Tanla Mobile Marketing & Advertising Guide 2008
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Tanla Mobile Marketing & Advertising Guide 2008

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A comprehensive guide to Mobile Marketing and Advertising written by Helen Keegan in late 2007 on behalf of Tanla Mobile and launched at Mobile World Congress, Barcelona in Febuary 2008. The guide ...

A comprehensive guide to Mobile Marketing and Advertising written by Helen Keegan in late 2007 on behalf of Tanla Mobile and launched at Mobile World Congress, Barcelona in Febuary 2008. The guide also includes articles and essays by Tomi Ahonen, Russell Buckley, Jessica Sandin, Gillian Kennedy, Dr Mike Short, Anuj Khanna, Ben Tatton-Brown, Daniel Appelquist, Jeff Spirer, Steve Flaherty and Gerry Drew.

The font size is very small - apologies in advance - you'll need to adjust that before you print it out.

It also needs updating to accommodate what's happening today with regard to mobile internet and the impact of the iPhone. Anyone want to sponsor me to do that? Get in touch!

The guide isn't perfect by any stretch of the imagination, but it should give you a good overview of the world of mobile marketing, advertising and media, a wide variety of viewpoints and lots of case studies to consider.

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    Tanla Mobile Marketing & Advertising Guide 2008 Tanla Mobile Marketing & Advertising Guide 2008 Document Transcript

    • Tanla Mobile Marketing and Advertising Guide
    • The Tanla guide aims to give you a comprehensive view of the opportunities presented by mobile marketing and advertising. The report has been compiled by Tanla Mobile, powered by opinion articles from leading industry thought leaders and edited by mobile marketing expert Helen Keegan.
    • You want to be different Just like your customers We can help you differentiate Tanla Mobile can help you maximise your content’s potential and differentiate your brand by providing customised mobile applications, interactive media platforms, integrated content management, messaging and mobile payments solutions. From text messaging to video calling we can create a mobile channel for you. Call us today to get the most from your digital content. UK: E: sales@tanlamobile.com T: +44 (0) 20 7494 5600 US: E: sales-usa@tanlamobile.com T: +1 (0) 212 786 7539 India: E: sales-india@tanlamobile.com T: +91 (40) 4009 9999 Interactive Content Bespoke Mobile Applications Management Development Payments Campaign Manager CMS Platforms Project Management Premium SMS Billing Interactive TV UGC Applications Technical Consultancy WAP, Voice & MMS Video Calling Community Portals Software Development Global Messaging www.tanlamobile.com
    • Tanla Mobile Marketing and Advertising Guide © 2008 www.tanlamobile.com
    • CONTENTS 2008: The Year of Mobile Marketing and Advertising: N.V. Subba Rao, CEO Tanla Mobile Inc 9 The Global Mobile Market: Gautam Sabharwal, Director Global Business Development, Tanla Mobile 13 Mobile Emerging as 7th Mass Media: Tomi Ahonen, Author & Consultant 19 A Brief History of the Mobile Phone 27 Developments in Mobile Technologies 28 Why Mobile is Important 29 Mobile Marketing Past, Present and Future: Russell Buckley, Managing Director Europe, Admob 35 Thoughts For Marketers On The Values Around New Digital Media Opportunities: Gillian Kennedy, Managing Director, Emerging Media Platforms Ltd 39 Mobile Has Always Been All Inclusive: Mike Short, Vice President R&D, O2 Europe 43 Mobile Marketing & Advertising 48 What is Mobile Marketing and where does it fit in the Marketing Mix? 48 The 5 Cs of Mobile = Connectedness 48 Creating Mobile Moments 50 The Mobile Marketing Value Chain 51 Different Types of Mobile Marketing Campaigns 52 Text to Win 52 Voting and Participation TV 52 Quizzes 52 Mobile Content [pictures, ringtones, video] 53 Games 53 Applications 54 CRM 54 IVR 54 MMS 54 Direct Response 54 Mobile Barcodes 56 QR Codes 56 Java or On Device Portal [ODP] 58 Mobile Marketing Challenges 58 Technology Constraints 58 Marketers and Mobile Marketing 58 What do I Measure 59 Campaign Planning 60 Permission Marketing 60 Running a Successful Campaign 63 Production and Fulfilment 65 Technical Project Management 65 Outbound Campaigns 66 6
    • From Hand to Eye, Mobile Marketing gets Co-ordinated: Anuj Khanna, Head of Marketing, Tanla Mobile, UK 69 Mobile Search 71 A Question of Search: Can Web Search Supremacy Translate to Mobile? Ben Tatton-Brown, Head of Advertising Sales, EMEA, Medio Systems 75 Music and Mobile 80 Podcasting 81 Moblogs 81 RSS 82 Bluetooth/Infra Red 83 Business Models in Mobile 85 Ad-Funded Content 85 Mobile Advertising 86 Sponsored SMS 87 Selling Your List 87 Sponsored Content 88 Off The Page Promotion 88 Subscription Model 88 User Generated Content 88 Wholesale 88 Retail 89 Don’t Have a Business Model 89 Social Networking Will Drive the Next Wave of Mobile Commerce: Jeff Spirer, Vice President Mobile Internet, Tanla Mobile Inc 91 Mobile TV – Are We Nearly There Yet? Steve Flaherty, Mobile Consultant, Keitai Culture 95 The Mobile Web, Beyond Best Practices: Daniel Appelquist, Senior Technology Strategist, Vodafone 99 Limited Use of Mobile Content Provides Advertisers With An Opportunity To Go It Alone: Jessica Sandin, Head of Mobile & Senior Consultant, Fathom Partners 105 A Brave New Future for Mobile: Gerry Drew, Chief Operations Officer, Tanla Mobile, UK 109 Appendix 113 Emoticons 113 Glossary of Terms 115 Events and Networking 120 Further Reading 121 Magazines (Print) Covering Mobile Topics 121 Blogs 121 Acknowledgements 123 Sources and References 125 7
    • 2008: The Year of Mobile Marketing and Advertising: N.V. Subba Rao, CEO Tanla Mobile Inc N.V. Subba Rao is the CEO and President for Tanla Mobile Inc (USA) and is also responsible for expanding business operations for Tanla Mobile across Asia. Subba joined Tanla Mobile in July 2007 from Bharti Airtel Ltd where he last held the position of Chief Operating Officer. He has over 20 years industry experience, working with blue chip telecommunications and FMCG brands including Bharti Mobile, Tata Tele, Proctor & Gamble and Agro Tech Foods Ltd. 9
    • 2008: The Year of Mobile Marketing and Advertising Is not life a hundred times too short for us to bore ourselves? ............... Nietzsche If there is one industry that has taken the above quote to heart, it is the mobile marketing industry. It continues to seek new opportunities and perspectives to better connect with today’s evolving requirements for technology enabled communication and lifestyle marketing. Possibly Alexander Graham Bell didn’t imagine beyond traditional voice based communication when he invented the telephone, yet it was a true ‘Eureka’ moment. From that perspective mobile and converged communications is a revolution in the making, yet it doesn’t seem to evoke the same ‘Eureka’ feeling. This is because the mobile phone is no longer ‘outside of us’. It is now very much a part of us - becoming an expression of freedom, personality, lifestyle and entertainment; as well as a lifeline for enabling faster data access, cutting across the various enterprise verticals and customer segments. To borrow a Proctor and Gamble corporate slogan, mobile ‘continues to touch lives and improve life’ possibly more so than any other product or service before it. You can use a mobile device to reach directly into the mind of the consumer and subsequently change their behaviour. What could be a more powerful medium in today’s society, for mass, one-to-one and contextual marketing – the 7th mass media as some pundits describe it! The industry is on the cusp of a new era of mobile and integrated media consumption, encompassing a myriad of real and virtual social networks, web sites, devices and products/ services for commercial consumption, while creating new storefronts defined by the industry domain. New dynamics unfold on the sector almost every day, be it via announcements from Nokia, Google or Apple or the numerous bodies across UK, USA, India, S. Africa and Asia who are all working to create platforms that enable easier, faster and better integration and monetisation of content (almost to Thomas Edison’s logic of “Hell, there are no rules here – we’re just trying to accomplish something”). Walls have come down and new windows have come up. Applications, client server models, style sheets, web sheets, browsers, payment mechanisms, ad serving engines, text advertising, campaigns, contests, promotions and web stores: these are just the tip of the marketing frenzy to create more direct and personal connect with customers across all psychographic, socio-economic and business indices. From a marketing perspective, 2008 will give rise to a number of questions concerning mobile marketing. Namely, how it will become - even better at browsing/ search - a simpler way to make payments/ facilitate commerce - a more integrated medium for marketing and advertising - more effective for social networking/communication - more exciting for integrating new user generated content 10
    • These, and many other questions related to the mobile ecosystem, will help better define new marketing and advertising formats and firmly establish the dependencies for those formats. Today, more than ever, the marketing and advertising industry is witnessing the need for significant change. Traditional marketing models are often criticised in the boardroom, with questions asked regarding ‘Does your marketing work’, ‘Where is the consumer in all this’, ‘Is brand marketing relevant any more’, etc. The mobile phone represents one of, if not the, most important marketing opportunities in the last century for two key reasons: 1. The mobile phone is very personal both in terms of how it expresses who we are, but also the ways in which it is used – who am I ?/ what do I do?/ what can I do? 2. As a result of how its infrastructure has evolved, mobile offers many unique opportunities for the advertiser. These include accurate and relevant targeting, rich data on usage and consumer behaviour, higher response rates and flexible, cost effective commercial models. The net result is a more rewarding and interactive relationship with the customer, and overall better brand indices. Thomas Friedman’s powerful metaphor (and book), that the ‘world is flat’ is a truly inspiring way of looking at the forces that are stitching the present wireless and software enabled world. I trust all mobile enthusiasts enjoy reading this guide and discover the many benefits mobile marketing and advertising can bring to both businesses and brands in a ‘flat world’, The new mobile platforms are not just an expansive but also an inclusive medium, that not only makes marketing and advertising cost effective but also more personal and relevant. Compared to traditional marketing and advertising, mobile possibly offers ground for more significant developments for large brands and enterprises to better connect the dots! Wishing you all a more Mobile 2008! N.V. Subba Rao CEO Tanla Mobile Inc 11
    • The Global Mobile Market: Gautam Sabharwal Director Global Business Development, Tanla Mobile Gautam Sabharwal is responsible for Tanla Mobile’s global business development, sales and marketing. An expert at market visualisation, approach strategies and sales initiatives, he brings with him in- depth knowledge of the Telecom Services Industry. His experience includes several years running successful businesses in the emerging telecom services markets of Europe. His long-term strategy planning, along with knowledge of Tanla’s core businesses, is instrumental in steering the company in the right direction. 13
    • The Global Mobile Market New Players Bring Change to the Mobile Sector Throughout the short history of mobile there have been numerous - too many some will say – innovations, milestones, developments and advances promising to change the mobile industry for ever. 2008 will see the emergence of the new mobile world-order, namely the influence of ‘traditional’ internet brands as new and powerful entrants to the mobile sector. They will bring with them established models and approaches to marketing and advertising, amongst other things, that will change the landscape and consumer mobile experience for ever. The impact of developments such as the iPhone is significant and its arrival marks an important turning point. The iPhone has made the mobile internet become a competitive driver for handset manufacturers and operators alike, while forcing others to review OS and device simplicity. The future growth of the mobile marketing sector is dependent upon two traditionally disparate sectors collaborating, the mobile and the media industry. But the real growth potential for mobile will come as a result of brands such as Google, Yahoo and MSN securing their place at the new mobile table. Combine these factors with the fact that operators increasingly offer fixed rate data charges, this all means the opportunity for mobile marketing is here and now. Mobile advertising will be constrained unless Mobile advertising users constrained unless users have unlimited data plans. will be have unlimited data plans Strongly disagree 3% Disagree Strongly agree 12% 26% Somewhat agree 34% Agree 25% Mobile Content Industry SurveySource Survey, Mobile Advertising Services Report 2006, Source: 2Q06 Mobile Content Industry Informa Telecoms & Media 14
    • The Predictions Research Film Prediction Comment eMarketer USA: $421m in 2006 to $4.7bn by 2011 Mobile advertisment only WW: $11.3bn by 2011 Yankee Group USA: $40m in 2006 to $2bn in 2010 Mobile advertisment only Ovum USA: $46m this year to $1.3bn in 2010 Accounts for text delivery advertising only Strategy Analytics USA: 17% of total online ad spending by 2010, SMS and display advertising while browser based advertising will claim the greatest share with 44% Jupiter Research USA: $2.1bn in 2011 ABI Research WW: $19bn by 2011 Mobile marketing and advertising combined Informa Telecoms WW: $1.5bn by the end of 2007 to $11.5bn by Mobile advertisment only and Media* 2011 Shosteck Group WW: grow to $9.6bn by 2010 Mobile advertisment only *Correct as at September 2006. While predictions do vary, the overall message is one of growth for mobile advertising in all key territories. Mobile Advertising US Spending Projection, 2006-2011 (US$m) 5000 4356 4500 4000 3500 3202 3000 2500 2285 2000 1547 1500 878 1000 410 402 500 213 11 26 55 110 0 2006 2007 2008 2009 2010 2011 General Mobile Ad Spending Mobile Multimedia Ad Spending Source: eMarketer January 2007 15
    • Which Territories are Seeing the Biggest Growth? Welcome to the new players in the market. India, China and Asia are amongst the new battle grounds; with China already having more mobile users than the US. Across these regions there is a common vein, many consumers own or prefer purchasing a Smartphone over a PC. So the trend toward mobile content is high. With wealth increasing in these territories, mobile advertising revenue in these emerging markets is expected to be a major contributor to the overall global market. An Appetite to Receive The changes brought about by the new mobile world order will benefit the mobile marketing business case. The application of knowledge and techniques applied in the internet space will allow brands to opt for and better measure mobile as a viable channel. Also, consumers will increasingly show a willingness to receive advertising on the device. How willing will consumers be to receive advertising How willing will consumers be to receive advertising in exchange for cheaper mobile content? in exchange for cheaper mobile content? 50% Not at all willing Fairly willing 45% Somewhat willing Willing 40% Extremely willing 35% 30% 25% 20% 15% 10% 5% 0% Music Games Mobile TV Idle Screen UCG/ SMS/MMS & Video Communications Source: Mobile Content Industry Survey Informa Telecoms & Media Source: 2Q06 Mobile Content Industry Survey, Mobile Advertising Services Report 2006, Informa Telecoms & Media 16
    • Critical success factors According to Informa’s MOBILE ADVERTISING SERVICES research, there are four factors that will influence the mobile advertising market. Regulation - of mobile content, broadcast networks for the delivery of mobile TV, as well as for the advertising techniques for the mobile channel, such as codes of conduct for SMS messaging. Digital Rights Management (DRM) - is about the ability to have a clear view of who owns what content and exactly what can be transferred across a mobile network. Monitoring and measurement - if mobile advertising is to succeed than the critical element will be the ability to capture data on mobile campaigns. Pricing - the chicken and the egg debate. Will consumers pay for network time to receive adverts or will they receive adverts to get free network air time? 17
    • Mobile Emerging as 7th Mass Media: Tomi Ahonen, Author & Consultant Tomi T Ahonen is a four time best-selling author and strategy consultant who lectures at Oxford University on digital convergence. Tomi’s reference customer list reads like the who’s who of mobile telecoms, including Ericsson, Orange, Motorola, Nokia, NTT DoCoMo, TeliaSonera and Vodafone as well as leading media and advertising giants. Tomi’s fourth bestseller “Communies Dominate Brands” was hailed as a landmark book on old media and interactivity, user-generated content and engagement. Tomi regularly runs workshops and seminars for leading media customers around the world. He chaired the world’s first mobile advertising conference in 2001, presented the mobile keynote to the Periodicals Publishing Association, and to the Media in Motion event in 2004, etc. A founding member of Engagement Alliance, Forum Oxford, Wireless Watch, and Carnival of the Mobilists, Tomi blogs at www.communities-dominate.blogs.com. His website is www.tomiahonen.com 19
    • Mobile Emerging as 7th Mass Media The Mobile Phone has emerged as the 7th Mass Media channel. It is as different from the internet [6th Mass Media] as TV [5th] is from radio [4th]. Trying to force concepts from the internet, TV, or other previous media will produce a disappointing audience experience on mobile. But understanding the unique power of mobile as the 7th Mass Media will deliver radical new concepts and new winners. Most of the media experts, including many even in new media, do not understand mobile. It became a mass media first in Japan just seven years ago, and until recently was mostly dismissed as a youth text messaging and viral marketing channel only. Yet the economics of mobile produce enormous opportunities. Three times as many people have mobile phones than have personal computers. Twice as many people have a phone subscription than a credit card, more households have mobile phones than TV sets. And most importantly, the mobile phone can replicate all of the previous mass media with six unique benefits, which is why already 588 million people consume premium content such as news, TV, entertainment and games on mobile phones in 2007. During 2008 more people will access internet content on phones than on the web. This is no mere sci-fi fantasy of technology buffs; it has already happened in Japan, South Korea, China and Taiwan. Not the first time there’s been a new mass medium First Four Mass Media. The traditional mass media are well known and established with known formats. News and weather work on radio, long-form stories in books and cinema; videogames work well on recordings etc. Print is the oldest, from the 1500s, it introduced the buy-to-own business model for books and introduced advertising and subscriptions to newspapers and magazines. Recordings [late 1890s] introduced performance media separating the creative element [the writer/composer] and the performer with the global performance celebrity star, such as Edith Piaf, Elvis and the Beatles. It is possible to consume books and printed content on recordings, yet recordings did not destroy the print industry; rather it built a whole new parallel media industry worth 30 billion dollars today. Cinema [1900s] turned celebrity into superstar with the first global icon, Charlie Chaplin. 21
    • Cinema introduced moving images and multimedia content and the pay-per-view business model, ie you had to pay every time you viewed a movie. Many thought cinema would kill books; rather Hollywood built another new industry worth 30 billion dollars at the box office, and another 20 billion in after-sales products like video rentals, DVD sales etc. Radio [1910s] brought the broadcast model with a ‘streaming’ approach to content delivery - if you were not there to listen, you missed the content; mass market recording of radio [the C-Casette] would not appear until 50 years later. Radio was the first pervasive medium meaning it was omnipresent nationally and if content was broadcast, it was received simultaneously by all. TV the fifth mass media [1950s]. The most dominant mass media for the past 50 years has been television, yet TV didn‘t really introduce anything new! While each of the previous four mass media brought innovations, TV did not, yet in spite of this ‘deficiency’ TV soon dominated all others. We had multimedia in the cinema, and broadcast in radio, TV only combined those. TV soon took over the news from cinema. It took over much of the drama series and live sports broadcasts from radio. Where families in the 1930s sat around the radio set to listen to a soap opera, concert or news broadcast, in the 1960s those families organized their living rooms to allow good viewing of TV. TV discovered the power of celebrity, and soon shows emerged that promoted celebrity [eg talk shows] and propelled normal people into temporary celebrity status [eg game shows, reality TV]. After the advent of MTV, suddenly music videos - no longer radio - became the deciding factor to a music artist‘s success. Sixth Mass Media: the Internet. So enter the sixth mass media, the internet, in the 1990s. This is a very young media not well understood. As a mass media, the internet is the first that is capable of replicating all of the other five previous media - we can read books, magazines and newspapers online; view movies; listen to radio; view TV; download recordings eg MP3 files, computer software, videogames etc. That is why it is a threat to the previous five media. Furthermore, the internet introduced two elements not possible on previous mass media: interactivity and search. Yes, we could write to the editor of a newspaper, but still, most of the mass media did not have any realistic mass-market interactivity ability ten years ago; on the web it is built in. And search? It has become the most used application on the web. Capable of doing what all other media can do, and adding two powerful new elements, it is no surprise the internet cannibalizes existing mass media. Not to mention the costs of production on the web are a tiny fraction of those of owning a printing press, a broadcast license or network for example. 22
    • Mobile newest, also least understood So what about the 7th mass media? The mobile phone emerged as a mass media from about the year 2000. The youngest of the seven mass media, it is by far the least understood. Many see similarities to the internet, thinking that because of the small screen and less convenient keypad, the mobile internet is somehow ‘simpler’ or ‘dumber’. Similarly many TV execs look at the tiny screen and think TV on mobile is somehow a ‘reduced’ offering, where viewers will only ‘snack’ at selected highlights. Nothing could be further from the truth. In fact the mobile phone as the seventh mass media is by far the most powerful. It is as different to the web as TV is to radio; mobile media‘s influence will be greater than all we‘ve seen so far of the internet, so much so that mobile to internet will be as dominant in its media audience reach and media impact on society as TV was to radio in the second half of the last century. Like the internet before it, today the phone can replicate everything the previous six mass media can do. You can consume newspapers, read magazine articles, listen to radio and podcasts, buy MP3 songs, watch TV, even watch whole movies on the phone - Nokia shipped Mission Impossible 3 on a memory card with the N93 phones [and the 2 hour movie works fine on the high-resolution screen of that phone]. Any web content can be consumed on the phone, and the phone easily supercedes the interactivity of the web, because e- mail and IM are already on the phone, but SMS and MMS messaging are unique to mobile. Similarly search already exists on mobile. Already in 2006 the value of paid content on mobile at 35 B USD is bigger than on the fixed wireline internet at 25 B USD. Mobile has 6 unique benefits The power of the mobile phone as a mass media is due to six elements not available on previous mass media. [1] The phone is the first truly personal medium. A 2006 survey by Wired revealed that 63% of the population do not share the phone even with one‘s spouse, it is that personal. [2] The phone is always carried. A survey in 2005 by BDDO found that 60% of the population sleep with the phone physically in bed; a Nokia 2006 study found that 72% of us use the phone as our alarm clock. [3] The phone is the first always-on mass medium, today many media offer alerts via the phone, what is on another real time medium like TV, such as CNN breaking news alerts via SMS. Probably the most important, is that [4] the phone has a built-in payment mechanism. No other medium has a built-in payment mechanism, even on the internet you have to subscribe to PayPal or provide a credit card, etc. But already today, older media collect payments through the mobile phone. Habbo Hotel the web online playground collects micropayments through premium SMS. TV shows from Big Brother to American Idol earn billions via SMS votes. Some gaming and chat cable TV channels in Europe earn 80% of their total revenues from mobile payments. Tapping into the social networking and user-generated content phenomenon, is that [5] the phone is a creative tool available always at the point of creative impulse. For example Time Magazine‘s Person of the Year 2006 was the ‘You’ of User-Generated Content. Mostly when the photo opportunity emerges, our digital camera is safely at home in its camera case. But the cameraphone [which is also our video recorder and podcast recorder] is in our pocket, always at the ready to snap images and clips. User-generated content is radically altering the media world as seen at YouTube, Ohmy News and SeeMeTV. 23
    • Lastly but perhaps most relevant to the legacy media, [6] mobile captures the most accurate customer information in any medium. AMF Ventures measured the relative accuracy of audience measurements on TV, internet and mobile, in May 2007, finding that on TV only 1% of audience data is captured; on the Internet about 10% of audience data is collected; but on mobile 90% of audience info can be identified. Considering media content targeting and advertising, this means that for practical purposes we know the exact composition of our total audience, individually and exactly - and even where the media is consumed. Not even on the web do we have this level of precision. CRM will be revolutionized! It is not surprising then to find that in Japan, 54% of all mobile phone users receive advertising on their phones, and with targeting and personalization, 44% like the ads so much, they actively click on the ads. Don‘t focus on the limitations Of the limitations to consume, the phone has a screen smaller than that of TV or a personal computer, that is true. That is balanced against it being always with us, often used in parallel when watching TV on a flat screen - 30% of Japanese TV viewers already do this; 20% of the British vote via mobile in reality TV shows. The same holds for the keypad. Yes, a laptop has a better keyboard, and writing a book for example is much easier on a PC than tripple-tapping on a phone keypad. But the phone has the camera [a picture worth a thousand words], the microphone [podcasts], and now: 2D barcodes, as the quick shorthand of the digital generation. You don‘t type the name of your colleague from the business card, you zoom to the 2D barcode [that little square that looks like a fingerprint] and your phone reads the text in it - the phone ‘magically’ replaces the need for any typing at all. As to content migration, in 2006 already 18% of all music worldwide was sold to mobile phones [mostly ringtones], as is 14% of video games. TV and advertising has also moved into mobile during 2007. News and search are showing strong signs of moving that way as well. What is important to note, is that the phone will not kill other medium; they will all adjust, like radio did to TV. All seven mass media will continue. But only those who understand the power of mobile will be able to share in its success. Just like those who understood interactivity and search on the web. 24
    • A Brief History of the Mobile Phone 1 The mobile phone was invented in 1973 by Dr Martin Cooper, a former general manager at Motorola. The first call was made in April 1973 by Dr Cooper to his rival, Joel Engel who was Head of Research at Bell Labs, but it was some time before mobile phones were available commercially. Probably our first memories of mobile phones are from the 1980s when the handsets were large, expensive and typically used by city high-fliers. Today things are very different: nearly everyone in the UK has a mobile phone, with many people having one for business and one for personal use. The table below shows how common the mobile phone has become in a short space of time. 2 The table below shows mobile penetration rates in selected countries. UK US SPAIN INDIA JAPAN Total population 59.4m 297m 41.1m 1081m 127.8m Urban population (per 1000 pop.) 89.2% 80.8% 76.7% 28.7% 65.7% No. of households 25.3m 110.2m 15.0m 202.9m 48.5m Average number per household 2.4 2.6 2.7 5.3 2.6 Cost of living December 2005 (New York=100) 125 100 95 47 136 Colour TVs per 100 households 98.2 99.6 98.5 35.1 99.0 Telephone lines per 100 pop. 56.4 60.5 41.5 4.1 46.0 Mobile telephone subscribers per 100 pop. 102.2 62.1 86.5 4.4 71.6 Computers per 100 pop. 60.0 76.2 24.4 1.2 54.2 3 Not only has the mobile phone become synonymous with modern living, so has text messaging. The network operators never thought text messaging would become a revenue stream for them; it was originally designed by engineers to check whether or not the line was working. As such, the technology was embedded on all mobile phones, albeit behind the scenes. However, in the early days of text messaging , few people knew of 4 its existence beyond telecoms engineers. Just a few years later, customers discovered the messaging tool on their mobile phones and started to use it to see what would happen. This meant that they sent a text message to a friend and this strange message appeared on the other person’s phone and in appearing, was how the next customer found out about the text message facility on their phone. This was true viral marketing. By 1999 text messaging was proving so popular the networks realised that there was a revenue stream available to them by promoting it. At this time, we saw the first advertisements including text messaging as part of the service. Texting took the network operators by surprise at first and they were not geared up for large volumes of messaging going through their systems. 27
    • It was also around this time that the first mobile marketing entrepreneurs put their thinking caps on and worked out that the mobile phone could be an incredibly important advertising communications channel. Young people were embracing text messaging and in turn, their parents and grandparents were finding out about text messaging as it was the easiest way to keep in touch with the young people in their lives. Those first companies to think about commercial text messaging and in particular, using text messaging for marketing included ZagMe, Flytxt, 12snap and Enpocket. All these companies were VC [Venture Capital] funded and to a certain extent were creating concepts and rules as mobile marketing simply hadn’t been invented at this stage. So it was a steep learning curve both from a technology and an operational perspective. Eight years on and the market is really finding its feet and the value chain is becoming clearer along with companies’ roles within that ecosystem. But we are just at the start of the mobile journey when compared with the previous 6 mass media, as pointed out in Tomi Ahonen’s article ‘Mobile Emerging as 7th Mass Media’ Developments in Mobile Technologies 5 6 In terms of technology we are now at a combination of 2.5G and 3G and have multi-media messaging [with pictures, animations, video and sound], Java games, MP3 music files, instant messenger, email and lots more besides. Mobile technology can be likened to television. In the early days of television, it was amazing to have moving pictures in your living room at all even though it was a very small screen; television was not broadcast all day and viewers were subjected to the test card for long periods of time. Who could have imagined back in the early days of television how the technology would progress – colour television, over 300 channels, video, dvd, surround sound, Tivo/Sky Active, interactive television, games to play on your television, digital television, video on demand etc? Mobile technology is on a similar roadmap. In the early days, we had small screens with black and white text, but it was amazing that you could do more than just talk on your phone. We are in the ‘colour television’ age of mobile telephony. Most handsets on the market now have a colour screen and camera as standard features, and we’re seeing the emergence and acceptance of new technology features such as Bluetooth, mobile internet, Java, email, television and more. Who knows what will emerge in the years to come as the cost of the technology reduces and data speeds increase? So why not have another look at your phone and think about how you use it. Already you may be using it for talking and text messaging and quite possibly as an alarm clock and calendar as well. Some of you will have downloaded applications such as Googlemail, Googlemaps or Shozu on to your phone, changed your ringtone and probably sent and/or received an MMS message to boot. OK, you might not do these things all the time, but the chances are you’ve done them! 28
    • Why Mobile is Important You’re probably reading this guide because you’re already engaged in mobile marketing or advertising activities or you’re thinking about it. Mobile has already come a long way and this section gives some statistics and useful information to show how mainstream mobile has become, as well as penetration rates and usage statistics which will help you gauge how relevant mobile is or isn’t for your particular audience, product and company. Did you know • There is 102.2% mobile penetration in the UK according to the latest operator figures. [Source: Economist Pocket World in Figures, 2007] • In the UK, 4,825 billion messages were sent during September 2007, an average of over 1,2 billion messages every week. This equates to the same number of messages sent during the whole of 1999.7 • Over 15 million handsets are replaced per annum which is about a third of all handsets. The typical upgrade time is currently 18 months for a mobile phone but seven years for a landline. The difference being that a landline is seen as a utility and the mobile phone as an object of desire. When was the last time you had a debate in the pub over the fact that your landline telephone was better than your mate’s? • Global SMS traffic over the 2007/2008 New Year period increased by 30 per cent compared to the same period last year. Around the world, phone users sent a total of 43 billion text messages to wish their loved ones a happy New Year.8 • 10% of UK homes only have a mobile [figure rises to 14% in Scotland]. This is particularly prevalent in lower income households, where the mobile phone is treated as a landline and is often plugged permanently into the wall. Usually this will be a Pay As You Go phone which means that there are no monthly rental charges to consider and outgoing calls can only be made when there is enough credit on the phone, although you can receive calls any time. This is also the case in some high income households, e.g. a businessman constantly on the move with little need for a landline. [Source: Ofcom 2007] • Prepay still makes up 64% of the market. [Source: Ofcom 2007] Although this figure has fallen in the last few years from over 70%, it is still a significant part of the market. If someone doesn’t have credit on their phone, it does affect their ability to reply to your message at all. Also the networks expire pre-pay numbers very quickly – sometimes after only a few weeks of non-usage – with those numbers recycled in as little as 3 months.This is worth bearing in mind when dealing with customer database lists and CRM. Another point worth noting is that typically, a customer has on average £2 of credit on their phone, so this is something to remember when asking them to pay for stuff on their phone or access content where their data rate charges may be expensive e.g. if they are not on a flat rate tariff. 29
    • • 80% of under 25s more likely to text than talk.10 • 85.8% of UK mobile customers sent a text message in the last month.11 • 25% of under 10s have a mobile phone.12 • 14 million or 30% of UK users browsed WAP in the last month.13 Ofcom recently published their annual communications report which includes a section on mobile telephony. Their findings are usually more conservative than figures from other research companies, but still the results are encouraging. 92% of the under 45 UK adult population use a mobile phone, falling to 70% of over 45s. Usage for the under 45s has changed little between 2005 and 2006 but amongst the over 45 age group it has increased from 66% to 70%. • Use of mobile services also varies according to socio-economic group, with 85% of UK ABC1s using a mobile phone in the last year compared with 76% of C2DEs which is broadly similar to the previous year. The important thing to note from this is how widespread mobile usage actually is. • The report shows us the use of online and mobile applications which is interesting to compare and contrast as mobile services move forward. Today 79% of mobile users use their handset to do more than make or receive calls, 64% of them are texting and 53% of them are using voicemail. Taking pictures with your phone is popular with 40% of customers doing this and 25% of customers actually using MMS, 17% of the UK’s mobile owners have 3G and 3% of all mobile users are using video calling, although I still haven’t seen anyone use video calling in the wild yet. • 3G take up is greatest in London at 21% penetration and lowest in the North of England at 14%. Unsurprisingly Urban take up is slightly higher at 19% than rural at 12%. Use of Mobile Applications 79% 80% 64% 60% 52% 40% 40% 25% 20% 20% 20% 12% 10% 10% 9% 8% 7% 7% 4% 3% 0% chat function Send/recieve Take photos Play games messaging Messaging video clips video clips Download Download Streaming Voicemail programs organiser FM Radio Emailing Personal Use IMr Picture Calling Video Video WAP Any Text Base: All adults 15+ who have a mobile phone Source: Ofcom research, 2006 Base: All adults 15+ who have a mobile phone Source: Ofcom, The Communications Market 2007 30
    • Use of Online Applications by Dial-up & Broadband Internet Users Any Sending and recieving email General sur ng/browsing Purchasing goods/services Looking for/downloading info for personal use Banking Looking for/downloading info for work DOwnloading music/ lms/video clips Looking for/downloading info for college Instant messaging Playing games Realtime gambling/auctions Other Broadband None of these Narrowband 0% 20% 40% 60& 80% 100% Base: All adults 15+ who have access to the internet at home Source: Ofcom research, 2006 access to the internet at home Base: All adults 15+ who have Source: Ofcom, The Communications Market 2007 The network operators are gaining ground in different parts of the country with O2 winning the battle, particularly in Scotland and Northern Ireland. In London, however, T-Mobile has 36% market share. 100% 80% 60% 40% 20% 0% WM EA UK England Scotland Wales N Ireland London SE SW EM Y&H NE NW Vodafone O2 T-Mobile Orange Three BT Mobile Other/Unsure Base: All SMEs currently using mobiles Source: Ofcom research, 2006 More detailed information is available from the Ofcom report ‘The Communications Market 2007’ which is available as a free download from www.ofcom.org.uk 31
    • 1 See Wikipedia for more information: http://en.wikipedia.org/wiki/History_of_mobile_phones 2 Source: The Pocket World in Figures 2007 published by The Economist. 3 A text message is 160 characters long [including spaces) and contains no formatting. It is free to receive standard SMS text messages in the UK, but not in all countries. In the US, some networks charge for customers to receive each text. Also see Wikipedia http://en.wikipedia.org/wiki/Short_message_service. 4 The first SMS [text message) was sent in December 1992 on the Vodafone network in the UK. It was originally created for internal use and it never could have been predicted it would become so popular. 5 Also known as GPRS [general packet radio switch) or WAP over GPRS. In consumer terms, this allows faster connection to the mobile internet and data transfer. 6 3G is a faster connection to the mobile internet and data transfer thus allowing, in theory, more reliable voice calls and faster data transfers. It is sometimes dubbed as broadband on your phone, but realistically, 3G speeds are not always so fast or reliable. This will come as the operators roll out 3G to all their consumers. 7 Source MDA: http://www.text.it 8 Source Acision 9 Source MDA: http://www.text.it 10 Source MDA: http://www.text.it 11 Source: m:metrics Spring 2007 12 Source: MORI 13 Source: m:metrics 32
    • 19
    • Mobile Marketing Past, Present and Future: Russell Buckley, Managing Director Europe, Admob Russell is one of the leading experts on mobile marketing in the world, having overseen nearly 2,000 campaigns since 2000. Russell is the co-author of MobHappy, one of the most popular mobile marketing and mobile technology blogs on the web. Before joining AdMob, Russell spent over 15 years working in marketing, including advising leading brands such as Coca-Cola, Diageo, Texaco and Mars. In 2000, he was recruited to be Director of Marketing of UK-based mobile marketing start up, ZagMe, one of the leading pioneers in mobile advertising. Russell learned about AdMob soon after its launch and immediately saw the potential. He gave up his consulting practice to join founder Omar and launch AdMob in the European market. 35
    • Mobile Marketing Past, Present and Future For years marketers and mobilists alike have been excited about the prospects for mobile marketing. But despite their evangelising and the obvious potential of the mobile channel, it seemed to be locked in a permanent winter. However, 2007 saw a definite thaw as new business models emerged that promise great things. The main reason why mobile marketing hasn’t really taken off historically, has been the mixed results that the various techniques have generated. In the beginning, we had SMS push campaigns, where the user opted-in to receive alerts from advertisers, or triggered by an event, such as going shopping in the mall. While this sounds like a great idea for advertisers and customers alike, the reality is that the execution is fraught with issues. Firstly it is expensive to send, meaning that many potential advertisers couldn’t justify the return on investment. Then there was the tricky problem of getting customers to opt-in in the first place. Finally, while the definition of spam revolves around prior permission, the reality is that it depends on the context of when the message is received. If the customer gets it at the wrong time, in the wrong mood or even if the content wasn’t valuable, it’s simply condemned as spam. SMS is more about CRM (Customer Relationship Management) activity, like airlines sending travel updates or credit card companies sending transaction details, or for users to “pull” information to their phones from other media. For instance, someone might send an SMS as a result of seeing a poster campaign to ask for stockists, or enter a competition they’ve seen on a cereal box. SMS pull is already a well established technique and is one that will continue to grow. A recent report from M: Metrics found that 18.5% of UK adults had interacted in this way with a marketing campaign in the previous month alone. Ultimately, marketing without an SMS short code will look as odd today as marketing material without a web address. Indeed, it’s possible that phone interaction will supersede the fixed web as the preferred communication channel, as it encourages immediate interactivity and thus higher responses. As useful as SMS is, 2007 saw the launch of a new way for marketers to use the mobile channel – Mobile Web Advertising. And unlike its predecessor, SMS push, it’s proved unequivocally to generate consistently high results for the early adopters, with many claiming 4 times the ROI that they enjoy using the fixed web, which in turn is already a highly effective medium. 36
    • So how does this work? If we take my company, AdMob, as one of the pioneers and success stories, we partner with mobile web sites that enjoy high traffic and offer to run advertising [text-links and graphical banners] on a revenue share basis. Then we make this space available to advertisers via our self-serve web platform. This allows most campaigns to be set up and run in a matter of minutes. Advertisers can target their campaigns according to the characteristics of mobile handset that the ad appears on, such as location, make of handset and phone capability. For mobile content sellers, this has meant that the mobile has been transformed from a distribution channel into a highly effective marketing medium. All users need to do if they’re interested is click on a link and they get straight to the information. Compare this to traditional TV ads, as an example, where potential respondents need to grab their phone, access the mobile web [assuming they know how to and have the right settings], type in a url and only then connect with the information. The medium has proven to be so effective that AdMob now runs one billion ads every month, despite only launching the platform in January 2006. AdMob also has 850 million pages a month available for advertisers to use and target the 30% of adults who already use the mobile web and this figure is set to rise dramatically as operators offer flat rate data packages, handsets get better, speeds get faster and as walled gardens fall down – all these trends are accelerating this year. Another important trend is that more mainstream brands are looking to establish their footprint on the mobile by creating their own mobile websites. Clearly, once a mobile website is built, it will need traffic and the AdMob system is highly effective for doing this. A recent campaign saw AdMob generating 40% of the traffic, despite only receiving 0.4% share of the overall marketing budget. 2007 saw significant moves in advertising-funded content, games and applications, as marketers grew in their sophistication in using the mobile medium. The future for mobile marketing and the mobile web is now looking very exciting for all participants in the value chain, including for the all-important end user. Not only is mobile web advertising helping them to find content they’re looking for, but it’ll make products and services available at significantly less than they’re paying for them now. It’s been a long wait, but mobile marketing has finally arrived. 37
    • Thoughts for Marketers On The Values Around New Digital Media Opportunities: Gillian Kennedy, Managing Director, Emerging Media Platforms Ltd Gillian began her career in media at The Observer, which was followed by 12 years at Emap working across several markets and media. As Interactive Commercial Development Director at Emap Advertising Gillian’s responsibilities included commercialising new digital platforms and digital new product development. Gillian has been an early pioneer of mobile advertising, working in this area for 6 years. 2007 saw Gillian work as an independent consultant both in UK & Europe. She has now formed Emerging Media Platforms which focuses on scoping, implementing & communicating new digital media opportunities for clients. Gillian is actively involved in growing the new digital markets. A former member of DMA Mobile Council, Gillian is a member of several digital networking groups and a regular speaker at conferences and Thought Leadership seminars in the UK & Europe. Last year she took a diverse range of trips to the Far East & Europe to gain greater insight into the rapidly involving digital world we now live in. 39
    • Thoughts For Marketers On The Values Around New Digital Media Opportunities The new converged digital media world frequently represents a dichotomy for those who play a role in the ever changing value chain. Communication between individuals is a good example of this. Whilst the price of communication has decreased significantly over the last few decades, the value that consumers place on communication has increased more than ever so presenting a further challenge to those who market brands and need to capture associated value. Along with this comes ‘new’ new media opportunities which are made possible by fast moving new technologies that allow us to easily interact on a global 24/7 basis whether they be online or mobile. New content and inventory created by developments in technology present both marketers and media owners with new opportunities and associated challenges to get it right, or at the very least make fewer mistakes than your competitors. There is considerable uncharted territory here. With regard to inventory, the new digital world will accommodate some standardised formats. Take mobile as an example, in Japan NTT DoCoMo has carried banner advertising for the last five years, a trend that is currently being rolled out with the UK operators’ advertising inventory. Whilst we can be sure search will play a vital role in this sector, we have only just started the journey when it comes to integrated advertising formats and data targeting that will enrich the consumer experience. It gets really exciting and much riskier when we start to think about user generated advertising though this is probably a little further down the line. Change, driven by technology and new distribution channels, creates a new set of rules for content owners and marketers alike which requires some thought for those who venture into this arena. Audiences have more control than ever before and can decide when and where they want to engage with content and who they share it with. How audiences choose to receive content i.e. online, mobile, MP3 player and so on, provides the platform of choice to engage with content and brands, which needs to be created specifically for that platform. Audiences can now decide who they get content from, which includes brands or friends, as well as what they want to receive and what they are prepared to pay for. New media is actively consumed with audiences down-loading, searching or clicking through for more information that is relevant to their needs. Consumption patterns include during the day in the office, at home in the evening or when audiences are on the move and vary according to device. This active media consumption by audiences creates a superb tool for brands to engage with audiences in an appropriate way. Think about what the device has to offer the consumer and how easy and useful it is in their own lives. Last year I spent some time in Japan and was suitably impressed by the end user experience around mobile TV. Here device features including superb clam shaped screens, ease of use functionality and flat rate data charging has created a clever consumer centric experience that extends audience consumption time of this medium. UK operator trials of mobile TV indicate that mobile TV will extend time spent consuming this medium and 30 minute sessions will become a reality. What a fantastic new canvas for brands to start enriching and engaging their audience. The new rules around successful marketing within ‘new’ new media need to put the audience in control. Get this right, and success will follow! 40
    • 23
    • Mobile Has Always Been All Inclusive: Mike Short, Vice President R&D, 02 Europe Mike’s career spans 32 years in Electronics and Telecommunications, with the last 19 years in Mobile communications. He was appointed Contracts Director of Cellnet in 1989 with multi-million dollar infra-structure investments and UK interconnect agreements. In 1993 the focus moved to establishing Cellnet’s GSM service and he was elected Chairman of the GSM Association for 1995/96 and served on the Executive Board for 5 years. Mike’s focus today is on Third Generation cellular, Mobile TV and steering O2’s Group Research and Development in mobile. He also is a member of the UK Home Office Internet Task Force, OSAB (Ofcom Spectrum Advisory Board) and has been chairman of the UK Mobile Data Association since September 1998. He was appointed VP Technology for O2 in 2000, Visiting Professor at Surrey University in 2003 and Board Member University of Coventry in 2006. He is a Fellow of BCS/ RGS / CIPS and a member of IET and the Royal Television Society. 43
    • Mobile Has Always Been All Inclusive The obsession with 3G suggests an inexorable quest for speed and a new generation of technology when it really is about capacity, capability and content. As we move into the broadband world we also must not forget the 4th C – the Customer. But the capability to meet market needs is also driven by progress on the internet. Mobile 2.0 will soon be with us opening up a whole new world of content and applications. Taking recent figures from Insight Research the global telecom revenues in 2006 are expected to grow annually by 5.91% [CAGR] to 2010, from $1.24 to $1.56 trillion, as the diagrams below illustrate: $170B $250B $589B $774B $443B $467B $592B 2006 - $1.24 Trillion 2010- $1.56 Trillion $16B CAGR - 2006/10 Narrowband wireless growth is driven by cellular and its share is anticipated to grow from 47.4% to 49.6% of the global total Broadband Wired 10.5% revenues. However, it is broadband wired and wireless that show the fastest growth rates. As also illustrated by this guide this is driven by a wider demand for Applications than purely voice Narrowband Wired 1.4 % services. Broadband Wireless 51.7% People are spending more of their free time online [as seen in Figure 2] and broadband adoption including 3G continues Narrowband Wireless 7.8% to grow. Fig 2 In terms of internet and comparisons this is not the special position for Europe alone – over 1 billion new phones or 3000 per day are being shipped worldwide this year. People are spending more and more free time online In Asia, India reached 187 million customers by the end of June 2007, and based on 6 million growth per month it is likely to Most popular leisure activites amongst Europeans exceed 200 million during September 2007. According to ‘The Listening to music 67% Watching lms/DVDs 65% Mobile World’ research, China remains the largest mobile market Sur ng the internet 60% in the world with 484 million customers and with growth currently Travelling 58% at 7 million per month should exceed 500 million in a similar restaurants/bars 40% timeframe. By contrast Japan should have reached 100 million, Walking/rambling 38% Gardening 36% but with the majority being 3G for the first time in September DIY 34% 2007 – and the leading market globally for 3G based on these customer numbers. Sources: Fig Fonester Sources: Fig 2 2 Forrester 44
    • The evolution of the internet to Web 2.0 and beyond will have a more profound impact on applications development. Web based applications will move from ‘consult / surf / search’ to ‘share / collaborate / exploit’ with Web 2.0 capability and eventually to ‘suggest / happen / discover / provide’, all alongside a general trend from content ‘pull’ to ‘push’. Early examples of Web 2.0 we see are My Space, Facebook, 2nd Life, Wikipedia and some enterprise collaboration tools. When we look to see how Web 2.0 will impact mobile, it not only takes us into a wider world of partnerships partly based on mobile content but also into the growing market for mobile applications or Applications, Anywhere, Anytime. Energy & Transport Environment Education Health Video/TV Content / messaging Web 20 wireless Web 10 We already see growing interest in mobile video and TV from the growth in downloads and mobile broadcast TV trends around the world. We also expect to see all phones sold by 2010 to have mobile email and mobile internet capabilities – as an industry we need to make these applications as easy to use as they are to sell. Other mobile applications will be based on combinations of Web 2.0, and messaging telematics. For example transport telematics will evolve from navigation to journey management [with congestion alerts, breakdown and other information services]; parking will get smarter for connected cars; congestion analysis via wireless will support road resource management and user charging; environmental sensors will offer pollution control; connected roads will offer more road safety and better informed drivers and passengers. In education a further phase of connected learning growth is anticipated as mobile access speeds [through 3G and WiFi] extend the research experience from the lecture room to the school classroom. Early examples of usage will be seen with field trips and geoblogging, supported by mobile cameras. This is likely to be followed with wider shared learning based on PDA’s becoming EDA’s or Educational Digital Assistants. It is widely expected that digital homework and Interactive learning will follow. 45
    • In health we already see examples of ‘wellness’ being tested as part of sports training using mobile devices, often with GPS and typical sports monitors. This is expected to evolve into wider social and health care as both low power monitors and short range [Bluetooth/ Wibree] wireless connectivity develops. Social care in the community will require better mobile alarms and alerts, to compliment developments towards the digital home of the future. The further growth in telematics for societal requirements [Transport, Energy and the Enviroment, Education and Health] will be supported by growing GSM economies of scale and systems integrators. Harbor Research predict the machine to machine market [M2M] could reach annual revenues of $290 billion by 2011 [$200Bn services / $80 Bn operations / $10 Bn hardware], but this will require applications partnering and ecosystems to be more fully built. As we continue to move from a verbal to a visual world, Web 2.0 and beyond will play a much bigger part in mobile communications. With more [mobile] phones than people in many parts of the world we are now able to offer a much wider range of applications and solutions – a world of Applications, Anywhere, Anytime. 46
    • Mobile Marketing & Advertising Mobile marketing is the ability to connect brands to customers via the mobile phone. In its early days, this meant SMS, or text, marketing e.g. sending out text alerts – the first being notices for UK clubbers in Ibiza. This now covers much more as the technology has developed over the last five years. We’ve moved from simple text messaging, black and white operator logos and mono ringtones to true tones and MP3 [so it’s the real music on your phone], video clips, streaming video, games, multi-media messaging, instant messenger and more. What is Mobile Marketing and where does it fit in the Marketing Mix? Mobile marketing is about having the ability to connect with consumers via their mobile phone wherever they happen to be: the office, college or school, the pub, the theatre, out shopping, out playing, walking the dog, at home watching television, in bed listening to the radio. Wherever you are, with the right permissions, you can connect customers and clients and vice versa. Mobile marketing fits across many marketing disciplines including sales promotion, CRM, direct marketing, above the line, interactive, integrated, loyalty schemes or it can stand alone. The 5 Cs of mobile = Connectedness We are now living in a new digital age where the network effect is dominant. With online social networking, web 2.0 approaches to internet and other businesses and the easy availability and access to information, entertainment and people 24/7, it really is a connected world. This is never more so than with mobile phones which increase our accessibility to people and information wherever we, or they, may be. With reference to articles by authors Paul Golding14 and Tomi Ahonen, there are at least five primary elements to consider when developing campaigns and applications for the use of mobile phones. 48
    • 1. Communication The mobile phone is primarily a communications device. It allows one person to talk to another; it allows one person to send a message to another via SMS, MMS, instant messenger or email. It even allows us to communicate in pictures, audio and video and multi-player gaming. But it’s fundamentally about allowing one to one communication. For marketers it’s all about communication and if used wisely the mobile phone can be as important a part of the marketing mix as direct marketing and email are. Communication is also evolving into richer forms including emoticons, images, audio and video. This is obvious if you watch any young person interacting on MSN, Yahoo Messenger or Aim and see how they personalise the experience beyond normal language. This is also evident on social networking sites like MySpace where you can personalise your own online presence. Marketing question: What are we communicating, when, to whom, why and how? How are we going to allow customers to communicate with us? 2. Consuming Consumption on mobile takes two forms. We buy things for and with our mobile phones: we may decorate our phones with phone jewellery or flashing stickers; and we pay for ringtones, images and videos to personalise them. In addition, now that we have full multi-media access on our phones, we’re also consuming a wide range of content from video news clips, casual games like Sudoku and news services. It could be argued that we ‘consume’ messages from loved ones and marketers alike. Marketing question: What do our customers want to do on their phones? How does that fit in with what we want to communicate? 3. Communing The mobile phone allows us to connect with the digital world and have a presence or be ‘always on’. It means that we have access to information 24/7 and that others can connect to us 24/7. This allows a level of access we have never had before, even with the advent of broadband on our computers. It means we can find out anything we want at any time with a device that sits in our pocket and is with us twenty-four hours a day. It means that we can remain ‘linked’ to people around us without having to be in physical contact or in the same physical space. We also use mobile phones to find contacts and soul mates as can be seen with the prevalence of text chat services and the popularity of mobile social networking services such as Flirtomatic. Marketing question: How does our marketing effort allow customers to commune or link with us and/or the outside world? 49
    • 4. Convenience The mobile phone is a very convenient way to communicate with another person or entity or find something out by looking it up on the mobile internet or by asking a Texpert15 a question. It’s a tiny device that packs a powerful punch, some phones have hard drives of 8GB or more and most have cameras, WAP access and the ability to download applications and games. The mobile phones we have today are more powerful than the desktop computers we had sitting on our desks less than 10 years ago. Marketing question: Can we make our campaign or our service more convenient for customers by allowing mobile interactivity? Is our service or campaign convenient to use? 5. Control You decide how ‘always on’ you want to be, or not. You can turn your phone off at any time. You can see who is calling you and decide whether or not you wish to take that call. You can see who is sending you a text message and you can decide whether or not you wish to reply. What this means for marketers is that the customer may choose to interact with you via their mobile. They may [or not] give you permission to talk to them via their mobile phone. But it also means that you need to put the customer in control of that permission and make it easy to unsubscribe from marketing activities. Marketing question: Have we got our subscribe/unsubscribe process right? Creating Mobile Moments One of the key differences mobile phones and computers, is the way we use them and in particular the types of things we enjoy doing with them. The chances are if you are interested in computer games you will end up spending several hours playing the one game. At work, you can spend your whole day glued to your screen, inputting data, checking email, surfing the internet, preparing documents etc. However with a mobile phone, although you may have a long telephone conversation with someone, most activities are short and sweet: ‘Mobile Moments’. Text messaging is a very short form of communication; mobile games are typically played for 10 to 20 minutes whilst waiting for a bus or commuting on the tube or train. If you vote in TV shows such as Big Brother or I’m a Celebrity Get Me Out of Here, it takes just seconds and you get a feeling of instant reward. Browsing on WAP sites can still be slow, although it’s getting better with 3G becoming more mainstream, so you’re unlikely to spend hours doing it [yet]. So when embarking on a mobile communications strategy, think ‘short and sweet’ and look towards creating that ‘mobile moment’ rather than a mobile half hour or mobile two hours. As consumers, we’re used to instant gratification, and the mobile phone is an ideal way to feed that addiction. 50
    • The Mobile Marketing Value Chain With ABI Research stating the global mobile marketing and advertising sector will be worth US $19 billion by 2011 and the Internet Advertising Bureau ‘Engage for Mobile’ conference in November 2007 claiming Mobile Advertising is set to take up more than half of advertisers’ budgets by 2012; things are looking very positive for the key stakeholders in the mobile marketing value chain. Brands Brands have realised it is no longer enough to ‘push’ marketing campaigns at consumers, they need to involve and engage with them to find new ways to create and retain loyalty. Mobile has given brands a unique opportunity to do this and create a two-way relationship, ultimately building product awareness, driving sales and retaining loyalty. By using mobile as part of a marketing campaign brands can reach a specific target audience, via a time-sensitive, measureable medium. Marketing / Digital Agencies Mobile has transformed the media landscape over the past seven years, with many big agencies such as Ogilvy and Saatchi launching an interactive digital division that includes mobile services. The increasing sophistication of the handsets themselves, with integrated media players, high resolution imaging and cameras have in turn given agencies more scope to work with to create interactive, innovative campaigns that help drive consumer engagement. Mobile Advertising Networks Companies such as Admob and Enpocket partner with mobile web sites that enjoy high traffic and offer to run advertising [text-links and graphical banners] on a revenue share basis. They make this space available to advertisers via self-serve web platforms. This allows most campaigns to be set up and become operational in a matter of minutes. Advertisers can target their campaigns according to the characteristics of mobile handset that the ad appears on, such as location, make of handset and phone capability. Search Engines Many customers are accessing the mobile internet through established, web-based vendors such as Yahoo, Google and MSN, rather than use the network operator’s searching tools, putting the search engines in a strong position. Mobile Marketing Service Providers Service providers, such as Tanla Mobile, are a full service mobile agency, that provide a complete solution to technically enable mobile marketing and advertising campaigns, working in partnership with the other players in the mobile marketing value chain. Network Operators Network Operators are moving away from the walled garden approach to portals, opening up their network to third parties, to encourage competition and increase data usage through the provision of new and innovative content. They have traditionally charged consumers to buy digital content from their mobile portals, and are now beginning to share demographics and mobile media consumption insights with brands as they move to advertisers funded models. 51
    • Different Types of Mobile Marketing Campaigns As mentioned earlier, mobile marketing fits in across a wide variety of marketing disciplines as well as being a channel in its own right. It was first used most frequently by sales promotion agencies as a very convenient way to manage a competition – the ubiquitous ‘text and win’ promotion. Now there is no need to deal with sack loads of mail and the data inputting post-campaign to allow for a follow-up campaign which means that smart direct marketers can step in and take advantage of the opportunity. Text to Win This is a very convenient way to manage a competition or prize draw. A number is published on a pack, poster, magazine, TV or email and the customer is asked to text in a word, lucky number, answer to a 16 question or their own details for a chance to win a prize to a ‘long’ mobile number or a shortcode17. It also means that you are able to do a follow up campaign as this is also a convenient way to kick-start building your own list and you can do reporting and analysis by measuring repeat entries, times and date of entries etc. Voting and Participation TV We are all familiar with text voting on the television for programmes like Big Brother, I’m a Celebrity, Get Me Out of Here, The X Factor and Britain’s Got Talent. We’re also seeing polling and voting and ‘ask a question’ via text message on more serious programmes such as the BBC’s Question Time. In addition, most national and regional newspapers use text messaging, and in particular voting and polling, as a way to engage customers in a simple dialogue. Again it is a good way to build a customer database list as well as encouraging participation. Similar analysis can be done as for a text and win promotion in terms of numbers of people who participated and when, repeat usage and so on; and in carrying out this analysis you may be able to pick up on patterns of usage and create cluster groups to help with further relevant marketing and promotions to those customers. Some of these initiatives have been tainted recently with the scandals on the Channel 4 programme, Richard and Judy, ITV’s GMTV and even the BBC’s Blue Peter. The misdemeanours vary but it reiterates the need for good planning and good customer service. So, be clear with your terms and conditions and check these with a lawyer, e.g. opening and closing times/dates, how much it costs, the criteria for entry, what money [if any] is going to charity, any additional network charges that may apply. Quizzes Quizzes are eternally popular as seen with the proliferation of quiz formats on television, the popularity of the pub quiz and ever popular personality profiling. Quizzes work very well on mobile phones using either text messaging or a Java application. The benefit of using a text messaging format is that everyone can use that on their mobile phone. But on more sophisticated phones, a Java quiz application can be developed which allows a deeper level of interactivity than text alone as graphics and sound can be incorporated and with a link to a Wapsite or website specifically designed for mobile. This means that new questions can be uploaded on to the phone at the click of a button. 52
    • The typical way to start a quiz is to text in a key word to a central mobile number or shortcode and a question is sent to you by return. The quiz can be as long or as short as you like. Typically, the questions require an A, B, or C answer or a single word answer to keep the data handling simple. It is possible to include what’s called a natural language engine behind the system to analyse customer’s text messages, but this adds cost to building and managing the application. A natural language engine ‘reads’ the incoming text and attempts to recognise it and picks up on keywords within the message in order to work out how to respond. Mobile Content [pictures, ringtones, video] The mobile content industry is huge and has sprung up from literally nowhere. Many people have changed their ringtone from the standard ringtone setting and experimented with pictures on their phone to personalise it. Brands are now capitalising on the popularity of mobile content and are using it as part of their marketing effort. A picture or ringtone can be a second or third tier prize in a free prize draw or other competition, the content based around the brand itself. Many brands and companies employ this tactic of rewarding customers with content for their mobile phones including Honda, Pepsi, Coca Cola, Carling and Fosters. It’s an easy way to reward customers without dealing with complex handling of sending out small prizes in their hundreds or thousands. Games Mobile games are so popular that they are now an industry in their own right and all the major players in the games industry have a mobile games division. Nokia produced the N-Gage which is a mobile phone specifically designed for playing games which competes directly with Nintendo DS and DS Lite and Sony PSP which have internet, file sharing and multi-player gaming capability. Adding mobile connectivity to the mobile internet allows customers to engage in multi-player gaming wherever they are and also allows live updates to the game and the ability to load their score on to a leader- board. In some cases, gaming can be customised according to location so they can challenge real players in their vicinity whether that’s using the location service from their network operator, by using a service like Jaiku18 or Buddyping19 or using Bluetooth at a specific location. Mobile games are also a popular reward for customers, although more expensive to produce and deliver than a simple ringtone, picture or even a full audio track. This is because the cost of production is typically about £20,000 [which is small fry compared with the cost to produce a mainstream Playstation 3 game which can run into millions]. So you have to balance the budget with the potential for ROI and what other fringe benefits you may get from going down the games route. As technologies improve, the cost of production will come down as a large chunk of the cost is down to having to customise and test for a multitude of phones. Of course savings can be made by ‘reskinning’ an existing mobile game and changing some of the images and screens in the game to suit your particular needs. Since the game already works across handsets and operators, your production costs reduce dramatically provided the changes are cosmetic. 53
    • Applications This is currently still a relatively unexplored area for mobile marketing but has potential. Applications can be fun or useful and would typically be Java based to reach the mass market, although higher end business phones such as the Sony Ericsson P800 and P900 range and the Nokia N-Series use Symbian20 which is a more powerful platform for applications. The application can be almost anything you want it to be. It can keep you up to date with stocks and shares if you’re a broker, or it could be a horoscope application that gives you your daily reading in the morning. Development, distribution, billing [if required] and delivery would be similar to handling a mobile game. It should be noted that as soon as you start asking customers to download an application to their phone, that can act as a barrier so it’s not a given that you will get penetration as quickly as you might like it. That said both Google and Opera have had great success with generating full, successful downloads of their mobile email, mapping [Google] and browser [Opera] products. CRM Text messaging in particular is a really useful element of any CRM or Customer Relationship Management initiative. It can be used to keep customers up to date with what’s new and offer them last minute or exclusive offers. Text messaging is more expensive than email for this kind of activity, but is potentially quicker to run, as you don’t have the creative design and build to consider [unless you’re planning to do MMS21]. Costs per text will vary depending on the volumes you put through the networks and also the cost of any application you use may also be included in the per text cost. IVR IVR stands for Interactive Voice Response which has typically been used by large corporates to manage incoming calls e.g. press one for yes and press two for no. It is also used to pay for mobile content and for premium rate services off the television screen and in the back of magazines. MMS Multi-media messaging is becoming more popular and more readily available on handsets. Most new phones have a camera function as standard and will also have the capability to send and receive multi-media messages. An MMS message can contain pictures, video or animation, a sound clip [which can be used as a ringtone] and formatted text [using colour, size and bold]. It could also include a barcode that can be scanned at point of sale. The typical message size is 30k for outbound campaigns. But the user sending in to you can have varying size of MMS depending on what their handset and their network operator allows. Direct Response Campaigns One of the simplest ways for an advertiser to engage with a customer via mobile is to have them text in to a shortcode as a method of direct response to an above the line advertisement. We are seeing these campaigns on posters, in magazines and on the television already. This is also a straightforward way to build your own mobile mailing list for future text campaigns. Some media owners are branding their shortcodes and running direct response campaigns for their advertisers as well as their own promotions and competitions from those numbers. Viewers or listeners understand that if the message has come from a particular shortcode, it belongs to the radio station or the TV station and is part of their branding. For example, the shortcode for BBC Radio 2 is 88291 which is the same as their FM frequency 88 to 91 FM. 54
    • SMS responses to above the line campaigns are increasing in popularity and are generating good response rates among consumers, as illustrated in the graph below. Sent 1 or more text messages in response to an o -mobile advert 7 6 5 4 Sent 1 or more SMS Messages 3 2 1 0 France Germany Italy Spain UK US 33month average ending July 2007. Source: m:metrics month average ending July 2007. Source: m:metrics The response request may vary in terms of what the advertiser is offering. Text to wap or mobile web site Here a customer is encouraged to text in and in return receives a direct link to the advertiser’s mobile web site whereby they can find out more about the product or service, enter a competition or opt-in to receive further information. Now the mobile internet experience is improving, more of this activity is occurring. It is more effective than asking a customer to type in a URL directly into their browser. This is fiddly to do (as we don’t have a QWERTY keyboard) and the majority of mobile customers are unlikely to know their way round their browser in order to do this unless they’re a medium to heavy mobile web user. Text to screen This describes the ability to text in your comments to a screen – be that the TV screen or a screen in a shopping mall or nightclub. It uses the same software that drives text chat services and is generally very popular. It is often a charged-for service (as seen on television where viewers are asked to text in their comments or questions to TV programmes). Advertisements or sponsored messages can be included in the replies to customers to confirm that their messages have been received on the system. Intelligent analysis of this data would also help to find out more about the customer base, when they’re engaged, what they’re talking about and how frequently they interact with you. All useful information for segmenting and targeting your customers. 55
    • Text to email This describes the ability to respond to an advertisement with your email address. Once you’ve sent in your email address, an email is automatically generated, with full graphics, attached PDF file and is sent straight to your inbox. This means that you can give a customer more information than you would be able to in a text message. Arguably, this should be secondary to a text to website service as part of the mobile marketing USP is the immediacy, as the chances are that someone who interacts via mobile wants instant gratification. However, there will be times when this is an appropriate mechanism where very visual and detailed information needs to be distributed, or where the customer wants to bookmark something to check out later when they have more time. Text to post Similar to text to email, you can text in your postcode and your house number and the system uses a Postcode Address Finder to work out your full address and send whatever it is to your home – be that a brochure or free product sample. This is typically used by travel companies to send out their brochures and for sales promotions where sampling is a major part of the campaign. Text to mobile content This refers to a customer who sees an advertisement on television, hears it on the radio, or sees it in print and texts in to receive a piece of content back to their phone such as a ringtone or a money-off coupon. This is typically received as a wap push link and a SMS message and means that the customer is one click away from the content rather than having to search a mobile web portal for that piece of content. Mobile Barcodes Mobile barcodes have been used in the UK since 2002, with businesses sending ‘paperless tickets’ to mobile phones which are then redeemed via in-store EPOS systems. They can reduce production and distribution costs associated with traditional paper-based ticketing channels, overcome security problems associated with paper tickets such as ticket touts; and increase customer convenience by providing a straightforward, instantaneous way to buy tickets and eliminate the need for long queues. A popular example is a concert promotion, where fans see print or online advertisements for the event, text in to a short code or long number and receive a text or picture message containing a barcode and details about the concert. They turn up at the event where their text message is scanned and validated by a member of staff and they are allowed entry to the concert. Companies such as Mobiqa, Swiftpass and Trinity Mobile have been pioneering mobile barcodes and they are now widely used in the retail, transport and leisure sectors. QR Codes QR Codes (Quick Response Codes) are 2D Barcodes developed by Japanese company Denso and were released in 1994 with the primary aim of being easily interpreted by scanner equipment in manufacturing, logistics and sales applications. In comparison with other Barcodes, QR Codes combine several advantages: • They can hold a very large capacity of numbers or letters in any language • Their printout size can be very small • They offer high speed reading • They can be read from any side (omnidirectional or 360° scan) 56
    • The image below shows an example QR code. Japan’s highly developed 3G network and high usage of mobile internet prompted the networks (NTT DoCoMo, J-phone), handset manufacturers (Panasonic, NEC, Sharp) and service providers (Denso, MediaSeek, 3G Vision) to work together to bring QR code readers to mobile phones. They decided to turn a camera phone into a barcode scanner that would deliver encoded information, as well as URLs that could connect directly to the mobile internet. A user with a camera phone with the correct reader software can scan the QR code image, which can cause the phone’s browser to launch and redirect to a brand’s mobile internet site. There is no need to text a shortcode or enter a URL by hand. High spec phones such as the Nokia N95 have QR readers pre-installed, but QR code-reading software is available to install on camera phones which do not have a reader already in place. QR codes are now recognised by over 90% of Japanese mobile phone users, and used by over 50% of them for quick, easy access to information. In fact more people in Japan surf the web using a mobile phone than a PC. QR codes are found on magazines, posters, packages and vending machines throughout Japan, thoroughly assimilated into the marketing and advertising mix. QR codes have now made their way to the UK. When the DVD of the movie ’28 Weeks Later’ was released in the UK in September 2007, part of the advertising campaign included a QR code contained in a square box on the film poster. It held details about the DVD and links to relevant material on the internet. In fact, one giant poster in Shoreditch, London displayed nothing but a QR code. This technology has a wide appeal for marketers and public alike – introducing interactivity into what was a traditionally passive medium. In the housing industry, buyers could walk past a for sale sign, and instantly scan the barcode to find more information about the property; brand managers in the car industry could include a barcode on outdoor advertising, enabling car enthusiasts to watch a video clip of the car in action, etc. Nowadays with most phones having a camera as a standard feature, QR codes could be as popular, and as widely used by brands and marketing agencies in the UK as they are in Japan. WAP Portal or Mobile Internet This phrase describes the mobile version of sites like The Sun or Channel 4; or the network operators own portals that are often a starting point for someone to browse the Internet. Currently the network operators have the largest portals in terms of traffic, but media owners are now looking at WAP to extend their reach. Each network has its own WAP portal – O2 Active, Vodafone Live, Today on 3, Orange World, T-Zones and Virgin Bites. The network operators are proud of their portals and have invested a lot of money in them, but as customer acceptance and usage of WAP grows then more players will come into the market to be a customer’s gateway to the mobile internet. 57
    • Java or On Device Portal [ODP] Java portals are also growing in acceptance as a gateway to the Internet. The reason being, that Java is a technology embedded on the majority of mobile handsets already and gives a relatively speedy user experience – hence its wide usage for mobile games. The term Java Portal describes a hybrid of WAP and Java. You download an application on your phone, which is a template that can be updated with news, information and links via WAP. This means that it is not memory hungry, as it does not keep lots of information stored on your phone. But also, you can keep up to date with whatever it is you want to know about. An analogy is an empty magazine framework that fills up with the latest articles when you click a button. The benefit of this is that the user experience for browsing content is improved, as it’s not solely reliant on WAP and the brand is stored on the phone to be looked at any time. More people are using Java portals, particularly now that 3G penetration is rising [68% of UK mobile subscribers to use 3G by 2010. Source: Forrester] and the browsing experience is getting better. The advent of the iPhone also shifts the focus back to browsing and mobile web; as the only applications allowed on the iPhone are browser based. Therefore they don’t affect the handset operating system and cannot inadvertently, damage the phone in any way. Mobile Marketing Challenges Technology Constraints Mobile technology is fast moving. On average customers upgrade their phones every 18 months, whereas average upgrade time for landlines is every seven years. Nokia, LG, Siemens, Samsung, Sony Ericsson, Motorola et al introduce new handsets every few months, and each has new features, new operating systems, different screen sizes and different functionality. Some new handsets have a bigger impact on the market than others – the Nokia N95 launched with a bang in 2007 and has become very popular very quickly with 3G and data users. The launch of the iPhone is already causing ripples in the mobile industry but it is too early to analyse its impact in the price sensitive, competitive UK market. Cameras and colour screens are now mainstream, as is Java, which is the technology behind most mobile games and many applications. However, each handset manufacturer handles Java differently so if you produce a game, for example, you will have to make sure it is compatible across a wide range of handsets and tailor the application to make sure it is optimised for that handset. Marketers and Mobile Marketing The marketing landscape is already complex, without the addition of email and online campaigns, let alone mobile. Understandably, marketers whose focus has been on a visual brand image were wary about communicating with their customers via text message. Plain text, limited to 160 characters was not that exciting when you’re used to seeing your brand in a clever, quirky TV advert. However today’s phones with colour screens, cameras, internet access and video capability mean there is more scope to run more interesting, integrated campaigns. There is still some hesitancy about mobile marketing, and the perception that text messaging equals spam. There is also a worry about email spam and viruses that make people very wary about allowing access to their mobile phone number in case the same problems arise. This has been exacerbated by spam messaging such as ‘You have a hot date waiting for you. Call 0906 XXX XXXX to find out who has left you a message’ which encourages customers to call a premium rate number and is nothing more than a scam. 58
    • Data Protection regulations in the UK and also the rules surrounding premium rate services are strict in the UK and breaking those rules can land you with a large fine. 30% of the population are accessing the internet via their mobile phone and it’s the big brands currently who are winning the race to getting us to look at them on their phone. The following table shows the rankings of the top mobile web sites among Smartphone users in the United States and the United Kingdom, for the month of June 2007.22 Top 10 for unique subscribers, UK Top 10 for page views, UK 1 Google Inc 1 Hutchinson Whampoa Ltd 2 British Broadcasting Corporation (BBC) 2 Google Inc 3 Orange Personal Communications SVC Ltd 3 British Broadcasting Corporation (BBC) 4 Microsoft Corporation 4 Yahoo! Inc 5 Vodafone Group Plc 5 Microsoft Corporation 6 eBay Inc 6 Vodafone Group Plc 7 Telefonica O2 Europe Plc 7 Orange Personal Communications SVC Ltd 8 Hutchinson Whampoa Ltd 8 eBay Inc 9 Yahoo! Inc 9 Deutsche Telecom AG 10 Deutsche Telecom AG 10 Facebook Inc Top 10 for unique subscribers, US Top 10 for page views, US 1 Google Inc 1 Google Inc 2 Yahoo! Inc 2 Yahoo! Inc 3 Microsoft Corporation 3 News Corporation 4 Time Warner Inc 4 Microsoft Corporation 5 AT&T Inc 5 Craigslist Inc 6 News Corporation 6 The Walt Disney Company 7 eBay Inc 7 Facebook Inc 8 Sprint Nextel 8 AT&T Inc 9 Palm Inc 9 Time Warner Inc 10 Landmark Communications Inc 10 Bank of America Inc What do I Measure? Another concern about mobile marketing is ‘How do you measure it?’ The same rules apply to measuring mobile marketing as other campaigns. There is no guarantee of success just because you use the mobile channel, it’s how you use it that’s important, and when used well, does deliver a high ROI, and this is typically higher than direct mail and email. You can measure response rates, for example, how many new people on the list, how many competition entrants and how many repeat entries. You can also measure click through rates and unsubscribe rates. The latter being a useful indication of how well your campaign is being received. Traditional measurement techniques should also be used – researching customer attitudes for example. There’s nothing to stop you calling or texting a sample from your customers to find out what they thought of the campaign. Or indeed soliciting feedback via a simple form on a mobile internet site. There is no magic formula to measure a mobile campaign and it’s up to the marketer to determine what the criteria for success will be and work out what you will measure in order to determine that. 59
    • The following table shows response levels to text based mobile advertising.23 SMS 5: Text-Based Mobile Advertising, by May 2007 2007 Table Marketing Response Rates, Country: July Percent subscribers Percent responding to Country Received SMS Ad receiving SMS Ad SMS Ad France 27,743,916 62.3% 7.6% Germany 15,089,753 32.5% 5.7% Italy 25,567,895 56.8% 8.0% Spain 24,122,581 75.4% 6.1% United Kingdom 18,648,786 41.4% 9.2% United States 36,671,828 17.2% 12.0% As you can see from the table, the number of SMS ads is lowest in the US, yet they generate the highest response rates. Conversely, Spain has the highest number of subscribers, yet the lowest response rates, suggesting as the novelty factor wears off interaction levels decrease. To get maximum results from text based advertising (1) have your message come from a trusted name, (2) ensure ads are targeted, (3) cap frequency of communication. Campaign Planning Permission Marketing Permission is essential for running any kind of mobile marketing campaign. It is often assumed that you need to work with a pre-existing list of mobile numbers before you can do any kind of mobile marketing but this simply isn’t the case, particularly now that we are working with richer media on mobile (mobile internet, music tracks, application downloads etc).However, permission is critical for any campaign involving push messaging, or any continuing relationship with the customer involving a messaging aspect. It is always a good idea to get this checked out with your company lawyer as this area is covered by many rules and regulations including the EU Data Privacy Act and the EU E-Commerce regulations and is a complex area. If you stick to best practice when it comes to permission marketing, then it is far less likely that you will become unstuck. Permission works in several ways. Firstly, you can collect your customer’s data in traditional ways e.g. by getting them to fill in forms on the internet, complete a postcard, a survey, their mobile number on an internet site and tick the relevant boxes to explicitly state that they want to receive further marketing messages from you or carefully selected third parties. Finally, when a customer texts in, in response to an advert or call to action, for example if they have seen a poster or are entering a competition on the side of a drink’s can, then you, as a marketer, have permission to reply to that customer in the context of that particular campaign. Depending on how you’ve structured your terms and conditions, you may also have an implied opt-in. You can make it explicit and in the process of replying to the customer, you can ask them if they would like to opt-out by sending STOP. Or you can get explicit opt-in by asking them to reply YES (or other keyword of your choice) to state that they want to receive further marketing messages from you. 60
    • Spam is in the Eye of the Beholder. So that’s the basic stuff. Now let’s look at the customer’s point of view. Very often when we receive a message we don’t want, whether or not we’ve opted-in to receive it, we call it spam, or in the case of messages received by post, we call it junk-mail. People very often forget whether or not they have opted in to receive anything. They can’t remember every little tick box they have checked or unchecked. How many forms do you routinely fill in on the internet in order to get past a registration page so you can get to the information you actually want to access? And perhaps, you haven’t received any communication from the company in several months, and perhaps you’ve simply forgotten about them and who they are. Or maybe those messages are no longer relevant to you and your life right now. Just because you opted-in to receive messages about acne cream when you were 17 doesn’t mean you still want to get those when you’re 30. The implication of this is that if you are going to use text messaging as part of your marketing communication, you need to remember that this is part of relationship building. A text message once a year is not going to be effective. If you get customers to sign up to third party campaigns then you need to be a little bit wary of the kind of messages you send out. If the customer has signed up to a mailing list from ACME Inc, even if they’ve ticked the box to get third party messages, they don’t suddenly expect to get a text message from ZEN Ltd who they’ve never had a relationship with before. However, if there is an existing relationship with ACME Inc and the marketing message sent on behalf of ZEN Ltd comes from ACME Inc, then there is a better chance of the message being well-received. But permission on its own isn’t enough to make a campaign successful for any kind of outbound activity. You need at least one other element: Time & Location Firstly, we have time or location sensitivity. You can put a text messaging campaign together relatively quickly compared to how long it takes to put together a print mailing, or an email push. In terms of delivery, you can be timely when you send it out as you are not relying on the postal services to deliver your letter, or relying on someone logging into their email at the right time to take advantage of the offer. With location, you may know the postcode or area where your customer lives, works or plays, which means you can localise the offer to their local restaurant, dry-cleaner, and requires explicit agreement and active look-up. So if you have a time sensitive offer, say a local theatre has some tickets left for Saturday afternoon’s performance and they know you’re local to that theatre, you can send a message on Thursday with an offer for discounted tickets. 61
    • Entertain Entertainment is a category in itself on mobile with the advent of mobile games and video. But don’t forget that this is a small screen and people using their phones probably have a limited amount of time as well as a limited amount of battery life. So think of entertaining someone for a few minutes, while they’re waiting at the bus stop or at a train station, between shows on the television, a short distraction during the working day. What your customer finds entertaining will be very subjective but some examples include branded games, a wapsite telling you about a new book that’s out (including a synopsis, author biog and some quotes), or a funny video clip. Interactive Let’s not forget that the mobile phone is primarily a communications device and as such it’s a two-way street. Long gone are the days when you could send out text messages without a reply path, not least because you need to allow customers to unsubscribe easily by replying STOP to any text message they receive from you. Customers enjoy being asked for their feedback, and they do expect to be heard. So with any mobile messaging communication, you have to allow customers to reply back to you and you need to reply back to customers promptly, so send that text message link back as quickly as you can! Relevant One of the things often forgotten about with a marketing campaign is the actual relevance to the customers and their daily lives. There is little point sending out any direct messages to a customer, by SMS, email or post even, unless it is relevant. E.g. don’t send football related messages to a non-football fan. Value Add Overall, you need to add value to the customer. There is little point in sending out a message saying ‘come to my shop because it’s lovely’. There needs to be a deeper reason why you have sent a message to encourage them to visit your store. That could be offer based (discount, buy one get one free, gift with purchase) or event based (sale on this week, product launch, drinks party). So put yourself in your customers’ shoes and think about how they will feel on receipt of the message. If you haven’t been able to include some time/location sensitivity, if you haven’t been able to entertain them, if there’s no interactivity, if there’s no relevance or you haven’t added any value, then you need to rethink your campaign until you can tick at least one of those boxes. 62
    • Running a Successful Campaign Rules for Success In addition to permission, there are 4 elements that differentiate mobile marketing from traditional marketing. These are also the key success factors for its use. A minimum of two factors are necessary. When planning your mobile marketing effort, it really is back to marketing basics and lots of common sense. Don’t get bogged down with the technology, think through your product or service, your audience and what you want them to experience. There’s a simple checklist to go through which may help you with this. 1. Segment, Target, Position. What are the customer segments you want to reach? Which of them are you going to target for this campaign? How are you going to position your product or service with them, thus affecting brand and key messages? 2. Who is the audience? What do you know about them? Where do they hang out (in this day and age, you need to go to where customers are rather than ‘build it and they will come’)? Who are they hanging out with? What are they reading on and offline? What are they looking at on TV, listening to on the radio, surfing on the internet, using on their phone? 3. What are your key campaign messages? Is it promotionally led (e.g. Special Offer)? Is it ongoing communication? Is it customer service (thank you messages, requests for feedback)? 4. Why mobile marketing? Mobile marketing isn’t always the right tool for the job so where does mobile fit in to your customers’ lives and where will it fit in with your campaign? Check the statistics of what your customers are doing on their phone. Offer plan If you’re creating a sales promotion of any description, you need to make sure you have clarity around your offer or competition, regardless of whether the campaign is using mobile or not. • What is the definition of your offer, promotion or competition? • How are you going to communicate – text message, MMS, Wapsite, other media? • If you are sending any outbound messages, when are you going to send the message? Do think about what your customers might be doing at the time they receive the message… do you really want to send an offer out to an 18 year old boy at 8am on a Saturday morning or target a Mum when she’s busy on the school run? • Who are you going to send this message to and where are you going to find them? Are they your customers already or do you need to acquire them? What’s the call to action? Think also about exclusivity – if the offer or promotion is exclusive (perhaps for members only, or selected customers only) then it can have a powerful impact, make customers feel special and therefore increase the likelihood of a response. SMS is a powerful medium and can cut through other marketing communications but the messages you send must be worth receiving and add value to the receiver. 63
    • Targeting and personalisation The good news about mobile is that it’s relatively straightforward to target, provided you know who your customers are. This means that you can have the same campaign offer to all your customers but can differentiate the tone and content for different target groups. So ideally this means changing the message to suit the recipient. Think about how you might communicate the offer to a teenage music fan versus an active member of the Caravan Club. Mobile phones are incredibly personal devices and the messaging that happens on them is no exception so you can afford to be more personal with your text communication and you can use a less formal language. Copywriting You only have a small screen so whatever you do on it needs to reflect that. If you are sending out text messages, you only have 160 characters so use them wisely! Take care about how you construct the message. Just because it’s a short message, doesn’t mean it’s easier to write. It’s very easy to make mistakes. There are many examples of marketing messages from companies who have made very basic mistakes – a film promotion where they spelt the name of the film incorrectly, a food and drink offer without stating which restaurant and where that is, a discount coupon with no expiry date, a one day sale but no date. • When writing your message, write in the same tone and style as your customer but don’t try too hard and use incomprehensible text speak. Your youth audience will feel patronised by it, because unless you actually work with teenagers to put that copy together, you’ll no doubt get it wrong. Anyone in an older demographic won’t understand it anyway. • Be aware of what appears on the first screen as some customers will never read beyond that unless there’s a very good reason to. So, like a good press release, all your news needs to be up front and visible at the start. • Even with a simple text message based campaign, it is worth testing on different phones to see where the line breaks occur and what appears on the first screen. • When writing for a mobile internet site, consideration also needs to be made as to the screen size and what can easily be read in one screen. Copy should be kept short, simple and to the point. Measurement What response rate can you expect from a mobile campaign? The simple truth is, that like any other marketing effort, it’s not the media you use that dictates your response rate, but how you use it. There is no such thing as an average response rate and one of the things to keep track of internally over time, is your own response rates so you can create your own benchmark. There are things that you can measure: • Number of replies or entries into a competition. • Data captured and its quality and volume. • Wap page impressions. • Click throughs from messages. • Number of people who unsubscribed from your list. • Number of undelivered messages. • Uplift in sales or traffic to your store, website, event etc. • Increase in brand awareness and perception. 64
    • Production and Fulfilment When putting a mobile campaign together the focus is often too much on the technology side and the other component parts can sometimes be forgotten. Thought needs to given to the technical side, of course – who is going to produce and manage the campaign for you, who’s going to build the Wapsite and so on. But thought also needs to go into who’s going to manage any customer service issues, who’s going to manage any prize fulfilment (and the related collating of address details and customer services around that). A very large confectionary brand came unstuck a few years back with a major text to win campaign where no-one had thought through how they were going to collate winners details and so the fulfilment house had to call winners individually which added a huge amount of cost to the overall campaign. Technical Project Management Always allow contingency time and budget for any technical project because once you’ve interacted with a campaign or mobile service, you’ll probably find that something or other needs tweaking. Or you might find some glaring hole in the service that needs filling that you simply hadn’t expected. Also, keep your technical team up to date with your marketing plans – it’s important for them to know when the campaign is going live (obviously) but also the media plan so they can work out potential peaks and troughs in activity. This is particularly important if a TV advert is being used so that the team is on-hand for technical support at peak-time periods. A quick planning checklist Draw on best practice direct marketing principles • Set objectives • Set a budget • Identify your target audience/s • Are you using your own list of customers or do you need access to someone else’s list • What’s the creative concept • Outline the campaign activity and describe the different elements be they push, pull, integrated or standalone • Think through your production and fulfilment needs (customer service, prizes, sales) • Testing programme • Measurement and reporting 65
    • Outbound Campaigns Many firms use outbound SMS marketing as part of their marketing effort. It has been around a long time now and can still be effective, particularly when used around customer service. Everyone from big banks, supermarkets, music companies to cab firms and hairdressers have used it. There are pros and cons to building your own list as well as using someone else’s. So why create your own list? It’s an opportunity to talk to your own customer regularly and get that two-way dialogue going. It helps you build a greater knowledge of your customers, including buying habits. There’s an opportunity for revenue generation if that’s your thing. It’s also cheaper to retain a customer than acquire a new one and messaging is a good way to do that. It’s cheaper to send messages via your own list than buying access to a third party list and after all, they are your customers, you should know better what they want and therefore generate a higher response rate. It also allows customers to get in touch with you and to give you their feedback. If you are building your own list then there are some key points to adhere to (a lot of these are common sense and won’t be a surprise). • Define your objectives. • Is this a single brand list or is it a commercial list. • Communication – how, when, why, what? • Think customer (go back to the Rules for Success). • Clean your data regularly (there’s no excuse for this, it’s a simple enough process to clean your data against the Telephone Preference Service). • Adhere to regional regulations, e.g. the Data Protection Act and the EU Electronic Communication Directive. • Unsubscribing must be easy – replying STOP to any message should unsubscribe a customer from the list. • Customer service – this is a two way street. Make sure your people are briefed and that customer service processes are in place. • SMS is not always the best way to collect data so make sure you can collate date from various places. • Each campaign you run should build your customer’s profile. Not everyone has a list to begin with so sometimes you’re going to have to look elsewhere for data. Where there is a close connection with the list owner, its customers and your product or service, is where you’re going to get the best results. When putting together your outbound campaign and thinking about who you might work with (e.g. a radio station, print media owner, a website owner) then it’s worth planning what it is you are after in some detail. Wherever possible describe the product or service category that your campaign covers and the type of campaign you want to run (competition, discount etc). Describe the target audience and how many people you’d like to reach. A broadcast schedule is useful where you identify time, date and which of your target groups you want to send a message to. And the more information you have about the kinds of customers you want to reach, the easier it’s going to be for the list owner to help you by identifying the quality targets as opposed to just quantity. 66
    • When working with a list owner, it’s always wise to ask when customers opted in (recency is key) and how they opted in, and to just double check that the list is TPS (Telephone Preference Service) compliant and that the list owner is registered with the Information Commissioner (to comply with the data protection act). It’s also important to think through what your reporting requirements are and of course cost and lead times. But don’t be scared or put off by the technology. There are plenty people around to help you with that. What’s important is that mobile marketing has entered the mainstream. We know that customers are happy to interact via their mobile phone. Mobile marketing can now be used for messaging, brand-building and calls to action and crosses over into many marketing areas. The rules for success are quite straightforward, it’s about engaging with appropriate content and messages. In the wider world of commerce, marketing and media, mobile is the new kid on the block. Even though mobile marketing has been around for seven years or so, it’s still very new in comparison and we’re still learning. 14 Paul Golding, author and specialist mobile consultant http://www.paulgolding.com 15 Texperts.com is a service whereby you can ask any question at all and text it in to 66000 and you get an answer back within 10 minutes or so, often less and it costs £1. If a texpert can’t answer your question, then there is no charge and if you’re not happy with the answer, you’re next question is free. 16 A ‘long’ mobile number is in the same format as a normal mobile number – i.e. 07xx xxx xxxx. The benefit of using a standard long number is that it is usually cheaper to rent exclusively if it is likely that customers might not remember to text in the keyword, or you want to collect free form data. Golden numbers are also available which means you can rent a number which will be easier for customers to remember e.g. 07 770 770 770. Also using a long number, provided it is a UK number rather than originating from the Channel Isles or the Isle of Man, it will be at the users standard rate and is likely to be included in a customer’s monthly text bundle. 17 A shortcode is a 4 or 5 digit number typically starting with a 6 or 8 e.g. 86500 which allows customers to interact with your system. These numbers are usually shared and keyword driven so rather than renting the whole number [which can be expensive), you rent the keywords on that number. The benefits of a shortcode is that they’re easy to remember and quick to key in [which is important if you want a customer to respond to a TV advert or poster). However, if the customer does not start their message with the keyword, their message will be lost in the system. Also, shortcodes can have a charging mechanism behind them. This means that if you want to charge a customer to vote, for example, you can set the tariff at anything from 10p through to £5 on top of their standard rate. Shortcodes can also be set at a user’s standard rate but this will not be included in the customer’s text bundle. 18 Jaiku Mobile is a software application for mobile phones that enables you to post and browse Jaikus, add comments, and share your status and location. For more information visit www.jaiku.com. 19 Buddyping enables you to pinpoint the location of your mates and invite them to join you if they are nearby. For more information visit www.buddyping.com 20 Symbian is an operating system used on high-end mobile phones and PDAs [personal digital assistants) e.g. Sony Ericsson P900, Nokia 6660 or most Palm Pilots. 21 MMS – multi media messaging. This includes the ability to add pictures, formatted text, animation, video clips and sound to a message. 22 Source: M:Metrics: www.mmetrics.com 23 Source: Source: www.mmetrics.com Copyright © 2007. Survey of mobile subscribers. Data based on three-month moving average for period ending 31 July, 2007, n= 12,728 French, n= 16,127 German, n= 13,696 Italian, n= 12,921 Spanish, n= 15,834 UK, n= 32,824 US. 67
    • From Hand to Eye, Mobile Marketing Co-ordinated: Anuj Khanna, Head of Marketing, Tanla Mobile Anuj has been in the wireless industry since 1996 working with global mobile operators, wireless applications, messaging and billing service providers. Anuj is the Head of Marketing for Tanla Mobile, a global leader for developing mobile applications and platforms for the Mobile Telecoms, Media and Digital Communications sector. Anuj also heads the Mobile Media & Marketing Group as board director for the Mobile Data Association which is the main industry organisation representing mobile operators, wireless applications, mobile media and content service providers in the UK. Anuj’s expertise lies in growing technology start ups into the most successful companies and leading players in their respective fields which has been proven and tested by the companies he has worked for including Hutchison Telecom, Dialogue Communications, Netsize and Tanla Mobile. He is the author of four globally published wireless industry reports. Anuj holds an MBA in Marketing from The University of Sheffield and a BA in Economics from The University of Bombay. 69
    • From Hand to Eye, Mobile Marketing gets Co-ordinated For many years radio, television and more recently the internet have provided advertisers with a means of mass consumer reach. But the days are gone when Coronation Street would attract 29 million viewers; the channels to reach the consumer today are as fragmented as the brands trying to capture share of mind. Increasingly mobile marketing is providing brands with a rich and compelling opportunity, one which combines the once mass consumer reach of television with the precision and impact of one-to-one marketing and measurability of the Internet. Mobile marketing campaigns using SMS, and more recently MMS, have already helped to open up the eyes of the media world to the power of the mobile channel. Interactive TV and radio, product promotions using coupons and competitions, even charitable donations, have successfully exploited this medium. But things are set to change as Internet style advertising, in the shape of display advertising (banner ads) and search, and even TV-style advertising, come to mobile. Consequently, the opportunities for marketers to reach and engage with consumers through this medium will expand even further. Mobile marketing and advertising is one of the fastest growing sectors with global brands launching interactive mobile campaigns and portals to promote products. With the increased penetration of mobile Internet-enabled phones and major search engines partnering with mobile operators to provide paid for advertising, this sector is creating new opportunities to transfer the Internet advertising model onto mobile phones. Internet and entertainment businesses such as Yahoo, Google and Microsoft are already active in the mobile advertising and search engine market creating an environment for further growth. User generated content sites such as MySpace are launching mobile services to add value to their online presence. Niche providers such as Blyk are targeting the youth market with free mobile services funded entirely by advertising. However, there is a note of caution! Consumers remain unwilling to pay high data charges to access rich media services, and content owners don’t want their users to be constantly thinking about bandwith limits or data charges which are a big distraction to becoming engaged in mobile content services. But market forces and the competitive landscape are already beginning to deal with this potential stumbling block to provide customers with the performance they need, coupled with flat rate charges they are prepared to pay. The market will provide the type of charging structure which will fuel a real boom in mobile advertising, such as Web’n’Walk from T-Mobile. Traditional channels for marketing and advertising, like TV, radio and print, are becoming less effective because consumers now consume information and entertainment very differently than in the past, due largely to the digitisation of content and the increasing ease of access to the Internet. This is especially true of the highly coveted “youth” demographic - the 18 to 34 year olds with high disposable income, high brand awareness, and short attention spans. Marketers have to proceed with caution and use mobile marketing selectively, respecting consumer’s rights to privacy to ensure there is no consumer backlash against unwanted mobile marketing campaigns – failure to do so can destroy a brands reputation. Tanla is well-placed to both consult on and technically enable mobile marketing and advertising services by providing specialist mobile campaign management, interactive services and delivery through its existing product suite. We can build mobile portals, deliver advertising campaigns, enable search engine marketing, manage text competitions and on-pack promotions, letting content brands focus on the marketing of services while Tanla delivers the complete technical solution. 70
    • Mobile Search As customers we are already familiar with search engines on the internet from the likes of Google, ask. com, Yahoo, Lycos and Microsoft. These search engines help consumers find what they’re looking for in the most comprehensive way which can lead to many thousands, if not millions, of page references to links to websites. A sophisticated industry has grown up around these services to offer clients the ability to make sure their websites come high up in the search engine rankings and also to manipulate for best effect the paid for advertising and sponsorship services around them. As we now have mobile internet capability on our phones and access to a multitude of WAP sites, mobile search is becoming increasingly important. Each of the network operators offers some kind of search facility to its customers and paid placements to clients, but there are issues that are still to be resolved. The mobile internet is not like the internet – it’s a very small screen, browsing time is limited [I want the information right here right now] and data speeds may well be slow. This means that the hundreds, if not thousands, of results you’d get on a normal internet search engine are just not going to be workable. We have seen established search brands such as Yahoo, Google and Microsoft entering the mobile search game, as well as new, mobile-specific services from the likes of Taptu, JumpTap and Medio. Now network operators are allowing customers to search and find content and information outside of their portal [indeed some operators are abandoning their portals altogether in favour of the search and find model]. So how does it work? Firstly, a customer enters a search term into the dialog box on the search page [very often this box can be found on the front page of an operator portal, or the customer may go direct to that search engine via the URL]. Then the search result is displayed – typically the results here produce a page that includes a sponsored link at the top, then the links to the most relevant mobile sites with another sponsored link halfway down the page. With some search engines, you may find that near the bottom of the search results page, you’ll click through to what we call transcoded content. This means that the search engine company has found a PC website and has amended it [probably by stripping out any large graphics files and any advertising or widgets] to display it in a mobile friendly format. From a publisher’s point of view, this is not necessarily an ideal situation as the chances are, they have spent a great deal of time organising the layout of the pages for the internet, including lucrative advertising deals, and doesn’t want the likes of Google to transcode them. Time will tell how popular this service becomes with customers and publishers alike. But what does this mean for marketers? The bottom line is that you have to ensure that the mobile search engine crawlers can find your site in the first place. So it’s back to basics in terms of using well-formed mark-up, using the right DOCTYPE and Content-Type for the mark-up language you are using and validating your mark-up. Google has quite a bit of information about how you add your site to the mobile specific directory. Google’s mobile webmaster guidelines can be found here : http://www.google.com/support/webmasters/bin/answer.py?answer=40348. Yahoo offers a similar approach to adding your site for free. 71
    • But this isn’t the whole story. There’s still paid-for listings to deal with. The basic principles are the same as for the internet. As a mobile web master, you choose your partner for search marketing [whether that’s Google, Yahoo!, JumpTap etc] and choose a range of keywords you’d like to use. You’ll need to experiment around the keywords you’d like to use to see which gets the most traffic and which get the best conversion rates. Next, you agree the cost per click for your keywords with the search provider. Then, when a customer reaches your site via one of the search engines, you will hopefully have full tracking in place so that you can see which country, network operator they’re with and which handset so you can serve them the right version of the content they have requested. This also means that you can track your search marketing campaigns in a scientific manner to work out which is the best way to go. Bear in mind that we are dealing with a small screen here so the ad formats are slightly different than web- based adverts. The creative is typically limited to just 12 to 18 character for the title and text and just 20 characters for the URL. The length for the title is just 12 characters in Japan and 18 in all other countries. If you are an existing Google Adwords customer, then you have an option within your dashboard to create a new Mobile Text Ad. Here you’ll be able to create the advert, edit the text, choose your keywords, set the maximum cost per click, target specific network operators and mark-up languages as well as choosing to enable the click to call feature by providing a relevant telephone number [with full country code remember]. The whole search side of things can be incredibly time-consuming and intricate so you may want to consider outsourcing this part of your business to a third party specialist in this area. For more information refer to the following article ‘A Question of Search’ by Ben Tatton-Brown. 72
    • A Question of Search: Can Web Search Supremacy Translate to Mobile? Ben Tatton-Brown, Head of Advertising Sales EMEA, Medio Systems Ben is responsible for driving advertising and publishing sales for the Medio MobileNow Ad Network in all European regions. With 10 years search advertising and mobile experience in France and theUK, Ben has a long track record of success in onlineadvertising and publishing network sales. He has worked for companiesincluding Pitch Entertainment Group and MIVA Inc. where he managed ahighly successful sales operation and introduced search marketing to both advertiser and publisher clients. http://www.mediosystems.com 75
    • A Question of Search: Can Web Search Supremacy Translate to Mobile? The dynamics of the mobile market are changing and as the amount of available downloadable content – music, wallpapers, ringtones and games on mobile – continues to grow so too does the use of mobile data generally. In fact, the amount of downloadable content has grown ten-fold in the last year alone and this is now where the majority (66%) of mobile search queries are directed. Looking forward, we can reasonably expect that the tens of thousands of mobile Web sites in existence today will become millions or even hundreds of millions in the next few years. To draw a parallel, the state of the mobile Web today is roughly equal to where we were with the World Wide Web in the early 1990’s. But we should consider that unlike the history of the Internet, over one hundred million existing PC-optimised sites can easily be ported to mobile. When the Internet really took off, it became imperative for people to be able to search the wealth of content it offered effectively. Realising the opportunity, the three major Internet giants Google, Yahoo and Microsoft, have all now taken their Internet expertise into the mobile space by launching mobile search and advertising offerings in advance of exponential mobile Web growth. Google launched mobile Web search two years ago and has said in the past that mobile search, at least in Europe, is a priority. Google has also recently announced plans for a new search service for mobile content. In this way, it and the other two big hitters have recognised that the mobile Web does not have real scope to grow or to be useable until the infrastructure to find and sieve content is firmly in place. Mobile Search is not Web Search Mobile search is the gateway to mobile data and therefore we cannot think of it in the same way as Web search. In fact, the two represent vastly different experiences and whether Google and others know it or not, the reality is that there is much more to mobile search than meets the eye. When you consider the different context in which a consumer conducts a Web search compared with a mobile search, the inadequacy of the Web search format becomes clear. Mobile users of course don’t have the benefit of a PC monitor or a workstation at which to sit. Nor do they have the luxury of staying still – the essence of the mobile phone is in its mobility after all and users will expect mobile search to be every bit as mobile as walking down the street chatting to a friend. For these reasons, mobile search is best as a made-for-mobile experience which takes into account the physical constraints of a small screen and slower connection speeds vs. the requirement for immediate ‘on-the-go’ style information. All this makes ease-of-use a core challenge for mobile search. Not unreasonably, consumers may be anticipating a service which merely replicates the online search experience on mobile, but this is not necessarily going to help them adapt to, or benefit from, mobile content. In order to provide the kind of user experience the mobile industry is still waiting for, white-label search vendors need to keep the consumer’s context in mind by offering a fast, relevant, and directed search experience. In the mobile domain where subscribers need answers not Google-style links, relevancy is the prime measure of a search engine’s success. Importantly, for the savvy marketer, there is a distinct commercial opportunity associated with relevance and with a viable search experience. Ad content that is received along with a response to a search query is actually a very polite form of advertising, not at all like the interruptive, unavoidable style of advertising that we experience when watching television or that bombards us as we move around the average cityscape. 77
    • The last mile opportunity The amount of marketing value that can be created through building broad adoption of mobile search is almost without limits. In a mature advertising market, the key measure is the size of the audience. There are already three times more mobile phones globally than there are PCs and approximately 3.25 billion mobile phone subscribers around the world, twice as many as use the Internet. This means that the mobile phone has the greatest potential reach on the planet. Nearly 17 million users, about 9% of all mobile users across Europe, already access the mobile Internet. As these people discover mobile search as the most effective and efficient means to locate the information they need, so the possibility to market directly to them increases. When you combine the potential reach of mobile with the understanding that it is the first truly personal media, the benefits of a true one to one marketing channel for advertising is clear. Survey after survey has shown that people want data on their handsets but that currently the principle barriers to this are discovery of content and price. The first of these is solved by search, and the second is solved at least in part by advertising which means that consumers will not need to pay for all the mobile data they use. Despite these obstacles, 15% of mobile users in the UK are consuming mobile data and in so doing, are supporting the call for data on the handset. Interestingly, 70% of all mobile consumers do not actually perceive mobile search ads as content, having themselves been the initiator of the process. As such, mobile phones represent an unprecedented way of reaching consumers during the ‘last mile’ phase of the transaction chain when they are on the move, choosing which store or restaurant to walk into to buy what they are looking for. Opportunities also exist for big brands, content owners, WAP sites and direct response companies. In the advertising cycle, search results will return relevant ads, click-throughs (click-to-call, e-mail, WAP sites) will lead to satisfied advertisers. This in turn increases mobile advertising usage and eventually the relevance of each ad placement is enhanced. Calling the shots The current barrier to mobile search and advertising is adoption. The mobile content industry believes that consumers are browsing and searching for content much more than they actually are, as proven recently by concurrent surveys conducted by the Mobile Entertainment Forum among its members. The findings indicate that many people are not yet using mobile content. As the way that most people discover content in the online world, search is however becoming a core competency in the mobile world and in addition, people are using search in a way that can boost service provider revenues. 78
    • Mobile search is therefore playing a critical dual role in bringing tangible benefits to consumers by helping them to find the content they desire and in enabling the revenue opportunities that are attached. When the Web was born, TV, print and other established media expected to extend their dominance into the online world. Fifteen years later almost without exception, the top ten Web sites (e.g. Google, Yahoo!, eBay, MySpace, YouTube) started life as Internet startups. It would be a mistake to believe that those who have become dominant on the Web will automatically transfer this power to the mobile Internet. As a new medium, mobile too will see new winners emerge. As the use of mobile content grows, marketers should be aware of this dynamic, bearing in mind that search solutions and mobile ad networks that offer a way in to the relevance-based advertising channel are likely to offer the biggest returns. 79
    • Music and Mobile Music and mobile is a powerful combination, and the proof is in how much the network operators align themselves with music – The O2 Dome, the O2 Wireless Festival, T-Mobile Streetgigs and Transmission with T-Mobile on Channel 4, Virgin and the V Festival. We have already seen the ringtone market appear from nowhere, as an industry, it didn’t exist ten years ago. The ringtone market is now levelling off as handsets become more sophisticated and becomes easier to distribute and to share music in mp3 formats. The ringtone is not dead though, we are still personalising our phones with ringtones, we’re using ring back tones to personalise the experience for incoming callers. We are beginning to see some traction in full track music downloads to mobile devices. The majority of this music being accessed on a mobile phone is being side loaded meaning that the customer is linking their phone to their music catalogue on their computer or laptop via cable or Bluetooth and copying the files across. These files are then being used as ringtones. Strangely enough it’s much more difficult to manage ringtone delivery, due to the multiple formats required on different devices and different networks, than it is to manage full track download delivery. There is also the mobile tagging service that is provided by Shazam Entertainment24 which Coca Cola used for its recent mobile music campaign. When you hear a piece of music and want to know what it is, you dial 2580 [it is a paid for service and costs around 50p] and hold your phone to the source of music. After about 15 seconds, the call will be terminated and you will receive a text message back telling you what the track is and who the artist is. The track will also be ‘tagged’ with your consumer profile so that you can go online to the Shazam website to check your tags and download the music to your computer or mp3 player [at a cost]. As such, music already has wide appeal and with access and usage via mobile phones rising in ubiquity, it is already becoming a useful part of the mobile marketing mix. Alongside this we’ve seen the growth in iPod and mp3 player usage and the downloading and sharing of digital versions of music. In 2007 the iPhone was launched in the US, UK and Europe, combining an iPod music player with a web browser and mobile phone. And as we have more and more devices, putting this all together on one device makes a lot of sense. So what does this mean for marketers? Customers are accessing music quite happily on their mobile devices so very simple things like music track giveaways as part of a sales promotion will always be popular. Mobile sits well alongside live music events where you can actively encourage people to take photos and short videos of the event and post them to their own blog or a group blog to share and reminisce about the experience. Of course this is all branded, sponsored or whatever to strengthen the client proposition. 80
    • You can encourage music creation, whereby customers can mix their own ringtone or music track, share it with other people for the potential of winning a prize, or just for the joy of participation. Levi’s Europe did this very well with their Levi’s Audio MiXer campaign [MAX]. This was in support of the newly launched Twisted Levi’s and the team behind it at Levi’s and their agency Lateral, came up with what they thought was a ‘twisted’ take on the ringtone and the reverse of the existing trend at the time. So instead of downloading a free ringtone, they encouraged customers, Europe-wide, to create [via mobile], upload and share their ringtone creations, get the ringtones judged and the winner’s prize was to get their track released on vinyl. The campaign worked on many levels. Firstly, the fact that Levi’s was attempting such a campaign combining web and mobile across Europe to support hundreds of handsets and multiple operators was no mean feat. It was an interactive campaign which meant that participants as a creator, downloader or both, were highly engaged, and more inclined to ‘get’ what the whole campaign was about. Finally, they did fantastic PR around it all, and even if the campaign hadn’t been a success in terms of volume of entries, it was a success in terms of column inches achieved in the consumer press, reversing Levi’s decline in the youth market. Podcasting Podcasting is a relatively new term borne out of the name iPod which is Apple’s hugely popular music player which we are all familiar with. A podcast is typically a homemade recording which can be anything from a radio show to describing a walk to work to learning. However, commercial organisations are now beginning to provide some of their programming in podcast format [BBC, Virgin Radio and Pepsi are all providing podcasts]. You download the podcast from a website, probably in mp3 format, to listen to you on your mp3 player as and when you want to. Companies are springing up to offer advertising on podcasts as well as many websites devoted to helping you choose and download relevant content to your mp3 player. And as mobile phones become mp3 players with a larger hard drive capacity, we are seeing podcasts available for your mobile and downloadable over the air as well as being ‘side loadable’. Thus podcasting becomes part of the mobile marketing mix. Moblogs The top five handsets globally all have cameras as standard, so it will come as no surprise that there has been a rise in digital photography. Have you ever been to a gig and spotted the people in the audience with their phones in the air taking a picture or a video clip that they can share with their friends and family later on? The cameraphone is now the entry level camera for digital photography. On the back of that, we have seen an increase in the use of moblogs [mobile blogs] or photo and video sharing sites. We’re all familiar with YouTube and Google Video for sharing and viewing video clips. For still images we have Moblog.co.uk and Flickr amongst others. You can add your photos to these sites via email or on the internet and via your mobile phone using MMS. In addition to this, we also have nifty services such as Shozu to make the blogging process easier which give the ability to publish your photo with one click as soon as you have taken it. That’s very fast publishing! All you have to do is download the Shozu software to your phone for free, tell it which blogging sites you use [e.g. flickr, Moblog UK or Blogger] and then the next time you take a photograph, it will ask you if you want to publish it straight away. 81
    • Music artists are also using moblogging to great effect by including moblogs in their sites and publishing backstage photos and photos of the band on tour. In addition, fans can be encouraged to send in their pictures of them with the band, at the gig, at the festival etc thus creating a dialogue. Band members are given phones with the software pre-installed so they can publish with one click which makes the process that much simpler for them. In this way, it could also be a good promotion for a handset manufacturer. RSS This acronym stands for Really Simple Syndication and is the technology behind how many people are reading blogs. It is often quite cumbersome and time consuming to enter in the URL of a site you want to go to and wait for it to load. So a very simple technique has been invented for you to keep track of many sites that you regularly visit. You simply add in the websites you’d like to keep track off in something like Bloglines [www.bloglines.com] and then you need only click on one page [for example your home page in bloglines or other blog reader] to see all the blogs you read on the left hand side with a number next to each to identify how many new entries there have been on that blog since last time you looked. Then you can check out the article in short format in that page and click through to the blog if you’d like to read more about that particular item. RSS is also a mobile friendly technology and we’re beginning to see mobile RSS readers, like Subli.mobi so that you can read a blog, or indeed any website with an RSS feed, from your mobile phone too. In reading content through an RSS reader, it is often transcoded which can be contentious. As a publisher, it might mean that your much needed adverts are stripped out – as described earlier in the mobile search section. You cannot control how your content looks and feels. Services are emerging, such as Mippin, where as a publisher, you can both offer a mobile RSS feed and also control the look and feel of your content to some degree without losing advertising revenue, and hopefully gaining additional readers and eyeballs because the content is more accessible. 82
    • Bluetooth/infra red Bluetooth / infrared are wireless technologies that allow mobile phones, computers and other devices to talk to one another over short distances. Many mobiles already have one or both of these technologies pre- installed, allowing easy file sharing between devices, e.g. backing up your phone book to your computer, or use a Bluetooth headset for hands free calling. It also means you can share pictures, video clips and music tracks from one phone to another without incurring networking charges, as it does not use the network’s radio spectrum. Bluetooth can also be used to send out commercial messages, creating new ways for brands to include mobile in the marketing mix and advertise to consumers via their phones. The content is free to receive and can be an effective way for marketers to engage with the technically savvy 16-30 age group, whether the aim is to drive sales, launch a product or service, or acquire / retain customer loyalty. Messages can be sent to passers by at exhibitions, shopping centres and concerts, and can include text, images, games or video clips. E.g. if Bluetooth is activated on your phone you could be walking past a restaurant and receive a message highlighting a 2-for-1 meal deal, be near a travel agents and be sent details on the latest flight bargains, or attend a concert and get artist tracks and screensavers unique to the event. An alternative method of using Bluetooth commercially is to allow customers to interact with a poster or screen. E.g. a Bluetooth enabled poster advertises the latest movie blockbuster. Passers by see the call to action, activate Bluetooth on their phone and receive a WAP link taking them to a mobile internet site where they can read about the film, watch a clip, find nearest cinema where it’s playing, and receive a piece of movie-related free content such as a game or ringtone. There are also interesting art projects which are being created around Bluetooth. At a recent event at the Festival Hall, the audience were encouraged to take pictures from their mobile phones and sent them via Bluetooth so they appear on screens around the foyer thus showing their photography skills to the world. Cheap to run, no operator costs, engaging for customers and a good use of the technology. Projects like these are very sponsorable. There are no issues around spam or data protection as no mobile numbers are captured. The only question is who has the rights to the photographs in the future! 24 http://www.shazamentertainment.com 83
    • 56
    • Business Models in Mobile So how does free mobile content and media pay for itself? Historically, free or low cost mainstream media such as TV, magazines, newspapers and radio have been paid for by a combination of advertising, licence fees (in the case of the BBC specifically) and paid-for services. There is a cover charge for magazines and newspapers, some services have monthly subscriptions, as in Sky TV, and we now have pay-per-view and pay per download video and TV as well. But the ‘free’ nature of the internet has changed consumer perceptions. The economics behind making a TV programme, videogame, piece of music or web service are largely hidden from the consumer and they expect it to be ‘free’. So how do you do it? Ad-funded Content Recent Jupiter research from Q4 2006 tells us that: • Mobile advertising is set to reach £2 billion in the UK by 2010. • Almost half of the 16 to 25 year olds vs 32% of the over 25s were happy to accept adverts in return for free content. • 30% of those then said they would be likely to respond to marketing messages. A good example of ad-funded content in action is Blyk, the new virtual mobile network operator aimed at 16 to 24 year olds. Customers sign up to the service and receive free SMS and calls (within a set limit) and this is paid for by advertisers sending those customers advertisements relevant to their customer profile. The customer profile goes beyond the basic demographic information and also includes usage metrics and also the content those customers create. For this approach to work, you must match your advertiser very closely with the end customer as well as the service you are offering. In Blyk’s case, it’s a focussed youth segment and the advertisers working with them have products and services very much aimed at that audience. The way that content is created is in keeping with the media expectations of that target customer group and is based on engagement rather than bland branding messages. If there is no congruence between the advertising brand and the media entity then the campaign is unlikely to work, e.g. a message about Persil washing whiter school uniforms is not going to be of much interest to an 18 year old interested in clubbing and spending time on dontstayin.com and bebo.com. 85
    • Mobile Advertising Using a service like Admob wapsite owners can generate income from offering pay per click advertising from their sites without having to search for the advertisers themselves. If you’re an advertiser, you can target your audience and the device you want [really important if you want your customers to download something and you know which handsets it works best on]. You have the flexibility to select which kinds of sites your ad will run on. There are advanced reporting and analytics available and if you don’t have a mobile site, there are companies that will help you create one very quickly and easily. You can use simple hyperlinks or graphical banner ads. And because of the sophisticated reporting and analytics, you are able to work out which treatments are working well. Five Tips to increase the Click Through Rates of your mobile adverts 1. Change ad text frequently Keep your campaign fresh and get the highest ROI by frequently changing ad text. Customers are more likely to click on ads that they haven’t seen before. [People get bored, so it’s important to come up with regular new content]. 2. Use relevant links Be sure that the click through URL takes your audience to a relevant landing page and that the product you are promoting is easy to find. [The right landing pages are crucial on web or WAP. But get it wrong on WAP and it’s even worse as you don’t have the space to play around with navigation on a phone for someone to bother finding the right page]. 3. Customise your advert Include the user’s phone model into the text of your ad, making it more relevant and dynamic. You can do so by inserting the %phn% tag into the text of your ad. For example, “Share pictures on your %phn%” would become “Share pictures on your RAZR” to a user viewing that ad from a RAZR. [This is particularly important for mobile content providers, and probably not so relevant to non-mobile brands]. 4. Be timely Reference hot products, sales, events and holidays. Be sure to update your text once time sensitive events are over. [e.g. don’t advertise England football mobile content on a non-football site the day after England lose a big match]! 5. Experiment often Try new ad text and targeting. Experiment with the Run of Network offering to attract more global traffic. Continually trying new things will help you to determine what works best for your business, as well as to ensure your ads are fresh. 86
    • Sponsored SMS Some list owners are offering clients the ability to add a short message at the end of a text message they are sending out already to their customers. An example of this is the directory enquiries service 118118. However, a text message is already very short and typically you’ll get 40 characters or less to play with. This is not a lot of space. Be wary of the targeting – how targeted is this list or this communication? Can you tie in with a message that’s already going out or does your message bear no relationship to the original message you’re sponsoring? In the case of 118118, there is little or no link between the sponsor and the 118118 message. Also have a think about the customer and how they would feel about receiving a sponsored message. In the 118118 example, when you have paid good money to receive the answer to your directory enquiry, how would you feel about receiving an advertising message as well? And how would that impact on their feelings about the advertiser. Selling your List There are many database owners that will sell their data to any willing buyer. It can be a murky business. Rates for your data will vary from less than 1p per name to about 12p. But you’ll be very lucky to get to the upper end of that range. Branded lists [Kiss, FHM, MTV] fare better when it comes to pricing and can attract cpm rates of £250. But the chances are you’re not EMAP or MTV. If you are thinking of selling your list, there are lots of data protection hoops to jump through - and rightly so. It’s unlikely that you’ll be able to sell your list and just hand it over to a third party. The chances are, if you’ve structured your terms and conditions properly you’ll have permission to send messages on behalf of third parties, but that the data can’t leave your hands. For this to work, there needs to be a close association with the brands of the list owner and the brand advertiser which isn’t easy to achieve. Third party lists have been so badly abused in the past that they are suffering from the law of diminishing returns. 87
    • Sponsored Content Create useful/entertaining/must-have mobile media such as an application, game, mobile TV loop, news, gossip, messaging etc. Then get access to a loyal customer base and get a big brand sponsor in to fund it - The Sun, News of the World and The Times did just this for the 2006 World Cup. The application was called your ‘World Cup Companion’ and meant that you could keep up with all the scores and news around the World Cup as it happened. It was promoted in the newspapers in print and online, the sponsors’ logos, Betfair and Three, appeared in all the media promotion so the whole was greater than the sum of its parts in terms of media coverage. Off The Page Promotion This could be a revenue share deal or a bounty deal [where the content company pays the publisher for each customer acquired - pay per acquisition]. A good example of this was the promotion that 82ASK did with IPC’s Pick Me Up magazine. The promotion was co-branded, and was reinforced throughout the magazine in the following weeks and generated a high response rate. Subscription Model This is where you offer customers either an all you can eat package or a limited weekly use package for a fixed fee per week or per month. These services are still advertised on television and were a big part of Crazy Frog’s success - the adverts shown at the time didn’t just advertise Crazy Frog - to get the Frog ringtone, you had to subscribe to a weekly or monthly service. This type of service has got itself a bad name with unscrupulous providers not being clear about costs and how to opt-out. That said, if you get it right, it’s a very profitable way to run a business – LoveFilm, BCA book club and many others find it a very successful model. But for it to work, you need a trusted brand image, squeaky clean operations, great customer service and strong customer focus. User Generated Content This is a neat model - get your customers to create their own content. Give them the ability to market, buy and download each others content, and reward the creators with a percentage of sales and only payout when they reach a certain amount [say £25]. Examples of this are SeeMeTv, PeekabooTV [NSFW], LookAtMeTV. Wholesale Syndicate your content to a network operator, media owner or content aggregator/s. There is a protracted value chain - not least the chunk of money that the network operator takes for premium SMS payments - and this means limited margin. So what you’re aiming for is multiple niche deals rather than one big deal, going for global makes sense, if you can. Some revenue may well be better than no revenue at all and if you do start selling content, it all adds to your sponsorship story and credibility for creating things that customers actually want. Don’t expect miracles though, there are thousands of content providers out there and the chances of you hitting the jackpot will be slim. 88
    • Retail Go direct to consumer and build your brand and trust, and put effort into your own marketing and distribution. The five ‘P’s of mobile marketing are important here. • Product: what is it, is it easy to use/understand/download. • Place: where will customers find it? On some dodgy back of beyond website or your own amazing site. • Price: you may need to play around with pricing models. • Promotion: how are you going to promote? You’ll need to look at the whole marketing mix, online, offline, mobile. • Partnerships: getting revenue share deals with publishers will be really helpful so you share the risk and don’t have to pay out advertising costs up front. Don’t Have a Business Model Hope you’ll be the next big thing in mobile and someone will buy you for loadsa money... it could happen! There are plenty of internet business out there who didn’t have a business model when they started up. However, like the online world, the successes will be very few and the failures will be many. 89
    • Social Networking Will Drive the Next Wave of Mobile Commerce: Jeff Spirer Vice President Mobile Internet, Tanla Mobile Inc Jeff Spirer has over twenty years in managing high technology sales, marketing, and business development. Most recently, Jeff managed US business development for mobile e-commerce provider Bango, working with major entertainment companies, key strategic partners, and mobile developers to build a US presence for Bango. Prior to that, Jeff co-founded startups such as Newsnet, which developed applications for Microsoft’s TabletPC, and Navitel, which developed software for advanced telephones and was successfully sold to OpenTV. Jeff also worked in key sales and marketing roles for Intel, Sun Microsystems, and Home Shopping Network’s Internet division. 91
    • Social Networking Will Drive the Next Wave of Mobile Commerce The telephone is the most social device people use. This has been true since the invention of the phone, and it continues today. Over the last two decades, we have seen the phone become mobile, and more recently seen its use expand from just voice to voice with messaging and data. What hasn’t changed is that the phone is the most social device we use. What will change is that the phone will also become a primary commerce vehicle through its ever-presence, data connections and its social usage. When mobile commerce first emerged, it was tied to operator sales of limited types of digital content provided by businesses, both large and emerging mobile-specific companies. As mobile web browsers became available, these businesses added off-portal (off-deck) offerings, but the content being made available didn’t change as off-portal sites opened up. Phone users were offered through on-portal and off- portal a mix of ringtones, wallpapers, and occasionally videos, full songs, and specialized information. With this limited content and the limited methods of discovery available to drive users to mobile storefronts, sales have usually been generated by purchase of a new phone and strong fan support rather than serendipitous shopping. All this is changing with the advent of social networking via the mobile phone. Social networking has become a fixture on merchandising sites on the PC internet. Amazon, Netflix, and many other shopping sites provide user feedback and recommendation tools. Social networking develops around these tools, with users sharing information with online friends. In addition, sites developed specifically for social networking are now offering ways to make recommendations, tell a friend about products, and even keep them informed on every online purchase. Shopping is about sharing, and social networking sites enable sharing. Social networking is already popular on the phone, but the tools have been crude. Teens in particular use text messaging to stay in touch with groups of friends and share their daily activities. More recently, rich mobile sites have emerged to go beyond the limitations of SMS, using graphics, scripts, and databases to bring a better social networking experience to the phone. Companies such as Intercasting and Tiny Pictures make it easy for people to connect inside the mobile internet, allowing sharing of information. These social networks provide new commerce opportunities that can bring new business to merchants, and in turn, bring more usage and revenue to the social networks. With the rapid growth of the mobile internet, and the consequent surge in social networking sites on the phone, the next wave of growth in m-commerce is being driven by social networking. Users can easily share their recommendations and recent purchases with friends, make suggestions to someone in a store, or just let someone know about what they just bought, be it digital content or physical goods. The link between the phone and shopping has so many avenues – voice, sms, and mobile web – that it becomes the natural way to share. Brands can leverage social networking for both promotion and sales, in both sites developed for social networking, or using social networking elements within their site. Within a social networking site, advertising can help generate brand awareness, “tell a friend” and “this is what I bought” widgets can spread product demand. Within a retail or entertainment mobile site, social networking elements, such as those provided by mPulse, can add the ability to share information and opinions about products and services. Using the next generation of social networking helps everyone working to build mobile commerce. 92
    • Tanla’s offerings are enablers for social networking sites that want to offer commerce solutions to their users. Here are some of the ways it can happen: • WAP push a product recommendation to a friend • Provide billing for digital content downloads • Provide billing for physical purchase • Offer subscriptions to mobile shopping sites • Serve interstitial and banner/text ads on social network sites. Tanla’s suite of mobile offerings will enable social networking and m-commerce sites, bricks and mortar stores and online shopping sites to ride the next wave of growth in mobile commerce and mobile shopping. 93
    • Mobile TV - Are We Nearly There Yet? Steve Flaherty, Mobile Consultant, Keitai Culture A qualified engineer with 16 years experience in high technology marketing, Steve Flaherty is now developing an independent mobile data & wireless consultancy Keitai Culture, specialising in creating and delivering mobile innovation. Prior to founding Keitai Culture, Steve held a number of key positions within the high-technology industry. These included business consultant at Cable & Wireless, UK general manager for Taiwan’s Behaviour Technology Corporation and head of Mobile Data & Wireless for both Rare Technology and Red Hot Chilli. Over the last seven years Steve has specialised in mobile data & wireless consultancy, leading his first serious project for Apple in 1996. This involved technical problem solving regarding wireless communications for the Newton. Since then he has lead mobile related projects for Orange, C&W, BT, BA, Zurich Bank, IBM, LG Electronics, KPMG and many others. These projects have ranged from strategic market reviews on emerging technologies, to strategy and vision creation and have often involved implementation of his own recommendations. 95
    • Mobile TV – Are We Nearly There Yet? Our relationship with TV is changing, we have PVRs and TV on demand across terrestrial, satellite and broadband networks, we can watch it on our laptops and even route our home TV across our broadband to our mobiles. This greater access to TV and video on demand seems to have allowed us to become more efficient in our viewing habits as we watch less TV now than we did 4 years ago. Another new form of TV is being introduced into this melee with the hope of getting us to spend more money on our favourite pastime, the much vaunted, mobile TV. Mobile operators seem to be shaping up for large investments in mobile TV, in spectrum, networks, applications and in TV programming but do we really want it, are we ready for TV on our mobiles? Getting people to watch and pay for mobile TV is going to be a big challenge for mobile operators. In the main people still view their mobile phones as communication rather than entertainment devices. The mobile TV experience will therefore have to be compelling if people are going to give a share of their increasingly precious wallet to pay for it. Most TV is not that compelling and when it is it can be recorded or is increasingly available on demand or time shifted. We can then enjoy it on that crisp HD TV we will all one day have. Early mobile TV services seem to be getting little traction. Virgin Mobile has just announced the demise of its mobile TV service less than a year after launch. Even after a £2.5million advertising campaign the service could only recruit 10,000 viewers. The lack of Handset options may have been a little off putting to the consumer as Virgin Mobile only released one “Tellyphone” the somewhat clunky Lobster. This was compounded by the lack of channel choice as the DMB (digital multimedia broadcast) technology used was an upgrade to the DAB radio network and therefore lacked the bandwidth required for multi-channel TV. Let’s look at some of the problems that mobile TV must overcome if it is to succeed. Firstly, there are in general two types of mobile TV, TV that is streamed across a mobile operator’s network and TV that is broadcast from a high antenna network such as used for traditional interactive digital TV (IDTV), although it is worth noting that due to the small aerial on a mobile phone that mobile TV networks will need to be denser than IDTV networks. Under the right circumstances broadcast TV gives a significantly better reception to the user than streamed TV which has those familiar variable bit rate and buffering problems of internet streaming services. This is further compounded by the fact that the consumers 3G phone has often roamed onto a 2.5G network that does not support the typically over 100Kbps transmission speed causing the service to either freeze or not launch at all. This lack of premium service delivery guarantee is an early headache for consumers and mobile operators alike. Due to the inherent problems with streaming most operators are looking in the long term at broadcast technologies. In Europe the EU has now officially sanctioned the DVB-H (digital video broadcast – handheld) broadcast standard. DVB-H requires spectrum to operate in, the more spectrum the more channels can be broadcast. Problematically many other new technologies are also looking for scarce spectrum capacity, these include WiMAX, HD-TV and even 3G as operators may look to upgrade their existing capacity. As regulators in the EU are taking a hands off approach to defining what available spectrum is to be used for, it will surely fall to the highest bidder and therefore the technology with the best potential return on investment capital. It may be worth mentioning at this stage that the mobile standard for WiMAX will soon be ratified and handheld WiMAX devices will be able to receive streamed IPTV creating a potentially disruptive market entrant. In the UK spectrum is so scarce for DVB-H that it will not be until 2012 when the analogue broadcast service is switched off in London that any spectrum becomes available that is unless the MoD decides to move old military radar into different spectrum. 96
    • The next problem to overcome is content licensing and rights issues. Broadcasters do not in general have all the mobile rights to their play-out. For example the BBC does not hold the mobile rights to the premiership and therefore would have to block out Match of The Day on a Saturday night. Mobile TV at this stage does not create enough revenue to justify broadcasters buying all the mobile rights to all their TV programmes therefore leading to the scenario that for large chunks of the day the mobile TV screen will be blank if standard linear channels are broadcast. This in turn leads to a user adoption and customer retention problem for mobile TV, which will in turn reduce the business case for paying more for content licensing. Mobile operators or MVNOs that are part of a quad/triple play may be able handle some of these issues better than standalone operators. If the mobile operator has a broadcaster as a sister company then a more holistic approach can be taken towards multi-platform TV. Mobile TV can then be used not as a killer application to drive mobile operator revenues but as a customer acquisition and retention tool. This would be done by offering mobile TV at a reduced price bundled in with other TV packages and on the same bill. Broadcasters could then leverage their spend on content licensing to extend it into mobile. Mobile operators that are not involved in a triple/quad play need to watch out that they do not end up disintermediated from the mobile TV value chain. We have already seen that Virgin Mobile was able to launch mobile TV with the associated mobile operator retaining none of the revenues. Most of all operators should be looking at how to catalyse the early market before the business case for short term implementation evaporates. Mobile operators have the advantage of being first to market with streamed mobile TV. They should look more to recent video phenomenon such as You Tube and the user generated content craze. The generation that will be the consumers of mobile TV are sitting in their bedrooms chatting on the internet, listening to music and keeping their Facebook up to date. I doubt they will allocate 20% of their monthly top-up to watch the News at Ten and Coronation Street on their mobiles. Of course there is always the sure fire hit of erotic mobile TV. This content genre has lead early user adoption of mobile video as well as many other media channels. Three UK and Three Italia already run relatively successful adult mobile TV services, which at the very least is getting young men used to consuming TV on their phones. 97
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    • The Mobile Web, Beyond Best Practices: Daniel Appelquist, Senior Technology Strategist, Vodafone Daniel Appelquist is an American expatriate, living in London and working for Vodafone Group Research & Development. As a Senior Technology Strategist and Program Manager, he focuses on Web and mobile Web topics. He represents Vodafone in the W3C and in the Mobile Web Initiative which he helped create, and within which he chairs the Mobile Web Best Practices Working Group. He has also been involved with the development of dotMobi, the mobile top level domain. Before joining Vodafone, Daniel was a pioneer in the field of Web content and the use of XML, first working with publishers in the mid 90s to put content (notably, the journal Nature) online using SGML and later developing XML-based content management systems at TheStreet.com. He is a published author, a speaker on technology topics, evangelist and sometime dot-com CTO. 99
    • The Mobile Web, Beyond Best Practices The Web is going through an upheaval. Once given up for dead, the Web is experiencing a period of intense innovation and change like never before. This upheaval is taking many forms, but one of the most profound is the convergence between Web and Mobile. This convergence is leading to a clash of civilisations, as the established Web culture and paradigm collides with the established Mobile industry paradigm. WAP. IMode. Chtml. Xhtml. Walled gardens. Off and on-deck content. dotMobi. Small-screen browsing. The field of Web mobility is littered with buzzwords that mean different things in different contexts. Keeping it Real In January 2007, Steve Jobs said of the current state of the Mobile Web: “It’s bad out there today,” and of the capabilities of the Apple iPhone, “it’s a real revolution to bring real Web browsing to a phone.” In fact, both Nokia and Opera had already brought so-called “real Web” browsing to the mobile platform. But what is “real” about the “real Web?” In fact, the word “real” is a code-word for the “PC” Web – Web sites that are designed for and tested exclusively on PC Web browsers with no thought given to mobile browsers. The concept of a “real” Web also implies a static Web. In fact, the Web is an evolving medium. In 1994, the “real” Web consisted of Web sites built for Netscape Navigator which usually assumed a 640x480 screen size In 1999, the “real” Web was Web sites built for Internet Explorer with a screen size of 800x600 usually assumed. By the end of 2004, people were designing for both Firefox and Internet Explorer and assuming 1024x768. So the concept of a static real Web is a non-starter. Other aspects of Web design and development have evolved as well, both in terms of product features and technologies in use to implement them. Each of these has required a mind-set shift. The shift to the Mobile is no different. In the case of mobile, many would argue that as the devices and browsers have matured to the point where they can show users “real” (i.e PC) Web content, there is no longer a need for a concept of the mobile Web or for mobile-specific user experience. But they would be wrong. What is happening now with the launch of advanced devices and advanced browsing technology is that smart content developers are finding ways to engage users with these technologies directly. They are developing mobile-specific services and user experiences that take advantage of the advanced features of these browsers rather than using them as a bad way to show PC-bound content. Even the iPhone benefits from mobile-specific user experience and mobile-centric design.Apple themselves released a developer guidelines document along with the iPhone which underscores this message. The Mobile is different. However, the tent of the Web is big enough to encompas this difference. To put it another way, it’s the Web, but not as we know it. 100
    • User Choice I ran an event called “Mobile 2.0” (yes, another buzzword – sorry) in November of 2006. In an attempt to define the term, I came up with an O’Reilly-esque checklist of attributes of “mobile 2.0” services. You can read the full article, but one item on this checklist was “Operator chooses -> User chooses.” In other words, in the emerging world of services on the mobile Web, the user is choosing the services, as opposed to the walled garden way where the operator is choosing for them. This shift is roughly analogous to what we have seen in the past with the migration from dial-up walled garden portals such as AOL and Compuserve to the open Web model. Developing services for the mobile Web, however, does not necessarily mean giving up all the advantages of the mobile platform. For example, use of SMS text messaging can be powerfully combined with use of the browser by sending users text alerts with links that bring them into mobile Web sessions. There are many options available for integrating direct mobile operator billing as well. Designing Services for the One Web But how do you create compelling products and services for users on this new platform of the mobile Web? Part of the answer is to adopt a multi-channel approach to design and delivery. The cornerstone of this approach is that Web sites can and should adapt themselves to suit the user’s device and browser. The success of the Web as a platform is partially due to its consistency of use. Web users can be fairly certain that Web sites can be accessed from whatever browser on whatever machine they happen to be on. Designing for One Web means designing services that support this paradigm of consistent access, but extending across multiple devices and multiple device form factors as well. This means that a Web site might appear or behave differently on different devices – because it adapts to that device’s specific features and capabilities. For example, an airline Web site when accessed from PC browser might allow the user to search fares, look up their air miles, see what a business class seat looks like, etc… The same Web site when viewed from a mobile device might also allow access to the same information, because use of the Web from mobile devices tends to be more “task oriented,” the site might provide up front access to often-used items for mobile users, such as “confirm my flight,” or “online checkin.” Because the mobile device has comparatively less screen real-estate, the “information architecture” of the services provided might also be different. Web-capable mobile devices also feature different input modalities than the PC-based Web. For most devices currently on the market as of this writing, that means use of a four-way rocker switch, not a mouse. Touch-screen devices are also playing an increasing role, however a touch screen, even though it is more versatile than four-way navigation from a Web perspective, is also not equivalent to a mouse. Neither of these modalities support, for example, the concept of a “mouse-over” (whereby some functionality, such as a pop-up, is activated by the user allowing their mouse pointer to hover over graphic or some other area of the screen). Part of the adaptation process is taking into account these differences in modality and creating user experience that fits the modality. 101
    • Creating Services that Flow Seamlessly Across Devices Use of the “One Web” thinking can enable you to more easily design services that engage users across multiple digital channels. But don’t be afraid to use mobile-specific mediums such as SMS text messaging to engage users when you know they’re mobile. Sending a text message to a user can pull them into a mobile Web session (as, for example, when that text is a notification of something the user needs to know, such as “your flight has been cancelled. Would you like to rebook?”) Some premier “Web2.0” content brands are jumping into the mobile Web feet first by developing offerings that enable their mobile users to use the same applications they’re used to interacting with on the PC- bound Web. FlickR, Facebook and Google are some particularly good examples. The concept of these mobile services by and large is a cut-down user interface which provides basic access to functionality from most mobile browsers. Some services, such as SoonR, are taking full advantage of the capabilities of advanced mobile browsers to build truly interactive applications inside them. These so-called “mobile Ajax” applications are on the cutting edge of the mobile Web. Currently, they are difficult to build and require a lot of customization for different browsers. This mirrors the rise of Ajax applications in the PC-bound Web, and just as with the PC Web, a number of commercial and open source efforts are under way to lower the complexity and barrier to entry for rich mobile Ajax applications. Testing Testing Testing The most important aspect of developing any mobile service is testing. Testing that your service works across a range of devices can be the difference between mobile Web nirvana and mobile Web purgatory. This also means understanding what devices you are targeting up front so you can be sure to test your service on the devices that matter. For example, for a service targeted towards the youth market, you would test on devices that are popular in that market, and not care too much about, say, the Blackberry. For services targeted towards mobile professionals, however, Blackberry should be top on your list. What Does the Future Hold? The Web is evolving and bringing Mobile browsers and usage paradigms into its global tent. This means some of the established “truths” about mobile development are flying out the proverbial window, however some established “truths” about Web development are flying out the same window. The result is a new manifestation of the Web and a new way to engage with people, what Alan Moore has called the “seventh mass medium.” As content and application developers begin to build ever-more compelling services for this medium, and as innovative technologies continue to come to market, it’s likely that within five years the majority of Web usage will be from mobile devices. Will this be a world of mobile-optimized Web applications and services or are we all going to be using these devices to pan and zoom around on Web sites that were designed for desktop PCs? I think the latter scenario is a rather dystopian vision of the future of the Web; a vision we can avoid by designing for one Web across a range of devices and thereby treating mobile users as first class citizens of the Web. 102
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    • Limited Use of Mobile Content Provides Advertisers With An Opportunity to Go It Alone: Jessica Sandin, Head of Mobile & Senior Consultant, Fathom Partners Jessica heads up Fathom’s mobile work, having many years’ experience in the mobile content and applications business. She is a highly regarded commentator on all aspects of the mobile data services sector and frequently speaks at industry events. Jessica is also co-vice chairman of the European board of the Mobile Entertainment Forum. Jessica joined Fathom from Informa Telecoms & Media, where she was principal analyst and portfolio head for mobile content and applications, responsible for a range of business intelligence products. She started her career as a journalist in 1995, with U.S. TV trade magazine Broadcasting & Cable. When moving to London, she joined Baskerville, working on their high-end TV and telecoms newsletters as journalist and editor. She was involved in launching industry publication Mobile Media (formerly Mobile Internet) in 2000, subsequently taking over responsibility for all publications, and later all premium products, in the mobile data applications and services area at Informa. 105
    • Limited Use of Mobile Content Provides Advertisers With An Opportunity To Go It Alone Two topics have made a come-back in the mobile space over the past year: mobile advertising and mobile internet. The mobile industry’s enthusiasm for both seems almost limit-less. It’s bordering on the hype we saw around both in the early days of WAP, but now technology is more developed and the expectations are therefore a bit more realistic. The two topics also reinforce each other, but here, the advertising industry needs to tread a bit carefully. Mobile is not the internet any more than the internet is TV (even if there’s TV on the internet, that’s not the same as TV on a TV set). Mobile, therefore, should be looked at as an advertising medium in its own right. If advertisers choose to regard it simply as an internet extension, they’re missing a trick. Mobile can be much more – and it’s different. It’s personal, inherently interactive, always with you and used in a different way to the fixed internet. In fact, the areas that are heavily used on mobile today have little to do with the internet at all. Advertisers looking to get serious face-time with mobile consumers in 2008 would do well to consider sponsored messaging or solutions allowing ads on the idle screen or at call set-up. Most consumers use these features daily – much fewer access any form of content services. According to M:metrics, which tracks mobile content usage, 86% of UK mobile users sent an SMS in 1Q07, but only 19% did any form of browsing on their phones. The lack of mobile internet inventory we’re hearing about is, then, not all due to industry fragmentation. Many hurdles to mobile internet advertising remain, including the lack of standards and measurement, but the lack of a substantial audience is quite fundamental. After all, advertisers are looking to buy time with consumers. To get people to spend time with content and services on mobile, you have to provide them with something worthwhile. You need to give consumers a compelling user experience and great content and services that they can find quickly and easily. So far, mobile has too often failed to deliver on these fronts. Encouragingly, we are seeing increased penetration of 3G and advanced devices that enable a better mobile data user-experience. The prospect of ad-funded content should also encourage the creation of more compelling content as well as better discovery mechanisms. After all, if your content is ad-funded, your revenues come with frequent usage that generates more ad- views. It’s not enough to make users pay once to download something. But, crucially, without an audience accessing content to begin with, it’s hard to bring advertisers on board. For advertisers, the availability of data-ready devices in consumers’ hands provides an opportunity that could also help the mobile content industry as a whole. Advertisers could play a key role in pushing users onto the mobile internet – and they could create a closer relationship with those users in the process. 106
    • Bringing an audience onto the mobile internet will be about finding the right entry point for each individual. Once you’ve found a service you really like using, you’ll realise there’s more out there and start exploring others. In such a scenario, driving discovery is crucial. This is where advertisers’ cross-media spend could become a driver. Cross-media campaigns which prominently integrate shortcodes that provide a WAP push to advertisers’ own, branded sites or downloadable applications could bring users to the mobile internet. And unlike mobile companies that are looking to generate revenues from mobile users, advertisers can bring users in with rewards of free content or coupons. If brands play their cards right and provide a compelling content or service experience, they could also hold onto the relationship with the consumer. It won’t be suitable for all brands, but worthwhile considering for some. These forms of sponsored content can help users discover other mobile internet services as well – and once they have, there’ll be more advertising inventory across the mobile web. 107
    • Conclusion: Gerry Drew, Chief Operations Officer, Tanla Mobile, UK Gerry is responsible for driving business through the Marketing, Media and Enterprise sectors. Prior to joining Tanla, Gerry held several positions at Opera Telecom. He was Director General for Spain and Portugal, before taking the role of Senior Vice President for the Americas in charge of interactive broadcast projects through Latin America, The Caribbean and North America. Before Opera, Gerry was Commercial Director for O2 where he managed several teams, including the mobile interactive services group responsible for delivering high profile broadcast propositions for TV shows such as ‘Big Brother’, ‘I’m a Celebrity, Get Me Out of Here’, and ‘Pop Idol’. 109
    • A Brave New Future for Mobile Introducing mobile into the marketing and advertising mix represents the single largest evolution in the past decade of marketing for brands and content owners alike. Whether the aim is to drive revenues, cross sell products or acquire customers, the true power and potential of mobile is soon to be realised. This brave new world will not be without its challenges. Those adopting mobile marketing will need to arm themselves with the right tools, teams and find partners who truly understand the sector. The power and influence that mobile marketing can bring to a brand is un-paralleled when executed in the right way, there are many great examples of this. Similarly there are examples where brands have been adversely affected when campaigns are poorly managed. Remember, “The quality and history of your relationship with the customer is the only source of competitive advantage that ultimately cannot be copied”. As a trusted service provider, Tanla Mobile works proactively with industry regulators, industry bodies, mo- bile networks and clients to create an environment for the promotion, content and overall operation of mobile services, that is safe and transparent for the consumer to use. We play a key role in providing our clients with advice to ensure mobile services are compliant with the latest regulatory codes of practice. It is our business to protect yours. The ease of use and the ‘always connected’ nature of the mobile device has made it the preferred medium for a diverse range of products and services, from delivering entertainment to enabling financial transac- tions. Not only is the number of subscribers growing worldwide but even their usage has evolved rapidly from voice-calls to SMS and now to downloading full-length audio / video tracks and increasingly browsing the internet. It has quickly become an integral part of daily life, it is our phone book, gaming device, music player, it is the link between the ‘real’ world and the ‘virtual’ world. Mobile marketing gives brands and retailers the capability to personally connect to consumers by interact- ing with them wherever they are. As such, provided there is permission, mobile technology allows a level of intimacy and interactivity not previously achievable. People have their mobile phones with them wherever they are – at work, at home, at play, letting you build a strong one-to-one relationship with each consumer. However, it is essential you always think ‘customer’ and put yourself in your customer’s shows when running any mobile marketing campaign. Who is your audience? What are your key campaign messages? Where does mobile fit into your overall campaign? With mobile marketing the critical success factor is the context. Context of the message, it’s environment and the recipients readiness to receive. With huge amounts of effort going into the development of mobile content, it isn’t at all surprising that de- velopers and service providers are turning their attention to mobile advertising to fund their efforts and build profits. We are now at the stage where conditions are almost in place for advertising to deliver the levels of revenue needed to allow mobile advertising to hit critical mass. There is a huge active mobile user base, hungry for the next wave of content developments. There are a large amount of good quality phones in use with decent cameras to allow broad user participation, and above all there is high capacity storage and fast data speeds available across the board. It is important that mobile advertising developments keep pace with the objectives of mass market brands and the preferences of users in order to fully launch the next mobile revolution. The industry needs to strike a balance between the right amount of advertising to pay for content and services, coupled with lower data charges. 110
    • The outlook is extremely positive, with the industry awash with actual and planned ad-funded content or supported services from the likes of Orange and T-Mobile. 3UK for example reported some 6 million clips have been viewed by over 600,000 customers of its ad-funded service since April 2007. Advertisers making use of this channel include a range of household names whose ads bracketed video streams on subjects such as breaking news, weather and horoscopes. We are fast approaching the tipping point for mobile advertising, service providers such as Tanla are providing the capability and the global consumer brands are beginning to spend. The link between the two are the consumers, who seem ready to accept the presence of ads across mobile content and services as long as they are accompanied by compelling viewing and reasonable pricing. 111
    • The Tanla Mobile Marketing and Advertising Guide has been edited by Helen Keegan, a marketing communications professional with more than 15 years experience in retail and marketing management and consultancy for Selfridges, Episode, Inter-Continental Hotels, Hewlett Packard, First Group and TNT. Helen has specialised in mobile marketing, in particular how to initiate and leverage customer relationships by using the mobile phone, for more than 7 years. Helen was at the birth of the mobile marketing industry in 2000 as head of customer experience at ZagMe, the location based mobile marketing pioneer. She was instrumental in recruiting more than 85,000 customers at Lakeside and Bluewater shopping malls and ran more than 1,500 SMS marketing campaigns for over 150 leading retail clients, agencies and brands including Esprit, Nike, TopShop, HMV and Waterstones. Today, Helen runs her own mobile marketing and media consultancy, BeepMarketing, developing mobile strategies, creating mobile media and implementing mobile marketing campaigns for many blue-chip and agency clients including Scottish Courage, UIP, Sony Ericsson, Emap, Samsung, Direct Line, ENO and Danone. She also runs Swedish Beers, a (roughly) quarterly mobile networking event in London and Barcelona and is also a founder member of Women in Mobile Data, a global association for women working in mobile, promoting mobile content and media for niche markets. Helen speaks regularly on the hot topic of mobile marketing and media at seminars, conferences and networking events. Helen also runs mobile marketing courses at the Institute of Direct Marketing, Academy Internet, e-consultancy and New Media Knowledge and is a guest lecturer in marketing at the Universities of Westminster, Newcastle and Hertfordshire. She writes a popular blog on mobile marketing and media and contributes to group blogs on the same topic. And when she’s not doing that, she becomes Raindrop and leads a brownie pack in South West London. www.beepmarketing.com www.technokitten.com www.swedishbeers.co.uk 112
    • Appendix Emoticons :-( Sad face can’t cu 2nite :-( :-) Smiley face can’t wait 2 cu 2nite :-) :@) Pig don’t b a :@) ;-) Winking face ;-) :-o Surprised face seen g’s hair? :-o :-D Laughing face gr8 joke :-D :-l Confused face What do u mean? :-l 8-) Smiley face wearing glasses I need 2 get new specs 2 day 8-) %*) Drunk I’m drunk %*) >:< Furious im >:< with u 8-{) Smiley wearing glasses and a tache nvr said I was cool 8-{) >:) Little devil u >:) + And/plus U + me 2getha 4eva & And (more formal) & me 1 One any1 coming? 2 to, too me 2 2day today c u 2day 2moro tomorrow c u 2moro 2nite tonight can’t w8 4 2nite 4 For, four Call me 4 more info 4wd Forward Can u fwd me that email aka also known as aka big guy! atb all the best atb luv g b be 2b or not 2b b4 before cu b4 then bcnu be seeing you bcnu now Bfn Bye for now bfn brb be right back ill brb 2 u bwd backward u r bwd c see can u c me cu see you cu b4 doin doing how r u doin? f2t free to talk r u f2t? fwd forward fwd this txt 2 g pls gr8 great gr8 2 cu kewl cool u r so kewl l8 late im l8 l8r later c u l8r lol laughing out loud I was lol :-D luv love luv a coffee med immediate not med mob mobile fone me on mob msg message send me a msg ne1 anyone hav u seen ne1 2day? no1 no-one no1 I know 113
    • oic Oh, I see oic wot u mean pcm please call me pcm now! pls please now pls ppl people hi ppl r Are Where r u? ru are you? ru ok? sk8 skate get ur sk8s on! sum1 someone sum1 wants 2 tlk 2 u thx thanks thx 4 coming tix Tickets Where r the tix? txt Text message Send me a txt u you I luv u ur you are/your ur l8 w8 wait cant w8 4 2nite w/ with ru w/ us w/o without I’ll go w/o u this time wan2 want to I wan2 cu wiv with I wan2 b wiv u wknd weekend cu @ wknd wld would wld u wot what wot ru talkn about? x kiss save ur xxs xoxoxox hugs and kisses xoxoxoxox yr you’re/your yr cute/ yr turn 114
    • Glossary of Terms Term Definition 2G Second Generation mobile networks, such as GSM 2.5G An interim stage between 2G and 3G, using network technologies such as GPRS on GSM infrastructure. This is what is currently used by the UK networks to enable services such as Vodafone Live and T’Mobile’s t-zones. 2.5G is a stepping stone between 2G and 3G wireless technologies. 2.5G provides some of the benefits of 3G (e.g. it is packet-switched) and can use some of the existing 2G infrastructure in GSM and CDMA networks. While the terms “2G” and “3G” are officially defined, “2.5G” is not. It was invented for marketing purposes only. 3G Third Generation, also known as UMTS. The future international standard for mobile phones, allowing faster and more interactive mobile communications, enabling multimedia applications and advanced roaming features. 4G Fourth-Generation Communications System (4G), is a term used to describe the next step in wireless communications. A 4G system will be able to provide a comprehensive IP solution where voice, data and streamed multimedia can be given to users on an “Anytime, Anywhere” basis, and at higher data rates than previous generations. Airtime Airtime refers to the time tracked by your service/network provider to determine your billing costs. It includes making/receiving calls, retrieving Voicemail, text/picture messaging, email and faxing. ATM Asynchronous transfer mode. A very high-speed transmission technology. ATM is a high band width, low-delay, connection-oriented switching and multiplexing technique. There are efforts underway to develop wireless ATM networks. Bandwidth A relative range of frequencies that can carry a signal without distortion on a transmission medium. Bluetooth Voice and data connections between devices (e.g. PDAs, mobile phones, computers, cash registers and others) through short range, two-way digital radio. This enables devices to share information and synchronise data usually within 30 feet but can be greater with commercial systems. BPS Bits per second. The unit of measurement for the rate at which data is transmitted. Byte The unit for measuring electronic data and computer storage Cache A temporary storage area where frequently accessed data can be stored for rapid access. CDMA Code division multiple access. Using military technology originally developed by the Allies in WWII, it spreads transmisions over all available frequencies. Conversations are assigned a code which is used to reassemble it upon arrival. This allows multiple calls to be carried over one channel. CDPD Cellular digital packet data. Technology that allows data files to be broken into a number of ‘packets’ and sent along idle channels of existing cellular voice networks. cHTML Compact Hypertext Mark-Up Language. A subset of the HTML language but excludes some images, tables, multiple fonts and background colour. CLID Caller line identification – this enables the receiver to know who has sent the original message – especially important in mobile marketing and IVR systems to enable 2-way communication. Compression Reducing the size of data to be stored or transmitted in order to save transmission time, capacity, or storage space. Contract See Pay Monthly. Cradle A stand or bracket designed to hold a phone or handheld computer in place on your desktop, or mounted to your dashboard. It may incorporate recharging or data transfer functions. 115
    • Term Definition Digital Modulation A method of encoding information for transmission. Information is turned into a series of digital bits - the 0s and 1s of computer binary language. Digital transmission offers a cleaner signal and is less immune to the problems of analogue modulation such as fading and static. Encryption The transformation of data, for the purpose of privacy, into an unreadable format until reformatted with a decryption key. EMS Enhanced messaging service. EPOC An operating system for handheld computers and mobile phones with Web access. It’s an open operating system developed by Psion, and now licensed by Symbian. EPOC’s main competitor is Windows CE. Extranet An Intranet-like secure network, which a company extends to conduct business with its customers and/or its suppliers. GPRS General Packet Radio Service (GPRS) is a Mobile Data Service available to users of Global System for Mobile Communications (GSM) and IS-136 mobile phones. GPRS can be used for services such as Wireless Application Protocol (WAP) access, Short Message Service (SMS), Multimedia Messaging Service (MMS), and for Internet communication services such as email and World Wide Web access. 2G cellular systems combined with GPRS is often described as “2.5G”, that is, a technology between the second (2G) and third (3G) generations of mobile telephony. GPS Global positioning system. A satellite-based system for determining your location within 10 to 100 metres, depending on the accuracy of the equipment. Originally used for military and scientific applications, GPS receivers are now widely available in everything from cars to wristwatches. GSM Global system for mobile communication. The standard digital cellular system in Europe, Asia, and other parts of the world. It is a variation on TDMA, with a data transfer rate of 9.6Kbps. HDML Handheld device markup language. A modification of standard HTML, developed by Unwired Planet, for use on small screens of mobile phones, PDAs, and pagers. HDML is a text-based markup language, which uses HyperText Transfer Protocol (HTTP) and is compatible with Web servers. HTML HyperText markup language. An authoring software language used on the Web. HTML is used to create Web pages and hyperlinks. HTTP HyperText transfer protocol. The protocol used by the Web server and the client browser to communicate and move documents around the Internet. i-mode™ “Information-mode” is the wireless technology developed by NTT DoCoMo of Japan, roviding access to Internet-based services via mobile phones. IMEI International Mobile Equipment Identity. A unique serial number used on digital mobile phones. IMSI International mobile station identifier. A number assigned to a mobile station by the wireless carrier uniquely identifying the mobile station nationally and internationally. See also MIN, TMSI Infrared A band of the electromagnetic spectrum used for airwave communications and some fiber- optic transmission systems. Infrared is commonly used for short-range (up to 20 feet) through-the-air data transmission. 116
    • Term Definition Interconnection The routing of telecommunications traffic between the networks of different communications companies. Interconnect fees Fees that are payable to the network operator for carrying another network’s SMS Internet Phone A phone capable of accessing the Internet (via WAP). Intranet An internal network, which is private or employs a firewall to secure it from outside access, that supports Internet technology. The Intranet is used for inter-company communications and can be accessed only by authorized users. IP Internet protocol. See TCP/IP. IrDA Allows mobile phones, PDAs, and other devices to connect to each other for various purposes. Infrared is a wireless technology that uses a beam of invisible light to transmit information. IVR Interactive voice response. This uses a well-established telephone technology whereby the users typically interact by pressing the keypad (1 for yes, 2 for no) in a call centre environment. Can also be used effectively for marketing, billing on premium rate, TV interaction and games. Java (J2ME) Java 2 Micro Edition. A feature that allows the device to run specially-written applications. J2ME applications can provide specific functions such as a tip calulator, they can be games, or they can be custom-written corporate applications. LAN Local area network. A data communications network, typically within a building or campus, to link computers and peripheral devices under some form of standard control. Megabyte A measurement of electronic data or computer memory. One megabyte is usually thought of as 1,000 kilobytes (although technically it is 1,024 kilobytes). Megapixel One million pixels. Pixels are the tiny coloured dots that create digital pictures. The greater the number of pixels in a photo, the higher the resolution (quality) of the image. Refers to the quality of a camera.. the higher the MP the higher the potential resolution of the pictures taken. MIN Mobile identification number. A number assigned by the wireless carrier to a customer’s phone. The MIN is meant to be changeable, since the phone could change hands or a customer could move to another city. See also ESN, IMSI, TMSI. OS Operating system. A software program, which manages the basic operations of a computer system. These operations include memory apportionment, the order and method of handling tasks, flow of information into and out of the main processor and to peripherals, etc. Packet A bundle of data organized in a specific way for transmission. The three principal elements of a packet include the header, the text, and the trailer (error detection and correction bits). Packet Switching Sending data in packets through a network to a remote location. The data sent is assembled into individual packets of data. Palm OS The operating system originally designed for the Palm series of PDAs. Palm has since been purchased by 3Com, but they still develop and license the OS. Unlike some operating systems used by other handhelds, the Palm OS is built to function on a particular type of device. PAYG (Pay as you Go) All networks offer PAYG (or pre-pay) phones, where there is no contract or monthly line rental, and you ‘top up’ your phone by purchasing credit vouchers in order to make calls. The biggest advantage is it is impossible to run up a huge phone bill as you can only make calls once you have already paid for them. The disadvantages are you tend to pay more for the initial phone, there are various restrictions on use compared to contract phones and calls are generally more expensive than on a normal contract tariff. 117
    • Term Definition Pay monthly Pay monthly (or contract) is a payment scheme whereby a 12 or 18 month contract is agreed between the customer and a network. A monthly line rental is paid for a tariff which normally includes free talk time minutes and text messages. When signing up to a pay monthly tariff, handsets are generally given to the customer at low cost or free. PCS Personal Communications Services An all-digital set of cellular services operating in the 1850-1990 MHz bands. PCS technologies include CDMA, TDMA, AND GSM. PDA Personal Digital Assistant. A small handheld device commonly used as a mobile computer or personal organizer. Many PDAs incorporate small keyboards, while others use touchscreens with handwriting recognition. Some of these devices have Internet capabilities, either through a built-in or add-on modem. Picture and video messaging The ability to send a photo or video clip from a compatible mobile phone to another mobile phone or email address. The service is sometimes known as MMS, which stands for Multimedia Messaging Service. PIM Personal information manager. Also known as a ‘contact manager,’ is a form of software that logs personal and business information, such as contacts, appointments, lists, notes, occasions, etc. Pocket PC Formerly Windows CE. An upgraded version of Windows CE that offers greater stability and a new interface. Features include mobile Internet capabilities, an e-book reader, and handwriting recognition. Portability Mobile Number Portability (MNP) is the ability to retain a mobile number when moving or porting from one mobile carrier to another. This process is also sometimes called migrating or transferring. To begin the process, contact your current Service Provider (the company your contract is with) and ask for a Porting Authorisation Code (PAC). The PAC is your authority to request a transfer and will allow the Network you wish to move to, to request your number be transferred to them. However the PAC is only valid for 30 calendar days so you must action your request promptly. Portal Provides access to WAP services and content. POS Point of sale terminal. A type of computer terminal used to collect and store retail sales data. Wireless POS terminals are often used for remote and temporary locations. Predictive Text Input A technology which allows you to enter text by pressing only one key per letter. The phone will automatically compare all of the possible letter combinations against a built-in dictionary of words. The current Predictive Text Input implementations are T9, iTAP and eZiText. Protocol A set of rules used by computers to communicate. SIM Subscriber Identity Module. A smart card inserted into a phone containing your phone book and network details. Smart Card A credit card-sized card with a microprocessor and memory. Smart Phone A phone with a microprocessor, memory, screen and a built-in modem. The smart phone combines the some of the capabilities of a PC on a handset. SMS Short Message Service. Text-only communication between phones. Also called a text message. 118
    • Term Definition Symbian Symbian is a mobile operating system (OS) targeted at mobile phones that offers a high-level of integration with communication and personal information management (PIM) functionality. Symbian OS combines middleware with wireless communications through an integrated mailbox and the integration of Java and PIM functionality (agenda and contacts). The Symbian OS is open for third-party development by independent software vendors, enterprise IT departments, network operators and Symbian OS licensees. Synchronisation Also known as ‘replication,’ it is the process of uploading and downloading information from two or more databases, so that each is identical. T9 See Predictive Text Input TCP/IP Transmission control protocol/Internet protocol. The standard set of protocols used by the Internet for transferring information between computers, handsets, and other devices. TDMA Time Division Multiple Access. Divides cellular channels into three time slots, increasing data capacity. This lets multiple users or conversations to be carried on the same channel. UMTS Universal Mobile Telephone System, also called 3G. URL Uniform Resource Locator. The address of a WAP site or Web site. Wallpaper Graphic/picture/image spread across the background of your mobile phone/computer screen. WAN Wide area network. A network that uses local telephone company lines to connect geographically dispersed sites. See LAN. WAP Wireless Application Protocol. An open, global specification that allows mobile users with enabled mobile devices to easily receive and interact with Internet information and services. Windows CE A version of Windows designed to run on PDAs or other small devices. CE was renamed Pocket PC with the version 3.0 release. WISP Wireless Internet Service Provider, also called a portal. WML Wireless Mark-up Language. A programming language for WAP. XHTML A reworking of HTML 4.0 designed to work as a application of XML. It allows anyone to create sets of markup tags for new purposes. XML Extensible Markup Language. A standard for creating expandable information formats that allow both the format and the data to be shared. XML is similar to HTML in that both use tags to describe the contents of a document. However, while HTML only describes how the data should be displayed or used, XML describes the type of data. This allows anyone who can interpret those tags to use the data they contain. 119
    • Events and networking 160 Characters: http://www.160characters.org Industry Association. Monthly knowledge and networking events run in conjunction with NOC Online in London. Chinwag: http://www.chinwag.com UK digital media marketing email newsgroups. E-Consultancy: http://www.e-consultancy.com Interactive media resource. Mobile Data Association http://www.mda-mobiledata.org or http://www.text.it Latest figures of mobile usage and news. Mobile Entertainment Magazine: http://mobile-ent.biz Organise regular meet-ups. Further information can be found on their website. Mobile Marketing Association: http://www.mmaglobal.co.uk Global industry association that aims to stimulate the growth of mobile marketing and associated technologies. M:Metrics: http://www.mmetrics.com A research house specialising in mobile statistics. Free data is published on a quarterly basis. Mobile Mondays: http://mobilemonday.org.uk London part of the global Mobile Mondays network covering all aspects of the mobile industry including marketing and media. Events held in cities globally. See the website for links to other chapters. Ofcom: http://www.ofcom.org.uk Mobile ownership figures. PhonepayPlus: http://www.phonepayplus.org.uk Industry-funded regulatory body for all premium rate charged telecommunications services. Swedish Beers: http://www.swedishbeers.co.uk A quarterly networking event for anyone interested in what’s happening in mobile held in London and Barcelona. W2Forum http://www.w2forum.com Statistics, news, reports, forum, conferences and events. 120
    • Further reading “Next Generation Wireless Applications”, Paul Golding “Mobile Marketing: The Mobile Revolution”, Matt Haig “Roam, Making sense of the mobile internet”, Bruno Giussani “Smart Mobs: The Next Social Revolution”, Howard Rheingold Magazines (print) covering mobile topics New Media Age: http://www.nma.co.uk Mobile Entertainment: http://www.mobile-ent.biz Revolution: http://www.brandrepublic.com/revolution Stream: http://www.streammag.com Blogs Mobhappy: http://www.mobhappy.com A blog about mobile technology and business Mobile Marketing Magazine: http://www.mobilemarketingmagazine.co.uk Reporting the news in the mobile marketing sector Musings of a Mobile Marketer: http://www.technokitten.com A blog about mobile marketing and media and a bit about day to day life working in mobile Rudy’s m-trends: http://www.m-trends.org A blog with a Spanish flavour (in English) about mobile trends 121
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    • Acknowledgements Tanla Mobile would like to thank all the people who contributed to this guide. Ben Tatton-Brown, Head of Advertising Sales, EMEA, Medio Systems Blue Brand Communications, Blue Integrated Ltd Daniel Appelquist, Senior Technology Strategist, Vodafone Gillian Kennedy, Managing Director, Emerging Media Platforms Ltd Helen Keegan, Found and Managing Director, Beep Marketing Jessica Sandin, Head of Mobile & Senior Consultant, Fathom Partners Mike Short, Vice President R&D, O2 Europe Paul Doran, Switch Communications Paul Goode, m:metrics Russell Buckley, Managing Director Europe, Admob Tomi Ahonen, Author & Consultant Steve Flaherty, Mobile Consultant, Keitai Culture Tanla Mobile: Anuj Khanna, Brian Brady, Gautam Sabharwal, Gerry Drew, Jeff Spirer, Lee McElhinney, Subba Rao and D. Uday Kumar Reddy. 123
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    • Sources & References 160 Characters www.160characters.org Buddyping www.buddyping.com Dreamblog www.dreamblog.co.uk GP Bullhound www.gpbullhound.com GSM Association www.gsmworld.com Economist www.economist.com Informa Telecoms and Media www.informa.com Jaiku www.jaiku.com Juniper Research www.juniperresearch.com Marketing Week www.marketingweek.co.uk M:Metrics www.mmetrics.com Mobile Data Assocation www.themda.org MORI www.ipsos-mori.com Ofcom www.ofcom.org.uk Shazam www.shazamentertainment.com Siemens www.siemens.com Strategy Analytics www.strategyanalytics.net Texperts www.texperts.com Wikipedia www.wikipedia.org 125
    • Interactive Mobile Marketing Solutions Mobile Marketing Mobile Advertising ADVERT TO COME Mobile Campaigns Mobile Portals Direct Marketing Campaigns. On-pack Promotions. Interactive Competitions. Text Marketing. CRM. Direct Response. Participation TV. Mobile Voting. Mobile Search Advertising. Mobile Payments. UK: E: sales@tanlamobile.com T: +44 (0) 20 7494 5600 US: E: sales-usa@tanlamobile.com T: +1 (0) 212 786 7539 India: E: sales-india@tanlamobile.com T: +91 (40) 4009 9999 www.tanlamobile.com
    • Photographs: © Getty Images Design & Layout: Blue Brand Communications team, Blue Integrated Ltd Published by: Tanla Mobile, 39 Charing Cross Road, London WC2H 0AR © Tanla Mobile 2008. All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, including photocopying, recording or by any storage or retrieval system without prior written permission from Tanla Mobile. Notice of Liability: While care has been taken to ensure the accuracy of the information contained in this guide, it is provided on the understanding that no responsibility is attached to Tanla Mobile or the author, and we shall not be liable for any consequential loss or damages which arises out of, or in connection to, information contained in this guide. This guide contains broad outlines and recommendations only. Consult with your regional regulatory authorities and take appropriate legal advice before commencing a mobile marketing or advertising campaign.
    • About Tanla Mobile Tanla Mobile is a leading innovator of next-generation mobile application solutions, m- commerce and interactive services. Tanla Mobile specialises in developing mobile applications and platforms for the Mobile Telecoms, Media and Digital Communications sector. Tanla Mobile works in partnership with global mobile operators across Asia, Europe and North America to deliver and bill mobile content over SMS, WAP, MMS and Video. With direct connections and commercial revenue sharing agreements with global mobile operators including 3 (Hutchison 3G), O2, Orange, T-Mobile, Vodafone, Virgin Mobile and several Indian network operators, clients use its carrier-grade technology platform and application development expertise for immediate deployment of interactive mobile services. Its product suite includes Mobile Payments Solutions, Campaign Management, Content Management, 3G Video Management and Interactive TV Management applications, all of which are supported by powerful online reporting and CRM tools. Based at Hyderabad, Tanla is currently in process of expanding its global operations having already established offices in London, New York and Singapore. Tanla Mobile is a wholly owned subsidiary of Tanla Solutions Ltd, www.tanlasolutions.com, an established Telecom Infrastructure Solutions provider with strong coverage in the Asia Pacific region. Through its relationship with Tanla Solutions, Tanla Mobile has immediate access to a large team of highly-skilled software engineers and analysts providing application development and technical support from their 300-seat facility in India. This offshore development capability results in a fast time to market with new technologies, and significant cost and time savings for clients. For further information visit www.tanlamobile.com Contact Us UK US INDIA 5th Floor 90 Park Avenue Tanla Technology Centre 39 Charing Cross Road New York 10016 Hitech City Road London WC2H 0AR Madhapur Hyderabad 500081 Tel: +44 (0) 20 7494 5600 Tel: +1 (0) 212 786 7539 Tel: +91 (40) 4009 9999 Email: sales@tanlamobile.com Email: sales-usa@tanlamobile.com Email: sales-india@tanlamobile.com