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

1. Inspiring brands to communicate with the mobile consumer
September 2011
Permission-based marketing
An industry split over growth prospects
Mobile Consumer Trends Update
Our data shows Android surging, but iPhone still leads usage
Also in this issue
OpenMarket White Paper: Mobile payments and crediting / Poynt /
The Workshop Challenge / Guest column: Essence on mobiles /
Gee W Bush and Toe-Knee Blair on mobile ad opt-in / Data points ...
www.mobilesquared.co.uk
www.mobilesquared.co.uk

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3. editorial
Welcome to the first issue of our rebranded monthly magazine - access: mobile. Our
new branding will also be rolled out across commercial events, the weekly research
Nick Lane, chief strategy analyst and analysis updates, under the guise of access: mobileROADSHOW and access: mobileW-
nick@mobilesquared.co.uk EEKLY
.
Tel: (44) 118 977 6902
Mob: (44) 7976 057 052 The single branding will see our access: mobile portfolio focus on connecting brands
Skype: nick-lane1 and businesses with mobile consumers. Our data, research, knowledge and insight
will cover mobile marketing and advertising, social media, internet, entertainment,
content and apps.
Gavin Patterson, chief markets analyst
gavin@mobilesquared.co.uk To celebrate our rebranding, mobileSQUARED is running a competition giving away
Tel: (44) 1904 675 945 sponsorship worth £10,000. The winner will receive Gold Sponsorship and a Keynote
Mob: (44) 7940 272 941 presentation at our access: mobileROADSHOW event in London on Nov 9th.
Skype: gav.patterson
How do you enter? It’s very simple – we want to hear about your/your clients’ most
successful mobile consumer case study to drive mobile interaction, awareness and/
Caroline Baldwin, reporter & researcher
or revenues. It could be on apps, online, WAP, a campaign, social media, a branding
caroline@mobilesquared.co.uk proposition, retail… you name it. The submission judged to be The Best of the Best
Tel: (44) 118 979 5610 will win. Simple! Rules and guidelines are now up on our website:
Skype: cl_baldwin1 www.mobilesquared.co.uk
Becci Price, PR & marketing In the meantime, I hope you enjoy reading access: mobile. In this issue, you will
becci@mobilesquared.co.uk find an extract from our first Mobile Consumer Trends quarterly update, featuring
headline data and forecasts based on 2Q11 consumer panel research covering the
Tel: (44) 118 979 5610
usage of mobile internet, applications, advertising, opt-in marketing and commerce.
Skype: becci_p Future issues will explore each of these five areas in greater detail - including break-
outs by age, gender, location and device type.
Aman Toor, client services manager
aman@mobilesquared.co.uk You will also find exclusive analysis of permission-based marketing, extracts from
Tel: (44) 118 977 6902 one of our recent White Papers on mobile payment and crediting, the latest news,
data and analysis from our website, guest articles and the Workshop Challenge -
where mobile advertising experts battle it out to create the
How to find us: best mobile ad campaign and sit atop our leader board -
mobileSQUARED HQ, think Top Gear’s star in a reasonably priced car!
St Pauls Clock House,
Wokingham. Finally, I’d like to wish a welcome return to our covert
Berkshire, RG41 1EX, UK analysts, Gee W Bush & Toe-Knee Blair, who are still
searching for the mobile advertising revenues of mass
ISSN no. 1759-6483
construction, while in the October issue it will be nice to see
Published in the UK 12 times per year the appearance of our new number-cruncher extraordinaire,
in pdf format Bruce Foresight ... to see the appearance, nice!
No part of this publication may be
copied, photocopied or duplicated
without prior written permission from the publisher,
D2 Mobile Ltd Gavin Patterson
Editor, chief markets analyst
contents
mobile is a trading name of
SQUARED
D2 Mobile Ltd.
The mobileSQUARED team offers unique forecasting,
analysis, research and insight on the mobile page 4 Feature - Permission-based marketing
market, providing highly focused reports and
bespoke intelligence. We tailor our approach to the
page 8 Data - Smartphone usage
requirements of each project and use our network of page 9 Column - Gee W Bush and Toe-Knee Blair
global network page 10 Analysis - Mobile Consumer Trends
of contacts.
page 13 Workshop Challenge
Our extensive market knowledge stems from years page 14 News roundup
covering the mobile industry meaning that we’re page 16 Data - Apps and burgers
in a position to respond immediately to market
developments.
page 17 Company profile - Poynt
page 18 White Paper - OpenMarket
All rights reserved. Opinions expressed by individual page 20 Column - Matt Issacs from Essence
contributors may not personally reflect the views of D2
Mobile Ltd. Whilst reasonable efforts have been made to
ensure that the information and content of this publication
was correct as at the date of first publication, neither D2
Mobile Ltd nor any person engaged or employed by D2
Mobile Ltd accepts any liability for any errors, omissions or
other inaccuracies. Readers should independently verify any
facts and figures as no liability can be accepted in this regard.
Readers assume full responsibility and risk accordingly for
their use of such information and content.
twitter.com/ facebook.com/
©2011 D2 Mobile Ltd. mobilesquared mobilesquared.co.uk mobilesquared
www.mobilesquared.co.uk 3

4. feature
Permission-based marketing: An industry
split over prospects for growth
Permission-based marketing (PBM) Alastair Shortland, CEO of Txtlocal, anywhere between 60-70% of com-
is on the rise as more and more which provide bulk SMS and mobile panies yet to adopt the medium.
brands and businesses, not to marketing services, claims to have
mention the operator community, 75,000 businesses using the service Cost and education
realise the potential of using text and expects a significant growth Cazalet believes there’s still a huge
to communicate with consumers is over the next 12 months. amount of work to be done to edu-
more direct and more likely to be cate companies about the power
read than email. However, the mo- Similarly, Henry Cazalet, director of of PBM to their business. “The key
bile marketing industry appears to Text Marketer also thinks that mo- word here is permission,” adds Ca-
be split over just how fast PBM will bile marketing is undergoing rapid, zalet “The reason why SMS mar-
grow over the next 12-24 months. organic growth. “Mobile market- keting works so well is that it’s not
While a number of companies are ing, or PBM, has been around since really perceived as spam, because
predicting significant growth in the 1998, but there aren’t that many we don’t get spam onto our mobile
sector, others claim some of the companies using the mobile phone as we do on our email. It’s only in
biggest spenders have undergone as a way to market; probably about the last 2 or 3 years that more and
enforced cutbacks and that will 30% of the UK.” more companies have started to
stifle growth in the near-term. look at PBM and find out how and
Additional research by mobileSQUARED why it will work for them.”
One of the most salient points to suggests this figure could be low.
arise, is that in developed mobile The Direct Marketing Assocation Any business can set up a mobile
markets between 30-40% of com- (DMA) believes the figure is around SMS campaign, from the very small
panies are using mobile, and PBM in 40%. Across Europe, for example, SMEs and local pubs alerting a few
particular. While the need for educa- the penetration of PBM in companies of their regulars to special offers,
tion around PBM remains critical to is believed to be lower than in the to big brands such as Argos which
secure growth, there is undoubtedly UK. That means, the opportunity boasts an opt-in database of over 6
an enormous potential. for PBM across Europe, is vast, with million customers.
4

5. a month and companies that spend keting and change how and what
£7,000 a month and upwards. users opt-in to receive via email.
“We’ll deal with your local pub, and But not everyone agrees with the
we’ll deal with big brand names as resurrection of email marketing.
well. The way I tend to explain it Matt McNeill, CEO of Sign-Up.to,
is that we’re a Post Office, where told mobileSQUARED that ”permission-
you get the little old ladies in to based marketing really is the only
post their letters, but they might sustainable form of direct marketing
also be next to a major PLC com- which has a very long term future.
pany,” explains Bibby. “About 75% It’s about making users aware that
However, Mark Brill, CEO of Forma- [of our customers] are the smaller it’s a much more targeted tool than
tion which offers SMS marketing businesses and 25% are the bigger email. The clients who get the most
through the channels Txt4ever and businesses.” out of it are the ones who plan in
Text4everywhere, has a more cau- advance and know what they want
tious view of the immediate future Companies can start a PBM cam- to achieve from the campaign.”
of mobile marketing. paign with as little as £2. With SMS
messages starting at an average of SMS spam
“On the whole we are all experienc- 3.7p per message, it is a cost which The biggest deterrent for companies
ing growth,” he told mobileSQUARED. is not associated with an email using PBM to communicate with
“The government was probably the campaign. their customers is the ever-present
single biggest spender in mobile in threat of being labelled a ‘spammer’,
the UK this time last year, but they’re A threat to SMS marketing? a legacy carried over from email
no longer in this position because of “Although the cost of sending a marketing. Cazalet of Text Marketer
cutbacks. It’s not a case of saying it’s all text message is peanuts, send- is concerned about SMS hitting a
growth, but there are areas which ing it to 10,000 people isn’t,” says critical mass and negatively af-
are not necessarily expanding.” Jon Mew, director of mobile opera- fecting brands. “There’s a danger
tions at the IAB (Internet Advertis- because the more companies that
This is also highlighted by Steven ing Bureau). “It starts to become use these tools, the more texts
Bibby owner of Textanywhere, he a more significant cost. The cost we’ll all get. If all your local shops
says the economic situation con- per-text message is obviously much started texting you, it might be
tinues to hamper companies. Brill higher than the cost per-thousand useful, but if it gets too much it will
agrees and highlights how the you would pay in an email advertis- very quickly become a nightmare,”
recessionary period has effected ing campaign.”Mew highlights that explains Cazalet. “You have to use
marketing and advertising, quot- email marketing could be in for a SMS with caution and make sure
ing one car manufacturer dropping resurgent period because of the it’s not about selling stuff the entire
their £20,000 mobile campaign, but number of users accessing their time, but using the mobile to get
keeping their existing TV advertising emails on their mobile devices. interesting nuggets of information
costing over £2 million. However, the consideration between across to people.”
SMS and email is the effectiveness
It might be a growth market, but of PBM versus no cost for email. For Explaining the SMS opt-in regime,
businesses are still struggling,” says example, the reader rate of SMS is Janine Paterson, solicitor for the
Bibby. “We’re getting new clients on around 98%, whereas email reaches Direct Marketing Association (DMA),
board but apparently some clients peaks of 20%, but is on average highlights that the DM Code of
are going by-the-way. It’s nothing to significantly lower. Practice states the general legal
do with the SMS marketing side of rule is that SMS marketing is opt-in,
things, they’re just generally going What’s more, now that emails are whereby marketers must proac-
out of business.” becoming as mobile as SMS, there tively gain consent from consumers
could be a rebirth in email market- they want to contact through SMS.
Bibby, like all PBM service providers, ing which could also potentially Marketers cannot send random,
has companies that can spend £5 threaten the success of SMS mar- untargeted commercial communica-
Permission-Based Marketing
October 3rd London
Hear From Industry Experts:
Alcatel-Lucent, Velti, IMImobile, Mobext, BBC, Somo, MIG, DM, OpenMarket, In-
terflora, Thomas Eggar, Golden Gekko, mobileSQUARED, MMA, On Device Research,
Adfonic, Adsmobi, Eagle Eye, O2 Media, Upstream, Blyk, MobileGroove...
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SPONSORS RESEARCH PARTNER
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6. grammes, and compares the high opt in by either downloading an app,
response rates and conversion to or visiting the website and agreeing
the fact the messages are targeted to share their current location data.
and contextual. “When a consumer
receives an SMS, the assumption is Mew from IAB points out that there
SP
that they’ve opted into that pro- is massive growth in vouchering as
S
AM
P gramme so they want to hear from an added value to customers, which
A that retailer or operator because it’s
M has developed from companies
SP interesting, so they’re going to click like Groupon. Adam Levene, chief
AM through,” she says. strategy officer at Grapple agrees.
“O2 have done a fantastic job of
showing that operators do have a
SPAM
really strong role in the value chain,
Even though every- especially around permission-based
one is poo-pooing SMS marketing,” says Levene. “I think
it’s really encouraging what they’ve
these days, from our done and as a first entry to the
market it’s pretty strong. I think
experience it is still is other operators will have to fol-
the strongest engage- low suit, they’ve all spent a lot of
tions using data obtained in breach time on SMS and MMS because it’s
of data and privacy regulations. ment method. Back in a channel they own, but now they
will start to bring more and more
Bibby, from Textvertising, agrees
the 1990s there was a proposition through apps. Orange
and believes as long as a business bit of spam, but that’s Wednesdays started via SMS and
sticks to what it does for a liv- they then created an app for cus-
ing, it works because that is what been controlled now, tomers, but it was very limited
the consumer has opted in to. The because there are no constant of-
issue that could potentially blight
so people know when fers from multiple brands. But they
the success of PBM is the fact that they get a text it’s go- already went into apps to do that,
companies can purchase vast mobile because they realised it was a really
databases and deliver irrelevant ing to be something of good channel for them.”
marketing messages. “‘Have you
had an accident in the past 12
value to them. Other apps which have used lo-
months?’” highlights Bibby of a form cation-based services to provide
of spam rife right now, “Now people customers with added value is the
Olvera, director of marketing at Velti
are getting inundated with these app called Shoparazzi and MTV’s
text messages,” he adds. new Live & Local app which is based
in the US.
Regardless of the threat of spam Velti has worked with UK high-street
or abusing mobile databases, the retailer Argos in developing its After concentrating on developing
fact remains that SMS is the most mobile opt-in database of 6 mil- apps with coupon redemptions such
powerful form of communication for lion. “Customers of Argos who had as Local Sale Finder, the developer
a brand. Research by mobileSQUARED texted in to reserve an item, but Geocast, which
in 2010 revealed that over 95% of had never bought it, were kept on delivers solutions
messages are read within 3 min- history,” says Olvera “So Argos are for location-based
utes. Put into a marcomms context, sitting on a lot of customer data and businesses to
a company sending out an update to now what they’ve done is turned generate footfall
its opt-in databse of 10,000 will be around and marketed to custom- and loyalty via
read by 9,500 within minutes. ers who showed interest in buying a mobile devices,
particular item.” have created Sho-
“Even though everyone is poo- parazzi. The app
pooing SMS these days, from our Location and vouchering aggregates sales
experience it is still is the strongest The latest development in PBM, is from over 15,000
engagement method,” says director the role of location. According to UK stores allow-
of marketing at Velti, Kelaine Olv- research by ad sales house JiWire, ing consumers to
era. “Back in the 1990s there was a nearly 70% of UK consumers would find their closest
bit of spam, but that’s been control- opt-in to location-based services if bargains.
led now, so people know when they they were to receive relevant con-
get a text it’s going to be something tent, compare to only 53% in the “Our mission is to
of value to them.” Velti recently US. What’s more, 33% of UK con- influence cus-
released statistics from a UK survey sumers would be influenced by sales tomer behaviour
which confirmed that 50% of people and promotions to visit new stores. via smartphones.
who had received SMS marketing What we see is
followed through to buy something In July 2011 mobile operator O2 a real burning
from that text. launched Priority Moments, which need for consum-
serves location-based money saving ers to help them
Olvera believes the success of offers from big brands straight to its in the real world,
messaging is based on opt-in pro- customer database. O2 customers where people still
6

7. do most of their shopping. 90%+ to sending messages over carriers, ing a push notification, while the
of their shopping is still done in the whose cost structures are quite high Urban Airship client Dictionary.com
real world where people are buying for companies and consumers using increased its active user iPhone rate
real things. So we’re bridging that SMS,” explains Boyd. by 6%. However, Boyd says it is not
gap using smartphones,” explains just about encouraging users back
Brad Liebmann, founder of Geocast. to the app, “We’re trying to use
push notifications to welcome us-
“The app learns what you like over
Our mission is to in- ers upfront, instead of encouraging
time,” he continues. “So the more fluence customer them back with a notification which
you use it, the more we can tar- might just remind them to delete it
get to you. We’re able to use these behaviour via smart- anyway. We don’t want to lose them
learnings to tailor the sales and the in the first place,” he adds.
offers to them.”
phones. What we
see is a real burning Apps or SMS? Both have the
Pushing marketing forward same rules
Even a well thought app can be need for consumers to It is clear to say that permission-
forgotten among the vast choice in based marketing has come on a
today’s market, in order to prevent
help them in the real very long journey since its incep-
this from happening, Levene recom- world, where people tion, through many different plat-
mends push notifications to gently forms and tools. Now with users
remind customers of an offer they still do most of their becoming more reliant on mobile
may wish to redeem, encouraging web and wifi, it is only natural for
them to return to the app. He says,
shopping. 90%+ of marketers to look at ways to utilise
“Push alerts, in my opinion, are an their shopping is still this technology. While at the same
evolution of direct marketing and time Levene points out that there’s
SMS which reminds users how good done in the real world still a learning curve and many
the app is at providing ongoing brands and businesses are jump-
value.” It works in the same way as
where people are buy- ing onto new technologies without
an email or SMS marketing cam- ing real things. thinking it through. He also interest-
paign: customers show interest in a ingly adds, “Apps have leant them-
brand by downloading their app and selves really well to big brands more
then they can opt-in to receive push Liebmann, founder of Geocast than SMEs, and I think SMS is still a
alert messages regarding activity of really good channel for SMEs - your
the brand and the app. starting to market to customers
This new marketing tool is explicitly you already have and that becomes
To find out a little more about the opt-in only, taking lessons from ten really valuable to them,” suggest-
potential surrounding push notifica- years of SMS and email marketing. ing that SMS marketing will not
tions and mobile marketing, mo- Boyd describes it as a ‘complete disappear if marketing through apps
bileSQUARED talks to US-based Urban closed loop, user controlled opt- becomes commonplace.
Airship. This company partners with in system’ with Apple and Google
brands such as Verizon and Warner monitoring this over a strict set of With all new technologies, mar-
Bros. to create engaging mobile rules. This means that notifications keters must follow their direct
marketing campaigns through push are also resilient to spam mes- marketing guidelines and use the
notifications, rich media and in-app saging, as notifications are auto- tool correctly. Spam and irrelevant
purchases. Vice president of growth, matically turned off when an app is messaging will always be used as an
Dylan Boyd, describes how push downloaded. Once the app asks the abuse of the technology, but com-
notifications were originally cre- user’s permission, the user can also panies are only harming their own
ated by Apple to alert users of any set preferences to state what time brand in the long term.
new content or goings on within of day they wish to receive notifica-
the app. It is still a relatively new tions and detailing what types of Regardless of the tool and its
market with Urban Airship only messages they want to receive. This simplicity or complexity, there is
launching them two years ago on produces an extremely targeted a simple ground rule brands must
some of the iPhone’s very first apps. form of marketing. remember when using all forms of
“It’s changing the way people are permission-based marketing: that
using SMS messaging on devices. These notifications also increase customers who have opted-in to
Facebook have just launched their user visits to apps. ComScore receive marketing deserve to be offered
own non-SMS notification app and pointed out earlier this year that extra value and to be treated differ-
Apple is soon to be launching a Groupon and Living Social in the ently than a consumer on the street.
similar instant messaging service US claimed that 14% of users are
called iMessage. It’s an alternative engaging with an app after see- caroline@mobilesquared.co.uk
www.mobilesquared.co.uk 7

8. data point: UK
50% smartphone
penetration in 2011
MobileSQUARED forecasts the number of smartphones in
the UK will have risen almost 200% from the end of
2009 to approximately 32.5 million by the end of this
year. Around 30 million phones are sold every year in
the UK and more than 50% of those are now smart-
phones.
In fact, smartphones constitute the vast majority of
postpaid (pay monthly) sales, while postpaid sales
are also increasing in proportion to prepaid sales.
This means the rate of smartphone growth is going
to keep accelerating – great news for all you mobile
advertisers, marketers and brands!
Over the same period, the number of featurephones
in the market is expected to fall about 26% from 68
million in 2009.
Android smartphone devices will obviously see the
greatest bounce, up almost 2,000% from end-2009,
with Apple up 306% and BlackBerry rising 185%.
Meanwhile, the number of Symbian devices in the UK from 13.5% end-2009. Android will constitute 34% of
are estimated to have fallen around 30% over the total smartphones used, followed by Apple with 27% and
24-month period and will rank 4th behind Android, BlackBerry with 24%.
Apple and BlackBerry at the end of 2011 from 1st
end-2009 and 3rd end-2010. The numbers are even greater when applied to actual popu-
lation penetration, with smartphones users growing from
Overall, the smartphone market share of total devices 18% of the population in 2009 to over 50% by the end of
will be just shy of 40% by the end of this year, up this year.

9. What next for Mr Jobs, Adopt a phone?
Toe-Knee Blair idiot. If The Beatles came to me sumers to sign up to receive news
Hey, Gee W, do you know what you and said ‘sign me up’ I sure as and updates etc. In the UK, there
have in common with Apple? hell woulda. What was he thinking are about 17 million mobile users
about? In fact, when I was in the that have signed up for these alerts
Gee W Bush oral office, and Cheney and Rums- on their mobile. I guess you could
What? feld presented me with the oppor- call it mobile ad opt-in.
tunity to sign up the next big thing,
Toe-Knee Blair I almost bit their arm off I was so Gee W Bush
Until recently, you both had power- eager. Very strange though, as I No need to say it slowly Toe-Knee,
ful jobs. never did find out what happened to I’m not stupidiserous. Say it how
The WMDs? it is: Mobile adoption. And I think
Gee W Bush you can safely say that the number
I do like Apples. I always like to Toe-Knee Blair of phones with new owners is 17
consumerise a pair as part of my I don’t think The WMDs were a band million and 5. I’ve now rehomified
six a day. Gee W. a Nokia, given two iPhones to some
visionary impaired friends, an HTC
Toe-Knee Blair Gee W Bush to Barb, and I’ve given an STD to
You mean an apple and a pear? Certainly not in The Beatles’ league Condoleesa Rice.
Toe-Knee. As for Steve Jobs, I
Gee W Bush think he should help with relocating Toe-Knee Blair
No, two apples. unwanted mobile phones, like I’ve Mobile ad opt-in is the process by
been doing for the past month. Very which users allow brands to commu-
Toe-Knee Blair rewardering work indeed. nicate with them using the mobile
We’re not talking about the fruit device. Mobile adoption is more
Gee W, we’re talking about the Toe-Knee Blair likely to be a song played by The
company that has revolutionised Unwanted phones? Gee W, we’ve WMDs.
the way people listen to music and been In Search of Mobile Advertising
use their mobile phones. Do you Revenues of Mass Construction, and Gee W Bush
think Apple will continue to flourish I fail to see what unwanted phones Well my good buddy, looks like
after Steve Jobs has stepped down? have to do with our latest mission we’re going to be busy. It’s going to
on permission-based marketing. For take a mighty long time to oversee
Gee W Bush the last month we’ve been looking the returnarization of all those 17
I always thought the man was an at how brands are encouraging con- million and 5 mobile phones.
www.mobilesquared.co.uk 9

10. mct update
Android surges, but iPhone still leads usage
The following is an extract from Mobile Consumer Trends update: 4Q10-4Q11 looking at the head-
line data covering usage of mobile internet, apps, advertising, opt-in marketing and commerce over
the 12 months to the end of the year. All figures and forecasts are taken form mobileSQUARED’s campaign
planning database – Mobile Consumer Trends, and based on our latest quarterly consumer panel
survey from 2Q11.
The total number of mobile operator Mobile Internet lieves BlackBerry is likely to see
devices in the UK is expected to rise The total number of mobile internet the same decline in sales it has
2.3% from 81.04 million end-2010, users in the UK is forecast to grow witnessed across north America –
to 82.91 million end-2011, with almost 40% from 21.57 million end and rumours of providing BBM to
smartphone penetration of total 2010 to 30.2 million at the end of Android and, possibly, Apple is not
devices increasing from 24.28% this year, driven by the burgeoning going to help this.
end-2010 (19.68 million) to 39.13% trade in smartphones. Moreover,
end-2011 (32.44 million). The the accelerating take-up of devices Mobile Applications
number of smartphones in the UK running on the Android, iOS and App users in the UK are forecast to
is forecast to rise almost 65% over BlackBerry operating systems will grow 51.2% from 16.69 million end-
the period driven by the almost un- see the smartphone penetration 10, to 25.24 million by the end this
stoppable adoption of Android, the of mobile internet users also rise year. App usage will remain propor-
youth segment usage of BlackBerry sharply - from 58% end 2010 to tionately higher among owners of
and, of course, the iPhone. 74% end 2011. Apple devices, although the sheer
volume of Android sales will see it
More importantly, however, these Although iPhones only accounted for just sneak ahead in term of users
numbers mean that smartphone 8% of the total devices in mar- by the end of the period.
penetration measured by population ket end 2010, rising to 11% by
numbers will rise from 32.22% in the end of this year, they account The majority of app users are obvi-
2010 to 52.77% to end-2011 – an for approximately one quarter of ously on smartphones, rising from
enormous watershed in terms of total mobile internet devices over 68% of the total end-10, to 80.5%
how we all communicate and inter- the period. Android-based mobile at the end of this year. iPhone own-
act with mobile digital media. internet usage will rise from 9.6% ers will account for 34.2% of all
of total devices end 2010 to 28.7%, app users at the start of the period,
Android devices are forecast to while BlackBerry will see a decline in falling to 31.2% end this year, while
grow from 2.71 million end 2010 to mobile internet market share from Android will increase from 11.2%
11.16 million at the end of this year 21.5% to 18.8% despite an overall to 31.3%.
– more than one third of the total growth in sales. The anomaly with
smartphones in market. iPhone is BlackBerry is a result of extreme On a proportionate basis, 89.1% of
expected to drop from first place to growth among 18-25 year olds total iPhone users downloaded and
second, growing from 6.4 million to (mainly the student population) used apps end-10, rising to 89.4%
8.82 million, with BlackBerry drop- who are primarily interested in the by the end of this year, while An-
ping from second to third – growing cheap BlackBerry Messenger (BBM) droid will see app users grow from
from 5.62 million to 7.88 million. capabilities. 69.1% of total ownership to 70.7%
Symbian devices will continue to over the period. The disparity with
fall, with a slight upturn in numbers Despite rapid growth in unit sales mobile internet usage is not quite as
for both Microsoft and Others. over the period, mobileSQUARED be- marked, with 90% of iPhone own-
ers using the mobile internet end-10
and 90.3% end-11, compared to
76.8% and 77.7% respectively on
Android. The difference in app and
Internet usage from Apple to An-
droid is due to the vast number of
different Android devices available,
and varying price points, compared
to Apple. Hence, low-end Android
devices are still largely used as fea-
turephones.
Mobile Commerce
Commerce numbers are estimated
to grow 23% from 16.89 million
end-10 to 20.76 million by the end
of this year, with the growth unsur-
prisingly driven by smartphones.
The penetration of smartphone
10

11. devices among total m-commerce devices accessing mobile ads -
users is expected to jump from 49% driven primarily by BlackBerry.
to 62% over the period. The iPhone
remains the single most used device Furthermore, the proportion of total
for m-commerce activities (the pur- iPhone users who have acted on a
chase of physical goods and serv- mobile ad (either purchased as a
ices) accounting for 20% of total result in-store, on PC, on mobile, or
users end-10, and forecast to hit seen but not purchased) is forecast
25% end-11. to grow from 49% to 67% over
the period, while the proportion of
Android owners only accounted for total Android users will actually fall
5% of total m-commerce users at from 48% to 29% despite an almost
the end of last year, although the 150% increase in the number of
number is forecast to rise to 12% Android device users viewing mobile
by end 2011, while other smart- ads from 1.3 million to 3.24 million.
phones (including BlackBerry, Sym-
bian, Microsoft and Others) will rise Mobile Opt-in
from 24% to 25% over the period. mobileSQUARED forecasts that opt-in
users will grow 27.6% over the
The penetration of m-commerce period from 13.5 million to 17.2
usage among iPhone owners is million as brands increasingly
expected to rise from 53% to 59% realise the power of mobile market-
over the period, while Android m- ing. Initiatives such as O2 more,
commerce penetration will fall from and its ‘Priority Moments’ scheme
31% to 22% due to the massive have gained tremendous traction
growth in the number of devices in the market and consumers are
in the market as well as feature- increasingly likely to use mobile as
phone-type usage. a vehicle to discover and redeem
offers.
Mobile Advertising
Mobile advertising numbers are Mobile opt-in is the only area cur-
growing strongly, up 66% over the rently tracked by Mobile Con-
period from 10.82 million to 18 mil- sumer Trends where feature-
lion. Smartphones again dominate phone/other usage remains ahead
the numbers, accounting for 77% of smartphones during the period,
of all eyeballs reached end-10 and accounting for 68% of total users in
85% by the end of this year. 4Q10 and 61% in 4Q11.
The importance of the iPhone to de- Future issues of access: mobile
velopers is evident by the fact that will analyse usage of mobile inter-
29% of all users viewing a mobile net, app, advertising, opt-in and
advert were on an Apple device commerce in much greater detail,
end-10, and forecast to rise to 33% leveraging our exclusive consumer
by the end of this year. Android us- research covering a panel of 3,000
ers are expected to increase from 18-64 year olds throughout the UK
12% to 18%, with other smart- broken out by age, gender, location,
phones falling slightly from 36% to device type and socio-economics.
34%, despite an overall 57% growth
in the number of other smartphone gavin@mobilesquared.co.uk
www.mobilesquared.co.uk 11

12. 12

13. workshop challenge
Pit your wits against your mob-ad peers
Welcome to the first mobileSQUARED
Workshop Challenge – our very
Workshop Challenge league table
own call to action for the mobile
advertising industry. We want all
you ad experts and vertising gurus
to battle it out and create the best
virtual mobile ad campaign in the
hope that one day, you too, could sit
atop our leader board.
The mission, should you choose
to accept it, is to create a mobile
advertising campaign for the launch
of a new beer aimed at the 24-44
year-old male segment. The budget
for the campaign is US$100,000 and
the aim is to reach as many eye-
balls as possible – repeat eyeballs
count as overspend and will not be
included.
You will find a list of costs associated with buying dif-
ferent types of mobile media on the adjacent form,
and each campaign must adhere to the following:-
• Each campaign must create at least one destination
site (app, website or landing page)
• You must commit a minimum of US£10,000 to each
of the three categories of mobile advertising on the
form – namely Messaging, Mobile Display Advertising
and Other Mobile Advertising
• Mobile Display Advertising spend must be split be-
tween a minimum of three categories (i.e. sport, news
and entertainment)
You must decide how to spend the campaign budget to
achieve these goals. For the purpose of this challenge,
all display advertising is measured on a CPM basis and
each campaign will be measured against 1 month of
real mobile ad metrics (contributed by Orange Mobile
Exposure 2010, an independent study conducted by
TNS) to determine the audience reach.
To start you off, we have published results from the
Workshop Challenge held at our mobileSQUARED Road-
show: Europe event in London last year. The table is
currently topped by Alex Miesl - chairman of Sponge
Group, with Graham Darracott - founder of The Digital
Parent Company (DPC), the only other contender to
have reached more than 1 million eyeballs so far!
Think you can do better than Alex and Graham? Then
please download the entry form on our webiste, fill it
in and email it back to us at editorial@mobilesquared.
co.uk - You will win absolutely nothing other than the
immeasurable kudos of being top of the league, the
admiration of your friends and the long-standing en-
mity of industry colleagues.
in association with...
www.mobilesquared.co.uk 13

14. news
Handsets Marketing and advertising
ROUND(UP)
Apps and social media Commerce
Handsets tickets. O2 is now looking to extend
this into the retail environment
Ad agencies plans for rich media
advertisements
through O2 Priority Moments. The Big players in the mobile advertis-
Teens lead UK smartphone
multi-million pound investment by ing space, Amobee and InMobi,
penetration
O2 will see Priority Moments serving have both recently turned to rich
Ofcom claims that Britain is a “Na-
location-based money saving offers media developers to strengthen and
tion addicted to smartphones” with
straight to the mobiles of their 22 harden their campaigns and per-
just over a quarter of adults in the
million customers. It has already formances. Amobee has announced
UK now using a smartphone. Ac-
received support from brands such a partnership with the digital con-
cording to the telecoms regulator
as Yo! Sushi, French Connection and tent provider Cooliris to introduce
27% of UK adults and almost a half
Toni & Guy, with many more deals 3D ad campaigns to mobile users
of teenagers are now using smart-
to follow. O2 claims that their cus- on any device or network. Amobee
phones, with 59% of users only ac-
tomers could potentially save £105 says rich media advertising encour-
quiring their device in the past year.
per month by using an app which ages user engagement and inter-
The communications market report
acquires their location through GPS. activity through entertaining expe-
claims the iPhone is the most popu-
Other partners who have signed the riences. Meanwhile, InMobi have
lar brand with adults, while teens
deal with O2 to date include Hotel also recently announced strategic
are loyal to RIM’s Blackberry devices
Chocolat, Essensuals, National Ex- developments in rich media adver-
which features the free instant mes-
press, Fitness First and Viagogo. tising, after acquiring the developer
saging service, BlackBerry Mes-
Sprout. The Sprout acquisition
senger. According to mobileSQUARED’s
YouGov says mobile advertising will not concern 3D ads, but cross
Mobile Consumer Trends (MCT)
is not working platform expandables, collapsible
database, there will be 32.44 million
Despite the best efforts of mobile and interstitials that are vehicles for
smartphones in the UK by the end
advertisers to target smartphone carrying engaging html format.
of 2011 – equivalent to a population
users in the UK, a YouGov poll
penetration of over 50%.
shows that only 14% welcome ads Apps and social media
700 mil. smartphones by 2016 when using mobile internet and
even less on apps. Mobile adver- Facebook attempts to replace
Shipments of touchscreen-only
tisements are failing to connect texting
smartphones will hit 700 Million by
with British consumers according to Facebook has launched an instant
2016, says Juniper Research, mak-
research of 2,082 participants con- messaging service for mobile
ing up to 72% of total smartphone
ducted by YouGov. 88% of smart- phones which aims to replace SMS.
shipments, compared to just over
phone users say that they ignore The service, which is similar to
half in 2010. Juniper also predicted
mobile ads in applications because RIM’s BlackBerry Messenger (BBM),
that 3D-enabled shipments will
they find them intrusive, with 86% is available as an app to download
reach 80 million by 2016, thanks to
ignoring them on mobile web. on iPhone and Android devices. Fa-
the manufacturers HTC and LG.
cebook has 750 million users global-
The company stated that global
ly who can already send messages
smartphone shipments will reach Personalised and time-based
through the Facebook website and
one billion per annum in 2016, ads preferred over location the app for smartphones, although
up from 302 million in 2010, and Sixty percent of smartphone users the Facebook Messenger is only
economy smartphones will account say they prefer to receive ads which available in the US at the moment.
for nearly one-third of shipments are personalized by their interests mobileSQAURED’s research shows there
in five years. Meanwhile, research rather than time and location-based is real opportunity for the app in the
from IHS predicts that smartphones promotions, according to Upstream. US where 50% of the 150.2 million
will make up a 54.5% share of the The mobile marketing firm surveyed Facebook users already access the
mobile market by 2015. The firm 2,000 American adults and discov- social network via their mobile. Of
forecasts global smartphone ship- ered that a further 17% preferred those mobile users, over 48 million
ments will hit 1.03 billion sooner time-based promotions, while only Facebook mobile users access via
than Juniper, in 2015, up from 478 14% favored receiving promotions iPhone or Android devices. Facebook
million smartphones in 2011. based on their location. Upstream is yet to reveal any plans to roll out
also asked respondents which this service to BlackBerry devices.
Marketing and advertising mobile advertising channel would
most likely lead to a greater interac- $900 worth of free apps for
Priority Moments supercharges tion; smartphone users indicated Android users
offers from big brands that mobile coupons were the most Amazon has given away over 100
O2 has launched a supercharged effective, followed closely by opt-in apps between the end of March and
version of their Priority Tickets, text messages, email received on a the end of June, with each app hav-
which turned the operator into the mobile phone, mobile website ad- ing an average retail value of $2.36.
UK’s biggest sellers of gig and event verts, and internet search adverts. This would see a potential customer
14

15. saving of $238 in this quarter, or
around $900 over a one year pe-
their device while watching TV. This,
coupled with the rise in social me-
Commerce
riod. Meanwhile, AndroidTapp has dia, is creating an opportunity which 25% of smartphone users turn
revealed that 72% of US users who MIG has dubbed ‘Social Participation to mobile banking
download Amazon’s Free App of the TV’. 67% of people surveyed for the A survey revealed that a quarter of
Day then go on to spend $1-$10 per research said that the internet is the British smartphone and tablet users
month in the Amazon App Store. ideal way to interact with TV shows, are embracing mobile banking due
57% of the apps bought by consum- with 50% of those stating that Face- to its ease of access, yet many are
ers are games, many of which are book could be used to purchase and still worried about security. The sur-
featured on Amzon’s increasingly use P-TV services such as voting. vey of 1,028 smartphone and tablet
popular Test Drive, allowing con- users conducted for Antenna by
sumers to try the app out on their Featurephone apps to make YouGov, discovered that 25% man-
computer before buying. $1billion by 2016 aged their finances through mobile
Predictions from Ovum claim that banking services. However, security
P-TV and social media could revenues from featurephone apps fears are still preventing many peo-
generate $2.9 billion will rise to $1 billion by 2016. The ple from using the service, but less
Mobile Interactive Group claims figures from Ovum’s latest market so for younger consumers who want
that there is a new opportunity to report claims that featurephone to complete transactions quickly.
combine participation TV services apps are becoming easier to pro-
and social media to generate $2.9 duce and publish. It also points Vodafone implements operator
billion globally by 2016. The white out that there is still a big market billing for Android
paper research on trends and op- outside of the smartphone user Vodafone has launched an operator
portunities in participation TV (P-TV) base. However, mobileSQUARED fore- billing system for Android Market in
services highlights how broadcast- casts a 50% population penetration the UK and Germnay, and will roll it
ers should adopt a multi device and of smartphones in the UK alone by out globally. This provides opportu-
platform approach for interactive the end of this year. This figure has nities for developers to access the
TV shows, such as Big Brother and risen almost 200% from the end of proportion of consumers who do not
Strictly Come Dancing, to ensure 2009, to around 32.5 million. Mean- wish to provide card details which,
maximum viewer reach and en- while, featurephones in the UK mar- Vodafone states, can be over 90%
gagement with the programme. ket will fall about 26% by the end of the market in some countries.
The research revealed that 40% of of 2011, according to mobileSQUARED,
British mobile consumers are using from 68 million in 2009. caroline@mobilesquared.co.uk
www.mobilesquared.co.uk

16. data point
Healthy downloads: Apps consumed at
faster rate than nation’s favourite burger
The world may love hamburgers, updating its signs back in 1994 the 15 billion mark about 9x faster
but according to Sybase, it loves when it was nearing 100 billion than McDonald’s. And based on
apps even more. When Apple an- burgers, saying it had better things projections, Apple could hit 100 bil-
nounced that its App Store had to do (invent McRib sandwiches?). lion within five and a half years, or
reached 15 billion app downloads It took Maccy Ds almost 26 years to about 9x faster than McDonalds.
after 3 years of operation, Sy- reach 15 billion burgers sold, and
base wondered if that was faster about 46 years to hit 100 billion. However, Google’s store might hit
or slower than the Gold Standard 100 billion downloads as early as
for Incredible Growth, McDonald’s Both Apple and Google are pro- April next year, according to Sybase.
hamburgers? jected to deliver 100 billion down- The company says the gap between
loads in a fraction of the time it Apple and Google, and the rest of
McDonald’s signs used to read “bil- took McDonald’s to serve 100 billion the mobile field, appears to be wid-
lions and billions served.” It stopped hamburgers. That means Apple hit ening not narrowing
It’s an app, app world
16

17. company
profile
Directory app Poynts beyond the US
The development of location and and Toptable in the UK to provide started, from a very granular per-
the use of GPS on smartphones has online restaurant reservations, spective,” says Sklar.
opened up a whole new realm of reviews and listings within the app.
advertising possibilities within the Ad networds Adfonic in the UK and Poynt’s journey from legacy hand-
mobile market, and one company Navteq in the US also played a part sets to smartphones has seen it
whose business plan rests solely on in creating the directory of busi- now incorporate features such
this technology is the Poynt Corpo- nesses which led to 1 billion con- as augmented reality in the app.
ration. The Canadian company have sumer queries by March 2011. Poynt 360 uses the compass and
developed a comprehensive local mapping feature within a smart-
directory app which connects users “In total, in the month of April, phone to list searches with pins
with local businesses, retailers and we had roughly 2.5 million UK drops on the map. When opening
events dependent on their location. searches, which illustrates that the the camera, Poynt arrows on the
growth has been part of an expand- ground direct users straight to a
Described as an ‘entertainment ing global footprint” says Michelle location, while tabs appear on the
and utility tool’, the app has seven Sklar, director of PR and marketing location that, when clicked, link
features including businesses, in Europe. “The average customer in directly to the listing.
people, movies, events, gas prices, Europe uses the app 10.9 times in a
restaurants and weather – although month, and our power users (2.5% “Our iPhone users love it. In fact the
in the UK this is limited to events, of the user base) use the app about idea for Poynt 360 came from a user
restaurants, businesses, movies and 68 times a month, practically twice after we ran a contest early last
weather. The company provides a a day,” claims Sklar. summer. People purchase iPhones
solution to the increased demand because they like the bells and
for on-the-go information requests, However, Poynt’s influence out- whistles of the iPhone, but how do
and also boast behavioural data of side of the US is very limited, with you actually enable that technol-
consumer intent, such as clicking to only 200,000 users in the UK and ogy to have a function in real life,”
call and mapping directions. a further 36,000 in the rest of says Sklar. “Poynt 360 is a great
Europe - France, Italy, Germany showcase for augmented reality and
Over the last quarter Poynt has and Spain. Although growth in us- iPhone users access it frequently.”
integrated and used viral media age of the app has led it to become
extensively to promote the app by preloaded on some handsets in the caroline@mobilesquared.co.uk
allowing customers to ‘share’ Poynt US, and it recently launched in the
with friends and publish their loca- UK with Virgin. Company: Poynt Corporation
tion via Facebook and Twitter. This President and CEO: Andrew Osis
viral advertising has proved pow- The app was first launched on lega- Founded: 2002
erful in helping its expansion into cy handsets in 2002, allowing users Headquarters: Calgary, Canada
Europe and Australia, while hoping to conduct a basic search of key Employees: 11-50
to roll out to India shortly. words and post codes. The company Specialities: Location-based services,
was initially courted by Microsoft, mobile applications, local advertising
solutions
The business model - which is based but it was not until after winning
Awards: Blackberry Super Apps De-
on user queries, page views, adver- the Blackberry Developer Challenge veloper Challenge 2010, Most Innova-
tising and transactions within the in 2009 and then the Super App tive Consumer Application at GSMA’s
app – has seen a 178% revenue Challenge in 2010, that Poynt truly Mobile Innovation Grand Prix EMEA
increase and a significant drop of gained the limelight. Tournament 2009, BlackBerry Alliance
net loss on last year. The company Program’s EMEA Innovation Award in
has also increased its user-base “The BlackBerry smartphone was the Life on BlackBerry category 2009,
from 2.5 million to 8.5 million as really where the device and the user BlackBerry Developer’s Challenge
Grand Prize 2008
of the end of June 2011 – a 240% were in the best position. There
Announcements: Poynt Corporation
increase in less than a year. was a major adoption on BlackBerry Engages Liolios Group to Lead Inves-
smartphone, as business travellers tor Relations Program. Poynt Preloaded
Poynt has also entered a number of who were using their devices for on Virgin Media in the United Kingdom.
partnerships with companies includ- more than to call, but to text, email Poynt for Windows 7 launches in Ger-
ing, Thompson Local, Cinemasource, and search. So that’s how we got many, Italy, France and Spain
www.mobilesquared.co.uk 17

18. white paper
Mobile payment and crediting:
enabling better consumer engagement
M-commerce is big business in the quick, simple and secure micropay- saying that it would actually be a
UK with approximately 18.8 million ments which are either added to disincentive to them purchasing on-
mobile consumers now purchasing their monthly bill or deducted from line goods or services through their
physical goods and services online pre-pay credits. Users do not have mobile. A total of 17.5% ‘strongly
via their mobile phones, according to be pre-registered with payment agreed’ that it would be a disincen-
to the most recent consumer trends providers such as Paypal, or input tive, while 36.2% ‘agreed’ that it
data from mobileSQUARED. At the same credit/debit card information via would be a disincentive.
time, however, only around 20% of their mobile phone. ‘Payforit’ is the
the UK’s top retailers have a mobile- standard in-app, WAP and web pur-
optimised version of their website, chasing solution for operator billing
meaning that many brands are in the UK and is supported by all the
missing out on the opportunity to major operating groups.
properly engage with this burgeon-
ing market and boost revenues. Key findings from a survey of
1000 people conducted by
Many retailers are also not making mobileSQUARED for OpenMarket
use of micropayment solutions for show that 67% of respondents
smaller transactions up to the value said their main concern was hav-
of £10 – a level at which many ing confidence that they would be
mobile consumers make spontane- charged correctly for the transaction
ous decisions to purchase. Although and any personal details would be
credit card fees are relatively low, secure, while almost 55% thought
around 4% of the transaction value, that providing credit/debit card
the timely process of inputting the information through their mobile
credit card number, expiry dates phone was a disincentive to making
and address details would likely dis- a mobile purchase.
suade many mobile consumers from
continuing with, or repeating, the
process. The potential for m-commerce in
the UK is enormous. According to
The Internet Advertising Bureau MobileSQUARED’s Mobile Consumer
(IAB) last year published research Trends database, there was a total
saying that 31% of UK consum- of 16.89 million m-commerce users
ers who made a purchase via their in the UK at the end of 2010, equiv-
mobile device did so due to an alent to 21% penetration of the to-
impulsive decision, while 25% liked tal 81.04 million devices in market.
the experimentation factor of pur- More importantly, however, 6.13
chasing via their mobile phone. The million mobile consumers said they
‘on-the-move’ spontaneity of mobile did not make transactions above the
dictates that checkout processes for value of £10 through their mobile
any low-cost transactions should be phone – highlighting the explicit op-
equally quick - with a minimum of portunity for the mobile micropay-
‘clicks’ and input screens. ment market.
Mobile Payments Quick, simple and secure pay-
Mobile network operator billing is a This weight of opinion behind ac- ment mechanisms such as ‘Payforit’
simple, quick, reliable, secure and curacy and security indicates that therefore enable brands and retail-
easy to implement set of solutions mobile consumers are less wor- ers to reach this segment of the
(incorporating PSMS, Direct Op- ried about recognising the ‘Payforit’ m-commerce universe, while also
erator Billing and ‘Payforit’), that brand, or using more established allowing them to initiate conversa-
enables micropayments by charg- names such as Paypal, or online tions with the consumer through
ing transactions to a users mobile payment sites verified by credit or mobile marketing campaigns, such
phone account, either as an addition debit card issuers, as they are about as mobile crediting. Although mobile
to a monthly contract, or as a de- trusting that the payment mecha- may still not be a significant rev-
duction from the pre-pay balance. nism itself is robust. enue stream for most retailers,
it is increasingly being used as a
The standard in-app, WAP and web In fact, there was an overwhelming marketing channel to engage with
purchasing option for operator bill- reluctance to supply credit or debit customers and boost demand either
ing in the UK is ‘Payforit’ – which card information via the mobile in store, or online, while building an
allows mobile consumers to make phone with 53.7% of respondents opted-in mobile database.
18

19. Mobile crediting from the same brand in the future, Conclusion
Mobile crediting is increasingly while 21% said they would view the The opportunity for brands and
seen as a key component of mobile brand more favourably. retailers to use operator billing as a
marketing to motivate consumers method of driving revenues through
to engage with goods or services micropayments is enormous. Micro-
and engender brand loyalty. Mo- payments not only offer ease of use
bile crediting can help drive brand for the consumer, overcoming the
relationships with their customers, resistance to buy online via credit/
influence purchase decisions and debit cards, but also provide the op-
drive ‘talkability’ around a brand or portunity to leverage approximately
product. It is also an innovative way 81 million devices in the UK to add
of building a mobile opted-in data- revenue for a range of online goods
base for future interaction around and services.
new or repeat campaigns.
The IAB claims that 37% of mo-
Mobile marketing initiatives such as bile phone users have purchased
mobile crediting provide a low-cost a service or product direct to their
mechanism for rewarding consumer mobile phone account. Within that,
loyalty while driving sales, increas- 32% paid for downloaded content,
ing brand perception, goodwill and 21% used a shortcode to pay for
a willingness to engage with the a products or services, while 13%
brand in the future. The consumer entered a phone number to pay
engagement is simple: for a product or service. Moreover,
around 23 million people are now
•Offer an incentive to customers, using their mobile phones to either
such as free credit applied automat- make payments, research products
ically to their mobile bill when they and services or redeem coupons and
make a purchase discount codes – thereby enabling
•Provide a redemption code and call The results show that mobile credit brands and retailers to use mobile
to action is an incredibly effective technique as a direct marketing channel too.
•The appropriate mobile credit is for brands to build perception, loy-
then applied to the customer’s pre- alty and engagement with their cus- Mobile credit is an excellent mecha-
pay or post-pay mobile operator tomers. In fact, 75.6% of respond- nism for brands to open a direct
account when the code is used. ents indicated a positive response communication with a consumer
to brands offering mobile credits as as it provides with impetus for the
For example, in 2009 and 2010 part of a promotion – either directly customer to actually contact the
Coca-Cola ran campaigns called affecting revenue or goodwill. brand – not vice versa. If the brand
‘Gimme Credit’ targeting British is smart, it will capitalise on that
teenagers with the offer of a 50p A total of 30.6% said they would opportunity and develop an opt-in
mobile credit on tens of millions of actually be ‘more likely to buy’ the database to ensure an ongoing rela-
cans and bottles of Fanta, Sprite brand’s products or services in the tionship with the consumer.
and Dr Pepper. future, 20.8% said they would ‘view
the brand more favourably’ in the As we have already seen, over three
Consumers texted a unique redemp- future, while 17.7% said they would quarters of survey respondents indi-
tion code from the packaging to a ‘recommend the promotion’ to a cated a positive response to brands
five-digit short code, with the credit friend. A further 6.5% of our survey offering mobile credits as part of a
then being applied to their mobile respondents would be happy for the promotion – either directly affecting
pre-pay balance or post-pay ac- brand to contact them with other revenue or goodwill, while nearly
count. Jude Brooks, Coca-Cola’s promotions in future. two thirds said that they would
interactive manager, said ‘Gimme either buy, or be more likely to buy,
Credit’ was one of its most success- products offering mobile credit as
ful campaigns in terms of engaging part of a promotion.
with users. “Coca-Cola wouldn’t be
interested in just buying a list of If used effectively, an opt-in da-
names and then sending out a load tabase can become a very power-
of messages,” she said. “If it’s an ful ally for brands to disseminate
opted-in list for people who want to contextualised and relevant brand
receive messages then why not use messages to the consumer. Click-
it? SMS is good as a marketing tool through rates on messaging average
but not necessarily as an advertis- over 25%, and can reach 60-70%,
ing tool.” therefore offering the potential of
becoming a very effective marketing
Over 60% of respondents surveyed and sales channel.
for OpenMarket said they would be
more likely to buy a product offer-
ing mobile credits, versus a similar ------------------------------------
competing product. Moreover, al-
most 31% said they would be more To download the White Paper in full
likely to buy products or services please visit www.mobilesquared.co.uk
www.mobilesquared.co.uk 19

20. guest column
The rise and rise of mobile
devices
by
Matt Isaacs, CEO, Essence
Smartphones have become such a purpose-driven, consumers are not egy? With so many routes to market
ubiquitous part of popular culture aimlessly browsing the internet on available and an ever-increasing
that it’s hard to remember that the their mobile devices as much as number of communications chan-
original iPhone was only launched in they do on a PC or laptop, and they nels, it would be foolish to say
2007, a mere 4 years ago. Without are often searching for something that any one channel should be the
wanting to sound too dramatic this specific. This has an immediate leading factor in a marketing
launch signalled a huge shift, not impact on marketers and digital strategy.
just for the handset manufacturing advertisers and it is important to
industry, but for the whole world. ensure that key user journeys are Mobile marketing is finally com-
optimised for mobile use. This is ing of age and is only set to get
But what does it mean for the why mobile applications are be- bigger. The next big thing on the
marketing industry, which has been coming increasingly popular at the mobile agenda is near-field com-
inundated with digital developments moment as it allows brands to strip munications. Similar to how brands
over the past few years? As with back their website and present it in have had to react to the increasing
any inventive development there a new, more accessible format. importance of social networks in
is the temptation to jump on the people’s lives by introducing social
bandwagon and create ‘industry- There is currently an interesting in- commerce to help reach their audi-
first’ campaigns utilising the new dustry debate about the benefits of ence, brands will look to find ways
technology. And these campaigns apps v. mobile-optimised websites. to use mobile for NFC; for example
can be brilliant and impactful but, And there are benefits to both; apps contactless payment and receiving
in my experience, they are short- allow brands to gain a permanent vouchers for your favourite shop as
lived; most of their value is in the presence in the hands of their con- you walk past will become the norm.
wow-factor of being new rather than sumers that can be hugely powerful, Consumers also spend a significant
in supporting the brand’s long-term while having a web-optimised site proportion of time accessing social
strategy. However, it is clear that allows you to reach a potentially networks via their smartphones,
the advances in mobile technology wider audience and connect with meaning that soon the social web
are here to stay; the challenge and consumers that might not be as fa- and the mobile web will merge into
opportunity is how we harness this miliar with your brand. It is hard to one and social commerce will look
real-time, anywhere connectivity. say which way the industry will go to target consumers through their
on this. Apps are big business and phones with offers that are relevant
Smartphones are increasingly ac- can deliver more wow factor than to their real-time surroundings.
cessible to consumers in terms of a mobile-optimised site, however, Ultimately the popularity of Smart-
cost and many people are using both channels are equally impor- phones has been borne out of the
them as their primary point of ac- tant and the relative merits of each real-time convenience that they
cess to the internet. This means should be considered on a case by offer, and it is this feeling of conven-
that consumers are interacting with case basis. ience that marketers need
and consuming online content in to capitalise on.
a different way. Key to this is the So, should marketers be putting
fact that the mobile web is often mobile at the heart of their strat- matt.isaacs@essencedigital.com
20

21. www.mobilesquared.co.uk

22. Roadshows
Inspiring brands to communicate with the mobile consumer
Roadshows
3 events to shape your mobile future
access: mobile — Permission-Based Marketing, London, Oct 3rd
in association with the
access: mobile Europe, London, November 9th / access: mobile US, New York, December 7th
access:mobile Europe & US agendas cover: Utilising augmented reality; Building a successful long-
life app; The best mobile strategy ever; Understanding the mobile consumer needs; Impact of HTML5; The top 5
mobile sites; The impact of mobile advertising on your brand; Location-location-location; Mobile media interaction
and broadcasters; Social media: connected 24/7; How mobile worked for our brand; Publishing on multi-mobile-
platforms; Making mobile technology work for your brand; Using coupons to deliver a value exchange; Making the
mobile transaction; The Great Mobile Interaction debate, PLUS interactive workshops and extensive networking.
Speakers from: Qualcomm, Endemol, Smaato, AT&T, The History Channel, Museum of London, Golden Gekko,
Eagle Eye, Somo, Velti, Mediacom, Sponge, Adfonic, O2, mobileSQUARED, MIG, The Daily Mirror, Orange, SinglePoint,
3M, MTV, Buzzcity, Digital Sunray Media,... more speakers to be announced.
access: mobile — Permission-Based Marketing covers: An exemplary example of opt-in marketing;
PBM made easy; Building a business model for brands; Generating a 25% response rate; How to manage a PBM
database; Getting the consumers’ permission; The opt-in opportunity; Marketing to 100% of devices; Generating ex-
ceptional content; How location can drive PBM; The app opt-in; Operators to dominate PBM?; Educating consumers
Speakers from: Alcatel-Lucent, Velti, IMImobile, MMA, Blyk, OpenMarket, Thomas Eggar, Somo, Mobext, BBC,
mobileSQUARED, Interflora, O2, MIG, On Device Research ... more speakers to be announced.
Sponsors
RESEARCH PARTNER
Visit www.mobilesquared.co.uk for all the latest access: mobile agenda & speaker news