A Mobile Masterclass by Channel Mobile

Who are CHANNEL MOBILE?

Mobile communication solutions provider based in
Cape Town, South Africa.

Specialise in developing mobile messaging applications
and messaging software solutions for the South
African market.

Pioneered the use of SMS as a communication
medium for South African SME’s and large corporate
companies.

First provider to launch a PC to mobile phone SMS
solution for the South African automobile industry

Primary SMS communication supplier for:
Combined Motor Holdings (CMH)
Hyundai SA
Protea Hotels
Galileo SA
SAB Miller
Sandown Motors
Adcorp
Human Communications
Stanlib

Who are CHANNEL MOBILE?

Develop, service, maintain & support solutions for over
1000 businesses consisting of over 6000 individuals
across 7 products & 3 SMS gateways.

Offer turn-key and bespoke solutions for Application to
Person (A2P) and Application to Application (A2A)
software systems

Core competencies lie across the bearer services of:

• SMS
• Bulk SMS
• Premium Rate SMS (short codes)
• USSD Surveys
• SMS URL
• MMS
• Mobile Websites

Intro

Mobile is a highly powerful and personal medium.

There are twice as many mobile devices as TV sets, three times as many mobile subscribers as Internet
users, and four times as many mobile phones as PCs

Mobile advertising provides click-through rates ten times higher than traditional online advertising and
the unique ability to effectively target a broad demographic of consumers.

53% have viewed an ad through their mobile phone

Source: AdMob Mobile Metrics Report Jan 2011

Mobile

Africa is the 4th largest mobile advertising market
in the world

South Africans are consuming mobile advertising
and searching on the go
Worldwide Request by Region May 2010

Source: AdMob Mobile Metrics Report Jan 2011

Mobile Market in SA

 In SA 92.8% of the population own a mobile phone
 Mobile Users with Internet Access: 11 million
 Users that currently access internet from
mobile: 4.3 million
 62% of Internet users access the Net (also) from
their mobile
 25% of mobile users CAN access the Internet from
their mobile
 40% of Facebook users in SA access the site from a
mobile phone
 Mxit with over 18 Million users is an excellent example
of SA mobile penetration
 90% of texts are opened within 3 minutes
 35m branded please call me messages in 2010

Source: AdMob Mobile Metrics Report Jan 2011.

Mobile Market in SA

 65% of all Google searches are on mobile devices over
the weekend in SA
 39% of South Africans & 27% of rural users are now
browsing the internet on their phone
 Recognised as the 7th Mass Media Channel and
dubbed as the “First personal mass media channel”
(behind TV, Print, Radio, Outdoor, Internet, Cinema)
 Mobile advertising is growing faster than social media
 Mobile is local – 1/3 mobile searches are local and 63%
called the business straight away i.e. to book a table or
order food etc
 Computer literacy is low, mobile literacy is high
 Accessing the Internet from mobile handset is affordable

Source: AdMob Mobile Metrics Report Jan 2011.
World Wide Worx Mobility2011 Reports

Mobile Market in SA

More than 82% of the SA market is prepaid
61% will not switch from prepaid to contract
14% will switch
25% might switch

Airtime Purchases:

64% Spaza store
57% Supermarket/Grocer
24% Garage forecourt
20% Café/Kiosk
19% Department Store
16% Other Retail Store

Source: Nielsen's Mobile Insights Study

Personal Mobile Phone Ownership

 25,945,000, 76% have a  Average # cell phones  6,138,000, 18% accessed  7,199,000, 21% have
Cell Phone, year on year in home LSM 8-10 = 3 internet in past 12 months landline at home or work
growth +12% and LSM 5-7 = 2 year on year growth +41%

Source: Main Amps 2009AB, Adults aged 15+ 34,020,000

Mobile Ownership: Weekly Activities

RANKED TOP TWO:
- Please Call Me 68%
- SMS 67%
- Ranked 9th on the weekly cell phone activity hierarchy is browsing wap or web from their cell phone, 10% of adults

Source: Main Amps 2009AB, Adults aged 15+ owning a cell phone 25,945,000

Mobile Ownership: Weekly Activities

ACTIVITIES RANKED THIRD TO SIXTH:

- Take Photo’s 27% - Play Games 24% - Listen to the Radio 20% - Use instant messaging MXIT 16%

Source: Main Amps 2009AB, Adults aged 15+ owning a cell phone 25,945,000

Mobile Ownership: Weekly Activities Urban Youth

ACTIVITIES RANKED FIRST TO FORTH:

- Send SMS 87% - Please Call Me 76% - Take Photo’s 48% - Play Games 42%

Source: Main Amps 2009AB, Urban Youth with cell phones, 5,441,000

Mobile Ownership: Weekly Activities Urban Youth

ACTIVITIES RANKED FITH TO EIGHTH:

- Use Instant Messaging -Listen to Radio 36% - Download/listen to Music 32% - Browsed Wap/Web on Phone 28%
MXIT 42%

Source: Main Amps 2009AB, Urban Youth with cell phones, 5,441,000

Urban Youth Coolest Media Choices From
Generation Next Survey

88% 46% 86%
Have a Mobile Phone Have a Computer at Home Read any Print Medium

99% 91%
Have a TV at Home Have a Radio at Home

Source: AMPS 2010 AB AND SUNDAY Times Generation Next

How Many Subscribers Have Accessed
the Internet in the Past Month

LSM 8-10 LSM 6-7 LSM 1-5
29% Social Media 29% Social Media 15% Social Media
25% Mobile Internet 25% Mobile Internet 6% Mobile Internet
2% VOIP Programs

Handsets – Broad Overview

Top of mind Currently Using Likely to Buy Next

60% 52% 56%

14% 25% 56%

3% 4% 3%

2% 4%

6% 7% 19%


Top Handsets in SA

1. Nokia 5130 XpressMusic
2. Nokia 2700c
3. Nokia 2330c
4. Samsung GT-S5233a “Star”
5. Samsung SGH-E250
6. Nokia 5000d
7. Nokia 7100s
8. Nokia 2690
9. Samsung SGH-E250i
10. LG KS360

Source: Opera (Sorted by unique users during Dec 2010) Opera research is only conducted bi-annually, the stats for 2011 have not yet been released

Smartphone Penetration

Smart-phones in SA are owned
by 16% of the population.

In SA there are more smart-
phone subscribers than DSTV
subscribers
By 2014 it is expected that
80% of the SA population will
have a smart-phone.

Source: Mobile Marketing Mindblast 2011, Vodacom, MTN, Gartner Symposium on Innovation


By Mid 2011 MTN had 2.6 million smartphones on its network. Vodacom
had 3.7 million with the Blackberry 8520 being the top seller.

But how do you define a “Smartphone”? By Handset or Mobile OS?



If the handset has a browser, is internet enabled & can
pull email it is a “Smartphone”. So, the Nokia 2730 is a
smartphone.

If defined by Mobile OS then it’s iPhone, Blackberry,
Android & Windows Mobile powered handsets.

Does Symbian not still power South Africa and the
African continent?



Good Morning – Would you like an Apple, Google or Microsoft?

Rule of three phase

Each of these players needs to build a full vertical stack of products

Source: Peter Yared (Web Trends)

Mobile Touch Points

SMS
Applications/Mobile
Web
PRSMS / short codes

Mobile Websites Technology SMS URL

QR Codes Mobile Surveys

MMS

USSD

SMS

Short Message Service (SMS)

1 SMS is 160 characters
What is it?

How does it
Work? Text message is originated within a SMS application (desktop, web
based, database) Travels over the air via wireless control channels
to a central short message centre (SMSC) which then forwards it
to the destination number. If the subscribers phone is not
reachable the SMSC stores the message and attempts delivery
until the subscriber is available

Do Subscribers Prefer SMS
Over Voice Calling?

Female Male

44% prefer SMS 41% prefer SMS
48% prefer voice calls 49% prefer voice calls
8% no preference 10% no preference

Interesting Fact
69% of the men and women who 10% firmly believe it is 5% say their friends prefer
prefer to SMS say it is because it is faster to text than call. when they text them. 84%
of ads are viewed via SMS,
cheaper than calling. with only 9% viewed via
MMS

SMS

How do you plan a Campaign?

Identify type of Campaign:

 Promotional Communication (Pull)
 Outbound Communication (Push)
 Customer Relationship Management (CRM)
 Business To Employee

Identify Objectives of the Campaign:

 What you would like to achieve?
 Drive sales
 Create Brand Awareness Determine the
 Consumer Activation context and tone of
 Lead Generation the message
 Call to Action
(SMS a short code? Browse to site and complete contact form?)

SMS

Focus on
 Relevancy
 Interactivity
 Incentivise

Make it engaging and interactive

 Vote
 Polls
 Content

Ensure Campaign Reliability and Reporting

 Use a certified WASP with a track record
 Determine “throughput” speeds on a campaign
 Are customer replies needed on the campaign?
 Can you measure your results? (Delivery reports)
 Automated unsubscribe handling?
 Can you block SMS campaigns during specific hours?

Case Study

Protea Hotels:
“We had almost immediate results
Type of Campaign: Promotional Campaign from the SMS broadcast – within an
Objective: Drive Sales hour or two we had already secured
Technology Used: Bulk SMS through Channel one booking and to date we have
Mobile’s HotelCom and Campaign Manager systems managed to sell 5 room nights with
our Last Minute special. It is a great
Guest data was mined and extracted. tool and will most definitely be using
Personalized Bulk SMS sent to previous guests. Net it again!”
result was an increase in booked room nights.

Turnover: Roughly 10 times their Ad Spend
Protea Testimonial:
Shannon Taylor, Marketing Plan Co-ordinator

Premium Rate SMS (Short Codes)

A short code is a 5 digit number that is used in application to person SMS services.
Creates an excellent ‘call to action’ when appended to current marketing material. It can
What is it? carry a standard rate charge or a premium rate charge to the sender of the SMS.

Tariff Bands:

R0.50 R3.00 R15.00
R1.00 R5.00 R20.00
R1.50 R7.50 R25.00
R2.00 R10.00 R30.00


How does
A short code can be ‘dedicated’ or ‘shared’
it work?
A unique number that belongs to one business only.
Dedicated: For Example: Channel Mobile own 31941

All SMS’s sent to 31941 are allocated to Channel Mobile

A unique number that is shared between several businesses. Each business is allowed
Shared: to create ‘keywords’ on the short code. The keyword represent each businesses campaigns.

For Example: Channel Mobile and JWT launch campaigns on 45529. Channel Mobile use
the keyword ‘apple’ and JWT use the keyword ‘pear’

All SMS’s to apple are allocated to Channel Mobile’s campaign
All SMS’s to pear are allocated to JWT’s campaign



What are your objectives?:
• Database building
• Lead Generation Create
• Brand Awareness
• Information Delivery

Your Campaign Objectives determine the Short Code Mechanic:
• Database building
• JWT launches a Premium Rate SMS competition for Smirnoff.
• Prizes communicated on all marketing material for the campaign
with the ‘call to action’ SMS the short code to Win.
• Consumer SMS’s the short code.
• An automated reply is sent thanking them for making contact.
• The entry is logged in our database and exported to CSV for future
mobile marketing campaigns.


Lead Generation

• Consumer SMS’s the short code
• An automated reply is sent thanking them for making contact
• A call centre operator receives the lead via email and immediately contacts the consumer

Create Brand Awareness

Information Delivery

• Consumer SMS’s the short code. An automated reply is sent with a link to a video
• Consumer SMS’s the short code. An automated reply is sent with a link to a mobi site
with additional information


Ensure SMS is integrated to your clients existing marketing
channels:

• Print
• Television
• Outdoor
• Web
• Email
• Point of Sale

Maximise your opportunity to collect your clients mobile
numbers at every contact point

Grow your clients database


Campaign Spin Off - Revenue Share:

The revenue generated by the SMS is shared between the Network
Operator (Vodacom, MTN, Cell) and the WASP.

In turn we pass on a majority of the revenue share we receive, back to
our customers after the reply SMS (Mobile Terminating) message
deductions.

Note: CPA regulates the cost of entry to a promotional campaign to R1.50


Case study:

Client: Col Cacchio

Short Code: Dedicated R5 short code (before CPA changes)

Objective: Opt In Database Building
Future store promotion
Increase Store Foot Traffic

Mechanic: Customers could win a trip for 2 to Italy by sending a SMS to Col Cacchio’s
dedicated short code. Promotion advertised in store with table talkers,
in the bill and via word of mouth.


Outcome:

• Over 10 000 entries in under 3 months

• Over R30 000 in revenue share earned

• An extremely strong opt in database of Col Cacchio clients was built.

• Opt in list used for future Bulk SMS Campaigns to promote
restaurant specials, CRM campaigns and to promote future
short code competitions.

SMS URL

• Short Message Service (SMS) which includes a URL in the message.
What is it? • 1 SMS is 160 characters.
• Customer able to click on the URL in the SMS to be linked to a Mobile
Website or hosted content such as a 3GP video clip.

Text message is originated within a SMS application (desktop, web based, database)
How does
it work?

SMS URL

• Allows you to deliver an array of
Why would content – Graphics, Video, Audio
you use it? • Increases the interaction between
your brand and your client

• Can be integrated to any current Bulk
SMS or short code campaign that you
are implementing for clients.

• Avoid handset compatibility & display
issues of MMS

• Pricing

SMS URL


Identify type of Campaign:

 Promotional Communication (Pull)
 Outbound Communication (Push)
 Customer Relationship Management (CRM)
 Business To Employee


What you would like to achieve?
 Create Brand Awareness
 Share Product Information/Knowledge
 Consumer Activation

SMS URL

Focus On:

• Relevancy
• Interactivity

Make it engaging and interactive:
• The URL can link to hosted content that plays directly on the
handset – branded video.
• Creates a viral element.
• Incentivise the consumer to share.

Ensure Campaign Reliability and Reporting
Follow the Do’s and Don'ts of any mobile campaign

SMS URL

Case study:

Client: Direct Axis

Objective: Reduce client debt collection period

Mechanic: A WAP Push Messaging campaign was coupled with the development of a
Mobisite. Customers received a SMS with a URL. When clicked, the URL
directed the client to a Direct Axis branded Mobisite pre populated with the
clients information and their outstanding loan amount.

Clients could perform a 3D secure credit card transaction on the Mobisite
or request a change on their debit order date.

Outcome: Over R160 000 in outstanding loans collected in 2 days. The equivalent in
man hours would have required 2 full time employees working 5 days.

Mobile Surveys

Simple one page mobile website in the form of a survey. Header and footer
graphics included on the page with a series of questions listed between the two.

What is it? Survey questions can take the form of:

• Rating scales
• True False
• Multiple choice
• Open ended

• SMS sent to a consumer which includes the mobile
survey form URL in the message.
How does • Customer able to click on the URL in the SMS to be
it work? linked to the Mobile Survey.
• Survey completed on the mobile device and submitted.
• Data logged on a database.
• Exportable reports for campaign administrator.

Mobile Surveys

• Feedback

Why would • Profiling/Segmentation

you use it? • Insight

• Send A SMS

• Publish a short code
How do you
implement it? • Publish the URL

• Cross promote on other campaigns

Mobile Surveys

Case study:

Client: The Heavy Chef Project

Mechanic: WAP Push Message sent to all event attendees linking to a Heavy Chef branded Mobile
Survey. Guests stood the chance of winning a case of Corona or Backsberg wine in
return for completing the survey.

Outcome: 92 messages sent
37 surveys completed
40% response rate
Heavy Chef team were able to collate additional info on their guests
Plus, identify new talk topics for future events – crowdsourcing.

USSD

Unstructured Supplementary Service Data (USSD)
What is it?
Technology used to send information (usually text menus) between a mobile phone
and an application.

USSD will allow a consumer to request information in numeric sequence (starting with *
How does and ending with #), or menus via their mobile phone.
it work?
Therefore allows the brand owner to display menus on a mobile phone, enabling
customers to interact with these menus.

The user is billed on a time principal instead of per transaction.

USSD

• Menu navigation can be displayed on a large variety of handsets – Mass Usage
• Low cost
Real time
Why would •
• Interactive navigation
you use it? • Easy to use

You can provide brands with:

• Menu based information services
• Location based content services
• Surveys
• Feedback, Voting & Poll services
• Deliver prepaid airtime
• CRM
• Please call me

• Limited/poor aesthetics
Limitations:
• Cant forward or save messages
• Harder to remember USSD code as opposed to a 5 digit short code
• Reliability? Session based timeouts

USSD

Case study:

Client: South African Retailer

Objective: Verify existing customer information
Establish consumer regions & retail preference

Mechanic: 5 questions asked in a USSD survey covering consumer info, store preference & region

Outcome: Database size: 75 000
Completed surveys: Between 8% & 10%
Opt Outs: Between 1% & 2%

MMS

• Multimedia Messaging Service (MMS)
What is it? • More advanced version of SMS
• Capable of delivering and displaying graphics, animated pictures, video, audio
on a mobile device

• Allows you to deliver an array of content
Why would you • Jpeg images, Gif images, Video, Audio
• Increased user interactivity through multimedia
Use it? • Media rich content allows for better branding
• Definitely creates a talking point for client
• MMS can be stored and passed along

• Handset Compatibility & Configuration
Limitations: • Display issues
• Mobile Network support
• Reliability
• Cost

MMS

Case study:

Client: BMW Germany Campaign

Objective: BMW Germany wanted to remind its customers that snow tires are more of a
necessity rather than luxury.

The MMS message had a personalized customer greeting and recommended a
specific tire.

Price of the tire, lists of dealerships in the area, picture and description of
the tire were all included in the MMS.

Outcome: MMS Sent to 1200 customers
30% conversion rate achieved

QR Codes

• 2 dimensional bar code
What is it? • Also called sema codes

How does Why would you
it work? use it?
• Unique communication method
• Embed a URL into a 2 dimensional bar code. • Direct link between advertising
• Consumer takes a photo of the image, the material and Mobile Websites and
reader interprets the URL and connects Mobile Surveys.
the phone to the URL. • Easy call to action

QR Codes

Create Immediate Satisfaction:
• Consumer sees a billboard or poster advertising a movie
• Takes a photo of the QR code
• Application links the mobile to the booking page

Functional:

• Consumer sees print ad to win a car
• Takes a photo
• The application creates a pre populated SMS
• Consumer clicks Send to enter

South African Barriers:

• Experienced high adoption rate in Asia as handsets pre installed
with required software

• Are SA consumer educated enough to adopt the service?

• If advertised across a clients marketing channels will consumers
use the medium?

QR Codes

Case study:

Client: PFLAG (Parents, Families & Friends of Lesbians and Gays)

Objective: Collect inspirational testimonials from the lesbian, gay, bisexual and transgender
community sharing stories that convey the importance of having a supportive
community.

Mechanic: QR Codes were placed in print ads, in-store displays and outdoor

Outcome: QR code extended the conversation that began in print.
Gives a voice to voiceless media


Mobile Websites

Facts:

• 12 million people on the mobile web and 6 million on desktop web. Only
2 million cross over.

• 65% of all Google searches are on mobile devices over weekends in SA

• LSM 6 is the heaviest user, followed by LSM 5

• Based on the above and the number of mobile phone subscribers in SA,
mobile is probably the biggest channel available for brands to market their
products, whilst being the most direct and cost effective.

• A Mobile Website should be an integral part of a companies marketing
strategy.

Mobile Websites

Considerations:

• Don’t scale down the client’s website – build for mobile.

• Less is more with mobile site design, but less is not more when it comes
to functionality.

• Focus on user experience design but relate that to technical functionality
of the site.

• Consider Connections Speeds and Data Costs. Prepaid usage is large,
only deliver the required content

• Serve up the correctly optimized (size) site per handset

• Content VS Context: Determine the context then create the content
for the site

Mobile Websites

What are the Objectives of the site?

• Display promotions to consumers
• Provide store locations, directions and phone numbers – click to call
functionality directly from the mobile website
• Catalogue your products
• Mobile commerce – Find items and pay directly from their phone
• Apply for a loyalty card
• Build an opt in database – Squeeze form “sign up for mobile alerts and
receive R10 off your purchase”.
• Future marketing campaigns to the opt in database - variety of
technologies to implement this.
• Serve product specific videos
• Basic content and product information
• Self service and FAQ

Good Examples:

wrewards.mobi
m.iol.co.za
Ewn.mobi
Timeslive.mobi

Mobile Web VS Applications Debate

Who is the target market?

Lower LSM groups have lower levels of smart phone penetration
Its estimated that there’s only 100 000 iPhones in SA, how many owners actively use apps?

Is budget a concern?

Typically mobile websites are cheaper to design and develop. If you build an app you need to build for all operating
systems: iPhone, Blackberry, Android, Windows Mobile.

Do you need the power of an app to serve your clients content?
What level of uptake do you require?
Most downloaded app in SA was for Ster Kinekor (roughly 350 000 downloads) – wide LSM group, captive
market, much needed application.

Compared to international market - Over 300K apps in iPad/iPhone app store with 100-150 iPad apps having
reached over a million downloads since launch.

Is this the best approach or will you see better uptake and usage of a mobile website which is accessible to all?

Don’t build an app for apps sake – Can you service the consumer with a mobile website?

Campaign Strategy

Research your market:

Gain as much market understanding as possible to ensure that your approach is correct.

Having a great strategy is crucial to success in the ever-shifting landscape that is mobile today. Yet, a
recent Forrester study revealed that ¾ of the most experienced brands in mobile marketing don’t.


What you would like to achieve?

• Drive sales
• Create Brand Awareness
• Consumer Activation
• Lead Generation
• Call to Action (SMS a short code? Browse to site and complete contact form?)
• Introduce a New Product
• Create Repeat Business
• Increase Spending During Current Visit
• Gather Customer Feedback
• Engage Customers / Build Relationships
• Provide Information

Campaign Strategy

Identify type of campaign:

• Promotional Communication (Pull)
• Outbound Communication (Push)
• Customer Relationship Management (CRM)
• Business To Employee

Identify the best technology to be used:

• SMS
• PRSMS
• WAP Push Message
• Mobile Survey
• Mobile Website
• USSD
• MMS
• QR Code

What is the best medium for your campaign?

Campaign Strategy

What technology How do you integrate
Where does your What will have
do they use/can technology in a campaign
target market the best reach?
they afford to us? to cross promote & cross
congregate?
pollinate between
them?

Determine the context

Define the tone of your message

Focus on:
• Relevancy
• Interactivity
• Incentivise

Campaign Strategy

Make it engaging and interactive:

• Vote
• Polls
• Content
• Incentives

Choose the correct supplier:

Use a certified WASP with a track record

Double check their technology and abilities

Data management & reporting

Can you measure your results? (Delivery reports)

Campaign Strategy

Double check The Do’s & Don'ts of a Campaign:

• Ensure the subscriber has opted in
• Offer an Automated Opt Out mechanism
• Ensure Replies are enabled
• Check delivery speeds and times – Do you need to set “block” times
• Incentivize the consumer
• Include a call to action in a campaign
• Follow the CPA
• Don’t SPAM
• Don’t send “after hours”
• Don’t block replies
• Do not forget to offer an “opt out”

Look to Case Study’s for proven Campaigns

Reporting/Management

Hot Button Topic! “Mobile Measurement”

Mobile’s ability to become a mainstream marketing channel was tied directly to marketers, agencies and brands
ability to successfully measure and demonstrate ROI.

That measuring marketing success – particularly mobile marketing – is a challenge isn’t exactly headline news.
However, a recent King Fish Media study published by eMarketer revealed that 63% of mobile marketers are either
not even trying to measure return on investment on mobile campaigns, or worse, don’t know.

Still not sure about Mobile?

Direct

Immediate

Responsive

Always On

Cost Effective

Used to Acquire, “Re-activate”, Up Sell & Cross Sell
customers.
Mobile is an interactive response channel:
• Integrate mobile with traditional media to
create direct marketing and CRM channels
• Use it as a platform to build a community
around a brand

Contact Us

Contact:

Telephone: 087 351 5225

Helpdesk: 0860 104 671 “SMS INFO to
33369 and we
Website: www.channelmobile.co.za will contact
Email: support@channelmobile.co.za you”

Social:

A Mobile Masterclass by Channel Mobile

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A Mobile Masterclass by Channel Mobile