mobilesquared: issue 5

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  • 8/14/2019 mobileSQUARED: Issue 5

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    Issue 5

    Thinking about mobile

    LOST:Locationbusiness

    model

    In this issue...Page 3 Mobile Payments: Serving the under banked; Page 6 Italys mobile Internetboom; Page 7 Company eature: Putting the Smaato thing into mobile advertising; Page 11Lost: LBS; Page 13From the Web; Page 15 The all and rise omobile video;Page 16, Mobiwan;Page17 PRS in charity and politics

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    Were back

    Its 120 days since the last issue o the mobileSQUARED newsletter. In that time ApplesApp Store has shited somewhere in the region o 700 million apps to a user base oaround 50 million. In the same timerame, independent app store GetJar has shitedaround 180 million apps. I Handango has achieved similar download levels to GetJar,then in our months, three app stores have contributed to over 1 billion downloads.The mobile industry maybe nursing its wounds rom the global economic downturn,but the emergence o apps has undoubtedly injected new and lets ace it a muchneeded resh impetus into the mobile content and services marketplace.

    What does all this mean? Thats where mobileSQUARED ts in. Weve been away over

    the summer working on internal (and external) projects to make sure that when wereturned, we were better equipped or the intense research and analytical demandsbeing placed on us. And we are.

    Not only have we been researching the mobile market, but weve been researchingyour views too. Based on our subscriber eedback weve made a number o changesto improve how you can use and access mobileSQUARED analysis.

    For instance, weve dropped news. There are numerous sites and publications alreadydeliver a sterling news service. Why compete? What we excel at is writing up theresearch and analysis, so thats what well now concentrate on.

    The newsletter is now shorter, with more support rom www.mobilesquared.co.uk

    providing more requent short, sharp bursts o analysis. Our aim is to provide dailyanalysis on relevant announcements as well as on our own research and we will beramping this service up over the coming weeks and months. We will also extend thisto a weekly analytical email, delivering the best bits rom our daily analysis direct toyour inbox. I you dont want to receive the weekly analysis, let us know. But it will beinsightul and make you think and we hope a welcomed addition to your inbox.

    Over the last six months a lot o our research has been ocused on or around themobile Internet including the rise o the app stores and the ever-present mobileadvertising. Strategic reports on these subjects will be released shortly.

    And as we start to demonstrate mobileSQUAREDs research and orecasting capability,we have released our rst strategic report covering the Indian mobile content and

    advertising marketplace. Our unique take on app stores and mobile advertising willsoon be transerred into strategic reports, but our ocus is our Roadshow. First stop isthe UK i this is a marketplace that interests you, then I guarantee that our researchis a must. Read on or more details.

    Nick Lane

    Editor & chie analyst

    editorialNick Lane, Chie researcher/writer

    [email protected]

    Tel: (44) 1483 243 382

    Mob: (44) 7976 057 052

    Michael Carroll, [email protected]

    Tel: (44) 1483 549 840

    Contributor

    Ed Barker

    How to nd us:

    1 Farnham Road,

    Guildord

    Surrey, GU2 4RG

    UK

    ISSN no. 1759-6483

    Published in the UK (hopeully) 10 times

    per year in pd ormat.

    No part o this publication may be

    copied, photocopied or duplicated

    without prior written permission rom

    the publisher, D2 Mobile Ltd

    mobileSQUARED is a trading name o

    D2 Mobile Ltd.

    ThemobileSQUARED team oers unique

    orecasting, analysis, research andinsight on the mobile market, providing

    highly ocused reports and bespoke

    intelligence. We tailor our approach to

    the requirements o each project and

    use our network o global network

    o contacts.

    Our extensive market knowledge stems

    rom years covering the mobile industry

    meaning that were in a position

    to respond immediately to market

    developments.

    All rights reserved. Opinions expressed by individual

    contributors may not personally reect the views o D2

    Mobile Ltd. Whilst reasonable eorts have been made to

    ensure that the inormation and content o this publication

    was correct as at the date o rst publication, neither D2

    Mobile Ltd nor any person engaged or employed by D2

    Mobile Ltd accepts any liability or any errors, omissions

    or other inaccuracies. Readers should independently veriy

    any acts and gures as no liability can be accepted in

    this regard. Readers assume ull responsibility and risk

    accordingly or their use o such inormation and content.

    2008-9 D2 Mobile Ltd.

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    Serving the under banked

    eature: mobile payments

    Emerging markets are ahead o the curve indeploying mobile payments, eclipsing some othe leading western mobile markets in termso usage and adoption.

    Growth is being uelled by demand ormobile money transer services in developingcountries, where ew people have bankaccounts, while in developed countries the

    industry is still bogged down trying to workout how to enable users to pay or goods andservices with their handset instead o theircredit card.

    In emerging markets, m-banking meansm-payments, says Diarmuid Mallon, seniorproduct marketing manager at billingsystems specialist Sybase 365. He says users indeveloping countries are already using theirhandset to pay utility bills and transer money,adding that such services arent relevant indeveloped markets where most subscribers

    have bank accounts.

    Simon Cavill, director o strategy at mobilepayment service provider Mi-Pay, agrees.Where [m-payments are] relevant is to usethe phone as a payment terminal in thedeveloping world, he told mobileSQUARED,pointing to services like M-Pacer in Kenya,which he says is already used by 15-20% o thepopulation.

    He cited a recent trip to Nairobi where cashwas shunned in avour o credit pre-loaded

    onto his SIM. Payments were initiated bydialling a short-code, inputting the amount

    required and a password, and then simplysending the amount to the creditors SIM viaSMS. Payments were typically conrmed inaround 12 seconds, he said.

    While Apple has utilised the credit card billingsystem established or iTunes to make its AppStore a success, most UK carriers are still billingcustomers or applications and services using

    Premium SMS (PSMS), Mallon says, notingthat PayForIt a joint payment initiativebetween UK operators is premium SMS innew clothes. [Operators] get the same revenueshare, as they do with PSMS.

    The opportunities presented by emergingmarkets are perhaps best highlighted by theattention Nokia is paying to them. The rmunveiled Nokia Money in August to tap intowhat it sees as a growing market.

    Gerhard Romen, director o mobile nancial

    services at Nokia, explains: Emerging marketsoer interesting paradigms. Theres morephones than bank accounts. The mobilephone is usually a [consumers] rst contactwith the Internet.

    The service is being targeted at customers therm calls Under Banked those who have abank account to pay-in cheques and withdrawthe unds in cash -; and the non-banked users who dont have a bank account at all.

    Nokia Money runs on a mobile platorm

    developed by US-based web payment rmObopay, which can handle transactions using

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    3G or WLAN technologies. SMS is used in areas where thosetechnologies arent available, Romen said.

    Basing the service on the Obopay platorm means it can alsobe adapted or developed markets, and Romen says that thosemarkets will be looked at in due course. Obopays platorm isused by Citibank, and Mastercard has just started using it in

    the US, he says, noting that AT&T and Verizon Wireless are alsocustomers. Its an established platorm, but also an innovativeone, as the company is only ve years old.

    Romen wouldnt commit to any timing or the rollout o NokiaMoney in developed markets, stating only that the biggestopportunity is emerging countries, but we wont excludedeveloped markets.

    Overcoming another orm o payment

    Global carrier Vodaone is also ocussed on money transerservices, says spokeswoman Caroline Dewing. Were

    more interested in money transer, she told mobile

    SQUARED,

    noting that using handsets to pay or goods and services indeveloped markets will be a tough sell, because they alreadyhave so many ways to pay or things.

    The rm is heavily involved with the M-Pacer project, via itsSaaricom subsidiary in Kenya. Dewing said Vodaone has alsodeployed M-Pacer in Tanzania and Uganda, where it is used ormoney transer and loading credit onto the phone.

    While m-payments means nancial services in emergingmarkets, the ocus in developed countries has been on payingor goods and services.

    Near Field Communication (NFC) technology has beentouted as one o the best ways to enable handsets to beused or payments, with operator trials proving popular andcommuters in London responding well to its deployment inOyster travel cards, which allow them to touch and go on allpublic transport run by Transport or London.

    The GSM Association has backed NFC as the technology ochoice or mobile payments, mandating that it be installedin all new mobile phones made rom 2009 onwards. TheAssociation predicted a rapid rise in the number o compatibledevices rom 2010, and analysts rushed out bullish orecasts

    regarding the number o handsets and potential revenuesrom NFC transactions.

    As we enter the last quarter o 2009, it seems those orecastshave been, at best, optimistic.

    Few handset vendors have produced NFC devices Nokiahas only three models in its range, and Sony Ericsson is yet toenter the space and it remains a tough sell or retailers, whohave only just invested in chip and pin-enabled ElectronicPoint o Sale (EPOS) terminals, and so are reluctant to issueanother round o upgrades a couple o years into a typicalve-to-seven year liecycle.

    Jonathan Collins, principal analyst at ABI Research, explainsthat many orecasts are based on outdated inormation, and

    concedes the 2009 gure might not reach the 1.79 milliondevices ABI rst expected (see graph). Updated gures are duerom the rm during 4Q09 that will oer a clearer picture, hesaid.

    Overallits air to say that NFC has lagged signicantlybehind early expectations rom analysts and rom withinthe industry, Collins says. The complexity o deploying theinrastructure to support NFC and the partnerships that buildout requires, along with the business partnerships required tosupport multiple NFC applications on a handset, have beenkey actors in the slower-than-expected availability o NFChandsets.

    While it might take longer than originally expected or NFChandsets to roll in large numbers, Collins says that once theydo, the market will develop rapidly. When deployments beginwe will see signicant numbers o handsets shipping in a shortspan o time.

    Juniper Research expects interim services that work on non-NFC handsets to bridge the gap in the meantime, includinguse o m-coupons and embedding m-payment capability onremovable memory cards.

    Mobile banking to hit billions

    As a result, the rm still expects a buoyant m-paymentsmarket to emerge over the next three years, and recentlypredicted revenues rom NFC transactions would grow rom$8 billion in 2009 to $30 billion in 2012. It predicts the numbero users accessing mobile banking services will hit 1 billion in2013, up rom 67 million in 2008.

    For rms like Visa, which is backing O2s Wallet service,the revisions are not unexpected. Mary Carol Harris, VisasEuropean head o mobile, notes that it usually takes time

    or new technologies to be integrated into handsets.Traditionally this stu doesnt [happen overnight], she says.

    eature

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    Harris says the aster mobile data ratesrom 3G/HSPA networks have improvedthe customer experience o mobilepayments, and that the rollout ocontactless payment options on creditcards will help with consumer awarenessand acceptance. [Theres] a lot oactivity around contactless on cards, shesays. The inrastructure is being rolledout, reerring to work Visa is doing in theUK, Turkey, France, Italy, and Portugal.[That] same inrastructure can be used[or phones].

    Liisa Kanniainen, executive directoro the Mobey Forum agrees, tellingmobileSQUAREDthat consumers haveresponded well to trials o NFC paymentson handsets. At the moment, theres

    around 100 pilots going on around theworld. The majority o eedback showsstrong consumer interest.

    NFC booster

    The Mobey Forum recently signed anagreement with the NFC Forum thatwill see the groups ocus on boostinguse o NFC as a point-o-sale option orhandsets. Its similar to Oyster cards,but with the [technology] residingin the mobile phone, Kanniainen

    explains, adding that the Mobey Forumis ollowing what the analysts say,

    regarding orecasts on the number oNFC devices and overall m-paymentrevenues.

    NFC will most likely be used or localisedpayments, Kanniainen said, which is oneo our mobile nancial transaction types

    the Forum anticipates will develop. Withthe other three being remote payments,mobile banking, and trust services.

    Remote payments which are most likelyto be used to handle payments ormobile applications will be covered byexisting SMS and mobile data billingsystems, while banking and trustservices will require use o a PKI-basedsystem o passwords and codes.

    Operators need convincing

    Technology issues aside, a lot owork still has to be done to convinceoperators o the benets o enablingmobile payments. Andrew Bud,executive chairman at billing technologyrm mBlox, points out the basicpsychology o a mobile carrier is directcontact with the customer. [Theyre]undamentally a retail-ocussedbusiness, he explains, adding thatcarriers struggle to accept a loss ocontrol, o the mobile end-user.

    Apple got round the problem by oering

    carriers exclusive rights to sell theiPhone, and that might make it easieror mBlox to sell its Sender Pays serviceto carriers.

    Bud says the service takes the businessmodel o SMS and applies it to

    mobile content. Rather than pay datacharges to receive new applications,users would pay only or the servicesthemselves. Operators would then billdevelopers or the data trafc.

    The benet is that operators can gleanmore value rom their expensive datanetworks. Operators have a monstrousproblem coming Just like consumerISPs, they [operators] are cut out othe value chain, Bud says. Sender Paysgive operators that value. They can billincreasingly rich content providers.

    Bud says changing the businessmodel would make m-paymentsmore attractive to carriers, noting thattransactions ranging rom paying orlm tickets, mobile advertising, ande-ticketing are already technicallypossible, but are under-utilised byoperators who struggle to see theadded value at present.

    [email protected]

    In the next issue...

    eature

    Mobile advertising one year on: where has all the money gone?

    Company Feature on Airwide Solutions

    Consumer research on the mobile Internet

    Best Bits

    Data2

    The worlds most expensive data plan: how the automotiveindustry is driving into the mobile space

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    data2

    Italys mobile Internet boomThe Italian mobile market is one oEuropes most vibrant, primarily becauseover hal the population possesses morethan one SIM card. Italy has a little under59 million mobile subscribers, yet a mo-bile penetration o 153% accounting oraround 90 million subscriptions.

    A recent survey earlier this year by anundisclosed party o the Italian mobilemarket revealed that 13% o subscribersused the mobile Internet in 2009, ap-proximately 7.6 million.

    That places Italy behind the UK, themost advanced mobile Internet marketin Europe, and provides some indicationthat the survey results are an accuratereection o the marketplace.

    The survey results are urther support-ed by research released by eMarketerin October 2008 claiming Italy had 25.3million Internet users, with a little over10 million households with broadband.This suggests that Internet usage trailsthe most advanced markets, like theUS and UK, and is a urther reection omobile Internet penetration in Italy.

    But this looks set to change. Researchby mobileSQUARED reveals that Italy nowhas one o the astest growing mobileInternet user bases across Europe and isexpected to maintain this growth overthe next ve years.

    mobileSQUARED projects that the number omobile Internet subscribers in Italy willincrease to 30.1 million by 2014 almost50% o total mobile subscribers.

    O those existing Italian mobile Inter-net users, the survey reported some 6million connect approximately 10 times

    per month or an average session o 11minutes, or 110 minutes per month. Thatmeans that the majority o users are

    considered heavy consumers. Although50% o users connect via mobile Internetto access emails, one-third access newssites, and 14% access social networks,around 90% o users visited their opera-tors portal.

    While the Italian mobile Internet is notas open as the UK, or instance, the 10%o users avoiding the operator portal aremost likely to come rom smartphoneusers. That would equate to 760,000smartphone users enjoying the openInternet.

    However, a Nielsen report out in Sep-tember states that Italy has the highestsmartphone penetration across Europewith 28% compared to 23% in Spain,12% in the UK and Germany, and 11% inFrance.

    What is not clear is whether the 28%reers to subscribers or subscriptions.Assuming it applies to subscribers, then16.5 million users own a smartphonein Italy. And that 10% o open Internet

    users, stems rom 4.6% o smartphoneusers.

    Smartphone users are unquestionablythe heaviest mobile data users and itis these users that are believed to becontributing to the phenomenal global

    increase in mobile Internet usage.

    Yet the data rom Italy implies that thistrend is yet to really grip the Italiansmartphone users. Even i all o Italysmobile Internet users are smartphoneusers that would still leave 8.9 millionsmartphone users yet to connect to themobile Internet.

    It is the smartphone users that will drivemobile Internet usage and provides atransparent explanation as to why mo-

    bileSQUAREDs orecasts or the country areso buoyant.

    [email protected]

    MOBILE INTERNET USERS

    source: mobileSQUARED

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    company eature

    Putting the Smaato thinginto mobile advertisingMobile advertising is coming o age, asa rat o new application stores promptscarriers and developers to seek new waysto encourage users to download contentand services onto their phone.

    The concept has been around or severalyears almost as long as adverts on webpages, but it has proven to be a toughsell because regular web adverts simplydont translate well to the small screen o

    a mobile phone. Users consider the ads tobe intrusive, and the bandwidth requiredto display moving advertisements was toogreat or operators to see the benets.

    App stores have presented a newopportunity or mobile advertising, whichis good news or rms like Smaato thatboast in-app advertising capabilitiesamong its box o tricks.

    The privately held rm was oundedin 2005 with backing rom venture

    capital rm aeris CAPITAL, and considersitsel to be in a good position to helpapplications developers and publishersbecause it started out as a mobile appdeveloper itsel.

    First, we had an application to showadverts beore and ater calls that wasdeveloped or carriers, Harald Neidhardt,chie marketing ofcer and co-oundero Smaato, told mobileSQUARED, addingthat it began to evolve into an advertaggregator in late 2006/early 2007.

    Swiss carrier Swisscom trialed Smaatosin-call advertising application in 2007,

    and enjoyed a response-rate o 15%-23% or the post-call ads, a hugeresponse considering the click-throughrate o traditional web adverts is typicallyabout 0.01%.

    The challenge Smaato aced is that itstrials with Orange, Swisscom and Telenorspayground came beore the marketwas ready or mobile advertising. Wewere a little too early in some instances,

    but now have a built a platorm, thataddresses the open mobile Internet aswell as applications and now have areputation, Neidhardt says.

    That platorm is SOMA Smaato OpenMobile Advertising. SOMA is an advertoptimization platorm that handles mobileweb and widget adverts, as well as in-application ads. The server-based platormuses XML- and HTML-compatible openAPIs, and works with Android, BlackBerry,iPhone, Java ME, Palm, S60, and Windows

    Mobile operating systems.

    SOMA is compatible with mobile web andwidgets, and can handle live ads in mobileapps and games, on browsers, in-calls, onSMSes, and e-mail. It is connected to morethan 30 ad networks globally, sendingadverts to 215 countries.

    Were ocused on helping individualmobile publishers and applicationdevelopers, that want to have a higherreturn on their mobile audience by

    monetizing their complete contentinventory, Neidhardt says (see g.).

    That approach means Smaato canoer multiple adverts to independentdevelopers and publishers, with onetechnical integration without the needto close contracts with several traditionaladvertising networks. By working on arevenue-share basis optimized or thepublishers end, Smaato should oer theapps rms better value than traditionaladvertising networks.

    Focusing on the brands o the value chainmeans ad networks arent as committedto the applications rms as they needto be. Indeed, Smaato maintains suchnetworks work harder or the advertiserbuy-side than the developer (sell-side), resulting in lower CPMs (cost perthousand) or applications rms.

    Some developers have also started towork with multiple ad networks, linking

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    them together like a daisy chain. Theresult, Smaato says, may be poor userexperience o mobile advertising, causedby network latency and the difculty smalldevelopers in particular have in assessingwhich ad networks are best or themultiple local markets they may serve.

    Smaato says SOMA can oer a betterll rate the percentage o ads availableversus the number o ads requested thansingle ad networks, because the platormoptimizes the inventory automatically oradverts available depending on geographyand pricing by sourcing multiple adnetworks per requested advert.

    It all sounds great, but as is oten the casein mobile, the term build it and they shallcome doesnt always apply.

    To boost interest, Smaato is running itssecond annual Mobile Advertising Award,which aims to establish which ad-enabledmobile content is best. The winners willbenet rom individual meetings withleading venture capital rm partners, andan all-expenses paid trip to next yearsMobile World Congress, including a boothat the event.

    Were trying to help developers andpublishers gain recognition, Neidhardtexplains.

    The venture capitalists on-board or 2009are Tim Draper o Draper Fisher Jurvetson,Innovacom Venture Capitals FrdricVeyssire, Niall Davis rom aeris CAPITAL,Mark Kvamme o Sequoia Capital,Accels Rich Wong, Jrg Sievert rom SAPVentures and Tim Chang rom NorwestVentures.

    The contest attracted 100 entries in 2008,and Smaato hopes it will attract evenmore in 2009 ater splitting it into threecategories, comprising the best iPhoneapp, mobile website, and apps or gamesrunning on any other platorm.

    Neidhardt says it makes sense to oer aniPhone-specic award, because Apple hasset the standard or mobile applications.Such is the importance o the iPhone toSmaato that is has developed a versiono SOMA specically or the device.Neidhardt hinted the rm might do the

    same or Googles Android, now thatthe platorm is gaining ground, with

    big-name vendors including Sony Ericsson,Samsung, and LG Electronics.

    However, the rm could ace some hurdleswhen it comes to Android, becauseGoogle is one o its main rivals in theadvert aggregation business. Neidhardt

    says another major competitor is Admob,though he says Smaato is in co-opetition, with that rm, because theyare each working together to grow themarket or mobile advertising. [Its] thesame with Buzzcity, he adds.

    Such co-opetition means the market ormobile advertising is ready to take o,Neidhardt says, predicting an explosionin the next two years. With ease-o-use, clear revenue cuts, and guidance [toadvertisers], the whole ecosystem breaks

    loose.

    That guidance or advertisers will be animportant step, Neidhardt says, becausethey must understand the potentialor mobile adverts as improvements tohandsets see consumers engage evenmore with their devices.

    [In] our view, adverts and brandinghave to push the envelope harder orengaging rich media ormats, he says,noting that PC users are already engaging

    with short lm adverts. Smaatos job is towork with industry associations like theMobile Marketing Association to convincebig brands that mobile advertising issomething they should do.

    Unusually or an industry ocused on theyouth sector, Neidhardt expects mobileadvertising in its existing ormat to be aneasier sell or users in the 25-34 year-oldage bracket than it is or the 16-24 yearolds. Young people are very engaged

    with their phone and in mobile socialcommunities but a lot depends on theircontract, he says, pointing out thatyounger users are perhaps still mostlyengaged with text messaging.

    Older users have grown up with theInternet, and so are possibly moreamenable to the idea o mobileadvertising. And thats beore you considerthat older users are more likely to have amonthly mobile data plan, which makes iteasier to get the ads to their devices in the

    rst place.

    [email protected]

    SmaatoFast Facts

    Smaato Inc. is based in Redwood Shores,

    Caliornia. The company is privately held

    and was ounded in 2005 by an experienced

    International management team. The European

    R&D headquarters are in Hamburg, Germany.

    MANAGEMENT TEAM

    Ragnar Kruse, CEO & Founder

    Harald Neidhardt, CMO & Co-Founder

    Marc Junker, CIO & CTO

    Joerg Anhalt, SVP Mobile Publisher

    Development & Monetization

    Petra Vorsteher, EVP, Strategic Alliances &

    Co-Founder

    Oliver Reiss, VP Finance

    Marc Theermann, VP Business Development

    SELECTED RECENT NEWS

    October 07, 2009 DialPlus, the winner o

    Smaatos Mobile Advertising Award in 2008,

    has released their rst commercial DialPlus

    application, which is now available via T-Mobile

    USAs web2go service on a variety o Windows

    Mobile and Blackberry Smartphones.

    June 18, 2009 - With some key hires the

    leading mobile ad optimizer Smaato is growing

    stronger to support their partners globally.

    This spring Smaato could welcome its 30th

    team member. Marc Theermann is new Vice

    President Business Development at Smaato.

    Smaato also hired Oliver Reiss as new Vice

    President Finance.

    February 10, 2009 - MocoSpace and Smaato,

    announced a new strategic partnership

    or mobile advertising. MocoSpace (www.

    MocoSpace.com) has more than 5 million

    registered users and 2 billion monthly page

    views. The US-ocused mobile social site was

    recently ranked No. 1 in mobile entertainment

    by Hitwise (www.hitwise.com), an independentmarket research rm.

    company eature

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    Join the research revolution at

    the mobileSQUARED

    Roadshow

    Research

    mobileSQUARED is hosting Taking Internet Mobile, a hal-day masterclass seminar to deliver expert insight on theUK mobile market and answer key questions or anybrand wanting to make mobile a successul part o theircommunications strategy.

    Taking Internet Mobile is based on mobileSQUAREDsprimary research and will deliver the results o the mostcomprehensive piece o research yet available on the UK

    mobile market. We have gathered insight and data rom over75 companies which will provide granular insight into the UKmarketplace or the next 5 years in terms o both marketsize and consumer behaviour.

    mobileSQUARED is in the process o conducting extensive mobilemarket research. So ar our research has included:

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    NetBiscuits, Opera, Openwave, Novarra, GetJar,Volantis, Nokia, Harris Interactive, Femto Forum,Qualcomm, Smaato, Velti, Disney, Movenpick,Orange, Airvana, Mobile Marketing Association,Wapple, Sony, GraphicoDMG, Cambridge BroadbandNetworks, Ericsson, ADC,

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    Seminar content: Taking Internet Mobile will answer thesekey questions;

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    Seminar costs 350; including hal-day event delegate pass +

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    Taking Internet Mobile: UK, the strategic report will beavailable to purchase or 595 rom November 6th.

    Details o the mobileSQUARED Roadshow 2010 will beunveiled on November 5th.

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  • 8/14/2019 mobileSQUARED: Issue 5

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    Hear how major brands can get ROI from

    18 million UK mobile Internet users

    1pm 6pm,November 5th 2009Institue of Physics, 76 Portland Place, London

    ResearchMobile Internet projections, revenuesand forecastsNick Lane, Chief Analyst, mobileSQUARED

    Consumer mobile Internet insightTom Meyritz, Director, Lightspeed Research

    Mobile social networking insightTom Smith, Managing Director, Trendsmedia

    To register go to:

    www.mobilesquaredroadshow.com

    Research, Reportand Briefing just

    350+VAT

    SpeakersGraeme Ferguson,SVP Digital,Sony Music

    Mike Godwin,UK Managing Director,Mvenpick

    Alexandra Mecklenburg,Global Brand Director,Ogilvy Worldwide

    Hugh Griffiths,Director of Mobile,Microsoft

    Mark Curtis, CEO,Flirtomatic

    Sarah Evans, Head ofCommercial Partnerships,O2

    Ben Scott-Robinson,Creative Director,WeLoveMobile

    Gerry Griffin, CEO & Founder,Skill-Pill M-Learning

    Nick Lane, Chief Analyst,Managing Director,mobileSQUARED

    Graham Darracott,Managing Director,Digital Architects

    Media Partners:

    Sponsors:Platinum Sponsor:

    Gold Sponsor:

    Bronze Sponsors:

    Brand Sponsor:

    Produced by:

  • 8/14/2019 mobileSQUARED: Issue 5

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    consumed2

    The inherent value in providing a loca-tion or navigational service to a con-sumer on his mobile device when on themove and away rom a PC is one o theclearest user cases o all services on mo-bile. Frustratingly or the mobile industry,is that the majority o consumers do notwant to pay or the service. Navigatingaround the issue o price is undoubtedlythe biggest hurdle or the LBS industry,

    Clearly, their expectations have alreadybeen set by SatNav devices which requirea large one-o payment only. For up-to-date, real-time trafc inormation,consumers have the option to upgradeand pay or a subscription service, gen-erally starting rom 2.50 per month.While there is no available data on thesuccess o these navigation subscrip-tion services, the latest research on themobile industry maintains the notionthat the vast majority o consumers want

    location-based inormation or ree. (Andjust to clariy, when reerring to loca-tion-based service throughout the article,or simplicity this includes navigationalservices also.)

    As always, mobileSQUARED has teamed upwith Lightspeed Research to survey a na-tionally representative sample o the UKpublic on their views o mobile location-based services (LBS).

    Almost 53% o the UK population are

    yet to use location-based services. Othose that do use LBS, the more tradi-tional SatNav devices dominate with

    31% o respondents using the likes oTomTom and Garmin. Just under 7%o respondents use only their mobilephones or LBS, while 9.5% use acombination o SatNav and mobile. Theover 55s are the highest users o SatNav,while it is the 18-34 year olds that aremost likely to use either their mobiledevice, or both their mobile and SatNav.

    The research certainly indicates thatthere is an untapped demand or LBS onthe mobile. For instance, approximately30% o respondents knew that theirmobile device was location-enabled,compared to 40% that said that theirdevice was not location-enabled. Theremaining 30% did not know. Thirtypercent o users represent a high level oawareness o what is a reasonably ad-vanced mobile data service. Pure specu-lation, but the rise o Google Maps andthe simplistic advertising o the iPhone

    has most likely aroused consumers inter-est in LBS, which can only be a positivedevelopment.

    It was not until consumers were askedwhich o the suggested services theyhad used on their device, that the databecame more insightul. For instance,75.8% had not used a location-basedservice on their mobile phone. O the24.2% o respondents that had usedlocation-based services on their device,the majority had used more than one

    service. Not surprisingly, navigational andmapping services were the most popular,

    closely ollowed by location-based socialnetworking and dating, and service nd-ers, such as restaurants, bars and ATMs.The least popular service was nd-a-riend or child nder.

    A breakdown o these gures revealsthat males are more likely to use thenavigational and mapping services com-pared to emales, though emales aremore likely to use the social networkingand nder unctionalities o the devicethan males.

    Clearly there is a demand or loca-tion-based services and it looks set togrow on mobile, but the real stumblingblock is establishing a business modelto support the service. Only 11.3% ousers are willing to pay or the service,o which 3.7% are prepared to pay amonthly subscription, and 7.6% wouldaccept paying or specic inormation on

    a usage basis. A urther 20.10% o us-ers would welcome ree location-basedservices with advertising which is 100%relevant to their real-time location andmobile search. The remaining 68.6%want location-based services ree andwithout any catches, like advertising. Fe-males were more opposed to paying orlocation-based services and the concepto associated advertising than males.

    The perceived threat o advertising onmobile phones also heavily inuenced

    the results o whether consumers wouldbe willing to provide their locationto various recipients. Almost 60% o

    Lost: Location-based

    services business model

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    respondents would share their locationwith amily members though 40%would not. Similarly, 42.4% o respond-ents would be willing to let their riendsknow their existing location, comparedto 57.6% that would not. Only 5% ousers would be comortable sharing their

    existing location with third-party compa-nies, leaving 95% against the concept.

    It is this last revelation that raises seriousdoubts or mobile advertising. One othe real plus points o mobile is its abilityto deliver relevant, contextual and real-time adverts, and that requires utilisingthe users location. But i 95% o usersdo not want third-parties aware o theirlocation, this could seriously jeopardiseone o the most compelling motives orbrands and business such as restaurantsto use the mobile medium.

    The iPhone has addressed this issuehead-on by asking the users permissionto use their location when they activatea particular location-based application.While this ensures that the consumeris in control, it is another hurdle in analready ragmented marketplace toreach an end user. This could also alterthe mindset o those brands alreadylooking to capitalise on location-based

    advertising. I only 5% o mobile userswill accept third-parties using their real-time data, this could severely hamper thereach and scale o a particular campaignor promotion.

    And this is where the industry needsto get smart. Paid-or location-basedservices will remain niche at best. Thelack o a viable mass-market businessmodel or location-based services wouldsuggest an ad-unded model, but eventhis will be rejected by consumers un-

    less there is an obvious benet, such asa voucher rom a relevant restaurant orhigh-street retail chain.

    The obvious route or LBS to attract amass market will be to mirror that othe Amazon Kindle, the eReader thatprovides wireless access to the KindleStore housing over 300,000 publica-tions. The data costs to download eachpublication are invisible to the consumerbecause they have incorporated in thepurchase price.

    [email protected]

    consumed2

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    Mobile browsing consumertolerance on the up

    Consumer tolerance towards mobilebrowsing is increasing, according

    to personalisation specialistsChangingWorlds. Although the Amdocs-owned company could not divulgethe identity o the operator, StephenOman, worldwide director o salesengineering, Amdocs ChangingWorldstold mobileSQUARED that one operator willnow lose 25-30% o mobile browserswith every additional click away rom themobile portal.

    This represents a dramatic leap inconsumer acceptance regarding

    the mobile medium as a viableplatorm or browsing. Two-yearsago ChangingWorlds reported thatconsumer drop-o-per-click was 50%.

    In 2007, content providers or publisherslocated 10 clicks away rom an operatorportal homepage receiving 1,000,000visitors a day would potentially becompeting or 977 users, based on 50%consumer-leakage-per-click. Applyingthis latest gure rom ChangingWorldsand those 977 users have now increased

    to 56,314 (ater 10 clicks rom theoperator portal homepage).

    In the unlikely event that a contentprovider, or example, is 10 clicks romthe original mobile browsing accesspoint, then today they are competingor 5,764% more users than was thecase in 2007.

    This suggests that mobile sites cannow become denser in content,not only with less reliance on

    being positioned closely to theoperator portal, but accessibility and

    discoverability issues that have blightedthe consumer experience to date, arenally becoming less o a hindrance. Italso provides an ideal opportunity orbrands going direct-to-consumer and

    easing the reliance on operator portalsor content providers and publishers toreach a mass market.

    O course, ChangingWorlds ocuseson personalisation and the ability todeliver relevant and contextual contentin the real-time. Its all about theconsumer data an operator has,says Oman. I you have too muchinormation, its hard to work out whatis and is not important. And then makethat data available at the time you

    need to make that decision. Once youhave that data you need to know whatto use and when.

    For Oman, it is large data warehousingbuilt to house large data analysis orstrategic decisions, versus the ability tomake real-time tactical decisions basedon what the consumer needs. O2 UKis one o the leaders, or applyingconsumer data, Oman says. Wevebeen implemented on O2 Active portalor some time. O2 wants to have

    their landing page on the browser asthe jumping o point or the mobileInternet. Mobile Internet will be muchbigger than any one operator portal.

    Using ChangingWorlds technology,Oman claims that O2s mobilebrowsers would each receive apersonalised Active homescreen,based on preerence, behaviour andcontext. He said that i all 20 million oO2 UKs users were to start browsing

    simultaneously, they would each view adierent Active homepage.

    Our solution doesnt try to t peopleinto predened segments, said Oman.People are multi-dimensional.

    45% o online agenciesmoving to mobile in 2 years

    Almost 50% o online marketingagencies will look to incorporate amobile strategy into their clientscampaigns within 24 months, accordingto a survey conducted by mobileSQUAREDat Ad:Tech London at the end oSeptember.

    A total o 27.5% o companies surveyedwill look to use mobile within 12 months,

    with a urther 17.5% o online agencieslikely to implement a mobile elementto their campaigns within 24 months. Aurther 25% o agencies anticipate usingmobile within three to ve years.

    While it is encouraging that a signicantnumber o agencies already see thebenets o mobile, the remaining30% o agencies surveyed are yet torecognise the benets o mobile. Twelvepercent o agencies did not intend touse the mobile channel at all within thenext ve years, while 18% had alreadyexperimented with mobile and wereunlikely to revisit the channel within thetimerame outlined.

    According to mobileSQUARED research,there are already 15 million mobileInternet users in the UK, and this gureis expected to undergo exponentialgrowth over the next ve years. Whilethe number o mobile users in 2009 allsbelow the 38 million PC-based Internet

    users in the UK, mobile is an ever-present channel or consumers, unlikethe PC.

    rom the web

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    15 years to grasp online nowmobile comes along

    Its taken 15 years or brands andagencies to understand the workingso the Internet, but the mobile channelrepresents the greatest challenge or

    media to date.

    Mobile marketing presents a argreater challenge to brands andmarketing over the next 10-15 years,compared to what we were acingwith the Internet, said Mike Parsons,managing director at Tribal DDB,speaking at the Mobile MarketingAssociations Brand and Agencybrieng in London recently.

    Part o the problem, according to

    Parsons, is that brand owners arenot native digital users and have nounderstanding o how Generation Y isusing digital media.

    The serious decision makers within thebrand owner are rom a dierent age andnot the native digital age, said Parsons.As you get into serious campaigns,projects and services, you are dealingwith decision makers who are not digitalnatives, and their point o reerence isoten what their kids are doing.

    As Parsons highlighted, the advertisingagencies and online world are awareo the potential o the mobile channel,the problem is that it has not beenclearly identied in a manner that canbe explained to the decision makers.Or at least, until now

    Indian market to be worth$2.37 billion by 2013

    India is set to become the leadingglobal market or mobile content by2013 according to the latest researchreport rom mobileSQUARED. The report,India: Birth o a mobile contentsuperpower 2009 2013, orecaststhat the total market or mobileentertainment and content will reach$2.37 billion by 2013, up rom $835.78million in 2009.

    The Indian mobile market consists

    o more than 400 million mobilesubscribers, which is growing at 15

    million new connections per monthand will hit 700 million subscriptionsby the end o 2010. This phenomenalrate o growth is uelling huge newrevenues in the mobile content andentertainment market, according tothe report. This growth comes despite

    delays in the roll out o 3G technology.

    The continuing growth insubscriptions, and the deployment o3G expected rom late 2009 onwards,is expected to deliver massive growthin mobile voice and value-addedservices (VAS) revenues or the leadingoperators and content providers.The continued growth in the take-upo ringback tones, games, graphicsdriven by strong mobile Internet usagewill drive the revenues or mobileentertainment services.

    Licenses or 3G spectrum are not likelyto be issued until late 2009 ater a serieso delays by the Telecoms Regulator oIndia (TRAI). But the inherent increase inbandwidth and lower o per-byte datacosts associated with 3G technologywill become essential to the ongoingdevelopment o the content and servicesmarket by reducing barriers to entry orthe mass market.

    However, the report warns that themarket or content in India is at risk obeing stymied by highly interventionistoperators, who take a huge proportiono revenues rom mobile content salesand dictate pricing policy.

    Research shows that the operator takeo content revenues is normally morethan 70% o on-portal revenues, orcontent monetised through premiumSMS. Operators strategy in India is in

    marked contrast to the relatively opencontent-driven world o the AppleApp Store and Google Android devicesthat are dominating the thoughts ooperators, OEMs and consumers inWestern markets.

    Sponge soaks up highresponse rate

    A mobile marketing campaign in Nigeriahas generated over 7 million responsesover a three-month period. Mobilemarketing agency Sponge carried out

    the campaign earlier this year on behalo Etisalat, the UAE network operatorthat launched in Nigeria last year, aspart o a $1 million prize giveaway.

    On average, almost 78,000 dailyresponses were generated over a 90-day period on the back o a campaigncomprising text competitions, loyaltyscheme, a viral scheme and anmTicketing solution or a series o liveevents and TV shows.

    It is clear is that this has proved muchmore eective than Internet-basedpromotions as mobile is more widelyaccessible and more reliable, DanParker, chie executive o Sponge, toldmobileSQUARED.

    Nigeria has overtaken South Aricaas the continents largest mobilemarket with over 68 million mobilesubscribers. Mobile has rapidlybecome the nations primary meansor communication, with mobileaccounting or an estimated 90% oall phone lines in Nigeria. Whats more,70% o browsing in Nigeria is on amobile device.

    Aside rom the response rate, thecampaign has also led to a verysignicant jump in new SIM activationsand ARPU or Etisalat, though actualgures have not been released.

    Were not aware o any othercampaigns like this beore, there hasbeen some big brother style TV votingin Nigeria, but in terms o mobilemarketing we believe this to be arst, Parker added. We hope - andbelieve - this will be a springboard ormobile marketing in Nigeria.

    rom the web

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    quality. Users too have become evermore comortable in capturing andsharing moments via their handsets.

    While high-end handsets such asthe iPhone have provoked a reactionamongst consumers, operators areslowly becoming less reluctant topush mobile video, with poor networkcapacity having held back the marketor video in the past. It is true that the

    vicious circle o who was to pay or theintegration o new service rst and makemoney later scared many operators.

    But as High Speed Packet Access (HSPA)services have rolled out across Europe,oering consumers aster downloadsand operators better network capacity,the potential or a sustainable mobilevideo business model is in sight.Operators now have the bandwidthto experiment with dierent businessmodels and a broader willingness topush orward video than they ever hadbeore.

    Business models

    While the rst wave o mobile video wasall about the made-or-mobile short, theburgeoning amount o content on thewireline Internet is having a prooundeect on the programming now beingmade available or mobile. The reality isthat a vast amount o short orm videothat is available on the web is suitableor mobile and ew industry players nowbelieve that the economics stack up or

    The mobile industry has always had oneeye on the uture, a technological- orservice-based advancement that willgenerate an unequivocal buzz acrossthe world o wireless and associatedmedia, writes Ed Barker. Over the last veyears, this buzz has been attached to thelikes o TV, search, Internet, video andadvertising, each becoming labelled asthe next big thing or mobile.

    Despite the poor start or mobileInternet back in 1999, almost a decadelater and it is starting to become aphenomenal success globally. And asthe mobile industry once again casts aninterested eye towards video, the rise osmartphones and high-speed networkshas nally created an environmentcapable o delivering a good userexperience or mobile video.

    Bytemobile recently revealed to

    mobileSQUARED

    that as much as 40% oWestern European operators networktrafc is now video based. Forecastspublished by mobileSQUARED suggests theUS and UK mobile video markets will beworth US$444 million and US$29 millionby the end o 2009, respectively.

    Video, once the great white hopeo the mobile industry, has beenmuch maligned in recent years. Lowpenetration o video-enabled handsetsand consumers seemingly unwilling

    to risk the bill shock associated withdownloading mobile video clips havecontributed to a sector in limbo. The new

    data is a clear indication o the returno video to the thoughts o operatorsand consumers, oering a new hope tocontent providers seeking revenues rommobile video.

    While past hype surrounding mobilevideo ailed to materialise into revenuesor operators, the introduction o theiPhone, Googles Android and othersmartphone devices has been pivotal to

    the recent growth in mobile video. Notor the rst time, Apple has been centralto change in the mobile industry; iPhoneusers contributed to a 400% increase inmobile uploads to YouTube. Its a level ousage that has opened the eyes o otherplayers in the industry to the potential omobile video.

    This is in stark contrast to the rstgeneration o mobile video, which ailednot because there was an inherentlack o consumer demand but becauseo the high data costs operators werecharging or what amounted to a pooruser experience, with low resolutiondownloads on a small screen.

    In a move that is typical in the mobileindustry, simply because it could bedone, operators launched video into themarket. Early adopters were orced to paya premium, and everybody else to simplychose to avoid video.

    Not so today, with the majority o newhandsets oering a camera which isincreasingly capable in terms o video

    The all and rise o

    mobile video

    consumed

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    mobiwancommissioning unique mobile content.The popularity o mobile social networks is also drivingthe distribution o vast amounts o user-generatedcontent. Devices with better screens and cameras haveencouraged more peer-to-peer sharing a better consumerunderstanding has developed not only o how easy it is to

    not only view a video clip on a mobile device, but to captureand share one too.

    But does the preponderance o user-generated videomean the end to premium content in the value chain? Theoverwhelming success o BBCs iPlayer service on the iPhonesuggests that users want high quality programming butperhaps only i it is ree. The mobile industry may have tond success by exploiting the opportunity or associatedcontent such as ringtones, wallpapers and video ringbacktones or mobile advertising.

    Operators challenges

    The challenge or operators is to ensure that they remainrelevant in this media-driven environment. Many carriershave simply seen video as a way o driving subscriptions oat-rate data packages by oering media-capable devices toenhance users viewing experiences.

    This analysis o operators strategy is backed-up bymobileSQUARED data. Revenue data suggests that at a typical$3 per premium download there should 148 million and9.67 million transactions in the US and UK respectively. I thiswas the case operators should already be looking at wayso expanding their premium video content portolio. That is

    simply not happening.

    I mobile video cant deliver revenues outside o data thereshould be room or linear broadcast mobile TV so hypedby those pushing DVB-H, MediaFLO and other broadcasttechnologies.

    Yet the models or streaming and broadcast mobile videoare still being ormulated, and the success o a monthlysubscription model is conspicuous by its absence. Indeed,some in the pay-per-view mobile video market have slatedbroadcast as a uturistic way o implementing the past.

    Even while consumers wait or broadcast services todevelop, the huge growth o both premium and user-generated content over mobile networks in the past yearis a genuine boon or the industry. Yet there remains aquestion mark over how to monetise that video.

    Ad-unded video may change the environment, enabling reecontent to be monetised, operators to make a cut and thecost o content acquisition lowered. But isnt that said o somany mobile content sectors? Its a new strategy or manycontent video content owners too but would enable themto distribute content into multiple markets and increase thenumber o eyeballs. At least thats an end goal that appears

    ar closer in todays market than even a year ago.

    [email protected]

    I the lm industry can have Hollywood, and the Indian lm

    industry can have Bollywood, it stands to reason that themobile industry and its audience o 4 billion should get in on

    the ollywood act in one way or another. Lets not orget those

    bygone days o 2005-2006 when the hype and animation

    surrounding mobile video the next killer app to neutralize all

    preceding apps was akin to Brad Pitt walking up the Red Carpet

    at the Oscars.

    Until recently Mollywood was loosely dened as a sector o

    the Indian lm industry called Kerala, according to the peoples

    online encyclopedia Wikipedia. A reerence which no doubt

    inuriated the Molly Woods around the world . Now, Mollywood

    has ofcially become the term to celebrate all things video on

    mobile devices. Wikipedia.org denes Mollywood as successul

    videos and lms appearing specically on mobile phones.

    Alright, so the hype around mobile video has long aded, and

    instead o Brad Pitt walking up the red carpet Larry Lamb (Who?)

    is a more appropriate comparison. But word on the (3G) network

    is that video is back, and will be back in a big way in 2010. The

    BBC iPlayer is a popular service not only on the iPhone, but on

    other smartphone and eaturephones.

    The act o the matter is that consumers are watching videos

    (streaming and downloaded) on small devices. That is something

    that bodes well or the uture and leaves behind the cumbersome

    click-est required to access videos stashed away on the device or

    on operator portals. Networks and devices are nally working in

    tandem to deliver a compelling experience or the end user anddiscoverability is no longer an issue. That just leaves the content.

    Users are no longer restricted by operator content deals in terms

    o their choice. Various xPlayer services and YouTube provide a

    vast selection o content catering to all demographics. The only

    realistic hurdle now is price.

    Little is being done to change the perception o data prices to

    consumers who remain terried o pressing the connect button

    on their device. Data usage has expanded exponentially over the

    last 12 months. But get a clear message about clear data pricing

    to the mobile consumer and that exponential growth will itsel

    grow exponentially.

    The obvious solution to all this is to make a mobile video.

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    Premium rate services doing

    its bit or charity and politics

    walled garden

    Despite an increasing regulatory burdenand rising associated compliance costs,evidence has emerged over the pastew months that a new condenceis returning to the mobile premiumrate services (PRS) market in the UK.Organizations like Comic Relie, Coca-Cola and independent political partieslike the Jury Team, are embracingmobile-centric PRS services in eorts

    to present audiences, consumers andvoters with more convenient methodso engagement and interactivity. Thesedevelopments are signicant in that theysignal a return o mobile PRS activity tothe mainstream media and consumergoods and services industry.

    Perhaps one o the most eye-catchingo these rom an Industry point o viewwas the utilisation o a new high-levelpremium rate tari or mobile micro-payment charitable donations by the

    Comic Relie organisation which helpedraise a record amount o cash or thisyears BBC Red Nose Day. Almost 8million was raised via the new mobilemicro-payment tari on BBCs 2009Red Nose Day campaign, representing10% uplit in charitable donations andhighlighting the growing importance othe mobile handset in direct responsecampaigns.

    Charitable intentions

    The BBC ully committed itsel tosupporting and promoting a new 5and existing 1 consumer drop charge

    promoted via short codes, across BBCRadio 1, BBC 1s Comic Relie: FunnyFor Money and Lets Dance, BBC 2sTop o the Pops and BBC 3s Cordenand Horne programmes. There werealso parallel outputs rom BBC Radioboth national and local all drivingawareness including Radio 1 DJs ChrisMoyles and Fearne Cottons climbing oMount Kilimanjaro.

    BBC Interactive Technical Advice andContracts Unit (ITACU) supported ComicRelies work with key suppliers in thepremium-rate value chain, including allo the mobile operators, and mobileaggregator Mobile Interactive Group(MIG). The parties succeeded in allowingmobile shortcodes to be promoted onTV and radio and or all o the money tobe donated to Comic Relie.

    Claire McLaughlin, commercial manager

    at BBCs ITACU, says that the aboveexamples are good examples o whereinnovation can result in stunningsuccess. In the rst minute that theshortcode was promoted on BBC, over1m was raised. This demonstratesthe power o mobile in direct responsemedia and the simple viewer propositiono texting to donate obviously works,says McLaughlin. Its also worth notingthat the BBC did not receive any viewercomplaints, and bad debt was wellbelow the expected level.

    The use o mobile also attracted a newlevel o participation or Comic Relie,

    according to organiser Richard Curtis:The use o social media in this yearscampaign was huge. Mobile wasworking at the heart o our multi-platorm strategy bringing in newaudiences which werent necessarilyavailable in previous years.

    However, despite the success o mobilewithin Comic Relies undraising eorts,a new report published last month

    reveals that non-prot organizations asa whole are ailing to make the mosto mobile phones in general and textmessaging in particular. Charities itseems are struggling to make senseo how to use SMS eectively. Twentypercent have tried using text messagedonations in their undraising work butwith little success, while 10% tried withmoderate success and sadly, no onewho has given it a go did so with greatsuccess, according to npSynergy who

    carried out the research. (The report canbe downloaded here.)

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    Charities hold more optimism aboutthe idea o using mobile phones orundraising than or communicationssuch as messaging. Some charitiesare not prepared to take the risk ousing text message undraising with24% o respondents stating that the

    text message donation technology isconusing and o-putting.

    There are two main barriers whichare putting charities o using mobilephones within their undraising andcommunications work identied bythe report. The rst is the lack oknowledge within the sector regardingthe mobile phone. Charities are put oby the technolog y, they are conusedby the dierent potential uses that areavailable to them and are unsure o thebest way to go about using them to getthe best results.

    The second major set-back is thenet charges rom the mobile phoneoperators, taken rom every textmessage donation to charities, whichmakes small donation amounts rom thepublic even smaller.

    Mobile operator 3 is an enthusiasticsupporter o reorming the way thatcharities collect donations via mobilemicropayments. Mobile networksshould support high prole charityevents by enabling the highest amounto pass through o a consumersdonation as is possible, Rory Maguire,head o payment services at 3 UKsays. We now have the ability to passthrough VAT, that would have previouslybeen deducted and by utilizing Internetbrowser capabilities on modern mobiles,charities can collect other inormationrom users that enable a git-aid uplit

    to the donation.

    The report concludes that with theadvent o low-cost/no-cost textdonations, this could open up arenaissance o direct response publicadvertising or charities as more andmore ways are ound to use shortcodesto deray the costs o awareness raisingwork. They predict that text donationscould be raising nearly 100 million ayear by 2014. A gure that should helpget the operators attention.

    The mobile success in Comic Relies

    Red Nose Day campaign clearlydemonstrates what can be done iall parties work closely together,AIMEs chairman, Edward Boddingtoncomments. Premium rate has asignicant role to play in charityundraising as it is so simple to use. The

    ability to handle a large number o textsat any one time means that charities canpromote short codes or donations withcondence.

    It is not only charities that are starting touse the power o mobile to disseminatemessages and raise awareness. Theworld o politics is starting to showcasemobile, and none more so than in therun up to the US Presidential election in2008.

    Politics or the mobile masses

    While some individual politicians aremaking impressive orays into usingthe web and social media platormsto mobilise their campaigns and reachdierent audiences, it still seems thatmost o the parties are only just dippingtheir toes in the water, comparedto President Barak Obamas electioncampaign last year.

    Although all the main parties increased

    their online activity in the recentEuropean Union and local electionsin an eort to bring people closer tothe organisation with compelling andengaging content, one new party TheJury Team went much urther byproviding a mobile voting platormenabled by the Sponge agency, so thatconstituents could actually select theirMEP candidate.

    The Jury Team is a non-partisan political

    platorm aimed at making it possibleor independent candidates rom thegeneral public to stand or politicalofce. Launched by ormer Conservativedeputy chairman Paul Judge last March,this platorm has embraced online,social media and SMS as a way opromoting and engaging the public inweb 2.0 democracy.

    The use o technology in the Obamacampaign gave us some ideas aboutopening up the election process and

    we used social media to prole ourcandidates, says Judge. We heldhustings on our website, via Twitter

    and Facebook to engage voters andthen provided a mobile shortcode sothat people could select their preerredcandidate by SMS.

    Sponge providedthe messaging

    inrastructure andmanaged connectionsand verication withall ve MNOs, ensuringthat constituents in 11UK regions could choosetheir candidate via one vote per SIM card.Fiteen thousand constituents who usedthe service were charged their standardnetwork operator cost or sending theirvote in via SMS and received a MobileTerminating message back in return,conrming the selection which wascharged at 0.25. From this 0.10 plusVAT covered agency and mobile networkoperator charges, while the remaining0.15 pence was used to und uturemessages to the user reminding them tovote on election day itsel.

    Phil Gault says it had been an interestingexercise and one which proved the on-going participatory ability o the mobileplatorm. It was a ascinating, but nota technically complex problem, Gault

    says. Getting involved in a movement tothrow up alternative ways o engagingpeople appealed to us and allowed usto showcase how mobile is rising to thechallenge o integrating with all othercommunication channels within politics.

    As politics in the UK reinvents itsel, itwould seem that anything which boostsone-to-one dialogue with voters willbecome increasingly important andJudge is looking to repeat the projector the UK General Election in 2010.

    By Andrew Darling, director ocommunications, Association oInteractive Media & Entertainment(AIME).

    For more inormation and upcomingevents including Exploring the MobileWidget Universe on October 29th, pleasevisit: www.aimelink.org

  • 8/14/2019 mobileSQUARED: Issue 5

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