Visa Invests in Square - Mobile Card Reader...

Posted on 28 April 2011

Visa is giving mobile payments start-up Square and its founder Jack Dorsey (Twitter’s co-founder) a great deal of credit for helping to revolutionize the way mobile users pay for products. As a result, Visa is putting some cash behind that credit.

This week, Visa announced an investment of an undisclosed amount in Square, which makes mobile phones and tablet computers – like the iPad- a mobile credit card reader.
As reported by the New York Times, the move by Visa is particularly telling of the growth and promising future of the mobile payments industry.

In addition to the infusion of capital, a Visa executive will also join Square’s advisory board.
Keith Rabois, Square’s chief operating officer, tells the NYT that the relationship between Square and Visa “was a natural one because Square could convert the 27 million businesses that don’t accept credit cards into Visa customers.”

“We’re empowering people to accept credit cards that historically have not,” Rabois says.
Visa, however, maintains that Square isn’t necessarily a rival to the credit card giant.

According to Ryan Donovan, a Visa spokesman, “We believe that Square helps to drive acceptance of payment cards in a segment that has been historically underserved.”

Square says an average of 100,000 new merchants are now signing up for the service every month.

Twitter vs SMS vs Facebook...





Twitter is, nominally, a micro-blogging platform. Blogging (as most readers are no doubt aware) os a form of content generation, whereby bloggers write items called ‘posts’ which are published in a chronological and/or categorized manner for the consumption of zero or more readers. Unless readers are using an RSS feed, they will not be aware of new posts, unless they check the blog manually. In addition, bloggers are not inherently aware of who is reading their blogs (although some blogs will attempt to track reader numbers and locations. However, this is not an inherent part of blogging).


Twitter differs in a number of respects. First, it is a micro-blogging platform. Posts (or ‘tweets’ as they are known in the world of Twitter) are limited to 140 characters. Anybody can read your tweets (unless you elect to protect them), but people can elect to follow you on Twitter. When they do this they will automatically be made aware of your tweets through the client they are using to connect to Twitter.

Twitter also has a much more explicit sense of dialogue than blogging. You can ‘reply’ to a tweet and the original tweeter will be made aware of it. It will also be clear to everyone who is looking that you responded.

In addtion, you can ‘directly message’ a Twitter user. This is more private and remains between you and them.


So, how does Twitter differ from SMS? Well, SMS messages are also 140 characters long (this is not a co-incidence…), but that’s really where the similarities end. An SMS message is intended for a single user and also sent to a single device. ‘Direct messages’ notwithstanding, tweets are for all to see and can be accessed by anybody who has a Twitter client… at any time.


How does Twitter differ from Facebook. They share some characteristics; Facebooks News Feed is a form of micro-blogging and anybody can access your Facebook data (within the restrictions that you set). But, Facebook has a heavy focus on applications and on explicit networking. Twitter is positioned as a communication channel, whereas Facebook is trying to be all things to all men. This isn’t a criticism, per se, rather an observation of their differences.


There is no reason that these platforms can’t get on. You can install Twitter clients on your cell phone; you can add Twitter Apps to your Facebook profile; you can send Twitter updates via SMS; you can receive Twitter updates via SMS.

SMS can drive customers back to abandoned mobile shopping carts...

By Giselle Tsirulnik

SMS should be used to complement a retail mobile Web experience and drive mcommerce sales, according to industry experts.

If a user is opted-in and abandons the mobile shopping cart after shopping a retail mobile Web site, SMS can be used to follow up and get the person back to complete the purchase. Research shows that 90 percent of consumers prefer multichannel options for interacting with businesses, with SMS topping the list.
“SMS without mobile Web leads to breakage when trying to convert messaging into action,” said Marci Troutman, founder/CEO of Siteminis, Atlanta. “Retailers must give the user someplace to go and something to do.

“Text limitations don’t allow great user experiences,” she said.

SMS/mobile Web integration

SMS can be integrated into mobile Web sites to keep consumers engaged even when they are not looking at their phones.

Retailers can create a destination point on the mobile Web and use SMS to create a transaction through coupons.

All that needs to be done, is that there should be a mobile URL in the SMS message that drives consumers to a link and a simple coupon code would drive the transaction.

According to Aberdeen research, 38 percent of retailers have adopted some sort of mobile presence, the majority of which consists of a mobile commerce site.

Sears promotes its mobile commerce site via SMS, embedding the URL within text message communications.

In 2009 Ebay used SMS to drive sales on its mobile Website.

What is a better way to let a database of opted-in consumers know that a retailer has a mobile Web site than sending a link via an SMS message?

Additionally, opted-in consumers can receive alerts based on their previous purchases that let them know that there are new items in stock. This can be used to drive transactions.

For example, a woman is purchasing a blue winter jacket at Macy's.  A week later, she gets an SMS alert saying there are gloves and a hat that match her new jacket for 10 percent off. There is a URL imbedded into the message.

She clicks on the URL and is driven to a microsite where she can purchase these items.


Abandoned carts


SMS can also be used to drive a consumer back to a mobile commerce site when that individual has abandoned an item in the shopping cart.

Imagine a consumer sitting on the train and trying to buy something from Steve Madden’s mobile site.
Next thing this consumer knows, it is time to get off and so the item that was about to be purchased is abandoned in-cart.

About an hour or later the consumer is on the bus and gets a message that reminds him that this item is still in the cart. “Click on this link to complete the order.”

“If a user is opts in a retailer can send SMS texts to say there is a value offer to highlight items left on the cart or to say that you might be interested in some related item,” said Steve Timpson, president of Siteminis, Atlanta.

“Develop a strategy around opt in info gathering that allows you to better tailor specific offers to a user,” he said. “Start with offers to get the data first, also, offers don’t necessarily mean discounts.

“You must work to develop strong two-way communications to your user base. It helps create better and more targeted info to a user and helps conversion.”

Mobile commerce is going to be huge: ad:tech panelist


By Rimma Kats

April 15, 2011

Mobilizing branded content is key

SAN FRANCISCO – Mobile creates an opportunity for big brands and small mom-and-pop shops. Regardless of size, companies need to find the right mobile marketing mix that helps build relationships with consumers.

During the “AT&T Sponsored Workshop: Finding the Right Mobile Marketing Mix,” panelists discussed the importance of mobilizing a brand’s content or storefront and how they can further engage their consumers in a mobile context.

The panel was moderated by Jeff Cotrupe, global program director at Osscs.

“People are buying things through mobile,” said Dan Lowden, vice president of marketing at Digby, Austin, TX. “People were buying anything from Godiva chocolates to flowers from 1800Flowers.

“Retailers should do a mobile-optimized site as a starting point and then further engage their customers by developing an app,” he said. “A stat recently came out that 50 percent of mobile users bring their phone to a store.

“The retailer has an opportunity with mobile to engage with their customers.”

According to Mr. Lowden, mobile commerce is going to be huge.

“To be able to buy via your app, that’s certainly the direction it’s going,” Mr. Lowden said. “We enable credit card purchases, gift card purchases and even PayPal.

“Imagine near field communications and waving your phone to make a purchase,” he said. “That’s coming.

“There are a lot of big rocks that need to move a little to make that happen.”

According to Robert Russell, director of AT&T mobile marketing solutions, it is important to figure out which elements of the marketing mix companies choose.

Brands should figure out whether they want to develop apps, mobile sites or use SMS.

“The key themes that permeate those tools is putting the consumers in control and making that information valuable to them,” Mr. Russell said. “If the user experience is good and they find what they’re looking for and if they get value out of interacting with your app or mobile site, they’re going to keep engaging with you.

“If they’re not at the center of the value equation, it’s not going to work,” he said.

Additionally, the company partnered with Digby to help retailers design, deploy and manage commerce-enabled mobile-optimized sites and apps.

The initiative provides businesses with a single platform that works across a variety of mobile operating systems and lets retailers provide information, pictures of products, rich media and an enhanced shopping experience when potential customers scan bar codes.

“We’ve seen tremendous growth in mobile bar codes,” Mr. Russell said. “Especially with the general education around it.”

Phil Buehle, senior partner and head of planning at OgilvyOne agreed that the mobile space is emerging especially with the different tools that companies are using such as augmented reality and QR codes.

The executive also believes that mobile payments are becoming popular and more consumers are buying goods and services via their mobile device.

“As far as mobile commerce, it’s far out there,” Mr. Buehle said. “It’s still early though.”

Jennifer Shouten, vice president of affiliate marketing at Starz Entertainment also agreed that mobile bar codes are a great way to engage with consumers.

Starz used mobile bar codes in several of its campaigns where it promoted its new shows “Spartacus” and “Camelot.”

When consumers scan the code they are redirected to a mobile landing page where they can view trailers and find out more about the show.

“The landing page is designed for consumers to find what they want immediately,” Ms. Shouten said. “Hopefully it’s a positive experience for customers.

“And the great thing about it is that we’re able to track each scan,” she said.

Scanbury Mobile Barcode Trend: Usage Increased 800%...

April 14, 2011

Mobile barcode solutions provider Scanbuy recently published its latest Mobile Barcode Trend Report indicating that traffic has increased over 800% from this time last year.

The report provides a comprehensive look at how actual users are engaged in mobile barcode scanning today, with data collected globally from January 1st, 2011 to March 31st, 2011.  Overall barcode scanning trends, mobile operating systems scanning share, mobile device share, representative demographics of users, and share of 1D to 2D barcode scanning were among the data collected in the report as well.

Key points from the report:

• Traffic increased over 800% from this time a year ago
• 2D barcodes like QR Codes saw more scans than 1D(UPC codes) for the first time since the 2^nd quarter of 2010
• Retail and media industries generated some of the most scanned 2D barcode campaigns
• Android OS continues to be the platform that generate the most scans, but more scans came from the iPhone than any other mobile device
• Everyday products continue to deliver exactly half of all UPC scans from the ScanLife app

“The fact that 2D barcodes overtook 1D barcodes in overall scans is a strong sign that 2D codes, like QR codes, are becoming more commonly adopted by both marketers, publishers and users,” said Mike Wehrs, President and CEO of Scanbuy. “We saw some fantastic results from retail, media and entertainment brands that are using our interoperable ScanLife platform.The specific results around products being scanned also shows how this can really be leveraged by brands when people are actually holding their product."

SMS essential to increase customer loyalty, drive brand awareness: mBlox...


By Dan Butcher


October 11, 2010


Aggregator and mobile transaction network mBlox Inc.’s consumer research revealed almost 90 percent of consumers prefer multichannel options for interacting with businesses, with SMS topping the list.

The survey shows that businesses should include SMS and other communication methods to reach consumers in regards to appointment reminders, payment reminders and coupons to improve customer loyalty and drive brand awareness.

Looking specifically at the role of SMS for business communications, 59 percent of British and 17 percent of U.S. consumers surveyed stated SMS as their preferred choice when being contacted about appointment reminders.

For payment reminders, such as credit card and utility bills, the consumer research showed that more than one in three consumers chose SMS as their preferred communication channel in Britain. But just one in 10 chose SMS in the U.S.

More than three-quarters of all consumers surveyed use coupons when shopping, with 29 percent of British and 15 percent of U.S. consumers having already used a mobile coupon.

Furthermore, the survey results revealed 71 percent of British and 42 percent of U.S. mobile users said they would be interested in receiving mobile coupons while they are shopping in a store to alert them to a special offer or promotion, indicating a pent up demand for these services.

Mobile Commerce Daily’s Dan Butcher interviewed Brian Johnson, senior vice president of sales and marketing at mBlox, Sunnyvale, CA. Here is what he had to say:

What is the key finding of the study?
Consumers want more choices on how they interact with businesses. Consumers want to select their preferred method of communications which increasingly includes text messaging, an option that many businesses have not made available as of yet.

Adoption of mobile services in the U.S. has lagged behind Britain and the rest of Europe in the past, and the results of this study show how SMS is more accepted by consumers in Britain, perhaps because it is already in use by many businesses.

What is the most surprising finding, and why?
For payment reminders, only one in 10 in the U.S. have selected text-message alerts as their preferred method of communication.

In Britain, this number is more than three times higher.

This is surprising, because text messaging is ideally suited for payment reminders because of the timing and relevance.

Text messages are a non-intrusive communication that is often read much more rapidly than emails, and they do not tend to get lost in the clutter of email inboxes.

Perhaps the reason that only one in 10 consumers want to use text messaging is because payment reminders are not as popular in the U.S. as of yet.

What is driving growth in the use of SMS to increase consumer loyalty and brand awareness?
In my view, the growth is being driven by success. We hear about companies that are only now beginning to experiment with SMS programs, and they are impressed with the results. Success begets success.

Furthermore, marketers are realizing that if they are able to supplement mobile applications with SMS, they can reach a far greater audience and improve the results of those who use their application with push notifications that increase loyalty and brand awareness.

What advice can you give to mobile marketers based on your findings?
The advice is simple: Let consumers choose how they want to interact with businesses, and include text messaging as one of those choices, because increasingly consumers like to use SMS.

Mobile Advertising Spend to Reach $3.3B in 2011, to $20.5B in 2015...

New research out from Gartner estimates total spend on mobile advertising will reach $3.3 billion in 2011, growing to over $20.6 billion by 2015.

The North American market will account for roughly 1/5 of the $3.3B total this year, or roughly $707M, and 28% in 2015 — or $5.8 billion.


That’s equal to about 20% of the estimated $26 billion in U.S. Online ad spending projected for 2015.

Breaking it down a bit further for 2011, search- and map-related advertising will account for the largest share of ad dollars by far, at nearly $1.5 billion globally.

Mobile Web display and in-app display ads will each account for just over $800 million, audio/video will generate $96 million, and SMS/MMS and Instant Messaging advertising will make up $112.5 million.

By 2015, however, the split in ad-spending will level out a bit as display closes the gap with search.

Search in four years will account for about $7 billion; mobile Web display, almost $6 billion; in-app display, $5.3 billion; audio/video, $2 billion and SMS/MMS/IM, $247.3 million, according to the research.

The most interesting tidbit from the data was Gartners predictions for the mobile app vs. mobile Web debate.

The research firm expects mobile apps to have the upper hand when it comes to drawing ad dollars until 2013, “when the mobile Web will eventually return as HTML5 standards become established.”

”While the growth rate for mobile advertising will peak in 2011 and in 2012, more than doubling each year, it won’t reach its optimum point for some time,” stated the report.

”We expect that targeting and contextualization, especially in social sites and applications, will carry on improving throughout the forecast period and beyond.”