo Drinks Reception • Client Dinner Schedule • Parties In “The Port” - Sponsored by Mobile Life

FOR LATEST INFORMATION ON EVENTS, CONFERENCE SCHEDULE AND HOW TO BOOK GO TO WWW.WTEVENT.CO.UK issue 35 telemedia 27 24,25,26,27 ShowPreview_WT35.indd 27

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regulation

The good, the bad & the ‘unpretty’ As PhonePay Plus and the industry thrash out a 13th Code of Practice, Paul Skeldon takes a look at the good, bad and the ‘unpretty’ elements that are currently on the table The proposals around the 13th Code are largely cosmetic changes. According to Rory Maguire, MD of AIME, “We are happy with 50%, have some queries about 40% and 10% of it we need to put a stop to.” So here is a look at the good and the bad bits you should be aware of.

THE GOOD

Early notification of track 2 The industry has long asked PPP to be clearer and more up front about track 2 complaints. The 13th Code sets out PPP’s plan to list what the problems are up front and to continue a line of communication with the company. Under the previous code, once a track 2 is issued all communications stop and the provider often doesn’t know what to do.

Less bureaucratic prior permission Currently it can take months to get prior permission for services, even if they are really robustly designed and have no inherent risks. The industry is looking at reducing this down to a small handful of high-risk services and taking other less risky ones and putting them under special and general

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conditions to assess while they operate.

Live services total raised The total per call for live PRS services will be raised in the new code to £45, with reminders at £15 and £30. This is good news for the still booming live services market.

However, this needs clarification. For starters, the caller needs to be told that they will hear a beep or alert at £15 not have the call stopped: this can be very intrusive.

Also there is the issue of whether the warnings are accurate. Services are sold at £1 per minute so warning is done at 15 minutes. However, the actual charge is £1 per minute plus network charges. So the consumer could be warned they have spent £15 when in fact it could be much higher. To avoid bill shock and complaints, this needs to be done so that the consumer is told up front that they will be warned at 15 minutes NOT £15. They can then do their own maths.

THE BAD

Budget sign off PhonePay Plus is proposing that Ofcom no longer signs off PPP’s budget. The question they don’t answer though is ‘if not Ofcom then who?’ It is a sizeable £4.5m budget and PPP is also proposing to extend the scope of what it polices to cover all micropayments etc… Changing its own remit and signing off its own budget is frankly bad governance. It also could take money out of the PRS sector to fund

REGULATION

regulation of other areas that PPP wants to cover.

Making track 2 complaints written stage mandatory Currently when the PPP executive levels a track 2 charge against a company they can do an initial written stage where written submissions are made and then they get

We are happy with 50% of the proposed 13th Code, have some queries about 40% and 10% of it we need to put a stop to

30 minutes in front of a judge. The second stage can then be a proper oral hearing with lawyers. However, currently, under the 12th Code you can skip written stage and go straight to the oral stage. This is important as often the written submissions by the PPP executive can contain inaccuracies and things that need proper legal clarification and representation. This is why many people go straight to oral. PPP proposes that the written stage should be made mandatory in 13th Code.

minute services in children’s magazines.

But the way it is being interpreted seems to be that even if a child stumbles over the ad in say Top Gear magazine or something not aimed at kids, the L2 is still held responsible.

This needs to be clarified.

The Unpretty

Putting subs services under live chat regulation Early reviews of PPP’s plans for 13th Code revealed either an authoring error or regulation by stealth with the inclusion of a £30 false disconnect clause applied to live chat also being applied to subs services. This needs some attention.

Emergency procedures The whole emergency procedures area needs some work, especially in light of the affiliate marketing issues currently doing the rounds (see page 16) – it is potentially fraught with legal issues for the industry and for PPP itself. Many feel that the emergency procedures under the 12th Code are outdated. The 12th Code insists on registration of the whole value chain, so when there is a problem it should be obvious who has to deal with it. Emergency procedures should perhaps only be called upon when anyone fails to act.

Appeals payouts Under the 12th Code, any successful appeal against a PPP ruling can net the company in question £30,000. This is being raised to £100,000. Great news on the one hand, but this will come out of the levy coffers, so could in fact in directly harm the industry. J

Vulnerable people and children rules need to be clarified While the first two beefs are with process, this is one that needs some proper clarification. Currently, the rules state that the L2 or the affiliate needs to show intent to target children or vulnerable people. This means something like advertising £10 per

issue 35 telemedia 15

PAYMENTS

Game on One of the key areas where direct carrier billing is really surging ahead is in in-game purchases. Paul Skeldon talks to NeoMobile about the nuts and bolts about how this works and what it means for telemedia and gaming industry insiders Direct carrier billing has long had the potential to clean up in the digital consumer space on mobile, but it has taken a very long time to come to fruition. But, as we have seen in the previous article, it is now finally coming along. And one sector perhaps more than any other is driving that: gaming.

Mobile games have become a massive industry. Picking up where Gameboy and PSP leaves off, more people now play mobile games than their handheld dedicated equivalent and these gamers are pretty casual.

However, there is money to be made from these punters and that is where carrier billing comes in. Most modern mobile games are free to download and play. The money comes from giving players access to new levels for money (or they have to wait to progress, sometimes up to a week).

This move has prompted many people to pay to play where perhaps they wouldn’t, but what has always been lacking has been

a rapid payment mechanism. Until now.

This is where direct carrier billing comes in. It is quick, easy and is one of the few mpayments technologies that actually works right now. And, where it might once have had a poor reputation with some consumers, a whole new generation of kids don’t see it as a rip off, but as a handy tool to enhance gaming.

And this is crucial: this marks the rebirth of carrier billing as a ‘clean’ tool for consumers to use and will in time open it up to countless other consumer applications. The time is now.

So what is actually happing in gaming world? Onebip from Neomobile is a mobile payment tool that works with numerous gaming companies worldwide, including publishers Gameforge, ProsibienSat.1 Games, Aeria Games and Goodgame Studios, providing payment services for such games as Ogame, S4 League, Shaiya and Big Farm.

PLAY BUY NOW

28 telemedia issue 35

It has carried out extensive research into how consumers are using carrier billing around gaming and offer the de facto insight into the way instant payments is reshaping the gaming market.

Globally, online gamers spend an average of €4.73 per single transaction. Gamers in the UK spend nearly double this with an average transaction value of €8.94, making the UK the third biggest spender in the world by transaction value.

The average spend per transaction in Switzerland tops the global list at €15.09. This is mainly due to carriers in the country offering gaming companies the option to charge much higher price points to online gamers that pay via carrier billing compared to all other countries.

In fact, Onebip’s data found that there was a direct correlation between countries offering higher price points as an option and an increase in the average transaction value – so consumers are embracing the use of carrier billing to pay for higher priced items such as larger “bundles” of virtual currency.

In bigger gaming markets compared to Switzerland, such as Turkey, that recently increased the price points available for pay-

PAYMENTS

ment via carrier billing, gaming companies saw an increase in revenue (gross transaction volume) and average transaction value.

The data from Onebip also sheds some interesting light on how this ability to pay to play has changed gaming from a late night, weekend activity typically done in the winter, to one that happens pretty much all the time.

The winter holiday period is the busiest time for online gaming spend, with 11% of global spend taking place during the month of December. However, after December, gamers spend more money during the summer period than any other point in the year. The summer months of June, July and August account for 30% of global spend. In contrast April and May are the quietest months with just 4% of annual spend in each month respectively.

need to wait until the weekend to spend their money.

“While the maturity and penetration of mobile carrier billing varies from country to country, the overall statistics make for very interesting reading into the buying trends of gamers around the world. Gamers tend to spend using mobile payments via carrier billing consistently throughout the week and the summer period is when they spend more money than any other point in the year,” said Massimiliano Silenzi, Head of Onebip by Neomobile.

“Onebip’s data demonstrates the growing adoption of carrier billing globally as a fast and safe payment method for gamers and an effective way for online gaming brands to maximise their revenue. As carriers introduce more advanced billing technologies and more flexible and high pricing options, the payment system gains While it is true that more transactions take further traction for game companies as a key payment channel. We predict that in place on Saturday than on any other day markets such as Turkey and Spain where in the week, the spike is not statistically carriers have introduced higher price points very significant, with between 1-2% more transactions on Saturday over on any other recently, our online gaming partners will day. Clearly gamers are finding time to play see an increase in their revenue and averall week, or at the least, they don’t feel the age transaction values.” J

In Turkey, which recently increased the price points available for payment via carrier billing, gaming companies saw an increase in revenue and average transaction value

The best place in the world for carrier billing?

While the gaming sector is pulling in a lot of direct carrier billing, especially in the UK, it is France where this billing tool really comes into its own.

The French market is ripe for carrier billing – and is starting to show signs of a boom – because, while 98.4% of the population has a mobile phone, just 37.5% has a credit card.

So finds the latest mobile operator payment country special report published by DIMOCO. This discrepancy shows enormous potential when it comes to billing digital content via mobile operator payment – a fact that is also reflected in the development of value added data services.

According to ARCEP, an increase from €196 million in the fourth quarter 2012 up to €226 million in the fourth quarter 2013 was measured. This represents an annual growth rate of 15.4% and includes premium-rate services such as various data and push services, like chat rooms, weather forecasts, TV game shows, horoscopes, ringtone downloads and corresponds to all amounts billed to customers by operators, including out payments from operators to service providers.

At the same time the number of value-added data service messages decreased from 209 million messages in Q4/2012 to 183 million messages in Q4/2013 – representing a decrease of 12.6%.

“More and more payment transactions are made through direct carrier billing,” says Gerald Tauchner, explaining the trends in the mobile operator payment industry.

Three different billing types are available on the French market. Besides premium SMS and direct carrier billing, mobile network operators also offer ISP (Internet Service Provider) billing. While “SMS+” stands for the French Premium SMS Billing Solution, “Internet + Mobile” is the Direct Carrier Billing Solution and “Internet + Box” is the well-known, commonly used billing interface where consumers are charged via their Internet Service Provider (ISP) in France.

“Including ISP billing in their portfolio is rather specific to the French market, but expands our business customers’ reach,” comments Tauchner. The payment method is well-known and commonly used in France.

Digital content on the mobile and the web channel can be billed as one-off and subscription services and up to a tariff range of €30. Via mobile operator payment, DIMOCO provides a by the mobile operator managed Web TAN opt-in process where a unique SMS pin code is entered on the payment page. Via ISP billing, and additionally to the mobile operator payment process, the consumer has to login with his username and password the first time.

issue 35 telemedia 29

REGULATION

Guilt by association?

The affiliate marketing bust by PPP has turned into a legal storm that has spurred the development of the 13th Code, elicited a judicial review and awakened the possibility of regulators being sued. Paul Skeldon surveys the scene Is it safe to return to affiliate marketing?

That is the question on everyone’s lips across the telemedia industry, but we are no nearer an answer. Yet the rumblings around this issue have long reaching consequences that could call into question the role of the regulator, not just in the telemedia industry, but across all regulation.

The industry and its regulator, PhonePay Plus, have long had a testy relationship with affiliate marketing. It is widely recognised by everyone, including PhonePay Plus, as being an essential part of the marketing mix. Yet, ceding control to others is always a risk and with a world of malware and other dodgy elements lurking at the periphery of what we do, there are going to be issues.

And these issues have been well documented. But the upshot of them is quite extraordinary.

To tackle the immediate problem, AIME has created an early warning system for affiliate marketing that PhonePay Plus has endorsed (see panel) and PhonePay Plus has long had a set of rules (“What does good look like?”) that it too hopes will make it safe(r) for businesses to use affiliate marketing to good effect.

But the real upshot of the whole issue is how it has called in to question quite how regulators work and what they can and can’t do.

To recap: following some sniffing about

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on malware sites, PhonePay Plus found adverts for two German Service Providers offering telemedia services to UK customers. Investigations and fines ensued. However, the German SPs hadn’t knowingly used these sites as affiliates and had the ads removed immediately. Still the fines held.

So the German SPs sought and won a judicial review – and Pandora’s box was opened.

“This has really become a catalyst for the 13th Code,” says Rory Maguire, MD of AIME. “The initial judgement on why they could go to judicial review contained no detail on why they could seek it. But the notes do. Anyone can now go to judge and get injunction against PPP based on Justice Charles’ case notes.”

The judicial review is still – at the time of going to press – to be done, but it could be complete in a few short weeks as all submissions have been made. The high court judge just needs to make a pronouncement. But should he decide that

yes, the decision has breached the human rights of the company directors who have been fined by criminalising them and that the application of the regulations wasn’t “fair and transparent” then this opens the doors to growing legal challenges to PPP. And this is where it gets really interesting. What if the decision does go against PhonePay Plus? In theory, no one regulates the regulators, so all it would really have to do is simple tell its self off and review how it would do it differently next time around.

But what this doesn’t account for is that it could leave the regulator open to being sued. This could, in theory and if successful, bankrupt the regulator and open the flood gates for all manner of legal actions against all sorts of regulators. It could be carnage across the board. J

REGULATION

Early warning

So what is being done about the affiliate marketing issue at the ground level? Well, following consultation with industry, AIME has come up with a best practice guide that PhonePay Plus is looking to embrace by endorsement in an attempt to tackle this rumbling issue on the ground floor.

So what does it offer?

In a nutshell, the best practice guide offers practical steps for L2s to take that will prevent them as far as is possible, from getting caught out. This includes: • How to select a network • Contracts to draw up and what to specify in that contract with Networks • Steps to pre-approve banners • Some steps for searching out where banners are being shown.

The AIME early warning system has two prongs.

The first is the AIME Digital Marketing Guide that advises advertisers operating in the internet marketing arena, on how to detect and prevent fraud attempts aimed at their advertising budget.

The second is a community blogging platform known as the AIME Early Warning System for advertisers to warn each other of bad practices that they have encountered when conducting their own monitoring.

Additional to advertisers’ posting warnings, AIME has negotiated to receive postings from PhonepayPlus (the UK premium rate regulator) and from monitoring and compliance companies such as Enarpee, Empello and ETX. AIME is in discussions with anti-virus software companies and the UK Cabinet Office about collaborating with their cybercrime and malware information sharing initiatives, and getting their relevant alerts posted into the AIME Early Warning System.

Used together, AIME’s Digital Marketing Guide and Early Warning System provides relevant and timely information to enable advertiser to protect themselves from affiliate fraud and in doing so, help to protect online consumers from harm.

issue 35 telemedia 17

PRS

Going global International PRS is a tough one: it can be lucrative, but there are many challenges, not least regulation. Edgar Nobbs takes a look at how the international market is functioning and how the challenges are being met According to Analysys Mason’s forecast report, Global Telecoms Market Trends and Forecasts 2013-2017, the global market for telecoms services generated retail revenue of $1.54 trillion in 2012. Emerging markets, such as China, India and Brazil, as well as mobile data, are predicted to drive global telecoms revenue up to $1.7 trillion by 2017.

in the content space for service providers who have something unique to offer. We’re now seeing offers for unique custom, often user-generated content, which works well.

For example content providers who offer localised content – such as Bollywood content providers in India, who package their content for international sales to immigrant consumers in other markets.”

One company constantly on the look out for new international markets is Telserv, which has a presence in 140 countries, supplying domestic premium rate numbers, freephone and GEO numbers between operator and reseller.

“The regulatory landscape has changed so much that we don’t see too many subscription services anymore, like the typical ‘win an iPad’, splash page promotions. It now tends to be more stable micro-payments for digital products and services that work well – membership payments for access to dating, social media, gaming sites - where payments also are taken for virtual goods, profile upgrades and more.”

Telserv Chief Commercial Officer, Marco Dunhof, said: “There are a lot of opportunities in the premium rate market, which is why Telserv has set up in all these different countries. We sort out all the contracts and interconnections with the operators. There are opportunities in markets where there are not many people doing telecoms business already such as South Africa, Eastern Europe - Bulgaria and Romania, Brazil and North Africa.”

“Our resellers are not just interested in doing business in the top 10 countries; they want to do business outside Europe, which is why they take numbers from us. Markets such as the UK and Holland are stable markets, but they are not growing. In the Middle East, Africa and Eastern Europe the market is open. There is no economic crisis because they have not known any different.”

Danny Marino, the Chief Business Development officer at txtNation, which provides mobile billing and SMS messaging services, insists that companies are constantly evolving their services to deliver relevant content in cross-border scenarios. Marino explains: “There is still a huge opportunity

18 telemedia issue 35

For Josef Bruckschloegl, CEO of Kwak Telecom, one of the main opportunities in the international premium rate market is the “globalisation of the media business”. He said: “Ten years ago the domestic television stations’ need for response and interactivity was satisfied by domestic premium rate numbers. Now we see more demand for international solutions for a global market - companies like Bloomberg need international number ranges. Therefore, you either need a lot of domestic numbers or one or two international premium rate numbers.”

“You save money by using international premium rate, for example, if you have a TV spot on satellite going out to say 65 different countries, you need 65 response numbers. If you have one number it is much easier and provides optimisation of the whole revenue stream. One or two numbers decreases advertising effort and saves time and money. This is happening more and more.”

PRS

According to Tim Williams, CEO of Felix Telecom, what works well is television and web-based advertising and the services that are driving the market are “customer information services, competition lines, friendship lines, chat services and adult services.”

control of the services and that it is outside their jurisdiction.”

Telserv’s Dunhof agrees that working in the Middle East does throw up unique challenges and insists that to succeed in that region you must prove to the authorities that you are not some fly-by-night business but that Bruckschloegl agrees that TV is key to sucyou are in it for the long term. Dunhof said: cessful services in the international arena.

“The Middle East is a very difficult market He said: “We have found TV works well, no because of regulation. You must do your due matter what the content is. There is plenty diligence, prove you have enough money, of people content – psychology hotlines, and you must show you are in it for the long people talking about their moods. We have discovered that the volume on premium rate term.” numbers for adult content has decreased Regulation is a difficult balancing act. Too because of access to free content on the much and it can stunt business growth; internet. But we are seeing a huge trend in too little and unscrupulous individuals can ‘winning games’ – lotteries, quizzes protake advantage. Fraud is a problem in the moted on an SMS basis.” increasingly borderless world of the international premium rate market, where increasThis content is also popular in the less developed territories. Bruckschloegl says: “We ing innovation makes it hard for regulators to keep up. found that adult content and ‘win’ games work just as well in the emerging markets Kwak’s Bruckschloegl said: ”The market is the Middle East, Northern Africa, Southern being held back by the bad reputation of a Africa and South America - as the more developed countries of western Europe. It is lot of services and players within the market. all about diversification of the market not of This has had a negative effect on the access to number ranges. Big carriers are increasthe services.” ingly scared of fraud, which means some routes are not open because of hacking; the But we should not focus solely on emerging more bad entities in the market the more markets for increasing revenues; the Nordic the market will see consolidation.” countries also provide a welcome place to do business because of the higher out payDunhof insists Telserv will not touch the ments. Marino said: “In markets like Sweden international premium rate numbers and and Denmark, where they have developed stick to domestic premium rate to minimise charge-to-bill products (Wywallet and 4T, the risk of fraud. He said: “Our traffic is good, respectively) then the biggest opportunities it is clear. We have people watching our now are ticketing, transport, vending. Paytraffic for abnormalities. We also have built ment for physical goods is possible, and the networks are signing merchants up on much in algometric systems so that if something lower transaction fees to enable those deals.” happens an alarm will go off. First, we will look at the line, then call the reseller and tell them to contact their client. We give “The Nordics is huge for ‘pay by mobile’ in them half an hour to act. We are fast to warn these new offline opportunities. Basically, the customer. We don’t wait for the operator because they can compete with credit card to contact us because by then it is too late.” on transaction fees and mobile payments is so relevant for low value purchases like Marino believes that companies must keep ticketing for transport. It’s convenient, fast their eyes on the ball when doing business and accessible.” internationally, but insists regulation has Felix Telecom’s Williams highlights blocked been effective, even in this increasingly complex international market where jurisnumber ranges in certain territories as havdiction has become an issue. He said: “When ing a detrimental effect on international we work with clients to roll out services in business. Williams said: “What is really other markets then we consult with them holding the international premium rate on detail as to how to localise their services market back is blocked number ranges.

Countries, such as Iran, are not keen on you and make them relevant, both in respect of pricing and compliance.” taking money out of the country. They are also uneasy with the fact that they have no

“Regulators and networks are becoming more and more active in auditing services and managing compliance issues. As well as aggregators maturing their own processes due to better, more enforced responsibilities – as level 1 providers to ensure merchants work according to local code.”

Single number services on pan-national regions can only be a positive for the international premium rate market. These services have been run in the Middle East for game shows such as ‘Who Wants to be a Millionaire’. The single number can access 22 countries in the Middle East and is advertised on stations like MBC (Middle East Broadcasting Corporation), which broadcast via satellite into the region.

Williams said: “On the SMS side, the international market has a role to play as a single long number for SMS can be given and the provider can determine the country and network that the SMS originates from, and reply with a local SMS service to get the billing services started with the end user.”

“If we can provide a single number which is accessible for more regions, that will allow us to then engage with the user on PRSMS on a local basis,” Williams added. “Also from a number of countries we are able to collect a small revenue from the international text message.”

For Bruckschloegl, regional single number services are all well and good but the ultimate goal must be a “global single number service”. He said: “Single number services are meant to be global not just regional.

Regional single number services are a step in the right direction as it provides better and more widespread access. However, the ultimate goal must be to establish globally accessible numbers, which can serve global services such as Astra and Hotbird (satellite TV) and other global offerings like Adult content.”

“A global single number service is the Holy Grail. Not only would it make it much easier for customers to build advertising campaigns, but hijacking would be controlled more easily by collaborating with retail operators in several countries, there would be clear negotiations on caller cross rate. If you had one single number, a person could tell the operator here is the number range, this would increase market transparency and greatly reduce hijacking.” J

issue 35 telemedia 19

media

Extras

Media companies have long realised that they have an interactive relationship with their audience. Now the technology is there to make this not only a truth, but also a business opportunity. But how is telemedia helping this? Paul Skeldon reports

20 telemedia issue 35

The backbone of telemedia services has for many years been interaction. It is a no brainer: telemedia brings together communications channels, billing and services.

This is why media companies have long been using it to great effect.

able – both to the consumers and the media companies – has changed and the demands on media companies to monetise these interactive channels has grown. Let’s face it, it’s tough these days trying to make money out of media: I know, I am trying to.

But over the years, the technology avail-

In the print media this has become im-

media

The issue is the same in television. “There are now more interactive touch-points available than ever before and users’ attitude to telephony, mobile, digital and social interactivity has significantly advanced,” says Rob Weisz, CEO of Fonix, which has recently signed a deal with “The trick though is how to monetise this new world,” says Mark Challinor, Vice Presi- Channel 5 to help it interact with its dent, International News Media Association audiences. “Traditional TV companies are and CEO, Media Futures (Consulting) – and evolving and competing for audiences with new, non-traditional players – chalformerly head of mobile at Telegraph lenging the boundaries of ‘free versus paid Group. “As print revenges decline, digital for’ and ensuring that interactive services monies are not replacing them fully yet.

Mobile, for example, is seen by many as an ‘add on’ and not the premium channel it deserves to be. You, see, news media companies reach more people today than ever, through a print and digital offering/ portfolio.” perative. Print revenues from sales and advertising are declining. Revenues from digital are on the up. But digital hasn’t yet replaced the revenue lost from sales and advertising. What is the industry to do?

But creativity abounds within the fertile ground where telemedia and print media share common land. And it is here that the potential lies. As Challinor explains: “News media – and other publishers for that matter – are focused on developing mobile products more than anything else. But a whole range of technology companies, such as app stores, operators and payment companies such as Barclaycard and Visa, are going to have a big impact on how publishers make money.”

The future is not print. The future is not digital. The future is print plus digital plus “something extra”.

Over to you telemedia

To true, says Weisz. “Data driven marketing is hot on the agenda for most of the media companies closely followed by collaborative partnerships with service and content owners. TV and Media companies are looking for engaging services that generate revenue, adds value to their audiences’ experience and to be contextually relevant. We are seeing between 20% to 30% engagement uplift from targeted data driven marketing.”

Aside from data, the print industry is also looking to ditch its glacial approach to embracing technology and is looking closely at some of the most cutting edge technology out there to gain an edge.

Interactive media such as augmented reality (AR) are playing their part too in this resurgence. The Daily Telegraph recently ran a special edition just for agencies and advertisers, where when scanning the print ads, they all came alive to reveal the same ad in digital format. Helping the education of what new techs can bring. This AR edition brought in more than £1/2m of new money on the back of that one exercise alone.

“For instance,” says Challinor, “would giving readers the option to pay for media content through their mobile phone operator give a big boost to ‘circulation’ sales? If someone goes into a shop and buys a bar of chocolate it feels wrong to put it on your card.

The same could be said of picking up a daily newspaper.”

This is an area of great potential for telemedia companies. There are more people with mobile phones than credit cards, so mobile billing could be a way to increase sales.

The potential is there. App stores are already doing a decent job of taking much of the pain and hassle out of paying for content on mobiles it could be argued.

the new oil! The future winners – say Enders Analysis among others – are those who have a time grip on their audiences and where they are going. That’s why many news media companies are capturing, manipulating and exploiting their data. When adding first party data via competitions, subscriptions and so on to market and advertising data that’s available freely, a powerful picture can emerge that’s attractive to advertisers.”

remain relevant and appealing to audiences.”

What this means, says Weisz, is that data is now the key to delivering interactive services and should be the key part of any telemedia play looking to help monetize the media. “Data and information is so pivotal to the commercial, technical and operational provision of services. Five “But for “non-app” sales, or for reaching years ago, most interactive mobile comconsumers without a credit card, it could panies weren’t looking to use data in the be a good way of tapping into users who don’t yet pay for things with a mobile,” says same way as they do now. The requirements are now to identify trends quickly Challinor. “What’s needed is an educaand act upon those trends in a timely and tion exercise to iron out the trust and fear appropriate manner.” factors from there telemedia industry to publishers. Assure them there is no risk and Challinor agrees. “And then there is data: of the benefits.”

All it takes is to educate the industry as to what is available. Education brings more creativity, which brings more bespoke advertising solutions, which brings higher revenue opportunities.

“Simple isn’t it?” Challinor teases. “Well, not quite, but news media is getting there.”

In short, believes Challinor, “The future is not print. The future is not digital. The future is print plus digital plus “something extra”. That something extra is things like e-commerce, adjacent business tie-ins, data exploitations and so on. Over to you telemedia…” J

issue 35 telemedia 21

messaging

Ready. Aim. Retarget Retargeting m-commerce consumers to get them to spend again is becoming big business – and SMS is the key platform through which to achieve this. So, with an eye on this new prize Surash Patel, Chief Operating Officer, Europe for mGage explains how to make it work

Retargeting has grown more important as the mobile web, and its user base, continues to expand. Consumers now spend more time interacting with online retailers on smartphone and tablets (55%) than they do on desktops and laptops (45%), according to comScore. With an average SMS open rate of 97.5% within the first 5 seconds of being received, says Ofcom, methods such as SMS provide a perfect platform to reach consumers at a point of highest engagement.

Opportunities

The principle of mobile retargeting is to reconnect with potential and existing customers through personalised content – extending the amount of time that customers are engaging with the brand.

It can take many forms, such as targeting the consumer with adverts based on their activity history, or sending offers and discounts to prompt them to purchase an item that they have browsed. Mobile retargeting is also ideally positioned to make use of location data and is a proven way to increase ROI and decrease the cost per acquisition.

Although of obvious benefit to the retail sector – especially with the rise of iBeacons, location-based targeting and other nascent mobile technologies – it is important not to view the benefits of tracking and retargeting as being limited to this sector.

Financial services, gambling and utilities sectors, to name a few, can all reap the rewards from these techniques if used in the optimum way, as the fundamental marketing principles apply equally.

To make retar-

34 telemedia issue 35

messaging

geting possible, marketers need to have the ability to track customer journeys on their brand’s website or application. A wide range of mobile and web analytics are now available allowing marketers to gain valuable insights about their customers.

Customer behavioural data facilitates the creation of segmentation models, which form the basis of an effective communication strategy. By sending relevant and personalised messages, brands can create a loyal customer base and improve overall brand experience.

For starters, Web analytics illustrates a clear picture of the customer’s journeys throughout a brand’s website which can then help marketers and web designers identify optimization opportunities, improving the customer experience and increasing the purchase likelihood. Web analytics can also be used to ascertain which product(s) a customer has purchased and which they have looked at (and for how long) but not purchased.

A rounded view of the customer journey is essential in helping marketers to understand the customer’s thought process, which is demonstrated by their patterns of viewing and purchasing products. Through this information, marketers are able to target the customer effectively and appropriately with offers and promotions once they have left the site.

marketing technology works. It is therefore essential that, prior to using location based and analytics data to retarget, brands gain customers’ consent and inform them clearly about how their data would be used.

By empowering consumers, marketers can build credibility for the brand they work with. Moreover, with customers being assured that their data is being maintained securely, they would be more likely to opt in to receive marketing messages.

A rounded view of the customer journey is essential in helping marketers to understand the customer’s thought process, which is demonstrated by their patterns of viewing and purchasing products

Similarly, mobile analytics can be used to track customers through location data and then target them with relevant offers, increasing the likelihood that they will pop into the store. Further, the success of a text messaging campaign can be analysed through built-in analytical tools to measure customer actions.

A second challenge facing marketers is the ability to strike the balance between sendAs with web analytics, mobile analytics ing too few communications to customers can track the customer’s path to purchase, or sending multiple messages and being providing insights on how much a conintrusive. If using an SMS campaign for sumer is willing to spend per transaction, example, there is a fine line between sendhow regularly such transactions take place, ing an appropriate amount of commuand how many and which products are nications to steer customers back to the viewed before one is settled on. brand’s website, and bombarding them. Too few communications and customers may feel unloved, but too many could result in Overcoming concerns detrimental effects, causing customers to Despite the numerous benefits of retarturn away from the brand. geting campaigns, a number of customer concerns do still remain. Security concerns should be acknowledged, as there is a lack It is no easy task for marketers to get this balance right but data analytics is becomof information on consumers’ part about ing more and more essential to strike the how mobile targeting and location based

right balance. Through a wider understanding of the sector and the motivations of consumers it is possible to identify how and what to send to customers. The performance of each campaign can be quickly analysed so that with each initiative the strategy can be further developed.

Tools such as mGage’s analytics package, Visualize, give marketers an end-to-end view of the consumers’ journey, so that marketers can create customer centric experiences for their users through smart, personalised and relevant messaging.

These tools provide behavioural analytics, enabling brands and marketers to gain actionable insights across channels. It provides advanced mobile web and application data, as well as conversion attribution tracking by promotional channels like SMS and Mobile Media.

Such analytics packages can enable marketers to make informed business decisions by allowing them to understand how their customers interact with their mobile properties across multiple platforms and devices.

The tool are a reporting solution that enable you to measure the effectiveness of SMS by calculating goals achieved, either by individual or by group of users. Data collected by the system can be divided according to goals attainted, which makes subsequent marketing campaigns even more relevant and effective, thus increasing campaign ROI and optimising media spend.

Ready to begin?

Within an increasingly competitive market, brands that make full use of the latest technologies and the subsequent data insights that they gain from them are unquestionably becoming head and shoulders above the rest. Retargeting technologies are an essential part of this as personalisation becomes more essential and customers demand not to see irrelevant communications. But perhaps the core element that separates marketers in the know from those that are falling behind is the simplicity with which retargeting campaigns can be implemented and managed. Many still believe that it is essential to be a technician to understand how to make the most of it, but that is just not the case. J

issue 35 telemedia 35

messaging

Thread or dead SMS remains the most penetrative messaging channel of the modern era – yet many businesses still fail to leverage its rich potential. Alan Dye, Sales and Marketing Director, Boomerang, outlines how – in almost every industry and every company – SMS can be used to transform processes, drive efficiencies and enhance the customer experience To paraphrase Mark Twain: “Rumours of the death of SMS are greatly exaggerated.”

With more than 6 billion global users and revenues of around $135 billion each year, SMS is now so ubiquitous that it’s expected to remain the industry standard messaging channel for the next decade.

Yet despite this, prophets of doom are still preparing to issue it the last rites as it trails in the perceived wake of ‘OTT’ mobile applications like iMessage, WhatsApp and Blackberry Messenger.

But one statistic alone provides sufficient reason to halt the funeral: the average open rate for an SMS message is a whopping 98%.

In today’s fog of online, social and digital noise, the quiet simplicity of a text message clearly shouts the loudest and cuts through. And, as our email inboxes expand with unread correspondence and our Twitter feed melts in a haze of hollow hash-tags, it’s a fundamental reason why our modern Mark Twain was right. Rumours of the death of SMS are, quite ironically, OTT. But hold the phone. Why is it that, despite overwhelming evidence of its impact as the ultimate in inter-

36 telemedia issue 35

ruptive communications, few businesses are leveraging the rich potential of SMS messaging?

Indeed why is it that many are prepared to believe the hype around new innovations, and potentially discard the most penetrative media of our time? The answers may lie in the common limitations that have characterised the historical use of SMS as a promotional channel.

Traditionally, whilst SMS has provided companies with cost-effective and instant mass messaging capability, the approach has been hamstrung by an inherent inability to correlate multiple outbound messages with specific responses. This in turn prevented the messaging from having any integration with – or impact on – associated business processes.

But these limitations have been laid to rest by the introduction of innovative ‘threading’

technology. Threading means that every inbound message can automatically be matched to outbound messages, accurately and reliably. And because the technology integrates seamlessly with organisations’ existing IT infrastructure, it means that associated business processes can also leverage the opportunity and drive operational gains.

Threading is rejuvenating the SMS channel. Moreover, it’s creating a powerful platform that’s allowing proactive companies to use text messaging to go beyond marketing communications and, in addition, automate processes, transform services and enhance customer experience.

Best of all, it can be applied – uniquely – to any business in any sector.

The joy of text

The constraints of the traditional approach meant that companies were unable to handle individual responses to blanket messaging, and therefore many perceived SMS to be a simple one-way communication tool with precious little added value.

But the combination of threading capability and the high penetration rates SMS enjoys means that companies can now get

messaging

right into the faces of their users – quite literally via their mobile phone – and incorporate their own processes into the communication to drive significant operational efficiencies.

The opportunities are limitless. Threading can play a major role in helping companies address key strategic objectives and respond to critical business drivers – benefiting both customers and employees alike. For example, efficiency and productivity are now global commercial imperatives.

To accommodate this, large organisations have deployed ERP systems to support employees and manage every aspect of the business. But despite the investment, companies are increasingly discovering that a huge amount of employee time is lost simply navigating ERPs to fulfill mundane processes. Basic activities such as applying for annual leave, filing expense claims or enrolling for training can be onerous and time-consuming.

as we know, highly penetrative.

However, historical use of SMS messaging has meant that many of the qualities of good customer service have been left unsatisfied.

Threading is creating a powerful platform that’s allowing proactive companies to use text to go beyond marketing communications and automate processes, transform services and enhance customer experience

This is having a substantial impact on productivity and becoming a catalyst for employee frustration. Such inefficiency can easily be avoided.

With the advent of threading, employees can, for example, apply for annual leave via text message. By integrating threading technology with the ERP, large aspects of the application process can be automated – saving time, reducing labour and accelerating decision-making.

This is particularly evident in areas where consumers are awaiting service engineers, deliveries or face-to-face consultations.

Whereas traditional SMS has allowed companies to ‘broadcast’ messages to customers, back-office systems and primitive technologies have not enabled meaningful, real-time dialogue with individuals.

The potential impact on efficiency, productivity and employee satisfaction is significant – but the authority and control of the management decision itself is never Threading compromised. allows businesses Likewise, companies are under renewed to open pressure to deliver customer-centric two-way services. The SMS channel is, of course, tailor-made for customer communication; communicait’s widely accessible, commonly used and,

tion channels with individual customers; this means that engineers and couriers can keep customers informed and allows customers to cancel or rearrange appointments via text. At the same time, the management of associated business processes can be automated.

This has huge downstream benefits; fieldbased resource becomes more productive, call-centre resources are reduced or redeployed and, above all, customer satisfaction and retention levels naturally increase.

My best friend’s threading

Embedding intelligent communications into workflow clearly empowers organisations to complete many stakeholder transactions automatically – reducing costs, improving productivity and driving brand loyalty. The business benefits – whether for start-ups, SMEs or global conglomerates – are significant. And so, despite a misguided narrative that suggests SMS has had its day, the most progressive organisations are those that have ignored the OTT hype and are instead tailoring threading technology to suit individual business needs.

Global industry is a diverse and colourful landscape – but, despite the variability, strategic objectives are often surprisingly universal. Threading can not only help businesses meet these goals, it can also help system integrators and channel partners deliver competitive advantage on behalf of their clients.

Rumours of the death of SMS are indeed greatly exaggerated. It’s time to refocus the debate and return to the text-speak. After all, as Mark Twain would never have said, threading could just be your BFF. J

issue 35 telemedia 37

commerce

Shopping for dummies Retail is now driven by mobile and the beacon has this summer become the retail experiment of choice.

Paul Skeldon looks at why and showcases some of the weirder ones that are up and running

The street will get its own app that will then receive offers and information from retailers and restaurants along the length of the world famous street. The mobile retail initiative, which is part of an on-going £1 billion Regent Street modernisation programme, will be advertised on double-decker buses and on signs along the shopping area.

It’s like a scene from Dr Who: there you are, in a shop minding your own business when out of nowhere, the mannequins start to talking to you. Only this time, rather than soil your 1 in 5 browse products online before buying trousers and run, you respond by taking a closer look at what the mannequin is wearing in stores. Taken together, more than 70% of mobile consumers shop online. and decide to buy the shirt off its back.

Beacons mark the beginning of a retail revolution that centres around mobile. The customer and the customer’s needs need to come first and that is finally starting to happen to thanks to Bluetooth Low Energy (BLE) and its ability to ‘talk’ to the smartphone.

In store, mobile is also proving to be key.

As many as 46% of UK consumers now use mobile devices as their primary tool for purchase decision making, while one in four use mobile devices as their exclusive shopping research tool.

“Retail needs to change,” says Mark Thomson, Retail Industry Solutions Director, Europe and Africa, Motorola Solutions. “Retailers need to identify consumers – especially loyal ones – as they enter the store and they need to be aided in their navigation around the store.

The customer needs to be able to get help and assistance and queues need to become a thing of the past. Technology needs to connect retailers and consumers to each other, and to enable staff to be more helpful and empowered – and produce data that can really help the IT department with its strategy.”

So finds the second annual UK Mobile Pathto-Purchase Study conducted by Nielsen of more than 2000 UK smartphone and tablet users.

With more and more consumers using mobiles to shop, this sort of technology is vital.

More people than ever before are shopping online – driven increasingly by mobile, with nearly half of mobile users (48%) making purchases online regularly. In addition nearly

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With all this interest in mobile it is not surprising that so much emphasis this summer has been on installing beacons in various trials – culminating in my favourite, the talking shop dummy (more of which anon).

London shopping thoroughfare Regent’s Street is to become a beacon hotspot, with every store along its mile length – including Apple, Hamleys, Longchamp, Burberry, Banana Republic, Hugo Boss and Anthropologie —expected to install beacons to broadcast offers to shoppers as they walk past the shop front. About 100 stores have already been fitted with the technology.

The app, created by US agency autoGraph, allows users to indicate their shopping habits by swiping up or down (to indicate likes and dislikes) on a series of 40 well-known brands.

The app will then build up a customer profile to determine which brands they see marketing messages from. 100 shops have already signed up to the initiative, but all are expected to fall into line over the summer.

“We want Regent Street to continue to evolve as the world’s most successful shopping destination, which means bringing together online, physical and mobile retailing and using the latest technology to create an experience which delivers across all of the platforms that appeal to 21st century shoppers,” said David Shaw, head of The Crown Estate’s Regent Street Portfolio.

Paul Lorraine, UK general manager of Longchamp, adds: “Success in retail in the 21st century is strongly linked to how you engage your customers in store and online. Regent Street already has a reputation as being the place to be for brands like ours and the new mobile app will bring the digital and physical together, providing an exciting new way for us to speak to our customers.”

EasyJey meanwhile has started trialling beacons across three major European airports with the aim of helping passengers better navigate their way through the often labyrinthine, quasi-shopping malls hundreds of miles from their destination city.

The ‘iBeacon’ technology, which is being

commerce

trialled at Luton, Gatwick and Paris Charles de Gaulle airports, triggers notifications to passengers’ mobiles during “critical points of the airport journey.” The notifications are automatically activated as passengers approach bag drop and security – prompting them to open their boarding pass at the right time so it is ready to be scanned and advising when passports need to be presented.

Easyjet’s commercial director Peter Duffy explains: “This is another example of how Easyjet is innovating to make travel easier for passengers across Europe. By becoming the first airline to trial iBeacons across Europe we can help speed up the airport journey and provide assistance to our passengers making it even easier to fly with Easyjet.”

can then be programmed to engage Bluetooth enabled shoppers as they walk by, offering information about the clothes being worn (by the dummies) and, more importantly, harvesting data about the consumers walking past.

The technology is going on trial in House of Fraser in Aberdeen, Hawes & Curtis in Jermyn Street, London, and for French Connection and Jaeger clothes in the window of the Bentalls store in Kingston upon Thames.

The beacon is installed directly into each mannequin or, alternatively, a hi-tech billboard, and transmits information that has been programmed by the retailer via a secure web-portal. The retailer can choose what information is made available, but equally important is the fact they can access information about the shopper. This can include the But perhaps the most intriguing of all the beacon projects unveiled over the summer has age, gender and location of the customer, been Iconeme. Iconeme – run by Jonathan Ber- what outfit was viewed and whether a purchase was made online. lin and Adrian Coe, who happen to also own Universal Display, a mannequin manufacturer Iconeme’s Berlin explains: “This technology – installs Beacons in shop dummies which

will change the way people shop on the high street, as it brings together both on and offline retail. Research shows that customers already use their smartphones while shopping in store, but until now, the retail industry hasn’t realised the full potential of this. The beacon creates a completely new dimension to the shopping experience, by combining the consumer desire to be connected on the go, with the bricks and mortar store.”

Edward Smith, the brand manager of Hawes & Curtis, adds: “We chose Iconeme because we want to develop a greater engagement with our customers. Our visual merchandising team help bring our product to life in the windows and now we can have a better understanding of how this impacts the man and woman in the street. The VMBeacon also works 24 hours a day, so we can have instant feedback and instant sales as a result of our displays, even if the store is closed.

It’s a complete game-changer for the retail industry and we’re delighted to be in it from the start.” J

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PAYMents

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Mobile payments are moving apace in Western Europe and the UK, but they are still not actually in widespread use. However, they are in many of the areas of the world considered less developed. Edgar Nobbs takes a look at how m-payments are being used elsewhere and show-cases how payments may play out here Anyone working in mobile and/or payments is sick of hearing about M-Pesa.

Every conference, every regional report, every mobile payments launch event all you get is bloody M-Pesa. But while its pretty much old news, M-Pesa is remarkable. I mean it bucks against the Fox news agenda: backward, third world country, riven with poverty and corruption (and no doubt harbouring terrorists – Fox thinks everyone is a terrorist) gets a mobile money system up and running with basic mobile infrastructure and not an iPhone in sight.

This is amazing.

But while M-Pesa has garnered all the headlines over the past five years, it is really just one example of how mobile payments are booming outside the west. From China to Africa, from Asia to Latin America – not to mention right across India and the Middle East and even into Eastern Europe – the idea of mobile payments has leapfrogged anything we have here in the advanced world.

Of course the developing world has an advantage: it had no real telecoms infrastructure to start with, so the arrival of mobile – which is relatively cheap to get

30 telemedia issue 35

up and running, despite what Vodafone might tell you – has meant that they have jumped from no one having a landline to everyone wielding a basic 2G Nokia.

But no one really saw the combination of this cheap point of entry into telephony with springing the trap on the unbanked.

But that is where we are at. So, what is happening in the rest of the world, and what lessons can we learn from it? Here is our whistle stop world tour.

China

China is perhaps the world leader in mobile payments – being streets ahead of pretty much all other markets. Mobile payments in China surged by 255% year on year in first quarter of

2014 to 3.86trillion Yuan ($623billion) according to stats from the People’s Bank of China.

This impressive march in m-payments in China has been driven, of course, by the rising middle class. They have embraced online shopping via mobile – m-commerce to give it its proper name – with alacrity, through sites such as Alibaba and JingDong. Shopping online is growing globally, but most ‘developing’ countries don’t have an established fixed internet base, so m-commerce has become the means of doing online shopping.

Alibaba, which rivals eBay and Amazon in Asia – but which is largely ignored by the west, despite outstripping both in terms of mobile traffic – has seen a 66% year on year growth in revenues to a staggering $3.1billion. Singles Day – a holiday in China to celebrate being single – generated a single-day windfall of $5.75billion from Alibaba’s Tmall and Taobao, leading to an 80% increase in sales compared with the year before.

Twenty-

payments

one per cent of these sales were made from mobile devices.

Post-IPO Jingdong, an online shopping site found at JD.com, has proven so far it has the confidence of its investors. revenue grew 68% in 2013, following a 9%climb in 2012.

The successes of these e-commerce platforms are almost expected considering a PwC survey from 2013 that found as many as 14 percent of Chinese online shoppers shop daily, while 62 percent shop on a weekly basis.

Looking at the e-payment landscape as a whole, online payments grew 33.8% year over year to 287.75 trillion Chinese yuan ($46 trillion) on 7.07 billion transactions, a 25.9% increase according to the bank.

While commerce sites may be driving massive growth in m-payments across China, there is also a growing interest in using mobile technology for peer-to-peer payments, mirroring the early experiments

here in the west with mobile payments.

The difference in China is that is happening and in some quite extraordinary ways.

Tenpay is a company that is using popular chat platform WeChat – like whatsapp – to transfer money between friends. This is surely what Facebook ultimately has in mind when it bought Whatsapp, but that’s another story. The twist with Tenpay is that it has turned mobile payments into a game.

In China at New Year, people give each other red envelopes with random amounts of money in them. Tenpay has digitised this and allowed WeChat users to give random amounts of money in digital red enveloped to their friends.

This has now been extended to allow Chinese football fans to place bets on teams using the WeChat app. Tenpay now has 650million active users. The company is also investing in a taxi hailing app – that will also allow Tenpay users to pay for the

cab using Tenpay – and the company founder, Jim Lai, the WeChat based app is also now being used by banks to contact their customers. It is the start of building a cashless society in China.

Services such as Tenpay and the growth in m-commerce are driving a veritable explosion in mobile payments in China which is showing more innovation, forward thinking and drive than any other market around m-payments.

But there are potential road-blocks to this booming m-payment market in China.

China’s central bank has moved to stop the use of Tenpay and Alibaba’s own Alipay mobile payment apps as it seeks to address several key issues. Firstly, the People’s Bank of China wants to see more information about how customer data is

issue 35 telemedia 31

payments

secured before it allows these services to restart; and secondly, it is looking to make these mobile payment companies hold far more capital to mitigate against bad debt as the popularity of both services grow.

Latin America

Latin America has always been a hotbed of mobile phone use and has long been tipped as being the perfect place for mobile payments to take off. It’s a familiar story: the population are wedded to mobile phones, they are largely unbanked and mobile infrastructure has leap-frogged fixed line telephony.

And the recent rise in e-commerce also points to the region being, like China, a hot-bed for mobile payments.

According to a 2013 study by Ericsson ConsumerLab across Argentina, Brazil, Chile, Colombia and Mexico, the rise of mobile commerce in the past year has been dramatic and game changing.

but on the other hand, most Latin Americans baulk at involvement with banks and distrust most ‘official’ organisations.

According to anecdotal evidence gathered

by Ericsson ConsumerLab, most people use cash and borrow cash from friends and relatives. They are unbanked not purely because of poverty, but culturally.

However, the rapid rise in mobile shopping is likely to see this start to shift. And this shift is seeing a number of start-

The mobile provides convenience and can tap into the unbanked, but on the other hand, most Latin Americans baulk at involvement with banks and other ‘official’ organisations

Its figures point to between 28 and 30% of consumers in Brazil, Chile, Colombia and Mexico using some sort of com-

mmerce.

Of these, 20% of consumers regularly use mobile banking, 10-13% use mobile wallets and 15-17% use mobile shopping.

The picture is similarly, but lower, in Argentina, where 21% use m-commerce, 12% banking, 7% wallets and 11% for shopping.

Across Latin America, the study finds, consumers relish the convenience of the mobile, but are caught in a dichotomy of decision. On the one hand, the mobile provides convenience and can tap into the unbanked as M-Pesa has done in Africa,

32 telemedia issue 35

Conekta is working to deliver one click mobile payments platforms, while PagPop is active in Brazil and YellowPepper and SumUp are looking at rolling out solutions across the region.

However, to date successful roll outs have been limited. Aside from consumer distrust of banks and large organisations – plus security fears and many other hurdles – many in the mobile industry in Latin America suggest that the biggest problem lies with unsupportive banks.

According to Cristina Randall, co-founder of Mexico-based payment solutions provider Conekta: “if a merchant integrates directly with a bank to process payments, they are not provided with an anti-fraud system or with any training or procedures to deal with chargebacks. As a result, many merchants are hesitant to start transacting online with credit and debit card in a meaningful way. Coupled with the difficult legislation towards merchants in the case of chargebacks, some merchants continue using 3DSecure / Verified

by VISA, which can reduce sales up 70%.

As a result, they never see their sales take off and lose hope in growing their sales online. On the other hand, we have seen success cases of merchants taking responsibility into their own hands and educating themselves about the processes involved in chargebacks and how to protect themselves. Because of these challenges that exist for merchants, part of our core focus as a company is fraud detection and providing mechanisms for prevention.”

ups looking to create services around mobile payments across the region.

Mango launched this

year in Argentina and has a number of products in the works to address electronic and mobile transactions. In Mexico,

Sub-Saharan Africa

Unlikely as it would have seemed 10 years ago, sub-Saharan Africa (SSA) has become the poster boy for mobile payments. It has the largest number of mobile financial accounts of any of the developing regions, with 24,000 per 100,000 adults. Compare that with the world average of just 4300 or the even more pawltry 416 in Europe.

But, while

payments

much attention has been lavished on the SSA region – and on M-Pesa in Kenya in particular – many miss the true picture of mobile banking and payments in Africa.

While M-Pesa has been a success in Kenya, it isn’t perhaps the success many would have you believe.

According to Brian Richardson, co-founder of WIZZIT International, there have been about 150 implementations of some form of mobile banking in Africa so far – around 70% of them driven by MNOs. Currently nine are operating at break-even or better and eight have more than 1million users, reveal GSMA. But the usage is not all that you might be lead to believe, Digging deeper into the GSMA figures, it becomes apparent that in the more sophisticated market of South Africa, 48% of people use mobile banking. However, outside of that the average usage figures across the rest of Africa are surprising: 30% of people use it once every three months; 18% use it once a month.

As many have pointed out, it is hard to make a business case for something that is used by just 18% of the population with any degree of regularity. And unlike China and Latin America, it is going to be a long time before e and m-commerce are going to pull people into the m-payments orbit.

There is no shopping culture outside the metropolitan elites.

Instead, Africa needs to focus on how to use mobile to not only help with money transfers but to truly bank the unbank and help them develop and culture of loans and credit through mobile.

Equity’s bank service and another for Safaricom’s voice and M-Pesa services.

Africa needs to focus on how to use mobile to not only help with money transfers but to truly bank the unbanked and help them develop a culture of loans and credit through mobile

The bank has given the cards to its employees and hopes to distribute a million to current customers within a year.

At the heart of this push: Equity’s belief that banks are best positioned to provide banking services. “We have a major problem with the mobile provider also providing financial services,” says John Staley, Equity’s chief of finance, innovation and technology. “You can’t have a freight company controlling the tracks.”

And this has drawn the attention of Kenya’s Equity Bank, the country’s largest in terms of customer numbers, into the world of mobile with the aim of charging for mobile transactions and to develop more in the way of savings and loans.

Earlier this year, Equity acquired a telecom license and made plans to distribute to its customers SIM cards that would enable them to access all their accounts without visiting a branch. The ultrathin cards are designed to be placed on top of any SIM card already in a user’s phone, effectively giving people one phone line linked to

South Asia

South Asia is a fertile market for mobile payments and banking. The region consisting primarily of Bangladesh, India and Pakistan accounts for the largest number of offices actively providing mobile money services, 3.8 million compared with 805,000 in all of Africa and 1.8 million in

East Asia and the Pacific.

After just four years in operation, Pakistan’s wireless network, Easypaisa, is seeing some $3.5 billion moving across its network annually. In Bangladesh, where the bKash wireless payment system has been operating for only two years, the transaction rate is $4 billion annually.

India has been proceeding more slowly, but the pace is quickening. According to the latest stats from the Reserve Bank of India, the country’s central bank, the number of wireless money transfers has more than doubled since September 2012 to around $3.2billion.

Lately, the two best-financed efforts, Airtel Money and Vodafone M-Pesa, have begun expanding across the country. And because of the nation’s huge population, broad adoption of cellphones and some of the lowest airtime rates in the world, even a modest conversion to mobile money in India could make South Asia the world’s largest wireless-transfer economy.

“India is probably the most exciting market for mobile money in the world,” says Michael Joseph, the man credited with the success of M-Pesa in Kenya, who is now working for Vodafone in London to promote global mobile money programmes.

“When India takes off,” he says, “it will eclipse anything we’ve done in Kenya.”

And he could well be right. Some analysts estimate that by 2015 mobile money transfers in India could total $350billion annually. The size of the opportunity has attracted the major banks and mobile network operators but also at least a dozen new companies, including Beam Money, CanvasM, Ezetap, PayMate, Y-Cash and Zaakpay.

The most rapidly growing new venture is MoneyOnMobile. In operation for less than three years, MoneyOnMobile has already attracted 75million users – four times as many users as Kenya’s M-Pesa’s 18 million – and twice as many retail outlets – 163,000 versus 79,000. Although its transaction volume is tiny by comparison, India is perhaps really where m-payments will showcase itself in the coming years. J

issue 35 telemedia 33

retail

5 Ways beacons can change m-commerce

As EAT and Weve announce the launch of a trial using iBeacons to develop a contactless mobile loyalty product called Pouch, Alex Sbardella, Product Director at Red Ant, gives his top five reasons why iBeacons are going to change retail forever Mention ‘Bluetooth marketing’ and those who are old enough will no doubt be reminded of those painful ‘pairing requests’ that plagued anyone with a Bluetooth phone in the early 2000s. But now it’s back with a vengeance in a new, improved and much more useful format.

Eat has been announced as the first UK retailer to trial iBeacons, Apple’s new personalised, micro-location-based notification and alerts system. Essentially ‘GPS for indoors’, they’re the Apple-branded version of an existing technology – Bluetooth Low Energy (BLE) Beacons – which has been around for a couple of years and is already supported by the majority of recent Android handsets.

and Android/Windows devices at the same time. This means retailers know that, however they choose to implement beacons, they can serve the majority of their customers without complications.

Cheap, low-maintenance hardware The total cost of ownership for beacons is far below the usual level for enterprise retail hardware, to the point where they can almost be considered disposable. The ‘Low Energy’ part of BLE is important – beacon manufacturers Estimote, for example, claims its devices can run for two years on a single coin battery, greatly reducing the maintenance overhead for retail operations teams.

With beacons costing little, even large retail stores can be fully networked for a negligible cost. Should one malfunction, swapping in a new beacon is like changing a light bulb in terms of effort and expense.

Previously consigned to the developer community, interest is now permeating the high street with several other fashion and food retailers understood to be close to signing up to the trial in the coming weeks. iBeacons are one of the more exciting tech- Accurate indoor location nologies to hit consumer retail in the last Accurately locating customers indoors is few years, and there’s fantastic potential to a problem hardware manufacturers have use them in clever and creative ways. been struggling with for years. This means that the ‘local’ experience stops when Apple (nearly) embraces an it’s most important – once the customer open standard is actually inside the store. By creating a mesh of beacons and using triangulation, A common Apple technique is to take an shopping centres, large stores or even existing technology or service, modify it slightly, and then elevate it into the public public spaces like museums and stadiums can start providing visitors with really useconsciousness by focusing on the actual ful information based on their immediate benefit for normal people. This causes adoption issues for retailers, who have dif- environment – with an accuracy of inches rather than feet. ficulties creating something that supports both Apple’s standard and the rest of their customers. With iBeacons, it is possible to Passive, not active create beacons which can support both iOS Much of the functionality enabled by

40 telemedia issue 35

beacons could, in theory, have previously been achieved with NFC or even QR codes.

The crucial difference with beacons is that to use them requires almost no effort on the user’s part – the information can just appear before them. This does mean the implied contact consent given (by tapping against an NFC spot, for example) is removed, so marketers must be careful not to ‘spam’ consumers or abuse their trust.

Retailers can also catch brand fans (provided they’re looking at their smartphone) with exclusive offers while they’re outside the store, perhaps tempting them in when they would have otherwise walked straight past.

Customer identification and data collection Passive detection means beacons allow store staff to easily identify specific customers and quickly link them with their digital activity, bringing a whole host of customer service benefits and a real opportunity for ‘surprise and delight’. Imagine silently detecting and verifying a click and collect customer as soon as they enter the store, and having their items ready for them before they even reach the service counter. iBeacons have the potential to play a significant role in retailers’ efforts to provide ever-more personalised and seamless customer experiences. You can expect in-store engagement to get a lot more relevant, interesting – and ultimately profitable – as a result. J

commerce

Coupons come of age Digital coupons – started by telemedia stalwarts Eagle Eye – are poised to really take off and it is being driven now by retailers themselves. Paul Skeldon takes a look at how the coupon world has changed and how it soon will be part of the m-payments process Attention may well be focussed on payments right now, but coupons – and loyalty – are its bedfellows in the mobile world and have long been tipped as three offerings that would all sit together and would jointly make m-payments relevant. The old argument is that cash and card are about as convenient as it gets.

To work, mobile payments has to offer either even more ease of use (difficult) or make life a lot easier. The latter, so the argument goes, will be achieved by combining payments, loyalty schemes and offers all in one place.

But while this excellent theory has been wafting around, in practice attention has been fragmented to look assess these three things in isolation. And it seems that coupons are now getting the mobile treatment they deserve.

And retailers are now getting behind it.

According to the latest report from Juniper Research there will be 1.05 billion mobile coupon users by 2019, up from just under 560 million this year. The analyst claims that this surge in user numbers is in large part driven by increased retailer engagement with the various mobile channels. It stated that retailers were now integrating coupons into loyalty programmes to a far greater extent, while focusing on delivering coupons direct to consumers rather than relying on aggregator sites.

At the same time, the report observed that mobile coupon deployments were benefitting from retailers restructuring their businesses to reflect the wider transition to the

utilisation of online engagement channels. It noted those businesses are becoming more agile, more efficient and able to implement change more rapidly than would have previously been the case.

Steve Rothwell, Founder of Eagle Eye Solutions which pioneered mobile coupons in the UK and which has signed numerous deals with retailers to roll out mobile coupon schemes, says: “Research illustrates the enormous growth in demand for mobile coupons and rewards. These are patterns and trends we have seen in our data and we predict that demand will continue.”

In the past year alone, the number of retailers that use the Eagle Eye Air platform has doubled and the surge in demand for mobile coupons looks set to continue. But Rothwell still believes that a full, digital strategy isn’t always necessary.

“Even if you issue paper coupons you can count it digitally and that saves money,” he says. “Added to this, when you have coupons that are distributed and redeemed digitally via the phone you find out what your customers are doing, adding value to the customer and in turn bringing loyalty.”

Eagle Eye Solutions, which created the UKs first entirely digital loyalty scheme with Greggs, this week, announced that its revenue has surged 157 per cent to £1.8 million in the past year, along with its client base doubling in size.

The report also finds that Geotargeting has provided SMS-delivered coupons with a

new lease of life, with retailers seeing high redemption rates from coupons pushed to consumers near their stores.

Brands are increasingly leveraging the retail database to deliver targeted coupons. Lack of adequate POS redemption technology remains the key hurdle to greater deployment and adoption.

This is, on the face of it, surprising. The internet age is an age of aggregation, with money to made in aggregation of low value high volume offerings – and to date retailers have shunned getting involved in the nuts and bolts of running instant mobile offers.

But there are some other very interesting factors at play here. NFC has failed to take off so far, but Low Energy Bluetooth (BLE) beacons are starting to get some traction.

In tandem to this, we are seeing the rise of secure element services through Host Card Emulation (HCE). If rumours that Apple is to extend its secure element finger print recognition into a wallet product due out in September and suddenly you get the perfect storm of the tech, the reach and drive to bring about integrated payments, loyalty, coupons and wallets – all on mobile devices.

Digitally doing these things is cheaper and more effective. There are much higher redemption rates, conversion is higher and combining all three things allows a unique insight into what consumers are doing. This finally seems to have produced a ground swell amongst retailers. Roll on autumn. J

issue 35 telemedia 41

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Visit us at www.talktalkbusiness.co.uk/partners Call us on 0800 954 0764

Core Telecom

International Payout Numbers

Core Telecom is an independent Tier 1 network operator providing a full range of powerful inbound telephony solutions, including non-geographic numbers, sophisticated call management services and industry leading outpayments, to large businesses, resellers and service providers.

Kwak is one of the leading providers for international payout numbers and domestic premium rate numbers, we offer n Extensive portfolio of international payout numbers with worldwide access n Domestic premium rate numbers from over 25 countries worldwide n New interactive neutral client area with the ability to generate sub-customers

Contact: t: 0844 504 0010, e: marketing@coretelecom.co.uk www.coretelecom.co.uk

Contact us at: sales@kwak-telecom.com Phone: +357 220 28812 www.premium-rates.com

S p e cial iz e d in I t al ian and S wis s PRN , fur t he r mor e :

Premi um Rate Numb ers Busi ness Numb ers Tol l F ree Numb ers Shared C ost Numb ers Geog rap hi c Numb ers (DI Ds) I ntel l i g ent Netw ork Ser vi ces Voi ce Anti -fraud Tool s

Voice & VAS for Smart People

TeSlaTel

www.teslatel.net +39 02 87366405

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Red Telecom Solutions Ltd is a brand new network operator and carrier with a UK mobile offering. As a small company, we offer you the best outpayments utilising our brand new number ranges. With over 35 years experience make sure you meet us in the Lounge at the show.

Contact Tony Gellman on 07713 567 876 tony@redtelecomsolutions.com

Voiceblade VoiceBlade is a high availability hosted telecommunications platform. It combines the capabilities of a switch, an IVR and a billing system and makes all these elements acessible via an easy to use web interface.

Visit www.voiceblade.com for more details or contact us on +44(0)800 031 9141

A TRUSTED PARTNER FOR:

0843 / 0844 numbers 0871 / 0872 numbers www.Digital-Select.com 01/02/03, 0800/0808 & 070 numbers Number ranges from freephone to £1.53 per minute PSMS + outbound marketing SMS Online SMS platform with API’s Bespoke IVR builds & API ‘s Real-time online stats and emailed CDR’s Flexible payment terms International numbers

Tel: +44(0) 1603 949494 Skype: DigitalSelectLTD

Email: info@digital-select.com

#technology provider

Red Telecom Solutions Ltd

issue 35 telemedia 45

people

moves Ashman leaves AIME for pastures new David Ashman, the long standing Director of Industry Affairs at Association of Interactive Media and Entertainment (AIME) is to step down to pursue other opportunities in the commercial sector.

Ashman, who has been with AIME since 2009, has a long pedigree in premium rate, working previously for the Premium Rate Association (PRA).

He has held a variety of marketing and communication roles across Europe with blue chip companies including Diageo, Oracle and Cisco and pioneered the roll out of analytical campaigning for one of the UK’s main political parties.

Following several years working at the heart of the British Government, David joined the Payments Industry in 2008 and has since worked to strengthen relationships between the sector and its regulators, whilst project managing initiatives to unlock new market growth and providing consultancy to clients on Mobile technology and billing.

He came to the industry after working as special advisor and campaign manager for Rob Wilson MP, the PPS to George Osbourne, the now chancellor of the exchequer.

Ashman is off to Monetise, where he will work with Telcos across EMEA on the international expansion of Monitise’s newly acquired Markco Media portfolio of mobile content and its successful high street discount voucher network,including Last Second Tickets, Myvouchercodes, More etc. He will be sorely missed by the industry. He has spoken at many Telemedia events over the years and has become a fixture

46 telemedia issue 35

Telemedia magazine is part of a stable of media products covering the value chain for media and content companies, to third party service developers and providers to network operators and billing companies. Our products comprise:

of the payments and regulatory worlds. We wish him all the best.

Independent News and Media create 40 new digital jobs Independent News & Media (INM) has announced that it is making significant investment in its digital arm through the creation of close to 40 new roles in its Dublin headquarters. These roles highlight INM’s focus on finding new ways to engage customers and distribute content.

INM’s new digital team is headed up by Managing Director-Digital, Fiona O’Carroll, who has been focused on building a world class digital team and developing innovative products at INM to compete on a global scale. Commenting on the announcement, Fiona O’Carroll said, “Building this high performance digital team is central to our strategy at INM in order for us to grow our business both at home and globally. Our world class team has allowed us to expand our offering to both our customers and partners alike and so we are looking for more digital risk takers to help us continue this growth.”

Fionnuala O’Leary, Head of Digital Editorial says: “We have the top team of journalists in the country who provide best in class content around the clock and break news across business, sport, entertainment, life and style. We are faster than any other digital platform and want to add to this in house ability to provide interesting new ways for our customers to engage with our content. Our cross functional teams are more integrated than ever and these new roles are a great opportunity to get involved in an entrepreneurial and digitally focused media organisation.”

Telemedia-news.com an online news source, updated as the news happens and the home page for all we do

Telemedia Week a weekly email news digest of the news from the week served with an incisive and witty comment on key events

Telemedia360 a monthly fully interactive PDF newsletter featuring comment and analysis behind the headlines and backed up with full web linkage and, new for 2010, video interviews

TelemediaTV our dedicated YouTube channel featuring news interviews, background interviews, conference coverage, demos and all sorts of video material to embellish what we do through traditional media channels

Telemedia360 Blogspot our regularly updated thoughts on what is happening in the fixed line, mobile and web worlds Telemedia Magazine our bi-annual gazette of in-depth industry analysis and comment, industry survey data and research

World Telemedia Events we also put on conferences and expositions all over the world