mobileSQUARED issue 7 by Nick Lane

Issue 7

Thinking about mobile

• GSMA MMM to impact on UK mobile AD market • YOC teams up with mobileSQUARED to share Europe-wide data • Neustar exploring the portability of portability • Qualcomm, Carroll’s Quest and Camerjam • And, introducing our new monthly columnists…

Who’s in this issue... YOC, GSMA, comScore, Qualcomm, Neustar, MediaCom, M&S, ISBA, SKY, Incentivated, Orange, BBC, Airwide, Neustar, IAB, Nationwide, Nokia, Boomerang SMS Solutions

editorial Nick Lane, Chief analyst/writer nick@mobilesquared.co.uk Tel: (44) 1483 856 514 Mob: (44) 7976 057 052 Michael Carroll, Contributor michael@mobilesquared.co.uk Tel: (44) 1483 549 840 James Cameron, contributor AKA Founder and head of strategy, Camerjam Events james@camerjam.com How to find us: mobileSQUARED HQ Unit 1 24 North Road, Guildford Surrey, GU2 9PU UK ISSN no. 1759-6483 Published in the UK 12 times per year in pdf format No part of this publication may be copied, photocopied or duplicated without prior written permission from the publisher, D2 Mobile Ltd mobileSQUARED is a trading name of D2 Mobile Ltd. The mobileSQUARED team offers unique forecasting, analysis, research and insight on the mobile market, providing highly focused reports and bespoke intelligence. We tailor our approach to the requirements of each project and use our network of global network of contacts. Our extensive market knowledge stems from years covering the mobile industry meaning that we’re in a position to respond immediately to market developments. All rights reserved. Opinions expressed by individual contributors may not personally reflect the views of D2 Mobile Ltd. Whilst reasonable efforts have been made to ensure that the information and content of this publication was correct as at the date of first publication, neither D2 Mobile Ltd nor any person engaged or employed by D2 Mobile Ltd accepts any liability for any errors, omissions or other inaccuracies. Readers should independently verify any facts and figures as no liability can be accepted in this regard. Readers assume full responsibility and risk accordingly for their use of such information and content.

Mobile World Congress can now be consigned to the “been there, done that” file for 2010. And what an event it was. There was the usual thievery and tomfoolery as you’d expect at the mobile industry’s annual get-together in Barcelona, but there was also some significant announcements. None of which, you’ll find in this issue of mobileSQUARED Nothing personal, but we just haven’t had the time to process the 40+ interviews we conducted during the week. However, all of our information and analysis gathered at MWC will be up and running on our new website which goes live from March 15th, and we will have some very interesting features as we take the world of analysis to a new level. For the time being, let’s focus on the issue at hand, our February issue (out in March, granted), but good things come to those who wait, and we have good things in abundance. We start by taking a look at the GSMA’s launch of Mobile Media Metrics with comScore to assist the UK mobile advertising market (Mobile advertising data comes alive with MMM). And as an extension to that article, we did some market research on the back of that announcement, and not only will it assist UK mobile Internet advertising spend, MMM provides the inflection point and impetus the marketing world had been waiting for (Crunch: UK mobile ad spend to enjoy 10% injection in 2010). Our revised “MMM-based” forecasts for the UK are contained within. Clearly, there is a need for MMM on a global scale to finally create the mobile advertising revenues we as analysts have been talking about for years. We also have a global first. We have signed a deal with Europe’s leading mobile solutions provider YOC to share some of their data captured from publishers around Europe with mobileSQUARED. Every month we will either look at sectors or markets, gradually building up trend analysis as we receive more data. First up, we look at YOC’s domestic market, Germany. And lastly, I would also like to introduce our new columnists, Gee W. Bush and Toe-knee Blair. What a coup for us indeed. These guys have been running some of the most talked about campaigns during the noughties, and now they will lend their expertise to assist with campaign management in the world of mobile advertising. As ever, we end the issue with information about our mobileSQUARED Roadshow events. It’s not too late to get involved. As ever, all you need can be found at www. mobilesquared.co.uk Nick Lane Chief analyst

contents Page 3, Mobile advertising data comes alive with MMM Page 5, Crunch: UK mobile ad spend to enjoy 10% injection in 2010 Page 7, The search for mobile advertising revenues of mass construction Page 8, Neustar exploring the portability of portability • Page 9, consumed2, Camerjam says mobad needs peanuts before it can go Nationwide Page 10, Carroll’s Quest: Nokia X6 Page 11, company feature, Qualcomm claiming cross-platform app solution Page 13, New kids on the YOC: German data Page 17, walled garden, Tanner on why banks need mobile responses

Page 18, Roadshow update, Never too late to get involved

main feature

Mobile advertising data comes alive with MMM Almost a decade in the making, but on February 4th Vodafone, O2, Orange, T-Mobile and 3UK coerced by the GSM Association finally announced the official UK launch of the GSMA Mobile Media Metrics (MMM) delivering mobile media reporting in a move that will finally provide the eagerly-awaited boost the mobile advertising sector has been hankering. The pioneering census-level solution providing transparency into the UK’s mobile Internet activity, has been delivered by comScore and is claimed to provide comprehensive insights into mobile media consumption, with the end goal of “empowering brands and agencies to plan effective and focused campaigns for the mobile medium”. “Eyeballs are moving away from traditional media to online and digital and mobile,” said Rob Conway, CEO, GSMA at the launch in London. “Money follows audience, though maybe there has been a lag in this case, but money always catches in UK. Online has become the biggest medium in just 10 years. Gartner forecast that mobile Internet usage will overtake PCs usage.” According to Bob Wootton, media and advertising director at ISBA ‑ British advertising industry association, speaking at the launch, he expects the next 10 years to be the time for mobile “as social networks and brands seek personal engagement. Giving brands the audience metrics opens the way for the mobile media. The devil really is in the detail.” Mobile Internet usage data provided by all five UK operators – though only four were supplying data at the launch with the fifth expected to get in on the act by 2Q2010 – will be anonymised by MMM and aggregated to reveal usage behaviour, market-level analysis and engagement metrics, such as page views, time spent on specific sites, and device types and features.

“Census data is better than anything else that is out there,” said Tim Hussain, head of mobile advertising for Sky, one of the biggest ad spenders in the UK, but yet to extend that to mobile because of the lack of audience data. “That instils confidence and we need to communicate this to brands and agencies.” For Sienne Veit, social and mobile commerce development manager, M&S Direct, she believes that mobile presents greater opportunities to engage with the customer, but brands like M&S need a 3D vision of the user and their behaviour. “The ad has to go where the audience is going to be,” said Michael Smith, deputy director of interactive services, COI, the biggest investor in mobile marketing in the UK. “We know the users are going to mobile, but do we know where they are going, how they want to engage? Customers don’t want a relationship with us 24 hours a day, so how do we handle that, what relationship can we have with them? We are now starting to answer that.” Consequently, David Fieldhouse, head of mobile at MediaCom, said that mobile is becoming the “heart of every department”. He also believes that as a media buyer it is providing a common currency that is levelling the playing field. “When the people at the coalface [in media buying], often aged 23-25 years, they can now sit down with the client and confidently show them why to use mobile.” Wootton said he was first involved in talks about a common mobile metrics standard back in 1999 with Vodafone, Orange, Cellnet and Mercury. “The notes from the meeting back then mentioned simplicity, accountability, actionability,” he said. “Now the mobile medium is a little bigger and more mature and in 2010 mobile advertising really is back on the agenda again. And the next 10 years will be about mobile.”

main feature

As a taster, comScore revealed that 15.98 million people in the UK accessed the Internet from their mobile phones in December 2009, viewing a combined total of 6.7 billion pages and spending an aggregate of 4.8 billion minutes online during the month. The top 10 sites accounted for 70% of both total pages viewed and total time spent online on mobiles during the month. [mobileSQUARED forecast in 4Q09 that the number of mobile Internet users in the UK was 15.8 million – see issue 6]. “Page views and time spent on the mobile Internet account for almost half of web usage,” said Paul Goode, comScore’s senior vice president of Mobile Census Solutions. He explained that social networks are users searching for people, but on mobile this extends to a greater level of interaction and connectivity, although the sessions are shorter but more frequent.

Top 10 UK Mobile Internet Sites Dec-2009* Total Unique Visitors (000)

Total Pages Viewed (000)

Total Minutes (000)

Total Mobile Internet Audience

15,947

Total Mobile Internet Audience

6,659,428

Total Mobile Internet Audience

4,792,411

Facebook.com

4,986

Facebook.com

2,635,771

Facebook.com

2,156,886

Google Sites Telefonica Mobile Networks Orange Sites

4,567

Google Sites

894,273

Google Sites

395,576

3,731

Orange Sites

252,294

Microsoft Sites

165,725

3,553

Apple Inc.

177,648

Orange Sites

138,529

Vodafone Group

3,310

AOL (inc. Bebo)

158,988

AOL (inc. Bebo)

106,446

Yahoo! Sites

1,995

Vodafone Group

135,003

Apple Inc.

104,118

BBC Sites

1,851

BBC Sites

104,303

Vodafone Group

89,126

1,639

Microsoft Sites

103,566

BBC Sites

83,614

1,525

eBay

95,662

Flirtomatic

54,503

1,147

Flirtomatic

92,654

Yahoo! Sites

48,685

Microsoft Sites Apple Inc. Nokia

nick@mobilesquared.co.uk

Source: GSMA Mobile Media Metrics

open mobile advertising

Mobile Advertising for iPhone 30+ Ad Networks 215+ Countries 99% Fill Rate 1 Single Connection

● ● ● ●

Smaato: The leading Mobile Ad Optimizer www.smaato.com

info@smaato.com

crunch

UK mobile ad spend to enjoy 10% injection in 2010 mobileSQUARED forecasts an almost immediate impact on the UK’s mobile advertising spend on the back of the GSMA’s launch of the Mobile Media Metrics (MMM) earlier this month, generating additional spend by over £80 million over the next five years. Research conducted in the aftermath of the GSMA’s announcement at the start of the month has revealed that the UK mobile advertising industry expect a 10% uplift in mobile Internet-based advertising in 2010, with spend more than doubling expected investment levels between 2011 and 2014. With brands such as COI and M&S openly declaring that the launch of MMM will provide a 3D view of the mobile landscape that they need to justify ongoing investment in the mobile medium, the mobile advertising industry – it appears at least – has been given the much-needed boost it has long been yearning.

into mobile.” He believes MMM will be a clear accelerant for increased investment.

buying cycle a lot simpler. MMM is a first and important step to address both of those areas.”

Alex Kozloff, media research manager at Orange, believes attitudes by brands towards mobile changing. “The launch of MMM is like turning a light on in a dark room.”

But how will MMM impact on spend? According to mobileSQUARED, the UK mobile Internet advertising market (defined as banner and links, search and tenancy) was worth £13.69 million in 2009, and was originally forecast to grow by a little over 30% to £18.1 million by the end of 2010. In light of the MMM launch, the 2010 figure is expected to reach £19.9 million. While this represents a 10% increase on anticipated spend, it will actually account for a 45% increase year-onyear in mobile advertising spend on the mobile Internet.

“There is a very clear message coming back from the market, brands and agencies are very keen to invest in mobile, but there are a couple of areas that need to be addressed,” said Jonathan Kelly, head of mobile advertising, Vodafone Group. “Need a much better understanding of the audience. And we need to make the

Jonathan Bass, managing director at UK mobile marketing firm Incentivated, believes Mobile Media Metrics will “unlock substantial budgets from the marketing departments and the ecommerce departments, which is something we have never seen before.” Similarly, Tim Hussain, head of mobile at UK broadcast Sky says the last 18 months in mobile have “been really good” from a mobile advertising perspective with major brands such as Nestle and Emirates “all really moving Source: mobileSQUARED

crunch

But it is in the longer term, where the real financial benefits of the MMM launch will be felt. In 2011, projected mobile advertising spending is likely to experience an uplift of 23%, taking the expected year-on-year increase in spend from the originally-forecast £25.65 million to £31.55 million. And as more brands increase their spend, and the footprint of brands investing in mobile broadens over the next five years, the previously forecast value for the mobile Internet advertising market in 2014 is now projected to increase by an additional third. UK mobile internet traffic by top 10 sites

Source: GSMA MMM

% of UK traffic that can be monetised through advertising

deemed brand friendly, inserts an ad. Chris Lennartz, vice president of product marketing at Airwide, told mobileSQUARED that there is no reason why the principle could not apply to social networking traffic to enable mobile operators to profit from the vast traffic. It is a solution that could potentially “sweep” the social networking page for unsavoury content and then serves the ad. In doing so, it is policing the content of each page and protecting the brand’s image.

No doubt, this is just the start of a series of solutions introduced onto the marketplace to open up the world of the social networking to advertising. SQUARED For the time being, the focus remains Source: mobile on the GSMA and the impact of its But mobile Internet ad spend could in itself MMM announcement. be increased by the ability to monetise every site. For instance, of the top 10 sites In total, the launch of the GSMA’s MMM is forecast by mobileSQUARED to for traffic, Facebook is by far the most inject an additional £83.94 million into popular site among UK users, does not the UK’s mobile Internet advertising serve ads, neither does the BBC. That means that 41% of total mobile Internet market alone, based on existing traffic is not being monetised – of course market conditions. While the research BBC’s 1% of traffic cannot be monetised, has only focused on the mobile Internet, the real value could actually but the fact that Facebook accounts be significantly higher as brands, for 40% of total UK traffic and is not encouraged by the MMM census data, monetised is a disturbing figure for the increase and expand their mobile mobile advertising industry. investment beyond the mobile Internet But for how long will this situation and capitalise on mobile’s broad continue? Companies are constantly inventory, especially in the area of trying to crack this conundrum, up apps, exacerbated by the indulgence of there with monetising Twitter. Airwide numerous platforms and app stores. demonstrated at MWC an ad insertion nick@mobilesquared.co.uk solution for return-path tweets. The company demonstrated how its Open Service Framework solution monitors the tweet for unsavoury content and if

“Not spending my time in the oral office has provided me with some time to reflectionerate and take stock of what I am yet to achieve in my life. Even a man who has a CV with ‘President of the United States of Americanisms: 2001-2009’, written in big bold letters at the top and with an official stamp to confirm this, is being asked by future employees to justificate why I have not been working for a whole year. I have to act. And then as if by fate, the call came from a company new to me, mobileSQUIB, asking if they could hire my services and expertise. My mission is to help them locate the mobile advertising revenues of mass construction that have been eluding the clutches of some of the most powerful mobile companies and agencies around the world for years. I was very flattered because mobileSQUAD was already aware of the fact that I have overseen many campaigns during my time as President, and this would put me in good stead for my newest adventure. After negotiorizing my budget for the campaign, it was decided that it would

be an experimental exercise in mobile reconnaissance starting off with a small investment and then if I can demonstrate my DIY skills, additional funds will be made available for more strategic activity. This is a massive undertaking, and I could not do it without my lifelong ally ToeKnee Blair. He’s my bestest friend in the whole wide world and I text him every day. When I told Toe-Knee that we could once again use our expertise gained from years of searching for “uctions”, on a mass scale around the world without the need to justificake our actionisms, he was very excited. This is undoubtedly a new ‘uction’ for us: that of ‘construction’, and we are committed to assisting those brave souls that have already put their revenue on the line for the sake of mobile advertising. It will be an esteemed honour to serve the mobile advertarianisms. I was particularlarlarly interested in the announcement by the GeeSMA and their invitation to “come and score” with them recently. Hell, if I wasn’t a happily married

man, I would certainly investigate, though I would be put off receiving the metrics about my performance and how I could best spend my money next time.”

“Yes, er, that’s right, [pause/sweat]. I think working with Gee W once again is the right thing to do. I would agree with everything that Gee W stated and would just [dramatic pause] like to reiterate that we are firmly behind and fully support Gee W and will enter the search for mobile advertising revenues of mass construction with endeavour and aplomb (I’m sure that used to start with a B!). Speaking of B, we’ve, just returned ... from our first, mobile advertising mission to [delay... a dramatic tension-building pause. B for????] Barcelona. I asked Gee W. how his Catalan was and he said he needed to buy shirts and pants. His drive to boost the global economy is unrelenting. An, inspiration for us all. Myself and Gee W. fully anticipate to have completed the Barcelona debrief by the next issue.”

company feature

Neustar exploring the portability of portability Articles about portability are often about number portability. Granted, portability is clearly referenced in the headline very clearly. But this is an article about the dynamic application of portability to content and services that are now shaping our mobile lives. The company in question is Neustar. The same Neustar commonly viewed as the number portability specialists across the US, and the mobile IM experts throughout Europe. These services are indeed part of the USbased company’s heritage. In the US, its registry contains 350 million telephone numbers and the majority of phone calls in the US traverse its exchange. While it has a mobile IM product deployed in over 30 carriers. Now, the company believes it is time to tell the world what else it can offer. It has spent much of 2009 drafting its repositioning strategy to evolve beyond its present typecasting, and create a suite of services based on its expertise deployed around the world. “We talk a lot about ourselves as a number portability company, but portability is portability, whether that portability is for a phone number or for a movie, for music, a book, or for pictures,” Lisa Hook, Neustar’s president and COO told mobileSQUARED. “We’re extending our portability heritage more broadly now to meet the growing demand in the market from consumers – I want my stuff, when, where and on the device that I specify.” That portability heritage includes

combining competitive companies’ data into a central registry and using it to authenticate and verify real-time delivery requests. For instance Neustar is playing an active role within the digital entertainment content ecosystem (DECE) to help deliver content to any device at any time anywhere. “If you go into Walmart and buy the latest Harry Potter or Hangover there is a code contained within the packaging that gives you the licensing to access that content anywhere,” says Eric Burger, senior vice president and CTO at Neustar. “We are enabling this content portability because when a user types in the license for that particular item of content, we can confirm and verify that license to that user and grant them access to that content.” DECE is attempting to create an open ecosystem by including all of the major studios except Disney, and all of the device manufacturers expect Apple, and major retailers like Walmart and Tesco. “People buy the content and not the format,” says Hook. “Apple is a closed environment unlike the DECE which is working towards an open environment. We’re the enabler for this digital lifestyle ecosystem for DECE.” Neustar’s opportunity is that of a trusted independent mediator overseeing the data supplied by each party. Hook claims that studios don’t trust the retailers, while the retailers don’t trust the studios because they have tried to go direct to consumer.

“No one trusts the consumer, because everyone just assumes that the consumer will steal the content at any given opportunity.” Again, Neustar’s heritage and operator credentials have allowed the studios and retailers to put their faith in its data registry. And the role of trusted data registry looks set to be expanded once again into the realms of mobile marketing with ambitions of delivering global barcode solutions as a means to address the nationalised shortcode dilemma. “Common shortcodes are what mobile operators and application providers need to move to a successful mobile advertising strategy,” says Hook. “Coke do not want to print a code on their bottles in France and a different one for Spain and the UK. They want one solution across all bottles globally.” To overcome the international dialling code requirement that has plagued the development of international common shortcodes, Neustar is working on a 2D barcode project based on its registry with the support of a clearing house presently in construction. “Barcodes are universal,” says Steve Edwards, senior vice president and general manager at Neustar. “A picture is a picture, but when you add location to a 2D barcode you have something pretty interesting.” nick@mobilesquared.co.uk

consumed2

Camerjam says mobile advertising needs peanuts before it can go Nationwide According to research released this week from the IAB, brands will achieve better brand awareness, brand recognition and increased clickthrough rates if they carry out mobile campaigns alongside their online activity. For those of us in the mobile industry this comes as no surprise and isn’t exactly rocket science. But for those in digital (or indeed any other form) advertising and marketing, this represents a clear call to action and concrete proof that mobile can improve the effectiveness of what agencies are doing already. The study was based on a digital and mobile display campaign by financial provider Nationwide Building Society to advertise home insurance. The mobile campaign ran simultaneously over the mobile operator sites of 3, O2, Orange, T-Mobile and Vodafone, in addition to the mobile and web portals of MSN and Sky. The results make good reading if you’re involved in the mobile advertising and marketing space. Brand recognition increased by more than 40% when users were exposed to both the online

and mobile campaign, compared to just online. Brand awareness increased by 114% when users were exposed to both mobile and online ads, and 50% when just mobile. This is exactly the language marketers understand. This is the way to sell mobile into the agencies. Instead of frightening off advertising cheque holders with the multitude of different mobile formats, new planning methodologies and threats to their current revenue models, surely it is better to integrate mobile firmly into the existing marketing mix. This view was echoed by Nationwide’s digital marketing manager Alex Bennett, who said of the study: “In order for mobile to become a core part of any advertiser’s marketing mix it’s essential that it is able to prove its effectiveness alongside more traditional media.”

attributes of mobile and on the new rules of engagement on the mobile medium. While issues surrounding privacy, permission and preference (or context) are all extremely important when considering the medium, the mobile industry could be accused of focusing too much on mobile attributes to the point of being insular (this is common in many parts of the mobile data industry). The IAB figures send out two clear messages. Firstly, the fact that the Internet Advertising Bureau is pushing mobile so conclusively to its members represents the passage of mobile marketing into the mainstream. Secondly, the mobile industry needs to talk the same language as the marketers and advertisers in digital, print, TV and radio if it is to get anything more than peanuts when brand managers set their budgets.

Much of what has been written about mobile advertising and marketing in the past couple of years has focused on the unique

camerjam 9

Carroll’s Quest

Our resident handset expert Michael Carroll, steadfastly refuses to use the iPhone. But his resistance is weakening. So we at mobileSQUARED have set Michael the challenge of uncovering a handset that rivals the iPhone. Here, he puts the Nokia X6 through its paces. I have never dropped a phone as much as Nokia’s X6. Maybe it’s the slipperythin form factor, or perhaps I’m just losing my touch, but this phone is physically hard to pick up. Luckily, once you do, it proves harder to put down. Unless you’re standing on some carpet, wooden floor, or even your concrete driveway – all places I managed to throw my pre-production version. Although throwing the device about didn’t rank high on my list of testing priorities, it does prove the unit is a tough cookie that will take some abuse. Damage to the display is the main concern with any touchscreen phone, but the X6 escaped all butterfingered moments unscathed. Nokia bills the X6 as a smartphone, but its focus on music and entertainment make it feel more like a highly-specced featurephone. It’s less intimidating than business-focused devices, and offers a soft-key shortcut to music and imaging functions. Phone and menu functions are accessed via hard-keys at the bottom of the device. It sports a 5-megapixel Carl Zeiss digital camera module with dual-LED

flash, meaning it flattered to deceive in terms of my photographic abilities. (I was particularly impressed by the highly detailed snap of a valley I captured while a passenger in a fast-moving vehicle.) The device, which features a 3.2-inch touch screen and runs a 433.9MHz processor, is due to launch this quarter (1Q10). Compared to the iPhone, the touch UI is a little slow to react sometimes, but its likely commercial devices will be faster than the precommercial unit I trialed. I like the automatic orientation of the screen to fit landscape or portrait mode, but the way that feature worked was a bit random at times – reacting slowly to firm changes of direction on occasion, while at other times changing too fast when you barely moved the device at all. When it came to gaming, though, the screen hits the nail on the head. My family and I were all quite taken by a car racing game, which could be controlled by pressing on-screen direction buttons, or by using the tiltsensor to control movements.

Although the UI might not be on-par with Apple’s just yet, it did work well for basic phone functions, including entering numbers (something you tend to do more with a test unit that doesn’t have all your contacts in memory), or typing a text message. Anyone who has ever used Nokia’s hard alpha-numeric keypads will be instantly familiar with the way the predictive text operates on the virtual version. Fortunately it’s only the casing that proves slippery, and once you start using the device you find it makes a decent alternative to the iPhone, and indeed other handsets in Nokia’s own range, like the business-focused N900 we tried last month. The X6 is a genuinely good phone to use, and given I’ve never got used to the iPhone UI, I can’t say Nokia’s is any faster or slower to react. The unit is definitely a strong alternative to the iPhone, and if I was in the market for an entertainment-focused device, would have no qualms about buying one over Apple’s device. michael@mobilesquared.co.uk

company feature

Qualcomm claiming cross-platform app solution Qualcomm is putting the operators in the driving seat with its Plaza Retail applications store, in a bid to promote a multi-device strategy and overcome device and operating system fragmentation, which will benefit all players in the apps value chain.

The data required is simple information including the consumer’s name, address, and billing details. “If you can extract that data… you’re in a strong position,” Harris says. “[It’s about] providing publishers with the means to make the service smarter.”

The US-headquartered firm believes operators hold the key to success for applications stores, because their close relationship to the end-user means applications and services can be tailored to individual customer’s preferences. A more personalised and relevant service would ‑ in theory – result in more application downloads, thus creating a sustainable ecosystem where developers have a clear route to market, and carriers benefit from increased data traffic.

Offering smarter services doesn’t necessarily need to involve anything highly complex. Harris points out that simple content like animated wallpapers could be tailored depending on the time of day, or season. “It’s about making stuff that’s relevant to the consumer available at the right time.”

Julian Harris, a manager at Qualcomm’s media and content business, says greater personalisation would also solve one of the big questions surrounding apps stores – namely how do users find the content. Harris notes the existing methods involve users searching for, or discovering, content. “With search, the customer knows what they want. Discovery involves something they didn’t know they wanted.” Operators can help users ‘discover’ content by using existing customer profiles, and exploiting their status as a trusted brand, Harris says. “Operators can profile consumers, but extracting [user data] in a legal fashion… that’s what a publisher wants.”

It’s also about broadening Qualcomm’s geographical reach beyond its traditional markets. Because Plaza Retail is designed to be device- and platform-agnostic, it opens up opportunities for the San Diego firm in non-CDMA or -BREW territories. The original Plaza suite was unveiled in May 2008, offering an end-to-end applications solution using Widgets – web-based applications that can be run on any handset equipped with a mobile web browser, and that are written in a web-based runtime environment reckoned by many industry players to be easier to master than complex coding languages like Java or C++. Qualcomm unleashed Plaza Retail in May 2009, to give operators a bespoke means of deploying the increasingly popular applications store. Carriers gain access to a catalogue of approved applications that work on handsets running Java, BREW, Flash, and

Android platforms. Over time, the firm will also add compatibility for Windows Mobile, Palm, Symbian, and LiMo platforms. Making the store compatible with those additional operating systems will be a key element in achieving Qualcomm’s goal of a cross-platform product that helps reduce the levels of fragmentation inherent in the mobile content market, where developers must port applications to myriad of handsets and OSes if they want to achieve ubiquitous deployment. Simplifying the process of developing and deploying applications is one of the major reasons for the success of Apple’s App Store. The firm uses a single Application Processor Interface (API), and has released easy-to-use Software Development Kits (SDKs), which allow almost anyone to coin applications for its store, meaning the outlet is today populated with around 85,000 applications. Despite the success of Apple’s App Store, Harris believes it is more focussed on increasing sales of the iPhone than establishing a sustainable, industry-wide, ecosystem for mobile content. The firm’s store started out almost as a by-product of consumers’ desire for the iPhone, but has since become a unique selling point for the device in its own right. Using the credit card billing model first established for iTunes to handle payment for applications has made the store easy to use, Harris

company feature notes. “Apple is very accessible… very easy and simple [to use],” he says.

headlines, social networking, and photo sharing.

Like Apple, the other firms now jumping onto the apps store bandwagon are too focussed on promoting a single device or platform, Harris says. In contrast, Qualcomm is playing the long game, by striving to create a sustainable market for mobile content that benefits everyone in the value chain. Thus, Plaza Retail claims to offer a wider range of distribution channels than its rivals, while also allowing subscribers to switch handsets without losing all the applications they’ve already bought using a virtual digital locker to store content. “Making channels available is essential,” Harris says.

BREW applications, which launched in 2001, had generated over US$2 billion in revenues for developers by end March 2009, and were available on 1,000 device models – roughly 200 million addressable devices.

Of course, all the channels in the world are useless if consumers can’t actually find content in the virtual supermarket that is the applications store. The Plaza suite already offers access to thousands of BREW applications, which cover everything from weather reports, news

The second area concerns building effective business plans throughout the content ecosystem. Everyone in the value chain can focus on the most profitable applications, based on the cost of production and sales revenue.

Harris says that’s where the operator’s input will be a key advantage for Plaza Retail-based stores. Their subscriber data can be combined with details of which content is the most popular in a particular market, and the handsets that are most used to access it. “The industry needs to recognise where the value is in the value chain,” Harris says.

Qualcomm’s confidence will be put to the test when the first apps store based on Plaza retail is launched on TIM’s Brazilian network during 1Q2010. In an agreement announced by the companies last month [October], TIM pledged to deploy the store on all handsets in its range, meaning all of its 40 million Brazilian subscribers will have access to the store. Customers will have the choice to download the store direct from TIM’s WAP portal, or from its Web Store.

The knowledge of where the value lies can be used in two ways. First, as location-based services come on-stream, it can be used to offer more relevant content to users, for example maps of your location showing which retailers are offering promotions.

While Harris’ claim that Qualcomm will build an entire ecosystem for mobile content might seem like the usual company rhetoric, a quick glance at the firm’s history shows building something out of nothing is the very basis of its success today.

IDM HALF PAGE AD:Layout 1 11/11/2009 13:59 Page 1

michael@mobilesquared.co.uk

The IDM, Europe’s leading institute for digital marketing courses and qualifications...

affiliate email social media ppc eCRM web usability seo web analytics mobile online media

digital strategy

digital marketing law

online copywriting

£50 discount for mobileSQUARED subscribers!

Book any one-day IDM digital marketing training course and receive a £50 discount. Please call 020 8614

£50 discount mobileSQUARED subscribers! 0277 to book quoting for MOBSQ10. Bookings must be made by 18 March 2010 but course places can be

taken up until August 2010.View all digital courses at www.theidm.com/digicourses or try our digital quiz Book any one-day IDM digital marketing training a £50 discount. Please call 020 8614 0277 at www.theidm.com/digiquiz to see where you course and could best receive focus your training efforts. to book quoting MOBSQ10. Bookings must be made by 18 December 2009 but course places can be taken up Offer applies to new bookings and excludes qualifications. until 31 August 2010. View all digital courses at www.theidm.com/digicourses or try our digital quiz at www.theidm.com/digiquiz to see where you could best focus your training efforts! Offer applies to new bookings and excludes qualifications.

Country Overview: Germany

New Kids on the YOC mobileSQUARED has teamed up with Europe’s leading full service mobile solution provider YOC to deliver mobile usage, trends and insight into some of the leading mobile markets around the continent. Using aggregated data from selected ‘anonymous’ publishers from YOC’s European mobile ad network, mobileSQUARED will apply its customary levels of analysis to explore usage behaviour, coupled with network and handset data, to deliver insight to assist brands increase the effectiveness of their mobile marketing campaigns. The first market to be analysed is YOC’s home market of Germany. Although one of the largest and most competitive mobile landscapes across Europe, the German market is yet to truly embrace the mobile Internet in the same manner as the UK and Italy, for example. Based on the publishers’ data available, the total number of page impressions totalled 51.7 million during January, with an average number of page impressions per week hovering around 12.9 million. The data highlights the continued appeal of the operator portals within Germany, with over two-thirds of traffic during January. Beyond the operator traffic, 18% is attracted to news and media, and 8% search and information. While the data could be skewed by the type of publishers providing the data, nevertheless, the traffic represents a very immature mobile Internet market. In the majority of developed mobile markets, on-portal traffic is a former traffic powerhouse, with social networking and

Source:YOC

news and informative services dominating the mobile Internet landscape. Indeed, in developed mobile Internet markets, on-portal traffic is unlikely to account for more than 40% of total traffic. Given that advertisers are attracted to eyeballs, clearly the operators’ portals

continue to be primary real estate for advertisers on the mobile Internet in Germany. The question remains, for how long can the operators ward off the inevitable threat posed by the off-portal browsing activity. In many ways, it is already happening.

Country Overview: Germany

The emergence of Apple on a global scale, has not only drastically altered mobile market dynamics, it has revolutionised user behaviour. And as the data reveals, Germany is no different. Apple is by far the preferred device manufacturer for brands conducting mobile marketing campaigns, with 40% of brands favouring Apple ahead of Nokia (20%) and Sony Ericsson (9%). Apple’s position is strengthened further when brand preference is broken down by device, with the iPhone and iPod Touch the favoured device for two-thirds of brands, with Nokia again playing a supporting role.

Source:YOC

And Apple’s dominance doesn’t stop just there. Not surprisingly, given the appeal of the device, the Mobile Safari browser also dominates the browser landscape in Germany, with Webkit, OSS and Access Netfront each amassing around 10%, with the remaining six browsers listed not totalling more than 7% The dilemma facing brands using mobile marketing in Germany – and this is also applicable for all Apple iPhone/iPod Touch markets – is successfully identifying the balance between the investment in the Apple platform versus non-Apple platforms, and the reasoning for this is highlighted by the role the networks continue to play in Germany. It is not just the device that is playing an important role, but the network which supports and delivers the campaign. UMTS and HSDPA only feature in 38%

and 25% of campaigns respectively, compared to GPRS (92%) and WLAN/ EDGE (74%/71% respectively). When analysed in conjunction with the previous device graph, the mobile networks used to deliver campaigns reflects the devices upon which the marketing campaigns are targeted. For instance, the mobile elite (iPhone users in particular), supported by iPod Touch users, would feature over 3G and WLAN networks. Whereas the demand to reach mass market eyeballs relies on more fundamental technology such as 2.5G/GPRS/EDGE and the featurephone users. The fact GPRS/EDGE networks feature so prominently as the delivery technology for mobile marketing campaigns in Germany correlates directly with operator portals dominating mobile Internet traffic: Research by mobileSQUARED has revealed that a high percentage of featurephone users are most likely to access the operator portal guided by the device’s portal softkey. Despite the immaturity of the German mobile market, the attraction of the Apple platform is clearly dominating the thinking of mobile marketing activity. The drawback is that Apple devices remain niche across Germany. As more Android devices are released during 2010 in Germany, this will help increase the mobile elite audience. But there is no escaping the fact that to successfully deliver a mass-market campaign across Germany, brands need to overlook the glamour of Apple and concentrate on featurephones over GPRS.

Source:YOC

The more you have of a good thing, the more you want it. Your customers are so hungry for apps, if you don't satisfy their appetite you can be sure somebody else will. Find out h how Airwide can help you utilize and monetize your organizationâ&#x20AC;&#x2122;s most valuable assets to package and deliver the right apps to the right customers, at the right time. With the clear benefits of more revenue and lower churn.

Visit www.airwidesolutions.com or email info@airwidesolutions.com for more information.

walled garden

Tanner on why banks need mobile responses Banks and financial institutions are looking to transform customer interaction via new innovative services and a wider range of communication options. But they are trying to operate amid economic pressures that dictate such services must be delivered without major upfront investment or significant ongoing costs. The delivery method must also be simple and widely available to ensure banks can reach as many customers as possible.

transaction, the customer’s response is automatically recognised by the core software. If the customer responds ‘Yes’ to the question: ‘Is this transaction genuine? the system will process the transaction as usual. If the response is ‘No’, the database will suspend the account and move automatically into its anti-fraud process.

Consequently, growing numbers of banks now recognise that investing in SMS offers excellent value, whilst enhancing the quality of the service provided. Quick, simple and used by the vast majority of customers, SMS is a useful tool to update customers on their account balance, for example, or raise an alert for unusual transaction patterns.

With 80% of texts being received within 60 seconds, this full circle texting technology provides the fastest way to communicate efficiently with customers. Critically, these messages are inherently secure; texts are extremely hard to intercept and, in the unlikely event that a phone is stolen, actions such as money transfers can be additionally secured via the use of variable PIN codes. Fears of mobile phishing can also be allayed through the use of specific text number ranges by the bank and supported by additional personal information.

However, this method of communication is still one dimensional: traditional SMS technologies do not enable a customer’s reply to trigger a key action. If there is a problem that demands a response from the customer, such as confirming if a transaction is fraudulent, the bank will be burdened by the time and cost associated with manually handling that customer response, whether at the call centre or in branch. A two-way texting solution will transform the relevance and quality of the customer service offer, from ordering new cheque books to checking transaction patterns in a bid to reduce the impact of fraud. The next-generation technology can guarantee that multiple outbound messages are specifically matched with their appropriate response. This is key, as it enables banks to reliably integrate SMS into their workflow processes, transforming the potential range and nature of services available to customers. For example, a bank issues a text to a customer reporting a suspicious

Customer Value

For customers, the appeal of a two-way text solution is clear. Information from the bank is instantly retrieved irrespective of location and where a response can be made by SMS, the inconvenience of a lengthy phone call or branch visit is avoided. The two-way approach also enables customers to access a range of services offered by the banks, starting perhaps with simple options such as a text based chequebook ordering process. Further down the line customers may well be willing to pay for some of these more sophisticated services, such as potential fraud alerts or notification of nearing overdraft limits. For the customer travelling abroad, the fact that the bank raises a text-based alert of an overseas transaction provides a high level of confidence. The ability to respond via text confirming that the transaction is

genuine, in seconds, removes the risk of the account being suspended which is an inconvenient bi-product of today’s transaction tracking technology. If the transaction is fraudulent, the immediacy of the communication and the automation with core systems to immediately suspend the account boosts customer confidence whilst also minimising their exposure to financial distress. Indeed, the provision of real-time transaction information via text improves confidence in the quality of service and enables the customer to take control. It can also be applied to a range of financial services. From loan applications to insurance policy renewals, as well as the added value services increasingly being offered by card providers such as booking flights, financial institutions can empower customers to take control of their finances. Without a doubt, those financial services organisations that have already embraced texting to improve customer services are providing better, more immediate information. But the next generation of texting technology enables banks to fundamentally transform the quality and immediacy of these services. By closing the loop with two-way SMS communication, tightly integrated with core systems, financial institutions can improve customer service whilst also driving down administrated overheads and reducing the financial and personal impact of fraudulent transactions both on the institution and the customer. Peter Tanner is managing director of Boomerang SMS Solutions, www.boomerangsmssolutions.com

Asia

Europe

South Africa

Singapore May 5-6th

New York July 1st

London September 29-30th

Cape Town December 7th

Roadshow 2010 speaker opportunities: Asia What are the mobileSQUARED Roadshows? We position the Roadshows as the essential guide to driving revenues and awareness from the mobile channel in some of the key mobile markets around the world. The Roadshows goal is to help every company – whether you’re in the mobile industry, blue-chip corporation, education, brand, media ... create a successful mobile

strategy. And that’s why each Roadshow is structured around three core areas of: - Messaging and Marketing - Internet and Social Media - Content, Apps and Services.

Why speak at the mobileSQUARED Roadshows Speaking at the Roadshow will not only provide a fantastic platform in front of your mobile peers and some of the companies that are shaping the mobile industry, but also potential new clients. The mobileSQUARED Roadshow’s strategy is to actively reach out to the non-mobile sectors and attract delegates from all industries. And that’s exactly what we do, as our delegate breakdown testifies.

Roadshow delegate breakdown Agency Media / ad agency

We want speakers with a pedigree in delivering exceptional mobile campaigns and strategies, with something compelling and relevant to communicate to an audience made up of mobile and non-mobile delegates. Companies speaking at the UK Roadshow included: Vodafone, Flirtomatic, Ogivly, Movenpick/Nestle, Tigerspike, Microsoft, Qualcomm, Bango, Airwide Solutions, Smaato, Reuters, GraphicoDMG, MediaCom, Sponge, Netsize to name a few. As well demonstrating multiple opportunities to not only present, the Roadshow agenda allows speakers to take a lead role in the Mobile Strategy Workshops, Open Mobile Surgery, or even lead a National Roundtable. As a speaker you will also be featured in the Roadshow’s accompanying industry report. Read on to view the agenda and see how your company can support the Roadshows.

Mobile agency Vendor Brand Public sector Operator Content provider Service provider Press / analyst Researcher

Testimonial: “We were very happy with the level of presence delivered by our sponsorship of Taking Internet Mobile. All-in-all the seminar was well-attended by the right mix of people, and the accompanying research report well received by the delegates.” Anil Malhotra, Founder & SVP Marketing & Alliances, Bango

Other

Produced by: Visit our website for further information:

www.mobilesquared.co.uk

Agenda

DAY ONE Topic 10:00 Chairman's introduc3ons

Subject Welcome

Me44a6in6 & Mar:e;n6 10:05 Research 10:20 Keynote presenta3on 10:40 Case study Brand case study: This is  10:50 what we did 11:00 Case study Q&A

15:10 Case study 15:20 Case study Q&A 15:30 COFFEE BREAK How To … complete a  16:05 transac3on on mobile

10:20 Keynote presenta3on

Regional content, apps  and services overview The greatest App in the  world What content works on  mobile

TBC Open Mic Ques3on Time

11:00 Case study Q&A

Open Mic Ques3on Time

11:10 COFFEE BREAK 11:45 How To… create an app for?

Internet & Social Media

15:00 Case study

10:05 Research

10:40 Case study Brand case study: This is what  10:50 we did Cathay Paciﬁc

Delegates split into  groups, each with a 'new'  company. Groups will  work together to create a  Mobile Strategy Workshop:  mobile strategy for their  12:05 Phase I company 12:45 Workshop Feedback Panel Phase I Making mobile marke3ng  13:05 relevant and contextual 13:15 LUNCH

14:40 Keynote presenta3on

Subject Welcome

Content, Apps & Services Regional messaging and  marke3ng overview  Taking the mobile  channel seriously Using messaging to reach  the mass market

11:10 COFFEE BREAK How to create an opt‐in  11:45 database

14:25 Research

DAY TWO Topic 10:00 Chairman+s introduc3ons

Mobile Strategy Workshop:  12:00 Phase III 12:30 Mobile strategy workshop How to… distribute content to  13:00 the mass mobile market 13:15 LUNCH

The ﬁnal company  sessions will look at the  opportunity surrounding  the World Cup using  apps and content for  their company Phase III

9:;on:< =oun>t:b<es Regional Internet and  social media overview How to make the mobile  Internet and social media  work for your business

14:30 Country Roundtables

Mobile social media Extending your online  strategy onto mobile

Open Mic Ques3on Time

Delegates now  incorporate mobile  Mobile Strategy Workshop:  Internet and community  16:25 Phase II into their mobile strategy  17:05 Mobile strategy workshop Phase II Driving traﬃc to your  17:20 mobile website 17:35 Top 5 takeaways 18:00+ NETWORKING DRINKS

Your chance to discuss  na3onal issues with  country experts How to make the mobile  Internet and social  media work for your

Open Mic Ques3on Time 15:30 COFFEE BREAK 16:00 Open Mobile Surgery

Open Mobile Surgery 17:00 Roadshow Round‐up

Should I App or should I  WAP? Ask the experts Understanding the world  of \marke3sing\ Ask the  experts

17:10 End of Roadshow

Testimonials: “Overall, a thoroughly useful and enjoyable day.”

There are a number of speaking slots still available. Contact us now to discuss how your company will play a role in the Roadshow Asia event that is expanding the mobile ecosystem; or talk to us about our other 2010 Roadshows.

“The mobileSquared Roadshow was one of the best events I’ve been to this year”

Email nick@mobilesquared.co.uk or james@camerjam.com

Harald Neidhardt, CMO, Smaato

Terence Eden, Commercial Planning Manager, Vodafone Group

Produced by: Visit our website for further information:

www.mobilesquared.co.uk

Asia

Europe

South Africa

Singapore May 5-6th

New York June 29th

London September 29-30th

Cape Town December 7th

Roadshow 2010 What are the mobileSQUARED Roadshows? The Roadshows are your essential guide to driving revenues and awareness from mobile in some of the key mobile markets around the world. The Roadshows will help every company – whether you’re in the mobile industry, blue-chip corporation, education, brand, media ... create a successful mobile strategy. And that’s why each Roadshow is structured around three core areas of Messaging and Marketing, Internet and Social Media, and Content, Apps and Services.

Five ways the Roadshow can shape your mobile strategy • Delivering exclusive research, unique case studies and focused insight from market-leading mobile experts, marketers and brands. • Mobile Strategy Workshops are breakout sessions in small groups led by mobile mentors providing input on your mobile strategy. • An opportunity to network with a unique mix of new contacts, we help grow the market by attracting non-mobile sectors as well as key mobile folk.

How much does it cost?

• ‘How to’ sessions providing practical guidance on how to successfully implement mobile initiatives e.g. create the perfect mobile marketing campaign, build a sticky app.

A delegate pass costs £99/US$150/€120 for a one-day event and £199/US$300/€240 for a two-day event

• Every delegate will also receive a copy of “The Essential guide to Mobile” Report to take away with them. Our guarantee that you will leave mobile savvy.

We are also offering an ‘Annual Pass’ to companies interested in sending a representative to multiple Roadshows, at a cost of £299/US$500/€350 for entry to all four 2010 events.

Testimonial:

“As a brand looking to move into mobile, this proved a fantastic opportunity to understand how consumers use their mobiles and how Mövenpick can tap into this - plus, of course, our super premium ice cream went down very well at the coffee break!”

“We were very happy with the level of presence delivered by our sponsorship of Taking Internet Mobile. All-in-all the seminar was well-attended by the right mix of people, and the accompanying research report well received by the delegates.”

Mike Godwin, UK Managing Director, Mövenpick Ice Cream

Anil Malhotra, Founder & SVP Marketing & Alliances, Bango

Produced by: Visit our website for further information:

www.mobilesquared.co.uk

Who attends?

Roadshow delegate breakdown Agency

Our delegate breakdown is unique. We have mobile market executives from mobile operators, content providers, mobile agencies, service providers, vendors and handset manufacturers. BUT we also have delegates from wider industry sectors intent on learning how to harness mobile – brands, marketing and advertising agencies, publishers, education, health, media (see chart for breakdown). These are organisations wanting to evolve their online strategy on to mobile.

Media / ad agency Mobile agency Vendor Brand Public sector Operator Content provider Service provider Press / analyst

Companies also attend because they are interested in finding out about a particular market, and want to meet the people who are shaping it.

Researcher Other

How are the Roadshows researched? mobileSQUARED interviews on average 100+ of the most active and dynamic mobile companies, brands, and agencies per region, to deliver the definitive overview of where that market is today and accurately predict where it will be in FIVE years time. Our consumer research partners survey their panels of thousands of mobile consumers per market to discover who mobile consumers are, their current usage profile, and the services they would like to use, in each particular market.

Where do I sign up? Registration for Roadshow:Asia will be open from Feb 22, 2010, at www.mobilesquared.co.uk. In the meantime, if you have a question or want more details, either visit the website, email us at info@mobilesquared.co.uk or call Tel. +44 (0)1483 856 514 / Mob. +44 (0) 7976 057 052.

How do I sponsor? Contact our Sponsorship Manager, Jo Lane, on +44 (0) 7870 560 143, or email jo@mobilesquared.co.uk for details of our unique sponsorship packages to suit all budgets.

Testimonials: “It was a highly insightful day. For someone just entering the mobile arena there were a number of major issues raised which will have to be considered as I go through the process of integrating mobile into the University’s marketing activity.” Donald McLeod, Head of Marketing Services, University of Hertfordshire / Chairman of HEERA “Overall, a thoroughly useful and enjoyable day.” Terence Eden, Commercial Planning Manager, Vodafone Group “One of the best events I’ve been to this year” Harald Neidhardt, CMO, Smaato

Do you have a proposition that will appeal to the Roadshow’s audience? Let us know if your company has something uniquely compelling and relevant to communicate, and you are interested in a speaking slot. To bounce your idea off the Roadshow team, email Nick Lane, nick@mobilesquared.co.uk and/or James Cameron, james@camerjam.com Or give us a call. Nick’s number is +44 (0) 7976 057 052 and James can be reached on +44 (0) 7940 749 874

About mobileSQUARED mobileSQUARED is a mobile research agency specialising in mobile content and services in the top 25 mobile markets around the world. We are a team of mobile specialists that have been following the mobile industry since the mid 1990s, in journalistic, analytical and consultative roles. We deliver four main services; reports (national overviews and strategic verticals), our free newsletter, consultancy, and of course the Roadshow. All of these services are based on extensive research using our global network of contacts. Our clients have included Yahoo!, Buongiorno, Qualcomm, Frudoo, Airwide Solutions, Bango, MCN, MEF, mi liberty ...

Produced by: Visit our website for further information: