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Issue 32 • AUGUST 2012

OpenMarket urges UK merchants to prepare for Payforit4 standard digital merchants in the UK who use mobile billing to charge for goods and services must take steps now to be fully prepared for when Payforit 4 becomes the UK standard for internetdiscovered mobile payments, according to mobile messaging and payment solutions provider OpenMarket.

The mobile payment market includes a number of different methods, including Premium SMS, direct mobile billing and mobile web payments (WAP). Operators in the UK will begin to mandate Payforit 4 as the industry standard for mobile payments from September 1st .

“Payforit 4 is the UK mobile micro payment scheme that enables consumers to use their mobile phone account to transact securely and safely when purchasing content and services on the internet. It allows merchants, content providers and developers to monetise their products and services to the entire UK consumer market via the mobile channel,” said Adrian Sarosi, OpenMarket’s Director of Sales and Marketing. “Merchants must act now to assure the future of any existing services as the mandates come in to place.”

“As a fully authorised Accredited Payment Intermediary (API) for Payforit and contributory member of industry association AIME, who is helping develop the Payforit framework, OpenMarket has the resources, expertise and scalability in place to support the unique needs of all merchants using mobile payments,” continued Sarosi.

“OpenMarket has refreshed its industry-leading platform to the new mandates and is ideally placed to help merchants assess and update their mobile commerce offerings. ” Payforit enables consumers to pay for online products and services on their mobile device and charge the payment back to their mobile bill. Consumers who use Payforit 4 do not need a credit card or bank account, or need to pre-register for the service. Payforit 4 is available for consumers to use for both pre- and post-paid mobile accounts.

“With Payforit 4, consumers and merchants alike in the UK get to benefit from swift, secure, and easy-to-use mobile payments across a wide choice of smart devices, feature phones and other web-connected devices,” said Danny Barclay, Head of Interactive Sales of O2. “We believe that as digital merchants transition we will see an uptake in Payforit services as consumers warm to the better experience.”

New features in Payforit 4 include support for non-cellular wireless connectivity such as Wi-fi; plus a consistent, secure, and easy-to-navigate payment flow across multiple handset and device types, including tablets. Payforit 4 also includes singleclick purchasing for easy repeat billing: and an embedded version for merchants to integrate it into their website or browser-based mobile app.

To check if an existing service may be affected by Payforit 4, please text PFI4 to 88600. To learn more about OpenMarket’s range of Payforit 4 solutions, please visit www.openmarket.com/payments/mobile-web-checkout/uk-payforit/

THIS MONTH...

News

The latest news from the industry, along with analysis of what that news means, including: • TradeDoubler wins Three Mobile’s affiliate marketing contract 3 • Smart Gaming Group launches first live roulette app for iOS 3 • C3 seeks UK resellers for its remote safety service 3 • M-ads using messaging to hit $74bn thanks to location 4 • BuzzCity sets out to help clean up online and mobile ad scams 5 • Mobile to make up 1 in 5 online sales this Christmas 7 • US retailers join forces to develop their own m-payments 7

Analysis Editorial Do it themselves Paul Skeldon looks how the move by US retailers to develop their own mpayments platform means trouble for us all

9 SOCIAL Facebook VoIP Facebook could cause total telecoms chaos if it launches its own VoIP services – and its not just Skype in its sights 11 MARKETING Marketing on the move Timo Ronkainen from TradeDoubler offers his top four tips for making mobile marketing really move 12 TELECOMS 4G War Ofcom’s move to let EE refarm its GSM spectrum for 4G has really set the cats amongst the pigeons 14 WORLD TELEMEDIA MARBELLA Learn. Discuss. Inspire World Telemedia’s next live event – in Marbella 17-19 October is taking shape. Find out what is on offer and book your tickets 15 AD:TECH LONDON 2012 What’s happening We take a look at what to look forward to at Ad:tech in London 18

Directory

The leading industry directory of services 20

Latest news at www.telemedia-news.com Catch our blog at www.telemedia360.blogspot.com

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NEWS

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Tradedoubler wins Three Mobile’s affiliate marketing

international performance marketing and technology company, Tradedoubler – which is speaking at WORLD TELEMEDIA MARBELLA 1719 Ocotber – has successfully won a three-way competitive pitch to manage the affiliate activity for mobile phone retailer Three Mobile, beating Affiliate Window and Commission Junction.

The deal, brokered by Summit Media, Three’s digital marketing agency, sees Tradedoubler appointed as their sole network. The network’s leading service, quality of account management and successful track record in delivering measurable sales growth were key factors in the decision. The win further consolidates Tradedoubler’s position as a leader in technology innovation, account management and publisher network quality.

Three is the UK’s fastest growing mobile network with the largest share of mobile data usage. With a network built for the internet and a focus on smartphones, the company plans to use a strengthened affiliate network to further boost its UK market share and drive smartphone adoption.

“We’re here to help people discover all the benefits of the mobile internet,” said Matt Bowes, Affiliate Marketing Manager

for Three Mobile. “Smartphones already account for just under half of all mobiles in the UK, and our network carries 44 per cent of all mobile internet traffic. We want to build on that with a high quality and reliable affiliate network that adds real value to our sales and marketing programme. Tradedoubler has shown that it can deliver this and we are very pleased to appoint the company as our sole partner for the UK.” Tradedoubler works with Summit Media on a number of accounts, helping it to deliver powerful integrated online solutions to leading global brands. It has worked on the Three Mobile account for the past 16 months, alongside two competitors. Following a pitch between the two incumbent partners and CJ, Tradedoubler has been appointed sole provider.

“We are extremely excited to have been selected by Three Mobile,” said Dan Cohen, Market Unit Leader, UK & Ireland, Tradedoubler. “We are immensely proud of our track record in driving revenue growth for both advertisers and their agencies, based on our unrivalled publisher reach, network quality and dedicated agency team. We look forward to helping Three Mobile achieve further success.”

Smart Gaming Group launches first live roulette app for iOS smartGaming Group has launched the first live roulette game for mobile.

The app will be available for both Android and apple and is the first live streaming roulette game with real presenters.

The app, available for both Android and iOS is the first live streaming Roulette game on the market and the games’ presenters are based at the company’s London studio. It is also broadcast Live on Sky Channel 863.

Smart Gaming Group’s CEO Darwyn Palenzuela states “This is such an exciting time for us, since we only launched the first ever social live roulette Facebook game a couple of weeks ago. We are constantly striving to provide our B2B partners and customers the best live gaming experience and believe that this includes developing games available via the Apple App Store and Google Play store.”

The Live Roulette app is a free download that allows users to play for free or with real money. The App boasts three live roulette games which include “Social TV”, “Auto Black” and “Auto Brown” Roulette. Players who wish to play for real money can easily register an account by clicking on the registration button, completing the form and depositing funds to play for real. Existing Smart Live Casino account holders simply need to login.

C3 seeks UK resellers for its lone worker safety system cambridge-based telecoms specialist C3 is looking to establish a reseller network for its mobile-based lone worker safety system, Lookout Call.

The company is already working with Momote, the business behind the mobile workforce management solution, MyMobileWorkers. Following the initial success of this partnership, C3 is now seeking further distribution partners to either sell Lookout Call as a value added service or

integrate it with existing products.

“Lone worker safety touches almost every business in the UK, so the market for a product like Lookout Call is huge,” said Brian Caddy, Lookout Call sales manager.

“We know that the demand is there, and we see a reseller network as the best and most customer friendly way of taking Lookout Call to new sectors.

“The product itself is flexible and can be adapted to fit in with existing prod-

uct lines. So, at this stage, we are keen to hear from any company that sees the potential for a lone worker safety system for their existing customer base.”

Lookout Call is a mobile-based lone worker safety system that is currently used by more than 18,000 lone workers across the UK. The system is popular with a wide range of organisations, including charities, NHS trusts and local councils.

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Mobile messaging ad spend to reach $7.4bn by 2017, driven by location-based ads

advertising spend on mobile messaging will reach $7.4 billion by 2017, a new report from Juniper Research finds. This growth will be driven by a dramatic upsurge in the use of location-based SMS to deliver relevant ads to consumers.

The idea of location-based SMS is something that is likely to raise questions of privacy amongst consumers.

However, operators are extremely sensitive to this and the schemes which already exist, such as O2 More, are optin and the consumer can choose which types of offer they would like to receive.

These types of schemes will become more common as operators attempt to look for revenue streams beyond voice and data but it is unlikely that schemes will become opt-out or compulsory.

SMS ads have significant benefits for marketers. While they may lack the rich media content of other advertising formats, they are very familiar to consumers and have a much higher chance of being opened, even if unsolicited. SMS ads are also a low cost option for those seeking large reach; in the UK, for example, a bundle of 1,000 text messages

costs around £0.05 (8¢) per message, falling to around £0.03 (5¢) for larger bundles.

Report author Charlotte Miller noted that, “Sending adverts using mobile messaging gives advertisers a simple, cheap and effective way of reaching consumers. Adding location technologies is an even more powerful proposition, particularly for transactional advertising as marketers can reach consumers who are near a location where they can purchase. Knowing that the recipients of an ad have actively asked to receive it and will in all likihood open it is also particularly attractive.”

The report also finds that brands need to have a joined up mobile strategy, ensuring that mobile adverts direct consumers to mobile optimised sites or content, particularly given the highly promising mCommerce opportunity.

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Mobile ad network BuzzCity teams up with academics to safeguard ad quality buzzcity is intensifying steps to safeguard ad quality across mobile advertising networks, by undertaking a study with Computer Science researchers from the National University of Singapore (NUS).

CPC (cost per click) is the dominant model driving advertising activity on mobile ad networks and search. The way it works is whenever a site visitor clicks on an ad, a small amount of money moves from an advertiser account to the site owner’s account. Advertisers seek out networks that offer them the best return on their investment. The industry speaks of finding ‘traffic that converts’ – clicks that result in the advertisers’ goal of a sale, a signup or a download.

Problems can arise when fraudulent site owners generate clicks on ads that appear on their own site to boost their earnings.

They might simply click on the ads whenever they get a chance, or they could try to alter the codes in an ad tag, or they could even use ‘bots’ -- software designed to

click on banners. Such ‘click fraud’ seriously diminishes the efficiency of a campaign, and ad networks invest significant time and energy to stamp out the practice. It can also damage user experience – with promotional messages becoming unreliable and misleading.

“As mobile traffic and internet advertising grows, click fraud has the potential to diminish the trust of advertisers who otherwise should be getting better returns from their growing mobile budgets,” said BuzzCity CEO, Dr KF Lai. “BuzzCity already has a system in place to detect and discard fraudulent clicks before they reach advertisers’ accounts, but we want to ensure that it doesn’t become an issue moving forward.”

BuzzCity’s sophisticated algorithms look for specific patterns in the data generated. This includes IP addresses, user sessions, carrier information, and browser detection, all of which provide clues that help BuzzCity’s systems to

monitor potential fraud.

Their collaboration with a research team at the National University of Singapore will take this further, and follows the recent appointment of Dr Lai as an Adjunct Associate Professor with the Department of Computer Science at NUS. Researchers in Department of Computer Science will use their expertise in informatics to analyse the volume of clickstream data that will be provided by BuzzCity.

“While it may never be possible to reveal the intent behind a click, research like this – whether it is a competitor who has a vested interest in draining its rival’s ad spend, or a publisher who wants to earn more money without investing in the audience – will help create mathematical models to better identify quality traffic for advertisers, and improve earnings for publishers,” said Provost Chair Professor and Head of Computer Science Professor Wong Lim Soon of the National University of Singapore’s School of Computing.

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NEWS

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Mobile to make up 1 in 5 of online sales by Christmas

the percentage of UK online sales made through a mobile device could reach 1 in 5 (20%) by Christmas 2012, with the percentage of site visits through the channel at around 1 in 3 (30%).

This forecast follows the latest results from the IMRG Capgemini Quarterly Benchmarking Index, which found that the percentage of sales through mobile devices rose to 11.6% in Q2 of 2012, up from 8.2% in the first quarter. Since the beginning of 2010 the penetration of mobile in terms of UK e-retail sales has soared 2,900%, rising from just 0.4% of e-retail sales in Q1 2010 to 11.6% in the last quarter. Site visits through mobile devices also rose significantly in the second quarter, reaching 21.1% of visits to UK e-retail websites, up from 16.4% in the previous quarter.

The research also revealed that the visitor bounce rate for Q2 rose to 29%, the highest yet recorded in the two and a half years the Quarterly Benchmarking has been tracking it. This suggests that consumers are becoming evermore demanding when it comes to initial site engagement; the average bounce rate was 22% in 2010 and 24% in 2011; year-to-date in 2012, the average bounce rate is 28%.

There were some positive signs in terms of basket abandonment rates, as the average rate fell five percentage points in Q2 to 55%. Although basket abandonment has been falling, the rate at which it is happening is only marginal and the overall level remains high.

The average was 61% in 2010, 60% in 2011 and 58% year-to-date in 2012.

Tina Spooner, Chief Information

Officer at IMRG, said: “While the share of online sales going through mobile devices continues to grow impressively, the actual final conversion side of it is only part of the story. Mobile has placed retailers, symbolically perhaps, in the palms of consumers’ hands, removing many former borders and expanding the contexts and times that engagement can happen.

“With the phenomenal growth seen in m-retail sales and visits, inevitably this also impacts the website visitor bounce rates, with fickle consumers easily able to compare and browse across multiple websites before completing a purchase.”

Chris Webster, VP / Consumer Products and Retail at Capgemini, said: “The second decade of this century is will be viewed in history as the decade when the mobile device became the point of access to digital services. This has happened very quickly for commerce services and by the end of this year, 20% of all digital commerce transactions will be completed on mobile devices. Compound this with the ability to identify ourselves (iris or fingerprint recognition etc), hold information on ourselves (for example, Apple passbook launched this autumn on iOS6) and access such services while on the move (location based services) making these services personal and location based. The mobile device will be the must have item when you leave the house; just imagine when your passport and driving licence can also be held (or accessed) through the device.

One final hurdle to clear: what happens when the battery goes flat?”

US retailers join forces for m-commerce system a group of giant US retailers - including 7-Eleven, Target and Wal-mart - are developing their own mobile commerce platform, taking on a crowded field of banks, telcos and technology companies.

The Merchant Customer Exchange (MCX) is already building an app it says will offer consumers a “versatile mobilecommerce experience that will combine the convenience of paying at the register with customisable offers”.

The partners - including Best Buy, Sears and Sunoco - boast that, between them, they serve nearly every smartphone-enabled American and account for approximately $1 trillion in annual sales.

Mike Cook, corporate VP, Wal-Mart, says: “MCX will leverage mobile technology to give consumers a faster and more convenient shopping experience while eliminating unnecessary costs for all stakeholders.”

Mark Williams, president, financial services, Best Buy, argues that: “As merchants, no one understands our customers’ shopping and payment experience better than we do, and we’re confident that together we can develop a technology solution that makes that experience more engaging, convenient and efficient.”

Commenting on the move, Terfel Roberts, UK managing director at mobile payments platform, Danal, said: “It was only a matter of time before this type of initiative emerged. Driven no doubt by the charges levied on the retailers by the financial industry. However, once again the drive by various sectors in the retail to financial value chain to grab what they perceive to be a valuable piece of business will leave the customer confused, and their options fragmented. It seems that everyone from search engine suppliers, to carriers to retailers all believe they can process payments in a secure and customer friendly way.?The truth is the companies that can pull all these different payment methods together, and offer the consumer the flexibility of where they pay from, are none of the above.

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OPINION

TELECOMS

Retailers take on m-commerce News that 14 top line US retailers are joining forces to develop their own mobile payments, loyalty and ultimately m-commerce platform to make things easier for them should be a wake up call to us all, says Paul Skeldon If you want something doing... do it your self. That’s what my mum always used to say, and it is no doubt the advice of the mothers of the heads of e-commerce at some of America’s biggest retailers, who this week have announced that they are to work together to develop their own m-commerce platform and payments solutions in an attempt to by-pass the ever-more complex morass of technology providers that are leading to huge confusion within the retail community as they all look to go mobile.

Under the banner Merchant Customer Exchange (MCX), 7-Eleven, Target, Wal-mart, BestBuy, Sears, AVC and eight other retailers have joined forces to develop a mobile payments application that will be easy to integrate into existing payment back ends and, it is hoped, be so easy to use that it will kick start the mobile payment revolution in stores.

The bold move is a line in the sand for the many other payments providers out there vying for position as the de facto mobile payments standard. Already banks, network operators and the likes of Google, Square, Mobile Money Network and more are all looking to corner the market in mobile payments.

The establishment of a retail-backed consortium means battle is joined. And one can’t help but wonder if the retail industry’s own offering is a shoe-in as the winner in this fight. The retailers in the US who comprise MCX between them have millions of customers and, since they are doing it themselves for their own businesses will have a much better grasp on what they want to get out of it. It will also, probably, cost them a lot less.

Or as Wal-mart puts it: “MCX will leverage mobile technology to give consumers a faster and more convenient shopping experience while eliminating unnecessary costs for all stakeholder.”

Such a move also gives shoppers the confidence to use the service as they will see it in many of the best known stores across the US, giving a much needed fillip to the mobile payments idea. And it avoids the tricky issue of ‘who owns the customer’; something that has dogged any tie up so far between banks, telcos, third parties (bar perhaps PayPal) and retailers to deliver effective mobile payments.

Little else is known about MCX currently, but this is perhaps one of the most significant moves in m-retailing since, well, the invention of m-retailing. Suddenly retailers are empowered to run the payments side of m-commerce in their stores and on their sites and can develop a solution that suits them very specifically.

It also opens up the possibility of kicking many other payment tools into the long grass – and perhaps even scuppers NFC – in the short term.

Personally, I believe that what is more likely is that it will be the much needed boot in the trousers that the telcos, banks and payment companies need. Rather than all competing to become one of a confusing panopoly of payment tools nestling as apps on phones, quickly forgotten and never used, they will be inspired to work with this group to integrate the best bits of their technology into a single payment tool.

Outside the US, we should all watch this initiative with bated breath. If it succeeds then it needs to be replicated everywhere for the best of breed payment ideas to be integrated into a truly universal payment tool so that I can have just one payment app on my phone and for m-commerce to reach its true potential.

Of course this move will have huge repurcussions for the telemedia industry as it involves payments, primarily, but also mcommerce in general. Its impact on telcos could be huge and billing companies need to take note. And we will be debating this at length in the payments and retail & m-commerce sessions at WORLD TELEMEDIA MARBELLA (17-19 October), so book your place to help work out how we work with retailers and not lose this huge opportunity.

Editorial Editor Paul Skeldon paulskeldon@me.com | Sales & Marketing info@telemediamagazine.com | Production Director Annika Micheli annika@telemediamagazine.com | Publisher Jarvis Todd jarvis@telemediamagazine.com To subscribe, please go to www.telemedia-news.com What we’ve been listening to Love and Rockets | What we’ve been amused by The Revolution will be Televised | Who we’ve been following #telemedia | What we’ve been reading about OTT services | Sept 2012 will bring... Ad:tech and many other shows – plus more details of World Telemedia Marbella

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OPINION

SOCIAL MEDIA

Facebook VoIP calls: total disruption for everyone?

Facebook could add up to $800 million to its revenue by launching a Skype copy, reckons John Strand. By doing so, will Facebook disrupt the mobile industry even more? facebook has a vision that its platform will evolve into augmented reality and become completely integrated into the user’s life, embedded not just on every screen – TV, PC, mobile and tablet – but in every product and location. Adding VoIP capability is next logical step for Facebook to achieve this vision, and Facebook could manage the technical and resource requirements in a matter of months.

In the 10 years since its founding, Skype created nothing less than a paradigm shift in the market for international voice traffic, and it associated customers to a very disruptive price: free. A number of international calling players, both MNVO and VoIP players, entered the market after Skype. Lyca Mobile and Lebara Mobile are two MVNO examples. The net effect of these upstarts was that they forced network operators to lower prices for fixed line and mobile international calls in order to compete. Google Talk and MSN were the VoIP entrants, but Skype prevailed as the clear winner.

Microsoft, unable to compete with Skype in VoIP, acquired the company in May 2011 for $8.5 billion, a price that was many times Skype’s revenue and a premium for Skype’s unique market position. It is important to note that having the most users does not mean having the most revenue.

Skype does not necessarily collect the cash flow it disrupts. Instead it creates a ripple effect of falling prices, but only captures a fraction of the lost cash flow.

The value that once appeared on an operator’s balance sheet for a higher priced service just disappears. It is no longer purchases. Consumers use another, cheaper priced service instead. Skype published its numbers in March 2011 before its scuttled

IPO attempt. Revenue was $860 million for the year ended 2010. There were 668 million users, 18% of which were active users, and 8.8 million paying users. With 124 million active users, Skype made less revenue than the annual operating profit of many mobile operators. It is worth noting that an operator with 124 million subscribers would make many billions of dollars, but Skype made less than $1 billion. Such is the nature of disruptive technology.

Technologies such as VoIP offer global connectivity at a fraction of the cost that operators offer for the same voice coverage today. Operators’ higher price reflects their ongoing multibillion dollar investment in global digital infrastructure, without which Skype could not exist.

Skype, and Facebook for that matter, do not invest in infrastructure, but they are over the top (OTT) technology platforms that rely on the provision of digital infrastructure. They are essentially free riders on the network that competes with mobile operators for communication services.

To be sure, Skype’s revenue is nothing to sneeze at, especially for an internet company struggling to show a profit on advertising revenue. Facebook is scrambling to please investors, and $300 million-$800 million from VoIP would be welcome on the income statement.

The question is not whether Facebook will enter the VoIP market, but rather will Facebook succeed where Google and Microsoft have failed. Indeed Facebook has more likelihood than any platform to be the Skype killer. Facebook is close to crossing the 1 billion mark with users, and half of them use their mobile phone to connect to the platform. For many users, Facebook is already the place to communi-

cate with friends and family, so VoIP would be a welcome addition.

And unlike Skype, Facebook provides a ready phone book from the beginning.

Indeed, with pictures, video, news and the other features of its social network, Facebook offers a richer experience than any of its competitors.

It is not a stretch to suggest that Facebook could at least match Skype’s revenues. The premium model of Skype has proved more profitable per user than Facebook’s advertising model. Skype’s paying users spend an average of approximately $100 per year on Skype Out and other services. Facebook’s advertiser revenue when apportioned for users in the Europe and North America (where it gets almost all of its advertising) is less than $10/user. Facebook already has the payment and collection facility developed for its multiplayer games, so it would be no problem to charge individual users for VoIP services Our analysis shows that Facebook could have a remarkable potential in the area of VoIP. It could create a communication experience far richer than what is available today. If Skype is a black and white film, then Facebook’s VoIP would be a 3-D interactive movie. Operators have already absorbed the impact of Skype, but Facebook is another story.

Facebook has already proven a clear and present danger to SMS revenue. VoIP is the next logical step and perhaps an MVNO thereafter. With each step, Facebook encroaches on operators’ cash cow: voice.

And operators move ever closer to the dumb pipe destiny. There is no doubt that Facebook is a ticking time bomb under the mobile operators’ business model.

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OPINION

MARKETING

Marketing on the move Timo Ronkainen, Global Head of Mobile, Tradedoubler, takes a look at how to get the best out of mobile marketing, ahead of his presentation at WORLD TELEMEDIA MARBELLA

UK based Everything There is a storm brewing across the retail sector and the winds of change are leaving no corner of the retail landscape untouched.

Ten years ago, the transformational storm of the internet gave rise to ecommerce. Today mobility is at the eye of the storm. In particular, the growing use of internet-enabled mobile devices such as smartphones and tablet computers to research, compare, review and purchase products and services.

Retailers looking for new ways to drive revenue, secure competitive advantage and build relationships with customers cannot afford to ignore the potential of a European consumer mobile shopping bill of 14.6bn euros by 20121 and the Forrester view that m-commerce sales are set to grow 40 per cent each year for the next five years.2 To seize a share of this market, retailers need to understand the mobile landscape and how to make the most of it. It can be immensely difficult to know where to start, what to do and where best to invest resources.

Since introducing our mobile affiliate programme last year we have worked with advertisers to identify and define the essential steps required to get to grips with mobile commerce. Having developed successful revenue-generating campaigns for clients such as The Body Shop and Jessops, here are some of those critical steps.

Step 1: Get the proposition right The first thing retailers need to figure out is exactly what their mobile objectives are and how mobile marketing and sales fit in with their business goals. There is no

one-size-fits-all solution, no simple right or wrong when it comes to deciding what to focus on. Decisions need to be based on your target audience, the nature of your product and the type of devices you wish to focus on.

For example, many organisations feel they have to have an ‘App’, because everyone else has one. That is not the case, it all depends on what your proposition is. A travel firm, for example, may opt for an App that serves more as a mobile brochure, with visuals and video links and other rich information; perhaps complemented by a mobile-optimised website that focuses on location-based services such as the nearest hotel, and offers transactional capability.

A retailer with a strong offline presence may wish to use its mobile affiliate marketing to drive traffic to the nearest store, perhaps including special offers or incentives that can be redeemed in store. A services organisation – such as a bank or utility – may wish to focus in the first instance on providing high quality customer service over a mobile device.

It is also important to remember that the growing trend is for people to use more than one mobile device, including the growing use of tablets, in different places, at different times and for different things.

For a mobile proposition to work it needs to interact seamlessly across all these platforms – a tall order today for many retailers.

Once you have decided exactly what you want to get out of your mobile venture, you can then concentrate on making sure it works for your users.

Step 2: Focus on functionality What works for your online site, will not necessarily work on a mobile device. The

need for a stripped down, clear, intuitive user interface cannot be overstated. The faster and easier a customer can get to the information they want on a mobile device, the more likely they are to complete a purchase. Frustrated customers will, in the end, simply go to a competitor site or you will lose them partway through a sale.

To decide on the format, layout and content of your mobile site you need to understand the devices your target customers are most likely to be using.

Research suggests that most mcommerce today is undertaken on an iPhone, with the number of Android users increasing rapidly. iPads and other tablets are threatening to become the m-commerce device of choice over the coming years. This fragmentation of platform and operating system will only increase as smartphone and tablet ownership moves from the current ‘early adopter’ phase to become mainstream. Early adopters are much more tolerant of less-than-perfect sites and are often happy to work things out for themselves. This is something that will change dramatically when the less technology-minded mainstream audience comes on stream in the next few years.

Retailers also need to understand exactly what their target audience uses mobile devices for. In a world of 24/7 media and instant communications, people turn to their mobile devices for two things: to save time or to spend time. Saving time by buying train tickets on the go or spending time checking Facebook or playing games.

Which of these behaviours is most relevant for your business?

Step 3: Drive and measure traffic After making sure that your mobile offering works and is relevant to your audience, the next step is to drive traffic to your site

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OPINION

MAREKTING

or application – and to make sure you can track and measure activity and flow.

You can drive traffic in a number of ways, for example by building an affiliate programme that encourages potential customers to click through to your site, bringing more traffic and transactions. If you have an App it is vitally important to get on to the ‘Top Ten Charts’ such as those on iTunes. This will expose your site to new potential customers.

In affiliate marketing, advertisers to need to work closely with their mobile publisher network to implement pay-per-click (PPC) campaigns that are adapted to how people surf using mobile devices. Our mobile affiliate program also includes our unique Application Download Tracking (ADT) that enables retailers to monitor the success and ROI of their mobile App.

Step 4: Integrate everything M-commerce is not a stand-alone channel. As mentioned above, consumers now engage with retailers and other suppliers through a number of devices. For the retailer the challenge is to ensure they offer a seamless yet tailored service across all these platforms. Mobile must be part of a holistic marketing plan that includes online and offline channels.

The Future Mobile commerce is the future. We are already seeing around six per cent of traffic coming from mobile devices, and with 6.7 billion devices expected to be connected to the internet by 2014, the mobile market for retailers will only get bigger and more complex. Important contextual information about individual consumers, such as their location, demographic, interests and

behaviours will enable retailers to give consumers the customised offers they demand. However, marketers will need to ensure that every consumer can decide on how much personal data they are prepared to share. Security will remain a critical area. Some of these obstacles will fade over time as people become used to mobile purchasing; others will require concerted action.

In the wake of this mobile storm, purchasing will have become a multi-device, multi-channel journey. The benefit to retailers will be a world where their products and services are intelligently marketed to consumers’ personal devices, increasing the likelihood of conversion and purchase.

For consumers, a world where they can enjoy contextually relevant content and marketing about the products and services they really care about.

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ANALYSIS

4G

Telco wars The deal to let Everything Everywhere reuse some of its spectrum to get an early start on offering 4G services has sparked a massive row among UK operators.

But does it actually serve them and consumers well? Paul Skeldon reports

UK based Everything Everywhere has been granted permission to reuse some of its existing 1800Mhz spectrum for LTE services after waging a fairly intensive PR campaign to support its application, a process known as refarming. The move has, however, elicited a robust response from Vodafone, that sees the move as anticompetitive.

The move – which simply modifies EE’s license rather than making the company apply for a new 4G one like the other operators – could give the company, which owns the Orange and T-Mobile networks in the UK, a head start in deploying commercial LTE services over its rivals who are waiting for the delayed LTE license auction to start next year.

Ofcom’s actions have enraged Vodafone, which has released a statement saying it is “frankly shocked that Ofcom has reached this decision”.

The statement continues: “The regulator has shown a careless disregard for the best interests of consumers, businesses and the wider economy through its refusal to properly regard the competitive distortion created by allowing one operator to run services before the ground has been laid for a fully competitive 4G market.

Ofcom’s timing is particularly bizarre given the reports that Everything Everywhere is currently in discussions to sell some of its spectrum to 3, which Ofcom has previously been at such pains to protect with its over-engineering of the 4G auction.

“This means the balance in the auction

will fundamentally change. The regulator has spent several years refusing to carry out a fair and open auction. Now its decision today has granted the two most vociferous complainants during that entire process a massive incentive to further delay it.

“We wholeheartedly support the Secretary of State’s call for the 4G auction to occur in December and look to the regulator to finally do its job and produce a competitive market for 4G services as soon as possible. We firmly believe that a fully competitive market for 4G services is in the best interests of Britain.

“We have already committed ourselves to reach 98% of the UK population with indoor 4G services by 2015 – two years before Ofcom’s own target – but we need to acquire spectrum in the auction to achieve this. Ironically, all that stands in our way right now is the regulator.”

In a statement explaining its decision, Ofcom acknowledged that the company would gain a competitive edge, but concluded that “any such advantage is unlikely to result in an enduring advantage which distorts competition to the detriment of consumers”.

Morgan Mullooly, spectrum specialist at Analysys Mason admits that “Ofcom’s decision is really rather startling – if not completely unexpected. Although Ofcom gave an initial informal knee- jerk headnod to the proposal [to permit EE to use its 1800MHz spectrum for LTE] when it was first raised, it postponed making a decision at that time due to the overwhelming objection to the plan by Everything Everywhere’s competitors.”

According to Mullooly: “It is possible that some of Everything Everywhere’s rivals might launch a legal challenge against the decision. Vodafone in particular has adopt-

ed a very rueful, if not adversarial tone.

Its press release, which uses the phrases ‘bizarre’, ‘careless disregard’, ‘refusal to properly regard the competitive distortion’ ends with the lament ‘all that stands in our way right now is the regulator’. However the operators are expecting the auction to perhaps take place in December 2012/ Q1-2013 so it may not be worthwhile to pursue legal action.”

While there is no hard set date for the auction, any litigation could potentially push the auction back further than three or four months. This could have the effect of lengthening Everything Everywhere’s first mover advantage (which begins in exactly three weeks) and its ability to capitalise on market share.

But John Delaney - Research Director, Consumer Mobile, IDC – believes that there is some logic to the move. “Considering first of all the international comparisons, it’s very clear that the UK has fallen badly behind other developed economies, in the availability of LTE mobile broadband,” he points out. “Europe as a whole lags other parts of the world, especially the US and east Asia. Despite being the home of the world’s first commercial LTE service (launched by Telia in Sweden at the end of 2009), Western Europe now accounts for only around 2% of the world’s LTE subscribers.”

While the network operators look set to slug it out, those in the m-commerce and telemedia markets should rejoice, believes Eric Abensur, CEO at Venda. ““The launch of next-generation mobile internet will create a huge leap in the value of the m-commerce sector,” he says. “Availability of 4G connectivity in the UK will provide huge impetus for growth of mobile commerce and a boost to retailers looking to regain connection with customers.”

Issue sponsored by WORLD TELEMEDIA MARBELLA PLATINUM SPONSOR

EVENTS

WORLD TELEMEDIA 2012

LEARN. DISCUSS. INSPIRE. Preparations for World Telemedia Marbella are now well underway, so before you all head of on holiday, here are some of the things we have planned for the show on 17-19 October world telemedia showcases the solutions, strategies, applications and technologies that connect consumers to media, content and billing they want. This is the telemedia industry’s annual trading exchange for domestic and international providers that link network delivery, micro billing technologies and other interactive functionality to an ever expanding range of content and media distribution channels.

Join more than 400 delegates for 3 days of thought provoking sessions that address the strategic issues that directly influence our industry’s ability to capitalise on current market trends and point the way towards opportunities in new markets and vertical sectors.

• Trends, Stats, Facts & Figures • Traditional & Social Media •Interactive Advertsing • Mobile Marketing • Bar Codes & QR Codes • Device Location & 2nd Screening • Essentials – Chat, Dating, Psychic etc • Services – Games & Gambling • Live Applications – Events, Sports • Virtual Goods & Games • Social Media & Premium Content Social Media & Social Voting • Social Media & Social Commerce • mPayments • PRS & PSMS• WAP & In App Billing • mCommerce & mRetail • Networking Markets • Fraud Prevention • Legal & Regulation everyone attending World Telemedia Marbella should leave having learned something new, discussed their key issues with colleagues and been inspired (or inspired themselves) with some of the most innovative uses of technology in the premium communications space. To facilitate this, we are creating a conference programme that will offer – in three very different environments around the show – the chance to do just this.

LEARN Uncover the issues, technology developments and trends that are shaping the tele- media industry, through panels, presentations and the ancient art of conferencing DISCUSS Join your industry peers to discuss, debate and shape the key issues facing the telemedia industry in a series of roundtable discussions INSPIRE Learn from what works and who is doing what innovatively with technology, servic- es and tools of the telemedia trade through a series of case studies, live demos and more on the show floor.

Who’s going to be there?

World Telemedia Marbella is going to be awash with talent from across the value chain in the telemedia sector, inlcuding: • Media, Marketing & Data Owners • Premium Content Publishers • App Development Companies • Aggregators & Resellers • Technology & Service Providers • Billing & Collection Companies • Network Operators & ISPs

Tickets are going like hot cakes so click here to SIGN UP now

Issue sponsored by WORLD TELEMEDIA MARBELLA PLATINUM SPONSOR

EVENTS

World Telemedia 2012

DAY ONE THURSDAY 18 OCTOBER DAY TWO FRIDAY 19 OCTOBER VERTICAL MARKET OPPORTUNITIES

TELEMEDIA SERVICES

10:00 – 10:30 LEARN The vertical opportunity Outlining what consumers want from mobile across a range of vertical markets 10:30 – 11:00 LEARN Interactive TV & print Drilling down into the role of telemedia in TV and print • Latest technology • Consumer trends • Social media • Traditional Telemedia services in new roles 11:00 – 11:30 LEARN Interactive Marketing & advertising Drilling down into the role of telemedia in marketing and advertising • Latest technology • Consumer interaction with ads • Social media • Traditional telemedia in new roles 11:30 _ 12:00 COFFEE & NETWORKING 12:00 _ 13:00 DISCUSS New Technology scams and fraud With new technology and services come the inevitable frauds and scams. Join in the discussion to assess: • What the new frauds are • How to overcome them • The role of regulation • Where technology fraud goes next 13:00 – 14:00 LUNCH & NETWORKING 14:00 – 15:30 LEARN Retail & Commerce The biggest opportunity for telemedia services is in retail and commerce. Through series of panels and presentations, find out • Latest trends • Market opportunities for what you do • What retailers are looking for • What consumers want 15:30 – 16:00 COFFEE & NETWORKING 16:00 – 17:00 LEARN Games, gambling and live event Games, gambling and making live events interactive is becoming a key market for telemedia services. Find out • What games companies, gambling operators and events companies are looking for • The opportunities in payments, ticketing and service delivery • Market opportunities for your existing tech 17:00 – 18:00 DISCUSS Regulation for a cross-border world As online services become ever more international and national borders start to fade, what does it mean for the regulation of the telemedia industry and how does that impact your business

10:00 – 11:00 DISCUSS Latest Developments & opportunities in Telemedia • What are the latest technologies available for traditional telemedia services • How can they be applied to new vertical sectors • What new opportunities exist for telemedia in a global marketplace… • … and what are the challenges 11:00 – 11:30 COFFEE & NETWORKING 11:30 – 13:00 LEARN Billing & Payments At the heart of telemedia lies billing and payment and now all vertical markets are looking for ways to use mobile and premium rate to collect money. Find out • What consumers want • What networks have to offer • How to use third party products • The significance of m-wallets • international payments 13:00 – 14:00 LUNCH & NETWORKING 14:00 – 15:00 LEARN Telemedia Essentials The latest developments in • Chat • Dating • Psychic & Horoscope • Adult • Lifestyle Coaching • New services • Technology and devices – and their impact • CASE STUDIES FROM ACROSS EUROPE

INSPIRE

FOR THE MOST UP TO DATE LIST OF SPEAKERS AND SESSIONS GO TO WWW.WTEVENTS.CO.UK

CASE STUDY WORK SHOP NEEDS YOU! Got a great case study from the world of interactive media, marketing, m-commerce and retail, or telemedia? Then we want to hear from you. Contact Paul Skeldon on paulskeldon@me.com

Issue sponsored by WORLD TELEMEDIA MARBELLA PLATINUM SPONSOR

EVENTS World Telemedia 2012

Proud to be platinum

world wide premium telecom (WWPT) is the proud platinum sponsor of WORLD TELEMEDIA MARBELLA (17-19 October) and will be on hand to showcase what it does and taking part in industry panel discussions to help the telemedia shape how it develops and expands over the coming years.

World Wide Premium Telecom is an International Premium Rate Number provider, exploring new conditions for growth and opportunity by advertising its own and exclusive international Premium Rate Numbers over favorable destinations globally connected with aggressive share revenues and World Wide Access. WWPT has an extensive know how and a recognized track record of 10 years in the Telecommunication market, serving many renowned clients from countries all over the world and being interconnected with over 70 Tier 1 Carriers.

Our technical/Premium Telemedia experience enables us to provide technical support lines, Voting Lines, Horoscopes, Tarot reading And Fortune Telling, Competitions, Live or virtual chat services, including: • World Wide Access To Global Destinations • Over 70 Tier 1 Carrier Interconnects • Exclusive IPRS Number Ranges • Direct Wholesale Routes • Voting & Competitions • Conferencing Services • Roaming SIM Cards • Tech Support Lines • Horoscope & Tarot • Live & Virtual Chat • Stats Panel • IVR MEET WWPT @ WORLD TELEMEDIA MARBELLA

Issue sponsored by WORLD TELEMEDIA MARBELLA PLATINUM SPONSOR

EVENTS

AD:TECH LONDON 2012

What to look forward to at ad:tech London 2012 Meet with the MailOnline, MediaCom, The Drum, BIMA, MMA, GroupM, IDM, American Airlines and many more to discuss strategy for free at the ad:tech London exhibition 19-20 September 2012, the National Hall, Olympia. many brands are still figuring out their digital strategies and assessing which technologies and trends are just passing fads, and which are truly applicable. And perhaps that’s the best argument for attending this year’s content-rich ad:tech 2012. Find out how to increase your reach and save money with keynotes the MailOnline and American Airlines, 170 exhibitors and more than 70 specialist seminars.

Free-to-attend features MailOnline The world’s most popular newspaper-owned website. Martin Clarke, who has led the online newspaper’s immensely successful growth strategy for the past four years, will share his experiences and answer your questions in an exclusive, free-to-attend keynote.

American Airlines developed a series of apps that focused on the “day of travel”, providing services to facilitate the gaps between home and airport, and airport and destination. Hear about the delays and roadblocks and more importantly, how they were overcome.

Journey through the design, development, release and results in this inspiring, free-to-attend keynote presentation.

The Digital Hall of Fame ad:tech has teamed up BIMA and The Drum magazine to recognise creative and technical pioneers in the UK’s first Digital Hall of Fame. On 19 September, 20 inspirational and influential Britons will be inducted into the UK’s first Digital Hall of Fame. Come along to find out who is being celebrated and why.

Digital 100 announcement ranks agencies on their UK fee income from digital activities for the most recent

complete year of audited accounts available to them. It also highlights the top marketing agencies, top designand-build agencies and highly ranked technical agencies.

The top 100 agencies for 2012 will be announced on 20 September in the Headline Theatre.

Four seminar theatres including the Headline Theatre, Mobile and Social Theatre, Display and Social Theatre and Online Media and Direct Marketing Theatre. There are more than 70 seminar sessions taking place over two days. Take away crucial tips and tricks, ask the experts for specific advice and pick up practical ‘how-to’ information to take away.

Mobile and Innovation Hub A centre of excellence for mobile and creative. Meet with digital gurus who will guide you through some of the most important new developments in digital promotion.

MMA Pavilion From marketing directors to online marketing strategists, ad:tech has joined forces with the Mobile Marketing Association to showcase the latest mobile innovations. Buyers come to source mobile solution providers, network with industry peers and hear from mobile experts.

Google will be speaking about its answer to the publishers’ dilemma of how to give access to premium content without charging customers.

Google Web Lab In July 2012 Google opened its Web Lab at the Science Museum in London. The participatory exhibition features five installations that allow visitors to use, play, create and share with new, existing and refreshed software and hardware.

Get the lowdown on Google’s big 2012

adventure from its creative director, Steve Vranakis.

MediaCom social media technology thought-leadership interviews containing ideas and insights that brands can use to enhance their social media development strategies. The interviews take a look at key changes in the social media technology landscape and implications on the way brands engage with its customers.

The strategic paid-for conference The conference and its various components digs deeper, with your chance to question brands and organisations, such as the BBC, Gucci, ITV, LivingSocial, Telefonica Digital and Sony Music.

The theme of this year’s conference is: ‘Digital is The bigger picture: When will brands catch up?’

Keynotes feature exclusive content on the most current trends from the most successful practitioners. Brands presenting will be: • Charles Eklund, LivingSocial, head of product and business operations • Omid Ashtari, foursquare, business and development director for Europe • Phillip Easter, American Airlines, director of mobile apps • Martin Clarke, MailOnline, publisher • Matthew Hawn, Last.fm, VP for product Case studies offer detailed insights and results on specific campaigns and strategies. Brands under the microscope are: • Martin Vovk , Sony Music, insight manager • Amanda Farnsworth, BBC, project executive for London 2012 • Micael Barilaro, Gucci, worldwide digi-

Issue sponsored by WORLD TELEMEDIA MARBELLA PLATINUM SPONSOR

EVENTS World Telemedia 2012

tal project coordinator • John Parslow, Nissan Motors GB, UK marketing communications manager • Luke Mansfield, Samsung, head of product innovation Panel discussions bring together multiple perspectives on the contentious or complicated issues. Brands include: • Christelle Chan, Hotels.com, marketing director • Gareth Capon, BskyB, product development director • Chris Schaumann , Nokia, global director, digital and social capability development • Ottokar Rosenberger, eHarmony, UK country manager • Jonathan Allan, Channel 4, sales director Also included in your conference pass is GroupM University, which will be showcasing agencies from within its network and giving attendees the benefit of its expertise in the areas of search and more.

Real-Time Advertising Summit Realtime advertising is the vehicle to rediscovering value in digital advertising. This summit is a chance to learn the essentials, to review what’s coming next and to determine how we can further work together to move the industry forwards.

Mobile Video Summit Hosted by Brightroll, this programme is tailored towards the need-to-know for this year, the summits are limited capacity to provide an intensive learning and networking experience for all attendees.

Getting your share of those clicks involves taking the pulse of innovation, a natural curiosity and the constant evolution best practice. Join ad:tech London 19-20 September to get the answers you need for your business.

Register at www.ad-techlondon.co.uk

Who’s speaking?

The theme of this year’s conference is: ‘Digital is The bigger picture: When will brands catch up?’ According researchers at the Boston Consulting Group , 23 per cent of all purchases will be executed online by 2016. The UK web economy is predicted to expand at a rate of 11 per cent year for the next four years, reaching a total value of £221bn by 2016. This will make it a stronger industry than the healthcare, construction or education sectors.

Facts like those above appear in the media and in reports on a regular basis, and yet many brands still show very little real understanding of the digital environment in which they’re operating. Large companies are particularly at risk of falling behind and failing on the expectations of their consumers. ad:tech London is an opportunity to make improvements for all business operations and maximise exposure to future profitability. How can brands, particularly large, encumbered enterprises, begin the path to transformation? What can be learned from start-ups and SMEs? How can uninhibited infrastructure (e.g. cloud services) assist? And how can agencies, partners and providers assist & support them along the journey?

Based on all this, the ad:tech London conference programme is put together by the industry, for the industry. ad:tech works in consultation with a number of key industry thought leaders, including: Google, Unilever, Millward Brown, The Drum and Manning Gottlieb OMD. ad:tech London aims to connect professionals from different sectors of the market based on feedback on previous work and recommendations on the hottest companies and names the event should be partnering with.

This year, the first round of ad:tech speakers include: • Martin Vovk , Sony Music, insight manager • Martin Clarke, MailOnline, publisher • Amanda Farnsworth, BBC, project executive for London 2012 • Phillip Easter, American Airlines, director of mobile apps • Christelle Chan, Hotels.com, marketing director • Tom Curtis, MediaCom, creative director and head of MediaCom Create, MediaCom Beyond Advertising • Charles Eklund, LivingSocial, head of product and business operations • Omid Ashtari, foursquare, business and development director for Europe • Matthew Hawn, Last.fm, VP for product • Andy Mihalop, MoneySupermarket.com, head of digital • Chris Schaumann , Nokia, global director for digital and social capability development • Justin K Small, Detica, head of digital strategy • Bertie Stephens, Flubit, CEO & co-founder • Matthew Willcox, Draftfcb, executive director at the Institute of Decision Making For a full list, please visit: www.ad-techlondon.co.uk/speakers

Telemedia Industry Directory International Premiums

txtNation

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OpenMarket

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*

ellisons

Ellisons

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Get your company listed here Contact Jarvis Todd on Tel +44 (0)8707 327 327 or email jarvis@telemedia-news.com

Telemedia Industry Directory Xonadu

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Oxygen8

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tyntec

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ImpulsePay

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Trodat Telecom

Your direct source for the industry’s most reliable international premium rate numbers

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EG Telecom

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Kwak Telecom Ltd

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Orca Digital

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Get your company listed here Contact Jarvis Todd on Tel +44 (0)8707 327 327 or email jarvis@telemedia-news.com