Issue 54 • SEPT 2014
Bango enables German Amazon users to pay by carrier billing
News
THIS MONTH...
• Disney gives Mickey his own shortcode for bedtime stories 3 • Is Apple Pay the shake up of m-payments or just hot air? 5 • UK consumers 76% more likely to open m-ads than last year 7 • MIG’s Houlihan back with sports social network offering 8 • Channel 5 selects Fonix for two years of interaction 8 • Vodafone rolls out its wallet offering into crowded space 9 • Zapp ties up with charities ahead of its grand launch 9
Analysis
STARTING NEXT YEAR, O2 users in Germany will be able to use carrier billing to pay for goods on Amazon following a deal between the retailer, Telefonica Deutschland and UK billing company Bango. The news comes a month after Bango announced that it was set to power a range of carrier billing based payment services for Deutsche Telekom across a range of apps stores and content services on mobile. The move marks a sudden shift in the balance of power in European m-commerce, with Germany taking an unexpected lead in proceedings and showcasing the power of carrier billing for driving impulse purchases of not just digital, but physical goods too. Bango signed a deal with Deutsche Telekom in August for the use of carrier billing in Apps Stores. The partnership enables Deutsche Telekom to accelerate DOB deployment, bringing frictionless ‘one click’ payment for apps, music, games and other digital content, to its subscribers across Germany and other European markets. The partnership establishes Bango as a strategic partner, powering Deutsche Telekom’s payments across the range of popular app and content stores, including BlackBerry World, Facebook and Mozilla’s Firefox Marketplace. The partnership is significant in its huge reach, and in opening-up several of Deutsche Telekom’s European markets through a single point of integration. DOB enables consumers to charge the cost of digital purchases to their mobile bill, in one click, without the need for credit/debit cards, or to register personal details. DOB has emerged as the fast path to monetization for mobile content developers, and most of the world’s leading content ecosystems are racing to adopt it as widely as possible. Bango has emerged as the de facto global leader in DOB, powering many of the world’s largest app stores, including Amazon, BlackBerry World, Facebook, Firefox Marketplace, Google Play, Windows Phone store and with more than 130 live operator connections. Today Bango fulfills a vital strategic role in the app store payments space, connecting an ever-widening group of app stores and Mobile Network Operators (MNOs) to one-click
continued page 3>>>
EDITORIAL The mainstream march Carrier billing begins its march on the mainstream with Bango power Amazon Germany with on-bill payments, what does it mean ahead of World Telemedia asks Paul Skeldon 11 OPINION Is affiliate marketing safe to use? There is an early warning systems and a judicial review, so is affiliate marketing safe to use yet? Paul Skeldon takes a look 12 ANALYSIS Ready. Aim. Retarget Surash Patel from mGage takes a look at how SMS is key to the retargetting game for businesses looking to enhance their marketing through mobile 13 ANALYSIS Game on for Gaming Mobile gaming apps are driving the use of carrier billiong worldwide. Paul Skeldon talks to NeoMobile about how this is driving telemedia 14 ANALYSIS More to m-payments There is much more to m-payments than just turning the phone into a ‘fat credit card’ argues Dan Salmonds of PayPoint. Find out how 16 SHOW PREVIEW WORLD TELEMEDIA MARBELLA We give you a sneak peak behind the curtain as to what’s in store at the industry’s premier event taking place in Marbella 15-17 October 18
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NEWS >>>from page 1 Amazon operator billing. Deutsche Telekom selected Bango because of this leadership in powering payment for app stores, and the partnership is a further endorsement of Bango’s platform approach. As the company that has partnered with most of the giants of mobile, driving operator billing forward on a global basis, Bango is the natural partner as large MNOs seek to harness their billing capabilities in order to drive revenue from digital goods. More recently, Bango has launched one-click carrier billing for Etisalat across 19 countries in the Middle East and Africa, has introduced carrier billing solutions to Indonesia and have brought Facebook into the Payforit community. The Bango move stems from a deal signed in January 2013 with Telefonica Digital to partner globally to create an enhanced direct-to-bill payment experience for mobile app stores. The partnership will combine Bango’s frictionless payment experience with Telefónica’s BlueVia Payment APIs, connecting over 314 million chargeable customers worldwide to the Bango Payments Platform.
#MEDIA Disney offers bedtime call back from Mickey Mouse DISNEY IS GIVING10,000 kids the chance to hear a bedtime story from Mickey Mouse, Minnie, Cinderella or Jake and the Neverland Pirates as part of a trial to see how to use voice calls more effectively. The service is being offered to 10,000 callers or will end on September 30th (which ever is reached first) and is free to the user. They simply text Mickey, Minnie, Cinderella, or Jake to the 78000 dedicated shortcode and the service calls them back within two minutes – although this could be longer at peak times. If no one answers the service calls back three times more. If no one answers on the fourth call the call is abandoned. Disney has raft of caveats and consumer protection notes on the website for this promotion and is treading very carefully. The service is being run on a
shortcode owned by Digital Select, a check on the PPP number finder reveals, though neither Disney nor Digital Select were available for comment.
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NEWS #PAYMENTS Is Apple Pay set to shake up m-payments? Not so fast, expert warns AS THE IPHONE6 hits the shelves in Europe, Apple is looking to revolutionise m-commerce, e-commerce, and in-store activities with the launch of Apple Pay, but is it really going to shake things up? On the face of it Apple has the credentials to do it. It has 800million people’s cards linked to iTunes accounts already (dwarfing PayPal’s customer base of 150million) and, with the biometric touch thing on its 5S and 6 series phones, has security. It has also developed its own form of payment tokenisation so that it isn’t involved in the transaction between customer and merchant, it only enables it making it not only super secure, but also – interestingly – opting Apple out of any of the data collection process associated with the service. It is also a payment mechanism that will work on e- and m-commerce sites too, making it something of an all
rounder. But the real winning play is that Apple has, unlike everyone else, approached mobile payments from the customer point of view, rather than the businesses point of view. But, Apple’s move to enter an already crowded mobile payments market, has met with scepticism from some industry observers. The e-commerce landscape in mobile payments is expected to be worth more than £721 billion by 2017. The sector is already saturated by a variety of different players including banks, retailers, and technology companies all offering their own solutions, leaving companies and merchants with a bewildering array of options. Dan Wagner, e-commerce veteran, CEO and founder of Powa Technologies, comments: “Consumers are finding themselves increasingly swamped by mobile payment apps.
They don’t want thousands of different apps that can each be used in a couple of different places - they want one universal app they know they can use anywhere. Just as wallets are stuffed with store cards, users are being asked to fill their smartphones with individual payment apps they will rarely use.” Retailers are likewise faced with the difficult decision of which mobile payment service to choose, with no assurance that the system will go the distance and be worth the investment, believes Wagner. “Without a clear and universal choice, how can they be sure they have picked a VHS and not a Betamax?” he wonders. Wagner concludes, “Consumers will be seduced by the ease and convenience of using one app across all platforms and the winner will be the app that secures universal adoption right across the retail landscape.”
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NEWS #ADVERTISING UK consumers 76% more likely to find mobile ads informative than last year MOST UK CONSUMERS are finding mobile ads on their smartphones, tablets and other devices to be much more informative and helpful now than they did at this time last year. This is according to figures from the 2nd Annual UK Mobile Path-to-Purchase Study released this week by xAd, the global location marketplace, and Telmetrics, the leading call measurement technology provider. Results of the 2014 study were compiled by Nielsen from an online survey of 2,000 UK smartphone and tablet users focused on the Retail, Insurance, and Telecom categories. Randomised mobile ads featuring irrelevant messaging are becoming a thing of the past, as brands are analysing factors such as consumer shopping behaviour patterns and real-time location to serve ads that are more
personal, relevant and timely. As a result, consumers are clicking on ads more frequently and finding them more helpful as a key tool on their path to purchase. In fact, a third of respondents who noticed mobile ads reported clicking on at least one of them in the past 30 days. As mobile ads continue to improve, brands will continue to see an increase in ad engagement, ultimately resulting in greater influence over their target audiences and a positive impact on their bottom lines. The advertised product must be something the consumer is interested in. In fact, one in three respondents reported that they clicked on an ad because it was something they were interested in or looking for. The importance of geographic relevance, or how close a consumer is to a store where
they can buy the product, is also significant. Its significance in determining whether or not a consumer will engage with an ad has grown 40 percent since 2013. Readily available and easy-to-find business contact information was also important. A quarter of survey respondents specified that they prefer ads with phone numbers. “Through analysing historical and real-time data, brands are now able to serve ads that are much more relevant to consumers,” said Monica Ho, SVP of marketing at xAd. “Accurate location data in particular has enabled brands to serve ads that are of interest to consumers when they’re close to a store or retail location. As we’ve seen, most customers engaging with ads are looking to make immediate purchases, so this can drive significant in-store traffic and sales for brands.”
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NEWS #SPORT MIG founder Houlihan back with sports driven social network MIG FOUNDER Barry Houlihan has revealed plans for a new mobile first celebrity led social network, BreatheSport, believed to be the first mobile sports platform of its kind. It brings live celebrity response to sports breaking news and live sports events in a troll free area known as the “locker room”, allowing fans to engage indirectly in a separate area called the “fan zone”. If the celebrities are the heart of BreatheSport, the fans are the life-blood. Fans will be able to move around watching unguarded celebrity debate unravel in a mobile first experience, whilst connecting and commenting with other sports fans. There will be an enthralling and unique challenge for fans. Each fan will earn their right to interact directly with celebrities through a remarkable rewards scheme. Rewards are at the very heart of the BreatheSport consumer experience. BreatheSport will use the latest mobile loyalty techniques to enrich fans’ and sports celebrities’ user experience. BreatheSport expects to have 200 sporting personalities signed up for its
official UK launch later this year and plans a rapid global roll out deploying regional versions in as many key markets as possible. There will also be a group of sports journalists and pundits who will add crucial opinion and debate to the platform. Barry Houlihan, co-founder and CEO says: “As a team we have developed some of the most innovative mobile technology in the world in our previous ventures. We know that sports fans are obsessive about real time news and engaging with sports celebrities, pundits and fellow fans. We wanted to bring that experience together in a mobile first experience as we recognise that global content providers and social networks have not yet brought order and structure to live sports debate. We have been delighted by the response from celebrities to our vision and cannot wait to get the BreatheSport experience into the hands of fans around the world.” The BreatheSport platform is designed specifically for mobile with the core purpose being involvement in live debate wherever the user may be regardless of mobile device or operating system.
#TV Channel 5 selects Fonix for two year agreement on all mobile interactive services UK BROADCASTER Channel 5 has signed up mobile messaging, payments and telephony newbie Fonix in a two year deal focused on developing engagement between Channel 5’s audience through mobile interactive services, driving returns for the broadcaster and value to the audience. Using a suite of Fonix solutions, including mobile messaging and payments layered with data analytics and marketing services, Channel 5 is providing viewers with an opportunity to interact and engage with formats through an increasingly optimised and value added experience. “We have some of the most popular interactive formats that TV has to offer. We need our partners to be technically and
operationally flawless whilst supporting us strategically around new initiatives. We have undergone a market wide supplier review process and are very pleased to have appointed Fonix to work with us moving forward.’’ said Joanna Cox, Acting Head of Commercial Partnerships, Channel 5. Rob Weisz, CEO of Fonix Mobile explains: “Channel 5 is forward thinking, innovative and expert in the interactive mobile space. Our relationship with Channel 5 allows us to work collaboratively to drive key objectives and introduce new initiatives like data driven marketing and optimisation – we have a number of very exciting initiatives to introduce over the coming months.”
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NEWS #PAYMENTS Vodafone confirms wallet roll out VODAFONE HAS confirmed that it plans to launch its mobile following launches in Spain, Germany and the Netherlands. The contactless mobile payments service, which is based on NFC, will be launched in the UK market together with Visa. Visa SmartPass is the first application of the mobile wallet service and is based on a prepaid Visa solution. It is designed for transactions under €25 ($32.37), with transactions in excess of that amount requiring a passcode. A spokesman for Vodafone UK noted that the UK launch will coincide with the next update of the software, as well as with the extension of contactless payments to the London Underground, trams, the Dockland Light Railway (DLR), London Overground trains, and most National Rail services in London. On its Web site, Transport for London (TfL) says
travellers will be able to use their contactless payment cards throughout the London transport network from Sept. 16. In April this year, TfL customer experience director Shashi Verma told NFC World that “in principle, mobile phones with a Visa, Mastercard or Amex payment application could be accepted on our services. We are testing to see how the devices perform on the system and welcome any innovations which improve the services and choices we are able to offer customers.” EE has already started to offer contactless mobile payments on London buses using its Cash on Tap service, for example. The company said the new service would do away with Oyster cards--the contactless ticket system used across London’s entire transport network--and contactless debit cards for regular bus travellers.
#PAYMENTS Zapp teams with charities ahead of imminent launch AS ITS MAINSTREAM retail launch looms – rumoured to be the week after next, folks – mobile payment innovator Zapp is getting it name out there with the public by working with the Charities Aid Foundation (CAF) and Oxfam Great Britain (Oxfam) to introduce new ways for supporters to donate using their mobile phones. CAF and Oxfam will work with Zapp to explore ways to offer their donors a secure, quick and simple way to give, using just their mobile device and their existing bank account. Zapp offers a fast and secure way to donate. Making it easy for people to support as long they have their mobile phone and a Zapp enabled bank account. When Zapp goes live, supporters will for the first time be able to donate to charities on their mobile phones via websites and their mobile banking application. Research has shown that giving through mobile phones is growing in popularity, with a 22% increase in people saying they prefer to give via text message than through any other method.
Zapp will allow donors to give via their banking application on their phone, meaning that the money will come directly from users’ bank accounts, rather than phone bills. Zapp will also give donors more control of their finances and removes the need to input card payment details. Donors can see their bank account balances at the point of donating and choose which account to give from, helping them manage their charitable gifts more effectively. HSBC, first direct, Nationwide, Santander and Metro Bank have already been announced as Zapp partners, meaning that a third of all UK bank accounts are soon to be Zapp-enabled, and their financial institution will be supporting the charity sector. The Charities Aid Foundation, helps people and businesses support the causes they care about, and provides financial services for charities. CAF works with over 280,000 charity donors and, in partnering with Zapp, will make it easier for their users to give to charities wherever they are through their mobiles.
OPINION
FROM THE EDITOR
Carrier billing starts its march in Germany THE MARCH OF CARRIER billing begins apace. Forget the disruptive – or not – impact of the Apple Pay, it seems that, in Germany at least, they are getting the idea that you can use direct carrier billing to make spontaneous payments when shopping on your phone. Amazon.de and Telefonica Deutschland have teamed up to offer German O2 users who are shopping on the German marketplace site the ability to pay for goods using carrier billing. The deal has been facilitated by Bango, which has been extremely active in getting carrier billing rolled out in apps stores and content stores in markets across Asia, the Middle East, Afrcia and Germany. And its set to be great for business across the board. For starters, it is great for consumers as it gives them an easy way to pay. Its great for online/mobile retailers as spontaneity is aided by ease of payment, so sales should go up. And it’s great for the telemedia industry as it finally heralds carrier billing breaking out of its premium rate chains and getting the mainstream use it deserves. The interesting thing about the news is that Germany got there first. The UK has had a long tradition of leading the way in mobile, has a healthy smattering of m-payments start ups and has always had a lively carrier billing based PRS market. The smart money would have been on it starting here. So why is Germany out in front? The key lies I think in forward thinking regulation and the desire to put serving customers first, rather than stopping them doing stuff that may cause them harm. Don’t get me wrong: I am all for consumer protection. I am an avid advocate that consumers should not be fleeced or ripped off. But I am also very much of the mind that you need to let consumers do what they want – to lead from the front, not the rear. And protect them as they go, not just say “that looks like it might be dodgy if the wind is from the north, you press that button by mistake and it’s a Tuesday”. The German market for m-commerce has at a step leapfrogged the UK – and much of the rest of Europe – to offer these services and we could all do well to understand how it has done it. Well fear not: World Telemedia Marbella on 15-17 October is looking to cover the worlds of regulation and payments, International PRS and beyond and has some excellent panellists lined up to talk us through how the world of carrier billing is developing into a mainstream tool and quite how the German market has managed to add carrier payments to something as well known as Amazon. An overview of the show can be found on page 18, while you can book tickets and see the latest additions to the speaker line up live at www.wtevents.co.uk See you there!
For more about World Telemedia Marbella 15-17 October see page 18 and go to www.wtevents.co.uk to book your tickets
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 Pilot –Fanfarlo| What we’ve been amused by Big Bang Theory Series 7 | Who we’ve been following @Mrskeldon | What we’ve been reading about The One Three One in Sardinia| OCTOBER 2014 will bring... World Telemedia Marbella
OPINION REGULATION
Is affiliate marketing
SAFE TO USE YET?
The affiliate marketing bust by PPP has turned into a legal storm that has spurred the development of the 13th Code, elicited a judicial review and awakened the possibility of regulators being sued. Paul Skeldon reports
IS IT SAFE TO RETURN to affiliate marketing? That is the question on everyone’s lips across the telemedia industry, but we are no nearer an answer. Yet the rumblings around this issue have long reaching consequences that could call into question the role of the regulator, not just in the telemedia industry, but across all regulation. The industry and its regulator, PhonePay Plus, have long had a testy relationship with affiliate marketing. It is widely recognised by everyone, including PhonePay Plus, as being an essential part of the marketing mix. Yet, ceding control to others is always and risk and with a world of malware and other dodgy elements lurking at the periphery of what we do there are going to be issues. And these issues have been well documented. But the upshot of them is quite extraordinary. To tackle the immediate problem, AIME has created an early warning system for affiliate marketing that PhonePay Plus has endorsed (See panel) and PhonePay Plus has long had a set of rules (“What does good look like?”) that it too hopes will make it safe(r) for businesses to use affiliate marketing to good effect. But the real upshot of the whole issue is how it has called in to question quite how regulators work and what they can and can’t do. To recap: following some sniffing about on malware sites, PhonePay Plus found adverts for two German Service Providers offering telemedia services to UK customers. Investigations and fines ensued. However, the German SPs hadn’t knowingly used these sites as affiliates and had the ads removed immediately. Still the fines held.
So the German SPs sought and won a judicial review – and Pandora’s box was opened. “This has really become a catalyst for the 13th code,” says Rory Maguire, MD of AIME. “The initial judgement on why they could go to judicial review contained no detail on why they could seek it. But the notes do. Anyone can now go to judge and get injunction against PPP based on justice Charles case notes.” The judicial review is still – at the time of going to press – to be done, but it could be complete in a few short weeks as all submissions have been made. The high court judge just needs to make a pronouncement. But should he decide that yes, the decision has breached the human rights of the company directors who have been fined by criminalising them and that the application of the regulations wasn’t “fair and transparent” then this opens the doors to growing legal challenges to PPP. And this is where it gets really interesting. What if the decision does go against PhonePay Plus? In theory, no one regulates the regulators, so all it would really have to do is simple tell its self off and review how it would do it differently next time around. But what this doesn’t account for is that it could leave the regulator open to being sued. This could, in theory and if successful, bankrupt the regulator and open the flood gates for all manner of legal actions against all sorts of regulators. It could be carnage across the board.
ANALYSIS MARKETING
Ready. Aim.
RETARGET
Retargeting m-commerce consumers to get them to spend again is becoming big business – and SMS is the key platform through which to achieve this. So, with an eye on this new prize Surash Patel, Chief Operating Officer, Europe for mGage explains how to make it work THE PRINCIPLE OF mobile retargeting is to reconnect with potential and existing customers through personalised content – extending the amount of time that customers are engaging with the brand. It can take many forms, such as targeting the consumer with adverts based on their activity history, or sending offers and discounts to prompt them to purchase an item that they have browsed. Mobile retargeting is also ideally positioned to make use of location data and is a proven way to increase ROI and decrease the cost per acquisition. To make retargeting possible, marketers need to have the ability to track customer journeys on their brand’s website or application. A wide range of mobile and web analytics are now available allowing marketers to gain valuable insights about their customers. Customer behavioural data facilitates the creation of segmentation models, which form the basis of an effective communication strategy. By sending relevant and personalised messages, brands can create a loyal customer base and improve overall brand experience. For starters, Web analytics illustrates a clear picture of the customer’s journeys throughout a brand’s website which can then help marketers and web designers identify optimization opportunities, improving the customer experience and increasing the purchase likelihood. Web analytics can also be used to ascertain which product(s) a customer has purchased and which they have looked at (and for how long) but not purchased. A rounded view of the customer journey is essential in helping marketers to understand the customer’s thought process, which is demonstrated by their patterns of viewing and purchasing products. Through this information, marketers are able to target the customer effectively and appropriately with offers and promotions once they have left the site. Similarly, mobile analytics can be used to track customers through location data and then target them with relevant offers, increasing the likelihood that they will pop into the store. Further, the success of a text messaging campaign can be analysed through built-in analytical tools to measure customer actions. As with web analytics, mobile analytics can track the customer’s path to purchase, providing insights on how much a consumer is willing to spend per transaction, how regularly such transactions take place, and how many and which products are viewed before one is settled on. Despite the numerous benefits of retargeting campaigns, a number of customer concerns do still remain. Security concerns should be acknowledged, as there is a lack of information on consumers’ part about how mobile targeting and location based marketing technology works. It is therefore essential that, prior to using location based and analytics data to retarget, brands gain customers’ consent and inform them clearly about how
their data would be used. By empowering consumers, marketers can build credibility for the brand they work with. Moreover, with customers being assured that their data is being maintained securely, they would be more likely to opt in to receive marketing messages. A second challenge facing marketers is the ability to strike the balance between sending too few communications to customers or sending multiple messages and being intrusive. If using an SMS campaign for example, there is a fine line between sending an appropriate amount of communications to steer customers back to the brand’s website, and bombarding them. Too few communications and customers may feel unloved, but too many could result in detrimental effects, causing customers to turn away from the brand. It is no easy task for marketers to get this balance right but data analytics is becoming more and more essential to strike the right balance. Through a wider understanding of the sector and the motivations of consumers it is possible to identify how and what to send to customers. The performance of each campaign can be quickly analysed so that with each initiative the strategy can be further developed. Tools such as mGage’s analytics package, Visualize, give marketers an end-to-end view of the consumers’ journey, so that marketers can create customer centric experiences for their users through smart, personalised and relevant messaging. These tools provide behavioural analytics, enabling brands and marketers to gain actionable insights across channels. It provides advanced mobile web and application data, as well as conversion attribution tracking by promotional channels like SMS and Mobile Media. Such analytics packages can enable marketers to make informed business decisions by allowing them to understand how their customers interact with their mobile properties across multiple platforms and devices. Within an increasingly competitive market, brands that make full use of the latest technologies and the subsequent data insights that they gain from them are unquestionably becoming head and shoulders above the rest. Retargeting technologies are an essential part of this as personalisation becomes more essential and customers demand not to see irrelevant communications. But perhaps the core element that separates marketers in the know from those that are falling behind is the simplicity with which retargeting campaigns can be implemented and managed. Many still believe that it is essential to be a technician to understand how to make the most of it, but that is just not the case.
ANALYSIS
PAYMENTS
Game on
FOR GAMING
One of the key areas where direct carrier billing is really surging ahead is in in-game purchases. Paul Skeldon talks to NeoMobile about the nuts and bolts about how this works and what it means for telemedia and gaming industry insiders
DIRECT CARRIER BILLING has long had the potential to clean up in the digital consumer space on mobile, but it has taken a very long time to come to fruition. But, as we have seen in the previous article, it is now finally coming along. And one sector perhaps more than any other is driving that: gaming. Mobile games have become a massive industry. Picking up where Gameboy and PSP leaves off, more people now play mobile games than their handheld dedicated equivalent and these gamers are pretty casual. However, there is money to be made from these punters and that is where carrier billing comes in. Most modern mobile games are free to download and play. The money comes from giving players access to new levels for money (or they have to wait to progress, sometimes up to a week). This move has prompted many people to pay to play where perhaps they wouldn’t, but what has always been lacking has been a rapid payment mechanism. Until now. This is where direct carrier billing comes in. It is quick, easy and is one of the few m-payments technologies that actually works right now. And, where it might once have had a poor reputation with some consumers, a whole new generation of
kids don’t see it as a rip off, but as a handy tool to enhance gaming. And this is crucial: this marks the rebirth of carrier billing as a ‘clean’ tool for consumers to use and will in time open it up to countless other consumer applications. The time is now. So what is actually happing in gaming world? Onebip from Neomobile is a mobile payment tool that works with numerous gaming companies worldwide, including publishers Gameforge, ProsibienSat.1 Games, Aeria Games and Goodgame Studios, providing payment services for such games as Ogame, S4 League, Shaiya and Big Farm. It has carried out extensive research into how consumers are using carrier billing around gaming and offer the de facto insight into the way instant payments is reshaping the gaming market. Globally, online gamers spend an average of €4.73 per single transaction. Gamers in the UK spend nearly double this with an average transaction value of €8.94, making the UK the third biggest spender in the world by transaction value. The average spend per transaction in Switzerland tops the global list at €15.09. This is mainly due to carriers in the country offering gaming companies the option to charge much higher price points to online gamers that pay via carrier billing compared to all other countries. In fact, Onebip’s data found that there was a direct correlation between countries offering higher price points as an option and an increase in the average transaction value – so consumers are embracing the use of carrier billing to pay for higher priced items such as larger “bundles” of virtual currency. In bigger gaming markets compared to Switzerland, such as Turkey, that recently increased the price points available for payment via carrier billing, gaming companies saw an increase in revenue (gross transaction volume) and average transaction value.
ANALYSIS PAYMENTS
The data from Onebip also sheds some interesting light on how this ability to pay to play has changed gaming from a late night, weekend activity typically done in the winter, to one that happens pretty much all the time. The winter holiday period is the busiest time for online gaming spend, with 11% of global spend taking place during the month of December. However, after December, gamers spend more money during the summer period than any other point in the year. The summer months of June, July and August account for 30% of global spend. In contrast April and May are the quietest months with just 4% of annual spend in each month respectively. While it is true that more transactions take place on Saturday than on any other day in the week, the spike is not statistically very significant, with between 1-2% more transactions on Saturday over on any other day. Clearly gamers are finding time to play all week, or at the least, they don’t feel the need to wait until the weekend to spend their money. “While the maturity and penetration of mobile carrier billing varies from country to country, the overall statistics make
for very interesting reading into the buying trends of gamers around the world. Gamers tend to spend using mobile payments via carrier billing consistently throughout the week and the summer period is when they spend more money than any other point in the year,” said Massimiliano Silenzi, Head of Onebip by Neomobile. “Onebip’s data demonstrates the growing adoption of carrier billing globally as a fast and safe payment method for gamers and an effective way for online gaming brands to maximise their revenue. As carriers introduce more advanced billing technologies and more flexible and high pricing options, the payment system gains further traction for game companies as a key payment channel. We predict that in markets such as Turkey and Spain where carriers have introduced higher price points recently, our online gaming partners will see an increase in their revenue and average transaction values.”
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ANALYSIS
PAYMENTS
Mobile is more than just
A FAT CREDIT CARD
Amazon and Apple have weighed into mobile payments – now no one can ignore the significance of how you pay. Dan Salmons, Managing Director, PayPoint Mobile and Online, explains how the growth of mobile payments is being driven by more than just a new way to pay RECENT NEWS that Amazon has announced a card reader and mobile app for small business owners to take payments on their mobiles shows just how far the payments industry has come. Couple this with Apple’s announcement that the iPhone 6 handset will include a ‘tap and pay’ iWallet wireless payment system and suddenly you start to realise that how you pay for things matters more to consumers now than ever. Offering people the right choices for payment can make all the difference between a completed purchase and an abandoned basket. We have more payment choices available to us than ever before, but not every payment option is right for everyone or every product. Indeed, there have been plenty of experiments in mobile payments that have failed. Why? Because they basically set out to take something pre-existing for which payments via cash or cards worked perfectly well, and simply tacked a mobile dimension on to the end. Granted, a lot of the enabling technology was very clever but the proposition for the mobile consumer, in a lot of these cases, was not compelling enough. Mobile payments are getting simpler but, in most cases, they still have a job to do to displace cards and cash. Research we commissioned earlier this year supports this view. Our key finding was that consumers see nothing fundamentally wrong with cash and cards. Indeed debit cards remain the most popular choice of payment (preferred by 48% of us), while cash is now preferred by about a quarter a quarter (although that percentage increases within lower income groups). While the growth in spending is being fuelled by ‘non-cash, non-card’ pay-
ANALYSIS PAYMENTS
ments, which include mobile payments and vouchers, these new methods remain minority pursuits. People are not about to start ditching their wallets in favour of their phones for some time. ALL ABOUT THE NEW Online and mobile technologies, in particular, work when they enable brand new, instant and immediate experiences with new payment processes embedded within them. For example, Hailo lets people hail and then pay for taxi ride without having to worry about carrying cash with them. PayByPhone does a similar job in street parking, freeing customers from the worry of having to rush back to the car to top up the machine if they run out of time. These apps have proved so successful because they do more than replace the payments process: they use the functions inherent in the mobile device genuinely enhance the customer experience.
It’s not how you pay, it’s what you’re paying for that counts. As handset manufacturers begin launching mobile devices with payment functionality hard-wired into them, businesses have a golden opportunity to develop all kinds of new commerce offerings. In order to be a hit with consumers they will need to offer things that only a mobile device can offer: location specificity, personalisation, the mobile screen real estate, smartphones’ SMS messaging and voice calling capabilities. And it is in these areas where mobile payments have a significant edge over ‘dumb’ cash and card payments. It is here where businesses can really add value to consumers, in a way they can’t with cash and cards. As long as cards and cash remain our favourite means of payment, businesses looking at opening up the mobile channel have to be sure that they are giving consumers clear reasons for purchasing via their phones. After all, if all the phone does is make a payment, it’s no more use than a fat credit card.
DDRC, Auditing and Monitoring • DDRC Advice & Support • ‘In the Wild’ Affiliate Marketing Monitoring • GoVerifyIt – A new ‘Bolt-On’ version – Go Live in One Day! • Media Audits • Product & Service Testing • Social Media Monitoring Contact: neil@monitoringcompliancepartners.com toby@monitoringcompliancepartners.com Declan@monitoringcompliancepartners.com
world telemedia conference & expo
15-17 OCTOBER 2014
H10 ANDALUCIA PLAZA HOTEL
MARBELLA
SPONSORS
interesting times The telemedia industry has had its share of ups and downs, but as we gear up for World Telemedia Marbella on 15-17 October, we find an industry that is ready for an almighty up. Some traditional services may have plateaued or even hit decline, but there has been of late a groundswell of interest in the services we offer as an industry within the mainstream world. And this is why we hit Marbella with high hopes. Mobile payments are poised to be massive, boosted this autumn by Apple’s announcements around iPhone 6, NFC and Apple Pay. More and more businesses are looking to let customers pay – especially for digital goods – in the fastest and most convenient way possible. And direct carrier billing is playing into that. The emergency of Voice short codes (VSCs) and increasing confidence in HRPRS, better operator pay outs and generally much greater MNO support for telemedia is seeing it hit the big time. And this is one of the key themes of World Telemedia Marbella. However, with great success comes great
responsibility and, while the business is on the up, regulation is in flux. There is a new Code of Practice, there are issues with affiliate marketing, there is the spectre of the Payment Services Directive all bearing down on our bubble. And this really is the theme of World Telemedia Marbella 2014: how to exploit the boom and create a regulatory environment that helps perpetuate that boom. Two things that could well be considered oxymoronic, but two things that we have to make work in harmony. So that is what the show is going to do. It is going to pull together the entrepreneurial and the go-getters and it is going to gather the law makers and regulators. It is going to catalyse the debate, not just by bringing together the two sides, but by showing the two sides what the other needs to achieve and how they can aid each other. It’s a tough call, but one that we think we can pull off. All you have to do is be there to join the debate.
FOR LATEST INFORMATION ON EVENTS, CONFERENCE SCHEDULE AND HOW TO BOOK GO TO WWW.WTEVENT.CO.UK 24 telemedia issue 35 24,25,26,27 ShowPreview_WT35.indd 24
12/09/2014 14:02
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Why we like World telemedia “the balance gained between daytime engagements and evening networking, compliments the audience needs and provides a solid environment to bolster meaningful business opportunities year on year. The relaxed, informal environment with clients and prospects fosters greater discussions. the concentration in one location of technology, billing and service providers is invaluable. this forum truly can accelerate plans and initiatives. the international focus that WtM can deliver, bringing differing perceptions and opportunities yet ultimately driving new partnerships and future relations.” Kevin Dawson, Head of Payments, Oxygen8 “Black dog communication’s main focus is to gain new business from the show and add a few names to our list of clientele. World telemedia is a worldwide meet of the billing community, old faces and new! it is a great opportunity for networking and we can’t wait to attend.” Barbara Matthews Coyle, Director, Black Dog Communications
FOR LATEST INFORMATION ON EVENTS, CONFERENCE ScHedule And HoW to BooK Go to WWW.WTEVENT.CO.UK issue 35 telemedia 25
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world telemedia conference & expo
world telemedia conference & expo
daY one 16 oCtoBer 2014 INTRODUCITON: The state of telemedia An expert overview of the telemedia industry in late 2014 that sets the scene for the two days of conferencing ahead, looking at: • Size of market • How it has been growing and how it is set to grow • Where the new opportunities lie in media, payments and beyond • Overview of regulatory issues and challenges • What the next 12 months holds
Is it safe to go back to Affiliate marketing Part 1 With a best practice guide in place and an early Warning System set up, is it safe to return to using affiliate marketing? We assemble and expert panel to lay out the issues and take your questions before a private lunch where the issues will be thoroughly debated.
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13th Code debate With the uK telemedia industry and regulator beginning to thrash out what will be in PhonePay Plus’ 13th code of Practice, we assemble our experts to outline the issues and most importantly to give You, the industry, your say.
Payments: How to rise to the DOB challenge Mobile payments are flavour of the month, and that is presenting a massive opportunity for carrier billing services. in the first of our two parts looking at the carrier billing landscape we hear from leading operators and providers about what these opportunities are and how to deliver them.
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Global outlook and wider services Trends and Opportunities in Media there is an increasingly diverse playing day two of World telemedia focuses on field in telemedia, covering SMS, DOB, where the latest and next opportunities Voice and Voice short codes, credit card, for telemedia services and payments lies apps and m-payments and clients are and we look at what the media industry looking ever more for fully managed, is looking to do with telemedia. wrapped services. We kick off day two “the balance gained between daytime engagements and evening with an exploration of how the industry networking, compliments the audience needs and provides a solid can help deliver this.
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Opportunities in Sport, leisure and entertainment After a summer of sport, many in and around the industry are looking at how to capitalise on the opportunities in the sports, leisure and entertainment worlds.
Why we like World telemedia environment to bolster meaningful business opportunities year on year. The relaxed, informal environment with clients and prospects fosters greater discussions. the concentration in one location of technology, billing and service providers is invaluable. this forum truly can accelerate plans and initiatives. the international focus that WtM can deliver, bringing differing perceptions and opportunities yet ultimately driving new partnerships and future relations.” Kevin Dawson, Head of Payments, Oxygen8
“Black dog communication’s main focus is to gain new business from the show and add a few names to our list of clientele. World telemedia is a worldwide meet of the billing community, old faces and new! it is a great opportunity for networking and we can’t wait to attend.” Barbara Matthews Coyle, Director, Black Dog Communications
Opportunities in Gambling Following the successful mGaming Summit in london in May, we get a follow up look at what key gambling companies are doing with telemedia and what opportunities it can unlock. Opportunities in games and apps stores the world of apps stores and games are opening up to carrier billing and other telemedia services – this could very well be the portal to mainstream mass market penetration of the industry. We wrap up World telemedia 2014 with a look at how this is working right now and what opportunities it gives you in the year ahead.
FOR LATEST INFORMATION ON EVENTS, CONFERENCE ScHedule And HoW to BooK Go to WWW.WTEVENT.CO.UK 26 telemedia issue 35
issue 35 telemedia 25
world telemedia conference & expo
m18 summit 16 oCtoBer 2014 M-adult 101 – Busting Mobile Myths Challenging the urban myths – TRUTH v HYPE – previous experiences are distorting views on the opportunity. The Case For Mobile in adult Why consider mobile as a key game play? As Juniper report that mobile adult subscriptions will be worth 1.2 billion by 2015 – how to get a share of this significant market segment Real Mobile Strategies We’ve seen what the reality of mobile is and considered the business case for implementing it – but how should you approach it strategically and tactically?
Mobile Payments “Billing is boring but getting paid is fun!” We analyse how to make the best use of the burgeoning range of billing and payment tools and discuss what they can specifically bring to the market for over 18 services.
Partner Discussion Forum How can the adult services industry work with operators and aggregators to get a better deal that helps stimulate growth.
Mobile Content establishing the links between successful mobile services and online. Chat, Dating & Social Media telemedia platforms and billing products have been a core component in delivering interactive chat and dating services. So as dating becomes mainstream and chat is an intrinsic part of the social media – what will the next generation of commercial services look like?
premium netWorKinG World telemedia has a long standing reputation for providing a first class opportunity to rub shoulders, pick brains and share some drinks with the people that can really deliver. Marbella is no exception. • Start “Shhmoozing” with our mobile meeting system • LinkedIn VIP and Telemedia-News.com groups • Facebook Telemedia-News.com page • WT18 Golf Day • Welcome Drinks • Opening Party - Sponsored by International Premiums • Expo Hospitality Suites, Bars & Lounges • Blind Speed Networking - “Movers” meet “Shakers” • Directors’ Lunches - in the restaurant / terrace • Working Lunches – in the main expo lounge • Happy Hour Expo Drinks Reception • Client Dinner Schedule • Parties In “The Port” - Sponsored by Mobile life
FOR LATEST INFORMATION ON EVENTS, CONFERENCE ScHedule And HoW to BooK Go to WWW.WTEVENT.CO.UK issue 35 telemedia 27
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
Preferred Telemedia is a leading VoIP Solutions, providing Premium numbers, wholesale, callcenters ..
Contact: Tel (+961)-1352691, contact@preferredtelemedia.com www.preferredtelemedia.com
Sundial Telecom Voice, Fax, Web, WAP & IM integration
Contact: sales@sundialtele.com, +44 1223 238300 www.sundialtele.com
IMI mobile The leading global specialist provider of cloud-based mobile data infrastructure and mobile technology
Contact: Tom Broadfoot, tom.broadfoot@imimobile.com Mob +44 (0)7500 700 665, www.imimobile.com
International Premiums IPRN, IVR, Live Stats, Audiotext, Highest Payment, Daily Payment, Micropayment, Sierra Leone, Guinea, Somalia
Contact: info@interprems.com, Tel +961 1 795016 www.interprems.com
ImpulsePay The UK’s newest directly connected API. Payforit & Direct-to-bill technology
Contact: office@impulsepay.com, tel: +44 (0) 20 7099 2450 www.impulsepay.com
txtNation Mobile, Billing, Payments, Content, WAP, SMS, MMS, IVR, Phone, Credit Card
Contact: Michael Whelan, E. m.whelan@txtnation.com T.+44 (0) 1752 273491, www.txtnation.com
Teslatel Srl Licensed operator offering Premium, unique and toll free numbers. Intelligent network services.
Contact: Vincenzo di Stefano, E. vincenzo.distefano@teslatel.net T. +39 335 6289544 www.teslatel.net
Digital Select Ltd
VoiceBlade
01x/02x, 0800, 0844, 0871, Premium Rate, IVR, SMS & International numbers.
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
Luv2Chat
Non Geographic Numbers, SMS Services, Call Management Solutions, BT Wholesale, Carrier Pre-select, Indirect Access
Britain’s Favourite Live Chat Provider Great Hold Times, Unbeatable Retention
Contact: t: 0844 504 0000, e:info@coretelecom.co.uk www.coretelecom.co.uk
Crazy4Media Mobile marketing, Mobile advertising, Online advertising, Video streaming, Mobile Databases
Contact: Alex Hind , Tel +34 954 98 08 48, alexhind@froggie-mm.com, www.froggie-mm.com
Contact: Richard Smallbone, Tel +44 (0) 1903 884245 Email: richard@luv2chat.com, www.luv2chat.com
List your company here... contact Jarvis on Jarvis@telemedia-news.com, +44 1444 831 909
Telemedia Industry Directory Masvoz Spanish leading provider in Voice Services, Micropayments solutions & Sms services
Contact: Carlos Jiménez. 0034 902 500 807, carlos.jimenez@masvoz.es www.masvoz.es
Oxygen8 Global Billing, Communication & Mobile Services from Worldwide Offices
Contact: 0808 206 2062 E-mail: sales.uk@oxygen8.com www.oxygen8.com
Nord Connect Ltd International PRS Numbers, Fast Reliable Payments, Competitive Rates, Worldwide Access
Contact: sales@nordconnect.com www.nordconnect.com
Felix Telecommunications IPRN, Audiotext, Premium Rate & SMS Solutions
Contact: Ryan Darwin, sales@felixtelecom.com www. felixtelecom.com
telequest & Internet Solutions GmbH !!! Domestic Numbers Worldwide !!!
Contact: 00800 102 502 22 or info@telequest.com www.telequest.com
Triton Global Business Services Direct Carrier Billing, Premium Fixed, Voice Short Codes, Participation TV
Contact: Martin Grace: +1 403 259 7575, mgrace@tritonglobal.ca, www.tritonglobal.ca
Goodman Associates Advertising: digital/search/social, TV, Radio, Press & Outdoor – we make it happen!
Contact: +44 (0)845 225 55 55, mail@goodmanassociates.co.uk www.goodmanassociates.co.uk
Viatel Specialist for Premium Rate Number in Scandinavia Sweden • Norway • Finland
Contact: Phone: +46 850 601 020, Email: sales@viatel.se www.viatel.se
Kwak Telecom Ltd Leading provider of International payouts numbers & domestic premium rate numbers
Contact: Tel +357 22 022300, sales@kwak-telecom.com www.premium-rates.com
Text121Chat Premium Rate Operators Services
www.text121chat.com
Contact: UK 0871 872 6154, helen@text121chat.com, USA 1-888-711-0121, lorna@text121chat.com
Enarpee
Fonix
Global Regulatory/Compliance/Service Audit and support services organisation
Mobile Messaging, Payments and Telephony
Contact: Neil or Paul on +44 844 357 3938 or email info@enarpee.com ww.enarpee.com
List your company here... contact Jarvis on Jarvis@telemedia-news. com, +44 1444 831 909
Contact: sales@fonix.io www.fonix.com
Heart Communications UK 24/7 Call Centre handling inbound and outbound calls
Contact: admin@heartcommunications.co.uk, Tel 0844 745 1915 www.heartcommunications.co.uk