Telemedia Month Newsletter January 2015

Issue 58 • JAN 2015

Greater investment in mobile marketing a top priority for 2015

News

THIS MONTH...

• Mobile an essential part of travel says study as Virgin launches Lucy as proof

3 • Mobile casino gaming boomed in 2014 – and the future is apps 4 • There are now more than 1bn tablet users worldwide 5 • Christmas 2014 a boom for mobile in e-commerce, studies show 6

Analysis EDITORIAL Charge to mobile’s year 2015 is going to be the year that mobile payments takes off – and carrier billing, or charge to mobile as we are now calling it, is going to lead the way, says Paul Skeldon 7

MORE THAN HALF of senior decision makers within retailers and brands feel that their investment in digital marketing is not sufficient, with 87% of respondents planning to increase their investments in mobile marketing.

So finds an international study carried out by WBR Research in the UK, France, Germany and the Netherlands on behalf of RetailMeNot, marketplace for digital offers and operator of VoucherCodes.co.uk.

In response to marketers’ most important expressed objectives to drive sales (74%), acquire new customers (72%) and increase website traffic (37%), marketers are continuing to increase their investment in digital marketing. Of the businesses surveyed, 92% plan to increase digital spend in the next 3 – 5 years.

The study found that the majority of brands are now investing in some form of digital marketing activity, with 66% of marketers currently investing more than 50% of their budget on digital.

While marketers surveyed use on average eight different marketing channels, there is a clearly a shift from traditional advertising strategies to more targeted, digital marketing tactics to attract consumers.

The most popular digital channel for marketers is email, which is touted as the killer outbound channel for marketers in the digital age. The popularity of email as a digital marketing tactic is closely followed by social media and paid search.

The study reveals that 8 out of 10 marketers are seeing much higher ROI for digital marketing channels, compared to traditional channels. Just 25% of the surveyed companies are investing in radio and only 30% in billboard advertising.

The study also confirms the growing importance of mobile, with 87% of respondents

OPINION Can regulation save you money?

Alex Saunders. marketing specialist at Slap-up Marketing takes a look at how being aware of regulations and acting proactively can save your bacon 8

OPINION VATs Entertainment Paul Skeldon takes a look at how changes to EU VAT rules for digital cross border services may affect telemeedia businesses

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ANALYSIS Six m-comm predictions for 2015 Well, it is January... so let’s get out our crystal balls. Here experts at NN4M take a look at the six key trends in m-commerce in 2015

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DIRECTORY

The leading industry directory of services 12

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NEWS #TRAVEL Mobile a key part of travel, study finds as Virgin Hotels taps in with an app called Lucy THE USE OF MOBILE within travel – whether for leisure, business or commuting – is rapidly become the norm as consumers and business people turn increasingly to mobile devices when booking, travelling and working.

So finds research amongst 1500 respondents from 25 countries carried out

by BuzzCity, which finds that the number of mobile users travelling for business travel has tripled within a year; from 9% a year ago to 24% at the end of 2014.

Between business and leisure a total of 33% of respondents travel internationally, indicating that the role of today’s global workforce often involves frequent domestic and international travel.

Results found that 1 on 4 use their mobiles to book (28%) or pay (24%) for their daily commute; double the figure from 2013. Also notable is the increase ( 50%) in mobile use across business and leisure travellers; 30% rely purely on their mobiles to make last minute bookings, making it the most preferred device for ticket or room bookings.

While on holiday, 1 in 5 ( 21%) travellers choose to remain ‘unconnected’ during their holidays , while over a third (40%) stated that their phone is the most used recreational device for passing the time, to stay in touch with friends and family (29%) and keeping up with work (22%).

Mobile is also a key tool for research and getting around, with 1 in 5 (24%) using

their phones to find out about local tourist information, restaurants and attractions.

“Multi-channel surfing has resulted in higher demand for access among travellers and meeting this demand may yet be business critical for airports, hotels and public transport services”, Dr KF Lai, founder and CEO at BuzzCity says. “Free Wifi is no longer a perk and more hotels will see this as a game changing move for their businesses” Mobile has transformed the way consumers do pretty much everything; travellers begin their journeys armed with devices such as smartphones, tablets and laptops. In the coming year, the report predicts, it’s going to be even more prevalent in the travel industry and operators must consider ways to facilitate access to all the information that travellers need. Adapting to this is an essential step for to remaining relevant with the next wave of leisure and business travellers.

Rising to this challenge already is Virgin Hotels, which has launched Lucy a mobile app that allows guests to integrate their device into their hotel experience.

Lucy will give users a seamless and customised stay by transforming their digital ecosystem into a personal hotel assistant by fulfilling requests for services and amenities, functioning as the room thermostat, streaming personal content and more.

Doug Carrillo, Vice President of Sales &

Marketing, Virgin Hotels, explains: “Our mobile app Lucy, will put guests in the captain’s chair. The technology will be smart and intuitive, and light the way to a more immersive experience within the hotel. We can’t wait to build upon the platform as the brand and our guests’ needs grow.”

Lucy will put many aspects of the hotel experience at guests’ fingertips, before during and after their stay.

Functions include: • The ability to make room reservations and check-in • Adjust room climate within the Chamber • Stream personal content onto guest Chamber televisions • Video and Audio on Demand curated by Virgin • Transform a guest’s smart phone into the TV remote • Serve as the Chamber phone to reach concierge, front desk or dining outlets • Live chat with staff or other guests via the hotel’s chat room and message center • Request services such as in-room dining, housekeeping or additional pillows while in the hotel or about • Make dining reservations at the hotels venues • Step Outside section with recommendations from the local staff • Check out.

The mobile app will also be linked to the recently announced Virgin Hotels preference programme, The Know. By completing The Know questionnaire and using Lucy, guests can request their preferences including what items they want to find (and not find!) in their mini bar.

>>>from page 1 Mobile marketing boom in 2015 planning to increase their spent in this area. While the vast majority of the respondents (71%) aims to drive ecommerce sales directly on these devices, they also acknowledge that the final conversion may happen on a different channel (63%).

Nevertheless, 1 out of 10 surveyed retailers (9%) still don’t have a mobile strategy at all.

Despite this general excitement about mobile marketing, many surveyed retailers appear little confident about their mobile own offering. While most businesses are satisfied with their desktop service and 2 out of 3 even feel that they’re ahead of their competitors, they are doubting their mobile apps and websites.

This is particularly true in the UK , where more than half of respondents (56%) feel that they’re behind the curve with regards to their m-website and 7 out of 10 (70%) feel that their mobile app is not as competitive those from other businesses in their industry.

In a competitive market, many of the marketers surveyed admitted to having concerns over their use of digital marketing channels compared to competitors, and 63% of respondents feel

they could be taking more advantage of digital marketing.

As a result, these marketers are looking to harness new technologies in order to fight for market space. When asked, 52% of respondents said they were willing to invest in new technologies before they had been tested for ROI in an attempt to maintain a position ahead of their competitors on the mobile channel.

Giulio Montemagno, SVP of Intertational RetailMeNot comments: “European retail has been characterised by strong growth in online and mobile shopping in recent years. As a result, marketers are racing to discover the most efficient means to attract and satisfy new customers in the digital environment, all the while enriching and personalizing the customer experience across all channels. The survey confirms the marketers’ enthusiasm for the potential of current and future digital marketing opportunities, despite the fact that almost two thirds of the respondents feel that they’re not yet using these technique to their full potenial.”

NEWS #GAMING Mobile casino gaming boomed in 2014 – and apps are the way forward

THE MOBILE GAMBLING market is experiencing a meteoric rise, as the online gambling industry jumps on mobile as a key channel for expansion.

According to data from App Annie Intelligence, worldwide revenue from the iOS Casino game subcategory increased 55% in the 12 months to November 2014, with the UK presenting a significant slice of this growth.

In its new spotlight report focussed on the UK casino gaming market, App Annie

reveals the UK is outpacing worldwide Casino subcategory growth for downloads and revenues. Between November 2013 to November 2014 in the UK, the Casino subcategory exceeded 60% revenue growth and experienced approximately 10% growth in downloads, while Worldwide remained flat.

Despite consolidation, the revenue from the Casino subcategory became less concentrated within the top 10 companies over the past year, indicating the market is still open to new and rising competitors.

However, the top 10 companies in the Casino subcategory still generated the majority of revenue, producing around 65% of the subcategory revenue in November 2014.

“The United Kingdom is one of the key markets for mobile casino gaming

publishers, as it is one of the few that offers real money gambling through iOS App Store apps,” explains Olivier Bernard, VP EMEA at App Annie. “For the mobile casino gaming industry, apps are becoming a key channel as they offer substantial benefits in user experience over mobile web. By allowing alerts and reminders, apps can give a level of engagement not possible with web-based gaming. As a result, mobile casino gaming has experienced significant growth over the last year.”

According to the report, the top companies in the UK mobile casino gaming market are primarily specialist social gaming or casino gaming publishers, rather than bookmakers that have expanded to the sector. The top games across the iOS and Google Play Casino game subcategory were generally well-established apps released several years ago, but showed a consistent trend for regular updates to introduce new gameplay features and optimize user experiences.

NEWS #DEVICES Tablet users to surpass 1billion worldwide in 2015, study predicts MORE THAN 1BILLION people worldwide will use a tablet in 2015, according to new figures from eMarketer, representing nearly 15% of the global population and more than double the number of three years ago.

By 2018, the number of tablet users in the world will reach 1.43 billion.

This is the first time eMarketer has made projections for the number of tablet users worldwide. The key takeaway is that growth in the global tablet-using population will slow dramatically in 2015 and continue to taper off.

The total number of tablet users is expected to increase by 17.1% this year, and while this figure is healthy, it pales in comparison with year-over-year gains of 54.1% in 2013 and 29.1% in 2014. By 2018, the growth rate for new users will be just 7.9%.

A key factor for this slowing growth is that the current number of users is

skewed by an abundance in developed markets. As those markets mature, growth in emerging markets is not expected to pick up much slack.

Three trends influence this conservative outlook: • Tablets continue to be perceived as luxury items in terms of price.

• Tablets face increased competition for people’s time not only from smartphones but also a widening array of connected devices, including phablets, wearables, connected TVs and dedicated gaming devices, particularly in late-adopting countries like Japan and South Korea.

• The use case for tablets is not always clear, particularly in markets where smartphone and phablet usage is robust.

“The shared nature of tablets and increased competition from other connected devices reduce the likelihood that the tablet audience will match

the size of the smartphone audience worldwide,” said Cathy Boyle, senior analyst at eMarketer. “The most limiting factor is the use case for a tablet: It is not as clear-cut or compelling as a communication tool, the core capability and use case for a smartphone.”

China will be the world leader in terms of tablet users in 2015, with more than 328 million consumers accessing these devices at least once per month — nearly one-third the world’s total. The US is a distant second, with fewer than half the number China has.

Here are four other key facts in each of the next four years in the forecast: • 2015: Brazil will surpass the UK to become the fourth-largest market.

• 2016: Indonesia will enter the top five, reaching nearly 38 million tablet users.

• 2017: China will have more than 400 million tablet users.

• 2018: Nearly 20% of the world population will use tablets regularly.

NEWS #RETAIL Christmas a watershed for m-commerce, studies find

LOOKS LIKE ITS been a very mobile Christmas this year, with iPhone, Android and iPad retail app transactions between 21st of November 2014 and the 4th of January 2015 up 40% on the same period last year, as shoppers increasingly turned to devices to shop online.

So reveals figures from NN4M, a leading Edinburgh-based mobile apps specialist that works with some of the biggest retailers in the UK including River Island, Debenhams and Mothercare.

Delving deeper into their figures, NN4M saw a 250% increase in Android app sales and a 37% increase in iPhone app sales over the same shopping period.

When comparing sales overall for 2014 compared to 2013, NN4M found that Android showed by far the strongest growth with a 206% increase in like-forlike sales, while iPhone grew by 67% and iPad grew by 58%.

“While many retailers have reported overall sales dips compared to 2013, we’re thrilled to see a significant increase in native mobile app sales through the Christmas shopping period,” said Carolyn Burnett, CEO of NN4M. “We expect 2015 Christmas sales to be even more mobiledriven.”

These statistics correspond with industry data from Flurry and ComScore that shows more purchases were made using smartphones over the Christmas shopping period than ever before.

Following the record-breaking £810 million spent online on Black Friday, the combined £1.3 billion online sales predicted for Christmas and Boxing Day show that retailers who are lacking a comprehensive mobile strategy will miss the bulk of seasonal sales altogether, says Dan Wagner, founder and CEO of Powa Technologies.

Online retail association IMRG and

information services group Experian have predicted that online sales will reach more than £636 million on Christmas Day, and £748 million on Boxing Day, with a peak of £519,000 being spent per minute across 167 million retail sites on the second day.

The group highlights the importance of smartphones and tablets in driving the trend, with many consumers likely to receive new mobile devices for Christmas and then immediately use them to browse retailers.

Dan Wagner, eCommerce CEO of Powa Technologies, comments: “This has already been a truly watershed year for mobile commerce, and the vast amount of sales expected to take place online over Christmas and Boxing Day will truly cement 2014 as a turning point in retail.

“Between this and the phenomenal level of online sales seen from Black Friday right through the season, orchestrated discounts have clearly succeeded in attracting shoppers online, but providing an enjoyable shopping experience will prove to be equally important. Shoppers now see hunting for bargains on online and mobile sites as a fast, fun activity to dip into anytime, and retailers must be equipped to make the entire process as easy as possible”.

Speed and ease have become primary factors in physical retail as well, with a year-round trend for shoppers to fit their purchases into shorter time periods around their busy lives. High street retailers are braced for heavy traffic in the “golden hour” between 1pm and 2pm today as many consumers make a lastminute dash to purchase Christmas gifts.

Wagner adds: “Avoiding crowds and long lines at the tills is a major factor in the growth of online sales, and the traditional checkout system can turn the retail experience into an incredibly tedious one. Retailers must explore ways to combine their bricks-and-mortar and mobile strategies to bring the same level of ease and flexibility to their stores, regardless of how busy they are”.

OPINION

FROM THE EDITOR

Charge to mobile’s year 2015 IS GOING TO BE THE YEAR OF MOBILE PAYMENTS. There I have said it. And yes, I know, I said it at the start of 2014 too. I even mentioned it at the start of 2013. But this year it will definitely be the year we see mainstream adoption of mobile payments.

NFC-based consumer payments in store are likely to get 5% uptake max in the coming year, predicts Deloitte TMT, but this will start a snowball effect. It is even likely that Apple Pay will start to appear in the UK this coming year too, further driving the snowball.

But this isn’t where we will see the boom in mobile payments. What is going to happen is that there will be an explosion of payment tools arriving through the opening six months of the year catering to niches of payments.

We will see the likes of Zapp arrive – finally – to make online and m-web retail payments easy and simple to do. We will also see the growth of P2P service PingIt from Barclays grab a chunk of the P2P payment market, as well as helping people to pay their utility bills by linking the phone to the bank account.

We may also see the likes of PowaTag and similar services make the payment process simple and easy for buying clobber. And we will certainly see barcode scanning ways of paying restaurant bills.

What all this means is that slowly and almost by stealth, consumers will start to use their device to pay for things.

And this is the catalyst that the telemedia industry needs. This demonstrable convenience of mobile as a payment device – however it may be made to work – will be what makes charge to mobile take off. OK, so it might initially be limited to digital goods and services, but it will soon become the way to pay for digital access, time and eventually even low value goods.

How do I know this? Because, at last, all the ducks are in a row. The use of carrier billing for in-app purchases is growing world wide and soon it will be pushed out across the board – when businesses realise just how straightforward it is.

But what is needed is education. And that is where Telemedia-news comes in. Starting this year we are extending our remit, dear readers, to reach out fulsomely to all the kinds of vertical sector businesses that can make use of charge to mobile.

There will be a new look website coming soon, plus a host of events and publications which we shall be revealing in the coming weeks and months. But more than that there is going to be the growth in our circulation. We shall be reaching out to all those people that can start to use this tech.

So 2015 is going to really be the year of mobile payments – and we are going to make that happen.

Understanding charge to mobile AIME and the UK’s MNOs are running a workshop at The Hoxton, Shoreditch between 10 and 4 on 19 January as part of London Mobile Games Week to spread the word about Charge to Mobile.

The intent of the workshops is to help apps developers understand the capabilities of Charge to Mobile and apply it to their apps that they will develop for clients.

Book your place here http://www.londonmobilegamesweek.com/2015-events

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 Second Coming, The Stone Roses (a very underated album!)| What we’ve been amused by W1A| Who we’ve been following @etail| What we’ve been reading about Revolution!| JANUARY 2015 will bring... some exciting news about telemedia-news

OPINION REGULATION

Regulation

CAN IT SAVE YOU? Alex Saunders, Marketing Specialist at Slap-up-marketing, takes a look at how being aware of regulations and acting proactively can save your bacon – it certainly has worked in gaming

THE TELECOMS INDUSTRY faces government oversight in a way that few others do. Perhaps this is a reflection of the public importance of safe, private and reliable communication; but large companies face a constant threat of tripping over red tape.

In order to be able to securely plan for the future, telecoms companies need to take active steps to keep regulators at bay.

Even seemingly “trivial” mistakes can have severe consequences, so telecoms professionals have a responsibility of vigilance where compliance issues are concerned.

Ofcom, the UK’s telecoms regulator has a huge degree of power to punish errant licensees. Acting under a broad mandate which includes protecting consumers and maintaining competition, Ofcom has in recent months fined marketing companies for “abandoned calls” and also taken action against relative behemoth Three, for improperly handling complaints.

The latter case is a good example of how internal policy could have avoided a run in. Three was fined for failing to resolve complaints, and failing to make consumers aware of an alternative dispute process. Had someone at Three properly understood Ofcom’s requirements, and disseminated that information widely; the company could have avoided a £250,000 fine and Ofcom’s ire.

Another of Ofcom’s responsibilities is data protection – two words which can make most companies quake in their boots.

Aside from legal protection of private data, Ofcom also states how personal data should be stored. In a large company with poten-

tially millions of clients, thousands of staff and dozens of databases proper protection can be a nightmare – but regulators rightly take it incredibly seriously.

Fines of up to £2m can be imposed for data breaches, which also drive away customers.

Of course there is no fool-proof way of keeping personal data secure, but best practice involves ensuring it is securely encrypted, and that security measures both external (firewalls etc) and internal limit the ability of anyone to access data they are not entitled to.

One industry which is frequently held under tight scrutiny is gaming, where regulation is normally in the hands of national commissions. The UK’s Gambling Commission lays down tight requirements before a licence is issued; including a code of social responsibility, and the requirement to prevent under-aged or vulnerable people accessing gambling products.

The most frequent run-ins between casinos and regulators come in the area of player protection. Operators are required to respect and uphold “self-exclusion” requests from players and prevent children accessing their services; far more easily said than done.

The best operators have taken proactive steps to screen customers at the registration stage, avoiding costly fines or legal battles down the line. Take the example of GamingClub, which uses both statistical and human intelligence to exclude undesirable players.

Responsible casino behaviour is something that customers definitely warm to, if only because it is quite rare. By taking steps to pre-emptively avoid regulatory problems, operators can build their brand and long term stability.

In the telecoms industry, regulation is simply part of the landscape. By helping your company create procedures to ensure strict compliance you may not only save needless fines, but contribute to its long term survival.

OPINION REGULATION

VATs ENTERTAINMENT

NEW EU VAT RULES Paul Skeldon takes a look at how changes to EU VAT rules for digital sales across borders may – or may not – affect the telemedia business ON THE 1ST JANUARY 2015 the laws regarding VAT across Europe will change, with any one selling digital content having to charge VAT at the rate of the country where the consumer of that content resides, rather than where the merchant is based, as has thus far been the case.

But chaos reigns. Speaking in a webinar, hosted by on-line VAT compliance specialists Taxamo, HMRC emphasised that it expect e-commerce platforms, payment service providers, web stores and online marketplaces to manage the technical aspects of VAT accounting for their merchants, when the new rules on VAT for electronic services become law.

What does this mean for telemedia companies? Well, hopefully nothing more onerous than a raft of extra paper work. For most PRS and PSMS services, VAT was taken by the MNO, so its up to them, not the service provider, to sort it out.

But there are some headaches. Services charged to Payforit now have to be switched to charge VAT in the country of service consumption, so billing companies are going to have to tackle this issue, which will make a simple task much more complex.

Determining the place of supply is also going to cause headaches with mobile users. A consumer may be looking at adult services on a mobile in, say Marbella, but since he has a UK SIM the VAT is UK rate. Working this out will be trickier and time consuming.

The record keeping is also going to be a nightmare, warns AIME MD Rory Maguire. “The MNO has to keep records of the parties that they passed the VAT over to and those parties have to keep records of their pass through etc… down the chain, so that HMRC can trace the money flow. The Merchant also has to send a receipt with contact details so that the consumer can get a VAT receipt if they wish. Inside Payforit, a receipt is sent for each transaction, so that requirement is in place.”

But spare a thought for the bigger players in the e and m-commerce markets. With only 20-odd days to go, customers of PayPal, eBay, Etsy and similar platforms are desperately turning to online forums to get clarification on how these services will implement the changes needed to make it possible to continue to trade legally.

“Platforms realise that they have an obligation to make sure they take on the tax accounting responsibility for people selling digital services,” said Andrew Webb of HMRC. “If after the 1st January, the position has been left unclear then of course it moves into, potentially a compliance issue that we and other tax authorities would have, with the platform, not with the individuals using the platform.”

Yet major services including, PayPal, eBay and Etsy are still to make statements outlining how they will take the necessary steps to enable businesses using their platforms to comply with new tax law and account for VAT due via the new MOSS (Mini One Stop

Shop) system that HMRC have established to simplify compliance.

Replying to concerned users in the Etsy.com support forums ‘Patrick’, manager of international support for Etsy.com said: “I’m sorry to say that we still have no further news to give you regarding this issue.”

PayPal is offering its customers who know how to use its web developer tools just one of the two pieces of location information that the law require for every transaction under the new rules.

They are not however offering a way for customers to comply through its normal user interface. eBay has questions being posed in its support forums, but have provided no obvious public statements on the issues raised.

“We welcome HMRC’s clarity on the need for the online platform providers to take responsibility for facilitating merchants to trade tax compliantly,” said John McCarthy, CEO of Taxamo.

“However, with the increased level of business awareness, and such clarity from the authorities, there really is no excuse for online sellers being left in the dark over how the platforms and payment services that they rely on are going to deliver what the law requires in order for them to trade legally.

With 23 days to go there is still time for the platforms to communicate on how their systems will work to meet the requirements, or should a compliant service not be in place, to integrate an off-the-shelf compliance system, such as our own, to immediately support merchant compliance.”

What are the changes to VAT that will take place on the 1st of January 2015?

From January 1, 2015, suppliers of broadcasting, telecommunications and electronic services (BTE) to customers in the EU will have to account for VAT based on where their end customer (non-taxable person) resides. The changes are based on Council Directive 2008/8/EC (the ‘EU VAT Directive’).

In principle these rules already exist for non-EU suppliers, the key change is that EU businesses must now account for VAT on B2C cross-border sales from January 1, 2015. Only B2C sales are affected.

ANALYSIS 2015 TRENDS

Six m-commerce predictions for

2015

It’s the time of year when we like to take a breath and look ahead to the exciting trends for the coming year.

Here experts at NN4M outline what he thinks are the six big things retailers can expect to see from mobile this coming year ACCORDING TO Forrester, 42% of the global population will own a smartphone by the end of 2015. The highly advanced computers in our pockets are quickly replacing their desktop forebears. Already much more time is spent on mobile apps than on the Web. Mobile has reached a tipping point in 2014 as it solidified its position as one of the most disruptive technologies for businesses in decades.

While some merchants may shy away from mobile, many others are now seeing it as an opportunity to better engage with their customers, adopting a “mobile first” mind set. As we’ll explain, the need for a cross-device, mobile-first retail strategy will become even more apparent in 2015.

1. PAYMENTS We expect 2015 to be the year that mobile payments begin to move into the mainstream. The battle to enhance and simplify the checkout experience will intensify as technology giants, established payment providers and disruptive newcomers contend for restricted space in retailers’ mobile checkout journeys.

Ultimately, the success of these new forms of convenient payment will depend on both customer and retailer adoption. If customers demand effective mobile payment capability, retailers will have to fall in line and adjust their approach to cater to the modern consumer’s needs. If Apple Pay does succeed – and its reputation and advancements in security, product design and customer understanding give it a very strong chance – this moment will be looked back on as a turning point in the retail payments arena.

Apple Pay and Zapp have stolen much of the limelight on this, and there is always Google Wallet , PayPal and more in the wings. What will win out no one knows.

US retailers, through a consortium formed in 2012, are building their own mobile payment app called CurrentC that cuts out credit card companies and gives them control over all transactional data. It’s expected to launch in 2015. In the interim, these retailers have no intention to adopt Apple Pay. On this side of the Atlantic there is an app in development similar to CurrentC. It goes by “Zapp” and promises to cut credit card companies out of transactions, saving retailers a small percentage on every transaction. It works by taking money straight out of customers’ debit card accounts through a bank’s mobile app and passing it instantly to the retailer. Zapp, which is expected to launch in 2015, already has a range of partners signed up, including Sainsbury’s, WH

Smith, McDonalds, House of Fraser and ASDA. It also has HSBC, Santander, First Direct, Nationwide and several other banks on board, which will give 18 million customers across the UK access to the service. Unlike CurrentC though, Zapp has confirmed that it’s not looking to block Apple Pay. 2. PERSONLISATION As mobile marketing technologies continue to evolve into 2015, retailers are likely to adapt their approach to reach their customers on a more personal level. In this time of connectedness, instant price comparison and choice, customers have never been more in control or harder to win over.

Consequently, it is imperative for retailers to build personalised relationships with consumers on their channels of choice. We predict that in 2015, retailers will refocus their attention on capturing capricious customers on mobile through highly segmented and tailored messaging.

To accomplish this, retailers will need to adopt a more coherent and less disjointed approach. Users will quickly get turned off by blanket, one-sizefits-all communications that do not take into account behaviour or channel preference. To get through to their customers, retailers must make use of the tools at their fingertips to follow individual behaviour across various channels and connect with customers when and how they prefer.

3. WEARABLES The idea of highly advanced gadgets you can wear has been long anticipated. It seems that finally, the technology has caught up with the expectations. We predict that in 2015, wearable technology will proliferate in a variety of styles and price points, offering retailers unprecedented opportunities to connect with customers.

The Apple Watch is the company’s first effort to enter the growing wearables market, which already includes competitors Samsung, LG, Motorola and Microsoft. Apple is aiming to distinguish its product by offering it in a variety of styles and incorporating a range of health and fitness features through its Health app.

The $349 (UK price not yet confirmed) Apple Watch is expected to enter mass production in January, though that still leaves an actual launch date up in the air. Apple’s product page for the watch still lists early 2015 as the launch time frame.

The Apple Watch will work with Apple Pay when paired with an iPhone 5 or later, but it’s still unclear how this will get around the identification problem. It’s possible that the Apple Watch could be used for low-value payments only, which don’t require identification, or that the device may have a biometric sensor of its own.

Along with its other wearable, Google Glass (still in beta), Google has released Android Wear, which is effectively the Android Watch. It requires an Android device running 4.3 Jelly Bean and above. We can do two things with the wear watch: deploy a stand-alone app that is installed onto the

ANALYSIS 2015 TRENDS

watch and runs from the watch, or communicate from the watch with an app on a phone. Android wear will also display Push messages sent to a user’s Android device.

One thing is for sure: retailers should not dismiss the Apple Watch, Android Wear, or wearables in general, as a consumer toy. It is highly possible that smart watches will become a mainstream part of the retail world. In the next year or so, we predict a strong demand for retail solutions for these platforms.

4. AUGMENTED REALITY Devices such as Google Glass, Google Cardboard, Oculus Rift and other lesser known names such as the Moverio BT-200, Sony HMZT1, Meta and Vuzix M-100 are jockeying for user attention, and you can bet that AR demand will begin to grow even further in 2015.

Topshop made a splash at London Fashion Week this year when it used specially commissioned 3D headsets to allow shoppers to view the catwalk show as if they were physically there. Participants had access to a 360 degree virtual world enabling them to watch models walk right past them and even see which celebrities they were ‘sitting next to’ at the show.

However, you may not even need a futuristic-looking headset to experience AR. Yihaodian, China’s largest food e-commerce retailer, has announced plans to open the world’s first augmented reality supermarkets in “blank city spaces” across the country. Customers who visit these spaces with a smartphone will be able to ‘see’ a fully stocked supermarket, complete with virtual ‘food’ users can scan with a smartphone to put in a virtual shopping basket and have delivered at the tap of a button.

5. LOCATION BASED MARKETING In 2015, progressive brick-and-mortar stores will implement geolocation based mobile beacons to deliver offers and way-finding to keep the in-store shopping experience from becoming outdated.

Personalised, location-based offers will be pinged to customers via their smartphones based on where they’re shopping.

Both Macy’s and Apple have already integrated an iBeacon solution in to their US stores, where consumers can interact with them in all kinds of scenarios. In the UK, John Lewis, Waitrose, Tesco and several other retailers are trialling the technology. Tesco has taken a customerservice approach to beacons, sending alerts upon entry if click-to-collect orders are ready and helping customers locate products on shelves. Virgin Atlantic and British Airways are also piloting iBeacon technology at Heathrow Airport.

6. CLOSING THE OMNI-CHANNEL GAP Connected consumers are causing a transformation in retail. These customers have access to a variety of new technologies and online resources that they are using to research product information and compare prices while in-store. Retailers are attempting to rise to this challenge by adopting an “omnichannel” approach, providing a seamless shopping experience through all channels, tracking connected customers as they move between desktop, in-store, mobile web and mobile app.

The buzzword “omnichannel,” considered to be an extension of “multi-channel,” has been gaining momentum in boardrooms and conferences throughout the world. In 2015, we foresee that this methodology will become the holy grail of all retail strategies.

Telemedia Industry Directory Masvoz Spanish leading provider in Voice Services, Micropayments solutions & Sms services

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Oxygen8 Global Billing, Communication & Mobile Services from Worldwide Offices

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Felix Telecommunications IPRN, Audiotext, Premium Rate & SMS Solutions

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telequest & Internet Solutions GmbH !!! Domestic Numbers Worldwide !!!

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Triton Global Business Services Direct Carrier Billing, Premium Fixed, Voice Short Codes, Participation TV

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Goodman Associates Advertising: digital/search/social, TV, Radio, Press & Outdoor – we make it happen!

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Kwak Telecom Ltd Leading provider of International payouts numbers & domestic premium rate numbers

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Text121Chat Premium Rate Operators Services

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Enarpee

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Contact: sales@fonix.io www.fonix.com

Heart Communications UK 24/7 Call Centre handling inbound and outbound calls

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Telemedia Industry Directory Rogue SMS Concierge VOIP Chat Fulfillment Voice & SMS Services

Contact: Email: sales@roguesms.net Call: 0121 369 1967 or 509 279 0314 USA

Preferred Telemedia

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txtNation Mobile, Billing, Payments, Content, WAP, SMS, MMS, IVR, Phone, Credit Card

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Digital Select Ltd

VoiceBlade

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Provider of quality wholesale & retail telephony applications

Contact: info@digital-select.com, Tel: 02071939700 www.Digital-Select.com

Contact: Tel 0800 031 9141 or email sales@globaltelecall.com www.globaltelecall.com

Core Telecom

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