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ISSUE 19 MARCH 2015

REALITY BITES
Virtual Realitys
second coming

CITY CLICKERS
The cities putting
mobile at the centre
of regeneration

TRADING PLACES
Charting the evolution of
programmatic and what
it means for mobile

DIGITAL DEMOCRACY
How the ballot box
is going mobile

Open For Business

OpenXs Martin Price on how the company is reinventing mobile advertising

PLUS: MOTHERCARE ON MOBILE AWARD WINNERS CORPORATE ACCELERATORS

www.millennialmedia.com

MARCH 2015

CONTENTS

IN THIS ISSUE :

Hello and welcome to the latest print edition


of Mobile Marketing, as the industry decamps
once again to Barcelona for a week of standsurfing, networking and partying.
The excitement this year is likely to be around
wearables, the Internet of Things, driverless
cars and intelligent buildings and cities. The
common theme here is the fact that mobile
tech and connectivity have moved way beyond
mobile phones so the next question is how
brands harness the connected nature of myriad
other devices to engage with consumers.
In setting out their strategy to do so, they
will have to look beyond the obvious. For while
much of the buzz around mobile marketing
concerns advertising, you could argue that
even where the mobile phone is concerned,
it functions best as a pull rather than push
medium, where the choice of how and whether
to engage with a brand is left to the consumer.
Some of the best examples of good mobile
marketing are also the least glitzy the text
message to thank you for your order and
confirm what time it will arrive, or the app that
enables you to pay for your meal in a restaurant
without leaving your seat or bothering the staff.
Neither of these examples involves pushing
unsolicited messages or ads towards the
consumer, and when the medium or channel in
question is a car, a fridge, a thermostat, a watch
or a connected T-shirt, the need to respect the
context of the medium becomes even more key.
So as the industry descends on Barcelona,
Ill be keeping a special eye out for any
solutions that target the Internet of Everything
in a way that recognises the context in which
these devices are used, as well as the fact that
people have been using them for years without
enjoying the benefit of (or having to put up
with) advertising on them.
Enjoy the show, and enjoy the issue!
David Murphy, editorial director

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well tell you what you need to do.

brand
STRATEGY

NEWS REVIEW

8 Network Effect

Investigating the push towards programmatic

THE NEW
TELEVISION

12 FULL SPEED

AHEAD

We chart the incredible


growth of mobile video
content

We look at the
growing popularity of
corporate accelerator
programmes

DIGITAL
DEMOCRACY

How countries around


the world are taking to
mobile voting

17 THE DISRUPTORS
The hottest startups put
under Kirsty Styles spotlight

REDEFINING
PREMIUM
Teads CMO Rebecca Mahony
on the benefits of outstream
video ad formats

REALITY BITES
The latest news from the
worlds of augmented and
virtual reality

THE OPENX
APPROACH TO
PROGRAMMATIC
ADVERTISING

CELEBRATING
EXCELLENCE
2014 Mobile Marketing
Award winners revealed

30 SIM CitY
How mobile tech
is driving Smart
City projects
around the UK

THE SALES
MACHINE
How Simartis Bubble
platform works

LOCATION
STATIONS
xAds Theo Theodorou
on the power of
location data

PLATFORM
PLAY

49

CANDIDATE
IS KING

In conversation
So says Digital
with Phunware VP,
Gurus Matt Hawkes
advertising evangelist,
Jon Hook

50

BUCKLEY
ON...

Location lessons
learned from the
ZagMe launch 15
years ago

Editorial director: David Murphy david.murphy@mobilemarketingmagazine.com +44 (0)7976 927 062


Commercial director: John Owen john.owen@wearedotmedia.com +44 (0)7769 674 824
Business development manager: Richard Partridge richard.partridge@wearedotmedia.com
Event sales director: Shelley Dowsett shelley.dowsett@wearedotmedia.com
Production editor: Andy Penfold
Designer: Alistair Gillan aQ2 Ltd
Online editor: Alex Spencer alex.spencer@mobilemarketingmagazine.com
Senior reporter: Kirsty Styles kirsty.styles@mobilemarketingmagazine.com
Reporter: Tim Maytom tim.maytom@mobilemarketingmagazine.com
Event manager: Hannah Wallace hannah.wallace@wearedotmedia.com
Contributors: Russell Buckley, Kirsty Styles
Print: Advent Print Group info@advent-colour.co.uk
For a paid subscription please email: subscriptions@mobilemarketingmagazine.com
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Mobile Marketing is published by Dot Media Ltd., 114-116 Curtain Road, London EC2A 3AH
www.mobilemarketingmagazine.com

@mmmagtweets

We create
amazing ads.

Concept | Design | Build


bluequest.co.uk

Bluequest_fullpage_210x280_MWC_March2015-v5.indd 1

. +44 (0)20 7812 0611 . team@bluequest.co.uk


13/02/2015 12:27:26

MARCH 2015

COMMENT

brand STRATEGY
BY CHRIS BERTIN, GROUP MOBILE COMMERCE MANAGER AT MOTHERCARE
othercares mobile journey started
in May 2011, when we launched
dedicated mobile sites built on the
Demandware mobile platform. But we really
ramped things up after that we were set a
three-month target to build our first app.
It was tempting at first to do something
quick and dirty that we could look to
improve once the initial pressure of hitting
the deadline was over, but we soon
decided to go in the opposite direction
and try to achieve something special
right off the bat. People come to
Mothercare when theyre about to
begin one of the most life-changing
experiences they will ever go through.
We felt we had a duty to reflect the
Mothercare ethos of offering advice,
guidance and help instead of just an
easy way to shop on your phone.
We believed in a content-driven strategy
and wanted to give customers reasons to
come back to the app every day. We wanted
the app to be useful in order to achieve
downloads, but more importantly we
wanted to remain on our customers
phones for the long term.
We were fortunate in finding a good
partner, NN4M, to work with and that
some of the content we used to populate
the app already existed within the business.
We therefore set out to create a dedicated
features section in the app that included
a week-by-week Pregnancy Guide,
Mothercare TV for advice and help videos,
a Baby Name Generator, Contraction and
Kick Counters, and a collection of free
lullabies and nursery rhymes.
The app seemed the right place to
bring all these great features together in a
convenient location for mums, dads and
mums-to-be.

Rave reviews
When the app launched, initially on iPhone
only, the reaction from customers exceeded
our expectations. We made it to the top spot
in the App Stores Lifestyle chart and 24th in
the overall chart, and we gained rave reviews
and feedback from our customers. The only
thing we hadnt really anticipated was a
slight backlash from our Android-owning

customers, who wanted to know when


we were going to develop an app for them.
The answer to that was not for another
nine months. There were a couple of
reasons for this. The first was that we started
again from scratch we didnt want to just
port over the iPhone experience to Android.
The second is that Android is a much
more fragmented market. Differing screen
sizes, OS versions and processor speeds
can create device-specific bugs that can be
difficult to fix without creating further issues
on other devices. We had a dozen or so
Android devices in-house and outsourced
another dozen, but we still found issues
relating to specific devices, so the testing
and bug-fixing phases took much longer
than anticipated.
In hindsight, it was probably a mistake
to backdate the app to support Android OS
version 2.3, because although back then it

made up around 30 per cent of the Android


customer base, we discovered that they
tended to be the type of customer who
didnt shop with us on mobile. Therefore
a lot of the time we spent on bug fixing on
older devices could have been avoided.

Digitally-led business
Were fortunate that the success of the
apps helped raise the profile of
mobile within the business. Since
then, weve seen mobile grow to
become a huge part of our online
proposition. During our peak Q3, 75
per cent of our online traffic came
from mobile devices, (50 per cent
viewed our mobile site, 18 per cent
viewed our full site via tablet and 7
per cent came from our apps). App
conversion is also, on average, more than
double that of our mobile site, and our
app is downloaded every two minutes.
This proves what we have long believed
that our customer base is tech-savvy and
predisposed to using mobile to browse
and shop. As Im sure every parent knows,
bringing up children takes over your life,
so mums and dads have less and less time
to sit down at a PC to shop. Five minutes
here or there on the phone can be the only
opportunity they have to engage with us.
Weve enjoyed great success with our
apps, but we know we cant stand still.
We are thinking about a beacon trial later
this year to see how we can use mobile
in-store, and looking further ahead we also
see great potential in wearables, given the
importance of health monitoring for mums,
mums-to-be and their little ones. We also
have the luxury of a little longer than
three months to fully think through and
implement our mCommerce strategy. MM

www.mobilemarketingmagazine.com

NEWS REVIEW

MARCH 2015

NEWS

REVIEW
Alex Spencer casts an eye over some of the biggest stories in
the mobile space since our last issue

Microsoft Unveils Windows


10 and HoloLens

iven the widespread dislike that


Windows 8 inspired, it seemed
unlikely that anything would be
able to overshadow the announcement
of its successor at Microsofts Windows
10 event on 21 January. But along with
an extensive overhaul of the core OS,
which is being offered as a free upgrade
to existing customers, Microsoft revealed
a more unexpected addition to its line:
the HoloLens.
A wireless mixed reality headset that
can project three-dimensional holograms
onto the users vision, the HoloLens
sounds more like a gadget from Minority
Report than a real consumer product.
There are reasons for that the device is
still a prototype, and current use cases
seem more focused on the enterprise
than the home. You can find out more

about the HoloLens, and the competition


it faces, on page 36.
The headset is just one part of
Microsofts cross-platform ambitions.
As well as desktop, Windows 10 promises
to run across smartphones, smart TVs,
connected whiteboards, the Xbox One,
and potentially even more devices in
the future. Stay tuned as our device
family expands, said Microsoft VP
Terry Myerson at the event.
A year ago, this boast would have
seemed dubious at best, but Microsofts
Q4 financial results showed that its
Surface tablets and Lumia smartphones
are finding a new lease of life. If Windows
10 can deliver on the promises made
by its predecessor, Microsoft may also
have the software it needs to drive that
hardware business.

www.mobilemarketingmagazine.com

Google halts Glass


development
After years of debate over whether Glass was
the next big thing or just an accessory for
Glassholes, Google has closed its Explorer
program, which sold the smart glasses to
developers and other early adopters for
$1,500 (or 1,000 in the UK), and stopped
production of the current model.
Google later admitted the decision was
motivated by the projects failure to meet
internal targets, but insists that it is still
committed to bringing the smart glasses to
market. The project is being moved from the
companys experimental Google X division
and put under the watchful eye of Tony
Fadell, CEO of smart home company and
recent Google acquisition Nest, to develop
the next iteration of the product.
This could mean a bright new dawn
for Glass, but for now the move has left
many of the developers who bought the
prototype device complaining that their
investment has been wasted. At least one
brand was likely cursing the timing of the
announcement just days earlier, UK
supermarket Tesco had unveiled a
Glassware shopping app for customers.

MARCH 2015

British Telecom swoops to


acquire mobile network EE
BT is stepping back into the mobile
business with its 12.5bn acquisition of
EE. After announcing in December that
it was considering buying either EE or O2,
BT signed on the dotted line to acquire
EE from Orange and Deutsche Telekom
in early February.
When the deal is finalised in March
2016, BT will become the UKs single largest
mobile network, with 24.5m customers,
7.7m of whom are on 4G. As well as the
estimated 1.6bn the acquisition will add
to BTs annual sales, the telco is keen to

Snapchat drills down on


monetisation strategy
After a busy 2014, which saw it land
over 100m monthly users and turn down
a $3bn-plus acquisition offer from
Facebook, Snapchat entered the New
Year with a focus on actually making
money from its messaging app.
This got off to a rocky start, as it
was revealed that Snapchat was asking
advertisers for a minimum commitment
of $750,000 daily spend, for an offering that
didnt include any reporting capabilities.
This didnt stop big brands like McDonalds,
NBC Universal and Macys getting on
board, however, and early results have
been overwhelmingly positive.
The options available to Snapchat
advertisers grew further with the January
launch of Discover, a feature that brought
daily editorial content and ads from
the likes of ESPN, CNN and Cosmopolitan
into the app. Shortly afterwards, Madonna
became the first pop star to debut a music
video through the channel rather than
YouTube or TV.

NEWS REVIEW

transform itself into a quad play provider


by adding a mobile network to its existing
offering of fixed telephony, broadband
and pay TV.
Before opting for EE, BT was competing
with a number of other parties to acquire O2,
the operator business it actually co-founded
back in 1985 as Cellnet. Sky and TalkTalk
have both reportedly been in acquisition
talks with O2, and Hutchison Whampoa
made a confirmed bid of 10.25bn for the
business in January. Already the owner of
UK operator Three, if Hutchisons O2 bid is
successful then BTs reign as the countrys
largest operator will be short-lived.

GAFA Quarterly results: Q4, 2014

GAFA revenues
Mobile accounted for 69 per cent of
Facebooks total ad revenues in Q4
2014, making $2.48bn for the company.
By comparison, a year earlier mobile
ads brought in revenues of $1.49bn, or
53 per cent of the total.

Apple $74.6bn Amazon $29.33bn Google $18.1bn Facebook $3.85bn

GAFA profits
Apple sold a record 74m iPhones in
Q4 equivalent to 34,000 iPhones
every hour for three whole months
up 46 per cent year-on-year, thanks
to the popularity of the iPhone 6 and
iPhone 6 Plus. Over the same period,
however, iPad sales dropped 18 per
cent, to 21.4m units.

Apple $18bn Google $4.8bn Amazon $214m Facebook $701m

@mmmagtweets

ANALYSIS

MARCH 2015

Network Effect
David Murphy looks at what the rise and
rise of programmatic means for the mobile
advertising ecosystem

ne word dominated the mobile


advertising landscape in 2014:
programmatic. And 2015 looks
like being no different, as almost everyone
in the mobile advertising business seeks to
show off their programmatic credentials
in a bid to secure their future. But how
big a deal is programmatic in mobile, and
what impact is it having on the way mobile
advertising campaigns are planned, booked
and executed?
James Chandler, global mobile director
at media agency Mindshare, suspects there
may be some hype at play: You do hear
a lot of people in the programmatic game
beating the drum and saying there is a lot of
it about, and the fact that Apple, the most
closed company in the world is now working
with Rubicon on programmatic, is obviously
significant, he says. But then you hear the
other side of the coin where its not even
reached maturity on desktop yet and here
we are trying to figure out mobile. Maybe we
should look at the mistakes that have been
made using online as a proxy for mobile and
not try to run before we can walk.

Alex Kozloff, who heads up the IABs


mobile initiatives, says there is a lot of
interest in the subject from advertisers and
agencies. As part of our planning for 2015
we asked all our members where we should
focus our efforts and programmatic came
through loud and clear as one of the key
things they are interested in, she says.
Some of the stats kicking around do
seem to justify the interest and excitement,
and the need to stake your claim as a
programmatic expert. At an event staged by
SSP (Supply Side Platform) PubMatic late
last year, IDC analyst Karsten Weide revealed
that global programmatic spend, including
all mobile and online display and video
advertising, accounted for $4.8bn (3.1bn) in
2013, and was set to almost double to $8.5bn
in 2014, rising again to $14.7bn this year, to
$38.1bn next, and $55.3bn by 2017. By which
point, if that figure was achieved, it would
mean that 59 per cent of total global display
ad spend is being bought programmatically.
Anything that can be automated will be
automated, the analyst noted.
Another study, conducted by the IAB

www.mobilemarketingmagazine.com

in partnership with MTM last year, found


that in 2013, 28 per cent of digital display
spend, and 37 per cent of mobile spend,
was traded programmatically. Most
importantly, the study forecast that 60
per cent of mobile display inventory
would be programmatic in 2014.

The Google effect


Some are skeptical about those figures,
while others accept them, but believe that
two companies are skewing the picture
to a disproportionate degree. The spend
in programmatic on mobile outside of
Facebook and Google is very small, says
Mark Slade, managing director EMEA at
Opera Mediaworks. On the other hand, Jon
Buss, UK managing director at Criteo says:
Programmatic spend on mobile is growing
massively with the publishers we work with.
We are plugged into a reasonable number
of platforms to buy mobile inventory in
this automated way, and if it didnt work, it
wouldnt be growing so fast.
And at PubMatic, Dan Wilson, senior
director, emerging media, EMEA and APAC,

MARCH 2015

per cent margin through arbitrage (buying


inventory in bulk at one price and selling it
on to clients at a profit) and agencies didnt
like that because they were making much
slimmer margins. So part of this is about the
agencies increasing their margins by taking
the ad network out of the media plan.
Another key driver is increased efficiency.
It is more efficient because youre making
much more use of technology, says
Gavin Stirrat, COO at StrikeAd, one of the
earliest mobile DSPs in the market. This
allows things to happen at greater scale.
When youre buying from a DSP, the DSP
is plugged into multiple exchanges and
DMPs (Data Management Platforms) so
you can achieve very refined targeting at
scale. Programmatic really took off online
off the back of retargeting, because to
work well, retargeting needs vast scale,
and programmatic delivers that.

ANALYSIS

PMPs are still niche, says Craig Palli, chief


strategy officer at Fiksu. In mobile, they
started to creep in about a year ago and
there is advertiser interest, but we need
to build publisher interest in putting the
inventory in there. We need to build the
infrastructure to feed the impressions in.
Rob Kramer, GM, mobile at SSP, OpenX,
agrees, but says this will change as the type
of brands that advertise on mobile changes.
I dont know the ratio today, but
RTB dominates, he says. You have to
remember, most early RTB transactions
were around performance advertising,
which did not need a PMP component. But
now that you have brand display dollars
moving into programmatic, it makes
sense, and we are seeing brands who want
exclusive access to certain types of premium
inventory and publishers.

Programmatic defined

says: The world is far bigger than Google.


If you look at the growth in mobile supply, a
lot of it has been polarised at two ends. One
is the Flashlab games and freemium games
we all use but no one clicks on the ads on
purpose, then at the other end where we
play, you have the premium inventory. A lot
of publishers were slow to monetise mobile
inventory; the shift to mobile took a lot of
them by surprise and they struggled to evolve
in terms of their monetisation strategies. But
now they have rolled out responsive design
and more engaging ad formats and are
starting to see success. Its down to clients,
planners and buyers to look at opportunities
outside of Google and Facebook.
So if you accept that the programmatic
revolution is happening, whats driving it?
Some say (though they say it off the record),
that part of the rationale is about agencies
trying to increase the margin they make by
building divisions that are not dissimilar to
ad networks. One source told us: If you go
back to the early days of mobile media where
a large proportion of the revenue went to
the ad networks, they were making 40-50

At this point, a definition of programmatic


might be in order. In its early days, it was
synonymous with real-time bidding (RTB),
where advertisers bid for the right to show
their ad to a given user at a given time in a
real-time auction, in much the same way as
advertisers bid to come at the top of the paid
search results on Google. But while auctions
are still very much part of the programmatic
scene, another version of programmatic,
known as a private marketplace (PMP),
is on the rise.
In a PMP, the advertiser knows where
their ad will appear and pays a pre-agreed
price for it (usually higher than in an RTB
auction) in a forward market, (as opposed
to a real-time auction) but the inventory is
still bought in a programmatic, automated
manner. For media buyers and their
advertiser clients, it gives them planning
certainty; they can put a certain type of
inventory in place, with impression volume
guaranteed, at the right time to support
a launch, but because the workflow is
integrated and automated, its faster, less
prone to human error and so easier and
more cost effective for both the buyer and
the publisher.
For an advertiser, PMPs are all about
securing the first look; its like being first
into Waitrose on a Saturday morning, says
PubMatics Wilson.
But the volume of PMP inventory is still
very small compared to RTB programmatic.

WE STILL WANT
TO BUILD THE STUFF
THAT WINS AWARDS
AND YOU DONT
NECESSARILY GET
THAT BY FOUR OR
FIVE PCS TALKING
TO EACH OTHER
JAMES CHANDLER, MINDSHARE

@mmmagtweets

ANALYSIS

MARCH 2015

On mobile, however, even that term,


premium inventory, needs defining,
because as StrikeAds Stirrat points out,
it bears little resemblance to premium
inventory on the web.
Private marketplaces are in a slightly
different place on mobile than desktop,
he says. On desktop it is the publisher and
the title you associate the brand with, such
as a premium credit card associating itself
with the FT, for example. The challenge
in mobile is that it forces us to redefine
premium, because premium titles on
mobile are not the same as desktop.
Sessions are more snacky and the brand
names serving them, often games and
information services, are not the ones
large brands would normally associate
themselves with. Brands have to get used
to the fact they have to get comfortable
with a new wave of publisher brands.

Key acquisitions
So what does all this mean for the traditional
mobile ad networks? Some have responded
by partnering with or buying programmatic
companies. InMobi has tied up with The
Rubicon Project, while Millennial Media
bought Jumptap towards the end of 2013 to
get into the DSP business, then also acquired
Nexage more recently to tick the SSP and
exchange boxes.

Games like Angry Birds are a prime source of programmatic inventory on mobile

dont care if its mobile or desktop; if its


programmatic or a managed service.
What they care about is the consumer and
the message to the consumer whether
its the right message reaching the right
consumer at the right time. Programmatic
can help a lot with that, which is why
it has grown so much, but it is not the
only solution and sometimes it is not the
solution. This is why we provide the full
suite of solutions, because advertisers
need that flexibility.
Opera Mediaworks Slade believes that in

has defined. The ones that have no tech


integration or client integration via an SDK
will go to the wall.
While its perhaps no surprise to hear
an ad network defending the role of the ad
network, others also feel they have a future.

Mobile monetisation
I still think the ad networks will have a large
role to play in mobile monetisation going
forward, says OpenXs Kramer. According
to Flurry, 86 per cent of consumers
time in mobile is spent in-app. Mobile

FOR AN ADVERTISER, PMPS ARE ALL


ABOUT SECURING THE FIRST LOOK;
ITS LIKE BEING FIRST INTO WAITROSE
ON A SATURDAY MORNING
DAN WILSON, PUBMATIC
If you take Jumptap and Nexage and
couple that with the existing Millennial
offering, its a comprehensive solution, says
Todd Tran, who led Nexage in Europe and
joined Millennial as part of the acquisition.
If you think about buyers and agency
groups, they can look to Millennial and buy
via an IO [insertion order], or programatically,
use the DSP or just buy data, we are unique in
the market to have all of that under one roof.
If you listen to what advertisers and
agencies are telling us, they say they

10

order to survive in the programmatic age, ad


networks need to add value.
The ones that survive will be the ones
that have some technology to integrate
into the publishers in a meaningful way
to gain data on the customer, to define
what type of audience they are, he says. It
could be picking up their location lookups
and mapping against points of interest
to know they regularly go to the gym or
shopping centres so that they go into
whatever audience segment the ad network

www.mobilemarketingmagazine.com

monetisation in-app comes down to having


your SDK footprint in those apps, and the
first people to do that were the mobile ad
networks, so they have tremendous power
when it comes to the monetisation of apps.
Whereas the pure exchanges ourselves,
PubMatic, Rubicon we still have some
work to do. Because the ad networks were
there first, they will remain relevant for the
foreseeable future.
This point is echoed by Tim Finn, cofounder and CTO at data provider, Statiq.

MARCH 2015

Speak to InMobi or Millennial and they


know they have to get into programmatic,
and have done so, but lets not forget that
they are sitting on the majority of the spend
coming out of agencies right now, he says.
The programmatic guys are on the right
path, but they look enviously at the spend
going into the ad networks.

Location play
Finns company is one of a new breed
looking to satisfy the insatiable demand
for data, in particular location data, from
companies operating in the programmatic

out as a programmatic specialist back then,


location has always been at the heart of
what it does. Like xAd, it can use location
data to target in real-time, or to build a
picture of the users location history for
later use. Blismedias managing director
Paul Thompson estimates around 75 per
cent of the companys campaigns are realtime, the other 25 per cent based on the
users location history.
It doesnt always make sense to send
someone a message just because they
are in proximity to something, says
Thompson. If you are in the British

THE SPEND IN PROGRAMMATIC ON


MOBILE OUTSIDE OF FACEBOOK AND
GOOGLE IS VERY SMALL
MARK SLADE, OPERA MEDIAWORKS
space. Formed by a bunch of ex-StrikeAd
execs, Finn says the company was founded
in response to the lack of clear, accurate
data in the ecosystem. It uses location to
pinpoint the current whereabouts of a
mobile user so that advertisers can target
them with relevant messages; but also to
build a picture of their location history and
create anonymised audience data that can
be used to create segments that advertisers
can target at some point in the future.
The location data space is hotting up.
Factual is making waves in the US, while
xAd is another relatively new US firm
looking to establish itself in the space.
It tracks the location of 160m unique
users via integration with over 30,000
apps, reaching 300m unique devices each
month, with 300bn available monthly ad
impressions and close to 1m advertisers on
its platform.
Desktop targeting strategies dont
work in mobile because its a cookieless
environment, says xAds EMEA GM, Theo
Theodorou. But location is a real-world
cookie, and its critical for online-to-offline
targeting and building audiences based on
their visitation history, he says.
BlisMedia is another company making
a major location play. Its been around
longer than most in the space, since 2004
in fact, and while it obviously didnt start

Airways lounge in T5 right now, we could


serve you an ad on the mobile web or
in-app. There would be no point serving
an ad for an airline because youve already
booked that flight, but at some point later,
given your location history, that can inform
the type of ad we would serve. The decision
on which ad to serve is different depending
on whether we are looking at your history
or the here-and-now, based on analysing
40bn ad requests a day, all in real-time.

What next?
So while the battle for location data
supremacy rages, whats next for
programmatic? The consensus seems
to be that the shift from RTB to private
marketplaces will continue this year. 2015
will be a big year for PMPs, says Millennial
Medias Tran. Its an interesting evolution,
where we have gone from the managed
world to RTB and then halfway back to the
world of PMPs and Programmatic Direct,
so its essential that the two worlds start
merging, that we dont have two or more
solutions. We need just one solution with
multiple different ways you can buy to
allow the advertiser to do what they want.
Jay Fowdar, chief product officer at
Byyd, which rebranded from Adfonic when
it pivoted from an ad network to a DSP a
year ago, also expects to see growth in the

ANALYSIS

PMP space in 2015. PMPs are still very


nascent in mobile, he says. We thought
it would be huge last year, but it was not
as big as expected. But it will happen
advertisers want to do it.
But perhaps the truth about
programmatic is not that its going to take
over the mobile and wider advertising
world (though some believe it will), but
that it will settle down and find its place in
the ecosystem, alongside more traditional
ways of working.
Programmatic is a huge buzzword
across the industry for 2015, and it is
absolutely a big thing in mobile, says the
IABs Kozloff. But it will never be the only
way. There are so many things you can
do with mobile, and the human element
is still really important. There are also
more creative formats that might not fit a
programmatic sell. Im never surprised to
see new, different ways of getting ads onto
mobile, and programmatic is massively
important, but not to the exclusion of
everything else.
Mindshares Chandler, echoing the
thoughts of his boss Sir Martin Sorrell
(who has gone on record to say that brand
communications in the future needs to be
a combination of the maths men and mad
men) also believes there is more to mobile
advertising life than programmatic.
He says: The people we hire used to
be brand-driven media types with degrees
from Bournemouth, and that has changed.
We now have more now econometricians,
statisticians and, mathematicians; they
look more like business analysts. But I
dont think we will end up in a world where
everything is traded programmatically.
We still want to build the stuff that wins
awards and you dont necessarily get that
by four or five PCs talking to each other.
Advertising is still about relationships; if
programmatic enables us to do things in
more efficient ways, then that should free
us up to do the more creative, strategic
thinking. No one gets in to this to stare
at spreadsheets all day we are in it to
do the exciting stuff.
A fair point, but its worth remembering
perhaps, that for the econometricians,
statisticians and mathematicians out
there, the ones rapidly infiltrating the
world of advertising, the words exciting
stuff and spreadsheets are far from
mutually incompatible. MM

@mmmagtweets

11

ANALYSIS

MARCH 2015

Full Speed Ahead


Kirsty Styles looks at the rise and
rise of accelerator programmes

ince the launch of Y Combinator


back in 2005, the business
accelerator space has truly come to
life, with 2013 marking a record year for new
programmes opening their doors.Y Combs
first cohort included one of the internet ages
most interesting success stories online
news platformReddit as well as mobile
location startup Loopt, which was bought
for $43.4m (28.6m) in 2012. The worlds first
tech accelerator also gave early backing to
Airbnb and Dropbox, now both multi-billion
dollar companies.
SEE-DB, created to profile each new
and hopeful innovation hub, lists 227
programmes worldwide in 2015, which have
supported 4,274 business, celebrated 245
exits totalling $3.4m, and seen $7.2m raised.
And they admit thats probably not even the
half of it.

12

Crowded space
Competition for certain accelerators can be
high,Telefnicas Wayrahas received more
than 29,000 pitches worldwide and has an
admission rate of just 1.6 per cent,but in
an increasingly crowded accelerator space,
most new programmes are now going
down the specialist route.Female Propeller
for High Fliersin Dublin only accepts
female-led startups, while theEyeFocus
Acceleratorin Berlin is dedicated simply to
innovation in eye care.
Many UK brands are now flocking to
this kind of innovation as an alternative to
in-house R&D or M&A activity. Companies
are using the accelerator model to help
with technological innovation, or to build
an ecosystem around a specific product,
like the Nike+ Fuel Lab. Some have opted to
collaborate with existing programmes, such

www.mobilemarketingmagazine.com

Community spirit is part of the appeal of accelerator culture

MARCH 2015

as in Disneys team-up with TechStars. Brands


like John Lewis, Barclays andTelefnica have
also all put their nameabove the door on
their relevant accelerators.
Already this year, a new accelerator
launched in January in London by delivery
firmDPD, in partnership with tech fund L
Marks, to help it innovate around logistics
and fulfilment.As the cost of doing
business in the digital age drops, starting
an accelerator and supporting startups
looks like an increasingly resource-efficient
strategy. And if youve attracted and
interviewed the right teams, you may have
a new supplier or even a new business unit
in your midst.

Unanswered questions
But, there are risks, and unanswered
questions around the model. How do you

distinguish the unicorns from the donkeys?


How do you make strategic decisions about
your direction given the little data there is
on offer? Are accelerators too focused on
companies that offer the clearest, short-term
hope of success, meaning more complex
areas are left untouched? And how do you
actually turn a profit?
Y Combinator took five years to start
making money perhaps thats why Tesco
set up its Rainmaking Loft as a co-working
and events space, rather than a traditional
accelerator programme.
What differentiates your accelerator is
becoming increasingly important, whether
thats how the project is funded, whether
you have a specialism, or by mission are
you for good or for profit? The quality of
learning resources or mentors, along with
time and equity commitments, are also key

ANALYSIS

Tescos Rainmaking Loft is one approach to encouraging


entrepreneurship and the development of ideas

considerations for startups that are looking


to get involved. And accelerator owners are
still ultimately trying to understand what
success looks like for them, and how they
measure it.

@mmmagtweets

13

ANALYSIS

MARCH 2015

Acceleration stations

Heres a lowdown of some of the startup factories and what they do


Unilever Foundry
Founded: May 2014
Specialism:B2B marketing programme
working with Unilever marketers through
a partnership with Collider accelerator in
the UK, plus more worldwide
Length of programme: Three months
Funding structure: No equity taken
Unilever pays 50 per cent of pilot project
cost, with the remaining 50 per cent paid
on delivery. Following this, the project may
be taken on for investment by Unilever
Ventures
Projects: Unilever creates briefs for
its existing brands across different
geographies, asking relevant companies to
apply to solve a specific business problem.
As of July 2014,five Collider startups had
signed revenue-generating deals with
Unilever brands.

Specialism: Looking at areas


includingcloud services, financial
services, M2M, digital security, e-health,
mobile applications, social networks and
e-learning
Length of programme: Nine months
Funding structure: up to $50,000 for 10
per cent equity, with $23m already invested
Projects: Wayra has accelerated nearly 450
companies across 20 different industries,
which have gone on to raise more than
$70m from other sources. 80 of the
programmes alumni are now working
withTelefnicain selling, pilots or trials.

Founded: March 2014


Specialism: Retail technology accelerator
with dedicated space within the Level39
fintech hub at Canary Wharf
Length of programme: 15 weeks
Funding structure:12,500 investment
for 4 per cent equity.The winner of the
JLAB programme receives up to 100,000

John Vary, John Lewis


Samsung Accelerator

TelefnicaWayra
Founded: 2011, March 2012 in the UK,
totalling 14 established across Latin
America and Europe

14

Founded: California in June 2013, now


operating across seven countries including
China, India and Israel
Specialism: From coding to gaming,
advertising to online dating, Microsoft
is simply looking for great ideas and
skilled teams
Length of programme: Three months
Funding structure: London applicants
receive up to 75,000 prior to entering
the programme. Microsoft takes no equity
and offers free workspace, mentoring
and access to its business ecosystem

WE HAVE BEEN AHEAD OF THE GAME


IN OMNICHANNEL RETAILING AND OUR
JLAB INCUBATOR WAS DESIGNED TO HELP
NURTURE THE NEXT GENERATION OF
TECHNOLOGY STARTUPS, WHILE HELPING
ENSURE WE REMAIN ON THE CUTTING-EDGE
OF RETAIL CHANGE

John Lewis JLAB

investment and a chance to supply


John Lewis
Projects: Five projects made it into JLAB
in 2014, giving them access to John Lewis
retail infrastructure, plus internal and
external mentors. Location-based tech
provider Localz, which uses iBeacons to
send relevant information to smartphone
users while shopping, won the first JLAB.

Microsoft Ventures UK

Founded: July 2013 in California,


September 2013 in New York
Specialism: Looking for products and
services that can enrich the lives of
consumers. The startups do not have
to make their products exclusively
for Samsung
Length of programme: There is no
fixed duration
Funding structure: There is no fixed
amount. We understand each product
has different timelines and resource
requirements, and we work closely with
our entrepreneurs to determine what they
need to succeed, Samsung says
Projects: Samsung does not have an
application process or deadline, instead
offering experienced entrepreneurs the
opportunity to approach them with their
idea. The programme has kicked off in the
US, where all of its current projects are in
stealth mode, with a goal of getting them to
market within one-to-three years.

www.mobilemarketingmagazine.com

Projects:Globally, 80 per cent of the


240 graduates across seven accelerators
have raised an average of $1.9m in
funding within one year of finishing
the programme. London-based alumni
Caribu got a mention during Apples
recent keynote event.

Nike+ Fuel Lab


Founded: April 2014
Specialism: Builds on the work done
through the 2013 Nike+ Accelerator
program, developing digital services for
the 28m-plus people that use FuelBand,
plus expanding its audience by partnering
with companies likeMyFitnessPal
Length of programme: 12 weeks
Funding structure: $50,000 per team
Projects:Although the company
announced after 18 months it would
stop selling its FuelBand fitness hardware,
it continues to work on the software
ecosystem. Its not clear where the
project has got to.

MARCH 2015

View from the inside

John Vary, IT innovation manager at John


Lewis, explains the thinking behind JLAB

As part of our 150th anniversary


celebrations last year, we
launched our first ever
technology incubator, JLAB,
saysJohn Vary, IT innovation
manager at John Lewis. We
have been ahead of the game in
omnichannel retailing and our
JLAB incubator was designed to
help nurture the next generation
of technology startups, while
helping ensure we remain on the
cutting-edge of retail change.
We had five finalists but
the overall winner was Localz, a

startup business specialising in


micro-location technology. Their
technology gives customers the
opportunity to take advantage of
some enhanced services using
their smartphone based on their
precise location.
For example, it could
automatically offer to trigger a
customers Click & Collect order
to be picked as they enter the
shop. Were going to start trialing
this solution very soon before
rolling it out more widely if its
successful.

ANALYSIS

Its the taking part that counts


Life within Wayra, according to Daniel Reina,
CEO and co-founder of Tappx
We chose Wayra because
they are a global accelerator
with offices around the world
with an excellent reputation,
saysDaniel Reina, CEO and
co-founder of app discovery
startup Tappx. They offer
investment support, offices,
metrics, mentors, legal
and financial support,
and internships. You also
benefit from a close working
partnership with Telefnica, and
a wide network of advisors. It
was a strategic decision for us
mobile app discovery is a global
market and we needed a
global partner.

You have to be able to


juggle multiple things at
the same time, pitch at a
moments notice and do a lot
of networking. Being part of
an accelerator means you have
more work and responsibilities
to meet the expectations of
those supporting you. In return,
you have a wider network,
which is an invaluable resource
for a company that needs
to grow rapidly, but you are
always busy and need to work
hard.We also learn from the
other companies participating
in the programme, its its own
intensive MBA.

What else is out there?


The corporate accelerator isnt right for everyone here are some alternative approaches
The Pop Up Agency
We solve briefs in 48 hours, says
Zlatko Corluka, co-founder ofThe
Pop Up Agency, which came out
of work done by the team at career
acceleratorHyper Island.
The client is not expecting a fully
functioning app or a website after this

Good old fashioned Post-It notes at The Pop Up Agency

time, but something that you can start


implementing or producing the
next day.Innovation is almost always
the factor and they often come to us

to try new ways of working. We could


be called in to accelerate a project, to
think of new markets for an existing
product, to create or launch a new
product, and much more. Before
settling down in London, we did a
world tour where we worked with
everyone from Facebook to CocaCola, and some startups in Berlin.
From this we got great knowledge of
how different markets and industries
around the world work, something
that clients really appreciate.
Often our clients already have
one or more agencies working on
their communications, but theyre
not always happy with what they get.
From what we have seen and heard,
the value of the end product doesnt
match the time and money spent on it.

EY Startup Challenge
Some large companies, such as Ernst
& Young, have opted to create short

competitions in order for them to


engage with startups around a specific
business problem, in this case, the
right to be forgotten.
Sedicii has developed and patented
a technology that eliminates the
transmission, storage and exposure
of private user data during identity
verification. They won thesix-week
EY Startup Challengefrom a shortlist
of seven tech startups.
We wanted to work with
EY because they are focused
on delivering real commercial
outcomes for their customers that
use new innovations that startups
can provide, says Sediciis global
commercial director Richard Coady.
From thisprogramme and working
with the EY team, Sedicii benefited
from having access to and engaging
with EY clients in verifying our
solutions and introducing them
to our innovative technologies.

@mmmagtweets

15

COMMENT

16

MARCH 2015

www.mobilemarketingmagazine.com

MARCH 2015

COMMENT

THE
DISRUPTORS
Kirsty Styles looks at the latest crop of innovative apps and
mobile services vying for consumer and advertiser attention
he mobile industry hasnt quite yet
delivered on the whole new world
it promised instead the focus
seems to be on delivering, or perfecting,
innovations weve all been talking about for
years already. With sales halted on the current
version of Google Glass, plus wearables
like Nike FuelBand consigned to the scrap
heap, its clear that smart-device makers are
doing some soul-searching. Despite several
launches at CES, Apples iWatch (due this
spring) is just about the only wearable on
everyones mind.

of Wit.ai, which could accelerate voicecontrolled functionality in the social giants


products. Facebooks enterprise efforts are
also a hot tip for 2015, if businesses are willing
to part with their data of course.
Behind the scenes, Qualcomm has been
working to improve the processing power of
our smartphones, and its Snapdragon 810 is
now coming into production in Windows and
Android devices such as the LG G Flex 2. This
means better data speeds, longer battery life
and optimised support of 4K video.
And this is perfect timing for whats
becoming an all-video culture, with visual

Speed reading
However, the Uno Noteband is worth
checking out. The device, which has just
completed a successful crowdfund on
Indiegogo, comes pre-loaded with Spritz
fast-reading software. Spritz promises to
help you read a 300-page book in 90 minutes,
by showing you one word at a time in the
same place on-screen eradicating the eyemovement required to read a line of text. This
might be the key to keeping your New Years
resolution to read more books.
Another new app, Bond, could help you
keep your promises of regular contact with
family and friends. Bond lets you set regular
reminders to reach out to certain people, on
whichever platform they prefer.
Meanwhile, the handset market is still
pretty hot, with Chinese upstart Xiaomi
sealing its position as the worlds third-largest
handset maker, and rousing investment
rumours from the likes of Facebook. Xiaomi,
founded in 2010, has just unveiled a couple of
handsome handsets that are shorter, thinner,
lighter and cheaper than the iPhone 6 Plus.
Although failing in its bid to get a slice of
the Chinese device market, Facebook has
made an interesting acquisition in the form

The Uno Noteband comes pre-loaded with software that


promises to help you read a 300-page book in 90 minutes

feasting set to represent 79 per cent of all


consumer internet traffic in 2018, up from 66
per cent in 2013. Everyone from Facebook,
YouTube, Amazon, Netflix, Instagram and
Vice are vying for your attention in this
space, so prepare for the definition of TV,
the ad spend, and the metrics to change
dramatically.

Virtual reality
And where would video be without, next-gen
video (virtual reality)? Gamers are clearly
the big winners in the growth of VR, and
mobile games are already tipped to outsell
consoles this year. But advertisers, too, will

start to make virtual reality pay. Although the


Tesco store walkaround was pretty awkward,
companies like Chrysler are turning a behind
the scenes at the factory pitch into a truly
cinematic experience, with the help of Google
Maps and Oculus Rift, and now theres
Microsofts Hololens to get excited about (see
p.36).

Eye tests
And where theres bells and whistles tech,
theres also a real drive to create the products
and services that help every day. Covering
everything from assistive technologies for
people with disabilities, to quantified self
applications, 2015 is surely the year that
health products, and health data, hit the big
time. In Berlin, MiMi is using smartphones
to make hearing aid technologies accessible
to all. Peak Vision is likewise bringing cheap
eye tests to the developing world via its
smartphone app.
Bigger data is also helping smart city
innovation trickle down to smart towns.
MK:Smart is a 16m project currently
smartening up Milton Keynes, proving
that smart city projects can be done on a
smaller scale. The company behind this was
just bought up by Huawei, while Samsung
Ventures has invested in London-based
IoT startup Everythng, so its certainly a
battleground to watch going into 2015.
Keep an eye on eye-tracking and
facial-recognition, long-tipped to come
into mainstream usage, plus even more
mobile-first product customisation, such as
that just announced at BBC News. Mobile
money, again led by Apple, is also likely to
become just another thing we do come
2016. But dont think about that now
theres a whole year of improvement and
iteration to do first. MM

www.mobilemarketingmagazine.com

17

COVER STORY

MARCH 2015

OPEN FOR
Mobile BUSINESS
Martin Price, VP Product at OpenX, tells David Murphy how the
company is advancing the art of programmatic advertising for mobile
he history of OpenX dates back
to 2008, when it started out as
an ad serving company it was
a UK startup that migrated to Southern
California with considerable success. So
much so, in fact, that today it is recognised
as one of the leading programmatic
exchanges both Stateside and in the UK.
And mobile is an increasingly important
part of its global platform.
While the ad serving business is still
an integral part of the OpenX platform,
it is its real-time ad exchange and SSP
(Supply Side Platform) that are now its
core offerings. The company works with
more than 1,000 publishers and advertisers
around the world serving billions of
ad impressions a month. Of note, the
number of monthly impressions served
is second only to Google. OpenX Mobile,
which includes mobile web publishers,
app developers and buyers, is the fastest
growth area for the company.

Innovation and efficiency


OpenXs partners have been attracted
by an approach built on innovation and
efficiency. Theres a lot of hype right
now around programmatic, and a lot of
excitement about the supposed efficiencies
that it brings to the business of digital
advertising, compared to the old way of
doing things, says OpenX VP product,
Martin Price. However, some of the process
that drive programmatic are themselves
pretty inefficient.
One of these is the way that the auction
process is typically conducted, as Price
explains. The problem with the auction
process is that it is somewhat siloed
between the real-time bidding and network

18

worlds, he says. In the waterfall model,


if the highest bid for an impression comes
from an ad network, but then the network
refuses the impression, it is passed down
to the next highest bid in the ad network
stack. In the worst-case scenario, if each
subsequent ad network refuses the
impression, the price keeps dropping and
dropping and the publisher makes less
money. This happens even if there was
an advertiser willing to pay more for that
impression in a real-time auction, because
the waterfall model cannot accommodate
the real-time and the ad network stacks in
a unified way.
One of the benefits of OpenX is the level
of transparency our mobile ad exchange
offers buyers. In a mobile-first world where
cookies are less prevalent, the amount of
data passed between an exchange and
to buyers makes a big difference to the
buying-decision process. We focus
on providing greater transparency
in terms of mobile data signals to
enable our publishers to optimise
their performance more effectively.

Demand Fusion
OpenX solves the problem of
fractured demand with its groundbreaking Demand Fusion technology,
which fuses real-time bidding and ad
network demand into a single, unified
auction. So in the previous scenario, if
the highest bid comes from an ad network,
which then refuses the impression, and
the next highest bid comes from the
real-time auction, the real-time bid will
win the impression. The effect of this
for the publisher is to drive up the price
and maximise the yield by increasing

www.mobilemarketingmagazine.com

competition for the impression, while at


the same time opening up access to more
impressions for advertisers. OpenXs SSP
solution launched in June last year with

SPONSORED FEATURE

COVER STORY

Native ads are great


for driving app installs

YP, TVGuide.com andNew York Observer


on board as early customers.
Having successfully launched Demand
Fusion for web and mobile web inventory,
OpenXs next move is to bring it to the world
of in-app advertising which it hopes to do
by the end of the second quarter. To that
end, OpenX is launching a limited beta with
selected app publishers, offering a more
sophisticated, data-driven way to optimise
yield for their in-app inventory.
The app ecosystem has fundamentally

WE BELIEVE
IN ENABLING
ADVERTISING
FORMATS THAT FIT
BETTER WITH THE

experience for publishers and advertisers


alike. For the first time, publishers can
optimise their performance with minimal
manual configuration, while advertisers
get access to the maximum number of
impressions available in real time.

User experience
In addition to efficiency and transparency,
OpenX is also committed to improving the
user experience. We believe in enabling
advertising formats that fit better with the
user experience and that can be bought
and sold programmatically, says Price. A
low-resolution 320 x 50 banner is not going
to deliver the greatest experience on a 1080p
high-definition mobile device, so we are
committed to introducing more ad units
that are more engaging and innovative, and
also non-intrusive.
An example of this is the OpenX Native

USER EXPERIENCE
AND THAT CAN BE
BOUGHT AND SOLD
PROGRAMMATICALLY
different characteristics and challenges
including differences in integration types
such as SDKs and APIs; multiple ad formats,
such as native and interstitials; and diverse
data signals required by buyers. As a result,
we reimagined the best way to monetise
inventory for our in-app SSP product from
the ground up, says Price.
OpenXs new in-app SSP solution
leverages its proprietary Demand Fusion
technology to enable an optimised

OpenX brought native to the programmatic table with the


launch of its Native Ad Exchange in 2014

Ad Exchange that the company launched at


last years Mobile World Congress. This first
global, Real-Time Bidding (RTB) exchange
specifically for mobile-first native ads
increases access to native, programmatic
in-app inventory for advertisers, while
giving publishers greater control over the
type of ads they can offer making it easier
for them to deploy native ads at scale. The
native exchange includes a native video ad
unit that developers can run in feed, but
with the sound turned off, leaving it to the
consumer to decide whether to ignore or
engage with the ad, without intruding on
what they were doing.
Also during 2014, OpenX re-engineered
its SDK to facilitate a number of additional
ad units on mobile, including pre-, mid- and
post-roll video, interstitial video, and the
native in-feed video ads, delivered through
OpenXs own video player (but also with
extensive support for publishers own
custom video players). In the future, says
Price, OpenX wants to bring the same sort
of creativity and innovation in ad units to
new devices and form factors, including
connected TVs, wearables, and the myriad
other appliances that will make up the
Internet of Things.
Its only by listening to the needs of
our advertiser and publisher communities
that we can develop our platform in a way
that will help publishers monetise and
advertisers reach consumers with more
relevant messaging. Programmatic has the
potential to revolutionise digital advertising
we see our role as ensuring that it fulfils
that potential. MM
Meet the OpenX team at Mobile World
Congress 2015 youll find the company
in Hall 8.1, Stand J31

@mmmagtweets

19

ANALYSIS

MARCH 2015

THE NEW TELEVISION?


Alex Spencer looks at the seemingly inexorable rise
of mobile video advertising

ts hard to ignore the rapid growth


of video marketing on mobile over
the past year or so. According to
the IAB and PwC, ad spend on mobile video
in the UK nearly tripled in the first half of
2014 to 63.9m, making it the single fastest
growing digital ad format. Looking ahead,
Forrester predicts that online video ad spend
in Europe will grow at a CAGR of 20 per cent
between now and 2019.
Unsurprisingly, many of mobile
advertisings biggest names have followed
suit. Last November, Mark Zuckerberg
announced: In five years, most of Facebook
will be video, and 2014 saw major video
acquisitions by Facebook (LiveRail), Yahoo
(BrightRoll) and Google (mDialog). This year,
Google has introduced viewability reporting
to its video campaigns for the first time, and

20

announced completion rates of up to 74


per cent on its premium video marketplace,
Partner Select.
The exact reason this growth is
happening now depends entirely on who
you ask. From the consumers perspective,
its mainly a case of mobile video becoming
a viable option, according to Forresters
principal analyst, Thomas Husson. The
basic drivers are now in place for people to
spend time watching video and TV on their
smartphone: 4G, data bundles, much more
mobile-friendly content, he says.
As for publishers, says Husson, its
primarily due to the higher CPMs offered
by video. Its a new way to monetise
increasingly mobile audiences, rather
than relying on static banners that are
forced to fit on a small screen.

www.mobilemarketingmagazine.com

And for the advertisers themselves?


According to Claire Valoti, UK head of
agency relations at Facebook, its all about
videos ability to tell a story. Video allows
for much richer storytelling, combining
sight, sound and motion, and providing
a bigger canvas for brand-building,
emotional resonance and loyalty,
Valoti says.

Commercial break
There is another potential reason for the
rise of video marketing: familiarity. Video is
actually easier for brands to get their heads
around, says Zac Pinkham, MD of mobile
ad platform Millennial Media. If theyve not
done mobile before and you start talking to
them about rich media units and interstitials
and swipe, they can get a bit lost. But all

MARCH 2015

says Millennials Pinkham. Theyve already


got those assets, so its not like they need to
build a load of new creative.
But mobile is a different environment to
TV not least because the majority of content
being presented isnt video, which can lead
to users being put off by auto-playing ads
(see Is mobile video an auto turn-off?, p22).
Besides, does a piece of creative designed to
grab the attention of someone sat on a sofa
on the other side of their living room really
work for a commuter craning over a 6-inch
screen on the top deck of a crowded bus?
The underlying creative asset, whether
its 15 or 30 seconds or some longer form, I
think works, says Schiller. What digital ads
offer is the ability to reach the widest variety
of users across devices, whether theyre on

WEVE SEEN
A GROWTH IN
DEMAND FOR
SNACKABLE, BITESIZE CONTENT
ON MOBILE AND
HAVE STARTED TO
CREATE CONTENT
SPECIFICALLY FOR
THE PLATFORM
DAVID AMODIO, CHANNEL 4

major brands have been creating video


assets since the advent of TV.
Jay Schiller, senior director of video
advertising at Microsoft, agrees. Buying
an ad that shows in front of a video or as an
interstitial is essentially like a commercial
break on TV, he says. Thats where most
advertisers comfort zone is.
For now the critical mass of spend on
digital video is very much coming from
the big TV spenders. They already have the
creative and have made the investment, they
are very focused on reaching users with that
same message regardless of what device
theyre on.

ANALYSIS

their smartphone during their commute


or on the go at weekends, on their desktop
during the workday, or on the Xbox at night.
TV advertisers already understand how
to tell great stories using video, agrees
Pinkham. What we bring is the ability
to reach the right people and then add
interactivity over the top.
This might mean taking a beer
commercial and overlaying it with a map
that shows where the viewers nearest pub
is, or adding browsable hotspots to an ad
for a car that enables viewers to explore
individual components in more depth.
We encourage people to always
incorporate these elements in their video
ads, and make it a lean forwards experience
rather than lean back, says Pinkham. The
great thing for FMCG brands in particular
is that this means the video ads can link
straight through to purchase.
Channel 4 is one publisher currently
leveraging this kind of interactivity, having
brought its iVOD interactive ad formats to
mobile for the first time last year.
For now, the broadcaster offers only a
limited selection of the units available on
desktop, restricted to the 4OD iOS app,
though this is being expanded as time goes
on. One of the most recently introduced
formats is Ad Elect first launched on
desktop in 2011 which gives viewers the
chance to choose from a small selection of
creatives from the same advertiser, to better
suit their interests.

Major focus
Smartphones and tablets together make up
around a quarter of traffic to 4OD but, vitally,
half of the services 11m-strong database of
registered users signed up on mobile.

Different environment
If youre just translating the TV content onto
mobile then thats very easy for brands,

@mmmagtweets

21

ANALYSIS

MARCH 2015

Is mobile video an auto turn-off?


A recent Frank N. Magid Associates study found that 20
per cent of 13-17 year olds, and 25 per cent of 18-24s,
said they will spend less time on Facebook as a result of
video ads appearing in their feeds, reporting that they
found them too disruptive and repetitive. So, is the
use of video advertising simply too intrusive for the
average mobile user?
Not if the ad is personalised and relevant, says
Facebooks Claire Valoti. In fact, were increasingly
seeing a shift towards visual content on Facebook,
especially with video.
This is undeniable the number of videos posted by
each Facebook user has risen 75 per cent in the past year,
and in the UK, over 50 per cent of Facebook users watch
a video every day. On the other hand, these videos arent
necessarily marketing content.
A recent study commissioned by Channel 4, which
used eye-tracking glasses to measure peoples interest in
ads, showed that on platforms that offer more short-form
advertising content, users spend a lot of time looking
away from the screen as the ads played, and then would
look back again when the content they were actually
looking for came on.
Our belief is that within a broadcast environment,
whether its on a smartphone or tablet or TV, people
are actively looking for content, says Channel 4s David
Amodio. Youre in the right mindset, so you tend to
sit down and actually enjoy the ads. Whereas, in an
environment where youre not expecting to see video
ads, they can be annoying.
This is exacerbated by ads that begin automatically,
without any input from the user. Weve seen a lot of
pushback on that, says Microsofts Jay Schiller. But

theres a certain grey area in the definition of auto-play.


If the user is expecting the video to start, even if it starts
automatically, the user is much more willing to watch it.
If you dont have any identifier, or if the video just pops up
and starts playing without any warning, then that can be
too disruptive.
Ad standards are already addressing this issue, however,
and as with any advertising, users
interest and the resulting
effectiveness of the ad hinges
on the content itself.
The key is not thinking
purely in terms of advertising,
says Forresters Thomas Husson.
Increasingly, mobile is about
utility marketing and
delivering services and
information to the
consumer in their
moment of need.
That could take the
form of a traditional
video ad but if
you just get pushed
a reused TV spot,
its unlikely to be
what youre actually
looking for. There
are much more
creative ways to make
video work on mobile,
such as a tutorial or
how-to video.
Microsofts Jay Schiller

Our viewers tend to skew a little


younger than other broadcasters, so
mobile is a major focus for us, especially
as a future planning piece, says Channel
4 digital and creative lead David Amodio.
Weve seen a growth in demand for
snackable, bite-size content on mobile
and have started to create content
specifically for the platform.
This has led to the creation of Shorts,
a set of original videos each less than four

22

minutes long, exclusively produced for


4OD. Channel 4 uses the shorts as a testing
ground for new talent, and to promote its
existing programmes with added content
and Best Bits highlights. Fascinatingly,
though, Amodio tells us its the branded
content that has actually produced the
highest numbers.
The broadcaster has partnered with
three brands on its 4OD-exclusive content
marketing: British Gas, Rimmel and Alfa

www.mobilemarketingmagazine.com

Romeo. The last of these has been the


most successful so far, with the resulting
Guy Martins Passion for Life series
commissioned as a full 30-minute show
which aired on the channel last December.
This kind of digital-exclusive content
seems like the way forward for advertisers
who want to make the most of mobile video,
and its proved especially popular on social
networks like YouTube, Twitters short-video
platform Vine, and Facebook.

MARCH 2015

ANALYSIS

Four of the top 10 global trending videos on YouTube in 2014s were ads from (L-R) Nike, Budweiser, clothing company Wren and the 20th Century Fox film Devils Due

Whether youre a global brand, a


journalist in the field or a public figure
sharing a part of your life, posting raw
videos that are compelling, shareable
clips that no one else will have is the
best way to reach your audience, says
Facebooks Valoti. Creative content is king
on Facebook, so our Creative Shop team
collaborates with agencies and brands to
help them develop content that is every
bit as useful, powerful and engaging as the
content people already see from friends
and family in their News Feed.
Valoti points to Lucozades Conditions
Zone campaign, which ran on Facebook
during the World Cup, as an example of this
creative approach. The ads recreated Brazils
weather conditions on a five-a-side pitch in
London and used Lucozades football talent,
including Liverpool and England star Steven
Gerrard, to showcase the impact of heat and
humidity on performance.
The ads were delivered across mobile
and desktop, to 16-34 year old males with
football-related interests, as well as anyone
talking about football-related content on
Facebook. With a reach of 4.1m people,
the video attracted 1.3m views a view is
registered only when the video remains

on the users screen for longer than three


seconds and contributed to a 12 per
cent increase in sales for Lucozade
over the period.
Digital video gives advertisers the
opportunity to do something that always
proved very difficult on TV: to more
accurately measure interaction, engagement
and, ultimately, conversion, says Valoti.
We are able to observe behaviours, track
conversion and accurately marry up peoples
behaviour with their ultimate purchase.

Rapid growth
So given the rapid growth in digital video
consumption, could it potentially dethrone

THERES A BIG
OPPORTUNITY FOR
BRANDS TO USE DIGITAL
VIDEO CONTENT TO
COMPLEMENT AND
AMPLIFY THEIR TV
CAMPAIGNS
When Snapchat introduced ads to its messaging app in
2014, it went straight for video. The very first ad was for a
20-second trailer for Universal Pictures movie Ouija

CLAIRE VALOTI, FACEBOOK

the traditional king of media? According


to the Standard Media Index (SMI), US TV
spend dropped by 2 per cent year-on-year
in Q4 2014, and by as much as 9 per cent
between October 2013 and 2014. With
spend on mobile video surging, its
possible that it is cannibalising some
of TVs market share.
There is a strong relationship
between lower TV ratings and associated
ad dollars and the dramatic increase
in mobile advertising, says SMI chief
commercial officer James Fennessy.
Advertisers need to find new ways to
reach the 18-34 demographic, since the
fact is that they watch a lot less linear TV
than their parents did.
However, Fennessy says, there is still as
much if not more appetite from these
younger audiences for quality content,
and as long as TV broadcasters continue
to produce programmes like Breaking Bad
and Mad Men, theyll stay ahead of their
digital equivalents. Whats more, the advent
of online streaming has helped them reach
entirely new audiences. Mobile definitely
complements and expands traditional TVs
reach and producers of high-quality content
are in a terrific position to capitalise on this
market dynamic, he says.
Were not suggesting digital video
replaces TV ads, Valoti agrees. Rather, theres
a big opportunity for brands to use digital
video content to complement and amplify
their TV campaigns around the clock.
As the old maxim goes, no one was
ever fired for buying ads on prime-time
TV and that looks likely to hold true for
the foreseeable future. But with ad formats,
creative and the supporting tech all evolving
at a rapid pace, perhaps were not too far
away from the day when the same can be said
about a well-placed video ad on mobile. MM

@mmmagtweets

23

ANALYSIS

MARCH 2015

With the UK General Election approaching,


Kirsty Styles looks at efforts being made
around the world to introduce mobile and
digital voting

24

www.mobilemarketingmagazine.com

MARCH 2015

ANALYSIS

Harper Reed was CTO


for Barack Obamas
election campaign

HARPER REED WAS


CERTAINLY AN
UNUSUAL SUSPECT
WHEN HE WAS
APPOINTED CTO FOR
OBAMAS CAMPAIGN,
HEADING INTO THE
OVAL OFFICE

anuary 2015 saw the celebration


of Democracy Day here in
the UK, this year marking the
750th anniversary of the countrys first
parliament. It was perhaps not an occasion
up there with Christmas. The month
also saw anti-austerity party Syriza win
a majority in Greeces parliament, on the
promise of a renegotiation of public debt
obligations that many believe are crippling
the countrys economic recovery. So it was
quite the month for democracy, even if it
passed many in the politically disengaged
British public by.
The UK will be holding its own public
vote in May, with some billing it the lottery

election because of the colourful range of


parties that are in a real position to win seats
this time. The Independent has narrowed
the race down to just 100 key marginals,
noting that Labour is likely to face fierce
competition from the Scottish National
Party, while the Lib Dems are in danger of
dropping from a haul of 57 seats last time
around to just 19 in 2015.
Just as the political race has been thrown
a little more wide open, the digital world
has come a long way since we voted back
in 2010, and no doubt contributing to the
loosening grip of the big two parties. But,
despite near-peak smartphone penetration
in the UK, policymakers are still yet to
give the green light to online, or better yet,
mobile voting.

Internet voting
In true, lumbering bureaucracy fashion, two
different groups in parliament have been
consulting simultaneously on proposals
around a digital democracy. Speaker John
Bercows Digital Democracy Commission
has just produced its report, stating that
internet voting could be online in time for
the 2020 general election, while also noting
that parliamentary language and procedures
will need to be simplified by then if we have
any hope that everyone can understand
what the House of Commons does.

Cabinet Office minister Sam Gyimah


says: The fact electronic voting is incredibly
rare across the globe I believe is testament
to some of the problems delivering it. But
Anthony Walker, deputy CEO of Tech UK
says: We are confident the tools exist to
address these challenges. Its something
thats been a reality in Estonia for a decade
in 2005, Estonia became the first country
worldwide to offer legally binding online
votes in a national election. The number
casting their vote in this way has risen from
just under 10,000 people first time around,
to a third of the population practising digital
democracy in last years European elections.

Voter engagemnet
The UKs Political and Constitutional
Reform Committeehas likewise just
finished accepting submissions on voter
engagement, covering proposals including
automatic registration, online voting
and votes at 16. The former should be of
particular interest to those who want more
tech solutions in powerful places, given that
moves by the Government Digital Service,
tasked with transforming the British state
for the 21st Century, has tried to streamline
voter registration and knocked almost 1m off
the register in the process.
The Labour Party published its Digital
Government report in November last
year, calling for a digital government
infrastructure thats accessible to all. It cited
figures from BT estimating that internet
access means an equivalent extra 1,064
every year for each new user. But the study
points out that while the less well off are less
likely to be online, 80 per cent of government
interactions are with the poorest 25 per
cent of people.
A new model for digital democracy is
shaping up in the form of DemocracyOS,
a cross-platform, open-source tool for
debating and voting thats being developed
by a group of young professionals in
Argentina. Its creators explain it like this:

@mmmagtweets

25

ANALYSIS

MARCH 2015

The internet has changed everything:


the way we share and consume culture,
how we engage in commerce, and how we
communicate with others. But the internet
has failed to change in one key area of our
lives: politics. Democracy is in great need
of a serious upgrade.
Having already appeared as part of a
TED talk, and been demoed in front of
the World Economic Forum, the project
is about to be crowdfunded (of course)
via a Kickstarter campaign. The vision is
that voters will be given the opportunity
to express their preferences on any
given issue, directly to their elected
representative, with the hope this will
increase engagement with politics, and
accountability of decision-makers.
Elsewhere in the world, and postfinancial crash, the Icelandic public was
given the opportunity to take part in drafting
a crowdsourced constitution. The 10-month
process saw an elected 25-member
Constitutional Advisory Council seek
feedback through social media sites before
drafting the new document. But the effort
ultimately failed in the countrys legislature,
despite huge public support. In Seattle,

Labours NHS Baby campaign struck a strong social media chord with would-be voters

meanwhile, an online game was used to


challenge residents to pick funding priorities
in order to close a very real $31.7m gap in
the citys 2013 budget.

Big data
So if we arent going to
have a digitally-enabled
election in the UK
this time, how are the
campaigns shaping up?
Its Barack Obamas
2012 election campaign
that usually springs to
mind when considering
great digital election
campaigning. Harper
Reed was certainly an
unusual suspect when
he was appointed CTO
for the campaign,
heading into the Oval
Office with a beard and
thick-rimmed glasses
that youd be more
likely to find in
Shoreditch than in
the White House. But
the victory won here
is among the greatest
examples the world
has ever seen of big
data being made
genuinely useful,

26

www.mobilemarketingmagazine.com

and much credit is given to the tech tools


deployed during the race.
Going into 2015, and despite bringing
in the wizard of Oz Australian electoral
guru Lynton Crosby on a 500,000 deal to
secure electoral victory the Conservative
Party looks to be running more of a bad
data campaign than a big data one. The
Spectator reports that the party is running
two rickety databases simultaneously in
the run up to the May vote, VoteSource
and Merlin, but points out this isnt a new
issue, with one campaigner admitting they
called quite a lot of dead people in 2013s
Eastleigh by-election.
In contrast, Labour Digital, a young team
of Labour supporters working in tech who
want Labour to be number one in digital
has been called the partys most powerful
weapon. They created last years NHS Baby
campaign, a minimally-party-branded
tool that created lots of socially shareable
nostalgia I was the 25,484,298th baby
born on the NHS while harvesting email
addresses in the process.
The cost-efficiency and democratic
access that comes with digital campaigning
has not gone unnoticed by the smaller
parties. Digital means a level playing field,
says UKIPs Conservative defector Douglas
Carswell. Almost anything the big corporate
parties do on massive central databases can
now be done on a 600 laptop.With a good
desktop publishing programme and an army

MARCH 2015

of volunteers, you can compete on equal


terms with the Westminster machines.
The Green Party has also embraced this
digital do-it-yourself spirit the Reasons to
Vote Green website, knocked up by a techsavvy volunteer, has seen more than 42,000
shares on Facebook.

have attempted to wipe all of their pre-2010


speeches off the internet. So weve dug them
out, said the websites political editor Jim
Waterson. Many sites, such as VoteforPolicies.
org, have sprung up just to cater for people
who just wants to know who to plump for.
Unfortunately for the political parties, the

MANY MODERN CITIZENS ARE MAKING THEIR


DECISION AHEAD OF THE MAY VOTE AND
WILL BE EXPECTING AN ONLINE EXPERIENCE
COMPARABLE WITH AIRBNB OR NETFLIX
Old news

world wont wait. The challenges now facing


In the past, The Sun was confident enough
political parties are the same as those being
of its own power to influence the election
tackled by legacy brands: when people can
debate that it printed the famed Its the Sun
make a one-click purchase on Amazon, why
wot won it front page (left) following the
would they use a specialist shops site? And
Conservative victory in 1992. But the most
although none of the parties have so far fallen
heated discussions around the election so
foul of data leaks or breaches, given that
far have been centred on the TV debate: will
discs containing information from three
they, wont they? If they do, who will appear?
And perhaps its the chatter happening
around these TV spots that will make the
biggest difference this time round.
Its still not quite clear whether Facebook
likes actually turn into votes; I know I
follow UKIP on Twitter, but only so I know
what theyre up to. But FremantleMedias
Keith Hindle recently told The Guardian that
the level of social engagement its TV shows
@Ed_Miliband - 374k
drive is now more important to advertisers
than TV ratings.
Twitter has taken this opportunity to start
@uklabour - 172k
opening up and highlighting tools that could
help political parties make an impact in
target seats, including geo-targeting around
individual postcodes. This is potentially
even more important in 2015 when the role
of the smartphone will come to the fore as a
way of connecting with voters, Twitter says
on its blog. Mobile is in Twitters DNA: of
Twitters 15m UK users, 80 per cent access @thegreenparty 102k

ANALYSIS

sensitive police misconduct inquiries just


got lost in the post, lets not put it past them.
Many modern citizens, some spurred
into caring by the exponential growth of
smaller parties such as the Green Party and
UKIP, and some mobilised by events taking
place in Greece and elsewhere, are now
trying to make their decision ahead of the
May vote, and will be expecting an online
experience comparable with Airbnb or
Netflix. They will be disappointed.
But its not actually those digital-savvy
consumers that are the people most likely
to vote. Despite the cheeky antics and big
conversations now made possible online,
in the 2010 election, fewer than half (44
per cent) of 18 to 24 year olds cast a ballot,
while that shot up to 76 per cent of over
65s. As well as focusing on policies that
favour older people, this perhaps explains
the reluctance from the major parties to
move to online or mobile voting: if you
make it easier, digital people might actually
do democracy. And you wouldnt want that
now, would you? MM

Follow That How the leading politicians and


parties stack up on Twitter

the platform via theirmobile device.


But, unlike newspapers, digital doesnt
become tomorrows fish and chip wrappers:
the internet doesnt forgive or forget. David
Cameron was mocked early in 2014 for
paying people to like him, in the form of
a paid Facebook campaign. The party was
also called out on Buzzfeed for trying to
delete from its website some of the promises
made before the last election. The Tories

@David_Cameron - 905k

@nick_clegg - 207k

@nigel_farage - 184k

@conservatives - 132K

@libdems - 79.6k
@ukip - 79.2k
@natalieben - 49.5k

@mmmagtweets

27

AWARDS

MARCH 2015

Celebrating
Excellence

he winners of the 2014 Effective Mobile Marketing Awards were announced at a


packed ceremony in London in late November. 300 executives representing brands,
agencies and mobile marketing tech providers were in attendance, as host Spencer
Kelly and Mobile Marketing editor David Murphy revealed the winners across 30 categories.
The 5th annual Awards were sponsored by BlisMedia, Celtra, Digital Gurus, Millennial
Media, StrikeAd and Theorem. They attracted more than 200 entries from brands and
agencies across the globe, which were whittled down by the judging panel to a shortlist
comprising only the very best, from which the winners were chosen.
John Lewis, Unilever, Mothercare, Renault, Subway, Sony Pictures and IKEA were
among the brands taking to the stage to pick up trophies, in recognition of their excellent
work in the mobile channel.
This year for the first time, the Awards also included four Peoples Choice Awards, voted
for by the industry from a shortlist drawn up by the Mobile Marketing team working with a
panel of industry experts.
The Effective Mobile Marketing Awards represent the very best the industry has to offer,
and with every passing year the competition to win one of the Awards gets even tougher.
Well be announcing the details and entry criteria for the 2015 Awards in the coming weeks.
If youre doing great work in mobile and want to showcase it to a global audience, stay tuned
to mobilemarketingmagazine.com for the entry criteria and deadlines.
In the meantime, heres a roll call of all the 2014 winners

Partners

Intelligent Targeting

28

The 5th annual


Effective Mobile
Marketing Awards
winners were
announced late last
year. Heres a rundown
of all the winners

pantone 647

www.mobilemarketingmagazine.com

pantone 647/40%
pantone 144

MARCH 2015

AWARDS

Effective Mobile Marketing Awards


2014 Roll of Honour
Most Effective Advertising Network
Winner: Millennial Media
Highly Commended: LoopMe

Most Effective Advertising


Technology Platform

Winner: Drawbridge
Highly Commended: BlisMedia

Most Effective Mobile-First Service

Winner: Paym and The7Stars


Highly Commended: Nimbletank
Soundjack

Most Effective App Or Site


Building Platform

Winner: Future Platforms Kirin

Most Effective Mobile Or


Responsive Site

Winner: Ampersand Harvey


Nichols Making Luxury Mobile

Most Effective Consumer App

Winner: Mothercare and NN4M


Mothercare Android App
Highly Commended: Future
Workshops The Open
Championship

Most Effective Tablet App

Winner: Publicis-Blueprint
Vue Tablet App
Highly Commended: iRiS Software
Systems and Kempinski Hotels
iRiS Guest Valet

Most Effective Programmatic


Buying Campaign

Winner: Tesco, Qriously and Initiative


1 Delivery Vs. Click & Collect

Most Effective Native


Advertising Campaign

Winner: Sony Pictures and


Manning Gottlieb OMD The
Amazing Spider-Man 2/Draw
Something Partnership

Most Effective Rich Media Campaign

Winner: Manning Gottlieb OMD &


Mobile5 Renault Zoe Locate and
Personalise

Most Effective Use Of Video

Winner: Millennial Media North


Face Never Stop Exploring

Most Effective Social Campaign


Winner: OMD UK Celebrity
Cruises #SmartSnaps

Most Effective Messaging Campaign

Winner: IKEA, IMImobile and LIDA


IKEA Family

Most Effective CRM Campaign


Winner: CHS and Subway
Subcard

Most Effective Brand Campaign

Winner: John Lewis and Manning


Gottlieb OMD Christmas Bear
and Hare

Most Effective Sales Promotion


Campaign

Winner: Mindshare and Unilever


Walls Ice-Cream: Thermal
Activated Media
Highly Commended: IKEA,
IMImobile and LIDA IKEA Family

Most Effective Tablet


Advertising Campaign

Winner: OMD UK and Coty UK


Rimmel London Rita Ora Colour
Rush Collection

Most Effective Integrated Campaign

Most Effective Charity Campaign


Or Solution

Winner: Cancer Research UK


Play To Cure: Genes In Space

Most Effective Financial Campaign


Or Solution

Winner: Lloyds Banking Group


Lloyds Banking Mobile Banking

Most Effective Entertainment


Campaign Or Solution

Winner: BT And Affiliate Window


BT Sport

Most Effective Travel & Tourism


Campaign Or Solution

Winner: iRiS Software Systems


and Kempinski Hotels iRiS
Guest Valet
Highly Commended: Canal
& River Trust Readymade
#WaterwayDays

Most Effective Retail Campaign


Or Solution

Winner: IKEA, IMImobile And LIDA


IKEA Family
Highly Commended: Smartfocus
Meadowhall Ladies Night

Most Effective Mobile


Advertising Campaign

Winner: John Lewis and Manning


Gottlieb OMD Christmas Bear
and Hare

Winner: OMD UK and Livity


NSPCC and Childline Zipit

Peoples Choice Awards

Most Effective In-Store Initiative

Most Effective Agency

Winner: Cadburys And Hi Mum!


Said Dad Joy Box
Highly Commended: OMD UK and
McDonalds UK McFlurry Music
Mix-Up

Most Effective Use Of


Payment Technologies

Winner: Bango The Bango


Payment Platform

Winner: Mindshare

Most Effective Technology Provider


Winner: Google

Most Effective Brand


Winner: Uber

Mobile Marketer of the Year

Winner: James Chandler, global


mobile director, Mindshare

@mmmagtweets

29

ANALYSIS

MARCH 2015

SIM Cities
Tim Maytom looks
at the smart city
initiatives, largely
powered by mobile
tech, springing up
around the UK

he idea of the smart city has been


increasingly in the news in the past
few years. The same principles
that enable us to connect to our homes and
cars are being applied across large areas,
and NFC tags and Bluetooth beacons are
deployed in ever larger numbers to create
a web of sensors covering our cities.
But while an individual retailer,
restaurant chain or car manufacturer
can decide to deploy technology like this
relatively easily, creating a smart city means
balancing the concerns of citizens, multiple
businesses, local authorities and technology
providers, all while working within what are
often much tighter budget controls, and
with much stricter oversight.
Its easy to think of London as the be-all
and end-all of tech development in England,
but the size of the capital means that putting
this kind of city-wide endeavour in place is
challenging to say the least. Instead, some
of Britains smaller cities have led the way in
establishing smart city initiatives, serving as
testing grounds for tomorrows technology.
Cities including Bristol, Birmingham
and Manchester have all been supported

THE OPPORTUNITY
TO DEVELOP NEW
TECHNOLOGIES FOR
SMART CITIES IN THE
UK IS MASSIVE
DAVID WILLETTS, MP

30

www.mobilemarketingmagazine.com

by the Department for Business, Innovation


and Skills Smart City initiative, aimed at
ensuring the UK is at the front of the pack
in what is predicted to be a $40bn (26.4bn)
industry by 2020.
The Technology Strategy Board has
invested 50m in supporting businesses
developing smart city technologies, and
a further 24m in turning Glasgow into a
future cities demonstrator that integrates
services across health, transport, energy and
public safety to improve the local economy
and quality of life for residents.

Massive opportunity
The opportunity to develop new
technologies for smart cities in the UK is
massive, says MP David Willetts, former
chair of the UKs Smart Cities Forum.
We want to make sure that we are at the
forefront of this digital revolution so we can
stay ahead in the global race, designing new
innovations in the UK and exporting them
across the world. With around 80 per cent of
the UKs population living in cities, we need
to ensure that they are fit for purpose in the
digital age.

MARCH 2015

ANALYSIS

Businesses and consumers in Norwichs London Street have benefitted from the citys experiments with mobile

THE AIM OF THE SOLUTION IS TO CONNECT PHYSICAL AND DIGITAL


ASSETS IN A WAY THAT WILL SURPRISE AND DELIGHT PEOPLE
MILES QUITMANN (BELOW-RIGHT), PROXAMA

Smaller, more commerce-focused smart


city schemes have also been springing up.
Liverpool deployed a series of Bluetooth
beacons and launched a dedicated app
aimed at enriching visitors experience of
the citys cultural and arts offerings, while
the City of York Council teamed up with
personalised entertainment company
Appeartome to create an NFC-triggered app
that brought the citys rich history to life at
20 locations spread across a walking tour.
Norwich is another city taking the
smart city route. Here, the Business
Improvement District (BID) has partnered
with proximity marketing firm Proxama to
create a beacon and app system designed
to enrich the shopping experience for
residents and visitors, and drive footfall
for businesses in the city.
Over the last 10 years, we have seen
the decline of the high street nationwide,
although less so in Norwich than in other

places, says Stefan Gurney, executive


director of the Norwich BID. We have to
work harder to get people out of their homes
and into physical shops. Something like the
Connected High Street project its the way
the city has to be now.
The Norwich BID was formed just
over two years ago by local businesses,
with the aim of enhancing and promoting
the local trading environment. It worked
with Proxama to create a vision of a smart
city solution that would aid its efforts,
winning funding from the Technology
Strategy Board as part of its Re-imagine
the High Street competition.
The solution uses a wide range
of proximity technologies, including
Bluetooth beacons, NFC and QR codes, to
connect to the free Loka app, developed
by Proxama. The app, which works in
conjunction with the Norwich BIDs
existing Discover Norwich app, interacts

with the various proximity sensors to


deliver updates, offers and notifications
to residents and visitors.
The project is the first of its kind to use
beacons on buses, enabling the app to
detect when users are travelling into the city
centre, and provide them with information

@mmmagtweets

31

ANALYSIS

MARCH 2015

to better plan their trip and take advantage


of events within the city centre.

Surprise and delight

RETAIL IS AT A
TURNING POINT
IN TERMS OF THE
CONVERGENCE
OF ON AND OFFLINE SHOPPING
EXPERIENCES
MIKE POTTS, HAVAS MEDIA

The aim of the solution is to connect


physical and digital assets in a way that will
surprise and delight people, said Miles
Quitmann, chief commercial officer for
Proxama. Its about delivering the right
message to people at the right time.
Establishing networks of sensors that
can combine methods such as beacons,
geo-fencing and NFC, creates a trail of
information that businesses and local
authorities can use to plan strategy and
even inform policy. While many of these
technologies have existed for several years,
its only now that smart city initiatives are
joining up the information they produce
at greater scale.
Working with mobile technology
is essential now, says Gurney. Its the
way we consume information, and we
want the platform weve created to be
able to support that conversation. Both
businesses and consumers can benefit
from a scheme like this it adds value to
both sides of the equation. People still
want the experience, they want the city,
but they also want the convenience that
comes from a mobile phone.
Theres a lot of research to support the
idea that in the future, shoppers will want
to combine the digital and physical worlds
in this way. A study by Webtrends found
that 42 per cent of Britons want to receive
real-time information and offers from
retailers when they are in the vicinity, and
of those, 11 per cent would like real-time
reminders that direct them to items they
previously searched for online.

shopping to out-of-city parks and park


and rides, and less cars in towns as
shoppers make use of browse in-store,
buy online technology.
20 businesses in Norwich have so far
signed up to the Loka solution. These
include local retailers Castle Mall, Jarrolds
and Pilch Sport, tourist attractions such as
Norwich Castle, the Forum and Cinema

Norwich was always a fine city, nows its smart too

City, and restaurants including The


Library and Pinocchios.
I was very keen to trial the whole
process, says Jayne Raffles, director
of Raffles Group, which runs several
restaurants in Norwich. Mobile gives us a
way to reach a younger demographic who
tend to use their smartphones to inform
their decisions, and also enables us to
promote to someone from out of town
in a way other advertising cant.
As a small business, we dont have
the income or expertise to set up a solution

Turning point
Retail is at a turning point in terms of
the convergence of on and off-line
shopping experiences, says Mike
Potts, chief data officer at Havas
Media, which ran its own
smart city project in Oxford
to manage traffic and parking
issues. This is going
to bring significant
change to the make-up
and use of cities. Expect
more to be made of
the road transport
network in getting

32

www.mobilemarketingmagazine.com

Local institution Jarrolds has embraced mobile

MARCH 2015

ANALYSIS

Norwichs mobile revolution has taken in vendors at Norwich Market (above) and the Forum (below)

like this on our own. By working together


as part of the BID, with support from
Proxama, weve been able to deploy this
new technology. Its great to see Norwich
embracing this sort of change, and I think
that, thanks to schemes like this, theres
a vibrancy to the area that there wasnt
10 years ago.
The funding provided by the Technology
Strategy Board only allows for a six-month
long pilot project, after which the scheme
may move on to Phase Two, covering a much
wider area of the city, and connecting more
businesses from a wider variety of sectors,
including Norwich City Football Club,
galleries, theatres and the local authority.

High Street, it represents a permanent shift


in how we operate within our city centres.
Theres a real appetite from retailers
for this sort of technology, says Gurney.
People are excited by the opportunities it
offers. When we went to the businesses with
the idea, it wasnt a hard sell. Businesses are
aware you need to be as smart as possible
because the city is changing. I think it reflects
the ethos of the city bringing various vested
interests together, drawn by a common goal
that improves the lives of everyone.

The initiative in Norwich is just one


of many taking place across the country
at the moment, as businesses, councils,
developers and technology specialists work
together to create a blueprint for the city of
the future. The power that mobile phones
have to connect and engage people is
undeniable, and those responsible for our
cities are waking up to the fact that if they
want to reach people in the most effective
manner, they need to build mobile into
the core of how they operate. MM

Big plans
Within the pilot period, the Norwich BID
has big plans for how the solution can
be used to engage both residents and
visitors. The system was used as part
of a Christmas tree trail over the festive
period, with similar deployments planned
for Norwichs City of Ale festival, Easter
egg hunts and the GoGoDragons event,
which will see 80 large painted sculptures
of dragons, all equipped with beacons,
placed around the city.
The team behind the solution is
confident that even if the smart city doesnt
receive the funding from Re-imagine the

@mmmagtweets

33

COMMENT

MARCH 2015

Redefining
Premium on Mobile
Rebecca Mahony, CMO of Teads, argues that high-end brands can find
the inventory they need on mobile, if they are prepared to look beyond
instream ad formats
he word premium is perhaps the
most overused word in marketing.
Products ranging from food and
drink to clothes and housing have all been
described as premium at one time or
another. Advertising is not exempt a quick
search for premium on Mobile Marketings
website calls up 96 pages of results thats
almost 1,000 articles.
Its a word that has been abused over the
last 10 years, and its definition can include
anything from professional content to blogs
to video-sharing sites to, at the extreme end
of the scale, anything that doesnt constitute
adult content.
But for brands, video advertising
placements that are genuinely premium
and by premium they mean situated on wellrespected, well-known, professional sites
are hard to find and are often considered to
be the Holy Grail of advertising. Their scarcity
has forced many brands to carefully consider
their video advertising campaigns as they
fondly recall the relative risk-free nature of
offline advertising.

Premium inventory
The problem is not that genuine premium
video advertising does not exist; it is down
to its availability, or apparent lack thereof.
Due to the industrys preference for instream
video advertising (ad formats that replicate
the TV model and place video advertising
before video content) the video ad sector
suffers from a lack of premium video
advertising inventory.
Publishers often sell out of their instream
video advertising inventory months in

34

advance, and are finding it difficult to


dramatically increase the amount of
inventory available, as it requires the
production of additional video content.
This lack of inventory leads brands to place
their video advertising within less-thanpremium environments, causing concerns
around brand safety.
While the lack of premium video
advertising inventory on desktop has been
widely discussed, the equivalent situation
is occurring on mobile. As investment
in mobile video soars (up 196 per cent
in H1 2014) the problem becomes the

PREMIUM MOBILE SITES AND APPS SIMPLY DO


NOT HAVE ENOUGH INVENTORY TO MEET
DEMAND IF ONLY INSTREAM VIDEO FORMATS
ARE USED
same where and how should the video be
delivered to consumers?
Despite its popularity, mobile is a tricky
medium to work with due to its excessive
fragmentation. iOS or Android, smartphones,
tablets or phablets, mobile web or in-app, are
all considerations agencies and third parties
need to bear in mind when planning their
mobile video advertising campaigns.
Typically, users split their time between
apps and the mobile web. A survey put
out last year by analytics company Flurry
showed the average user in the US spends
22 minutes per day on mobile web and 2
hours and 42 minutes in-app. However,

www.mobilemarketingmagazine.com

while apps seem to dominate the mobile


web, it is important to remember that
utilities make up a large percentage of
time we spend in app for example the
top 10 apps downloaded last year included
iTunes Radio, Instagram, Google+ and
Facebook Messenger. Realistically, if brands
wish to effectively target their audiences
on multiple screens, then their video
advertising should be delivered both on
mobile web and in-app to ensure they can
reach their entire audience.
The issue then becomes how to find
premium video advertising placements both
on mobile web and in app.

SPONSORED FEATURE

COMMENT

Teads inRead format sits within text,


opens up when the user scrolls down,
and only plays when in-view

Instream video

Outstream formats

On mobile web, the problem is similar to


desktop. Video ads are mainly served using
instream video formats, which severely limit
the amount of premium inventory available;
or using standard banner formats, which
tend to be avoided by quality publishers as
they can appear invasive.
For in-app placements, the issue is
different. Here, video advertising mainly
takes the form of interstitials, where the user
clicks on a certain part of the page and the
video opens up in full screen. The problem
here occurs because the vast majority of apps
using these formats are gaming apps and
the video views are often incentivised. For
example, the user is told they will gain extra
coins or lives if they watch a video. While this
method is fine for some brands, the gaming
environment is not appropriate for many
brands with a high-end or luxury image.
So how can brands capitalise on
mobile video advertising without the risk
of being placed within non-premium
environments or primarily within gaming
apps? The answer lies with the formats
used to deliver the advertising. Premium
mobile sites and apps simply do not have
enough inventory to meet demand if only
instream video formats are used, and as a
result, distributors turn to mobile gaming
apps. The solution is to grow the amount
of inventory available on premium mobile
sites and apps so that the supply of video
advertising can meet demand.

In fact there is a simple way to make this


a reality. Rather than relying on instream
formats (which quickly run out of premium
inventory) and then dropping down to tier
two or three publishers or gaming apps, look
to different distribution methods. Outstream

OUTSTREAM
VIDEO ADVERTISING
FORMATS ENABLE
HIGH-END BRANDS
TO EMBRACE VIDEO
ADVERTISING ON
SMARTPHONES
AND TABLETS,
REASSURED THAT
THEIR BRAND WILL
NOT BE THROWN
INTO QUESTIONABLE
ENVIRONMENTS

formats place video advertising outside the


video stream, instead placing it within the
heart of content, such as quality editorial.
This enables truly premium quality
publishers to open up their mobile apps
and sites to video advertising, dramatically
expanding the amount of inventory
they can offer brands, while earning
incremental revenues.
These formats are typically popular with
providers of professional content, as they
fully complement the editorial experience.
For example, Teads inRead format sits within
text, opening up when the user scrolls down
the page, playing only when in-view and
seamlessly disappearing back into the page
when the view is completed, or the user skips
the ad. As users are never forced to watch
the video advertising, the formats are seen
as non-intrusive and uphold the premium
nature of the publishers site to the benefit
of high-end brands.
By opening up huge quantities of
premium mobile video inventory, these
outstream video advertising formats
enable high-end brands to embrace video
advertising on smartphones and tablets,
reassured that their brand will not be thrown
into questionable environments and instead
be carefully positioned within content that is
truly premium.
There is such a thing as premium
video advertising inventory on mobile, the
challenge is knowing exactly how and where
to find it. MM

@mmmagtweets

35

ANALYSIS

MARCH 2015

Reality Bites
Tim Maytom considers the resurgence in interest in augmented and
virtual reality and looks at the tech vying for consumers attention
ithin the space of one week in
January, Google shuffled its
Glass project out of the spotlight,
retiring the current model with no hint of
when a replacement would materialise,
while Microsoft added some dazzle to its
Windows 10 announcement by unveiling
the HoloLens. With so many major
manufacturers now working on headsets
for virtual reality, augmented reality and
every other kind of reality you could ask
for, has its time finally come?

HoloLens
VR headsets have been in existence for over
50 years, and while weve come a long way
from the first devices, which were so heavy

they had to be hung from the ceiling,


the technology has never truly broken
through. Microsofts HoloLens, a mixed
reality headset that projects holographic
imagery over your surroundings, aims to
break that trend.
Using the holographic display, the device
aims to blur virtual reality, augmented reality
and the physical world in new ways, laying
3D graphics over real world objects. The
HoloLens certainly made for an impressive
presentation, but for the moment, weve
had very little in the way of concrete

36

details about what we can expect from the


Microsoft headset.
The presentation at Microsofts Windows
10 launch split its time between consumer
applications for the device (such as
holographic TV screens, Skype video chats
and games that transform living rooms
into Minecraft landscapes), and enterprise
solutions. The ability to model objects in
holographic form before sending them to a
3D printer was one of the most impressive
applications in the latter camp.
However, much of the presentation was
made up of pre-rendered videos about how
transformative the technology would be,
rather than any real insight into when we
can expect to see it released, or how it will

of the public. For now, the critical consensus


seems to echo the reception received by
another of Microsofts ground-breaking
technologies: the Kinect. While the
HoloLens may prove extremely useful
in research, technical and enterprise

AR AND VR HEADSETS
ARE ALL ABOUT
GETTING RID OF
THE LAST BIT OF
DISTANCE BETWEEN
THE PHYSICAL AND
DIGITAL WORLDS

Our very own Alex Spencer tests the Oculus Rift (left),
while Microsofts HoloLens (above) shows off its
mixed reality environments

work with existing hardware and software.


One of the few solid details we did get
was that NASA has been collaborating
with Microsoft during HoloLens two-year
development period and will be using it
this summer to control rovers on Mars,
which at least sells the technologys
space-age concept.
Well have to wait for Microsofts
developer conference, Build, at the end
of April to find out more, and potentially
get the first reports on what its like to
experience the HoloLens from members

www.mobilemarketingmagazine.com

Will Magic Leap be the technology that takes VR into toys?

environments, its unlikely that the


technology will transform the life of the
average consumer.

Oculus Rift
While Microsoft is just entering the headset
market, Facebook-owned Oculus has
been operating there since 2012, when the
prototype of its Rift VR headset was unveiled
at E3. At CES 2015 at the start of this year, the
company unveiled the latest iteration of its
Rift device the Crescent Bay and outlined
its plans for the immediate future.

MARCH 2015

ANALYSIS

Microsofts HoloLens (right) places virtual content over your view of the world (above)

The latest Oculus software adds


spatial 3D audio to the mix, enabling
users to pinpoint sounds above, below
and around them in full 3D, amplifying
the experience. The Crescent Bay also
improves the head-tracking capability,
supposedly eliminating the lag that
plagued earlier models and invoked

company has been pushing forward


in the entertainment world, having
recently opened a virtual reality film
studio with a slate of short interactive
films planned, it remains to be seen if a
consumer model will be anything more than
an expensive gadget for wealthy tech-heads.

Magic Leap

Magic Leap promises much in the realm of education

feelings of nausea among some users.


Oculus has hinted that it hopes to
have a consumer model ready this year,
but isnt making any promises, and at the
moment the use cases for the Rift are thin
on the ground. So far, the company has
concentrated on a VR display, with little
integration of input technology beyond
what a standard computer provides. Most
of the consumer software designed using
its SDK has followed suit, focusing on
virtual reality experiences with only
limited support for games.
Enterprise applications have largely
been limited to virtual test drives and
similar small-scale promotions, begging the
question: who is the Rift aimed at? While the

Google Glass was certainly the most markettested of the AR headsets on the market, but
with the Explorer program ended and Glass
placed under the control of Nest CEO Tony
Fadell while it undergoes its nebulous next
stage of development, where does that leave
Google in this market?
The answer may not come from its Glass
team, but from an independent startup it
has been supporting. Last October, Google
was among the lead investors in a $542m
(361m) round of funding for Magic Leap,
a virtual and augmented reality company.
Sundar Pichai, senior vice president of
Android, Chrome and apps at Google joined
the firms board of directors and there were
rumours that the investment came after a
failed acquisition bid by Google.
Recent patent applications by Magic
Leap have hinted at the direction the
company is taking, and it seems as though
Google may be developing the company
into the natural successor to Google
Glass. Magic Leap is apparently working
on a headset that would project directly
onto the users retina, enabling it to fill
entire rooms with digital images and

accommodating a wealth of applications,


similar to the HoloLens.
Control would be achieved through a
number of physical objects used as totems
by the headset. For example, a menu could
be controlled with a charm necklace, with
each charm associated with a particular app,
or a six-sided die where each face triggered
a different program. The patent applications
even looked into marketing opportunities,
with cereal mascots leaping from shelves to
compete for your attention as you shopped.

Embracing AR
While the technology behind all three
of these systems is incredible, there will
no doubt be a long teething period between
the concepts weve seen and the arrival
of polished, consumer-ready hardware.
But perhaps the more important question
to consider is whether or not the public
will ever truly embrace augmented and
virtual reality.
AR and VR headsets are all about getting
rid of the last bit of distance between the
physical and digital worlds. Perhaps the
lesson learned from the poor reception for
Google Glass, and VRs 50 years hoping for
mainstream acceptance, is that we simply
dont want technology to become that
integrated into our lives. MM

@mmmagtweets

37

ANALYSIS

MARCH 2015

The Sales Machine


Simartis CEO Razvan Ionescu explains how mobile network operators
can massively improve the performance of their marketing campaigns
using its Bubble platform
ccording to Ericsson, the number
of mobile subscriptions is set to
exceed the global population this
year. You might expect that MNOs (Mobile
Network Operators) would be perfectly
placed to benefit from this state of affairs.
After all, they provide the vital foundations
that facilitate almost every action people
carry out on their smartphones, and they
sit on a wealth of valuable data about their
subscribers. Despite all this, though, many
operators lag behind when it comes to
communicating effectively and successfully
with their own customers.
The MNOs have invested in
understanding what customers are doing,
what their buying power is, and even in
predicting when they will be ready to buy,

38

says Razvan Ionescu, CEO of Simartis,


a Romanian telecom company working
directly with operators to enable them to
target their customers more effectively. This
data is a gold mine that the MNOs are keen
to fully harvest.
Ionescu says that MNOs are already able
to analyse and segment their customer
base in order to make their products and
services relevant to customers. They already
have the capacity to make offers that fit
the customers needs, he says. The real
challenge, however, is to deliver the offers
at the right time when the customer has
the phone in their hands and is ready to
respond to them.
This is where Simartis mobile messaging
platform, Bubble, comes in. Bubble enables

www.mobilemarketingmagazine.com

the MNO to provide the right offer, at the


exact moment in time when the customer
is most likely to say YES with one click,
says Ionescu.

Real time, right time


Bubble sidesteps the inbox and sends the
MNOs offers directly to the screens of
their customers mobile devices, giving the
operators total control over the channel.
Even more importantly, it adds the ability
to deliver offers in real time, with the
knowledge that the recipient currently has
the phone in their hands, and is ready to
respond to the offer.
How is this achieved? Its down to the
fact that Bubble messages can be targeted
based on event triggers, such as when a

SPONSORED FEATURE

call is completed or the handset connects


to a network, complementing networkgenerated events that are related to the
customers lifetime. Examples include
when the customer drops below a certain
pre-pay balance threshold, or approaches
the end of their contract, both of which are
events typically used by MNOs to target
their customers. Usually the MNO reaches
out through the more traditional (and less
efficient) channel of SMS.

Even if an MNO has a lot of data on


its subscribers, it doesnt necessarily have
a clear view of the actual context of the
customer, says Ionescu. The operator does
not know if the customer has his device with
him at the moment when the SMS is sent,
or if he looks at the phones screen when the
message arrives. With Bubbles event triggers,
you can see that the customer has just used
their phone, and the offer you send can be
linked to whatever action theyve just taken.
These triggers can be combined with
customer insights, in order to create truly
contextually-relevant campaigns. For
example, if a customer makes an international
call, a special offer for an international
minutes bundle can be displayed on the
customers screen immediately after the call is
ended. Alternatively, if a customer places their
SIM card into a new handset indicating that
they have upgraded their device or perhaps
that the previous device has been broken or
lost they can be targeted with an offer for
phone insurance.
Bubble also complements real-time,
network event-generating engines, says

ANALYSIS

Ionescu. Although some of these


events can be tracked at the network
level, Bubble offers can be truly realtime rather than near-real-time, as
they are triggered by the individual
SIM card.

100 per cent improvement


The most common method that
MNOs currently use to reach their
customers, Ionescu argues, simply
isnt up to the task.
MNOs use a variety of channels
for their cross-sell, up-sell and
retention campaigns. Mostly, due
its low cost, they use SMS,
he says. Unfortunately, the
channel is also being used
by a large number of third parties,
many of whom do not pay as much
attention to the relevance and
timing of their offers. As a result,
consumers have started to perceive
SMS marketing messages as spam
and ignore them.
The conversion rates for SMS
campaigns used to sell services are in
decline. The need for another low-cost
sales channel, which is under the sole
control of the MNOs, is undeniable.
Bubble gives MNOs the chance to start
afresh with an entirely new channel that has
no spam connotations.
The technology we use makes it
impossible for somebody outside of the
operator to send a Bubble message without
the operator controlling it. Unlike SMS,
its not possible to generate random
numbers and just send out messages.
Bubble is entirely in the hands
of MNOs, and the channel will
never get a reputation for being
spammy, since the offer
is displayed in a relevant
context for the user.
Based on a number
of previous campaigns,
Simartis claims that MNOs
moving from SMS to Bubble
can expect an increase in
conversion rates of at least 100
per cent. The results can be seen
in a three-week POC, and it only
takes few more weeks for
full implementation.
Whether MNOs have invested
in powerful analytical and Campaign

Management Systems or are still using the


most basic tools, they still face the same
bottleneck, which is the channel of delivery
to customers, says Ionescu.
The Bubble offering, he says, can adapt
to both of these cases. If operators require a
CMS (Campaign Management System) they
can use Bubbles own, while for the more
advanced operators, the solution works
alongside their existing systems.
As an operator, you can invest a lot
rightfully so in analytical capabilities and
CMS, Ionescu says. By adding Bubble, you
can complement those systems and give a lot
more value to that investment. This is one of
the main strengths of the Bubble platform.

Razvan Ionescu, CEO,


has 18 years experience
in the Telco industry

@mmmagtweets

39

ANALYSIS

MARCH 2015

AN EXPERIENCED TEAM
One key factor in the design of the Bubble solution is the
fact that the company behind it, Simartis, was founded by
experts who had worked in the marketing departments of
a variety of major MNOs, including Orange, Vodafone and
Deutsche Telekom. So they have first-hand experience of
the trials and tribulations faced by operators.
This experience is embedded in the DNA of the
company. And that has only been enriched over time,
as we have gained more staff, says Ionescu. The MNO
experience within the company has enabled us to design
Bubble with the issues that MNOs face in mind. All of our
products are moulded in that spirit.

Alex Voiculescu
Partner, founder

Martin Kammer
Advisor to the
board

Ruediger Strack
Advisor to the
board

Moldcell
Moldova

Bubble enables Moldcell to increase


the efficiency of its outbound up-sell,
cross-sell and loyalty campaigns via the Bubble
real-time, event-based interactive messaging
platform, with more than 100 per cent improvement
in response rates compared to traditional channels.
Moldcell aims to position Bubble also over current
third party SMS communications and advertorials to
improve responsiveness and equally enhance the
trust of its customers with this advertising tool.

Daniel Lynch
Member of the
board

Olga Pavlic, strategic adjacencies and


customer channels director, Moldcell,
part of the Telia Sonera Group

One operator that has seen this first


hand is the Moldovan MNO Moldcell,
part of the Telia Sonera Group, which has
enjoyed such success with Bubble that it is
currently switching all of its third-party SMS
communications over to the platform.

Third-party advertisers

Vlad Orghidan
CTO; 15 years of
Telco and IT&C
experience

Raluca Cristurean
Head of customer
value management
Consultancy
Division; 16 years
of Telco experience

40

Iulian Topliceanu
Head of operations,
maintenance and
support; 14 years
of Telco and IT&C
experience

Iris Constantinescu
Sales director;
20 years of IT&C
experience

Cristian Chiru
Customer value
management
expert; 11 years of
Telco experience

Silvia Bogatu
Account manager;
15 years of Telco
experience

www.mobilemarketingmagazine.com

Ram Ramamoorthy
APAC business
development & sales
director; 28 years of
IT&C experience

Andrew Pope
Business
development &
area sales director;
10 years of Telco
experience

Its not just MNOs themselves who stand to


benefit from Bubble. Third-party advertisers
can also work with operators to reach their
subscribers in the same way the messages
can be used to deliver everything from
mobile coupons and tickets to polls and
text-to-win competitions.
For third parties, the major advantage of
Bubble is that the messages are immediately
actionable, says Ionescu. You are asking
the customer something and, unlike SMS,
which is normally a one-way channel, they
have to answer.
By presenting recipients with the choice
to accept or reject the offer, each Bubble
message is directly actionable, and remains
visible on the device until the customer has
responded, either positively or negatively.
These third-party messages also
represent another way of bolstering
revenues for MNOs, while keeping the
method of delivery under their control,
so both the MNO and the advertiser stand
to gain significantly, while the customer
benefits from relevant, targeted offers. MM

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SPONSORED FEATURE

INTERVIEW

Location, Location, Location


David Murphy talks to Theo Theodorou, EMEA GM for xAd, about how location
technology is bridging the gap between the physical and digital worlds
Ad knows its place. And so it
should: the company specialises in
listening, vetting and filtering realtime mobile inventory to deliver the most
accurate location data possible to ensure
that ads reach audiences exactly where
they are intended, whether at the country,
region or city level or even as granular as the
vicinity of a specific building.
As a global company, we have been able
to work with some of the biggest brands in
the world including Westfield, Starbucks,
and Wal-Mart owned Asda among many
others covering multiple sectors like auto,
tech and fashion that have been leveraging
location data, says xAd EMEA GM, Theo
Theodorou. To date, our global scale has
surpassed even our own expectations,
with our platform reaching 300m unique
devices, 300bn available ad impressions,
over 30,000 mobile applications and close
to 1m advertisers each month.

store visitation through a combination of


proximity and audience targeting, creating
positive brand awareness and footfall.

Accuracy, precision and scale


One of the key drivers behind these sorts
of figures, says Theodorou, is the attention
given to ensuring the accuracy of the
location data.
Its important to note that not all
location data is created equal, he says.
Our main USP is our technology and the
fact that we vet and filter out up to 70 per
cent of available inventory, so brands that
require precise location are left with a set
of data that is 100 per cent verified.
We invest in our technology and are
constantly evolving our product suite. One
of the most exciting announcements we

will make in Europe this year is the launch


of Footprints. Footprints is due to be a
game changer in our industry as it is the
first visualisation of real-time location data
that allows users to view mobile visitation
behaviours as they happen. Brands will
now be able to see in real time what
is happening, not only in their stores
but also at their competitors. This is
going to revolutionise the way that they
are able to engage with customer and
prospects. Visibility is a powerful tool.
With Footprints, weve harnessed that
power and put it in the hands of brand
marketers for the first time. MM
For more on xAd and Footprints pass by their
stand at MWC for live & private demos inhall
8.1 (App Planet), Booth #8.1I51

Seeing Is Believing

Hot space
Location is a hot space right now, as brands
realise that a mobile users location history
offers valuable insights into the types of
things they might be interested in.
Mobile location technology is gaining
momentum in Europe, and its only a
question of time before it becomes a key
part of the media mix, says Theodorou.
The European market is very advanced and
hungry for the latest and greatest in digital,
which places us in an ideal environment that
is receptive to our technology.
Recent xAd campaigns in Europe include
work for Starbucks and Asda, where the
company generated over 60 per cent lift in

xAd Footprints showing a realtime visualisation of store visits

@mmmagtweets

43

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SPONSORED FEATURE

COMMENT

Making
sense
of the multi-device world
Netbiscuits CEO Daniel Weisbeck says brands must tailor their content
to the many devices consumers use and the various ways they engage
n the beginning was the web,
which you accessed, in almost
every instance, on a PC. And then
came mobile, which presented brands with
a problem: how to display their web content
on something with a much smaller screen
and often much poorer connectivity.
Some responded by doing nothing,
leaving users to pinch and zoom their
way around a full website on their mobile
phone. Which, no matter how smart the
smartphone, was never a good experience.
Others built dedicated mobile versions
of their websites, offering users a better
experience, but one which often compared
badly to the full website in terms of
interactivity and engagement. And others
went down the responsive or adaptive route,
amending the content of the site on the fly,
depending on the form factor of the device
it was being viewed on.

identify trends. For example, if you know the


top six devices and form factors that your
customers use to access your online content,
you can start optimising for those devices.
Dont just blindly optimise for the biggestselling devices, because they may not even
figure in your usage stats.

Silver bullet
But while responsive design looked like a
silver bullet for a while, its clear now that
this is only a solution if brands are asking
themselves how best to use it. How do
you present online content in the most
appropriate, engaging manner, based
on the form factor of the device as well
as contextual factors such as location,
connection quality, and the time of day?
Its clear that the content a mobile user
wants when browsing on a poor connection
in the morning, in a session lasting barely a
minute, is different to what the same user
will expect when browsing on a tablet in the
evening sat at home on a fibre broadband
wi-fi connection.
And as the number of devices on which
consumers can engage with you continues

From cross-device to each device

THE KEY TO CRACKING


THIS PROBLEM, OF
COURSE, IS ANALYTICS
to proliferate, taking in wearables, cars,
appliances and everything else covered by the
Internet of Everything, the issue is becoming
more pressing with each passing day.

Getting analytical
The key to cracking this problem, of course,
is analytics. There are a number of analytics
solutions that can deliver reams of data on
your users, but most fail on big datas biggest
challenge visualisation and interpretation.
To make sense of big data, brands need
it presented in such a way that makes it easy
to see what sort of connection users are
on. Which devices have the biggest bounce
rates? Who spent the longest time on the
site and who spent the most money two
questions that often have different answers.
With access to this kind of data, presented
in a way that makes it easy to interpret, you
can start to make sense of the numbers, and

Theres a lot of hype right now surrounding


cross-device attribution being able to
track the same user accessing your content
across different devices. No one has solved
this problem yet, but the fact is that its less
important than the real issue serving the
right content to that user depending on
the device theyre on. No matter how good
your ability to track them cross-device is, if
the experience on each device is a bad one,
youll lose them anyway.
Get it right, however, and the potential
upside is enormous. In research conducted
by The Peoples Web, 79 per cent of web
users said they would be prepared to
share personal information with brands
if the context was right and the brand was
delivering an optimal experience. And as
we move into the era of the personal cloud,
with individual consumers accumulating
reams of data as they interact with phones,
tablets, phablets, watches, fridges, cars,
thermostats et al, the brands that win out
will be those that can convince consumers
to share this data with them. And the brands
that can optimise content for each of the
consumers devices are best placed to win
this battle. Theres no time to lose. MM
For more information on Netbiscuits
analytics and device-detection solutions,visit
www.netbiscuits.com/mobile-analytics

www.mobilemarketingmagazine.com

45

SPONSORED FEATURE

INTERVIEW

Platform Play
We talk to Jon Hook, VP, advertising evangelist at Phunware
heres a tendency in mobile for
companies to opt for point solutions:
to work with one company to build
an app, another for advertising, another still
for location-based services. Its a strategy thats
rarely popular with the IT or procurement
department, requiring the integration of
multiple SDKs and logins, and one that also
rarely delivers the most effective results for the
company concerned.
Phunware set out to address this issue
when it started work on its Multiscreen as
a Service (MaaS) platform six years ago.
The idea was to build an all-embracing
horizontal stack composed of best-ofbreed individual components that perform
brilliantly in isolation, but that add up to
more than the sum of their parts when
used in conjunction with each other.
Having built the platform, Phunware has
spent the last couple of years completing
the jigsaw with the acquisition of several
companies. These include Simplikate and
Digby in the location space; TapIt, a supplyside platform for mobile advertising; and
most recently, Odyssey Mobile Interaction,
which specialises in delivering highimpact premium mobile advertising. The
advertising acquisitions enable Phunware
to offer brands, agencies and publishers a
suite of vertical advertising solutions that
leverages the capabilities and insights from
SDKs like content management, push,
analytics, and location marketing to target
audiences across mobile.

Single customer view


When asked why he gave up his role as
head of mobile for a network agency to
join a software startup, Phunwares VP,
advertising evangelist Jon Hook says it wasnt
a giant leap into the unknown. I had been
looking for a single platform that would give
companies a real-time, single customer view
on mobile. I looked around and the players
redefining mobile were the software and

technology giants like Google and Facebook,


not media companies, he says. Hook sees
the joining of two worlds as the secret to
Phunwares success. Being a combination
of an enterprise software company and an
advertising business enables us to target,
acquire and engage with an audience
anytime, anywhere, and in the most
appropriate manner.

Engineering-led heritage
Given Phunwares robust, engineering-led
heritage, its perhaps not surprising that it
takes a thoughtful, consultative approach
to its business activities.
Were not out to sell apps, or ads, or
location, says Hook. Its more a case of
working with a business to discover what
issues or challenges it has, and then looking
at how our technology can help to solve
those problems.
WWE is a case in point. The
entertainment behemoth wanted to
discover whether it could move fans
around in an arena in a way that enhanced
their experience, said Joe Lalley, WWEs
vice president of digital products and
operations. The availability of new mobile
technologies enabled us to do that, and it
helped us manage the flow of crowds, which
is important in terms of delivering a great
fan experience, he says.
At WrestleMania 30, Phunware used a
combination of iBeacons, notifications and
its mobile content management system to
provide fans a bevy of benefits: directions
to their seats, alerts about autograph
signings, instant replays of live action, and
the ability to order food from their seats.
The event saw some 170,000 user-initiated
actions from 8,000 unique devices. While
many businesses question the viability of
iBeacons, WWE and Phunware deployed
44 iBeacon campaigns throughout
WrestleMania 30 that delivered an average
30 per cent click-through rate.

Phunwares platform is also widely


deployed by retailers to drive footfall,
and by hospitals and medical centres,
saving hundreds of thousands of pounds
by reducing the number of missed
appointments via mobile patient solutions.

Platform integrity
One of the reasons Phunware campaigns
work so well, says Hook, is the integrity
of the platform. Our location tech is
independently proven to be more accurate
than Apples or Googles, and far more
accurate than location data being pulled via
the advertising exchanges, he says. We can
also do location and geo-fencing at scale,
which means we can keep the geo-fences
as tight as they need to be and still get the
numbers the campaign needs, without
targeting people who are too far from the
store to respond.
This idea of integrity is a recurring theme
in the Phunware story. Im not sure how
you can advise a company on how they
need to re-architect their infrastructure
if theyve never built this stuff. How do
you know the use cases, feature sets and
requirements of what the infrastructure has
to do? Thats why the Fortune 5000 trusts
us with their mobile and go-to-market
strategy, says Hook. MM

@mmmagtweets

47

The mobile communications revolution is driving the world's major technology breakthroughs. From wearable devices
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AN EVENT OF

SPONSORED FEATURE

COMMENT

The candidate is king


Marketers with the right mobile and digital skills are in demand in
2015, says Digital Gurus Matt Hawkes

fter so many years of hype, 2014


was unquestionably the year in
which mobile was accepted into
the mainstream, following a perfect storm
of utility, adoption, improved experience,
measurability and some amazing success
stories. All have helpedbuild a trust and
credibility that is catalysing a global
transformation on many fronts.
As a long-term champion of the space,
I have seen many innovators utilise the
unique capabilities of mobile, but only
recently have the results been so successful
and game-changing. Indeed, I think the
lessons have now been learned, and

a 95 per cent increase in video posts in the


last 12 months. This widespread uptake
provides a real opportunity for marketers.
Were seeing agencies building teams
around mobile and paid social, whilst video
experience is becoming more and more
prevalent in job specifications.

will herald a mobile age of enlightenment,


where acceptance paves the way for
refinement, more evolution and even
more breakthroughs.

Emerging technology
Mobile and digital is a key pillar of whats
hot in emerging technology. At ground
level it is evolving rapidly, so much so it
is completely changing behaviours and
the way we interact.My mobile device,
for example, has become a conduit for
the many new and popular ways we can
now communicate, including Facebook,
Instagram, Snapchat, WhatsApp, Twitter,

THE LESSONS HAVE BEEN LEARNED, AND


TODAY MOBILE IS BEING USED MUCH MORE
STRATEGICALLY BY BRANDS
today mobile is being used much more
strategically by brands.
At Digital Gurus, we have 75 consultants
internationally, working across sales,
marketing technology and creative. Mobile
now impacts on all of our teams. As a group,
we love what were seeing and we predict
another huge year for the industry.
At the top of the foodchain, Apple has
just reported its most profitable period
ever, while the mobile-first taxi app Uber
is exploding internationally (despite its PR
nightmares). There are countless other startups with great ideas and ambitions be the
next big thing. Perhaps the next 12 months

Internet of things devices such as Nest are set for a big year

and many other games and apps, not


to mention email, SMS (and of course
telephone calls).
Our clients think that mobile advertising
will build on the trends seen in 2014. Last
year, programmatic and video went off the
chart. This year will see even bigger gains by
the players that can better engage targeted
audiences at scale. The most exciting
companies are those that are able to use
contextual relevance and data to leverage
localised information, personalise an
engagement or even make it interactive.
Another interesting trend is the rapid rise
of social video. Facebook recently reported

The internet of things is another area in


which we expect more growth. Society is
moving towards a connected everything, all
potentially controlled by our smart devices
via sensors. The big brands in each market
are vying for control and investing heavily.
Were seeing more brands embrace digital
and mobile skills and this was the fastestgrowing sector for our business last year.
With so many exciting things happening
across a multitude of cool and cutting-edge
niches, there is fierce competition for those
with the best skills. There has been much
written about a so-called war for talent. This
may be true, but ultimately this benefits
the job-seeker as higher salaries, perks and
fringe benefits make up the battleground.
Above all, we say the candidate is king in
2015. Power to you! MM

www.mobilemarketingmagazine.com

49

COMMENT

MARCH 2015

BUCKLEY ON
LOCATION

More than a decade after its launch, Russell Buckley considers the
lessons learned from pioneering location-based marketing service ZagMe
years ago, I helped get a UK startup
off the ground that had ambitions
to conquer location-based
marketing. In hindsight, we were ludicrously
ahead of our time. The world is only now
catching up with our vision of the future.
That said, we had a lot of success at the
time, recruiting 85,000 consumers to the
service and running 1,500 campaigns for the
likes of Burger King, Reebok and TopShop.
Now that location seems to be a hot topic
again, heres a recap of what we learned.

15

Lesson 1: Location isnt always a


good proxy for context
Theres often an assumption that if you
know where someone is, you automatically
understand context. For example, if
someone is on Oxford Street and theyve
opted-in to receive marketing messages
from a shop (or shops) in that location,
we assume theyll be delighted to get them.
But thats not necessarily the case. While
the strict definition of spam is around
opt-in, its as much about how the recipient
feels when they get the message. If they feel
irritated for whatever reason, the marketer
has lost, even if the consumer has opted in
originally. That annoyance might translate
into a permanent opt-out.

Lesson 2: Scale is hard


Rightly or wrongly, marketing continues
to be about reach first, targeting second.
We start with a big number, and then apply
filtering such as demographic or location
data to arrive at a smaller audience which
still needs to be substantial to drive results.

50

However, location filtering is pretty


brutal in reducing the size of the audience.
As an example, there may be millions of
people in London interested in shopping
at TopShop. But if you apply filtering to
consumers in the vicinity of one outlet, who
have also opted into the service, the target
audience gets drastically reduced. If you
then apply a time-of-day criterion (today
at 1pm, for example), the potential millions
you started with often ends up being one or
two people. This audience wont justify the
time and money invested in the campaign.

Lesson 3: Staff training is vital


Location is often used as a variant of
performance marketing, as opposed
to simple branding. This needs the
involvement of shop staff. If the consumer
shows a coupon on their phone to redeem
a reward, the staff must be able to process it.
However, this proved very challenging
in our experience. Wed often visit a shop
before a campaign was broadcast to brief
the staff face-to-face (clearly not a scalable
option). Five minutes later, consumers
would start arriving, waving their mobiles
around, only to be faced with blank stares by
the very staff we had just briefed.
While the technology may have
improved in the last 15 years, training has
remained a real issue we cant just assume
that staff will know what to do.

Lesson 4: Dont pay consumers


to receive advertising
ZagMe had a loyalty aspect to the service,
where consumers would receive money for

www.mobilemarketingmagazine.com

every advertising message they received.


While this clearly made sense to me at
the time, Ive become adamant that this is
fundamentally the wrong approach. Many
others have subsequently tried a variant
of rewarding consumers, but none (to my
knowledge) has ever really succeeded at any
scale, and I remain skeptical of the model.
My argument is that if you have to pay
someone to be exposed to advertising, there
is an implicit suggestion that the message
itself doesnt have a value. This is the wrong
way of thinking consumers should want
to receive the message as it helps them in
some way. Indeed, a core test of whether a
marketer should send a message in the first
place is Will the recipient love this, or at the
very least, find it useful? If the answer is no,
then it shouldnt be sent.
There are other arguments I could use,
such as the fact that the amount they can
affordably be paid is generally derisory. And
that consumers interested in earning a few
pounds per month are probably not going
to be an attractive audience anyway.

Lesson 5: Exclusivity is key


The one way that we could guarantee
disappointing people was sending them
an offer that was available anyway in-store.
There was a sense of: Why did you bother
me with something that I would have seen
anyway?, and the shoppers had a point. MM
Those were the key lessons Ive learned,
but if youd like the whole story, you can
download my whitepaper at
www.mobilemarketingmagazine.com

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