Issue 24 • NOV/DEC 2011
YES-wallet launches Pouch Mobile Wallet to meet demand for m-payments with a growing number of consumers saying that they are now interested in using mobile wallets, YES-Wallet.com has launched Pouch, a free Mobile and web Wallet Service, that in the future will also support NFC (Near Field Communication) based payments. With 71% of people saying that they are currently exploring, evaluating and considering the idea of implementing wallet services in the upcoming years, YES-wallet.com took this opportunity to introduce its new Pouch mobile application, now downloadable on all major smartphones, and to present very exciting findings collected through a Launch survey on mobile and e-wallet payments. Securely storing credit/debit payment cards, payment receipts, loyalty and coupon information, Pouch enables customers to securely make payments through their smartphones for free. “Merchants perform millions of card transactions per week, and now their card paying customers can create free personal wallets to get instant benefits such as card payment e-receipts, e-coupons and location based services” explains Dr. Chandra Patni, Director of YES-wallet.com. “Pouch supports storage of personal credit, debit and pre-paid (SVA) cards in the “My wallet” function which can be used to make payments at web, mobile and physical stores.” Pouch supports roll-out of retail couponing, loyalty and location-based mobile advertising and marketing services, many of which will use NFC in the future. Standard Visa / MasterCard Payment applications are also supported via this wallet service. Anyone can register and create his free personal wallet by by clicking here. YESwallet Pouch free Mobile App is already available for smartphones. E-Wallets and the ability to make payments on Mobile smartphones is set to be one of the most exciting innovations in the payments industry, transforming consumers life style. Services are arriving in UK and around the world. YES-wallet.com created a report to share the results of a survey on mobile and e-wallet payments conducted at the YES-Wallet.com launch event in London, UK. This event was attended by specialists representing: mobile phone operators; Card issuers; Retailers; Payment Service Providers (PSP); Merchants; Software vendors and the media. This is a group who is interested in implementing and learning more on new e-wallet mobile services before and after the arrival of NFC capable mobile phones. The audience generally agreed that the adoption of Mobile payments would grow significantly in the next four years with a turning point in 2013 where a higher number of people will use their mobiles to make payments with acceptance points becoming commonplace. When asked what attendees considered to be the most important issue related to e-wallet adoption by consumers, 47% of people highlighted security issues as their main area of concern. Pouch wallet service provides consumer trust through safer card payments. Pouch enables consumers to create and pay with their wallets through participating merchant’s websites and to pay for in-store purchases by launching their Pouch mobile application, selecting the card they initially created in the wallet and holding the smartphone in front of the retailers’ POS. In its PCI-DSS (Level 1) certified data centers, Pouch converts the phone data back into card details before forwarding the card authorisation request to the merchant’s card Acquirer.
THIS MONTH... News
The latest news from the industry, along with analysis of what that news means, including: • Shoe seller Clarks launches transaction m-web site with MIG 2 • 240% increase in mobile barcode scanning on Black Friday 3 • Billabong uses Zappar mobile AR to bring ads to life 4 • ‘That’s Britain!’ uses IMI’s tech to aggregate viewer messages live 5 • Mercedes servicer uses messaging to improve business 6 • LaRedoute and CardMobili pioneer mobile loyalty in Portugal 7 • Mobile social media use up by 44% in EU5 says comScore 8 • IsoMob makes it into Deloitte fast 50 thanks to micropayments 8 • PayPal sees 2016 as mobile payments tipping point... 9 • ... but there is more to it than just ease of use, says Mobey Forum 9 • Governments and industry join forces on mobile porn 10
Analysis Editorial Here comes 2012 So with 2011 all but done and dusted, what does 2012 have in store? Paul Skeldon reports 11 Planning for an m-Christmas Paul Childs, CMO at Adfonic, takes a look at how to plan the perfect mobile marketing campaign for Christmas based on user clicks 2010 12 Location-based marketing for brands and businesses Neil Cartwright, head of digital at Media Junction, takes a look at how location marketing is going to be a key marketing tool in 2012 and beyond 14 Will NFC change the face of payments? Sirpa Nordlund, exec director of Mobey Forum, assesses the impact NFC is likely to have next year 16
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NEWS Shoe retailer Clarks launches transactional m-commerce site powered by MIG high street shoe retailer Clarks has launched a fully transactional mobile commerce site, designed and built by Mobile Interactive Group (MIG). Clarks first ever mobile site is fully transactional and has been built using MIG’s award winning mobile commerce platform. The site boasts the full Clarks product range, enabling shoppers to shop directly from their mobile or locate their nearest store and delivers a seamless ‘check out’ process, providing both credit and debit card payment options and is open to both new and existing users of clarks. co.uk MIG offered Clarks an innovative solution that required minimal systems integration, meaning Clarks has been able to launch the fully transactional mobile site in a relatively short space of time, with minimal disruption to the firms day to day trading environment. MIG’s mobile commerce platform is also highly scalable, allowing Clarks to leverage its initial
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investment and introduce further mobile services down the line, such as native applications to compliment the mobile site. Richard Houlton, Director of Channels, Clarks commented: “Multi-channel retailing is a major focus for Clarks and it is essential to give our customers choice. Our customers are more technology savvy than ever before. The launch of our transactional mobile commerce site marks Clarks first move into mobile and we partnered with MIG because of their strong leadership in this area and technical capabilities in the mobile retail space. They understood our requirements, ensured the design of our mobile site was sympathetic to the brand and that it delivers a seamless user experience.� Matt Cockett, Commercial Director, MIG said: “Over the past few months MIG has developed a strong collaborative relationship with Clarks, sharing industry insight to inform key decision making and to ensure we’re building a mobile proposi-
tion that’s right for the Clarks customer. In recent months, the IMRG recently reported that 50% of UK smartphone owners shop via their mobile device, up 30% from June 2010, demonstrating the continued growth and the potential of mobile commerce. Customers shopping habits continue to evolve as new technology hits the streets, they expect a user friendly mobile experience that enables them to browse, search and purchase more products (both large and small) whilst out and about or sat at home on their sofa.� Because of its size and experience MIG is able to provide a unique offering to retailers that are looking for a 360 degree mobile partner, to work with them from the early strategy and concept stage, through to service deployment across mobile web and applications. Plus crucially, after a service goes live, to drive customers to the service using innovative mobile marketing techniques.
NEWS ‘Black Friday’ sees 240% increase in barcode scan traffic as shoppers go mobile for Christmas if proof were needed that this is going to be a mobile Christmas, NeoMedia Technologies, a global leader in mobile barcode scanning solutions, saw a dramatic 240% rise in mobile barcode scans via its scanning software application NeoReader on Black Friday – Friday 2 December 2011, the day everyone goes shopping mad for Christmas – compared to last year, including 13% percent growth in 2D scans over 1D. The increase not only demonstrates that consumers are using their mobile phones as a shopping tool, but that they are actively engaging with the mobile barcodes that retailers are increasingly incorporating in sales and marketing communications. In 2011, the types of mobile barcodes scanned were 87 percent 2D, versus 13 percent 1D compared to 2010 where 74 percent were 2D versus 26 percent 1D, demonstrating a clear trend towards 2D mobile barcode prevalence. Android
was the leading operating system when it came to number of scans, accounting for 53 percent, while 27 percent came from iOS and eight percent from Symbian. This rise in mobile barcode scanning is in line with the record consumer spending on Black Friday which, according to a survey by the National Retail Federation, reached $52.4 billion, up 16 percent from last year1 and is a good reflection of the number of retailers now integrating mobile barcodes into their communication platforms to engage with shoppers. Many wellknown retail brands have used mobile barcodes to connect consumers with greater product information, price comparison and customer services, promotional offers and even mobile transactions – whether in-store, in the mall or street, online or in print media. “Retail is going mobile. People are not only using their phones to get more
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NEWS Billabong to use Zapper augmented reality to bring its advertising to life billabong, the international lifestyle and action sports brand, and Zappar, the world’s most powerful augmented reality App, have formed a partnership that will bring Billabong’s in store, online and print global advertising campaign to life, simply by looking at them through an iPhone or Android device. A first in the industry, Billabong will embrace Augmented Reality (AR) for their ‘Life’s Better in Board Shorts’ product line and advertising campaign. This technology is the evolutionary step beyond QR codes. AR brings a new dimension to interactive mobile experiences allowing users to not only link through to websites (which is fairly one dimensional), but also experience content in the field of vision - be that video, audio, animation or other forms of interaction. It fuses the digital and physical to enhance experiences rather than simply being a gateway to the web. It’s like going from 2D to 3D experiences. Consumers can use the Zap-
par App, which is available free of charge from iTunes or the Android Market Place, wherever they see the Zappar logo on Billabong advertising materials and Billabong products. The App will reveal stunning state of the art film footage from Billabong’s stable of pro-surfers produced exclusively for this campaign, releasing new movies over time using Zappar. It will also allow users to link straight through to the Billabong ‘Life’s Better In Board Shorts’ microsite. (www.billabong.com/lifesbetter) Sam Carrier, Europe Men’s Marketing Manager for Billabong says: “We are excited about partnering with Zappar in this industry first global advertising campaign. The idea of bringing content from our campaign through Zappar’s augmented reality technology really excites us, while adding a whole new realm
to how consumers receive information.” Caspar Thykier, Managing Director for Zappar adds, “We’re delighted to be working with Billabong. Billabong isn’t just a clothing manufacturer but a world leader in the production of action sport content. Zappar is helping bring these stunning experiences to life through our proprietary platform to get people closer to the action across media environments.”
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NEWS Wall to Wall uses IMImobile’s Presenter Tablet to aggregate messages for “That’s Britain!” wall to wall – a Shed Media company –the world’s leading producers of factual and drama programming, is using IMImobile’s Presenter Tablet Module (PTM) on its new live studio show for BBC One. The technology is a recent extension of IMImobile’s Multi-Media Console (MMC) and is visibly used on the show ‘That’s Britain!’ which first aired on the 23 November 2011. The MMC provides broadcasting and production companies with a seamless way to aggregate audience content across a range of digital streams, including Twitter, Facebook, SMS, MMS, Email and Apps in one single platform. This allows broadcasters and production teams to edit user generated content and then publish through a variety of different channels to drive viewer engagement. The Presenter Tablet Module, tailored for latest tablet devices, will allow Nick Knowles and Julia Bradbury to see all of the pre-selected messages chosen by
the Wall to Wall production team. The messages, that vocalise the key issues that have been annoying the British public, are pushed from the MMC to the tablet that is connected to a WiFi network, via a web interface. This allows the presenter to read out viewer comments live on air. ‘That’s Britain!’ is the first show to use the Presenter Tablet Module within a live format. It directly connects the presenter with the audience. The presenter also has the option to engage with viewers in real time via social media channels such as Facebook and Twitter. Kat Hebden, Interactive Producer at Wall to Wall comments: “That’s Britain! presented us with the perfect opportunity to invest in this new technology. With consumer opinion central to the show, it was crucial that we had a platform to hand which would aggregate all incoming messages from viewers, yet be accessible and easy to use for the presenters.”
“The MMC forms a wider part of our media and broadcast solutions. The use of tablet devices on TV shows is a growing trend that will soon become commonplace. With the Presenter Tablet Module production companies such as Wall to Wall can streamline content aggregation and focus on creating a real-time audience engagement where messages are put to air almost instantly,” said Jay Patel, Managing Director at IMImobile. Aother interactive element of the show is The Word Wall system that is designed to automatically gather words from the subject line of emails sent to a specific email address, provide editorial control of the data gathered, and present the words in the studio by means of a graphic shown on a large video screen. The words are presented in such a way that those which feature most frequently in the received emails over a given period are shown in the largest typeface on the graphic.
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NEWS Mercedes Benz Brooklands gets the message out with PageOne Campaign Manager mercedes benz Brooklands dealership in Weybridge, Surrey is using PageOne Communications’ Campaign Manager console to enhance communications with both staff and customers. PageOne’s Campaign Manager makes it possible to create interactive SMS-based Short Code and keyword campaigns in minutes using a simple web console. A secure online account allows users to quickly and easily configure key variables such as the campaign duration, choice of automated response type, and campaign keyword, all manageable in real time. The Mercedes Benz dealership has embedded PageOne’s service for use within a range of applications that enhance internal communications, improve customer service and enrich marketing activity. In fact, SMS has grown to become an increasingly valuable channel to connect not just with customers, but also with the dealership’s 65-strong aftersales team. Sending out daily text
alerts keeps them updated on targets, performance and key information whilst also providing a much needed means to engage with the team. Having been recommended through referral, dealership manager Ian Straw felt the high volume messaging and robust easy-to-use system was the obvious choice. ‘The service is very intuitive and easy to use. You can literally send out hundreds of text messages in the space of minutes and the great thing is that it has a prompter to guide you through the set-up process. Instead of taking an untargeted approach, you can actually see who is interested and follow these through with a call, which is excellent’. PageOne’s Campaign Manager provides real-time results. An instant snapshot can be generated with a few button clicks and an extended log of the actual messages sent and received can be viewed online, or exported for historical campaign reporting purposes.
The dealership is also using PageOne’s services for ad hoc marketing campaigns. Straw says, ‘It has allowed us to simply target a key area of our customer base and our success rate has been approximately 50% better than we expect on a mail-out, at a tenth of the cost’. Campaign Manager is also being used to enhance customer service. Now when ordered parts come in, the customer receives a telephone call and a text message. Straw says, ‘It simply a great way of making sure that the right people, get the right information, at the right time. It generates a record for us, so we know a client has been contacted and also capitalises on the fact that a text message is highly likely to be promptly read. Campaign messages can be scheduled to coincide with a specific event and sent using a 2-way number so customers can easily respond to messages at their standard network rate.
NEWS LaRedoute and CardMobili create mobile loyalty programme in Portugal cardmobili, creator of the world’s first mobile loyalty and membership cloud that connects consumers directly with brands, has formed a partnership with La Redoute in Portugal, one of the 17 brands and businesses within the international retail group Redcats. Using CardMobili’s multi-platform smartphone app, La Redoute’s customers can now benefit from free access to a wide range of offers, as well as free transport, all from within the app, which also enables seamless access to the La Redoute Mobile site – m.laredoute.pt – delivering a unique digital shopping experience. By using the CardMobili mobile app, customers can benefit from significant reductions – 40% on the first article, and 30% thereafter, as well as a host of other promotions and incentives. Paulo Pinto, General Director of Redcats Portugal, commented: “Communicating promotions and giving amazing offers via the mobile phone is one more innovation that La
Redoute wants to share with its customers, simplifying the whole shopper experience.” A well-established Internet innovator, Redcats launched a dozen new commercial Internet sites during 2010 alone, with 80% of its products available for sale on iPhone and Android applications. The La Redoute partnership is the latest in a long line of exciting projects undertaken by CardMobili, which is established as the leading provider of mobile loyalty services. The CardMobili app incorporates coupon and promotional-offer processing, enabling La Redoute to maximise brand awareness and deliver money-saving offers direct to consumers’ phones. CardMobili’s CEO Helena Leite explains: “La Redoute’s customers can now benefit from all the brand’s great discounts and offers via just one click on the mobile phone – it has never been easier to manage shopping, discounts and cards, all from your phone. Our latest generation of applications quite simply multiplies the
savings opportunities, with new promotions and vouchers tailored to the individual consumer. Our technology enables discoverability and selections to be based on user preferences and location, making it a highly targeted and finely-tuned marketing channel.” Each coupon or offer includes the title of the offer and the nature of the discount available, together with the expiry date and a “Use It” button. CardMobili’s coupon service can handle time-limited offers, as well as those triggered once a particular date has been reached or a special condition has been fulfilled. CardMobili’s latest generation version provides full support for iPhone, Android and Windows Phone 7, allowing users to find, save and use discounts, vouchers and promotions, as well as providing a fully functional digital wallet for loyalty cards on the phone. At the current time, CardMobili handles more than 2,200 client card formats, points and discounts.
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NEWS M-social networking audience up 44% in EU5, says comScore The audience for mobile social networking in the EU5 region – that’s France, Germany, Italy, Spain and the United Kingdom – grew 44% in the past year with 55.1 million mobile users in the EU5 accessing social networking sites or blogs via their mobile devices during September 2011, according to the latest benchmark by comScore. “Over the past year we have seen social networking use grow rapidly among mobile users across Europe, driven largely by the growth in smartphone adoption, making it easier than ever for users to stay connected and engage in social activities while on-the-go,” said Jeremy Copp, comScore Europe vice president for Mobile. “More notably, the rate of growth in daily social networking usage has surpassed even the rate of growth in total social networking adoption among mobile users, suggesting that the behavior is becoming even more ingrained into people’s daily mobile lives. As social networks continue to invest in improving the user experience on mobile devices and tablets, it will be interesting to see how social behaviours on the mobile platform further evolve.” 1 in 4 EU5 Mobile Users Access Social Media?In September 2011, 55.1 million EU5 mobile users accessed social networking sites or blogs on their mobile
device, representing 23.5% of the total mobile audience. Nearly half – 46.8% – of this audience reported accessing social networking sites on a daily basis. Interestingly, the growth in daily social networking use from the previous year outpaced that of mobile social networking access as a whole (67% vs. 44%), indicating that the mobile platform is proving to be conducive to very frequent social networking use. While most mobile users accessed social networking sites via a mobile browser (31.3 million), the number of people using mobile apps doubled in the previous year to 24.2 million. Several social networking brands posted significant gains for their mobile audiences over the past year. Approximately 39 million mobile users or 71% of the EU5 mobile social networking audience accessed Facebook via a mobile device in September 2011 – the largest mobile audience of any social network – and an increase of 54% in the past year. Nearly 8.6 million mobile users accessed Twitter.com, representing a 115-percent jump from the previous year. LinkedIn grew by a notable 134% to 2.2 million unique users, more than doubling its user base during the same time period. Spanish social network Tuenti.com received 2.3 million unique users, growing nearly 60%.
Isomob scores with the Deloitte Fast 50 thanks to micropayments isomob, the company behind FlirtFinder.mobi mobile dating, has seen an 873% revenue growth over the past five years and placement as 33 in the Deloitte technology Fast 50 in 2011 and attributes its success to the deployment of its lucrative micropayment model that junks traditional dating subscriptions in favour of a variety of on bill payment mechanics. Isomob’s Managing Director, Justin Battell, credits the outstanding efforts to the quality of their team and the attention to detail in the execution of every challenge delivering the company’s 873% revenue growth over the past five years. He said, “Our consistent growth every year is something we are very proud of. To have
that growth recognised as noteworthy by Deloitte demonstrates the effectiveness our strategy and is a great achievement for everyone involved.” David Halstead, Partner leading the Deloitte Technology Fast 50, said: “The Deloitte Technology Fast 50 gives great profile to technology companies and is internationally recognised as being one of the most important business awards in the sector. “The 2011 Deloitte Fast 50 shows that tremendous growth rates are still possible, with internet and software sectors showing particular strength and making up over half (56%) of the companies in the Fast 50 ranking.
NEWS PayPal predicts that 2016 will be m-payments tipping point... according to PayPal’s latest study – ‘Money: The Digital Tipping Point’ – 2016 will be the year when UK shoppers will be able to use their mobile phones to pay for things on the high street with digital money rather than cash, cheques or cards. PayPal’s findings are based on a commissioned survey conducted by Forrester Consulting on PayPal’s behalf consisting of interviews with 10 senior executives from major UK retailers and other businesses, representing a combined 2010 turnover of £85 billion. 45 million Britons use a mobile phone and 49% of mobile buyers surveyed by Forrester Consulting use their mobile phones to purchase products at least once every three months**. In the future a whole range of devices will be used to make payments direct to the retailer – regardless of whether you’re in store or shopping online. Carl Scheible, Managing Director of PayPal UK said: “We’ll see a huge change over the next few years in the way we shop and pay for things. By 2016, you’ll be able
to leave your wallet at home and use your mobile as the 21st century digital wallet. Our vision of money is to enable you to pay for something from wherever you are, whatever device you’re on – a PC, mobile phone, tablet, games console and a whole lot more. “2016 will mark the real start of money’s digital switchover in the UK. We’re not saying cash will disappear entirely, but we’ll increasingly use our phones and other devices rather than our wallets to pay instore as well as online. “The lines between the online world and high street will soon disappear altogether. Children born today will become the UK’s first ‘cashless generation’. It will be completely natural for them to pay by mobile. “PayPal’s vision is a one-stop shop for retailers to engage their customers directly during every part of the shopping lifecycle – generating demand from consumers through location-based offers, making payments accessible from any device, not just from the mobile phone, and offering more flexibility to customers even after they’ve checked out.”
… but ‘An Easy Way to Pay’ is not enough to drive global adoption simply providing consumers with the convenience and functionality of mobile wallet technology will not be sufficient to drive mass-market adoption, asserts Mobey Forum in a new white paper. Entitled ‘Mobile Wallet – Definition and Vision’, the paper offers a new perspective on what will drive consumer take up and highlights how industry stakeholders need to work together to extend the user experience beyond that of a conventional wallet by providing ‘rich content’ that offers unique opportunities for users. The paper analyses three success factors and explains that simply migrating the capabilities of a traditional wallet to a virtual environment, would drastically limit consumer appeal. The organisation believes it is crucial that the mobile wallet provides consumers with ‘rich content’ such as loyalty schemes and voucher offers, that
add value to both users and mobile marketers. Gerhard Romen, Chairman of the Mobile Wallet Task Force of Mobey Forum and Director of Mobile Financial Services at Nokia, said: “The recent deployment of mobile wallets is an encouraging indication that the market is coming together to enable this technology. There are already numerous definitions for ‘mobile wallet’ within the industry, so Mobey Forum felt it was important to offer a neutral voice and provide some clear definitions, alongside a considered view of how the market is likely to develop. “The industry needs to ensure that it takes a holistic approach to development and communicates effectively the mobile wallet’s value proposition,” adds Gerhard. “Innovation in mobile marketing will be at the core of this proposition and we see huge potential for consumers to benefit.”
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NEWS Protecting children from mobile porn gets push from national governments national governments, including those in the UK, Ireland, and Australia, are promoting legislation to protect children from pornography and other unsuitable Web content. The ability for mobile device users, many of whom are minors, to freely access the Web, has made this an especially critical issue for telecom operators. If implemented, legislation would require operators to actively block undesirable content and make certain types of content available only if users opt-in to receive it. However, compliance with such laws could be challenging for operators, since Web pages and their content are constantly changing, and new sites are registered daily. In addition, some sites, particularly those with user-generated content (blogs, social networking sites, etc.), may contain a mixture of family-friendly and inappropriate content. Mobixell Networks and Commtouch have announced a new effort to support mobile operators worldwide to comply with these proposed Web content regula-
tion. Mobixell Seamless Access Mobile Internet Gateway, featuring Commtouch GlobalView URL Filtering offers advanced content filtering capabilities which enable telecom operators to improve security for mobile device users and ensure compliance with child protection Web content legislation. The Mobixell/Commtouch solution solves this problem, enabling telecom operators to block access to Web sites deemed unfit for children and comply with even the strictest child protection regulation. Content categorization from Commtouch is available as a module of the Mobixell Seamless Access Mobile Internet Gateway which enables telecom operators to manage complex content delivery policies, offering a variety of opt-in user protection services, including parental control, real-time rating and content verification. “As the use of mobile devices to access the Web increases, it is essential that mobile operators provide increased protection for their users from potentially
harmful Web sites,” said Noam Green, vice president marketing at Mobixell. “The Mobixell/Commtouch solution lets us offer our mobile operator customers an important service for their customers to counter these threats and to ensure that operators comply with pending Web content legislation.” The content categorization mechanism within the Mobixell platform is powered by Commtouch’s GlobalView URL Filtering solution and the cloud-based GlobalView Network. The technology continuously monitors and analyzes Web traffic to provide real-time, accurate categorization of URLs from anywhere in the world. The solution accurately categorizes dynamic user generated content and Web 2.0 sites. Commtouch’s GlobalView Network also features the largest source of real-time, accurate Web threat data via the Commtouch Security Alliance, a union of leading information security community organizations, companies and individuals that share Web threat data. “
COMMENT
Onward to 2012 As we wrap up 2011 – and what a year it was – Paul Skeldon ponders what 2012 will have to offer telemedia Happy old year! So that was 2011? Urrgghhh. Well, there is a recession on and things are a bit bleak right? Well, 2012 looks no brighter for the wider economy, however I think the telemedia industry is set to be OK. Already we are seeing more people spending on small treats – a bit of adult here, a spot of mobile gambling there, a load of social networking everywhere – and this trend is set to continue. While people can’t afford to go on holiday or buy a new car, they want some joy (that hasn’t been ban yet has it?) and so turn to the myriad services offered via telemedia. So for 2012 we will see a load more mobile gambling, mobile gaming, social voting and TV interaction. I suspect as well, driven by the tidal wave of development this year, we will see huge numbers of people using mobile payments in everyday activities. M-payments is the topic du jour and so much work is going into it that we have to see some sort of full commercial, mass market deployment early in 2012. We will also see a great deal more augmented reality services. This Christmas has seen many come to fruition and its my hunch that we will soon see AR as a much better alternative to barcode and QR code scanning – and becoming mainstream as as result. Finally, I believe that the tie up between mobile and the real world will be the big thing of 2012 – starting with live events, it will flourish everywhere and augment life. >>FIND OUT MORE OF MY 2012 PREDICITONS @ TELEMEDIA360 BLOGSPOT>> 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 First and last and always, The Sisters of Mercy | What we’ve been amused by The Daily Mash | Who we’ve been following Blippar | What we’ve been reading about Augmented Reality| January 2012 will bring... Hangovers and mobile payments (and AR!)
INDUSTRY
ADVERTISING
Planning for an m-Christmas Paul Childs, Chief Marketing Officer, Adfonic takes a look at how to plan the perfect mobile advertiisng campaign in the run up to Christmas –based on what the company saw last year in terms of user clicks Christmas is the busiest time in any retailer’s year and it’s important that retailers planning to use mobile advertising campaigns this year make them engaging and effective to capitalise on the opportunity that this period presents. Whether the objectives are to drive traffic to the mCommerce site, create brand recognition or increase footfall to physical stores, a carefully planned mobile advertising campaign can be a key component of any retailer’s integrated marketing strategy. Last year, we recorded and analysed mobile click patterns throughout December from across our mobile advertising network. Our network includes over 10,000 publisher sites and apps generating a global reach of 133 million unique mobile users each month – so it’s a fairly representative view of how consumers are engaging with mobile ads. We identified patterns of behaviour
and trends that occur on mobile over the Christmas period. The results were fascinating – and, by bearing these trends and insights in mind, retailers can integrate these findings and observations into their marketing communications plans for Christmas. Getting an early start Of course, many large retailers will start to plan the detail behind their fourth quarter marketing communications efforts in the second or third quarter of the year. It’s at this point, when planning and assigning budget, that the retailer should put together a mobile advertising brief, particularly if they plan to use more interactive ways to engage consumers like rich media within their mobile advertising campaign. A rich media campaign involves many different stakeholders: ad networks, the party responsible for creative design and development (whether
this is the agency or ad network), the agency, brand, and the rich media platform provider. As a result, there’s a great deal of coordination and many different stages to planning and implementing a rich media campaign. Rich media – bringing mobile ad campaigns to life Rich media is a big theme for the mobile advertising community and some retailers and brands will make use of rich media creative this Christmas. Rather than a mobile ad appearing as a standard banner on a screen, rich media creatives deliver immediate interaction and engagement with consumers on the phone. Some rich media campaigns may start out as standard banners, too: once a consumer clicks on the banner, the engagement begins as the standard banner expands to full page, a video begins to play, or the consumer is directed to a number of interactive pages
Week One: 28 November – 04 December The campaign refinement process Last year, mobile click numbers were steady across this week, and hadn’t yet risen to the heady heights sustained throughout the rest of December. This is a good period, then, for retailers to trial various creatives that they may have developed for their rich media advertising campaigns. When they have ascertained the creative that is performing best, retailers can shift budget to this for the remainder of their Christmas campaign. Retailers should also make sure that their mobile ads are served at the best time of day to engage consumers – previous research from Adfonic found that mobile clicks rise in the evenings from 18:00, as online traffic begins to fall. Measurement plays a vital role in helping retailers to decide on which creative is more engaging and effective. Retailers can measure the specific impact of their rich media mobile ads in particular – if, for example, the rich media mobile ad includes a video clip, it’s possible to understand how many completed and partial views it is receiving and which part of the ad people are clicking on. This data should be informing planning and tweaks to January sales creatives, which we’ll come to later. Week Two & Three: 05 December – 18 December Measure, measure, measure Last year, this week saw a great rise in mobile clicks – on 7th December, mobile clicks were almost double the number of the day before. From this date, mobile clicks increase sharply every day, reaching a peak on 12th December – possibly marking the ‘first phase’ of consumers’ Christmas shopping in December, as Christmas draws nearer. As we’ll see, there is a later surge in the week preceding 25th December itself – the ‘second phase’. During this time, it’s likely that retailers will be experiencing a great deal of traffic to their mCommerce sites. Retailers should continue to measure the impact of their mobile ad campaigns: various metrics will allow the retailer to see the reach of the campaign, how many people are clicking on mobile ads and how users are interacting with the ad. In addition, real-time post-click conversion reporting will allow retailers to continue to measure the impact that their mo-
INDUSTRY
ADVERTISING
that communicate a brand story. In essence rich media is more akin to a TV ad, and it’s this additional engagement that drives higher conversation rates and engagement soft (recall) and hard (interaction) metrics. John Lewis and the IAB recently carried out a study which found that of 1,250 or so panelists, those exposed to an expandable banner were 25% more likely to recall the rich media advertising than those presented with a static banner. These adverts are highly trackable with retailers able to see which times, creatives and elements are driving shoppers to the mCommerce site and subsequent purchase. Retailers can trace everything from how many people view an ad, interact with the rich media brand experiences to how many click through to the site and generate a purchase transaction. An integrated approach When planning Christmas marketing
campaigns, it’s important to avoid the trap of viewing mobile in isolation. The fundamental purpose of integrated marketing communication is to make all efforts and resources work together to maximise impact at minimal cost. Rather, mobile should be viewed as just another marketing channel, all marketing efforts should be integrated, with similar creative and messaging – whether this is on television, online or via mobile. When the campaign is aligned across all channels, they reinforce each other: so, television advertising creates awareness, and web and mobile advertising drive direct response. Mobile ads that are coordinated to appear at a simultaneous time to television ads from the same retailer can be very powerful – because the consumer, both watching TV ads and browsing on a smartphone or tablet devices, is a mere click away from the retailer’s mCommerce site or
other call-to-action. Mobile advertising, deployed in this way, helps to close the loop to transaction. Once the campaign has been thoroughly planned and implemented, it should run from early November. However, it’s in the final weeks of November and the first few weeks of December that its effectiveness and ability to engage the consumer will become evident – and, with last year’s trends in mind, we have some advice for those running advertising campaigns over the final month to Christmas Day.
bile ad campaign is having, demonstrating how many mobile clicks are resulting in a transaction. This allows the retailer to make changes in real time to the ad campaign to optimise results, even as the campaign is in progress. Week Four: 19 December – 25 December The switch to a January sales mobile ad campaign This week is another ‘boom week’ for mobile clicks – thanks, arguably, to a combination of last-minute shopping and the ever-earlier start of the January sales. During this week, it’s time for retailers to change the creative of their mobile advertising campaign and move to their post-Christmas campaign, focussed on driving transactions in January sales. The date to end the pre-Christmas mobile ad campaign, and begin the post-Christmas campaign, will vary depending on the kind of retailer. Retailers that are operating purely via mCommerce and eCommerce sites – such as Amazon – are likely to have a last-delivery date several days prior to Christmas Day, before which consumers must place orders to accommodate delivery before 25th December. As a result, these retailers can implement their January sales mobile ad campaigns several days prior to the 25th, driving traffic to their mCommerce site, where their sales are hosted. Indeed, Adfonic’s study of mobile click patterns from last year suggests that this is very effective: from 23rd December, mobile clicks increased substantially each day, and in fact Christmas Day itself was the second biggest day in December for mobile clicks across the Adfonic marketplace. Some retailers, however, won’t operate purely via their eCommerce and mCommerce sites – they may also have physical shops, particularly if they are a very large, nationwide brand such as John Lewis or Marks and Spencer. In the case of these retailers, they may wish to keep their pre-Christmas creative in place until the closing hours of Christmas Eve itself – to increase footfall to their stores during the final few days that late shoppers buy Christmas gifts. The iPad 2 is very likely be one of the most popular gifts this Christmas, and iPad traffic will receive a large boost as a result – something for retailers to bear in mind when planning their January sales campaigns. My key advice for retailers looking to bring mobile into their advertising strategies this Christmas and January is to integrate the mobile campaign with campaigns running across other channels; be aware of how consumers engage with mobile over the festive period and last but by no means least, measure and adjust campaigns as a continuous process to see the best results.
INDUSTRY
MARKETING
Location marketing for brands and businesses Neil Cartwright, head of digital at Media Junction http://www.mediajunction.co.uk discusses how location marketing has to be on the agenda for businesses as we enter a challenging 2012 it’s a cliché, I know, but how many times have you heard in retail, “Location! Location! Location!” It has long been understood by shop owners that however good your product, your marketing campaign or your in-store ambience, get the location wrong and your customers either won’t find you or simply walk on by. The right or wrong location can, therefore, make or break the profitability of a shop. Traditionally however, because of restrictions in technology, the assumption was always that the knowledge flowed one way, i.e. the customer had to know the location of the shop but the shop could never know the location of the customer. Therefore, retails made huge investments getting their location, marketing and branding right. This included securing prime locations in shopping centres, developing instantly recognisable signage, offering in-store promotions etc. Lately however, new technology has begun to make the previously impossible a reality. That is, the retailer can now know where their customer is. In addition, questions such as, are they close by? Do they intend to visit, or can they be incentivised to visit? Can the customer be encouraged to tell their friends when they’re in the your location, and hopefully encourage them to visit too. Did they buy anything on their last visit, and if so, can you offer them a reward or incentive to either buy again or perhaps up-sell something new. Imagine, as a retailer, knowing not only your customer’s location, but who they are, their purchase history and even something about their friends, is surely the ‘Valhalla’ of marketing? The emergence of location marketing offers retailers the ability to identify and communicate with customers in, or near, the vicinity of their stores. It is actually an amalgamation of different technologies, which tend to centre on the mobile phone as the primary communication tool. However it also can encompass products such as contact-
less credit cards, out-of-home marketing and in-store signage. The breakneck development of location marketing as a valuable and powerful branch of marketing is made possible by the extremely rapid uptake of smartphones by customers. A recent report in November 2011 estimated nearly 70% of all new phones were ‘Smart’ and that 45% of adults now have a mobile considered ‘Smart’. The definition of a ‘smartphone’ varies, but primarily it means the phone can run applications and is connected to the Internet via 3G or Wi-Fi (or soon, 4G). This means the customer can be uniquely identified via their phone and using Apps, such as Maps, GPS or Check-ins, their location can be identified. Once you know who the customer is and where they are, your App can do pretty much anything to communicate, entice, motivate and reward them to visit the store. The range of technologies that can be classed as “location marketing” is constantly growing, but includes; Foursquare; NFC; Google Maps; Lokast; Facebook Places; Living Social; Voucher Kitty; Google Places; PleaseMe; QR codes; Brand Table; Vouch-cha-cha. These services build on the fact they can identify the customer’s location and subsequently offer them information about retailers and services close by that match their interest. Foursquare is building a foundation for mobile location services and has just attracted a $50m investment in the US based upon the concept of the “check in”. This idea is rapidly becoming a fundamental cornerstone of location marketing and requires the customer to check-in when they visit a location – either using an app or, soon, via tapping an NFC-enabled reader. The retailer can offer customers ‘specials’ to motivate them to check-in. The special could be set-up to either attract new check-ins, for instance by rewarding the customer’s first check-in. Or it can reward loyal customers, for example, by
offering them a reward every 5th checkin or by being becoming the ‘Mayor’ (i.e. the person who has checked in the most). Brands using and experimenting with Foursquare include Dominos, Amex, MTV and Blackberry. Dominos offered the Mayor of every restaurant a free small pizza every Wednesday to reward their loyalty. Amex offered cash rewards to people using their pre-registered credit card at participating locations in Austin, Texas, during the South By Southwest Festival. They used Foursquare to power the location verification. Google is pushing aggressively in to localised marketing by combining a powerful suite of products, underpinned by their own mobile platform, Android. Google Maps, Wallet, Places and Adwords are being integrated to offer both multiple chains and independent stores an extremely advanced and targeted way to reach local customers. A business can register for free a Google account and subsequently use the tools to list their business on Google Maps, reach their local customers with Adwords and then provide them with offers and rewards using Google Wallet. Google recently sent thousands of businesses in the USA a unique QR Code, which could be stuck on the shop window. If scanned, it took the user to the listing on Google Places, which could provide reviews and details of any special offer. Early adopters of Google Wallet include Footlocker and Subway. However, the true power of Google Wallet will be realised when combined with near field communications (NFC). NFC is currently one of the hottest buzzwords in marketing at the moment. Major technology and payment companies, such as Google, Microsoft, Visa, MasterCard, Barclaycard, Nokia and Samsung, are investing in the infrastructure and partnerships required to achieve mainstream adoption. The potential of NFC can’t be overemphasised – it could eventually become a
INDUSTRY
MARKETING
replacement for the majority of cash transactions, ticketing, keys and loyalty schemes. For example, in France Orange Business Services demonstrated how a hire car could be reserved, opened and started using an NFC ‘key’ sent to a mobile phone. In Sweden, VingCard – the largest supplier of hotel door swipe cards – converted the Sofitel in Stockholm in to the world’s first ‘NFC’ hotel. Guests were sent their room key via mobile phone, which not only unlocked the door but also could be used to pay for services at the hotel bar or reserve the Spa. Intellitix, a Canadian company, are replacing festival tickets with wristbands embedded with small NFC tags. These not only speed up entry at the main gates, but can be used as ‘pre-paid’ payment cards, meaning festival goers will no longer
have to carry, and risk losing, lots of cash. Combined with technology such as Foursquare and Google Wallet, NFC could completely change the face of retail, encouraging customers to adopt the concept of ‘checking in’ wherever they are in exchange for rewards, gifts, social networking and better customer service. Powerful customer relationship management (CRM) tools will also be required to track and build profiles of the customers. However, NFC is not purely about payments or complex CRM. The British funk band, Jamiroquai, recently used “Smart Posters”, which had NFC tags integrated, to enable fans to enter an exclusive competition on their mobile phones. Brand Table, an Austrian company, use NFC to direct diner’s in a shopping centre food court towards the
menu of their choice – instead of joining a queue the restaurant’s logo can be scanned at the table. This introduces a new concept called “Preferred Location” – in future a brand can engage with a customer wherever the customer would rather be, instead of trying to pull them in to a physical store. The concept of location marketing is profound for marketing and technology companies. The prospective uses are vast and the ramifications immense for how brands communicate, engage and reward their customers. This new branch of marketing will require an advanced combination of technology, CRM, social media and direct marketing. >>You can follow Media Junction on Twitter @MJ_Digital http://www.twitter.com/MJ_Digital>>
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INDUSTRY
PAYMENTS
Will NFC ever shake up the payments market? Sirpa Nordlund, Executive Director of Mobey Forum, the association which is working to define a sustainable and prosperous mobile financial services ecosystem, explains why near field communications (NFC) technology is much more than payments NFC IS WIDELY touted as the future of mobile payments, but for those involved in the development of this industry, this is merely the tip of the iceberg. The rich operating environment offered by NFC provides a foundation that will revolutionise the mobile and payments landscapes. Brands and merchants will be able to communicate directly with consumers in a relevant and innovative way, through proximity marketing on an end-user’s mobile handset. With the launch of a number of schemes seeking to bring mobile wallets to the marketplace – such as Google Wallet, Isis wallet and Visa wallet – the discussion surrounding NFC is now even more intense. This is a technology which has been discussed for the last decade but it is now evident that, with industry players such as Google entering the fray, it is NFC’s time to shine. There are two different types of NFC. Presently, the majority of the hype is focused on ‘secure’ NFC which allows users to make low value contactless proximity payments. The concept of this technology is popular amongst consumers and merchants as it is convenient – no need to carry cash and rummage for change – and it speeds up the transaction process, reducing queuing times. Implementation of this payment service requires a mobile device to have an encrypted secure element (SE) present to host the customer’s payment credentials. Separate from the mobile device’s memory, the SE is capable of running programmes and storing data, and only allows certified and trusted applications to be stored. The evolution of secure NFC technology has been hampered by the complexities surrounding the security of the payment credential and agreeing the ownership of the customer relationship. It is the first time many markets have converged to deliver services via a mobile handset, which in turn has required a new infrastructure to be
developed and commercial benefits to be identified. In contrast, ‘open’ NFC does not require, or allow, the exchange of confidential details, it simply enables communication and interaction between NFC capable devices such as an NFC-ready mobile handset and stickers, tags, posters...the list goes on. For example, a retailer can advertise their shop / service on a poster, allowing consumers with NFC enabled mobile phones to ‘wave’ their handsets over the NFC symbol to receive a discount voucher and open a navigation application to get directions to the nearest outlet. Alternatively, initiating the exchange of information by waving your phone over the symbol may provide further background information and audio accompaniment to a painting in an art gallery; open a URL to view up-to-date bus timetables; or find out
the latest concert dates for a band. The barriers It is important to remember throughout this discussion, that the technology is now in place to make NFC payments and services a reality. Whilst the enabling technology exists today, the infrastructure required to support mass market NFC has not yet been deployed on a wide scale and the ecosystem is still developing. In many ways the industry players are still waiting for each other to make the first significant commitments to drive NFC forward; no-one wants to be the first to get it wrong. For example, the technology is ready but the number of NFC-capable handsets in the marketplace is minimal and the availability of point-of-sale contactless readers is concentrated in specific urban areas where trials have been undertaken. The
INDUSTRY
PAYMENTS
growth of the ecosystem and infrastructure is therefore key to the progression, development and deployment of NFC solutions. So what needs to happen next? New, cross-industry partnerships need to be established in order to ensure that relevant and profitable business relationships are fostered, and a trusted and secure network is created across a range of industries including telecom, banking and retail. For many of these key industry players it is the first time they have cooperated to such an extent and, as such, there is no template or benchmark for them to work from to expedite this process and offer commercial guarantees. It is the role of not-for-profit organisations such as Mobey Forum to provide a common roundtable to assist both business and technical stakeholders in visualising the whole ecosystem and the benefits each other can bring to the table. To achieve widespread adoption and commercial success NFC, in all of its forms, must be customer centric and based on an open, yet trusted, infrastructure. Mobey Forum believes that it is central to the future success of this technology that the consumer is granted control of what is in their phone and how they use it. The consumer should have the option to choose which payment system provider they use, which mobile network operator, which handset, rather than being tied into a ‘package’. This choice, this flexibility to select the applications which are most relevant and convenient will drive acceptance in the consumer marketplace. Overwhelming benefits The potential of the technology to replace cash is certainly high. This can be seen in the recent launch of a number of wallet schemes which aim to bring together the contents of a tangible wallet – payment, vouchers and loyalty – in one virtual ‘wallet’ application on a mobile device.
The intuitive nature of NFC applications and the connectivity between open and secure NFC services will be a key asset. When making a payment to a merchant, vouchers and offers stored on the phone will automatically be brought to the customer’s attention. Carrying a loyalty card will be a thing of the past, for example, as ‘waving’ the handset over the payment terminal will result in loyalty points being applied to a virtual loyalty card. This will enable points to be redeemed immediately or stored on the phone for future use. Using the screen of a mobile handset also gives merchants the ability to promote offers to consumers directly, in real-time to develop heightened brand awareness and loyalty. Another example is transport operators which are now upgrading to contactless networks. Travel cards can be stored on a mobile handset, for example, rather than a separate plastic card. This would bring many benefits, such as allowing the end-user to update the balance of the transit application on the move via the internet connectivity on their handset. So, will it shake up the market? Mobey Forum believes that it will. Once the ecosystem is in place studies have shown that the marketplace is ready for deployments of this kind. A study by Gartner, conducted earlier this year, concluded that worldwide mobile payment users will surpass 141.1 million in 2011, a 38.2 percent increase from 2010 and Juniper Research found that Global NFC m-payment transactions will be almost US$50 billion worldwide by 2014, with 20 countries expected to launch NFC services in the next 18 months . Undoubtedly, education is needed, but there is an undeniable market for NFC based technology. Projects around the world are now trialling NFC on a local scale. The Cityzi project in Nice, France has had great success in implementing NFC citywide. On this small scale, banks, mobile
network operators and retailers have come together to develop functioning relationships and have deployed NFC in retail outlets, the transport network and in museums. With positive feedback from users and stakeholders alike, the project aims to expand its trial with a national roll out. NFC may not replace cash any time soon, but it will certainly give it a run for its money. The industry needs to commit to developing the whole infrastructure and cannot focus entirely on one aspect – such as payments – it is the ability to deliver all possible NFC services to an individual that will encourage adoption and use. It is the role of industry bodies such as Mobey Forum to assist both business and technical bodies in appreciating what their technology options are and how they can work together in the development of a strong, secure and sustainable ecosystem. To successfully achieve this, Mobey Forum seeks new alliances with bodies such as the European Payments Council, NFC Forum and GlobalPlatform, to ensure that work is not duplicated and it understands the sensitivities and requirements of each stakeholder. >>For further information about becoming a member and participating in Mobey Forum’s work initiatives visit www.mobeyforum.org.>>
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Dimoco
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telequest & Internet Solutions GmbH
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ImpulsePay
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Telemedia Industry Directory BT Agilemedia
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Orca Digital
Open Market
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Mobile Messaging, Direct Billing, IVR, Video Shortcodes, Location-Based & Mobile Crediting Services
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Sundial Telecom
Trodat Telecom
Voice, Fax, Web, WAP & IM integration
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Core Telecom
Crazy4Media
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paythru
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txtNation
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