mobile

Google hosted mobile monday

I went to the 4th monthly Mobile Monday London (aka momolondon), my third one. I missed the one last month at Yahoo's offices because I was in Turkey.

Google really laid on a slick hosting job. They had nice printed signage, including a label on the elevator button for the floor to go to, coat check, free t-shirts and pens*, plenty of free booze and food handed out by catering staff wandering the floor. The presentation equipment was also tops, dual projectors and the presenters' slide shows were technically seamless.

* Figuring out how to open the free pen may be an example of the infamous Google recruiting tests, it took about 3 or 4 different approaches before I figured it out. Maybe not something to brag about.

Oh yeah, the presentations themselves were pretty interesting as well. The theme for the evening was payment systems, in other words, ways for content providers to make enough money to make it worth doing. This probably is the biggest thing holding back the content industry, shady ring-tone clubs aside.

Shannon Maher from Google gave the first talk, and although it was the one least targeted to the theme, I think that most of the attendees, sated with Google-booze and delicious toothpick-meat, didn't mind. Google is building a new London-based mobile engineering team to complement their team in California. It sounds like their main reasons for doing this are to tap into the European mobile scene, given that as Mr. Maher said, the UK now has 100% penetration versus 70% in the US; and for partnerships with external organizations, including carriers (mobile network operators, as I usually call them), OEM's, and "industry", whatever that means.

Maher was fairly cagey on the specifics of Google's product plans, at one point begging that he hopes not to see his offhand musings blasted onto front pages the next day as announcements of new Google services. He said the first step is to bring existing properties onto mobile, then step 2 would be to innovate, and design for the mobile experience.

One thing he mentioned that I think resonated well with attendees is that Google considers small content providers as being of key importance, and wants to help them out. In an industry which cripples itself with walled garden strategies, breaking down the walls is the only way to get the kind of success people keep claiming is inevitable. Google is an ideal company to help with this.

An interesting point that Mr. Maher made was the fact that search is very different on the mobile. The mobile web is not nearly as well-linked as the regular web, so Google is struggling with finding all of the content that's out there so people can search it.

Other attendees raised questions about how people are actually going to "discover" mobile services. Very few people whip out their phone and go to Google to find things the way we do on the regular web. The operator portals can be a major source of traffic, but the most popular is the old fashioned texting a keyword to a shortcode approach. I believe that mixing non-mobile and mobile is the key, both for this discovery/marketing process and for most applications. There was some discussion on the floor about mobilized adwords and adsense, but I think there's a lot of mileage to be gotten out of using normal Google Adwords to drive people to mobile applications.

Margaret Gold presented Luup, which is Yet Another Payment Scheme (my term, not hers), basically a mobile-oriented Paypal. She used a new-fangled presentation style, rapid-fire slides with just a word or two or a picture, which was pretty cool. But when someone asked why Luup will succeed where others have failed, especially given that Paypal can easily move into mobile, her answer was pretty weak, basically saying there's room for more than one. The Network Effect suggests that there probably isn't room for more than one, and Paypal already has a massive head start. I don't think being the first into mobile will matter.

One thing a lot of mobile dotcom wannabees don't appreciate is that mobile is not an entirely new playground, it's just an extension of the web. There's a parallel here with the original dotcom bubble, where entrepreneurs thought the web was an entirely new economy, separate from the old one. It turned out to be just another facet of the old economy.

Jeremy Flyn from Vodafone talked about xPay, which sounds like a set of standards which is trying to pick up the pieces left from the crash of SimPay. One of the reasons SimPay failed was that it used a single model across Europe, but different European countries have very different economics for mobile content, including how much they pay out. Flyn repeatedly emphasized that the UK has the highest payout to content providers for premium SMS messages. So xPay is a UK-specific standard, which the operators and SMS aggregators will hopefully all sign onto.

Richard Watney from Reporo gave a fairly brief demo, using a phone, of their service, which basically seems to be a custom J2ME shopping applicaiton. Users browse shops that have signed up with Reporo, and Reporo stores credit card details and uses them to charge purchases.

So the talks were fairly interesting, although in a lot of ways there didn't seem to be anything very new. I think this demonstrates that online mobile services, although it's becoming very hot at the moment, is still struggling to find it's place in peoples' everyday life. I'd say we're basically at a similar stage to the 1996 Web, where very few people were actually making money outside of porn and ripoffs, and it's still difficult to make an unshakable argument that it will become a real, profitable, mature market. Personally, that's what makes it fun to me, just like then, it's uncharted territory.

Vodafone buys into Turkey

Vodafone, a British mobile operator, has bought Telsim, the second largest Turkish mobile operator. This is interesting to me since I spent some time working for the third largest mobile operator in Turkey, and currently work on the UK mobile industry. Telsim has a rocky past, they've always been a distant second to Turkcell, and has suffered from seriously dodgy owners, the Uzan family. The Uzan brothers founded Telsim, getting a ton of credit from the likes of Nokia to build their network, then refused to pay. For a while it looked like they'd get away with it, since they had more knowledge and connections in the Turkish legal and political systems, but in the end their business empire collapsed and was taken over by the government.

The interesting thing about the Turkish mobile phone market, at least 4 years ago when I was living and working there, was that very few people used monthly contracts. Most customers use "pay as you go", where you have to prepay for the time you will use. This was mostly down to price, the Turkish companies just didn't offer the kinds of deals that UK operators do. Vodafone may change this, they may even introduce contracts whereby people can get good phones at cheap prices when they sign a contract.

Turkey is a great market for mobile phones, it's such a social culture. I remember being impressed when I first visited Istanbul in 2000 at how pervasive they were. Mobiles were already common in the UK at the time, but in the US they still had an embarassing "yuppie" stigma.

London Mobile Monday Event

London's mobile industry now has a monthly get-together, thanks to Mobile Monday London, aka momo london. I went to the first meeting Monday evening, which I enjoyed.

A show of hands showed the turnout to be roughly half and half techie/biz-marketing, with a fair chunk of designers (maybe 10%). Speakers were encouraged not to make a product pitch, instead there was a theme ("bridging the digital and physical worlds"), and the speakers oriented their talks towards their experiences and learnings that relate to the theme. Naturally they did mostly talk about their own products and used bits of what were obviously their standard presentations, but I think they did a decent job of not just coming in and pitching us.

There was a good bit of general discussion between speakers and audience. A common concern of the group that emerged was the difficulties of getting customers "into" a mobile product, in terms of the way platform incompatibilities, awkwardness of user experience, and legal and other obstacles that make barriers for users to register with and start using a mobile product and service. Since this is something that affects and requires all three of the types of mobile animals that came to this event to work together to solve, Mobile Monday has the potential to be quite interesting.

The organizer was Dan Appelquist, a technical manager of some sort for Vodafone. Russ Beattie also came in from Silicon Valley to attend. I was chuffed to meet him, since we've corresponded by blog years ago, and both still keep up with each others' blog. He prodded me to post more to my site, so here ya go Russ! I also met some other people, but I'm shit at remembering names, which is why I'm not a sales guy.

There were three speakers at the event, so I'll give a capsule review of each.

Dennis Hettema from OP3/Shotcode

Shotcode is one of those schemes where a visual code is put on a print advertisement, which users can point their mobile phone camera at to link directly to the advertiser's site. Hettema was the best speaker at the event, he was obviously more experienced at pitching than the others and so was more polished.

I have to say I'm not convinced that this kind of scheme is really likely to succeed. Hettema positioned this as a way to get around some of the limitations of the mobile platform, in particular the awkwardness for a user having to type a URL into their phone when they see an interesting advertisement. In reality though, this isn't how mobile advertising works, at least in the UK. Ads for mobile services ask people to send a text message with a simple keyword to a shortcode, a 5 digit phone number. When they do this, the advertiser can send a WAP push message, which is essentially a text message with an automatic link to whatever they like. This is a very widely used technique, and works on TV and other media where a visual code like shotcode would be difficult to use. Plus it doesn't need special software to be installed.

It was notable that when Hettema gave his stories of shotcode campaigns, talking about how successful they were, he didn't mention the total number of people that used it, which he would have if they'd had impressive results. Instead he mentioned how many times each user who did try it used the service. The one time he did mention how many people used it was a case where they handed out phones with their software preinstalled at a convention so exhibitors could scan shotcodes on attendees' badges to get their contact details.

Also, the speaker from the BBC gave figures for a campaign they did which used a shotcode-like scheme along with other ways for users to use their service, and the shotcode-like scheme got spanked.

Richard Jelbert from mTrack/KidsOK

KidsOK is a location-based service for parents to track their kids whereabouts. One tidbit I hadn't known is that there are location service aggregators that you can use instead of going to each operator. However, each operator still has to approve of every location based product, and they have different requirements, so it still sounds very painful. Jelbert is involved in a committee which is trying to come up with a standard Code Of Practice (COP) across operators. But it sounds like even with this, the requirements put up huge barriers to converting users.

KidsOK actually sell a product in retail stores, which is a registration kit. This involves getting a form by post, and
then going through a rigamarole with SMS messages to opt in. Jelbert says of the people who buy the kit and start the registration, 42% don't activate their account, and of those who do, 48% don't complete the opt-in.

The possibility of using a J2ME application to make this process smoother was raised, but Jelbert said this would make approval by operators more difficult. Basically, the standard Code of Practice outlines opt-in procedures using SMS, so if you follow that approval is easier, but doing something unusual means a lot of work to get the operators to sign off.

Location based services sound interesting, but very difficult to do in a way that is going to bring in the user. I think it's probably not worth doing unless you have a service that is killer.

Chris Yanda, BBC

Chris was a very non-marketing guy, but obviously into what he does. His story was about a project called "Coast", where they put up a series of signs at several hiking trails on the coast. These signs offered users several different ways to get information about their location via mobile, e.g. directions to other locations, trivia about the location, etc.

The signs were quite busy, crammed with various ways to access the service. The ways to access the information, and what I could gather about their level of useage, were:

  • 4,000 Data code (a barcode type scheme like shotcode)
  • 3,700 Audio calls (call up for a recorded message)
  • 4,800 Web download (the same recorded messages, but d/l from web page, theoretically to load onto your phone and listen to on the hike)
  • 137,000 WAP
  • ? Text shortcode was the most popular, but no numbers given.

Interesting stuff!

ICE - In Case of Emergency

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East Anglian Ambulance is promoting the idea that people should make sure they have emergency contact information in their mobile phone address book in a way that's easy for emergency workers to identify. They're calling this ICE, for In Case of Emergency, and suggest you put the number in an entry named "ICE". I've added this to my phone, although I actually called it "aa ICE Emergency Contact" so it shows up as the first number. As a side benefit, when my phone decides to dial someone from my pocket it will now be my wife rather than a business contact I'd rather not have to explain myself to.

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