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Issue 40 • JUNE 2013

#PAYMENTS Research reveals what UK really wants from m-payments

THIS MONTH... News 

The latest news from the industry, along with analysis of what that news means, including: • 20% of online retail through mobile in Q1, says IMRG 3 • RJ Media uses C3’s multichannel contact centre for psychic 4 • UK users quite Facebook due to advert fatigue, finds YouGov 5 • O2 sets up divisions to mobilise local government 6 • txtNation rolls out full service range in Belgium 7 • Telcos most ‘evolve or die’ as digital growth slows 7 • Smartphone owners with tablers spend 3 times as much on apps 8

Analysis

New research by international payments provider VocaLink reveals that 60% of UK consumers now own a smartphone and are using them as payment devices on the move. However current mobile payment behaviour remains fragmented with mobile payments currently used on an ad hoc basis in a range of situations, including sending money to friends and family (6%), paying for parking (5%) and purchasing groceries in supermarkets (3%). The research reveals that there is no one solution which attracts more than 5% of current mobile payment users on a regular basis. VocaLink’s research suggests that it is banks who are ideally placed to be the trusted providers of a ubiquitous mobile payments service with 35% of respondents more likely to pay for items using their mobile phone if it was provided by their bank. 63% of people who already make some mobile payments agreed they would also trust their banks to provide this service. Finally, 30% of respondents said they would use mobile payments and interact with their bank more often if this offering was available. The bank-provided app also has another distinct advantage; it gives bank customers the ability to see their balance on screen at point of payment and make informed choices about whether to pay for goods or services and from which account. Paul Stoddart, Managing Director Strategy & Business Development at VocaLink says: “The prolific growth in smartphone ownership and app usage, combined with an already established mobile banking market and the availability of Faster Payments, means we are entering a perfect storm for mobile commerce. Our research confirms

continued page 2>>>

Editorial Mobile brain drain The west is facing a paucity of mobile expertise. Is it time to rethink education and immigration policies? Paul Skeldon reports from Moscow 9 OPINION Summit for Everyone With the Payforit Summit taking place on 26 June, Rory Maguire outlines the roll PFI can play in a range of businesses – and why its good for consumers 11 ANALYSIS 40 steps to PRS heaven Paul Skeldon takes a look at how better training is helping all businesses get to grips with meeting labyrinthine PRS regulations 12 ANALYSIS The future of brands Sri Sharma, founder and Managing Director of Net Media Planet explains how brands can maximise the business opportunity that the mobile channel offers 13 ANALYSIS Destination Amsterdam World Telemedia Amsterdam is set to get going in October, but we need your input now. So see what we have planned and stick your oar in, says Paul Skeldon 15

Directory

The leading industry directory of services 19

Latest news at www.telemedia-news.com Catch our blog at www.telemedia360.blogspot.com


NEWS #RETAIL 20% of online retail sales were through mobile in Q1, says IMRG

there was significant uplift in mobile sales in the first quarter of 2013, with 1 in 5 UK e-retail sales coming through a mobile device – smartphones and tablets – according to figures published by IMRG and Capgemini. The 20% barrier was reached following a big leap in mobile sales activity. In the previous quarter (Q4 of 2012), mobile devices accounted for 15.4% of UK e-retail sales. This surge is likely to have been influenced by the huge increase in tabletowners following strong sales of the devices over Christmas. The percentage of e-retail visits via mobile devices also rose steeply, accounting for almost 1 in 3 (30%) of total visits in Q1 of 2013, up from 24% in the previous quarter. Mobile has long been considered a key part of any retail strategy, yet the growth rates have been staggering nonetheless. Sales via mobile devices shot up from 0.9% in 2010 to 4% in 2011, and reached 12% of e-retail sales in 2012. Visits via mobile have risen from 2.6% in 2010 to

8.2% in 2011, reaching 21.3% of all e-retail visits in 2012. Tina Spooner, Chief Information Officer at IMRG explains: “Mobile is clearly a game-changer for the UK e-retail industry, with m-retail sales increasing at more than double the levels we saw in the early 2000s when IMRG started tracking online sales. At the beginning of 2010 mobile sales accounted for just 0.4% of the UK e-retail market – within three years it has surged a staggering 5,000%, with m-retail now accounting for one in every 5 online purchases. “With the continuing shift away from desktop to mobile internet use, it is inevitable we will see the latter platform outstrip desktop PCs as the preferred device for shopping online, and from the latest figures it is apparent this may be sooner than expected.” Chris Webster, VP, Head of Retail Consulting and Technology at Capgemini adds: “In 2020 when we look back on the last ten years, we will undoubtedly see it as the ‘mobile decade’. In the first

three years alone we have seen sales via mobile devices increase from nearly zero, to over 20% of all e-retail sales. However, we are only scratching the surface and over the next few years we will see the technology reveal its full potential. “The mobile device will be the aggregator of all digital services, enabling the internet to recognise who we are and to give us access to an endless list of personal features. As we access all these services digitally, tickets, boarding passes, keys, payment and loyalty cards, and even passports, will become to us what typewriters are to my children; objects of intrigue and amusement.” Sean McKee, Head of Ecommerce and Customer Services at Schuh says: “We have continued to see mobile device participation and sales power ahead in the first quarter of 2013, and believe that this will be the last quarter where desktop traffic is still the majority player. For us at least, a key tipping point is about to be reached.”

>>>from page 1 What UK wants from m-payments there is prevailing consumer trust in the banks to provide this service. Given convenience is the overwhelming driver for widespread adoption, it is crucial that banks work with stakeholders including retailers, billers and telecoms companies to create the necessary infrastructure for this service to really take off. The UK is now ready, willing

and able to make mobile payments creating an exciting market opportunity for companies willing to collaborate to provide a ubiquitous and trusted solution.” Whilst the appetite for mobile banking and payments in the UK is growing with half the population either already using mobile payments (20%)

or interested in doing so (30%), uptake is rapidly gaining momentum amongst the future generation. Younger adults are especially likely to be mobile payment users (41% of 16 to 24 year olds) and around half of those who are not already using their smartphone to pay for goods and services are interested in doing so.


NEWS

#TELECOMS RJ Media picks C3’s multichannel contact centre to enhance live service delivery

rj media, the company behind Psychic Sofa, is investing in a new multichannel contact centre solution that will enable the business to be more flexible in its service delivery whilst increasing revenues through incremental billing. RJ Media offers psychic and other live services via a number of channels and is always looking to improve the experience for customers; many of whom are long-term clients.

The new multi-channel contact centre solution from C3 will help RJ Media to add value across its full range of services through easy payment options, greater web integration and improved E-wallet loyalty. Fusion Contact supports PCI Compliant credit card billing modules for easy ‘tokenised’ payments and extended end-of-call billing. The system also incorporates C3’s Fusion Multi Channel IVR Toolkit, giving RJ Media the control to rapidly develop and deploy interactive voice response (IVR) services to meet changing market demands. “We are all very excited to incorporate C3’s multi-channel contact centre into our current business model,” said Richard Sawyer, partner at RJ Media. “ The advancements in C3’s software will allow us to progress with our goals and visions for the foreseeable future

without any of the limitations we have previously experienced. The new software gives us the freedom and flexibility to develop existing services, bring new products to the marketplace and continue to leverage our competitive advantage throughout the RJ Media product spectrum.” Shagufta Malik, General Manager RJ Media, added: “We operate in a very competitive market place and our customers put a premium on our agents’ expertise. The investment in Fusion Contact will enable us to differentiate our services, add value for our customers and simplify the related administration.” RJ Media has worked with C3 for over a decade. Fusion Contact represents an update to the company’s existing C3 virtual contact centre solution that will provide the foundation for future growth through continued innovation.


NEWS

#SOCIAL UK users quit Facebook due to advert fatigue, finds YouGov study facebook has seen a decline in its UK users by nine per cent over the last year due to irritation with persistent adverts according to a YouGov poll. And its an outcome that was inevitable says Adblock Plus. Till Faida, Adblock Plus Co-founder explains: “Facebook is confusing shareholder value and profitability with providing a good service to their users. It’s as though Facebook has forgotten that users want to connect with their friends, not advertisers. Social media sites need to understand that they do not have a commercial relationship with their users, and people instead use Facebook as an essential tool to socialise with their friends. Pushing products and services through advertising in this way is an intrusion that users object to and are clearly prepared to walk away from social media sites, which push this advertising too aggressively.” Furthering the growing trend of adver-

tising on social media, Twitter last week announced a new service which will allow brands to see which users have tweeted about shows they advertise with and target those users with advertisements. Till added: “This is extremely intrusive and if the Facebook statistics are anything to go by, may actually put users off tweeting about adverts they see. This will have a totally negative effect - if users know they’re subsequently going to be bombarded with promotions from the company they tweet about, they will curb their opinions, defying the point of the social network! “Instead of viewing their power as a tool to take advantage of user trust, large social networks such as Facebook and Twitter should instead be using their power as a tool to better understand the public and what they find acceptable or intrusive. In the long term, this would be more benefi-

cial for all involved – it would enable users to express how they feel about marketing messages and tailor what they are exposed to, and it would enable advertisers to see more effective advertising as they could ensure that their messages are what the public want to see. “Until this disconnect between advertisers and users stops, and large corporations realise that they need to ask users what they want, users will continue to take a stand, either disabling these social networking sites, or enabling ad blockers such as Adblock Plus.” Facebook Exchange is just the latest addition to a long line of monetising advert operations in an attempt to demonstrate that it can keep revenues and profits high since it went public last year. The figures released by YouGov suggest that Facebook should be looking towards pleasing its users, rather than advertisers.


NEWS

#GOVERNMENT O2 sets up divisions to target public sector, starting with local government 02 has set up a series of new departments to help develop and promote mobile services and the savings they could potentially bring to the cashstrapped public sector. The new departments will cover local government, passenger services, justice and emergency services, health, retail & leisure, insurance, media & communications, and business services. As a starting point, the operator has appointed Mark Adams-Wright as Head of Local Government. Previously Chief Information Officer and Head of Customer Service at Suffolk County Council, AdamsWright brings with him 15 years’ experience in IT and customer service from both the public and private sector; including Diageo, DHL, Santander and Dell. Most recently, he was responsible for leading Suffolk County Council’s countywide plans to integrate IT systems across A5 ad.pdf

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its various public sector bodies, increasing efficiencies and reducing costs for local communities. With public sector departments under more pressure than ever to make savings, local authorities face the challenge of reducing costs and increasing efficiencies while at the same time delivering valuable services to local communities. Having experienced the challenges faced by local authorities first-hand, Adams-Wright will bring in-depth knowledge to give expert support and advice to O2 Business customers. Mark Adams-Wright, Head of Local Government at O2 said: “I’m thrilled to have joined O2. I’m really looking forward to bringing all of the innovation, opportunities and high quality service that O2 offers into local authorities, and creating a step-change that the sector needs to address its enormous challenges.”

Billy D’Arcy, Managing Director, O2 Public Sector, commented: “There’s no doubt that local government departments are under huge pressure to drive savings, while at the same time still delivering great services for local communities. So who better to help our customers tackle these challenges than someone who has experienced them first hand? With his breadth of experience and in-depth knowledge of the challenges and pressures facing public sector customers today, we’re extremely pleased to have Mark at the helm of our local government practice.” O2 Business has created ten new practices to give customers a tailored service that suits their business and industry needs. The new model aims to improve how O2 works with businesses, to give enterprise customers a more specialist service and increase expert knowledge across priority market sectors.

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NEWS

#NETWORKS txtNation opens full range of services in Belgium txtnation has has officially switched on its direct connectivity across all mobile operators in Belgium and is set to provide a full array of mobile billing options, of which includes Premium SMS (Short Codes - MO, MT), WAP Billing, not to mention Direct Operator Billing, which is due for a late 2013 release. txtNation is currently showcasing its mobile gateway availability to clients looking at this attractive market. Belgium has a vibrant mobile community, with more than 10 million people and a strong mobile penetration rate of 115%. Proximus is the largest network followed closely by Mobistar and Base (KPN). txtNation has arrangements with all three operators. txtNation Director, Michael Whelan explains: “Being a Tier 1 mobile aggregator in any market provides us with far more options for growth and Belgium is no exception. With our already high levels of business in this market, we can now provide even better technical support, customer care, throughput and increased reliability to our clients going forward.” txtNation is becoming one of the most connected mobile aggregators, offering

monetisation opportunities across its multiple direct connections to mobile networks worldwide, with a clear focus on mobile billing and SMS messaging. Ashley Cross, COO says: “We are very excited to be entering the Belgian market in a direct capacity. We have been involved in discussions and approvals with the Belgian networks over the last couple of years. This move follows our focused ramp up strategy for our direct aggregation and connectivity, of which has already included expansion into all of the Nordic regions, as well as several other key markets.” Being direct is where txtNation says it wants to be long term. The company’s growth in the past few years – and attaining mass operator connectivity – has enabled it to provide clients with far greater flexibility, improved support and enhanced billing capabilities. Alongside traditional Premium SMS, with this deal, txtNation claims that it can deliver Direct Operator Billing alongside the more traditional mobile billing options. The company also says that it can also provide increased quality across Bulk SMS messaging, using its operator interconnects.

#TELECOMS Telcos advised to “Evolve or die” as global digital growth drops the digital world has recorded a sizeable drop in revenue during 2012, with growth decreasing to 2.7% after two steady years of recovery, according to the figures released in the DigiWorld Yearbook. Didier Pouillot, who heads up the project, says: “Equipment markets took a severe battering in 2012, with unit sales shrinking in virtually every category and pressure on prices almost wiping out any of the benefits of customer upgrades. The TV market was the hardest hit, which dragged the entire consumer electronics market down by 7%’.” But increased competition in the smartphone and tablet markets offers a glimmer of hope for the other two sectors. And although services markets can be said have weathered the storm, relatively speaking, it seems highly unlikely that they will find their way back to the growth rates of the

mid-2000s, and even less to the doubledigit increases of the late 1990s. The sole exception here being internet (OTT) services which continue to grow by an average 20%. Pouillot expands “Telcos do have certain leverage to deal with this change, starting with creating more value from network access now that OTT services are increasing user consumption. NGN technologies allow telcos to increase speeds (‘best network’ strategy) and to introduce noticeable quality improvements, both of which can differentiate their offerings. But it is clear 2013 is a pivotal year and telcos must embrace innovation. A simple Darwinian case of evolve or die!” But digital innovation is far from exhausted. In his introduction IDATE CEO, Yves Gassot, reaffirms the three driving forces behind digital innovation today, namely mobile, cloud computing and big data.


NEWS

#APPS Smartphone owners with a tablet spend three times more on apps, survey reveals tablet owners spend significantly more on smartphone apps than those who do not own a tablet, according to the latest results from Analysys Mason’s European and US Connected Consumer Survey. The share of smartphone owners who spend more than €5 a month on apps is nearly three times higher for tablet owners. App spend is driven by a minority of users, which generates intense competition among app publishers and little revenue for operators providing billing capabilities on app stores. The ability to isolate, understand and then encourage users to spend more on apps is critical for a long-term sustainable app strategy. Multi-device ownership is also known to drive mobile data spend. Operators can bundle app vouchers with multi-device tariffs to differentiate from the competition and drive multi-device connectivity onto their network.

The share of smartphone respondents buying apps and the level of spending allocated to apps vary significantly by device model. For example, only 30% of iOS owners in our panel of respondents had never bought an app compared with 58% to 66% of respondents with smartphones that use other operating systems. Interestingly, the survey results showed a correlation between spend on apps and the length of ownership of a smartphone. The share of app shoppers who spend more than €2 per month on apps is 10 percentage points higher (60%) for those who have owned their device for less than 6 months compared with those who have owned their devices for longer (50%). App spend is partly driven by the type of device that smartphone users own. Owners of newer and more-advanced devices are more likely to buy apps. People who own a tablet typically have

more disposable income than those who don’t and are more likely to own highend smartphones on which app spend is higher and more prevalent. More than 60% of tablets owners who have installed apps on their smartphones have paid for an app compared with 40% of non-tablet owners. In addition, the share of smartphone owners who spend more than €5 per month on apps is nearly three times higher for those who also own tablets compared with those who do not. However, the gap in smartphone app spend between tablet owners and others is set to decrease as tablets become more mainstream. New connected device segments such as tablets are driving demand for apps and connectivity. It is important that operators and vendors capture and monetise this demand.

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OPINION

FROM THE EDITOR

Mobile brain drain With Apple, Mircrosoft, Google and Facebook taking all the best brains out of the market, do we need to start treating foreign students differently and changing how we educate our own? Paul Skeldon reports from Moscow on a recent trip to moscow to the excellent DEMO Europe event – where tech start-ups pitch to an audience of other techheads, VCs, angels and the press – I was astounded by how advanced, creative and focused mobile and online technologists are in Russia, Russian Federation countries and Turkey. It really put into perspective how small, really, the UK and developed European markets actually are. And how excited and forward thinking these ‘new’ regions are. But the real eye-opener for me was in talking to the US Ambassador to Russia, Michael McFaul, and entrepreneur Gentry Underwood (founder of Orchestra and developer of Mailbox, recently sold to Dropbox). Neither really told me anything about technology or the mobile market that I didn’t already know, but rather they offered a stark reminder of how politics impacts the world of mobile and online tech. The issue is that of education and immigration. Ambassador McFaul was passionate about how, despite front line political issues between Russia and the west being a bit sticky right now (namely because of Syria and US policy on the Middle East), behind the scenes the two countries are working very closely together to share technological expertise and, for the Americans, to tap into huge wealth of knowledge and creativity in digital technology in the former Soviet Union. The problem is that there are not enough ‘brains’ in the US – and to some extent the UK, Germany, France and Spain – to offer creative new ideas and the creation of new products that create new markets. Especially in mobile. Both McFaul and Underwood, are concerned that massive tech brands such as Apple, Microsoft, Google and Facebook are taking all the best brains, leaving a paucity of top flight engineers, designers and technologists to help develop other, smaller and more entrepreneurial businesses. But there is also, according to both McFaul and Underwood, another issue at play: the way that the economic downturn has created an atmosphere that is unfriendly to foreigners. Currently, in the UK and US, the best foreign students – who can afford a western education – are being educated and developed to a very high level, but rather than being allowed to use that knowledge to better the economies of the countries they have been educated in, they are ‘encouraged’ to go home. And they take their skills with them. The official UK policy is to attract the best and brightest from overseas to study here – but only if they can pay through the nose to do it. And the visa application process – and indeed the visas on offer themselves – are so convoluted that they are very hard to fathom. Looking at them, however, you see that student visas almost all insist that the student, on graduation, doesn’t have much leave to remain. We are actively turning these highly skilled people away. Couple this with an enormous backlog of visa applications for students to study in the UK and what one Home Office insider describes as “utter ineptitude”, it doesn’t look good. The education systems in the UK and US are also woefully behind the times when it comes to teaching the kind of skills needed to foster the mobile technologists of the future too. With the big IT giants draining the top domestic brains from the workforce, and with these highly educated foreign graduates going to China, India Russia, Turkey and Brazil, the developed world is teetering on the brink of being left behind in the digital technology race. Of course, there are many brilliant people in each country, but if you look at it purely as a numbers game, there are more of them elsewhere than there are in the UK and, increasingly, in the US. And they are increasingly getting funding for their ideas. So what needs to be done? Better education is obviously key: we need to create more digital brains domestically. We also need investment in start-ups. But we also need to look at the value that foreigners bring to any market. And this is perhaps the hardest issue: especially given the current climate of anyone foreign being seen simply as a benefits claimant who gives nothing back. But the other thing that my jaunt to Moscow showed me was that any old enemy can become your friend and friendship is more productive and rewarding all round than mistrust and downright hatred

Editorial Editor Paul Skeldon paulskeldon@me.com | Sales & Marketing info@telemediamagazine.com | Production Director Annika Micheli annika@telemediamagazine.com | Publisher Jarvis Todd jarvis@telemediamagazine.com To subscribe, please go to www.telemedia-news.com What we’ve been listening to Demons – The National | What we’ve been amused by Russia | Who we’ve been following Tory Affair | What we’ve been reading about Endless pitches for the next big thing| June 2013 will bring... rain (probably)


OPINION

Rory Maguire

Summit

FOR EVERYONE?

With the Payforit Summit set to take place in London on 26 June,Rory Maguire explains how anyone selling anything to consumers should be there – because it makes everything better for consumers.

with online advertising spend moving increasingly away from the eyeball model of CPM to the more success based model of the cost per acquisition (CPA), online and mobile internet consumers –in these austere times- are not conducting the large purchases that should create the CPA ad revenues. In the face of this, online destination sites - in particular in the publishing sector - that have relied for so long on eyeball based ad revenue are now looking at alternative means to monetise their content. More importantly, the publishers are looking to the new breed of internet consumers, the smartphone generation. Established online publications are investigating paywalls. Paywalls open up in-depth content to consumers who are seeing out quality journalism and are happy to pay a small fee to receive the content they require, particularly if it kills off the ads. The Sun announced a Paywall for its sport pages at £2 per week from August, but have not yet told us how their customers will be paying. If they are smart, they will use the UK wide mobile payment scheme Payforit. Why? Because 100% of their customers can use it, it does not require a laborious sign up process, (which in itself is hostile to the smartphone small screen) and it allows the spontaneity of their customers being able to pay for one week while their favourite sport is great and skipping the next when there is a lull in events. How consumer centric would that be?

We hope that The Sun and other online publishers will send their paywall decision makers to the Payforit Summit on 26th June in London and learn how easy it is to get going with charge-tomobile payments. Consumers will benefit from these decisions which could see a reduction in blanket advertising on the small screen while improving the quality of digital journalism. Also at the Payforit Summit will be the unveiling of the Payforit In-App trial. This trial is underway with a social media app where members can buy premium services such as boosting their profile and interacting with local people. App providers will benefit from in-app charging via mobile for its ubiquitous capability, but also for the relative freedom from certain restrictions that App stores may impose. There are also emerging issues with children using parents App Store accounts to run up huge credit card bills that the mobile payment intermediaries can technically prevent. Mobile Payments or Charge-to-Mobile, particularly using the UK wide standardised payment facility, Payforit, is coming to the fore as an attractive solution to a lot of new commercial challenges. With a near 70% conversion rate (compared to average 32% for other forms of payment), it is also a highly successful model. The line up of speakers is impressive with senior figures from the mobile networks, payment intermediaries, highly respected magazine editors, legal advisors, and regulatory advisors. The Payforit Summit on 26th June, held in the sumptuous Carlton House Terrace off The Mall brings together the expertise in the Mobile Payments industry to educate and inform companies looking to enter into Mobile payments for paywalls, apps and other ventures. For those that are already using the Payforit Scheme, there is additional intelligence to be gained on improving positioning and making the most from the new Payforit developments.

WANT TO ATTEND?

The event kicks off at 11:00 (registration commences at 10:30) on 26th June. www.payforitsummit.com


OPINION PRS

40 steps

TO PRS HEAVEN?

With a tough regulatory regime, the UK PRS market has cleaned itself up. But making sure you meet all the rules is tough. But industry body AIME is seeking to put that right with a series of PRS training courses. Paul SKeldon reports ahead of the latest one on 11 June in London the prs market has seen substantial changes over the past few years in how it is regulated. While much of it was welcomed as it started to spread the onus across the value chain, the upshot has been that the regulatory environment has become every more complex. And all industries involved in this convoluted revenue chain are often confused and somewhat overwhelmed by the pages and pages of regulations and attendant guidance notes. As a result, industry trade body AIME has rolled out a series of training course to help L1 and L2 players get to grips with what they need to do to meet the law and how it impacts on their business. And this month sees the next in this series, offering focused insight into the real nitty gritty of how it all works. Taking place in Central London on 11 June, The Premium Rate (PRS) training course, has built to give knowledge, insight and an Industry-leading understanding of the Premium Rate and Micropayments world. Building on early courses that covered industry structure and value chains, Customer Service requirements, Players, terminology and roles and responsibilities, PRS product overview – fixed and mobile, through to app stores, Technology developments and converged platforms, Promotion of services – legacy and digital and a Regulatory Overview and PhonepayPlus 12th Code of Practice, the latest course will add in Practical steps to mitigate risk for L1 and L2 providers, Emerging App store trends and opportunities and how to run PRS alongside other new, emerging micropayment solutions. “The series of training seminars have been hugely successful and offer both a 101 view of the regulatory environment and a practical guide to what you actually need

to know to make your services work from a regulatory point of view,” explains Jeremy Flynn, from AIME and compliance company Empello. “We have essentially distilled down all the many pages of regulations and guidance notes into 40 key compliance learnings that you need to apply to meet the rules.” According to Flynn, the course is targeted at people who don’t want to have to drill into why regulations are in place, but rather what they need to do and what they need to watch out for to meet the regulations. Interestingly, the rise of this AIME series of courses underlines how the regulatory regime around PRS is not only extremely complex, but also lacking in advice and clarity. Most people in the industry – and all in the industries that operator using telemedia services – don’t want to break the rules: its just sometimes very hard to know how to not do so. The course is based on the ’40 step programme’ developed by Empello and, believes Flynn, if you follow all 40 steps then you won’t get into trouble with the regulator.

WANT TO ATTEND?

Contact AIME now with the code PRS11 to get 30% off the normal delegate prices for this course, offer only available for the 11th June session. To register a place 01252 711 443, but please book now to avoid disappointment as AIME has only a limited number of spaces remaining.


ANALYSIS

Brands

The future of mobile

IS IN YOUR HANDS Although they have been turning their attention to building a compelling mobile proposition, many brands are still playing catch up. Sri Sharma, founder and Managing Director of Net Media Planet explains how brands can maximise the business opportunity that the mobile channel offers the rapid proliferation of mobile smart phone devices is changing how consumers interact with brands, consume information and make purchasing decisions. Given that each device now holds more computing power than was used to put man on the moon, this is hardly surprising. Brands are clearly testing the mobile channel with mobile search advertising up +205% year on year and mobile display advertising up +95% year on year . Yet while brands are experimenting, many are not taking full advantage of mobile marketing opportunities. Indeed, over 40% of the top 100 UK brands still do not yet have a mobile website . The current challenge for many brands is in identifying how best to maximise the opportunity that the mobile channel provides. The answer lies in truly understanding what your mobile consumer needs, and fulfilling that need. Simple yet effective. If we can give consumers what they want we will undoubtedly improve mobile marketing performance, as Sk:n, the UK’s clinic of choice for expert non-surgical treatments, discovered. Sk:n recognised that they needed a new approach to connect more effectively and engage with consumers through mobile. In-house research had highlighted that although 30% of online traffic comes from mobile devices, the conversion rate was extremely low due to the lack of a mobile ‘friendly’ website. The Sk:n team set Net Media Planet with the challenge to improve the conversion rate from mobile Paid Search traffic without a mobile-specific website. This meant that the demographics, needs and behaviours of mobile consumers could be better understood: • The majority of searches were made by women who were carrying out local searches • The conversion rate was higher when consumers were able to speak to a consultant immediately, rather than filling in an online form and waiting for a call back • 85% of mobile searches were from smartphones • There were spikes in traffic during commuting hours. The findings from the Sk:n mobile customer map high-

lighted that importantly, mobile customers want to speak on the phone rather fill in forms. As a result, the bold move to block access to the website from mobile Paid Search traffic was taken. Instead, a ‘click to call’ mobile campaign was launched, which used highly targeted messaging emphasising local services and free advice. This encouraged consumers to call and speak directly with a consultant. As a result of this activity: • The ‘click to call’ conversion rate was 26 times higher than the normal mobile campaign which directed consumers to the website • The quality of enquiries generated increased significantly, with the conversion rate from the mobile campaign 2.2 times higher than across all search channels. As the Sk:n case study illustrates, by understanding the needs of the mobile consumer and servicing those needs effectively, mobile can play a significant role in driving sales for brands. With changing consumer behaviour increasingly blurring the lines between how we shop online and offline, it is the ability of mobile to bridge online and offline activities that makes the channel so significant. With 75% of consumers reporting that they would switch brands if offered real-time mobile promotions while shopping on the high street , we know that mobile influences consumer offline purchasing decisions. Understanding the potential offered by the convergence of mobile and in-store channels. Net Media Planet explored how mobile could be used to drive measureable in-store sales for Cotswold Outdoor, the outdoor clothing retailer. The team tested a new approach with Google Offers, which is an incentive-based advertising aimed at generating more local customers. Through the platform, registered Google Offers subscribers can receive e-offers from businesses in their locality and be invited to redeem those offers in store. This will enable retailers to drive, as well as measure traffic in-store that had originated online. Using the Google Offers product, an existing online Cotswold Outdoor offer (below left) was converted into a


ANALYSIS Brands

Google Offer (below right). The offer was promoted through Paid Search marketing to mobile consumers based in particular locations across the UK, and they were invited to redeem the mobile offer in selected stores. Although the programme is still at an early stage, results show the approach’s viability. By uniting mobile and the physical store through use of new marketing and technology innovation, the consumer experience is improved as are sales for brands. With Near Field Communications (NFC) technology advancement, this proposition will become even more compelling as consumers will be able use mobile devices to seamlessly search online, redeem offers and buy in-store. However, NFC for mobile purchasing is still two years from becoming commonplace. Today, Google Offers acts as an interesting precursor which should be tested with brands that have offline stores. To harness mobile to its full potential, marketers must take the opportunity provided by mobile and bridge the gap between online and offline to deliver truly integrated campaigns. The brands that invest resource to understand their mobile customer needs and test mobile innovations will be the ones that get ahead. The future truly is in your hands!


ANALYSIS

WORLD TELEMEDIA AMSTERDAM

Destination Amsterdam BUilding on the success of the Marbella event last spring, World Telemedia Amsterdam is now gearing up to deliver a wider range of insight, learning and case studies for the industry, that this time will see drill down into not only the vertical markets where telemedia can be put to use, but also in looking inwards and the very workings of the industry in turbulent times. Outlined here is the beginnings of the show programme and of course a call for your input to make it the show that you want it to be. This year we are majoring on the issues facing the telemedia industry – particularly the issues around international markets, traffic and of course fraud, crime and arbitrage. We will of course also be looking at how telemedia technology is being used in everything from chat and dating to retail, gaming and marketing. The event will also feature, running alongside it, the second mAdult Summit, looking at how to capitalize on growing numbers of smartphone users if you work in the adult business – both from a content point of view and a billing and service provision environment. LEARN • DISCUSS • INSPIRE
 Everyone attending the conference at World Telemedia Marbella should leave having learned something new, discussed their key issues with colleagues and been inspired (or inspired themselves) with some of the most innovative uses of technology in the premium communications space. To

SPONSORS

facilitate this, we are creating a conference programme that will offer – in three very different environments around the show – the chance to do just this. LEARN Uncover the issues, technology developments and trends that are shaping the tele- media industry, through panels, presentations and the ancient art of conferencing DISCUSS Join your industry peers to discuss, debate and shape the key issues facing the telemedia industry in a series of roundtable discussions INSPIRE Learn from what works and who is doing what innovatively with technology, servic- es and tools of the telemedia trade through a series of case studies, live demos and more on the show floor. CALL FOR PAPERS What we are looking for: • keynote speakers with good ‘state of the industry’ addresses to give • Leading case studies across the topics laid out in the conference programme showcasing new technology and service use, new revenue streams • Key clients within the print, TV, online, adult, Gaming, Gambling, advertising, marketing and retail industries to copresent how telemedia is revolutionising these and all other vertical markets • Telemedia industry experts in international markets, arbitrage, security, fraud, hijacking and business models • Experts in mobile payments.


ANALYSIS

WOPLD TELEMEDIA AMSTERDAM

DRAFT AGENDA TELEMEDIA BUSINESS OPPORTUNITIES

VERTICAL MARKET OPPORTUNITIES

mADULT SUMMIT

STATE OF THE TELEMEDIA MARKET Telemedia services are changing as consumer demands, devices and the way the international telecoms market changes. We kick off with an overview of where telemedia has been and where it is heading – and what opportunities it offers.

OPPORTUNITIES IN TV, PRINT AND MEDIA • Latest trends in Print, TV, radio and media interaction • Where social media fits in with telemedia monetization • Revenue models • Upselling from freemium models • Exploiting second and third screening • Exploiting online services

BUSTING THE MOBILE MYTHS • Mobile cannibalises online and DVD revenues • Mobile doesn’t have a great business model • Operators take too much of the money • Mobile isn’t the ideal platform for consuming adult • The tablet will save the industry • Its now all about selling to couples • Chat, dating and flirt services are the only things that work on mobile

IPRS • International PRS market opportunities • Assessing pan-national regions such as the Middle East for single number services • Arbitrage and traffic security • International SMS payments

RETAIL & COMMERCE THE CASE FOR MOBILE • Latest trends • Market opportunities for what you do • What retailers are looking for • • Mobile revenue forecasts • Consumer behaviour • Mobile device penetration • The What consumers want operator perspective • Using mobile to cross sell online and other channels • How mobile GAMES & GAMBLING OPPORTUNITIES FOR IPRS IN WHOLE• What games companies, gambling opera- can drive up traffic • New partnerships, SALE MARKETS tors and events companies are looking for providers and value chains • How does wholesale affect your IPRS • The opportunities in payments, ticketing business • How does traffic flows globally and service delivery • Market opportunities REAL MOBILE STRATEGIES & CONTENT • How to avoid hijacking • How wholesales for your existing tech • A breakdown of the value chain for adult markets are changing • What opportunites on mobile • How different business models these changes offer service this value chain • Options for going ADVERTISING AND MARKETING • Latest technology • Consumer interaction mobile – m-sites, apps, affiliates or mix and NEW TECHNOLOGY SCAMS AND FRAUD with ads • Social media • Traditional teleme- match? • Licencing versus direct to con• What the new frauds are • How to oversumer • Local versus global • Macro versus dia in new roles come them • The role of regulation • Where micro • Breakdown financials • Working with technology fraud goes next operators TICKETING & LIVE EVENTS • How to use SMS, PSMS, IPRS and more BEATING THE TRAFFIC HIGHJACKERS MOBILE PAYMENTS to create interactive offerings around live • Traffic flow and where the jackers fit in • Credit card versus mobile billing • Overevents • Where M2M SMS helps ticketing • How hijacking works • How to prevent services • How to create marketing and rev- view of the different mobile payment tools hijacking enue opportunities with mobile telemedia available • Direct operator billing verses third party tools • Economic flow of mobile around live events • Extending the event M2M PSMS OPPORTUNITIES beyond the confines of time – and how to payment and getting a share of profit • • Tracking everything from packages and Commercial relationships through paymake money from it vehicles to your kids • How to monetize ments • How to manage a global mobile tracking applications • How to use SMS to offering • How to service markets that don’t CHAT, DATING & SOCIAL MEDIA generate communication between systems • What are the trends in chat and dating… have credit card • Reaching the unbanked • • How SMS can be used to update social me- • … and what do they mean for traditional VAT and the UK market (PayForIt) dia sites • Using SMS to pay for web access, telemedia players? • Where are the new opaccess to venues and any other ‘content’ • portunities… • … and how can you exploit SMS as a verification mechanism these openings? • What role does telemedia play in social media P2P interaction? • where CALL MANAGEMENT SYSTEMS Chat and dating fits in with other verticals. • What’s on offer call management-wise • How to do it on a budget • Do it yourself BILLING & PAYMENTS or outsource… • … and what are the ROI • Latest trends in billing, payouts and billing implications on doing each? • How do you services across platforms • How consumbuild your own call management system? ers are using payments • Where Bitcoins and other virtual currencies fit in • Mobile Got a better idea of things we can THE VALUE OF NETWORK STATS AND wallets? Really? • Payforit4 verses other paycover? Consider yourself or your DATA ment tools • where telemedia billing fits in company a thought-leader on any of • What data can you gather • How can you with Apple, Amazon and PayPal the above? use it • How do you value it • How it can be Get involved. used for performance marketing • How you PAYFORIT4 SPECIAL WORKSHOP To propose speakers or subjects, can use data to refine your business and Our team of PAYFORIT4 experts set out to contact paulskeldon@me.com attract new customers. show you how the payment tool has developed, where it is set to go next and what it offers all vertical markets.

GET INVOLVED


ANALYSIS

WORLD TELEMEDIA AMSTERDAM

Xxxxxx

each year it seems another person in our industry feels the terrible effects of cancer, but on the 8th February this year, the Telemedia world felt a collective sense of loss at the news that our dear friend Alex Ruff had died aged 45 after an 18 month battle with cancer. Alex had been the life and soul of numerous World Telemedia events (parties) – many of which have of course been held in Amsterdam. So after consultation with his family and in response to the many individuals that have approached us , we’d like to dedicate this year’s show to his memory and launch “The Ruff Riders Appeal” to support The Bobby Moore Fund for Cancer Research UK which raises money for research into bowel cancer. Starting on Tuesday 15th at Telecom 2’s offices in Canary Warf, London, representatives from a wide range of Telemedia companies will embark on an epic 210km bike ride to Amsterdam. There will also be a second meeting point approximately 10km outside of Amsterdam where additional participants can join the group on rented bikes, taking a canal side ride route through Vondel Park and into the city. We have also extended an invitation to Alex’s many friends and

colleague across mainland Europe to coordinate a similar event on his beloved motor cycles. Both groups will complete their journey at the NH Barbizon Palace Hotel at exactly 17:30 on the 16th October – where gathering supporters will cheer them all home in time for “WELCOME DRINKS. World Telemedia 2013 will officially open later that evening. All participants and supporters will be asked to wear CURLY WIGS in homage to Alex’s own unique image – providing us (and Alex’s family) with some unforgettable photos to enjoy for many years to come. FREE DRINKS will only be given to those wearing a curly wig! • BECOME A RIDER 190km or 10km • SPONSOR THE RIDERS • PROMOTE THE APPEAL • WELCOME WITH A WIG. Please note this event is not exclusive to World Telemedia attendees, so please do spread the word throughout your personal and professional networks.

SCHEDULE & ROUTE

TUES 15 OCTOBER
130km London to Harwich 10:00: start from Telecom2 office, 1 Canada square, Canary Wharf London
18:00 - arrive in Harwich (meet at The Mayflower pub for dinner) 21:00: board the ferry (departs 23:00)

WEDS 16 OCTOBER
80km Hook of Holland to Amsterdam 08:00: depart the ferry, Hook of Holland
13:00 - lunch in Noordwijk (Pub tbc)
 16:00: 10km riders meet in Schiphol for canal side ride through Vondel Park and into Amsterdam 17:30: arrive “wearing wigs” for Welcome Drinks


b

ANALYSIS

WOPLD TELEMEDIA AMSTERDAM

SPONSORSHIP & TERMS • Individuals can Donate Here • WT Event Pass – if you are attending please don’t opt out of the €30 addition • Corporate (Rider) - cover your rider costs and get corporate credits • Corporate (Event) – The Welcome Drinks will not be for profit so corporate credits will be available in exchange for contributions COST £250 • Ferry crossing (Captain’s cabin 1st class) • Support vehicle with spares and refreshments • Transport back for your bikes •Free drinks for “wig wearers” at the Welcome Party ADDITIONAL COSTS • 2 lunches and one dinner •“Ruff Riders Team Jersey” with all company and charity logos (£tbc) • Buy your wig here: 
http://www.wonderlandparty.co.uk/ Wig/Afro-Wigs-Unisex/Afro-Wig,-Mega-Huge-112194.aspx (£4.64)

10km COSTS TBC • Costs will cover bike rental and transportation to meeting point • Meet here for canal side ride through Vondel Park and into Amsterdam: 
http://www.restaurantmeerzicht.nl/Nederlands/ Contact-en-route.html TERMS •All riders agree to raise a minimum of £100 worth of sponsorship • Riders may join at any agreed stage of the route if associated costs are covered

SIGN UP BY JULY 12TH Please contact: jarvis@worldtelemedia.co.uk +44 (0)1444 831 909 +44 (0)7711 92 70 92

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as

How hard did your advertising money work today?

Goodman

Go direct.Go

The Response Agency

TELEPHONE: 084 52255555 | WWW.GOODMANASSOCIATES.CO.UK


Telemedia Industry Directory txtNation

Mobile, Billing, Payments, Content, WAP, SMS, MMS, IVR, Phone, Credit Card

Contact: Michael Whelan, E. m.whelan@txtnation.com T.+44 (0) 1752 273491, www.txtnation.com

Preferred Telemedia

Preferred Telemedia is a leading VoIP Solutions, providing Premium numbers, wholesale, callcenters ..

Contact: Tel (+961)-1352691, contact@preferredtelemedia.com www.preferredtelemedia.com

Sundial Telecom

Voice, Fax, Web, WAP & IM integration

Contact: sales@sundialtele.com, +44 1223 238300 www.sundialtele.com

IMI mobile

The leading global specialist provider of cloud-based mobile data infrastructure and mobile technology

Contact: Tom Broadfoot, tom.broadfoot@imimobile.com Mob +44 (0)7500 700 665, www.imimobile.com

Digital Select Ltd

01x/02x, 0800, 0844, 0871, Premium Rate, IVR, SMS & International numbers.

Contact: info@digital-select.com, Tel: 02071939700 www.Digital-Select.com

Ahooly

Premium rate numbers; value added services; weekly payment; IVR; white labelled platform

Contact: Tel: +43 732 24 11 24; Mail: office@ahooly.com; www.ahooly.com

AGMO

Micropayments, Premium SMS, Premium Voice, Web Billing, Credit cards, Poland, Czech Republic, Hungary, Slovakia

Contact: Tel: +420 234 718 555, Email: info@agmo.eu www.agmo.eu

International Premiums

IPRN, IVR, Live Stats, Audiotext, Highest Payment, Daily Payment, Micropayment, Sierra Leone, Guinea, Somalia

Contact: info@interprems.com, Tel +961 1 795016 www.interprems.com

OpenMarket

Mobile Messaging, Direct Billing, IVR, Video Shortcodes, Location-Based & Mobile Crediting Services

Text sales to 88600 in the UK. Tel +44 (0) 20 8987 8855 www.openmarket.com/europe

Cheers International

Best UK Outpayments • Largest Range Price Points 0.5p to £1.53 • IVR • Numbers Accessible from Abroad

Contact: info@cheers.co.uk Tel: 0844 489 6446 www.cheers.co.uk/uknumbers4u

Crazy4Media

Mobile marketing, Mobile advertising, Online advertising, Video streaming, Mobile Databases

Contact: Alex Hind , Tel +34 954 98 08 48, alexhind@froggie-mm.com, www.froggie-mm.com

VoiceBlade

Provider of quality wholesale & retail telephony applications

Contact: Tel 0800 031 9141 or email sales@globaltelecall.com www.globaltelecall.com

Luv2Chat

Britain’s Favourite Live Chat Provider Great Hold Times, Unbeatable Retention

Contact: Richard Smallbone, Tel +44 (0) 1903 884245 Email: richard@luv2chat.com, www.luv2chat.com

Xonadu

White label providers of real text dating & sms chat. Real women = real revenue

Contact: Will Douglas, E. will.douglas@xonadu.com, Tel: 0333 332 0133 www.xonadu.com


Telemedia Industry Directory Masvoz

Spanish leading provider in Voice Services, Micropayments solutions & Sms services

Contact: Carlos Jiménez. 0034 902 500 807, carlos.jimenez@masvoz.es www.masvoz.es

Oxygen8

Global Billing, Communication & Mobile Services from Worldwide Offices

Contact: 0808 206 2062 E-mail: sales.uk@oxygen8.com www.oxygen8.com

tyntec

SMS interaction: 2-Way SMS Dialogue, Outbound & Inbound, Mobile Authentication & Number Lookup.

Contact: Scott Crowley Tel+49-89-202451204, crowley@tyntec.com www.tyntec.com

Paul Markham

Paul Markham content provider for Mobile Phones and iPods.

Contact: www.paulmarkham.com/all-adult-content.php

telequest & Internet Solutions GmbH !!! Domestic Numbers Worldwide !!!

Contact: 00800 102 502 22 or info@telequest.com www.telequest.com

Enarpee

Global Regulatory/Compliance/Service Audit and support services organisation

Contact: Neil or Paul on +44 844 357 3938 or email info@enarpee.com ww.enarpee.com

ImpulsePay

ImpulsePay is the fastest growing provider of Payforit.

Contact: office@impulsepay.com, tel: +44 (0) 20 7099 2450 www.impulsepay.com

Telecoming Connectivity Solutions

LEADING CONNECTIVITY SOLUTIONS SMS Gateway - Routing Manager Direct Operator Billing - ALL IN ONE billing solution

Contact:Robert Nijeboer, rnijeboer@telecoming.com +34 911 137 000 / +34 661 63 65 77, www.telecoming.com

Goodman Associates

Advertising: digital/search/social, TV, Radio, Press & Outdoor – we make it happen!

Contact: +44 (0)20 7067 1190, mail@goodmanassociates.co.uk www.goodmanassociates.co.uk

Viatel

Specialist for Premium Rate Number in Scandinavia Sweden • Norway • Finland

Contact: Phone: +46 850 601 020, Email: sales@viatel.se www.viatel.se

Kwak Telecom Ltd

Leading provider of International payouts numbers & domestic premium rate numbers

Contact: Tel +357 22 022300, sales@kwak-telecom.com www.premium-rates.com

Text121Chat Premium Rate Operators Services

www.text121chat.com

Contact: UK 0871 872 6154, helen@text121chat.com, USA 1-888-711-0121, lorna@text121chat.com

Orca Digital

UK’s leading provider of interactive platforms for mobile, web and TV

Contact: hello@orcadigital.com // 020 8819 5710 www.orcadigital.com

Core Telecom

Non Geographic Numbers, SMS Services, Call Management Solutions, BT Wholesale, Carrier Pre-select, Indirect Access

Contact: t: 0844 504 0000, e:info@coretelecom.co.uk www.coretelecom.co.uk


Telemedia Month Newsletter - JUNE