Spotify

Spotify has had to restrict new users to invite codes only as numbers subscribing the service seem to be exceeding the numbers they have set to ensure that costs don't spiral. Alex Farber broke the news on Friday 14th September in his piece for NMA, here.

The key piece to all of this is the impact that mobile has had on the service. Since Spotify launched their mobile app last week, they have had huge demand for the service. However, the iPhone app leads people to set up a £9.99 subscription service. So why the increase in demand?

What seems to have happened is that Spotify has created a mobile marketing campaign to get new users based on the experiences of iPhone users. A bi-product of what was intended.

The power of mobilisation of content is huge and as yet, largely untapped. I am sure that Spotify knew of the monster they were unleashing with the iPhone app, yet I am certain that they are amazed how word-of-mobile has secured more users in such a short space of time.

Jay, 14/09/09

Ad Funded Conundrum

News last week that Sport magazine has been suspended for the time being has reignited the argument among Lounge members that ad funded can never work. Working in the only ad funded mobile network in the UK and privy to how this is going, I will always stick my neck on the line to say that I believe it does work, but it isn’t a licence to print money nor will it work in every case.
Friends Reunited have long ceased to be the bellwether in digital, but they have moved a subscription based service to emphasising socialising online with a step-up to the paid content of genes and dating.
Earlier this week, NMA’s Danielle Long wrote an article on Google’s model for YouTube - Has Google finally found its golden ticket to monetise YouTube? She ventures that the model used is charging for premium content. Time will tell if this balance works.
At Blyk, we make significant amounts from top-ups so the notion that we are entirely ad funded is false. The belief here is the free is good, but we have to be able to develop a model to look for other revenue streams.
It seems that for everything that is good about Sport, this is where it has finally been found wanting.

Retail Uncovered - Mobile

Had to do some reasearch for a session I did with Blyk clients called "Retail Uncovered", covering off key factors in the current economic climate and where mobile can help.

I got some good quotes and thought these should be shared.

Factors faced by today's market.

Inspired by Liz Fagan's address to Boots media, there are the key challenges faced from the consumer and from the market.

Consumer Challenges

Less consumer spend in the market
Maintaining or increasing footfall into store (eyeballs online)
Brand loyalty in a discount market
Who is in control of brand message in this market – consumer or marketer?

Marketing Challenges

Marketing budgets slashed
Fragmentation of media
Internal emphasis on ROI

Note I have highlighted where I think dialogue through mobile can have a direct impact. Moving on, I went into a study by Simeon Scammell-Katz of TNS Magasin. He states that there are 9 habits of a shopper in a recession.

1. The shift to cheaper brands
2. Increased usage of the discounter channel
3. A move from the convenience channel to multiples and from multiples to discounters
4. Fewer, more planned shopping occasions
5. Location - now even more important
6. Ensuring availability
7. Sustainability issues
8. Taxation
9. The internet

Again, I highlighted that there are fewer and more planned trips. Where mobile cuts into this is in the planning stage.

Next up, I quoted Sue Burden, Head of Brand and Communications research for TNS. TNS have conducted research into WOM and she came up with 3 rules of engagement:

1. Create a WOM opportunity with every brand / consumer touch point - not just your website, but also in store, advertising and packaging.

2. Make the WOM opportunity two-way - not just a channel for you to talk to them, but an opportunity for open dialogue. This will take commitment on your part, but the gains in terms of positive WOM can be invaluable.

3. Involve frontline staff - they are also vital WOM generators

I've highlighted where I see the mobile being a perfect WOM tool - 2 way dialogue.

So, concepts I threw around the group were that the mobile is the tool that retailers should be ussing to combat changes in a challenging market.

JC

80% of success is simply turning up

I quote Woody Allen here. 80% of success is simply turning up. I have to agree with the sentiment here.

OK, I am not saying that by turning up lady luck will smile on you 80% of the time. It takes a bit of skill to notice when the breaks are there and when to take them.

Sounds obvious? Let me put it this way. If you pack your running gear when you head to work in the morning, you are about 40% of the way there. If you put your running gear on after work and head downstairs to go for a run, you are another 40% there. There's your 80%. Your dressed and ready to run, you will hardly go down the pub - viola! Success.

So, what has this got to do with the price of eggs*? Well, Digital Lounge is about being there. Our mission statement is to take digital media to the next level and to ensure our members are at the cutting edge of things.

It is about being there and taking the breaks when you come across them. So here's my take of Woody's words of wisdom.

80% of success is turning up with your business card.

Speak soon!

Jay

* the price of eggs for me is the cost of keeping 6 chickens, but that is another conversation and another blog.

Digital Lounge January

The first Lounger event of 2009 promises to be one of the best so far. We have Andrew Grill of London Calling speaking. He's a self confessed mobile nut (sorry evangelist) and he is speaking on what's happening in '09 for mobile.

Obviously a pet subject for me.

So I will give you an update on how it went after tomorrow.

Jay

Still searching for the pefect mobile voucher

This week I posed a question my colleagues and industry peers, "How can I make redeeming an offer that is on a mobile easier for the retailer to operate?".

My project is to get more and more mobile campaigns to end up with a call to action that is come into store. In Japan, mobile vouchering is very much the norm and many locations are set up to read from them.

Alan Moore of SMLXL believes that QR codes are the answer. He believes that the UK is primed to take on this technology. He goes further to quote Lawrence Cosh-Ishii, co-founder of Wireless Watch Japan:

While we are starting to see the adoption of 2D bar codes in markets overseas, the original wave of QR Codes—the iconic call-to-action in Japan since 2004—is steadily giving way to ad campaigns using a standard search box embedded with a few unique keywords. Considering web usage is based on location with access by PC vs. mobile device running about even in Japan, combined with easy to remember—anytime & anywhere—characters displayed in their native language, the approach could be rapidly deployed in other non-English locations such as Russia, China, India and Arabic speaking countries. As an obvious evolution, which requires no special hardware or software, this simple strategy—most importantly—works very well across all traditional media channels.

After trying the technology from a download off yesterday's City AM newspaper, I must admit the QR codes are easy to use and look like they could be the solution.

Helen Keegan, Specialist consultant in mobile marketing, advertising & media at BeepMarketing, offered me some advice on who is pushing the technology in the UK. Helen mentioned Trinity Mobile, who offer solutions with QR codes, along with Kaywa, Shotcode and a whole load of others too. But she warned that barcode readers at point of sale would be an issue.

Helen also offered me this advice:

The very simplest thing to do is to provide the retailer with a barcode that they can laminate and keep by the till to use whenever they see the relevant image, text message, barcode whatever. That way they can easily process the transaction without changing their systems. Of course, you won't get full reporting (when I was at ZagMe, we found retailers were under-reporting by 96% for example), but it should be a good enough work around in a lot of cases.

And in that statement I had my answer. UK retailers are not ready for the technology. With the economic downturn hitting retail, can we expect them to invest in new scanners to enable pure mobile vouchering?

David Tymm of i-movo suggests that perhaps we shouldn't be expecting the retailers to change systems without at first proving there is demand for mobile vouchering. David mentions:

It is up to organisations such as Blyk to prove to the market and the retailers, that the investment is worth the effort.

I believe that David has a point. The technology is available, but until we can prove the mobile is a mass-market call to action medium, we may stick to Helen's point on having printed 2D barcodes behind the till.


I haven't called off the search just yet, but I am happier knowing that to get to the goal of a perfect mobile vouchering system, I am going to have to create demand. I'll keep you posted on how it goes.

Jay

Do the Green Thing

Next Wednesday I am really excited as Andy Hobsbawn from Agency.com is speaking at our monthly get together for the Digital Lounge. What excites me most is apart from Andy's inspirational career within Digital Media, is the drive, zeal and desire he has for Do The Green Thing.

Green Thing is a not-for-profit public service that inspires people to lead a greener life. With the help of brilliant videos and inspiring stories etc. from creative people and community members around the world, Green Thing focuses on seven things you can do - and enjoy doing.

1. You get from A to B without any C when you Walk The Walk
2. It’s delicious but it causes more CO2 than cars so go Easy On The Meat
3. Resist the urge to buy the latest and Stick With What You Got
4. Turn down the central heating and turn up the Human Heat
5. The art of wasting nothing and using up everything: All-Consuming
6. Instead of jetting your way around the world, Stay Grounded
7. Don’t leave it on or even put it on, Plug Out

I'll let you know what it is like, but please check out the campaign that Andy and his team are championing. Not only does it make sense, as a Digital Lounger you will be shamed if you don't take part!

Jay