A MOBILE MASTERCLASS

Who are CHANNEL MOBILE?

Mobile communication solutions provider based in Cape Town, South Africa. Specialise in developing mobile messaging applications and messaging software solutions for the South African market. Pioneered the use of SMS as a communication medium for South African SMEs and large corporate companies. First provider to launch a PC to mobile phone SMS solution for the South African automobile industry Primary SMS communication supplier for: Combined Motor Holdings (CMH) Hyundai SA Protea Hotels Galileo SA SAB Miller Sandown Motors Adcorp Human Communications Stanlib

Who are CHANNEL MOBILE?

Develop, service, maintain & support solutions for over 1000 businesses consisting of over 6000 individuals across 7 products & 3 SMS gateways. Offer turn-key and bespoke solutions for Application to Person (A2P) and Application to Application (A2A) software systems Core competencies lie across the bearer services of: SMS Bulk SMS Premium Rate SMS (short codes) USSD Surveys SMS URL MMS Mobile Websites

Intro
Mobile is a highly powerful and personal medium. There are twice as many mobile devices as TV sets, three times as many mobile subscribers as Internet users, and four times as many mobile phones as PCs Mobile advertising provides click-through rates ten times higher than traditional online advertising and the unique ability to effectively target a broad demographic of consumers. 53% have viewed an ad through their mobile phone

Source: AdMob Mobile Metrics Report Jan 2011

Mobile
Africa is the 4th largest mobile advertising market in the world South Africans are consuming mobile advertising and searching on the go
Worldwide Request by Region May 2010

Source: AdMob Mobile Metrics Report Jan 2011

Mobile Market in SA
In SA 92.8% of the population own a mobile phone Mobile Users with Internet Access: 11 million Users that currently access internet from mobile: 4.3 million 62% of Internet users access the Net (also) from their mobile 25% of mobile users CAN access the Internet from

their mobile
40% of Facebook users in SA access the site from a mobile phone Mxit with over 18 Million users is an excellent example of SA mobile penetration 90% of texts are opened within 3 minutes 35m branded please call me messages in 2010

Source: AdMob Mobile Metrics Report Jan 2011.

Mobile Market in SA
65% of all Google searches are on mobile devices over the weekend in SA 39% of South Africans & 27% of rural users are now browsing the internet on their phone Recognised as the 7th Mass Media Channel and dubbed as the First personal mass media channel (behind TV, Print, Radio, Outdoor, Internet, Cinema)

Mobile advertising is growing faster than social media

Mobile is local 1/3 mobile searches are local and 63% called the business straight away i.e. to book a table or order food etc

Computer literacy is low, mobile literacy is high Accessing the Internet from mobile handset is affordable

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

Mobile Market in SA

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

Airtime Purchases:
64% Spaza store
57% Supermarket/Grocer 24% Garage forecourt 20% Caf/Kiosk

19% Department Store

16% Other Retail Store

Source: Nielsen's Mobile Insights Study

Personal Mobile Phone Ownership

25,945,000, 76% have a Cell Phone, year on year growth +12%

Average # cell phones in home LSM 8-10 = 3 and LSM 5-7 = 2

6,138,000, 18% accessed internet in past 12 months year on year growth +41%

7,199,000, 21% have landline at home or work

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

Mobile Ownership: Weekly Activities

RANKED TOP TWO: - Please Call Me 68% - SMS 67% - Ranked 9th on the weekly cell phone activity hierarchy is browsing wap or web from their cell phone, 10% of adults
Source: Main Amps 2009AB, Adults aged 15+ owning a cell phone 25,945,000

Mobile Ownership: Weekly Activities

ACTIVITIES RANKED THIRD TO SIXTH: - Take Photos 27% - Play Games 24% - Listen to the Radio 20% - Use instant messaging MXIT 16%

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

Mobile Ownership: Weekly Activities Urban Youth

ACTIVITIES RANKED FIRST TO FORTH: - Send SMS 87% - Please Call Me 76% - Take Photos 48% - Play Games 42%

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

Mobile Ownership: Weekly Activities Urban Youth

ACTIVITIES RANKED FITH TO EIGHTH: - Use Instant Messaging MXIT 42% -Listen to Radio 36% - Download/listen to Music 32% - Browsed Wap/Web on Phone 28%

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

Urban Youth Coolest Media Choices From Generation Next Survey

88% Have a Mobile Phone

46% Have a Computer at Home

86% Read any Print Medium

99% Have a TV at Home

91% Have a Radio at Home

Source: AMPS 2010 AB AND SUNDAY Times Generation Next

How Many Subscribers Have Accessed the Internet in the Past Month

LSM 8-10 29% Social Media 25% Mobile Internet 2% VOIP Programs
Source: Nielsen's Mobile Insights Study

LSM 6-7 29% Social Media 25% Mobile Internet

LSM 1-5 15% Social Media 6% Mobile Internet

Handsets Broad Overview

Top of mind Currently Using Likely to Buy Next

60%
14% 3%

52%
25% 4%

56%
56% 3%

2%
6%

4%
7% 19%

Source: Nielsen's Mobile Insights Study

Top Handsets in SA

1.
2. 3. 4.

Nokia 5130 XpressMusic

Nokia 2700c Nokia 2330c Samsung GT-S5233a Star

5.
6. 7. 8.

Samsung SGH-E250
Nokia 5000d Nokia 7100s Nokia 2690

9.
10.

Samsung SGH-E250i
LG KS360

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

Smartphone Penetration

Smart-phones in SA are owned by 16% of the population. In SA there are more smartphone subscribers than DSTV subscribers By 2014 it is expected that 80% of the SA population will have a smart-phone.
Source: Mobile Marketing Mindblast 2011, Vodacom, MTN, Gartner Symposium on Innovation

Smartphone Penetration

By Mid 2011 MTN had 2.6 million smartphones on its network. Vodacom had 3.7 million with the Blackberry 8520 being the top seller.
But how do you define a Smartphone? By Handset or Mobile OS?
Source: Mobile Marketing Mindblast 2011, Vodacom, MTN, Gartner Symposium on Innovation

Smartphone Penetration
If the handset has a browser, is internet enabled & can pull email it is a Smartphone. So, the Nokia 2730 is a smartphone. If defined by Mobile OS then its iPhone, Blackberry, Android & Windows Mobile powered handsets. Does Symbian not still power South Africa and the African continent?

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

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

Rule of three phase

Each of these players needs to build a full vertical stack of products
Source: Peter Yared (Web Trends)

Mobile Touch Points

SMS

Applications/Mobile Web

PRSMS / short codes

Mobile Websites

Technology

SMS URL

QR Codes

Mobile Surveys

MMS USSD

SMS

Short Message Service (SMS)

What is it?

1 SMS is 160 characters

How does it Work?

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

Do Subscribers Prefer SMS Over Voice Calling? Female Male

44% prefer SMS 48% prefer voice calls 8% no preference Interesting Fact 69% of the men and women who prefer to SMS say it is because it is cheaper than calling.
Source: Nielsen's Mobile Insights Study

41% prefer SMS 49% prefer voice calls 10% no preference

10% firmly believe it is faster to text than call.

5% say their friends prefer when they text them. 84% of ads are viewed via SMS, with only 9% viewed via MMS

SMS

How do you plan a Campaign?

Identify type of Campaign:
Promotional Communication (Pull) Outbound Communication (Push) Customer Relationship Management (CRM) Business To Employee

Identify Objectives of the Campaign:

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

Determine the context and tone of the message

SMS Focus on
Relevancy Interactivity Incentivise

Make it engaging and interactive

Vote Polls

Content

Ensure Campaign Reliability and Reporting

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

SMS

Case Study
Protea Hotels:
Type of Campaign: Promotional Campaign Objective: Drive Sales Technology Used: Bulk SMS through Channel Mobiles HotelCom and Campaign Manager systems We had almost immediate results from the SMS broadcast within an hour or two we had already secured one booking and to date we have managed to sell 5 room nights with our Last Minute special. It is a great tool and will most definitely be using it again!

Guest data was mined and extracted. Personalized Bulk SMS sent to previous guests. Net result was an increase in booked room nights.
Turnover: Roughly 10 times their Ad Spend

Protea Testimonial:

Shannon Taylor, Marketing Plan Co-ordinator

Premium Rate SMS (Short Codes)

What is it?

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

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

Premium Rate SMS (Short Codes)

How does it work?

A short code can be dedicated or shared

Dedicated:

A unique number that belongs to one business only. For Example: Channel Mobile own 31941 All SMSs sent to 31941 are allocated to Channel Mobile

Shared:

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

For Example: Channel Mobile and JWT launch campaigns on 45529. Channel Mobile use the keyword apple and JWT use the keyword pear
All SMSs to apple are allocated to Channel Mobiles campaign All SMSs to pear are allocated to JWTs campaign

Premium Rate SMS (Short Codes)

How do you plan a Campaign?

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

Your Campaign Objectives determine the Short Code Mechanic:

Database building JWT launches a Premium Rate SMS competition for Smirnoff. Prizes communicated on all marketing material for the campaign with the call to action SMS the short code to Win. Consumer SMSs the short code. An automated reply is sent thanking them for making contact. The entry is logged in our database and exported to CSV for future mobile marketing campaigns.

Premium Rate SMS (Short Codes) Lead Generation

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

Create Brand Awareness

Information Delivery
Consumer SMSs the short code. An automated reply is sent with a link to a video Consumer SMSs the short code. An automated reply is sent with a link to a mobi site with additional information

Premium Rate SMS (Short Codes)

Ensure SMS is integrated to your clients existing marketing channels: Print Television Outdoor Web Email Point of Sale

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

Premium Rate SMS (Short Codes) Campaign Spin Off - Revenue Share:
The revenue generated by the SMS is shared between the Network Operator (Vodacom, MTN, Cell) and the WASP. In turn we pass on a majority of the revenue share we receive, back to our customers after the reply SMS (Mobile Terminating) message deductions. Note: CPA regulates the cost of entry to a promotional campaign to R1.50

Premium Rate SMS (Short Codes) Case study:

Client: Col Cacchio

Short Code: Dedicated R5 short code (before CPA changes) Objective: Opt In Database Building Future store promotion Increase Store Foot Traffic Customers could win a trip for 2 to Italy by sending a SMS to Col Cacchios dedicated short code. Promotion advertised in store with table talkers, in the bill and via word of mouth.

Mechanic:

Premium Rate SMS (Short Codes) Outcome:

Over 10 000 entries in under 3 months Over R30 000 in revenue share earned An extremely strong opt in database of Col Cacchio clients was built. Opt in list used for future Bulk SMS Campaigns to promote restaurant specials, CRM campaigns and to promote future short code competitions.

SMS URL

What is it?

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

How does it work?

Text message is originated within a SMS application (desktop, web based, database)

SMS URL

Why would you use it?

Allows you to deliver an array of content Graphics, Video, Audio Increases the interaction between your brand and your client Can be integrated to any current Bulk SMS or short code campaign that you are implementing for clients. Avoid handset compatibility & display issues of MMS Pricing

SMS URL

How do you plan a Campaign?

Identify type of Campaign:
Promotional Communication (Pull)

Outbound Communication (Push)

Customer Relationship Management (CRM) Business To Employee

Identify Objectives of the Campaign:

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

SMS URL Focus On:

Relevancy Interactivity

Make it engaging and interactive:

The URL can link to hosted content that plays directly on the handset branded video. Creates a viral element. Incentivise the consumer to share. Ensure Campaign Reliability and Reporting Follow the Dos and Don'ts of any mobile campaign

SMS URL Case study:

Client: Objective: Mechanic: Direct Axis Reduce client debt collection period A WAP Push Messaging campaign was coupled with the development of a Mobisite. Customers received a SMS with a URL. When clicked, the URL directed the client to a Direct Axis branded Mobisite pre populated with the clients information and their outstanding loan amount. Clients could perform a 3D secure credit card transaction on the Mobisite or request a change on their debit order date.

Outcome:

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

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

What is it?

Survey questions can take the form of: Rating scales True False Multiple choice Open ended

How does it work?

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

Mobile Surveys
Feedback

Why would you use it?

Profiling/Segmentation Insight

Send A SMS

How do you implement it?

Publish a short code Publish the URL Cross promote on other campaigns

Mobile Surveys Case study:

Client: Mechanic: The Heavy Chef Project WAP Push Message sent to all event attendees linking to a Heavy Chef branded Mobile Survey. Guests stood the chance of winning a case of Corona or Backsberg wine in return for completing the survey. 92 messages sent 37 surveys completed 40% response rate Heavy Chef team were able to collate additional info on their guests Plus, identify new talk topics for future events crowdsourcing.

Outcome:

USSD

What is it?

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

How does it work?

USSD will allow a consumer to request information in numeric sequence (starting with * and ending with #), or menus via their mobile phone. Therefore allows the brand owner to display menus on a mobile phone, enabling customers to interact with these menus. The user is billed on a time principal instead of per transaction.

USSD
Menu navigation can be displayed on a large variety of handsets Mass Usage Low cost Real time Interactive navigation Easy to use

Why would you use it?

You can provide brands with: Menu based information services Location based content services Surveys Feedback, Voting & Poll services Deliver prepaid airtime CRM Please call me

Limitations:

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

USSD Case study:

Client: Objective: South African Retailer Verify existing customer information Establish consumer regions & retail preference

Mechanic:
Outcome:

5 questions asked in a USSD survey covering consumer info, store preference & region
Database size: 75 000 Completed surveys: Between 8% & 10% Opt Outs: Between 1% & 2%

MMS

What is it?

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

Why would you Use it?

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

Limitations:

Handset Compatibility & Configuration Display issues Mobile Network support Reliability Cost

MMS Case study:

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

The MMS message had a personalized customer greeting and recommended a specific tire.
Price of the tire, lists of dealerships in the area, picture and description of the tire were all included in the MMS. Outcome: MMS Sent to 1200 customers 30% conversion rate achieved

QR Codes

What is it?

2 dimensional bar code Also called sema codes

How does it work?

Why would you use it?

Unique communication method Embed a URL into a 2 dimensional bar code. Consumer takes a photo of the image, the reader interprets the URL and connects the phone to the URL. Direct link between advertising material and Mobile Websites and Mobile Surveys. Easy call to action

QR Codes Create Immediate Satisfaction:

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

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

South African Barriers:

Experienced high adoption rate in Asia as handsets pre installed with required software Are SA consumer educated enough to adopt the service? If advertised across a clients marketing channels will consumers use the medium?

QR Codes Case study:

Client: Objective: PFLAG (Parents, Families & Friends of Lesbians and Gays) Collect inspirational testimonials from the lesbian, gay, bisexual and transgender community sharing stories that convey the importance of having a supportive community. QR Codes were placed in print ads, in-store displays and outdoor QR code extended the conversation that began in print. Gives a voice to voiceless media

Mechanic: Outcome:

Source: Nielsen's Mobile Insights Study

Mobile Websites Facts:

12 million people on the mobile web and 6 million on desktop web. Only 2 million cross over. 65% of all Google searches are on mobile devices over weekends in SA LSM 6 is the heaviest user, followed by LSM 5 Based on the above and the number of mobile phone subscribers in SA,

mobile is probably the biggest channel available for brands to market their
products, whilst being the most direct and cost effective. A Mobile Website should be an integral part of a companies marketing strategy.

Mobile Websites Considerations:

Dont scale down the clients website build for mobile. Less is more with mobile site design, but less is not more when it comes to functionality.

Focus on user experience design but relate that to technical functionality of the site.
Consider Connections Speeds and Data Costs. Prepaid usage is large, only deliver the required content Serve up the correctly optimized (size) site per handset Content VS Context: Determine the context then create the content for the site

Mobile Websites What are the Objectives of the site?

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

Good Examples:
wrewards.mobi m.iol.co.za Ewn.mobi Timeslive.mobi

Mobile Web VS Applications Debate Who is the target market?

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

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

Do you need the power of an app to serve your clients content? What level of uptake do you require?
Most downloaded app in SA was for Ster Kinekor (roughly 350 000 downloads) wide LSM group, captive market, much needed application. Compared to international market - Over 300K apps in iPad/iPhone app store with 100-150 iPad apps having reached over a million downloads since launch. Is this the best approach or will you see better uptake and usage of a mobile website which is accessible to all? Dont build an app for apps sake Can you service the consumer with a mobile website?

Campaign Strategy Research your market:

Gain as much market understanding as possible to ensure that your approach is correct. Having a great strategy is crucial to success in the ever-shifting landscape that is mobile today. Yet, a recent Forrester study revealed that of the most experienced brands in mobile marketing dont.

Identify Objectives of the Campaign:

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

Campaign Strategy Identify type of campaign:

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

Identify the best technology to be used:

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

What is the best medium for your campaign?

Campaign Strategy

Where does your target market congregate?

What technology do they use/can they afford to us?

What will have the best reach?

How do you integrate technology in a campaign to cross promote & cross pollinate between them?

Determine the context Define the tone of your message Focus on:
Relevancy Interactivity Incentivise

Campaign Strategy Make it engaging and interactive:

Vote Polls Content Incentives

Choose the correct supplier:

Use a certified WASP with a track record Double check their technology and abilities Data management & reporting Can you measure your results? (Delivery reports)

Campaign Strategy Double check The Dos & Don'ts of a Campaign:

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

Look to Case Studys for proven Campaigns

Reporting/Management Hot Button Topic! Mobile Measurement

Mobiles ability to become a mainstream marketing channel was tied directly to marketers, agencies and brands ability to successfully measure and demonstrate ROI. That measuring marketing success particularly mobile marketing is a challenge isnt exactly headline news. However, a recent King Fish Media study published by eMarketer revealed that 63% of mobile marketers are either not even trying to measure return on investment on mobile campaigns, or worse, dont know.

Still not sure about Mobile?

Direct Immediate Responsive

Always On
Cost Effective Used to Acquire, Re-activate, Up Sell & Cross Sell customers.

Mobile is an interactive response channel:

Integrate mobile with traditional media to create direct marketing and CRM channels Use it as a platform to build a community around a brand

Contact Us Contact:
Telephone: 087 351 5225 Helpdesk: 0860 104 671 Website: www.channelmobile.co.za Email: support@channelmobile.co.za SMS INFO to 33369 and we will contact you

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