Telemedia Magazine by annika micheli

issue 30

Connecting consumers to media, content and billing

Connected Telemedia's new religion?

MOBILE PAYMENTS COME OF AGE PREVIEWS OF: Logo

mSPORT SUMMIT Mobile Strategies for Sport & Sporting Events

OTT SERVICES RETHINK TELEMEDIA SOCIAL MEDIA RINGS THE CHANGES

Logo with strapline (varies according to context)

PLUS ShowcaSting: the new way to broadcaSt > the LateSt from the regULator > aime'S new board mGAMING SUMMIT Strategies for mastering mobile gambling

features EVER DECREASING CIRCULATIONS

Newspaper sales are in decline as more and more people go digital, but selling that digital content is proving tough. Is interaction the answer and what is in it for the telemedia business? Matthew Leach reports

CHANGING CHANNEL

TV is now a connected medium, but it has gone beyond voting on TV shows and now involves social media, gaming, betting and a lot more besides. Matthew Leach takes a look

RIGHT HERE, RIGHT NOW

As smartphone ownership rises and brands wake up to the power of mobile, it seems that mobile marketing has truly come of age. Mick Rigby, MD and founder of Yodelmobile, explains what this means for the industry

THE TRUE VALUE OF NFC

David Worthington, Principal Consultant for Payment and Chip Technology – Bell ID, explains how while mobile contactless payment is central to NFC’s offering, it is value adds and consumer convenience that will drive adoption

RISE OF THE MACHINES

Mobile gambling has, in a year, gone from strength to strength. Operators are reporting hitting revenue targets a year early and tablet computers are seeing uptake – and spend – soar. Aideen Shortt explores the opportunities this brings

SHOW PREVIEWS CONNECTED SUMMIT: MEDIA & TV PREVIEW CONNECTED SUMMIT: MARKETING & COMMERCE PREVIEW M-GAMING SUMMIT PREVIEW M-SPORT SUMMIT PREVIEW

THE AFFILIATE CONUNDRUM

Despite the rise and rise of mobile gambling to the point that expectations are now that the platform will form 50% of all interactive revenues within the next 24 months, affiliates have been reluctant to get involved. Aideen Shortt reports

CREATING AN OPPORTUNITY…

… scoring the goal: more consumers than ever are on mobile and, as with every other form of content, sport has huge opportunities in this space. Aideen Shortt gives us the highlights

FANS 1, BRANDS 1

BANK BALANCE

While much is written in mobile circles about mobile payments, what do the banks and financial services world see in it and what impact will they have on the mobile industry’s view of how it will all work? Paul Skeldon reports

SUPER SOCIAL JUGGERNAUT

Social media is increasingly the preserve of the on the move mobile user – and this opens up all manner of opportunities for media companies, content providers and more. Aideen Shortt takes a look at where this can be monetised

SOCIAL NETWORKS SAY ‘YES’ TO MOBILE ADS

Paul Childs, Co-founder and CMO, Adfonic takes a look at how mobile social networks are becoming increasingly hot property for mobile advertising

GOING OVER THE TOP

Over the top services are crippling telecoms operators. But they don’t offer consumers the best solution to their communications needs. What is needed is to bring the two together, finds Paul Skeldon

regulars 04 Comment Telemedia connecting everything

06 How the web and social media Opinion: TV

are unlocking new TV revenues

07 OPINION: TELEMEDIA MIG finds out how FMCG brands are viewing connected services

07 OPINION: ADVERTISING

IAB reveals how m-advertising is now booming

08 OPINION: PAYMENTS Find out all about Payforit4 and what it offers

08 OPINION: COMMERCE Why QR codes are the bomb THE AGENDA 10 What the industry’s regulators and trade bodies have been up to

43 DIRECTORY The industry’s only listings of who does what

46 PEOPLE Keeping tabs on the movers and shakers

telemedia issue 30

The true revolution in Telemedia

PAUL SKELDON

comparison put together recently by telemedia industry body AIME shows that PRS microbilling has shrunk, year on year, on the traditional sectors that it once dominated. Chat and dating, psychic and tarot and adult have all seen drops between 2010 and 2011 if you look at PPP’s figures for the UK market. But this, while perhaps a concern to some, is not the whole story: what we see instead is that, overall, PRS use is slightly higher year on year, but it is being used in many different and new ways, in new more mainstream markets. And this is great news for all concerned. It is also great news as it confirms our own thoughts on where the PRS and microbilling markets are going and hence why we have rolled out, here at Telemedia Towers, a raft of new events for 2012 which get underway this month and next that aim to extend this reach of PRS into mainstream vertical markets. This year we are looking at Mobile Gambling, Mobile Sports and Live Events and then running the Connected Summit, which encompasses Media, TV, marketing, commerce and advertising and how mobile and telemedia technology – not least PRS – has such a vital and growing role to play. So what do the AIME/PPP figures tell us? First of all, the sector based revenue figures show that DQ, adult and information services are still the lion’s share of PRS revenues. But the numbers also show that they have decreased between 2010 and 2011 by 13.9, 1.8 and 17.8% respectively. At the same time, however, revenues on PRS from charity, non-phone content, international call services and virtual gifts have grown by 810, 230.8, 132.5 and 135% respectively. But percentages don’t tell the full story. All this huge growers in the PRS sector started from very low bases – charity turning over just £5million in 2010 and a whopping £45.5million a year later, compared, say, with DQ which is still, despite a 13.9% decline, worth £177.4million in 2011. The figures do show that consumer use of PRS has changed – or rather is in the process of changing – and as a billing technology it is becoming something that people are routinely using to things in the name of connected entertainment. And all this chimes with our raft of shows, not least the Connected Summit on May 15 and 16th, where Payforit4 is going to be officially launched. This quasi-PRS billing tool is already being used to pay for wifi on Virgin trains and is a staple of some in app billing, especially in games. Payforit4, with its swanky new graphics and simple to use instruction – and finally some proper branding and some official operator backing – suddenly transforms how consumers will find themselves using PRS. In fact, they won’t know that they are using a form of PRS. They will just be paying for stuff, being to gamble, to book sports tickets, vote on a TV show, buy a digital newspaper or even wifi access to do all of the above. This is the true revolution in the telemedia industry and this spring’s events are set to showcase this to a wide audience of vertical markets.

Make sure you renew your annual subscription to continue receiving Telemedia Magazine AND now you will get 10 issues of Telemedia-month into the bargain! www.telemedia-news.com/signup.html

telemedia issue 30

the small print

COMMENT

DIRECTEUR DE LA RÉDACTION Paul Skeldon paul@telemediamagazine.com ART DIRECTOR Victoria Wren victoria@whangdoodleland.com CONTRIBUTORS & CONSULTANTS Matthew Leach, Aideen Shortt, Sheldon Johns, Andrew Darling, Peggy Ann Salz, Ritesh Gupta, 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 Love you til the end, The Pogues Right in the Eye, The Muffs WHAT WE’VE BEEN AMUSED BY The US Office WHAT WE’VE BEEN FOLLOWING Connected TV WHAT WE’VE BEEN READING ABOUT Apple TV and beyond

Telemedia Magazine is published every six months and circulated in print to 8,000+ qualified readers and downloaded in digital format to 17,000+ requested readers. BUSINESS ADDRESS: Ground Floor, Virginia Cottage, Nash Lane, Scaynes Hill, West Sussex, RH17 7NJ, UK. Web: www.telemediamagazine.com CIRCULATION ENQUIRIES TO: Geraldine O’Sullivan geraldine@wtevent.co.uk

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brought to you by

SIMPLY CONNECT CONNECTING CONSUMERS TO MEDIA, CONTENT & BILLING As more consumers use their telephones, mobiles, tablets, games consoles etc. to interact with TV, print, advertised media content and social networks – the ability to CONNECT is creating a whole new world of entertainment and commerce. This event showcases how innovative services, technologies and solutions are returning ROI by delivering on the key strategic and commercial objectives for a range of creative and technical sectors: • Media Companies & Data Owners • Marketers, Agencies & Brands • Premium Content & Service Providers Platinum Sponsors

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• Live Event Organisers & Retailers • Network Operators & ISP • Technology & Billing Providers Bronze Sponsors

CONTACT – TO BECOME A SPONSOR & PROMOTER Tel +44 (0)1444 831 991 / +44 (0)7711 927 092 • Email jarvis@telemedia360.com, Skype jarvis.todd

The King’s Fund, London 15 & 16 MAY 2012

ConnectedSummit.com

ANALYSIS

What opportunities does the web present for live TV? Broadcasters are increasingly enthusiastic about live TV as they come under pressure from on-demand platforms – including the broadcasters’ own, such as iPlayer, ITV Player, 4oD and Demand 5. Live TV also underpins many large formats which drive the telemedia industry – The Voice, Britain’s Got Talent, Strictly Come Dancing to name but a few – via voting and social engagement platforms such as Twitter and Facebook, as well as emerging secondscreen platforms such as Zeebox and Get Glue.

by broadcasters including Channel 4 and Sky. Here, live web TV shows complement broadcast TV, running alongside or immediately after, promoted via public announcements and on-screen calls to action. For example, Channel 4 has recommissioned E4’s web TV spin-off show Live In Chelsea to complement its successful reality format Made In Chelsea, run as a presenter led online chat show on e4.com straight after the broadcast TV show. Viewers and fans can get closer to the cast than is possible on TV - asking questions via Twitter or influencing the direction of the show via audience polls. The recent decline in traditional telemedia revenues such as SMS and telephone voting – attributed to a combination of audience apathy, industry mistrust and the rise of the web – is forcing experimentation on new platforms such as MIG’s welcome move into Facebook voting on Big Brother and other formats. This rapid evolution in viewer habits and technology is force a change in the way revenues are driven - with sponsor funding becoming increasingly relevant. Web TV shows are new and, to date, have been commissioned by broadcasters out of digital budgets. But now that audience figures are approaching those

telemedia issue 30

of broadcast TV, its becoming increasingly attractive to sponsors. Monterosa has long been finding success with play-along formats such as Million Pound Drop and web TV shows will now take audience participation to the next level, offering a more relaxed regulatory environment and opportunities for weaving audience participation into the core of the show. Will Neale, CEO of Orca Digital, is convinced this is the future: “ShowCaster has proven the market for live web TV across formats including Skins, Got To Dance, Made In Chelsea, T4 Stars and Home For The Holidays - and the next stage is about monetisation. In some cases this will be via pay-per-view shows using micropayments such as Facebook Credits and in others it will be sponsor-funded shows. For example, viewers could participate in a show to win money-off vouchers or raise brand awareness, without being forced to sit through adverts. TV sponsors and advertisers can extend TV viewing times by funding a complementary web TV show.” But, does the web provide opportunities for new live TV market entrants? While the web dramatically reduces the barriers to entry for live TV shows, broadcasters remain best placed to capitalise on the opportunity, provided they are prepared to innovate in bold ways. There is no other media like a public announcement on TV for driving high volumes of simultaneous live viewers. Zeebox – spurred on by its recent investment from Sky – is keen to further augment the TV viewing experience via live web TV shows. Viewers of this year’s Got To Dance live final on Sky One were treated to a live backstage show within Zeebox, offering Chris and Wes’ (last years winners) amusing opinions on this year’s finalists. Publishers are also keen to get in on the opportunities offered. The Sun newspaper is using ShowCaster to run live web TV shows embedded within their site, which it promotes heavily to its print and web readers. Other areas that are starting to experiment

include sports clubs and live music, markets with loyal fan bases who are keen to get closer to the talent. Firing questions at footballers before or after a match – or joining artists live backstage after a gig – are extremely appealing to both fans and sponsors. 2012 will be an exciting year for live web TV and it will be interesting to see which broadcasters really take advantage of the opportunities offered. Channel 4 has made the current series of Live In Chelsea available on-demand via 4oD, the first time that 4oD has ever hosted web originated content rather than content shot for broadcast. Is this a sign of things to come?

ntil recently live TV has been the domain of broadcasters across their traditional terrestrial, satellite and cable platforms, but this is starting to change. iPlayer now delivers BBC’s linear channels – which include live as well as pre-recorded programming – as does Sky Go, with others destined to follow. Official viewing figures for linear web TV are hard to come by, but it’s doubtless far smaller than ondemand. Broadcasters’ platforms are designed for ondemand viewing, so they don’t exploit the interactive and social opportunities offered by the web, instead using it simply as another route to viewers. But a new wave of platforms is emerging to plug this gap, such as ShowCaster, Orca Digital’s interactive web TV platform, which has already been adopted

Opinion Analysis

ANALYSIS

TELEMEDIA

All looking good? M-commerce, payments and marketing are all doing very nicely thank you, finds Velti-MIG’s industry survey

n industry study conducted by Velti company MIG into trends in the mobile sector has found that m-commerce, payments and marketing continue to be the key things businesses want from mobile, while mobile social media is coming up fast on the inside. More than 500 of MIG’s customers participated in the survey, representing brands, agencies and technology providers across multiple sectors including automotive, aviation, charity, retail, energy, oil and gas, FMCG, gambling, government, handset manufacturers, industry associations, insurance, media, broadcast and entertainment, Mobile Network Operators (MNOs), property and publishers. The study found that 23% of the total respons-

es see m-commerce as the main mobile trend going forward in 2012. There is also consensus from retailers with 62 % of this group seeing m-commerce as a strategic priority for their business in the next year. Moreover, beyond applications and HTML5, retailers cite mobile payments in general and NFC (30%) and mobile marketing techniques such as mobile CRM, Augmented Reality and Loyalty schemes (30%) as central to their 2012 mobile strategies. This is supported by 25% of all respondents indicating that mobile payments will really take off, citing NFC and mobile wallets as the driver of this area of the industry. Mobile marketing is also expected to be an industry hot button throughout 2012 with 23%

23% of FMCG brands see m-commerce as the main mobile trend going forward and 62% see it as a strategic priority going forward

of all survey respondents indicating that this will be a significant focus for their businesses going forward. The third main trend will be a growing interest in mobile and social media, in particular how mobile enhances the social experience. 11% of all respondents indicated that mobile social media, in particular Facebook and how people will use it with retail for sharing and recommending and with TV for things like voting (Facebook credits) and consuming related content would be a key driver going forward. This echoes major MIG research findings from 2011, which investigated the deep connections between mobile, TV and social media, in particular how consumers multi-task whilst watching TV and over which payment channels they prefer to purchase participation services such as voting and competitions. This research concluded that interactive events via Facebook are expected to generate $51.7 million (£32.04 million) in the UK in 2012 and $2.9 billion globally by 2016. Barry Houlihan, GM, MIG said: “The findings from our initial customer survey backs up our thinking and we’re not surprised to see m-commerce and payments, mobile marketing and mobile social media top of the agenda for 2012. People want to know what the mobile industry will look like in 3-5 years time.”

Mobile advertising bonanza? Has the world finally woken up to mobile advertising? The latest IAB-PwC benchmark study suggests that it has

with 54% of display advertising now on apps; while 46% of display advertising spend is on browser inventory. Display advertising on mobiles more than doubled year on year, increasing by 186% to £68.9 million (£28.1million in 2010) and a market share of 34% (34% in 2010). In 2008 display advertising on mobiles was worth £14.2 million, so the format has risen fivefold in three years. As the medium matures, growth has been driven largely by standard display formats, such as banners and text links, which were up 196% to £59.4 million. However, the category including SMS and MMS advertising grew by 241% to £7.6 million (£2.5 million in 2010). Mobile video advertising (pre / post-roll) increased rapidly to £0.8 million (£0.2 million in 2010) as brand advertisers invest in new rich media formats. Mobile search was up 145% to £134.3 million (£54.9 million in 2010) and a market share of 66% (66% in 2010). In 2008, search was worth £14.4 million, so has grown by nearly tenfold in three years. Although only launched in 2010, tablets are now an everyday device with more than 4.1 million Britons owning one. As a consequence, the IAB has measured tablet-specific advertising for the first

dvertising on mobile devices rocketed by 157% in 2011, to a new high of £203.2 million, according to the annual IAB and PwC mobile advertising spend study, sparked by a boom in smartphone and tablet ownership, apps, second screening and cheaper data. With smartphone ownership standing at 53% of the UK population, the proliferation of touchscreen technology, 3G, and soaring tablet sales have sparked a surge in interest from brands, especially in the Retail and Consumer Goods (FMCG) sectors, says the study. The rapid take up of apps and social media, fuelled in part by cheaper data tariffs, has created a new generation of ‘dual’ and ‘triple screeners’ – 51% of Britons now watch TV while surfing the internet using tablets, phones or laptops. In response, advertisers are creating ever more engaging and interactive rich media ads ? turning to apps, video and new formats to engage and enhance the mobile experience. Mainstream advertisers are now taking a larger share of spend with Technology, Retail and FMCG performing particularly well. Advertisers have recognised the rise of apps,

time and found that £2.4 million was spent in 2011. Jon Mew, director of mobile and operations at the IAB, explains: “This study proves just how engrained mobile has become within both brands’ and consumers’ day to day lives. With 26 million smartphone owners now in the UK – the opportunities for brands to interact with consumers in a more innovative and relevant way are endless. So it’s no surprise to see mobile advertising continuing to grow at such an overwhelming and encouraging rate.” Anna Bartz, strategy manager at PwC, adds: “Mobile advertising is gaining momentum - with growing opportunities to target consumers with a range of innovative formats, on the web and in mobile applications. The rapid adoption of smartphones and tablets means mobile is offering a compelling new way for brands and advertisers across all sectors to reach people, making it an increasingly powerful platform in multi-media strategies.”

Opinion Analysis

ADVERTISING

Although only launched in 2010, tablets are now an everyday device with more than 4.1m Britons owning one: tablet specific ads were worth £2.4m in 2011 telemedia issue 30

ANALYSIS

Opinion Analysis

PAYMENTS

Four Things you need to know about Payforit 4 Chris Newell, CEO of ImpulsePay and co-leader of the AIME Payforit Working Group explains why Payforit4 really is a mobile payments game changer

ayforit is gaining more and more traction as a mobile payments service. Consumers love the clear pricing, MNOs support it and regulators state that it sets the gold standard for consumer clarity and protection. This recognition has caused an increasing number of blue chip companies to use the payments scheme, from rail operators selling on-board wifi, to online banks taking their initial deposit by mobile. The Payforit Working Group, established by telemedua industry body AIME and led initially by Rory Maguire of Three UK, has worked hard with the mobile operators to make crucial improvements to the screen flows and designs, to cater for modern handset and web technologies and to take on board many of the things that have been said about the payments technology in it previous iterations. And the result is here. Payforit Version 4, already launched to the Payment intermediaries, will be launched to Merchants and the public on May 15th at Telemedia Magazine’s own Connected Summit in London. But to give you all a sneak preview of what is on offer, we’ve outlined four key aspects of Payforit 4 that should help to further drive awareness and promote take up of the service.

1. Improved Payment Screens

Payforit 4 has adopted a very clean look and feel, with a ‘less is more’ attitude to the design of the new screens, more in keeping with modern online design ethos. Different versions of the payment screens have also been created for different purposes, more about this below. Of course the main aim of these changes is to improve merchants’s usage of Payforit by increasing the conversion rate of users. The Payforit

Working Group has looked at consumer feedback and drop off statistics to address the main issues of previous versions. In testing, the new screens showed a significant increase in conversion rates.

2. Single Click Billing

Probably the most exciting development within Payforit 4 is the introduction of single click billing for the web. When consumers make a Payforit purchase using the traditional web checkout process, merchants can now include a check box that will approve single click billing for that service by that consumer. This means that subsequent purchases on the same site (after the consumer has logged on) can be made with a single click, with no other pin codes or passwords required. Conditions are set on how long Single Click optin lasts and how much can be spent before they need to opt-in again, but it means that Payforit now allows for online repeat visit purchasing to be done with ease.

There are two key advantages to this – the first is that consumers no longer have to be taken away from the merchant’s site, so there is less risk of payment drop off; the second is that the merchants can start to bring their own branding and styles into the payment process. This is another significant improvement over Payforit 3 that will help merchants increase conversion rates.

4. An ongoing commitment to Payforit

Despite all the changes, amends and improvements, it’s important to remember that Version 4 is primarily about building on the previous accomplishments of Payforit. Payforit has proven itself to be a system that works well for operators, merchants, regulators and most importantly for consumers. It’s now being adopted by more and more companies and is being used for an increasing number of online transactions – and those numbers are growing each and every month.

Payforit4 features improved screen flow designs to cater for modern handset design and the increasing use of the web and web-apps 3. HTML5 Embedded Payments

Another great development and one that is a major talking point is the ability to properly embed the payment screens within the merchant’s web page using HTML5. Whether it’s a full sized browser game, or a mobile web app, Payforit now offers a suitably sized payment screen for the task.

PSMS as a charging mechanism for online services has had its day. The Payforit Working Group will to continue its hard work on developing and improving the current Payforit framework, along with the UK Mobile Operators and based on feedback from APIs, merchants and consumers.

2011 was the year of the QR Code Bob Bentz, president of Advanced Telecom Services takes a look at how QR codes have come to be a key part of the m-commerce and m-marketing mix

T 8

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SnapTag, and EZ Code made up just over 1% of the use in print advertisements. Businesses of all types are utilizing 2D barcode technology, although retailers lead with 21.9% of the overall use of bar codes. It would make sense that technology is the second most used category since those scanning bar codes are likely more tech savvy than the average person. Interestingly, automotive was just the seventh top category of use of 2D barcodes. For 2D barcodes to continue growing, it is important that they offer relevant feedback

that is of value to the scanners. General commerce and branding are important, but leading the consumer to a value-added features such as a video or mobile coupon is a valuable use of 2D barcode technology. Unfortunately, some advertisers just don’t get it when it comes to using 2D barcodes. Over 40% of the QR Codes tracked led to brand home pages. Leading a consumer to a home page is usually not going to result in great customer satisfaction, especially if that home page is not optimized for mobile.

he percentage of print ads containing QR Codes showed growth from below 1% of all print ads in January 2011 to in excess of 6% of all advertising in December 2011. According to a study of 2D barcodes by Competitrack, while a variety of 2D barcodes were used in the print advertisements, the vast majority (87.8%) of those utilized in print were QR Codes. The Microsoft tag, a multi-colored tag using triangular shapes, was second most popular with 10.2%. The JagTag, DataMatrix Code,

Opinion Analysis

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INDUSTRY AIME AIME elects new board to build on growth in micropayments AIME has announced its new board following elections by its membership of 80 companies in the micropayment sector. The new board includes two new representatives: Andrew Burnett, Head of Operations, ITV Interactive & ITL and Chris Newell, CEO, ImpulsePay. Rob Ellis, Managing Director, Telecom Express; Jeremy Flynn, Director, Orca; Rory Maguire, Head of Payment Services, Three; Richard Mann, COO, Mobile Interactive Group; Phil Davies, Director, Commercial Development, OpenMarket; and Graham Pottie, COO, BT Agilemedia have been reelected for a further two year term. They join serving chair, Edward Boddington, CEO, of Harvest Media Group and Toby Padgham, AIME CEO. Sally Weatherall, Managing Director, Strategic Brief will continue as an advisor to the board. Interactive Broadcast AIME met with PhonepayPlus to finalise AIME PTV Best Practice Guide for Social Media using PRS and agreed on definition of a Children’s service. Ground work undertaken by the group has also been carried out on voice shortcodes for use in broadcast.

Voice Services AIME members have been surveyed on ‘future needs of Higher Rater PRS and the collated results are being submitted to Ofcom for consideration. Meanwhile, AIME has also finalized the business case for £30 spend cap review of psychic services and has submitted them to PPP. Regulatory Updates • Discussions on Social Media Promotions Guidance & Definitions of a Children’s Service • Agreement for AIME & Pp+ Regulatory Process meetings to be re-established • Other agenda items included: Prior Permission Value Chain visibility, Number Checker/Registration for Shared Short Codes,PhonepayPlus Research, PhonepayPlus Consultation, Psychic £30 cap • AIME representation at forum & networking • PhonepayPlus presentation on Annual Market Report • Industry also updated on PhonepayPlus Malware Summit

PPP New Chairman PhonepayPlus has today announced that Andrew Pinder CBE, the former Government e-Envoy, will succeed Sir Alistair Graham as Chairman of PhonepayPlus with effect from 1st June 2012. Pinder has a long and distinguished career in both the private and public sectors. After 18 years in the Inland Revenue, where he became Director of IT, Pinder moved to the private sector, becoming Director of Operations and Technology at Prudential Corporation before joining Citibank Investment Bank as Head of European Operations and Technology. Levy and registration scheme fee Following consultation with industry and approval from Ofcom, PhonepayPlus has confirmed its budget for 2012/13. We expect the total cost of PRS regulation in 2012/13, covering PhonepayPlus’ core activity and the Registration Scheme, to be approximately £4,087,000. The proposed PhonepayPlus budget for levy-funded activity in 2012/13 is £3,742,183. In cash terms, the budget is 1.5% lower than the current year. Following significant budget reductions this financial year, the budget for 2012/13 means that PhonepayPlus will have reduced its like-for-like costs by nearly 20% in real terms over two years.

ACTION4 SNR Denton joins Action4 SNR Denton, a client-focused international legal practice, has joined Action4. The firm has a particular focus on the Technology, Media and Telecoms sector and advises companies across many different platforms, including mobile and fixed line telephony. Alex Haffner, a senior associate in SNR Denton’s London office will be Action4’s main point of contact. Haffner is a regulatory and commercial lawyer with significant experience representing both aggregators and information providers in their dealings with the regulatory authorities, in particular PhonepayPlus and Ofcom. Haffner comments: “I am delighted that SNR Denton is joining Action 4 and look forward to meeting other members and participating fully in the excellent work which the organisation does in representing the premium rate industry”.

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INDUSTRY MEF Newly elected MEF EMEA Board MEF has announced the results of its 2012 EMEA board elections with Colin Yeh, Head of Group Product Development QTel Group (Qatar) elected as EMEA Chairman. Ben Carter, Head of Mobile Services Atos (UK) and Emma Kaye, Director, Mira Networks (South Africa) were also voted in by the membership as co-Vice Chairs. MEF reveals Top 10 Predictions for 2012 In 2011, MEF accurately forecasted that the proliferation of Smartphones would drive mobile consumer engagement with a number of other predictions also coming to fruition. MEF’s success in anticipating and addressing key industry issues, combined with its increased representation of the wider mobile content and commerce industry, place it in a strong position to forecast the top mobile industry trends for 2012. 1. NFC: 2012 will be the year that the industry ‘gets’ NFC and there will be increased investment with some spectacular trials, but it will fail to have a significant commercial impact. 2. Security: Regulators worldwide will be brought face-to-face with the security challenges of in-app billing, and new regulations will emerge. 3. Privacy: As Smartphones and mobile connected devices continue to become more widespread, increasingly complex and diverse attitudes towards privacy will cause chaos in the industry. 4. Nokia/Microsoft Alliance: The Smartphone landscape will evolve into a three horse race, accelerated by local focus in high growth markets. 5. HTML 5: Operators will face yet more capacity challenges arising from the surge in the use of HTML5 and the consequent stimulus to audio visual content. 6. SMS: Brands, content owners and retailers will retain SMS in their mobile toolkit to further engage consumers in content and commerce. 7. Games: 2012 will see mobile connected devices challenge consoles as the platform of choice for highend gaming. 8. Mobile Payments: Carrier wallets and screen based payments will start to supersede PSMS in Atlantic markets. 9. Apps and multi-screen: The maturing mobile apps ecosystem will extend to infotainment in cars and the living room in 2012. 10. Geo-social: Location-based social commerce will replace social networking as the focus for mobile innovation by retailers and brands.

INMA

MMA

INMA World Congress 06-08 May 2012 Los Angeles, United States The 82nd Annual INMA World Congress will bring together a global lineup of speakers for a global audience that explores emerging strategies to grow revenue and brand of newsmedia companies. Special focus will be on new revenue opportunities and how to implement a multimedia culture to gain maximum benefit from the synergies from multi-media.

Final privacy policy guidelines for mobile apps The Mobile Marketing Association (MMA), the leading global trade association for the mobile industry, has announced the release of its finalized MMA Mobile Application Privacy Policy, the first guidelines document of its kind that addresses the core privacy issues and data processes of many mobile applications. The completed guidelines incorporate industry input received during a public comment period, October 17-November 18, 2011. The guidelines address key issues including: • Annotated guidance on core privacy principles and consumer-friendly language for developers to consider using • Ways to inform users on how data is obtained and used • Guidance on security and confidentiality of information

INMA Seminar: Innovative Advertising for Your Portfolio 14-15 June 2012 Berlin, Germany INMA will conduct a seminar titled Innovative Advertising For Your Portfolio June 14-15 at Axel Springer headquarters in Berlin. Starting with a dinner at the Journalist Club overlooking Berlin, the seminar will include a keynote by Andreas Wiele, the Axel Springer board member in charge of the Bild Group and its advertising business. Programming will focus on emerging innovative advertising solutions, both digital and print.

Google’s Neal Mohan joins The Mobile Marketing Association global board of directors The MMA has announced that industry leader Neal Mohan, vice president of display advertising for Google, has been named to the MMA Global Board of Directors. Mohan is responsible for Google’s display advertising business, across desktop and mobile devices. Industry-standard guidelines for smart phones, feature phones and tablets The MMA has released an updated version of the MMA Universal Mobile Ad Package. Created with MMA members, with added input from the industry gathered during a public comment period, the new, 2.0 version makes it easier to create, buy and sell mobile ads for smart phones, feature phones and tablets.

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

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PRINT MEDIA

Ever decreasing

circulations Newspaper sales are in decline as more and more people go digital, but selling that digital content is proving tough. Is interaction the answer and what is in it for the telemedia business? Matthew Leach reports

has 119,255 digital subscribers, while The Sunday Times has 114,000. The Financial Times has been one of the success stories in the battle by newspapers to find a profitable digital strategy. The FT offers a mixture of free and premium content and, not afraid to forge its own digital path, in 2011 it launched a mobile browser-based he death knell of print media has been app to access customers using all mobile devices. This sounding for some time now, with everallowed the FT to break out from Apple’s walled garden decreasing circulations and advertising after Apple introduced a 30 per cent levy for publishers revenues making for bleak reading. But charging subscription fees for IOS apps. for some the decline has paved the way In November 2011, the FT.com had more than for the brave new world of digital to step 4 million registered users and 250,000 paying customin and save the day. ers. However, for some analysts, this strategy will only The LA Times is the latest to join a band of print hasten the print media’s demise, insisting the internet newspapers, including the Wall Street Journal, New York Times, and nearer to home, the News International is about connectivity and that a paywall goes directly against this. broadsheets (The Times and The Sunday Times) and For others in the newspaper industry, charging for Financial Times, who charge for online content. The online paywall for the News International broad- content is a prerequisite for survival. James Moroney, publisher and CEO of The Dallas Morning News says: sheet titles went up in June 2010, and the company “The most valuable asset we have is the content we showed confidence in their somewhat risky strategy originate, as an industry, therefore why do we keep diswhen they recently announced they would double the counting it as if it is damaged goods?” price of their digital pack, which includes access to its Mark Challinor, Director of Mobile at Telegraph Media websites and Smartphone and tablet editions, to £4. Group, has some sympathy for this viewpoint. “The According to figures published in February, The Times industry as a whole is giving away a lot of stuff, but journalism is a valuable resource. So the challenge is how do we monetise it, as well as give value to the For the print industry to make a serious attempt to bridge the digital gap and audience and advertiser. The tricky part is getting peofind new revenue streams, a frictionless payment system is crucial. OpenMarket ple used to paying for content,” he says. offers aggregator services to harness transactional power using mobile, using their Telegraph Media Group, whose core brand is The API gateway to launch services and making print media interactive. The comDaily Telegraph newspaper, has been striving to find pany’s Senior Market Development manager, Oisin Lunny, insists that despite the the right mix between its print and digital offering, with increased methods of payment open to consumers, PSMS is still king and mobile some success. The company launched its iPad app in payments will continue to grow. October 2010. The app was free for six months, through He believes that: “Premium SMS works on every phone and for that reason it is the first choice, there are other solutions such as web payment, in app, direct opera- paid-for sponsorship. During that time the company contacted readers through the app database as well as tor billing even with subscription and the penetration this brings, but you cannot focus groups, and with the help of analytics company ignore SMS for interactivity and premium SMS for payments. Platforms such as OpenMarket’s CMX2 can also combine PMS payment mechanics with mobile CRM Webtrends, to find out what they liked in terms of design and content, what they would pay for, and the tools.” times of day when the content was consumed. Lunny insists that the lines of print/online/mobile will become increasingly The company was then able to set up its business blurred, but predicts there will be opportunities for companies to increase interacmodel, Challinor explains: “Of the Telegraph readership, tion, which in turn will increase the chances of tapping revenue streams. 56 per cent are seven-day a week subscribers, so we He says: “Mobile payment is increasing at a significant pace this is because already had a high base of loyal readers, so our aim was internet access in the UK is now primarily from mobile devices, and consumers are more comfortable than ever accessing and paying for content from their mobile to keep them loyal. Now we charge £9.99 per month for the app but subscribers get it for free.” devices.”

Show Me The Money

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PRINT MEDIA

So What’s In It For Telemedia?

Will Douglas, Business Development Manager of Xonadu, whose flagship product is premium SMS peer-to-peer dating service, has words of encouragement for those telemedia players who fear the worst for print media, insisting: “Despite the decline in figures we still get most of our revenue from print advertising. However, we want a mix. The need for a digital proposition also brought us on to the idea of reselling. We offer a white label offering to companies, which is promoted online, through Google adwords and the organic Google listings. “There will always be an offering in print, while the 18 to 25-year-olds are turning to Google to find adult chat, there will always be a traditional user that sticks with print. The proliferation of Smartphone’s will help our service in that it will enable people find our service on their mobile device. There will always be users who want to make contact.” Advertisers, however, are increasingly waking up to the fact that with the increased adoption of Smartphones, currently standing at around 50 per cent in the UK, with some brands using a combination of print media and cutting-edge technology, such as augmented reality. Step forward Blippar, the first image-recognition phone app aimed at bringing to life newspapers, magazines, products and posters with augmented-reality experiences and content. Blippar joined forces with advertising agency, Iris, to promote Sony’s Xperia S, its first Smartphone, without Ericsson, on the Metro newspaper’s cover wrap advert. The company’s co-founder and CMO Jess Butcher said: “Sony’s Xperia is competing with the iPhone, so the company was keen to have a big impact. Sony wanted to get across the phone’s imagination and creativity. The image-recognition-augmentated-reality brings the advert to life. It needed a creative execution – so leading edge technology was the first driver and enhanced creativity was the second.” “Using the AR phone the brand explodes out of the phone, has YouTube functionality and highlights what is possible through the phone, using the high-impact Metro wrap. The campaign was more about educating the consumer on the product, on the inside pages you have a call to action where you can tap and get through to Xperia’s mobile webpage.” Butcher insists that although this particular campaign was more about impact and product awareness, the fact that the individual has to engage with the app and, in turn, the brand makes it a ‘game-changing’ proposition. “We have more direct-response applications – blip to buy, where you can instantaneously buy from print media or a flyer. So direct response action is happening as well as brand engagement. It is game changing in the way consumers are actively choosing to spend five minutes with your brand. If you have 10,000 people who do this, they are much more valuable than 100,000 people who blink past a poster. You cannot put a price on that engagement.” Direct engagement with the customer appears to have paid off, the app has had a meteoric rise in terms of adoption, and although not all are paying for the app directly (ie the newspaper subscribers) the increased number of eyeballs on the product has made advertisers take note. Challinor adds: “The ad impressions have increased dramatically from May 2011 when the iPad app had 300,000 ad views delivered, today we have 2.5 million. This means that we can guarantee advertisers a set number of ad views per month and still add more advertising slots. We are trying to be the Rolls Royce not the Ferrari. What we are trying to do is be very good at doing the simple things right.” Olivier Milcent, CMO of technology company, Momac, approves of this type of measured approach by publishers. His advice to publishers is to “keep it very simple and focus on the main insights: speed, a digestible front end and offline reading. Focus groups and research marketing is very important to identify improvements, personalisation, innovative front-ends and the right pricing for premium offers. The key is to be on every platform, not just iOS,” he says. Buoyed by its success, Telegraph Media

Group recently launched its new Android and iPhone app with new features such as ESPN goal allowing subscribers to view the Premier League action for £1.99 a month, but providing it free to their newspaper subscribers, thus finding new ways to engage with its loyal audience base. But for some, it isn’t all about creating the latest app or multimedia experience to keep your readers interested. It’s also a matter of bridging the gap between print and digital in a complementary way. Graham Halling, Digital Business Director of Telecom Express, a provider

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PRINT MEDIA of interactive services and solutions for media owners and brands, believes traditional print products are underutilised as an interactive channel. He says: “There is no such thing as a digital audience and a print audience, they are one and the same. Audiences are being polarised by publishers. You can make seven times as much from a customer accessing print media rather than the digital space. There is too much taking readers away from the core product, which could result in the reader folding the newspaper up and putting it away. The audience likes interaction with print, but things like QR codes, are moving people into digital spaces – it has become a replacement service rather than a complementary service.” Telecom Express offers technology that lets the reader respond to features, editorial or advertising copy instantly from their handset, so interaction can be done without having to leave the page. Halling said: “We offer a self-contained digital pay-off with an overlay option, which gives people the ability to email, SMS, voicecall and make their own choice as to where they end up. It is a release mechanism, a post-production process that can involve CMS, video release, geo-location and social network sharing.” Halling insists that in the media companies’ clamour to monetise the digital world there is a very real danger of ignoring the very element that made it a success in

Going Social

the first place – its core offering. “The opportunities lie in looking back to your core audience which is already monitised rather than the digital audience that hasn’t proved itself and hasn’t paid its way,” Halling says. “We need to bridge the audience gap. We need to refocus and repurpose the technological side of your business back to your core product rather than demarcation.” Halling believes that “Apps are important but the reality is that SMS is still the most used, otherwise newspapers and TV companies would be running less SMS services. You can make entry easier with short codes or text a word and hold your Smartphone over the content making it frictionless.” Despite some publishers’ optimism, figures from the US do not bode well. Pew research shows that Smartphones and tablets make up 27 per cent of Americans’ primary news source. Phones, however, have the biggest share of this percentage, which is worrying considering the lack of on-screen advertising space. The news business in the US, like its UK counterparts, are finding it extremely tough going because web advertising revenue is nothing like the ‘old media’ money. Mobile is a fraction of web: the approximate conversion rate is $100 offline = $10 on the web = $1 in mobile. That is not to say this worrying forecast will be replicated in the UK and Europe.

Engagement has been the buzzword for the print industry for some time now and it is usually followed by the words ‘social media’. Although the more traditional publishers may see digital as a threat, social media can provide opportunities to engage with their readership in a much deeper way than was ever imagined. With the proliferation of online content some publications have embraced the idea of cooperation and external content curation. Newspapers and magazines understand the need to be seen as experts in their field, so it is about more than just tweeting their own content. Editors are occasionally retweeting external links they find relevant to their readers and use Twitter lists to suggest accounts worth following. One of social media’s new kids on the block is Pinterest. This is a virtual pinboard for displaying, organising, planning collections of information on other web pages like a scrapbook. Digital business analytics company, Comscore, says that in January Pinterest was attracting 11.7 million views a month in the United States. However, controversy surrounds Pinterest’s use of copyrighted content. The site allows users to re-post publishers’ material including photos, which could have legal implications. But if media owners and publishers could stomach doing a deal with companies like Pinterest, which allowed reuse of their material, they could produce excellent traffic figures. Pinterest’s overwhelming female audience (83 per cent according to DoubleClick Ad Planner), could also be a big draw for advertisers, as women are the households’ primary purchasers. Other ways publications are increasingly engaging with their audience is by offering expertise in real time. For example, The Daily Telegraph’s chief football writer, Henry Winter, routinely takes part in web chat in which online readers can post questions which he answers, driving traffic to the site. Magazines’ and newspapers’ online offerings can also enhance pieces of writing with picture galleries, YouTube clips, polls as well as readers’ comments. This valuable reader feedback offers editors a chance to gauge its readership’s views on certain subjects, leading to follow-up articles, opinion pieces, and in some cases blogs that will stir the readers’ emotions enough to engage with the brand. Monetising social media has always been tricky with banner adverts the most common form of digital monetisation. Sponsored Twitter backgrounds and tweets, as well as sponsored Facebook messages and landing tabs could be something for publishers to consider when they try to squeeze out the digital pounds from large social media audiences. Social media is something the Telegraph Media Group is taking very seriously. Mark Challinor, the group’s head of mobile explains: “We are launching a new Facebook page and a Facebook app in which people can give their opinion on things. Social media is more about behaviour, brands have to tap into the behaviour giving them a product that they want rather than a product that they think we want. We need a seamless service on multiplatforms.” Social media is not for everyone, however, Xonadu’s Douglas said: “In theory we do embrace social media. We do have Twitter accounts, Google+ accounts and Facebook pages for our offerings but it is very difficult to tie in with social media, because compared to say Guardian Soul Mates, text to text chats are more of a closed community. They don’t always want their profile on a website.”

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Changing channel C

onnected TV’s much-heralded ‘revolution’ of past years has been replaced by a more understated ‘evolution’ for 2012. A rise in smartphone and tablet sales and the increased use of these internet-enabled-companion devices during programmes is encouraging interaction around brands, using social media networks, and offering very real opportunities to generate revenue in the short and long term. For the time being, interactive television is still dominated by reality shows such as Channel Five’s Big Brother and voting-audition programmes like ITV’s X-Factor. This content continues to pave the way in terms of the number of viewers ringing in to place their vote or have their say. Traditional competitions like The Gadget Show’s electronic goods offering and win-a-holiday type competitions on morning shows like Daybreak, using premium SMS and IVR, still provide impressive returns for the broadcasters and the telemedia players they are partnering. Edward Boddington, CEO of Harvest Media Group and chairman of AIME, explains: “the beauty of IVR and SMS is that it is simple, you don’t need to download anything or go online, but as smartphone adoption increases the different methods of payment will grow. The introduction of voice short codes have provided greater transparency in terms of price for the consumer, and building and maintaining that

trust between you and the consumer is key. “Traditional IVR and premium SMS is where the money is being made, but AIME members are looking at broadening their services – it is all about micropayments, using Apple iTunes, Google, Paypal. The more payment methods the better.” Traditional interaction may still be king, but the industry recognises the growing potential of using social media to engage with viewers in a more subtle and immersive way. With the rise in smartphone adoption and tablet sales, viewers are increasingly ‘two-screening’ – using a complementary web-enabled device while watching their favourite TV show. This phenomenon, along with ‘chatterboxing’ – talking on online social forums about the programme they are watching – has opened up a whole new world of engagement and possible revenue streams. Social media is by its very nature fuelled by television shows, it is the equivalent of standing around the water cooler on Monday morning discussing what went on the night before. In turn social media drives viewers back to the TV shows, and can, in some

TV is now a connected medium, but it has gone beyond voting on TV shows and now involves social media, gaming, betting and a lot more besides. Matthew Leach takes a look at how the channel has changed and what opportunities it offers to telemedia companies

telemedia issue 30

TV cases, help some people to discover a TV show. The power of social media has not been lost on Channel 4 who recently announced the launch of 4Seven, a channel that allows viewers to recap on Channel 4 shows that have created the most online ‘buzz’ over the past week. What is interesting is that the broadcaster will carefully monitor the social media networks and online communities built up around the various shows, and use what is said to influence the look and feel of future shows. Channel 5 is another good example of a broadcaster who has tapped into the popularity of social media and is maximizing its brands potential through it. The broadcaster introduced the technology allowing viewers to buy votes using Facebook credits (priced at 6.5p each with a minimum purchase of 65p) for its Big Brother grand final in November 2011. It seems to be working, in February Channel 5 revealed a big increase in the number of votes for ‘Celebrity Big Brother’ (CBB), between its first and second series. According to the broadcaster during the three-week series of CBB in January, fans voted 700,000 times, with over 30 per cent using the CBB Facebook app, an increase in the number of votes by around 300,000 compared to last year’s CBB. Pasa Mustafa, director and founder of East London Productions who worked on Channel 4’s ‘Million Pound Drop’, says: “The different online devices mean viewing habits are quite different, two-screen viewing means people who don’t vote can still tweet to their friends. A lot of that has to do with ‘guilty pleasure TV’, for such programmes as ITV’s ‘The Only Way is Essex’. They are not typical viewers, who love the characters of the show, they love to hate them, the second screen and social media provides a good platform to express themselves.” However, Mustafa insists to maximise potential

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Second screening facts and figures

There has been no shortage of research done on the subject of ‘second-screening’. A recent study by BBC’s TV licensing organisation revealed one in four adults (26 per cent) had commented to others via social networks, such as Twitter and Facebook or online forums about a TV programme, this percentage rises to 44 per cent among those under 35. In fact, rather than diluting the importance of live TV viewing the trend of “chatterboxing” has done the opposite and has driven audiences back to programmes. In addition an ICM poll states 24 per cent viewers under 35 would rather watch programmes live than catch up, for fear of social media spoilers (viewers announcing the results of shows on Twitter or giving the game away in online forums). viewer interactions, broadcasters/brands/apps developers must hit as many platforms as possible. He said: “Building apps for different devices is not cost-effective, but there are software service platforms out there that you can upload the code in a designated format and it spits it out in eight different formats for say Samsung, Phillips, Google TV.” Zeebox, a company that specialises in allowing TV viewers to socially interact and chat using Facebook and SMS, understands and is addressing the problems of apps formatting. Anthony Rose, Zeebox co-founder and CTO said: “Spending time and money creating an app for each programme, and for viewers having

TV to find and download an app each time they change channels isn’t sustainable or scaleable. Zeebox provides a plug-in architecture that allows broadcasters and programme makers to provide an enhanced experience.” But what of the Connected TVs (CTVs) themselves? We were promised the tipping point would be reached after the Christmas and January sales, but adoption remains around 10 per cent. Mustafa insists there has been a big adoption of CTV, but “we are still waiting for people to plug them in.” Recent announcements from Samsung could see greater adoption, or connection, of CTV. The electronics company revealed it would be using its own proprietary platform and would involve gesture-recogniton software, similar to Kinect, as well as many other content options. This summer’s sporting extravaganza, Euro 2012 and the Olympics in London, could also provide an opportunity for CTV uptake, with viewers turning the live action into social events. This could tempt viewers to upgrade their TV set or, at the very least, plug in their connected sets. Despite the fixation on CTV and what it can offer, research by Thinkbox in February, revealed that online activity around TV content occurs on a companion internet enabled device. TV is generally a shared pastime, however logging on to your Facebook account is more private and is likely to done on a personal device, such as a tablet or mobile device. Rob Weisz, VP of Sales at Mobile Interactive Group, explains: “A television in the living room remains the best device for consumption of video content. It is also a great way to communicate with potential customers, but not necessarily engage with them on a two-way basis. Although connected TVs do offer potential here, the communal nature of traditional TV viewing does not lend itself to personalised experience. However, TV can be used to promote complementary content on companion devices.

The gamification of TV

TV is the best box to consumer some content on, but it is its role in complementary content that TV app developers and broadcasters are putting more time, thought and resources into, in an effort to find the ‘killer TV app’. Many of the more innovative offerings are real-time apps for companion devices, providing a great way to get viewers to interact with the brand, while the show is on. One such app, The Walking Dead, developed by Red Bee Media, is based on the American TV drama about zombies, currently being shown on FX (UK). Steve Plunkett, Red Bee’s Director of Technology, explains: “The Walking Dead brief was to create anticipation and drive interest in the second season and engage directly with the fan base in a forum moderated by the TV companies, by giving the fans something special. “Our aim was to provide gamification around the TV show. One problem is that you can be almost too clever – the second screen can distract from the TV programme, so we set out goals from the start asking which zombies will be killed with what weapon and asking users to set their predictive kill count. The audio microphone picks up the TV audio and knows what episode you are watching, as the characters are killed it shows up on the app which character was killed and what weapon was used. There have been similar play-along games, such as game shows, which are interesting but The Walking Dead is a regular drama so to create an app that works it has to be immersive and you must know a lot about your fan base. “The free app creates a very symbiotic relationship between the app and the TV programme. We are five weeks into the show and on the first night we had 4,000 downloads, week two we had 20,000 and on Friday night we had 62,000, which is pretty good for a UK-only app. Over 300,000 games have been played along with the show,” Plunkett says. Plunkett reveals the app feedback has generally been positive but the ones that gave a poor rating were also interesting. He said: “One gamer said he was disappointed because there weren’t many kills in the show, this allowed the production team to re-edit later episodes to put more in.” Increasingly we are seeing web addresses and Twitter hashtags added incorporated titles and presenters highlighting interactive SMS and Facebook as well as value added features within the show.”

Name of the game Gamification of TV shows provides a great opportunity for broadcasters to interact with their customer and provides another vehicle to drive the audience back to the TV show. Million Pound Drop presenter Davina McCall’s continual reference to the online game while the TV show is being aired not only makes viewers feel engaged, but the fact that the viewer can win a chance to appear on the show keeps them interested in the television programme as well. “There has to be a call to action and Davina has the gravitas to point back to the play-along game and make people sit up and take note. It makes those playing along feel part of the show, not just some gamer,” said Mustafa. telemedia issue 30

Taking a bite of the Apple?

Apple may have taken a big bite out of the personal computer, digital music and mobile communication markets in recent years, however the jury is still out on its television offering. Version three of Apple TV’s set-top box launched in March to mixed reviews, but there is a general belief within the industry that an integrated Apple television monitor will surface before the year is out with the company exploring the possibility of offering TV channels as apps. Graham Halling, Digital Business Director of Telecom Express, however, is unsure whether Apple TV will have much of a direct effect on the telemedia industry. He believes that “Where their effect will be huge is on the content play and consumer behaviour around content generally. Consumers could buy just the programming they want and treat traditional broadcasters increasingly as content aggregators. They could even create content themselves to be shared across narrow and broad social networks and their Apple TV boxes. “The initial challenge will be positioning the box and the service as so much of the target market in the UK are already paying for their TV content through SKY, Virgin and the like. Once they can get the story across that those monthly subscriptions are largely a waste of money (with most consumers accessing less than 15 per cent of their available inventory) then Apple TV could become the conduit that lets consumers compete with big media companies in aggregating their own content. At this point we might see a major shift in the TV landscape.” The TV landscape is constantly evolving, with or without Apple, and with this evolution companies must continue to provide innovative and easy-to-use mechanics and engagement vehicles for its viewers. The use of social network credits for voting, full-on viewer participation in live TV programming, self-publishing platforms for content and two-screen content, as well as gamification around the shows, will all result in increased engagement with the brand – which can only be good news for broadcasters, advertisers and the Telemedia industry. The television industry has woken up to the fact that viewers are more than just fans of the show but are influencers and ambassadors for the brand. In the past the television industry might have had a tendency to slightly sneer at the super fan, now they are treated like kings. However, using people as influencers and giving them the right social networking tools can be really powerful in terms of marketing. Opportunities to monetise and gather data, which can be more valuable to brands and advertisers in the long term, have been thrown up by this deeper engagement with the brand, brought about by real-time apps and social media. Red Bee’s Plunkett says: “We can capture key strokes on an tablet, using data capture on our platform behind the app. For so long, small BARB panels have provided us with data, but is based on assumptions and you couldn’t be sure who is watching the adverts. On second screen, we can search who watched the adverts, we can fingerprint advertising, and measure spending behaviour. The data potential is very exciting and very powerful. The trick is to capture a lot of information, even if you don’t know whether it will be useful at this time, making it future proof.” A recent form of data mining which has emerged with the increase in Twitter analysis companies is ‘sentimental analysis’. This can ascertain how many viewers are enjoying the show by analysing Twitter or Facebook. Mustafa explains: “Companies like Zeebox aren’t mak-

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ing data public but are capturing a lot of it. The gap in the market is not only to track numbers but also to track sentiment.” Social media surrounding TV programmes can be monetised but businesses must be in it for the long haul. Mustafa adds: “With ‘Million Pound Drop’ – the play-along game created a lot of buzz on Twitter and it started trending around the world, this is great from an international sales guys’ perspective when they are selling formats because there is already that buzz and potential audience. This buzz can, in turn, feed the TV ratings and provide extra ways for the brands to monetize.” Channel Five’s most recent CBB gained sponsorship from broadband provider Plusnet, and 888.com did a licensing deal to create ‘Big Brother Bingo’, while Coral Bingo was the show’s live odds partner. However this type of commercial savvy seems to be the exception rather than the rule. Mustafa believes broadcasters are not incentivised enough to maximise these opportunities, but are “stuck in a cycle of advertising and commissioning, and are not focused on exploiting the opportunities.” According to Plunkett the financials are still heavily skewed towards advertising, but there is other opportunities for revenue streams such as: product placement, direct payment to buy the app, or paying for increased functionality (typically through iTunes), which he says

Sentimental data analysis can ascertain how many viewers are enjoying the show by analysing Twitter and Facebook. Companies like Zeebox are collecting a lot of data “provides an almost frictionless payment mechanism”. Plunkett adds: “Targeted advertising during the ad break or subtle product placement, or the offer of relevant rewards for watching adverts are other ways to make money.” However this type of advertising is best served by providing contextually-linked products to the second screen. After all the consumer has a device in their hand that can make transactions at the touch of a button.

MEDIA

The connection is made The Connected TV, Media & Live Events Summit 2012

e live in an increasingly connected world, where digital tools online, on smartphones and on tablets are making the media, entertainment, TV and live events a whole new experience for consumers. And while this tech is changing how consumers interact with media, so media brands are discovering that new revenue streams can be opened up through these interactions.

And that is what the Connected Summit 2012 aims to do: to put media and entertainment brands in front of the experts from the telemedia industry that can help them find exciting and lucrative ways to monetize these interactions – and make the interactions ever more exciting to users. In many ways you could look at it as ‘Telemedia Magazine Live’, but really it builds on the ideas in Telemedia Magazine that everything is, these days, connected and telemedia sits at the heart of that. So, what can you expect from the event?

15-16 May 2012

The King’s Fund, London ConnectedSummit.com

DELEGATE PROFILE

CONNECTED MEDIA AND ENTERTAINMENT

REINVENTING PRINT MEDIA AS A 360º BUSINESS ACROSS PLATFORMS

New Revenues from traditional ideas – from PRS services in newspapers to multichannel entertainment, print media can still generate huge revenues from interactive services • How leading newspapers and magazines have leveraged smartphones, tablets, apps and m-web • How to turn print media into the launch pad for a multimedia experience • How to connect with readers in a personal and more in depth way • Gathering and using data to boost performance • How billing and m-payments fit into the mix • Case studies from around the world

MAKING TV A CONNECTED MEDIUM

Making TV shows interactive – from PRS voting onwards • Creating a cross channel TV experience and how to monetize it • The role of social media in the new TV landscape • How leading TV program makers have leveraged smartphones, tablets, apps and the web • How to turn TV into the launch pad for a multimedia experience • How to turn viewers into friends in a more in depth and engaged way • Gathering and using data to boost performance • How billing and m-payments fit into the mix • Case studies from around the world

TAKING ONLINE ENTERTAINMENT MULTIPLATFORM

Bringing online offerings into mainstream media using telemedia tools • How to profitably mobilise traditional online entertainment services • What does social media add? • To app or not to app? • How to turn your online services into the launch pad for a multimedia experience • How to turn viewers into friends in a more in depth and engaged way • Gathering and using data to boost performance • How billing and m-payments fit into the mix • Case studies from around the world

MAKING THE MOST OF PAYMENTS

How payments can be both the beginning and the end of the customer journey • The role of PayPal, Amazon, Google and Apple • What about operator billing? • Where do the banks fit in? • NFC and m-payments • PRS and drop charges come of age • Transactional SMS changes the billing landscape • Payforit and its role in micropayments • Internet+ rethinks web billing • Alternative billing tools for fast, safe micropayments • In-app billing • Case studies from around the world

Interactive telemedia services across mobile, fixed line and web are now generating significant new revenue streams and delivering on key strategic objectives. This event brings together a range of creative and business sectors that recognize the value of connecting consumers – and gives them access to the expertise and technology that can help them do it! • Media Companies & Data Owners • Marketers, Agencies & Brands • Premium Content & Service Providers • Live Event Organisers & Retailers • Network Operators & ISP • Technology & Billing Providers

BUSINESS NETWORKING

Meet over 300 leading providers that create value through content delivery, content sharing, social media, transactions and marketing. Our events have a long standing reputation for providing a first class opportunity to rub shoulders, pick brains and get to know the people that can really deliver: • Table top exhibits & sponsored hospitality • Mobile meeting and information app • Tea & coffee breaks, refreshments & working lunch • Mobile operator consultations

CONNECTED LIVE EVENTS

MOBILE 101: TECHNOLOGY EXPLAINED

• How mobile works • Apps v m-web • What you need to make a network • Working with network operators and third parties • M-ticketing and m-payments explained • Where mobile fits with live events • Case Studies from around the world

MOBILE MARKETING FOR LIVE EVENTS

• Getting people to your event using mobile • Keeping them engaged between events • From interactive advertising to rich media ads on smartphones • Letting them communicate with you • Case Studies from around the world

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MOBILE TICKETING & PAYMENTS

• The case for mobile ticketing • How to make it work • Infrastructure and security challenges • Technical considerations • Billing & payments • Case Studies Gold sponsor

IN VENUE / IN PLAY COMMERCE

• Using mobile in venue to interact and purchase • Revolutionising the merchandising… • … and the catering and corporate hospitality • Adding in augmented reality • Making the venue a social network • Billing and payments • Case Studies

FROM KIOSKS TO AUGMENTED REALITY

• Tomorrow’s technology today – what else can you do with mobile at your event • See how AR works and find out how to build commercial services around it • Learn from O2 and other “kiosking” experiences • What cutting edge m-commerce tools can you apply to your events? • Case Studies from around the world

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MARKETING

t h , g e i R er ht h ig r ow n

In March, the IAB reported that mobile advertising spend had more than doubled to £203.2 million in 2011. As smartphone ownership rises and brands wake up to the power of mobile, it seems that mobile marketing has truly come of age. Mick Rigby, MD and founder of Yodelmobile, explains what this means for the telemedia industry

to the growth of social media. The desire to check-in and tell your friends not only what you are doing, but where you are doing it is an inherently mobile activity. For many new smartphone users – and therefore consumers of mobile marketing – the desire to own a smartphone was partly social media driven. Up until recently, however, most of the traffic responding to brand-led mobile marketing initiatives on mobiles has been generated by a small group of heavy users. These users are the ones that have been comfortable using mobile, clicking on the ads, interacting with the brands through their apps and making impulse, on-the-fly purchases. Even though it’s a relatively small group by number, they’ve accounted for the vast majority of usage. or a number of years, people have been This has been good news for any brand keen to target heralding the “Year of Mobile”. As devices these early adopters. But until recently, the brands lookget better, penetration increases, and ing to target the mass market of consumers have found technology improves along with our mobile marketing a little slow and sluggish in terms of understanding of how we can best use responses. But all that’s changing, and changing quickly, mobile, so every year is set to be “the for three main reasons: Trust and confidence, technolone”. Yet the “Year of Mobile” is a false construct. The fact is that mobile is now so embedded into the fabric of ogy, and acceptance. As in the early days of the internet, there was a cerdaily lives in both developed and developing economies that it is an essential, integral component of modern day tain amount of user scepticism and uncertainty regarding mobile; is it secure, how much is being charged for living. Mobile is already here. Smartphones have played a vital role in bringing com- usage, can it really do what it says it can. However this scepticism is being eroded and replaced with acceptputer-processing capacity in an easy and intuitive way ance. Indeed, some users have a real affinity with their into the pockets and handbags of all those who want it and consumers’ appetite for all things mobile shows no phones, seeing it as an extension of their own personality, offering them a sense of freedom and renewed sign of abating. Recent research from Nielson suggests control. that the official tipping point for smartphone adoption Technology, meanwhile, is finally delivering on the has now been reached: half of all US mobile phone promises that were made five years ago. Connectivity, subscribers now own a smartphone, up from 36% last year. In the last three months, two-thirds of all handsets handsets, breadth of service and speed are now all in place to ensure that mobile marketing can deliver and purchased were smartphones. However that’s not to say that the mobile sector won’t this technology is available to the mass market. And using a phone – albeit a smartphone – as a portchange; it will continue to evolve as new and innovative able computing device is now the norm. It is accepted hardware comes to the market, and new functionality and new (or new versions of old) services start entering that football scores can be checked at the dinner table, that your mum will respond to a question with a text, the space. that the mapping tool on your phone will work to get For many, the rise of the smartphone can be linked

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MARKETING you where you want to go without an A-Z or a print out from the internet to get you there. With the acceptance of the services has come a greater acceptance of mobile marketing.

Marketing Beyond the App Throughout all of this innovation, the mobile industry must remember that the most important element is the consumer. It is the consumer who dictates the value of the medium through their usage and their demands. And it’s the businesses that best match consumer usage and fulfil demand on mobile that will grow the most. With consumers familiar with mobile and the hardware providing the gateway to the mobile internet, it’s time for the marketing industry to do something with it. Those of us at the forefront of the mobile marketing wave are doing a lot of very interesting things in the medium. Mobile marketing can mean so much more than simply developing a branded app. The best mobile marketing uses the inherent qualities of the mobile to create marketing that is stronger, deeper and which contains a powerful relational dimension. Thanks principally to HTML5 developments, mobile is now delivering a far richer advertising experience from within the ad units themselves. Mobile ads are more engaging than the one-way only equivalent ads on TV; they are also more impactful and engaging than web-

based interstitials. Mobile ads can act on time, location and device-specific functionality and deliver an incredible experience through: • Animated ads • Video delivered from YouTube or embedded within the ad • Data capture that can then deliver an immediate reward such as an SMS discount code • Games with the adverts • Location-based marketing – offering details for the cinema or service you require there and then. All of this, and more, is possible thanks to the developments in technology, but also the maturing of the mobile marketing sector. Many of us have been working at this for a number of years and we’re now able to share the experiences, skills and learning that have been captured during that time for the benefit of our clients. Mobile marketing has reached its tipping point: now is the time for brands to take advantage of the technology and the maturation of the sector to win share in the mobile environment and establish themselves ahead of the rest of the competition, probably for years to come. For those still hesitating about mobile marketing and advertising: don’t! You need to act now to become a valuable and integral partner in a user’s trusted relationship with their mobile before it’s too late. Mobile marketing has come of age: now your mobile brand must too.

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MARKETING

The true value David Worthington, Principal Consultant for Payment and Chip Technology – Bell ID, explains how while mobile contactless payment is central to NFC’s offering, it is value adds and consumer convenience that will drive adoption

ticket delivered to the mobile device. Another touch of the screen brings up a map with directions to the nearest cinema and, once there, tapping the phone on a contactless terminal grants access to the screen. Easy and cost effective for both customer and merchant. Loyalty is therefore central to both consumers and merchants in an NFC enabled world. Merchants will compete for market share as they have always done, ear field communication (NFC) is as consumers select which brands they will engage continuously touted as the next big thing for payments, yet the technology with via their devices. This new arena of NFC marketing will change how brands promote their offering is capable of offering so much more. due to the direct and interactive channel they now While mobile contactless payment is have to the consumer. central to NFC’s offering, it is value Mobile phones also have the capabilities to store added services (VAS) and consumer convenience, the preferences of the consumer and communicate which will deliver true value to the marketplace and this to merchants. This facilitates targeted marketdrive adoption; payment is simply the enabler. ing and the offering of relevant vouchers and loyalty It is important to remember that it is consumers rewards. that will determine the success of NFC technology. As NFC posters are networked, it is possible to The convenience offered by NFC VAS such as idenupdate them at the click of a button. During times of tity, transport, loyalty and ticketing will therefore be slow trade, merchants will be able to increase their key to driving market adoption, making the ecosysdiscounts and set a time restriction on the redeeming tem profitable for all concerned. the offer, helping to drive trade to the store. The landscape for delivering NFC payments and Turning to loyalty, the ‘mobile wallet’ on a consumVAS must first be established. The move from mager’s phone has the functionality to host reward points netic stripe to EMV compliant chip cards has been and store vouchers. This will mean that at point of instrumental in this process. It has offered the financial community a solid foundation on which to transi- sale, the payment, the deduction of vouchers from tion from contact to contactless payments, with many the total price and the application of loyalty points, can all be done with one tap of the mobile device, of the standard acceptance terminals being deployed streamlining the consumer experience and speeding today offering NFC capabilities. Now that the chip up customer processing time. payment infrastructure is in place, the payment A recent study by Juniper Research found that as processing systems implemented recognise the chip many as one in eight (13%) of North American and regardless of its location; in a card or mobile device. Western European mobile users will use their NFC This has created an opportunity to look at how consumers pay for goods and the tools that they use, enabled mobile phone as a rail or bus ticket by 2016, according to Juniper Research. The ability to simply inspiring the launch of the mobile wallet and exten‘tap’ an NFC phone against an entry gate to access sive NFC pilots across urban areas. The potential of a transport network lends itself to the consumer the mobile device to securely and centrally host a mindset. This has been seen with the adoption and number of services beyond payment is limitless. For example, payment enabling applications including the acceptance of a number of implementations around the world including BART in San Francisco, USA and redemption of a coupon, presentation of a purchase ticket, or non-payment functionality such as confirm- Cityzi in Nice, France. Using NFC-enabled technology, users can view ing an individual’s authority to access a building or timetables, select and purchase a ticket, make a download information. secure EMV payment, download the ticket and ‘tap’ The 24/7 use of smartphones means that consumers are constantly networked. NFC loyalty and promo- on the turnstile. This allows the phone to communicate with the turnstile via NFC, authenticating the tions will take this one step further. The ability for ticket and allowing access to the platform. a consumer to ‘tap’ on a smart-poster and view the For merchants, this will enable a more streamlined latest cinema listings is just one example of consumer convenience. At the touch of a smart-phone’s screen, infrastructure to be deployed, with the benefit of eliminating the need to print tickets. Further revenue an EMV® transaction has been made using the paycan be generated by referrals. Offering hotel rooms ment credentials stored on the phone and a cinema

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MARKETING

of NFC and different transport tickets such as bus, underground and rail from other partner companies is a lucrative source of income when integrated into ticket sales applications and websites. Prepaid taxis, for example, can offer real value to both the consumer and the taxi companies. The consumer simply goes online and pays for a specific journey, downloading a ticket for the trip onto the NFC phone. On entering the taxi, ‘tapping’ the phone onto the reader verifies proof of purchase, and presence. The fare has already been paid so the customer does not need to worry about the final meter reading. This could be implemented as part of a concessionary travel scheme in order to streamline the provisioning of individual people’s rights to use the service whilst automating the management and administration of the scheme. Local government could have a transport arrangement with a taxi firm, triggered by ‘tapping’ a registered mobile phone on the NFC reader in a taxi. It is possible to use an NFC-enabled smart phone as both an identity credential and a reader. An example of using the phone as a credential would be as a hotel resident identity card. Upon arrival, the hotel application is downloaded to the phone and logged into by the customer using pre-provided details. The smart phone is then automatically programmed over-the-air as the room door key and can be used to charge food and drinks to the bill. Customer convenience is a significant benefit here as phones are generally kept within easy reach, removing the chance of misplacing a key. It is also possible to view a live room bill and even order room service. Looking to the events world (music festivals, football matches and concerts for example), NFC wristbands and ticketing can help with the fight against ticket fraud and touting. Full identity credentials can be stored on an NFC tag in the ticket or wristband and a mobile device can be given to the door staff in order to read the tag. A photo of the ticket holder and details such as date of birth will then be displayed, enabling the event attendee to be verified. Different levels of access rights could also be provisioned, allowing easy differentiation between people authorised to enter the back-stage area, for example. Returning to payments, person-to-person (P2P) payment is gaining traction. This premise comes back to customer convenience. The introduction of services, such as PayPal Bump last year, has made it possible to securely transfer money to another NFC enabled phone by holding them close to one another. This operation allows consumers to split a bill in a restaurant, for example, or market stall traders to accept

NFC payment on the street. To demonstrate a ‘true value’ end-to-end scenario: two friends go for a drink in a hotel bar, one person pays the tab by making an mobile contactless payment, the second person then makes a P2P transaction to the first in order to split the bill. One friend lives out of town, has prepaid for a taxi and walks outside to find the car waiting. On entering the taxi, ‘tapping’ the phone on the contactless terminal acts as proof of presence and informs the driver that the fare has already been paid. In the taxi, a smart-poster advertises a local pizza company, ‘tapping’ here redeems the deal, the user orders and makes a secure EMV payment, all via the mobile phone. Five minutes after arriving home, the pizza arrives and one ‘tap’ on the delivery man’s contactless terminal acts as proof of order. Dinner is served. This scenario brings together NFC contactless payment, P2P payment, prepaid NFC ticketing, short range marketing, EMV certified remote mobile payment and proximity machine-to-machine communication. This is just one use case in a myriad of possibilities for this technology. The above demonstrates that payment is an essential enabler for many of NFC’s various use cases, rather than the only one. It is VAS that will drive consumer interest and adoption. People yearn for value for money, convenience and ease of use, all of which NFC has the potential to deliver. The next two years will be essential for the success of NFC as a technology. Products must be brought to market that offer value to consumers in addition to providing strong business cases for the stakeholders. Another key factor that will also influence the speed of NFC adoption in many countries is the continuing advancement of the active contactless terminal acceptance infrastructure. telemedia issue 30

MARKETING

Joining the dots Connected Marketing & Commerce Summit Preview

s mobile marketing becomes increasingly popular with FMCG brands, media companies and retailers, so all industry sectors look set to start to adopt it. Building on Day One of the Connected Summit (see page 19), Day Two focuses in on marketing and retail and how telemedia technology can help connect consumers to brands, inspire purchase and even leverage the payment out of them. The Connected Summit is designed to show how digital technology is generating greater interaction between brands and consumers – and to also showcase how this interaction can be harnessed and turned into profit.

CONNECTED MARKETING AND COMMERCE MARKETING GOES MULTICHANNEL

How brands, agencies and marketeers can use mobile to build relationships • Creating a cross channel experience • Marketing with compelling content • How to make existing marketing channels interactive • Data gathering and CRM • Profiling users and refining that profile on an on-going basis • Reaping the rewards of location based services • Marketing best practice • Case studies from around the world

ADVERTISING GETS INTERACTIVE

How to reinvent advertising for the interactive generation • New technologies and their impact • Rethinking online advertising • Why mobile advertising is different – and why it’s worth the effort • What agencies want from interactive ad campaigns? • How telemedia technology and services fit in • Case studies from around the world

THE COMPLETE JOURNEY: FROM MARKETING TO COMMERCE

The holistic view of a user’s journey from seeing an ad to engagement to purchase to loyalty • Case studies from around the world

TELEMEDIA AND RETAIL

What retailers want from mobile, online and the phone • Telemedia is the glue to hold together connected retailing • The role of payments and micropayments in e- and m-commerce • What retailers want from telemedia services • Case studies from around the world

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Featuring a world class line up of speakers and panellists (see website for details), The Connected Marketing Summit 2012 in London is the place to get to know what’s possible, how to make it work with your business and how to build on it. Learn from those that have done it, those that are expert in making it happen and the key analysts and thought leaders from across the digital economy.

15-16 May 2012

The King’s Fund, London ConnectedSummit.com

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CONNECTED INTERACTIVE TECHNOLOGIES

UNDERSTANDING WHAT TECHNOLOGIES AND TOOLS ARE AVAILABLE TO SERVICE THE CONNECTED CONSUMER AND HOW TO INTEGRATE THEM INTO YOUR BUSINESS Topics will include: • Understanding how the telemedia technology works • App and m-web design masterclass • Meet the responsive web • Designing services for multiple platforms • Understanding AR, QR and location based services • Plugging in social media tools • Understanding the stats • Case studies from around the world

OPENING & CLOSING DRINKS RECEPTION EVENING PARTIES BLIND SPEED NETWORKING

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Silver sponsors

M-GAMING

Rise of the

machines P

addy Power, one of the leading companies in terms of mobile gambling, has recently announced that mobile sports betting stakes are up more than 200% to total 25% of all stakes, and that the platform now accounts for 29% of all actives by February. Betfair, another key player, has seen 11 million bets and £5.8 million revenue generated through the mobile division. The past obstacles and barriers to mobile gambling are long forgotten, and we see, with every news release and financial announcement, that mobile is being credited as underlying the growth for many of the major players in the industry. In-running betting is driving the mobile upsurge; you only have to see the live odds advertising promoting mobile betting to understand the importance for the operators. Along with Bet365, William Hill are very prevalent on Sky Sports during football games, so it’s not surprising that they have dramatically exceeded their mid-2013 target of £5 million weekly turnover on mobile having already hit a weekly average of £7.3 million in the current trading period and they have now revised their target for mobile to reach 40% of all sports book turnover. While the large European household names are focusing primarily on sports betting, casino and slots gaming cannot be under-rated and these products are led by brands such as All Slots, mFortune and Lady Lucks. Google data shows that mobile searches for gaming terms are dramatically on the rise. “Slots” has increased 87% year-on-year, “casino” 79% and individual product words such as “roulette” and “blackjack” are soaring ahead with yearon-year increases of 123% and 119% respectively. While the PC has been relegated to becoming an admin

Mobile gambling has, in a year, gone from strength to strength. Operators are reporting hitting revenue targets a year early and tablet computers are seeing uptake – and spend – soar. Ahead of the M-Gaming Summit in London this month Aideen Shortt explores the opportunities this brings

workhorse and mobiles are our always-on companion, the tablet is fast claiming its own space and recent research has outlined that 68% of tablet owners use the device for at least one hour per day – which complements finding from gaming operators that the tablets are a “sofa” product, and quite often the device doesn’t leave the home. The

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M-GAMING

Mobile gambling facts and figures In 2005, Jupiter Research forecasted that global mobile gambling services would generate revenues of more than $19.3 billion by 2009. Yet in 2010, Gartner analysts showed the 2009 revenue levels at $4.7 billion. In the past few years, Juniper Research has found that growth has been in-line with expectations, notwithstanding the economic downturn. According to a February 2010 comScore MobiLens study smartphone subscribers are much more likely to play mobile casino games than subscribers of generic phones. The study revealed that 7.6% of smartphone subscribers but only 1.2% of generic mobile subscribers played mobile casino games within a three month time frame. But largely unforeseen by any of these studies has been the rise of the tablet in m-gambling. A new report from Juniper Research finds that the rapidly increasing tablet user base and the unique form factor of this device will push total end-user games revenues on tablets to $3.1 billion by 2014, up from $491 million in 2011. The report finds that the large screen size and excellent graphics capabilities of tablets will encourage users to purchase games and ingame items. Users see more of a game’s detail, giving the user an improved experience, particularly when playing more hard-core games. These kinds of games also typically feature console-style buttons on the screen. Using this feature on a smartphone often results in an obstructed view of the game, as the user’s fingers can block the screen, but this is not an issue on tablets. Juniper also finds that Social & Casual games will account for the lion’s share of mobile games downloads and spend on tablet games to increase dramatically, accounting for nearly a third of overall mobile games revenues by 2016. space has been dominated by the iPad, yet there were more than 20 new Android-powered tablets launched in 2011. By late 2010, global smartphone sales overtook PC sales, and the UK now has over 50% smartphone penetration. With the twofold knowledge that regular betters are twice as likely to own a smartphone and that consumers who bet and play via both mobile and desktop place up to 50% more bets than those that use desktop only this is a sector of the gambling industry that will continue to soar, and expectations that mobile will form at least 50% of all interactive stakes in the upcoming years finally seems a reality.

Going social

Gambling’s renaissance has not been confined to just to mobile: social media is also playing a part – and naturally, as mobile becomes the platform of choice for more people engaging with social media, so the social sites are becoming key to mobile gambling. A number of services have already been launched on social and are starting to gain some traction. In March 2012, ComTrade launched its Facebook Blackjack solution, which is available via the Palaces Live brand on Facebook and will run off its leading Remote Game Server and iGaming Platform. Facebook Blackjack is “play for free” and with player acquisition in mind, it will undoubtedly attract new players to the Palaces Live Casino. The overall objective of the game is for players to progress to its Live Games Blackjack solution that is also provided by ComTrade. The game lobby has been designed with familiar sharing features that a player has come to expect from social games on Facebook and will enable Palaces Live to reach more users through the sharing and inviting of friends. Facebook Blackjack offers a robust backend system that allows for an easy integration process and advanced user analytics. It also enables an operator to create a more “sticky” and engaging environment and drive brand loyalty and cross promotional activity. Oliver Lynch, Managing Director for UK and Ireland, ComTrade explains: “Our Facebook Blackjack solution will be used by our clients as a key tool to drive player acquisition or retention. It will allow operators to create engaging relationships with their players, driving brand loyalty among land-based players and creating new communities.”

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In order for this upward trajectory to continue gaming companies must continue to optimise not just their sites, but their user process in line with mobile consumer behaviour. It is critical to understand that mobile is not just a “little internet”. At the outset, design must be simplified. The best mobile websites are those that are rendered for the lowest common denominator of mobile usage – which is on the move, in daylight and with one hand. In addition, modifications in line with the frequency and timing that customers use their mobile are necessary. Advertising agency, SOMO, has broken down internet usage by device quite succinctly, describing the desktop/laptop experience as a Deep Dive of up to 4 hours in a seated position involving extended levels of research. Mobile used for Snacking or Skimming in short bursts of browsing for a time of only one to eight minutes. Tablets are a hybrid between the two. What this means for gambling operators is that the customer experience must be optimised for the platform. There are good examples, such as IG Index, who allow the user to choose the landing page that suits their unique requirements. All Slots casino directs the players straight to the games using compelling imagery, Probability Games has a mobile bingo game which uses simpler graphics and a faster gameplay than the desktop variant, and of course all the key operators lead the bettors straight into inrunning and live bets from the home page. Lessons have been learned already and the successful operators are well into the 2.0 versions of their site, but as an industry there’s still a long way to go given the strategic importance of the platform. Aideen Shortt is an independent researcher and writer in the gambling industry. Her latest reports include iGaming Business Mobile Gambling, Social Media for the iGaming Industry and Social Media in Sports. www.aideenshortt.com

The affiliate

M-GAMING

Despite the rise and rise of mobile gambling to the point that expectations are now that the platform will form 50% of all interactive revenues within the next 18 to 24 months, affiliates have been reluctant to get involved on a widespread basis to date, preferring to keep their focus on the desktop gambling. Aideen Shortt reports

he hesitation of affiliates incorporating mobile as part of their offering was due to years of experience in the online space – with their main revenue being generated from desktop gambling. There was a lack of enthusiasm for shifting energy, time and resources to something that was unknown and unfamiliar. With mobile also not as widespread amongst the operators until about 18 months ago, there was only a limited selection of operators to choose from, which significantly affects an affiliate’s revenue potential. However, with the boom of the mobile industry – both the growth of mobile gaming alongside the technology itself – it is now imperative for affiliates to focus on this platform and include it as part of their offering in order to ensure that they can serve the growing client base and leverage their current offering. Affiliates now understand that an increasing percentage of their natural traffic is coming from a mobile device and therefore in order to capitalize on this business they need to make the relevant adjustments in order to cater to this market. Primarily, this means redirecting traffic according to the platform that the player originated from and working with operators who offer both mobile and online solutions. In the past, many gambling operators did not understand the complexities of mobile and did not appreciate the differentiation of the workings of mobile versus online. In a recent webinar in conjunction with the mGaming Summit and iGaming

What can affiliates do? To capitalise on this nascent business the affiliates need to work with affiliate networks that understand the mobile platform and provide specific tools for the space. Brightshare, for example, are one of the most advanced mobile affiliate networks and their kit includes: • Specific mobile optimised banners in terms of size, look and feel and legibility for a small screen. • A variety of mobile promotions targeted at crossselling platforms and attracting the new mobile only demographic. • I-frame sites for player game download using push technology • Affiliate customisable mini-sites for smartphones • QR Codes uniquely coded to each affiliate

Business, Candice Evans of the Brightshare affiliate network outlined how their product All Slots Casino has matured in all aspects from the game experience, to how they communicate with players, the actual games and the various payment options. The casino industry has now improved its expertise in optimizing not only game experience, but also the reach and the flow. Behavioural changes from the players have also contributed to the hockey stick growth of mobile gambling. Smartphone adoption, which is now 50% of the UK market, has opened the door. There is now a new confidence in the gambling products and ultimately the mobile device. The advancement in the mobile network operator’s offerings has also made a huge difference by providing data packages to the consumer for internet access. Now, the customer not only utilizes his mobile device as a communications device but also as his computer. During the webinar, Evans went on to say that All Slots Casino has seen a huge increase in player lifetime value since the smartphone revolution. A player who is cross playing on both the mobile and desktop has a high value due to easy access on both platforms with the same brand and account, meaning there is no need to register or provide more personal details, and the convenience of a shared wallet. Player loyalty to the brand is seen over the value and lifetime cycle. In addition there is now an entirely new market, previously untapped, that is emerging as a mobile-only player; someone who would never gamble online, but is happy to play slots and softer games on mobile, in the name of entertainment. As more and more affiliate networks move to offering platform-specific collateral, this will entice the affiliates to take advantage of the mobile gambling opportunity, which is predicted by Juniper Research to reach total annual wagers of more than US $27.5 billion by end of 2013.

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M-GAMING

ALL BETS ARE ON M-Gaming Summit Preview Logo

011 was finally the year when mobile stopped being ‘next big thing’ and started to become an essential platform for today’s progressive gambling industry. Certainly the signs were there in 2010 – during the World Cup – when key operators reported massive increases in mobile platform usage. Supporting research also suggests that mobile attracts new, younger and more sports-minded customers whilst still driving higher yields from existing gamblers – after all, everyone has one all of the time! Casino games, slots, bingo and lotteries are also now seeing the kind of uptake we’ve been promised; with The King’s Fund, London Logo with strapline (varies according to context) smartphones and tablets now delivering an exciting mGamingSummit.com

25 April 2012

DELEGATE PROFILE

Heads of Mobile Gambling, C-Level Executives, Heads of Product Development, Marketing Managers, New Channels Managers, Affiliate Mangers, Mobile Managers, Heads of Strategy, Product Managers, Business Development Managers, Investors, Data Managers and Brand mGAMING Managers SUMMIT Strategies for mastering mobile gambling

LEADING PROVIDERS

Casino Operators, Bookmakers, Mobile Network Operators, Remote Gaming Consultancies & Agencies, Payment & Billing Services, Regulators & Law Firms, Management Consultancies, Telecom Service Providers, Aggregators & Resellers, Media Groups & Data Owners, Content Providers, Marketing Agencies and Brands

THE DOCTOR WILL SEE YOU NOW...

• Want to gain a unique insight into how mobile operators work? • Need to understand how best to approach them and to exploit gambling and gaming opportunities? • Understand how to work with operators for mutual benefit • Learn about the operators’ take on html5 and apps • Find out why mobile billing is good for you Six 20 minute consultations will be available for you to pick the brains of the industry’s most respected expert in this field – Bill Randall.

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