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mobileSQUARED monthly newsletter, September Issue, featuring articles on PBM, latest MCT data and more.

mobileSQUARED monthly newsletter, September Issue, featuring articles on PBM, latest MCT data and more.

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    access:mobile September Issue access:mobile September Issue Document Transcript

    • Inspiring brands to communicate with the mobile consumer September 2011 Permission-based marketing An industry split over growth prospectsMobile Consumer Trends UpdateOur data shows Android surging, but iPhone still leads usage Also in this issue OpenMarket White Paper: Mobile payments and crediting / Poynt / The Workshop Challenge / Guest column: Essence on mobiles / Gee W Bush and Toe-Knee Blair on mobile ad opt-in / Data points ... www.mobilesquared.co.uk www.mobilesquared.co.uk
    • TM www.adsmobi.com mobile advertising MOBILE ADVERTISING High Quality Pan-European Inventory london@adsmobi.com ▪ +44 207 5505673 Audience Targeting Successful Campaigns Global Reach 30,000+Mobile Developers & Publishers 30+ Billion Monthly Ad Requests 220+ Countries adsmobi is a mobile media buying platform that focuses on placing successfulCost per Cost per mobile campaigns for mobile advertisers. Click Download adsmobi delivers premium advertising traffic for advertisers through partnerships with leading mobile mediation and optimization platforms. Cost per Rich Media adsmobi provides advertisers sophisticated targeting capabilities such as location,Thousand Ad Formats audience selling, demographics and channels categories. Meet us at: September 21-22 September 21-22 National Hall, Olympia Messeplatz 1 MMA Pavilion Cologne, Germany New York ▪ London ▪ Hamburg ▪ Singapore +1 (646) 807-4596 ▪ contact@adsmobi.com
    • editorial Welcome to the first issue of our rebranded monthly magazine - access: mobile. Our new branding will also be rolled out across commercial events, the weekly researchNick Lane, chief strategy analyst and analysis updates, under the guise of access: mobileROADSHOW and access: mobileW-nick@mobilesquared.co.uk EEKLY .Tel: (44) 118 977 6902Mob: (44) 7976 057 052 The single branding will see our access: mobile portfolio focus on connecting brandsSkype: nick-lane1 and businesses with mobile consumers. Our data, research, knowledge and insight will cover mobile marketing and advertising, social media, internet, entertainment, content and apps.Gavin Patterson, chief markets analystgavin@mobilesquared.co.uk To celebrate our rebranding, mobileSQUARED is running a competition giving awayTel: (44) 1904 675 945 sponsorship worth £10,000. The winner will receive Gold Sponsorship and a KeynoteMob: (44) 7940 272 941 presentation at our access: mobileROADSHOW event in London on Nov 9th.Skype: gav.patterson How do you enter? It’s very simple – we want to hear about your/your clients’ most successful mobile consumer case study to drive mobile interaction, awareness and/Caroline Baldwin, reporter & researcher or revenues. It could be on apps, online, WAP, a campaign, social media, a brandingcaroline@mobilesquared.co.uk proposition, retail… you name it. The submission judged to be The Best of the BestTel: (44) 118 979 5610 will win. Simple! Rules and guidelines are now up on our website:Skype: cl_baldwin1 www.mobilesquared.co.ukBecci Price, PR & marketing In the meantime, I hope you enjoy reading access: mobile. In this issue, you willbecci@mobilesquared.co.uk find an extract from our first Mobile Consumer Trends quarterly update, featuring headline data and forecasts based on 2Q11 consumer panel research covering theTel: (44) 118 979 5610 usage of mobile internet, applications, advertising, opt-in marketing and commerce.Skype: becci_p Future issues will explore each of these five areas in greater detail - including break- outs by age, gender, location and device type.Aman Toor, client services manageraman@mobilesquared.co.uk You will also find exclusive analysis of permission-based marketing, extracts fromTel: (44) 118 977 6902 one of our recent White Papers on mobile payment and crediting, the latest news, data and analysis from our website, guest articles and the Workshop Challenge - where mobile advertising experts battle it out to create theHow to find us: best mobile ad campaign and sit atop our leader board -mobileSQUARED HQ, think Top Gear’s star in a reasonably priced car!St Pauls Clock House,Wokingham. Finally, I’d like to wish a welcome return to our covertBerkshire, RG41 1EX, UK analysts, Gee W Bush & Toe-Knee Blair, who are still searching for the mobile advertising revenues of massISSN no. 1759-6483 construction, while in the October issue it will be nice to seePublished in the UK 12 times per year the appearance of our new number-cruncher extraordinaire,in pdf format Bruce Foresight ... to see the appearance, nice!No part of this publication may becopied, photocopied or duplicatedwithout prior written permission from the publisher,D2 Mobile Ltd Gavin Patterson Editor, chief markets analyst contentsmobile is a trading name of SQUAREDD2 Mobile Ltd.The mobileSQUARED team offers unique forecasting,analysis, research and insight on the mobile page 4 Feature - Permission-based marketingmarket, providing highly focused reports andbespoke intelligence. We tailor our approach to the page 8 Data - Smartphone usagerequirements of each project and use our network of page 9 Column - Gee W Bush and Toe-Knee Blairglobal network page 10 Analysis - Mobile Consumer Trendsof contacts. page 13 Workshop ChallengeOur extensive market knowledge stems from years page 14 News roundupcovering the mobile industry meaning that we’re page 16 Data - Apps and burgersin a position to respond immediately to marketdevelopments. page 17 Company profile - Poynt page 18 White Paper - OpenMarketAll rights reserved. Opinions expressed by individual page 20 Column - Matt Issacs from Essencecontributors may not personally reflect the views of D2Mobile Ltd. Whilst reasonable efforts have been made toensure that the information and content of this publicationwas correct as at the date of first publication, neither D2Mobile Ltd nor any person engaged or employed by D2Mobile Ltd accepts any liability for any errors, omissions orother inaccuracies. Readers should independently verify anyfacts and figures as no liability can be accepted in this regard.Readers assume full responsibility and risk accordingly fortheir use of such information and content. twitter.com/ facebook.com/©2011 D2 Mobile Ltd. mobilesquared mobilesquared.co.uk mobilesquared www.mobilesquared.co.uk 3
    • featurePermission-based marketing: An industry split over prospects for growth Permission-based marketing (PBM) Alastair Shortland, CEO of Txtlocal, anywhere between 60-70% of com- is on the rise as more and more which provide bulk SMS and mobile panies yet to adopt the medium. brands and businesses, not to marketing services, claims to have mention the operator community, 75,000 businesses using the service Cost and education realise the potential of using text and expects a significant growth Cazalet believes there’s still a huge to communicate with consumers is over the next 12 months. amount of work to be done to edu- more direct and more likely to be cate companies about the power read than email. However, the mo- Similarly, Henry Cazalet, director of of PBM to their business. “The key bile marketing industry appears to Text Marketer also thinks that mo- word here is permission,” adds Ca- be split over just how fast PBM will bile marketing is undergoing rapid, zalet “The reason why SMS mar- grow over the next 12-24 months. organic growth. “Mobile market- keting works so well is that it’s not While a number of companies are ing, or PBM, has been around since really perceived as spam, because predicting significant growth in the 1998, but there aren’t that many we don’t get spam onto our mobile sector, others claim some of the companies using the mobile phone as we do on our email. It’s only in biggest spenders have undergone as a way to market; probably about the last 2 or 3 years that more and enforced cutbacks and that will 30% of the UK.” more companies have started to stifle growth in the near-term. look at PBM and find out how and Additional research by mobileSQUARED why it will work for them.” One of the most salient points to suggests this figure could be low. arise, is that in developed mobile The Direct Marketing Assocation Any business can set up a mobile markets between 30-40% of com- (DMA) believes the figure is around SMS campaign, from the very small panies are using mobile, and PBM in 40%. Across Europe, for example, SMEs and local pubs alerting a few particular. While the need for educa- the penetration of PBM in companies of their regulars to special offers, tion around PBM remains critical to is believed to be lower than in the to big brands such as Argos which secure growth, there is undoubtedly UK. That means, the opportunity boasts an opt-in database of over 6 an enormous potential. for PBM across Europe, is vast, with million customers.4
    • a month and companies that spend keting and change how and what £7,000 a month and upwards. users opt-in to receive via email. “We’ll deal with your local pub, and But not everyone agrees with the we’ll deal with big brand names as resurrection of email marketing. well. The way I tend to explain it Matt McNeill, CEO of Sign-Up.to, is that we’re a Post Office, where told mobileSQUARED that ”permission- you get the little old ladies in to based marketing really is the only post their letters, but they might sustainable form of direct marketing also be next to a major PLC com- which has a very long term future. pany,” explains Bibby. “About 75% It’s about making users aware thatHowever, Mark Brill, CEO of Forma- [of our customers] are the smaller it’s a much more targeted tool thantion which offers SMS marketing businesses and 25% are the bigger email. The clients who get the mostthrough the channels Txt4ever and businesses.” out of it are the ones who plan inText4everywhere, has a more cau- advance and know what they wanttious view of the immediate future Companies can start a PBM cam- to achieve from the campaign.”of mobile marketing. paign with as little as £2. With SMS messages starting at an average of SMS spam“On the whole we are all experienc- 3.7p per message, it is a cost which The biggest deterrent for companiesing growth,” he told mobileSQUARED. is not associated with an email using PBM to communicate with“The government was probably the campaign. their customers is the ever-presentsingle biggest spender in mobile in threat of being labelled a ‘spammer’,the UK this time last year, but they’re A threat to SMS marketing? a legacy carried over from emailno longer in this position because of “Although the cost of sending a marketing. Cazalet of Text Marketercutbacks. It’s not a case of saying it’s all text message is peanuts, send- is concerned about SMS hitting agrowth, but there are areas which ing it to 10,000 people isn’t,” says critical mass and negatively af-are not necessarily expanding.” Jon Mew, director of mobile opera- fecting brands. “There’s a danger tions at the IAB (Internet Advertis- because the more companies thatThis is also highlighted by Steven ing Bureau). “It starts to become use these tools, the more textsBibby owner of Textanywhere, he a more significant cost. The cost we’ll all get. If all your local shopssays the economic situation con- per-text message is obviously much started texting you, it might betinues to hamper companies. Brill higher than the cost per-thousand useful, but if it gets too much it willagrees and highlights how the you would pay in an email advertis- very quickly become a nightmare,”recessionary period has effected ing campaign.”Mew highlights that explains Cazalet. “You have to usemarketing and advertising, quot- email marketing could be in for a SMS with caution and make sureing one car manufacturer dropping resurgent period because of the it’s not about selling stuff the entiretheir £20,000 mobile campaign, but number of users accessing their time, but using the mobile to getkeeping their existing TV advertising emails on their mobile devices. interesting nuggets of informationcosting over £2 million. However, the consideration between across to people.” SMS and email is the effectivenessIt might be a growth market, but of PBM versus no cost for email. For Explaining the SMS opt-in regime,businesses are still struggling,” says example, the reader rate of SMS is Janine Paterson, solicitor for theBibby. “We’re getting new clients on around 98%, whereas email reaches Direct Marketing Association (DMA),board but apparently some clients peaks of 20%, but is on average highlights that the DM Code ofare going by-the-way. It’s nothing to significantly lower. Practice states the general legaldo with the SMS marketing side of rule is that SMS marketing is opt-in,things, they’re just generally going What’s more, now that emails are whereby marketers must proac-out of business.” becoming as mobile as SMS, there tively gain consent from consumers could be a rebirth in email market- they want to contact through SMS.Bibby, like all PBM service providers, ing which could also potentially Marketers cannot send random,has companies that can spend £5 threaten the success of SMS mar- untargeted commercial communica- Permission-Based Marketing October 3rd London Hear From Industry Experts: Alcatel-Lucent, Velti, IMImobile, Mobext, BBC, Somo, MIG, DM, OpenMarket, In- terflora, Thomas Eggar, Golden Gekko, mobileSQUARED, MMA, On Device Research, Adfonic, Adsmobi, Eagle Eye, O2 Media, Upstream, Blyk, MobileGroove... To register visit www.mobilesquared.co.uk or click here SPONSORS RESEARCH PARTNER www.mobilesquared.co.uk
    • grammes, and compares the high opt in by either downloading an app, response rates and conversion to or visiting the website and agreeing the fact the messages are targeted to share their current location data. and contextual. “When a consumer receives an SMS, the assumption is Mew from IAB points out that there SP that they’ve opted into that pro- is massive growth in vouchering as S AM P gramme so they want to hear from an added value to customers, which A that retailer or operator because it’s M has developed from companies SP interesting, so they’re going to click like Groupon. Adam Levene, chief AM through,” she says. strategy officer at Grapple agrees. “O2 have done a fantastic job of showing that operators do have a SPAM really strong role in the value chain, Even though every- especially around permission-based one is poo-pooing SMS marketing,” says Levene. “I think it’s really encouraging what they’ve these days, from our done and as a first entry to the market it’s pretty strong. I think experience it is still is other operators will have to fol- the strongest engage- low suit, they’ve all spent a lot of tions using data obtained in breach time on SMS and MMS because it’s of data and privacy regulations. ment method. Back in a channel they own, but now they will start to bring more and more Bibby, from Textvertising, agrees the 1990s there was a proposition through apps. Orange and believes as long as a business bit of spam, but that’s Wednesdays started via SMS and sticks to what it does for a liv- they then created an app for cus- ing, it works because that is what been controlled now, tomers, but it was very limited the consumer has opted in to. The because there are no constant of- issue that could potentially blight so people know when fers from multiple brands. But they the success of PBM is the fact that they get a text it’s go- already went into apps to do that, companies can purchase vast mobile because they realised it was a really databases and deliver irrelevant ing to be something of good channel for them.” marketing messages. “‘Have you had an accident in the past 12 value to them. Other apps which have used lo- months?’” highlights Bibby of a form cation-based services to provide of spam rife right now, “Now people customers with added value is the Olvera, director of marketing at Velti are getting inundated with these app called Shoparazzi and MTV’s text messages,” he adds. new Live & Local app which is based in the US. Regardless of the threat of spam Velti has worked with UK high-street or abusing mobile databases, the retailer Argos in developing its After concentrating on developing fact remains that SMS is the most mobile opt-in database of 6 mil- apps with coupon redemptions such powerful form of communication for lion. “Customers of Argos who had as Local Sale Finder, the developer a brand. Research by mobileSQUARED texted in to reserve an item, but Geocast, which in 2010 revealed that over 95% of had never bought it, were kept on delivers solutions messages are read within 3 min- history,” says Olvera “So Argos are for location-based utes. Put into a marcomms context, sitting on a lot of customer data and businesses to a company sending out an update to now what they’ve done is turned generate footfall its opt-in databse of 10,000 will be around and marketed to custom- and loyalty via read by 9,500 within minutes. ers who showed interest in buying a mobile devices, particular item.” have created Sho- “Even though everyone is poo- parazzi. The app pooing SMS these days, from our Location and vouchering aggregates sales experience it is still is the strongest The latest development in PBM, is from over 15,000 engagement method,” says director the role of location. According to UK stores allow- of marketing at Velti, Kelaine Olv- research by ad sales house JiWire, ing consumers to era. “Back in the 1990s there was a nearly 70% of UK consumers would find their closest bit of spam, but that’s been control- opt-in to location-based services if bargains. led now, so people know when they they were to receive relevant con- get a text it’s going to be something tent, compare to only 53% in the “Our mission is to of value to them.” Velti recently US. What’s more, 33% of UK con- influence cus- released statistics from a UK survey sumers would be influenced by sales tomer behaviour which confirmed that 50% of people and promotions to visit new stores. via smartphones. who had received SMS marketing What we see is followed through to buy something In July 2011 mobile operator O2 a real burning from that text. launched Priority Moments, which need for consum- serves location-based money saving ers to help them Olvera believes the success of offers from big brands straight to its in the real world, messaging is based on opt-in pro- customer database. O2 customers where people still6
    • do most of their shopping. 90%+ to sending messages over carriers, ing a push notification, while theof their shopping is still done in the whose cost structures are quite high Urban Airship client Dictionary.comreal world where people are buying for companies and consumers using increased its active user iPhone ratereal things. So we’re bridging that SMS,” explains Boyd. by 6%. However, Boyd says it is notgap using smartphones,” explains just about encouraging users backBrad Liebmann, founder of Geocast. to the app, “We’re trying to use push notifications to welcome us-“The app learns what you like over Our mission is to in- ers upfront, instead of encouragingtime,” he continues. “So the more fluence customer them back with a notification whichyou use it, the more we can tar- might just remind them to delete itget to you. We’re able to use these behaviour via smart- anyway. We don’t want to lose themlearnings to tailor the sales and the in the first place,” he adds.offers to them.” phones. What we see is a real burning Apps or SMS? Both have thePushing marketing forward same rulesEven a well thought app can be need for consumers to It is clear to say that permission-forgotten among the vast choice in based marketing has come on atoday’s market, in order to prevent help them in the real very long journey since its incep-this from happening, Levene recom- world, where people tion, through many different plat-mends push notifications to gently forms and tools. Now with usersremind customers of an offer they still do most of their becoming more reliant on mobilemay wish to redeem, encouraging web and wifi, it is only natural forthem to return to the app. He says, shopping. 90%+ of marketers to look at ways to utilise“Push alerts, in my opinion, are an their shopping is still this technology. While at the sameevolution of direct marketing and time Levene points out that there’sSMS which reminds users how good done in the real world still a learning curve and manythe app is at providing ongoing brands and businesses are jump-value.” It works in the same way as where people are buy- ing onto new technologies withoutan email or SMS marketing cam- ing real things. thinking it through. He also interest-paign: customers show interest in a ingly adds, “Apps have leant them-brand by downloading their app and selves really well to big brands morethen they can opt-in to receive push Liebmann, founder of Geocast than SMEs, and I think SMS is still aalert messages regarding activity of really good channel for SMEs - yourthe brand and the app. starting to market to customers This new marketing tool is explicitly you already have and that becomesTo find out a little more about the opt-in only, taking lessons from ten really valuable to them,” suggest-potential surrounding push notifica- years of SMS and email marketing. ing that SMS marketing will nottions and mobile marketing, mo- Boyd describes it as a ‘complete disappear if marketing through appsbileSQUARED talks to US-based Urban closed loop, user controlled opt- becomes commonplace.Airship. This company partners with in system’ with Apple and Googlebrands such as Verizon and Warner monitoring this over a strict set of With all new technologies, mar-Bros. to create engaging mobile rules. This means that notifications keters must follow their directmarketing campaigns through push are also resilient to spam mes- marketing guidelines and use thenotifications, rich media and in-app saging, as notifications are auto- tool correctly. Spam and irrelevantpurchases. Vice president of growth, matically turned off when an app is messaging will always be used as anDylan Boyd, describes how push downloaded. Once the app asks the abuse of the technology, but com-notifications were originally cre- user’s permission, the user can also panies are only harming their ownated by Apple to alert users of any set preferences to state what time brand in the long term.new content or goings on within of day they wish to receive notifica-the app. It is still a relatively new tions and detailing what types of Regardless of the tool and itsmarket with Urban Airship only messages they want to receive. This simplicity or complexity, there islaunching them two years ago on produces an extremely targeted a simple ground rule brands mustsome of the iPhone’s very first apps. form of marketing. remember when using all forms of“It’s changing the way people are permission-based marketing: thatusing SMS messaging on devices. These notifications also increase customers who have opted-in toFacebook have just launched their user visits to apps. ComScore receive marketing deserve to be offeredown non-SMS notification app and pointed out earlier this year that extra value and to be treated differ-Apple is soon to be launching a Groupon and Living Social in the ently than a consumer on the street.similar instant messaging service US claimed that 14% of users arecalled iMessage. It’s an alternative engaging with an app after see- caroline@mobilesquared.co.uk www.mobilesquared.co.uk 7
    • data point: UK 50% smartphonepenetration in 2011MobileSQUARED forecasts the number of smartphones inthe UK will have risen almost 200% from the end of2009 to approximately 32.5 million by the end of thisyear. Around 30 million phones are sold every year inthe UK and more than 50% of those are now smart-phones.In fact, smartphones constitute the vast majority ofpostpaid (pay monthly) sales, while postpaid salesare also increasing in proportion to prepaid sales.This means the rate of smartphone growth is goingto keep accelerating – great news for all you mobileadvertisers, marketers and brands!Over the same period, the number of featurephonesin the market is expected to fall about 26% from 68million in 2009.Android smartphone devices will obviously see thegreatest bounce, up almost 2,000% from end-2009,with Apple up 306% and BlackBerry rising 185%.Meanwhile, the number of Symbian devices in the UK from 13.5% end-2009. Android will constitute 34% ofare estimated to have fallen around 30% over the total smartphones used, followed by Apple with 27% and24-month period and will rank 4th behind Android, BlackBerry with 24%.Apple and BlackBerry at the end of 2011 from 1stend-2009 and 3rd end-2010. The numbers are even greater when applied to actual popu- lation penetration, with smartphones users growing fromOverall, the smartphone market share of total devices 18% of the population in 2009 to over 50% by the end ofwill be just shy of 40% by the end of this year, up this year.
    • What next for Mr Jobs, Adopt a phone?Toe-Knee Blair idiot. If The Beatles came to me sumers to sign up to receive newsHey, Gee W, do you know what you and said ‘sign me up’ I sure as and updates etc. In the UK, therehave in common with Apple? hell woulda. What was he thinking are about 17 million mobile users about? In fact, when I was in the that have signed up for these alertsGee W Bush oral office, and Cheney and Rums- on their mobile. I guess you couldWhat? feld presented me with the oppor- call it mobile ad opt-in. tunity to sign up the next big thing,Toe-Knee Blair I almost bit their arm off I was so Gee W BushUntil recently, you both had power- eager. Very strange though, as I No need to say it slowly Toe-Knee,ful jobs. never did find out what happened to I’m not stupidiserous. Say it how The WMDs? it is: Mobile adoption. And I thinkGee W Bush you can safely say that the numberI do like Apples. I always like to Toe-Knee Blair of phones with new owners is 17consumerise a pair as part of my I don’t think The WMDs were a band million and 5. I’ve now rehomifiedsix a day. Gee W. a Nokia, given two iPhones to some visionary impaired friends, an HTCToe-Knee Blair Gee W Bush to Barb, and I’ve given an STD toYou mean an apple and a pear? Certainly not in The Beatles’ league Condoleesa Rice. Toe-Knee. As for Steve Jobs, IGee W Bush think he should help with relocating Toe-Knee BlairNo, two apples. unwanted mobile phones, like I’ve Mobile ad opt-in is the process by been doing for the past month. Very which users allow brands to commu-Toe-Knee Blair rewardering work indeed. nicate with them using the mobileWe’re not talking about the fruit device. Mobile adoption is moreGee W, we’re talking about the Toe-Knee Blair likely to be a song played by Thecompany that has revolutionised Unwanted phones? Gee W, we’ve WMDs.the way people listen to music and been In Search of Mobile Advertisinguse their mobile phones. Do you Revenues of Mass Construction, and Gee W Bushthink Apple will continue to flourish I fail to see what unwanted phones Well my good buddy, looks likeafter Steve Jobs has stepped down? have to do with our latest mission we’re going to be busy. It’s going to on permission-based marketing. For take a mighty long time to overseeGee W Bush the last month we’ve been looking the returnarization of all those 17I always thought the man was an at how brands are encouraging con- million and 5 mobile phones. www.mobilesquared.co.uk 9
    • mct update Android surges, but iPhone still leads usage The following is an extract from Mobile Consumer Trends update: 4Q10-4Q11 looking at the head- line data covering usage of mobile internet, apps, advertising, opt-in marketing and commerce over the 12 months to the end of the year. All figures and forecasts are taken form mobileSQUARED’s campaign planning database – Mobile Consumer Trends, and based on our latest quarterly consumer panel survey from 2Q11. The total number of mobile operator Mobile Internet lieves BlackBerry is likely to see devices in the UK is expected to rise The total number of mobile internet the same decline in sales it has 2.3% from 81.04 million end-2010, users in the UK is forecast to grow witnessed across north America – to 82.91 million end-2011, with almost 40% from 21.57 million end and rumours of providing BBM to smartphone penetration of total 2010 to 30.2 million at the end of Android and, possibly, Apple is not devices increasing from 24.28% this year, driven by the burgeoning going to help this. end-2010 (19.68 million) to 39.13% trade in smartphones. Moreover, end-2011 (32.44 million). The the accelerating take-up of devices Mobile Applications number of smartphones in the UK running on the Android, iOS and App users in the UK are forecast to is forecast to rise almost 65% over BlackBerry operating systems will grow 51.2% from 16.69 million end- the period driven by the almost un- see the smartphone penetration 10, to 25.24 million by the end this stoppable adoption of Android, the of mobile internet users also rise year. App usage will remain propor- youth segment usage of BlackBerry sharply - from 58% end 2010 to tionately higher among owners of and, of course, the iPhone. 74% end 2011. Apple devices, although the sheer volume of Android sales will see it More importantly, however, these Although iPhones only accounted for just sneak ahead in term of users numbers mean that smartphone 8% of the total devices in mar- by the end of the period. penetration measured by population ket end 2010, rising to 11% by numbers will rise from 32.22% in the end of this year, they account The majority of app users are obvi- 2010 to 52.77% to end-2011 – an for approximately one quarter of ously on smartphones, rising from enormous watershed in terms of total mobile internet devices over 68% of the total end-10, to 80.5% how we all communicate and inter- the period. Android-based mobile at the end of this year. iPhone own- act with mobile digital media. internet usage will rise from 9.6% ers will account for 34.2% of all of total devices end 2010 to 28.7%, app users at the start of the period, Android devices are forecast to while BlackBerry will see a decline in falling to 31.2% end this year, while grow from 2.71 million end 2010 to mobile internet market share from Android will increase from 11.2% 11.16 million at the end of this year 21.5% to 18.8% despite an overall to 31.3%. – more than one third of the total growth in sales. The anomaly with smartphones in market. iPhone is BlackBerry is a result of extreme On a proportionate basis, 89.1% of expected to drop from first place to growth among 18-25 year olds total iPhone users downloaded and second, growing from 6.4 million to (mainly the student population) used apps end-10, rising to 89.4% 8.82 million, with BlackBerry drop- who are primarily interested in the by the end of this year, while An- ping from second to third – growing cheap BlackBerry Messenger (BBM) droid will see app users grow from from 5.62 million to 7.88 million. capabilities. 69.1% of total ownership to 70.7% Symbian devices will continue to over the period. The disparity with fall, with a slight upturn in numbers Despite rapid growth in unit sales mobile internet usage is not quite as for both Microsoft and Others. over the period, mobileSQUARED be- marked, with 90% of iPhone own- ers using the mobile internet end-10 and 90.3% end-11, compared to 76.8% and 77.7% respectively on Android. The difference in app and Internet usage from Apple to An- droid is due to the vast number of different Android devices available, and varying price points, compared to Apple. Hence, low-end Android devices are still largely used as fea- turephones. Mobile Commerce Commerce numbers are estimated to grow 23% from 16.89 million end-10 to 20.76 million by the end of this year, with the growth unsur- prisingly driven by smartphones. The penetration of smartphone10
    • devices among total m-commerce devices accessing mobile ads -users is expected to jump from 49% driven primarily by BlackBerry.to 62% over the period. The iPhoneremains the single most used device Furthermore, the proportion of totalfor m-commerce activities (the pur- iPhone users who have acted on achase of physical goods and serv- mobile ad (either purchased as aices) accounting for 20% of total result in-store, on PC, on mobile, orusers end-10, and forecast to hit seen but not purchased) is forecast25% end-11. to grow from 49% to 67% over the period, while the proportion ofAndroid owners only accounted for total Android users will actually fall5% of total m-commerce users at from 48% to 29% despite an almostthe end of last year, although the 150% increase in the number ofnumber is forecast to rise to 12% Android device users viewing mobileby end 2011, while other smart- ads from 1.3 million to 3.24 million.phones (including BlackBerry, Sym-bian, Microsoft and Others) will rise Mobile Opt-infrom 24% to 25% over the period. mobileSQUARED forecasts that opt-in users will grow 27.6% over theThe penetration of m-commerce period from 13.5 million to 17.2usage among iPhone owners is million as brands increasinglyexpected to rise from 53% to 59% realise the power of mobile market-over the period, while Android m- ing. Initiatives such as O2 more,commerce penetration will fall from and its ‘Priority Moments’ scheme31% to 22% due to the massive have gained tremendous tractiongrowth in the number of devices in the market and consumers arein the market as well as feature- increasingly likely to use mobile asphone-type usage. a vehicle to discover and redeem offers.Mobile AdvertisingMobile advertising numbers are Mobile opt-in is the only area cur-growing strongly, up 66% over the rently tracked by Mobile Con-period from 10.82 million to 18 mil- sumer Trends where feature-lion. Smartphones again dominate phone/other usage remains aheadthe numbers, accounting for 77% of smartphones during the period,of all eyeballs reached end-10 and accounting for 68% of total users in85% by the end of this year. 4Q10 and 61% in 4Q11.The importance of the iPhone to de- Future issues of access: mobilevelopers is evident by the fact that will analyse usage of mobile inter-29% of all users viewing a mobile net, app, advertising, opt-in andadvert were on an Apple device commerce in much greater detail,end-10, and forecast to rise to 33% leveraging our exclusive consumerby the end of this year. Android us- research covering a panel of 3,000ers are expected to increase from 18-64 year olds throughout the UK12% to 18%, with other smart- broken out by age, gender, location,phones falling slightly from 36% to device type and socio-economics.34%, despite an overall 57% growthin the number of other smartphone gavin@mobilesquared.co.uk www.mobilesquared.co.uk 11
    • 12
    • workshop challenge Pit your wits against your mob-ad peersWelcome to the first mobileSQUAREDWorkshop Challenge – our very Workshop Challenge league tableown call to action for the mobileadvertising industry. We want allyou ad experts and vertising gurusto battle it out and create the bestvirtual mobile ad campaign in thehope that one day, you too, could sitatop our leader board.The mission, should you chooseto accept it, is to create a mobileadvertising campaign for the launchof a new beer aimed at the 24-44year-old male segment. The budgetfor the campaign is US$100,000 andthe aim is to reach as many eye-balls as possible – repeat eyeballscount as overspend and will not beincluded.You will find a list of costs associated with buying dif-ferent types of mobile media on the adjacent form,and each campaign must adhere to the following:-• Each campaign must create at least one destinationsite (app, website or landing page)• You must commit a minimum of US£10,000 to eachof the three categories of mobile advertising on theform – namely Messaging, Mobile Display Advertisingand Other Mobile Advertising• Mobile Display Advertising spend must be split be-tween a minimum of three categories (i.e. sport, newsand entertainment)You must decide how to spend the campaign budget toachieve these goals. For the purpose of this challenge,all display advertising is measured on a CPM basis andeach campaign will be measured against 1 month ofreal mobile ad metrics (contributed by Orange MobileExposure 2010, an independent study conducted byTNS) to determine the audience reach.To start you off, we have published results from theWorkshop Challenge held at our mobileSQUARED Road-show: Europe event in London last year. The table iscurrently topped by Alex Miesl - chairman of SpongeGroup, with Graham Darracott - founder of The DigitalParent Company (DPC), the only other contender tohave reached more than 1 million eyeballs so far!Think you can do better than Alex and Graham? Thenplease download the entry form on our webiste, fill itin and email it back to us at editorial@mobilesquared.co.uk - You will win absolutely nothing other than theimmeasurable kudos of being top of the league, theadmiration of your friends and the long-standing en-mity of industry colleagues.in association with... www.mobilesquared.co.uk 13
    • news Handsets Marketing and advertising ROUND(UP) Apps and social media Commerce Handsets tickets. O2 is now looking to extend this into the retail environment Ad agencies plans for rich media advertisements through O2 Priority Moments. The Big players in the mobile advertis- Teens lead UK smartphone multi-million pound investment by ing space, Amobee and InMobi, penetration O2 will see Priority Moments serving have both recently turned to rich Ofcom claims that Britain is a “Na- location-based money saving offers media developers to strengthen and tion addicted to smartphones” with straight to the mobiles of their 22 harden their campaigns and per- just over a quarter of adults in the million customers. It has already formances. Amobee has announced UK now using a smartphone. Ac- received support from brands such a partnership with the digital con- cording to the telecoms regulator as Yo! Sushi, French Connection and tent provider Cooliris to introduce 27% of UK adults and almost a half Toni & Guy, with many more deals 3D ad campaigns to mobile users of teenagers are now using smart- to follow. O2 claims that their cus- on any device or network. Amobee phones, with 59% of users only ac- tomers could potentially save £105 says rich media advertising encour- quiring their device in the past year. per month by using an app which ages user engagement and inter- The communications market report acquires their location through GPS. activity through entertaining expe- claims the iPhone is the most popu- Other partners who have signed the riences. Meanwhile, InMobi have lar brand with adults, while teens deal with O2 to date include Hotel also recently announced strategic are loyal to RIM’s Blackberry devices Chocolat, Essensuals, National Ex- developments in rich media adver- which features the free instant mes- press, Fitness First and Viagogo. tising, after acquiring the developer saging service, BlackBerry Mes- Sprout. The Sprout acquisition senger. According to mobileSQUARED’s YouGov says mobile advertising will not concern 3D ads, but cross Mobile Consumer Trends (MCT) is not working platform expandables, collapsible database, there will be 32.44 million Despite the best efforts of mobile and interstitials that are vehicles for smartphones in the UK by the end advertisers to target smartphone carrying engaging html format. of 2011 – equivalent to a population users in the UK, a YouGov poll penetration of over 50%. shows that only 14% welcome ads Apps and social media 700 mil. smartphones by 2016 when using mobile internet and even less on apps. Mobile adver- Facebook attempts to replace Shipments of touchscreen-only tisements are failing to connect texting smartphones will hit 700 Million by with British consumers according to Facebook has launched an instant 2016, says Juniper Research, mak- research of 2,082 participants con- messaging service for mobile ing up to 72% of total smartphone ducted by YouGov. 88% of smart- phones which aims to replace SMS. shipments, compared to just over phone users say that they ignore The service, which is similar to half in 2010. Juniper also predicted mobile ads in applications because RIM’s BlackBerry Messenger (BBM), that 3D-enabled shipments will they find them intrusive, with 86% is available as an app to download reach 80 million by 2016, thanks to ignoring them on mobile web. on iPhone and Android devices. Fa- the manufacturers HTC and LG. cebook has 750 million users global- The company stated that global ly who can already send messages smartphone shipments will reach Personalised and time-based through the Facebook website and one billion per annum in 2016, ads preferred over location the app for smartphones, although up from 302 million in 2010, and Sixty percent of smartphone users the Facebook Messenger is only economy smartphones will account say they prefer to receive ads which available in the US at the moment. for nearly one-third of shipments are personalized by their interests mobileSQAURED’s research shows there in five years. Meanwhile, research rather than time and location-based is real opportunity for the app in the from IHS predicts that smartphones promotions, according to Upstream. US where 50% of the 150.2 million will make up a 54.5% share of the The mobile marketing firm surveyed Facebook users already access the mobile market by 2015. The firm 2,000 American adults and discov- social network via their mobile. Of forecasts global smartphone ship- ered that a further 17% preferred those mobile users, over 48 million ments will hit 1.03 billion sooner time-based promotions, while only Facebook mobile users access via than Juniper, in 2015, up from 478 14% favored receiving promotions iPhone or Android devices. Facebook million smartphones in 2011. based on their location. Upstream is yet to reveal any plans to roll out also asked respondents which this service to BlackBerry devices. Marketing and advertising mobile advertising channel would most likely lead to a greater interac- $900 worth of free apps for Priority Moments supercharges tion; smartphone users indicated Android users offers from big brands that mobile coupons were the most Amazon has given away over 100 O2 has launched a supercharged effective, followed closely by opt-in apps between the end of March and version of their Priority Tickets, text messages, email received on a the end of June, with each app hav- which turned the operator into the mobile phone, mobile website ad- ing an average retail value of $2.36. UK’s biggest sellers of gig and event verts, and internet search adverts. This would see a potential customer14
    • saving of $238 in this quarter, oraround $900 over a one year pe- their device while watching TV. This, coupled with the rise in social me- Commerceriod. Meanwhile, AndroidTapp has dia, is creating an opportunity which 25% of smartphone users turnrevealed that 72% of US users who MIG has dubbed ‘Social Participation to mobile bankingdownload Amazon’s Free App of the TV’. 67% of people surveyed for the A survey revealed that a quarter ofDay then go on to spend $1-$10 per research said that the internet is the British smartphone and tablet usersmonth in the Amazon App Store. ideal way to interact with TV shows, are embracing mobile banking due57% of the apps bought by consum- with 50% of those stating that Face- to its ease of access, yet many areers are games, many of which are book could be used to purchase and still worried about security. The sur-featured on Amzon’s increasingly use P-TV services such as voting. vey of 1,028 smartphone and tabletpopular Test Drive, allowing con- users conducted for Antenna bysumers to try the app out on their Featurephone apps to make YouGov, discovered that 25% man-computer before buying. $1billion by 2016 aged their finances through mobile Predictions from Ovum claim that banking services. However, securityP-TV and social media could revenues from featurephone apps fears are still preventing many peo-generate $2.9 billion will rise to $1 billion by 2016. The ple from using the service, but lessMobile Interactive Group claims figures from Ovum’s latest market so for younger consumers who wantthat there is a new opportunity to report claims that featurephone to complete transactions quickly.combine participation TV services apps are becoming easier to pro-and social media to generate $2.9 duce and publish. It also points Vodafone implements operatorbillion globally by 2016. The white out that there is still a big market billing for Androidpaper research on trends and op- outside of the smartphone user Vodafone has launched an operatorportunities in participation TV (P-TV) base. However, mobileSQUARED fore- billing system for Android Market inservices highlights how broadcast- casts a 50% population penetration the UK and Germnay, and will roll iters should adopt a multi device and of smartphones in the UK alone by out globally. This provides opportu-platform approach for interactive the end of this year. This figure has nities for developers to access theTV shows, such as Big Brother and risen almost 200% from the end of proportion of consumers who do notStrictly Come Dancing, to ensure 2009, to around 32.5 million. Mean- wish to provide card details which,maximum viewer reach and en- while, featurephones in the UK mar- Vodafone states, can be over 90%gagement with the programme. ket will fall about 26% by the end of the market in some countries.The research revealed that 40% of of 2011, according to mobileSQUARED,British mobile consumers are using from 68 million in 2009. caroline@mobilesquared.co.uk www.mobilesquared.co.uk
    • data point Healthy downloads: Apps consumed at faster rate than nation’s favourite burger The world may love hamburgers, updating its signs back in 1994 the 15 billion mark about 9x faster but according to Sybase, it loves when it was nearing 100 billion than McDonald’s. And based on apps even more. When Apple an- burgers, saying it had better things projections, Apple could hit 100 bil- nounced that its App Store had to do (invent McRib sandwiches?). lion within five and a half years, or reached 15 billion app downloads It took Maccy Ds almost 26 years to about 9x faster than McDonalds. after 3 years of operation, Sy- reach 15 billion burgers sold, and base wondered if that was faster about 46 years to hit 100 billion. However, Google’s store might hit or slower than the Gold Standard 100 billion downloads as early as for Incredible Growth, McDonald’s Both Apple and Google are pro- April next year, according to Sybase. hamburgers? jected to deliver 100 billion down- The company says the gap between loads in a fraction of the time it Apple and Google, and the rest of McDonald’s signs used to read “bil- took McDonald’s to serve 100 billion the mobile field, appears to be wid- lions and billions served.” It stopped hamburgers. That means Apple hit ening not narrowing It’s an app, app world16
    • company profile Directory app Poynts beyond the USThe development of location and and Toptable in the UK to provide started, from a very granular per-the use of GPS on smartphones has online restaurant reservations, spective,” says Sklar.opened up a whole new realm of reviews and listings within the app.advertising possibilities within the Ad networds Adfonic in the UK and Poynt’s journey from legacy hand-mobile market, and one company Navteq in the US also played a part sets to smartphones has seen itwhose business plan rests solely on in creating the directory of busi- now incorporate features suchthis technology is the Poynt Corpo- nesses which led to 1 billion con- as augmented reality in the app.ration. The Canadian company have sumer queries by March 2011. Poynt 360 uses the compass anddeveloped a comprehensive local mapping feature within a smart-directory app which connects users “In total, in the month of April, phone to list searches with pinswith local businesses, retailers and we had roughly 2.5 million UK drops on the map. When openingevents dependent on their location. searches, which illustrates that the the camera, Poynt arrows on the growth has been part of an expand- ground direct users straight to aDescribed as an ‘entertainment ing global footprint” says Michelle location, while tabs appear on theand utility tool’, the app has seven Sklar, director of PR and marketing location that, when clicked, linkfeatures including businesses, in Europe. “The average customer in directly to the listing.people, movies, events, gas prices, Europe uses the app 10.9 times in arestaurants and weather – although month, and our power users (2.5% “Our iPhone users love it. In fact thein the UK this is limited to events, of the user base) use the app about idea for Poynt 360 came from a userrestaurants, businesses, movies and 68 times a month, practically twice after we ran a contest early lastweather. The company provides a a day,” claims Sklar. summer. People purchase iPhonessolution to the increased demand because they like the bells andfor on-the-go information requests, However, Poynt’s influence out- whistles of the iPhone, but how doand also boast behavioural data of side of the US is very limited, with you actually enable that technol-consumer intent, such as clicking to only 200,000 users in the UK and ogy to have a function in real life,”call and mapping directions. a further 36,000 in the rest of says Sklar. “Poynt 360 is a great Europe - France, Italy, Germany showcase for augmented reality andOver the last quarter Poynt has and Spain. Although growth in us- iPhone users access it frequently.”integrated and used viral media age of the app has led it to becomeextensively to promote the app by preloaded on some handsets in the caroline@mobilesquared.co.ukallowing customers to ‘share’ Poynt US, and it recently launched in thewith friends and publish their loca- UK with Virgin. Company: Poynt Corporationtion via Facebook and Twitter. This President and CEO: Andrew Osisviral advertising has proved pow- The app was first launched on lega- Founded: 2002erful in helping its expansion into cy handsets in 2002, allowing users Headquarters: Calgary, CanadaEurope and Australia, while hoping to conduct a basic search of key Employees: 11-50to roll out to India shortly. words and post codes. The company Specialities: Location-based services, was initially courted by Microsoft, mobile applications, local advertising solutionsThe business model - which is based but it was not until after winning Awards: Blackberry Super Apps De-on user queries, page views, adver- the Blackberry Developer Challenge veloper Challenge 2010, Most Innova-tising and transactions within the in 2009 and then the Super App tive Consumer Application at GSMA’sapp – has seen a 178% revenue Challenge in 2010, that Poynt truly Mobile Innovation Grand Prix EMEAincrease and a significant drop of gained the limelight. Tournament 2009, BlackBerry Alliancenet loss on last year. The company Program’s EMEA Innovation Award inhas also increased its user-base “The BlackBerry smartphone was the Life on BlackBerry category 2009,from 2.5 million to 8.5 million as really where the device and the user BlackBerry Developer’s Challenge Grand Prize 2008of the end of June 2011 – a 240% were in the best position. There Announcements: Poynt Corporationincrease in less than a year. was a major adoption on BlackBerry Engages Liolios Group to Lead Inves- smartphone, as business travellers tor Relations Program. Poynt PreloadedPoynt has also entered a number of who were using their devices for on Virgin Media in the United Kingdom.partnerships with companies includ- more than to call, but to text, email Poynt for Windows 7 launches in Ger-ing, Thompson Local, Cinemasource, and search. So that’s how we got many, Italy, France and Spain www.mobilesquared.co.uk 17
    • white paper Mobile payment and crediting: enabling better consumer engagement M-commerce is big business in the quick, simple and secure micropay- saying that it would actually be a UK with approximately 18.8 million ments which are either added to disincentive to them purchasing on- mobile consumers now purchasing their monthly bill or deducted from line goods or services through their physical goods and services online pre-pay credits. Users do not have mobile. A total of 17.5% ‘strongly via their mobile phones, according to be pre-registered with payment agreed’ that it would be a disincen- to the most recent consumer trends providers such as Paypal, or input tive, while 36.2% ‘agreed’ that it data from mobileSQUARED. At the same credit/debit card information via would be a disincentive. time, however, only around 20% of their mobile phone. ‘Payforit’ is the the UK’s top retailers have a mobile- standard in-app, WAP and web pur- optimised version of their website, chasing solution for operator billing meaning that many brands are in the UK and is supported by all the missing out on the opportunity to major operating groups. properly engage with this burgeon- ing market and boost revenues. Key findings from a survey of 1000 people conducted by Many retailers are also not making mobileSQUARED for OpenMarket use of micropayment solutions for show that 67% of respondents smaller transactions up to the value said their main concern was hav- of £10 – a level at which many ing confidence that they would be mobile consumers make spontane- charged correctly for the transaction ous decisions to purchase. Although and any personal details would be credit card fees are relatively low, secure, while almost 55% thought around 4% of the transaction value, that providing credit/debit card the timely process of inputting the information through their mobile credit card number, expiry dates phone was a disincentive to making and address details would likely dis- a mobile purchase. suade many mobile consumers from continuing with, or repeating, the process. The potential for m-commerce in the UK is enormous. According to The Internet Advertising Bureau MobileSQUARED’s Mobile Consumer (IAB) last year published research Trends database, there was a total saying that 31% of UK consum- of 16.89 million m-commerce users ers who made a purchase via their in the UK at the end of 2010, equiv- mobile device did so due to an alent to 21% penetration of the to- impulsive decision, while 25% liked tal 81.04 million devices in market. the experimentation factor of pur- More importantly, however, 6.13 chasing via their mobile phone. The million mobile consumers said they ‘on-the-move’ spontaneity of mobile did not make transactions above the dictates that checkout processes for value of £10 through their mobile any low-cost transactions should be phone – highlighting the explicit op- equally quick - with a minimum of portunity for the mobile micropay- ‘clicks’ and input screens. ment market. Mobile Payments Quick, simple and secure pay- Mobile network operator billing is a This weight of opinion behind ac- ment mechanisms such as ‘Payforit’ simple, quick, reliable, secure and curacy and security indicates that therefore enable brands and retail- easy to implement set of solutions mobile consumers are less wor- ers to reach this segment of the (incorporating PSMS, Direct Op- ried about recognising the ‘Payforit’ m-commerce universe, while also erator Billing and ‘Payforit’), that brand, or using more established allowing them to initiate conversa- enables micropayments by charg- names such as Paypal, or online tions with the consumer through ing transactions to a users mobile payment sites verified by credit or mobile marketing campaigns, such phone account, either as an addition debit card issuers, as they are about as mobile crediting. Although mobile to a monthly contract, or as a de- trusting that the payment mecha- may still not be a significant rev- duction from the pre-pay balance. nism itself is robust. enue stream for most retailers, it is increasingly being used as a The standard in-app, WAP and web In fact, there was an overwhelming marketing channel to engage with purchasing option for operator bill- reluctance to supply credit or debit customers and boost demand either ing in the UK is ‘Payforit’ – which card information via the mobile in store, or online, while building an allows mobile consumers to make phone with 53.7% of respondents opted-in mobile database.18
    • Mobile crediting from the same brand in the future, ConclusionMobile crediting is increasingly while 21% said they would view the The opportunity for brands andseen as a key component of mobile brand more favourably. retailers to use operator billing as amarketing to motivate consumers method of driving revenues throughto engage with goods or services micropayments is enormous. Micro-and engender brand loyalty. Mo- payments not only offer ease of usebile crediting can help drive brand for the consumer, overcoming therelationships with their customers, resistance to buy online via credit/influence purchase decisions and debit cards, but also provide the op-drive ‘talkability’ around a brand or portunity to leverage approximatelyproduct. It is also an innovative way 81 million devices in the UK to addof building a mobile opted-in data- revenue for a range of online goodsbase for future interaction around and services.new or repeat campaigns. The IAB claims that 37% of mo-Mobile marketing initiatives such as bile phone users have purchasedmobile crediting provide a low-cost a service or product direct to theirmechanism for rewarding consumer mobile phone account. Within that,loyalty while driving sales, increas- 32% paid for downloaded content,ing brand perception, goodwill and 21% used a shortcode to pay fora willingness to engage with the a products or services, while 13%brand in the future. The consumer entered a phone number to payengagement is simple: for a product or service. Moreover, around 23 million people are now•Offer an incentive to customers, using their mobile phones to eithersuch as free credit applied automat- make payments, research productsically to their mobile bill when they and services or redeem coupons andmake a purchase discount codes – thereby enabling•Provide a redemption code and call The results show that mobile credit brands and retailers to use mobileto action is an incredibly effective technique as a direct marketing channel too.•The appropriate mobile credit is for brands to build perception, loy-then applied to the customer’s pre- alty and engagement with their cus- Mobile credit is an excellent mecha-pay or post-pay mobile operator tomers. In fact, 75.6% of respond- nism for brands to open a directaccount when the code is used. ents indicated a positive response communication with a consumer to brands offering mobile credits as as it provides with impetus for theFor example, in 2009 and 2010 part of a promotion – either directly customer to actually contact theCoca-Cola ran campaigns called affecting revenue or goodwill. brand – not vice versa. If the brand‘Gimme Credit’ targeting British is smart, it will capitalise on thatteenagers with the offer of a 50p A total of 30.6% said they would opportunity and develop an opt-inmobile credit on tens of millions of actually be ‘more likely to buy’ the database to ensure an ongoing rela-cans and bottles of Fanta, Sprite brand’s products or services in the tionship with the consumer.and Dr Pepper. future, 20.8% said they would ‘view the brand more favourably’ in the As we have already seen, over threeConsumers texted a unique redemp- future, while 17.7% said they would quarters of survey respondents indi-tion code from the packaging to a ‘recommend the promotion’ to a cated a positive response to brandsfive-digit short code, with the credit friend. A further 6.5% of our survey offering mobile credits as part of athen being applied to their mobile respondents would be happy for the promotion – either directly affectingpre-pay balance or post-pay ac- brand to contact them with other revenue or goodwill, while nearlycount. Jude Brooks, Coca-Cola’s promotions in future. two thirds said that they wouldinteractive manager, said ‘Gimme either buy, or be more likely to buy,Credit’ was one of its most success- products offering mobile credit asful campaigns in terms of engaging part of a promotion.with users. “Coca-Cola wouldn’t beinterested in just buying a list of If used effectively, an opt-in da-names and then sending out a load tabase can become a very power-of messages,” she said. “If it’s an ful ally for brands to disseminateopted-in list for people who want to contextualised and relevant brandreceive messages then why not use messages to the consumer. Click-it? SMS is good as a marketing tool through rates on messaging averagebut not necessarily as an advertis- over 25%, and can reach 60-70%,ing tool.” therefore offering the potential of becoming a very effective marketingOver 60% of respondents surveyed and sales channel.for OpenMarket said they would bemore likely to buy a product offer-ing mobile credits, versus a similar ------------------------------------competing product. Moreover, al-most 31% said they would be more To download the White Paper in fulllikely to buy products or services please visit www.mobilesquared.co.uk www.mobilesquared.co.uk 19
    • guest column The rise and rise of mobile devices by Matt Isaacs, CEO, Essence Smartphones have become such a purpose-driven, consumers are not egy? With so many routes to market ubiquitous part of popular culture aimlessly browsing the internet on available and an ever-increasing that it’s hard to remember that the their mobile devices as much as number of communications chan- original iPhone was only launched in they do on a PC or laptop, and they nels, it would be foolish to say 2007, a mere 4 years ago. Without are often searching for something that any one channel should be the wanting to sound too dramatic this specific. This has an immediate leading factor in a marketing launch signalled a huge shift, not impact on marketers and digital strategy. just for the handset manufacturing advertisers and it is important to industry, but for the whole world. ensure that key user journeys are Mobile marketing is finally com- optimised for mobile use. This is ing of age and is only set to get But what does it mean for the why mobile applications are be- bigger. The next big thing on the marketing industry, which has been coming increasingly popular at the mobile agenda is near-field com- inundated with digital developments moment as it allows brands to strip munications. Similar to how brands over the past few years? As with back their website and present it in have had to react to the increasing any inventive development there a new, more accessible format. importance of social networks in is the temptation to jump on the people’s lives by introducing social bandwagon and create ‘industry- There is currently an interesting in- commerce to help reach their audi- first’ campaigns utilising the new dustry debate about the benefits of ence, brands will look to find ways technology. And these campaigns apps v. mobile-optimised websites. to use mobile for NFC; for example can be brilliant and impactful but, And there are benefits to both; apps contactless payment and receiving in my experience, they are short- allow brands to gain a permanent vouchers for your favourite shop as lived; most of their value is in the presence in the hands of their con- you walk past will become the norm. wow-factor of being new rather than sumers that can be hugely powerful, Consumers also spend a significant in supporting the brand’s long-term while having a web-optimised site proportion of time accessing social strategy. However, it is clear that allows you to reach a potentially networks via their smartphones, the advances in mobile technology wider audience and connect with meaning that soon the social web are here to stay; the challenge and consumers that might not be as fa- and the mobile web will merge into opportunity is how we harness this miliar with your brand. It is hard to one and social commerce will look real-time, anywhere connectivity. say which way the industry will go to target consumers through their on this. Apps are big business and phones with offers that are relevant Smartphones are increasingly ac- can deliver more wow factor than to their real-time surroundings. cessible to consumers in terms of a mobile-optimised site, however, Ultimately the popularity of Smart- cost and many people are using both channels are equally impor- phones has been borne out of the them as their primary point of ac- tant and the relative merits of each real-time convenience that they cess to the internet. This means should be considered on a case by offer, and it is this feeling of conven- that consumers are interacting with case basis. ience that marketers need and consuming online content in to capitalise on. a different way. Key to this is the So, should marketers be putting fact that the mobile web is often mobile at the heart of their strat- matt.isaacs@essencedigital.com20
    • www.mobilesquared.co.uk
    • Roadshows Inspiring brands to communicate with the mobile consumerRoadshows 3 events to shape your mobile future access: mobile — Permission-Based Marketing, London, Oct 3rd in association with the access: mobile Europe, London, November 9th / access: mobile US, New York, December 7th access:mobile Europe & US agendas cover: Utilising augmented reality; Building a successful long- life app; The best mobile strategy ever; Understanding the mobile consumer needs; Impact of HTML5; The top 5 mobile sites; The impact of mobile advertising on your brand; Location-location-location; Mobile media interaction and broadcasters; Social media: connected 24/7; How mobile worked for our brand; Publishing on multi-mobile- platforms; Making mobile technology work for your brand; Using coupons to deliver a value exchange; Making the mobile transaction; The Great Mobile Interaction debate, PLUS interactive workshops and extensive networking. Speakers from: Qualcomm, Endemol, Smaato, AT&T, The History Channel, Museum of London, Golden Gekko, Eagle Eye, Somo, Velti, Mediacom, Sponge, Adfonic, O2, mobileSQUARED, MIG, The Daily Mirror, Orange, SinglePoint, 3M, MTV, Buzzcity, Digital Sunray Media,... more speakers to be announced. access: mobile — Permission-Based Marketing covers: An exemplary example of opt-in marketing; PBM made easy; Building a business model for brands; Generating a 25% response rate; How to manage a PBM database; Getting the consumers’ permission; The opt-in opportunity; Marketing to 100% of devices; Generating ex- ceptional content; How location can drive PBM; The app opt-in; Operators to dominate PBM?; Educating consumers Speakers from: Alcatel-Lucent, Velti, IMImobile, MMA, Blyk, OpenMarket, Thomas Eggar, Somo, Mobext, BBC, mobileSQUARED, Interflora, O2, MIG, On Device Research ... more speakers to be announced. Sponsors RESEARCH PARTNER Visit www.mobilesquared.co.uk for all the latest access: mobile agenda & speaker news