AT&T Settles Class-Action Over Mobile Web Taxes, Still Leaves Questions Unanswered

From Mobile Marketing Watch:

AT&T has been caught up in a class-action lawsuit stemming from taxes billed to subscribers using data plans. The operator started sending out SMS messages to subscribers last week regarding a future refund, though details on the settlement and the lawsuit’s background is still largely unknown.

As part of the settlement, AT&T will refund taxes billed to users for mobile Internet services rendered between November 1, 2005 and September 7, 2010. The lawsuit was filed against the operator from plaintiffs who claimed that AT&T had violated the federal Internet Tax Freedom Act. This act prohibits state and local governments from levying taxes on Internet access between November 2003 and November 2014, though apparently AT&T kept collecting anyway.

A Website was created to give information about the lawsuit, though several important questions remain unanswered. First of all, there’s still no mention of how much AT&T collected wrongly, or how many mobile data users it affects. I for one have two AT&T accounts with data plans and have never received an SMS regarding the lawsuit like many others have. Another big question is what AT&T will have to pay out for this mistake. In the last quarter alone, AT&T reported revenues of $4.8 billion from wireless data services, and this settlement covers the last five years.

It’s also likely that AT&T isn’t the only operator who’s been collecting these taxes. I have a feeling we’ll be hearing a lot more about this in the near future. Leave us a comment if you’ve been affected by this lawsuit. Has anyone received an SMS regarding a refund?

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Rhythm NewMedia Raises $10M, Sees 425M Monthly Mobile Video Ad Impressions

From Mobile Marketer

Mobile video advertising provider Rhythm NewMedia has announced a series C round of funding valued at $10, while indicating its interactive video ads average over 425 million monthly impressions as of Q3 alone.

The company was founded in 2005 and says its the largest mobile video ad network around, even though it’s continued to fly under the radar. A reason for that is that it tends to only work with big-name brands and publishers, and actually counts over 100 Fortune 500 companies as clients. Publishers include CBS and Fox; and advertisers include Best Buy and FedEx, to name a few.

The company focuses on pre-roll interactive mobile video ads, and is responsible for many of the ads you already see on iOS and Android applications. The ads served by Rhythm are interactive in the sense that users can tap on something during the pre-roll ad to visit another website, or view a longer video clip like a movie trailer for instance. Serving over 425 million monthly video ad impressions, which the company says is up 30% over Q2, Rhythm has found the sweet spot of mobile video advertising.

As part of its “Q3 2010 Mobile Video Ad Report” released last month, Rhythm covered data showing completion rates for interactive pre-roll video ads remain high at 87%, exceeding online video and even television. In addition, CTRs are 79% higher on display ads that mention “video” as a call to action vs. other similar ads, the company said, and iPad CTRs for pre-roll video ads are 2x or higher vs. iPhone, iPod Touch and Android.

The mobile video ad space will continue heating up, and we’ll likely hear a lot more from Rhythm going forward. Rhythm CEO Ujjal Kohli said his company was “a bit early” entering the space, but that things have really taken off since the iPhone launched.

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Coupons, SMS to be most used form of mobile marketing by 2015: study

From Mobile Marketer:

A new study reveals that coupons and SMS will become the most widely accepted forms of mobile marketing and advertising by 2015.

The study was conducted by mobileSquared on behalf of Airwide Solutions. Sixty-one percent of wireless carriers surveyed thought that coupons or vouchers would become the dominant form of mobile marketing by 2015.

“For years we heard that SMS will be eclipsed by all else,” said Jay Seaton, chief marketing officer of Airwide Solutions, Burlington, MA. “SMS is a tremendous opportunity: It is ubiquitous and works on all devices and consumers know how to use it.

“All the issues of interconnectivity have long been resolved and SMS generates a lot of revenues for operators,” he said. “There are no quality issues and consumers have a high degree of trust that the channel is secure.

“SMS will be and is incorporated into various applications and will continue to be an integral part of marketing strategies.”

Nobody does it like Sara Lee

SMS/MMS
Of the wireless carriers surveyed, 58 percent predicted that SMS and MMS-based messaging would be the second most widely accepted form of mobile advertising in the next five years, followed by search with 45 percent.

The close link between coupons and messaging, with SMS acting as a core distribution channel in the majority of cases, it is understandable why both categories attracted a similarly high response from the carriers surveyed.

The study reveals that users in 2015 are thought to be more likely to use mobile marketing or advertising promotions that are sent to them via their mobile phones than those generated through search, display or navigation.

Sybase 365's SMS-based geo-location services

Opt-ins
British mobile subscribers currently send more than 11 million SMS messages per hour, totalling an approximate 7.7 billion monthly. These stats show that clear potential exists for carriers to capitalize on the 15.4 billion engagements between consumers and the SMS medium that are generated each month.

As things stand, subscribers have to opt-in to SMS mobile advertising. However, as significant mobile marketing and advertising activity is expected in the future, the opt-out option will also become an important component in the 2015 mobile user’s experience.

“In terms of opting out, it is a comfort zone for the consumer,” said Nick Lane, chief strategy analyst of mobileSquared, London. “Once the content is contextualized, ideally opt-out will become redundant.”

According to the mobileSquared survey, 54 percent of carriers thought that an opt-out service would be more important to them than opt-in in 2015, compared to 39 percent in 2010.

The majority of carriers (53 percent) also believe that the customer should control and update their user profile in 2015, rather than the carrier (7 percent) or a combination of both (40 percent).

Industries to benefit
The mobileSquared study points out SMS is ideal for mobile coupons.

Mostly restaurants and retailers use SMS coupons to drive foot traffic to locations.

But other industries can benefit as well.

“I think any sector can benefit,” Mr. Lane said. “Research revealed that all messages are opened within a few minutes of receiving them.

“For anyone who wants to reach out to a database, SMS becomes incredibly powerful,” he said.

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Food Network takes 45,000 recipes mobile.

From mobile marketer

November 5, 2010

The Food Network is letting food enthusiasts browse through 45,000 recipes via its applications for Apple’s iPhone, iPod touch and iPad.

Each recipe comes with photos and step-by-step instructions. The In The Kitchen application is available for $1.99 in Apple’s App Store.

“We want to give fans access to their favorite recipes from their favorite Food Network stars – anytime, anywhere,” said Bob Madden, senior vice president and general manager at Food Network.com, New York.

“Users can follow along looking at recipe while they watch TV or look for last minute ideas for dinner in the grocery aisle,” he said. “Mobile is a category we’ve been playing in for a while.

“It only made sense for our brand to tackle recipes as that’s what we’re known for – our vast catalog from some of America’s most well-known chefs needed to be there.”

Food Network is a lifestyle network, Web site and magazine that connects viewers to the power and joy of food.

Food for thought
Users with a Food Network account can access and browse their online recipe box with the ability to add new recipes directly from the application.

In addition, seasonal menus will be updated monthly and Thanksgiving recipes will be featured at launch.

Users can add ingredients from the recipes to a shopping list that they can share with friends via email, Facebook and Twitter.

Users can access the shopping lists offline.

“We’re leveraging all of our resources for this app,” Mr. Madden said. “You’ll see a broad marketing and public relations campaign around In The Kitchen – television ads, snipes, Facebook and Twitter posts, as well as contests, and so on.

“We’re really proud of what we produced,” he said.

Users can search the application

Users can browse recipes

Key features
Other features of the application let users set timers as they work on the recipe without leaving the application and converting measurements.

The company is looking to extend the application to Android devices in mid-November.

“Specifically with the In The Kitchen App, you can expect to see video, offline access to more content, ability to rate and review recipes, plus lots more in future versions,” Mr. Madden said.

“We’re also making select programming available on iTunes,” he said. “Food Network takes the mobile space seriously and wants to give our fans what they want, where they want, when they want it.”

Editorial Assistant Rimma Kats covers media, television, research and social networks. Reach her at rimma@mobilemarketer.com.

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Coca-Cola drives product awareness with cross-platform ad buy on CBS

From Mobile Marketer:

Brands such as Coca-Cola, Mars Inc.’s Snickers, Home Depot, Ford Motor Co., the Discovery Channel and Capital One are driving brand engagement and raising product awareness with advertising across CBS’s mobile sites and applications.

Coca-Cola Zero, Home Depot, Capital One and the Discovery Channel’s “Storm Chasers” have all run ad campaigns with the CBS Sports application, while Snickers and Ford are cosponsors of the CBS Sports Pro Football application. The majority of these are cross-platform buys that include online and television as well as mobile.

“One of the tent poles of our business is to make it easy to buy across CBS Interactive’s inventory,” said Rob Gelick, Los Angeles-based general manager of CBS Mobile and senior vice president at CBS Interactive. “Advertisers can now buy on air, online and mobile as a bundled package that extends reach and allows brands to follow an audience as it migrates from one platform to another.

“For example, Ford and Snickers are both running campaigns in our online sites, and are also both lead sponsors within our Pro Football mobile apps,” he said. “On the mobile front, we’re able to create unique, rich-media experiences like expandable ads and video units that we see as excellent points of connection to our audiences.

“We have a huge amount of products getting released in the mobile space, especially in the sports category, we’re running a lot more rich-media ad units and we’re seeing a lot more brand partners leveraging our mobile inventory"

Mobile advertising boom
Coca-Cola Zero, Home Depot and Capital One are all advertisers within the general CBS Sports iPhone application.

Coca-Cola is sponsoring the SEC Live Game of the Week feature within the application, which features live streaming video, including Coke Zero mobile video ads.

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Pizza Hut exec reveals how branded app achieved 2 million downloa

By Giselle Tsirulnik

October 26, 2010

Pizza Hut has been in mobile since 2008

NEW YORK – Taking a brand and bringing it to the mobile market effectively means listening to customer feedback and acting accordingly, said a Pizza Hut executive who presented at the Mobile Shopping Summit.

Pizza Hut’s mobile Web site and iPhone application are not new, but the executive explained that it took a lot of revamping to get the mobile properties where they are today.

“We initially launched our mobile Web site in 2008,” said Baron Concors, chief information and digital officer of Pizza Hut, Dallas. “The mobile site was slow and customers were complaining.

“We have several customer feedback channel and consumers were very vocal on which aspect of the site they did and did not like,” he said. “We then decided to launch an iPhone application.”

Pizza Hut is part of the Yum Brands suite of fast food brands. It is the largest restaurant company in the world, serving more than 25 million customers daily.

Pizza Hut taps Green Tomato for its ordering app

IPhone app
When Pizza Hut began to explore the possibility of an iPhone application, the company knew one thing for sure. It had to make the order process fast and easy.

At first the target audience was those who rarely prepare or consume home-cooked meals. The average age was 24.

Customers were complaining that the purchase process takes too long and that transactions were too hard to complete.

Pizza Hut targets iPhone users

Also a large amount of consumers felt that products were hard to find.

Pizza Hut took all of this into consideration when developing and enhancing its iPhone application.

As a result the company was able to get the experience to be easy for consumers and the application has been downloaded more than 2 million times since launch.

App features
The application uses iPhone and iPod touch features such as the user interface and accelerometer to make ordering menu items while having a fun and customized experience.

The pizza ordering section allows consumers to virtually build their own pizza.

Customers can pinch to select size, drag-and-drop toppings onto the pizza.

If a customer adds too many toppings, the pizza explodes and toppings go flying across the screen with an alert to make their pizza happier with fewer toppings.

The Pizza Hut mobile commerce application is driving sales in a major way. Last year the company announced $1 million in sales just via the application.

Digital strategy
Pizza Hut's digital strategy is to offer multiple digital ordering channels.

Mr. Concors suggested that brand be bold and take calculated risks when it comes to their digital strategy.

“Engage customers on their terms,” Mr. Concors said.

Pizza Hut’s ecommerce framework relies on delivering online orders to 6,000-plus stores.

“Currently we have no scalability concerns because our current ecommerce operations handle large traffic events,” Mr. Concors said.

“Additionally, there is no training required at stores when adding new online channels,” he said.

Development
Pizza Hut concentrated on quality assurance with the launch of its iPhone application.

Testing requires additional steps to compile and load the application on iPhone. Integration testing was important as well.

As for deployment, Mr. Concors said brands need to register as an iTunes developer early, since it takes some time.

“Thoroughly test before submitting to Apple review,” Mr. Concors said. “Rework cycles are costly.”

Spreading the word
Pizza Hut did quite a lot of marketing to promote its application and gain 2 million downloads.

Mr. Concors suggests that brands use all existing media to promote their application and mobile Web destinations.

Pizza Hut used its PC Web site, YouTube, Facebook, the App Store rankings and Twitter to promote the application.

Apple was pretty impressed by the application. The company included the Pizza Hut application in its television commercial.

“Pay attention to bloggers, professional reviews as well as iTunes comments,” Mr. Concors said. “The first release of an app is generally accepted as not perfect.

“But brands must aggressively fix identified issues and introduce new functions,” he said. “Apps are for loyalists and mobile Web is for customer acquisition."

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Kohl’s rolls out first mobile effort to push holiday deals and sales

Kohl’s multichannel holiday campaign focuses on all of the special offers the department store chain offers consumers, with mobile at the heart of it.

The campaign focuses on how shoppers can save on products at their convenience. The multichannel campaign will be communicated across multiple mediums, including print advertising, direct mail, email, digital, mobile and social media.

“Mobile offers retailers another powerful channel to drive sales during the holiday season,” said Nick Taylor, president of Usablenet, New York.

“With the surge in smartphone adoption this year, retailers should capitalize on this opportunity by extending holiday items and sales to mobile,” he said. “Non-optimized retail sites run the risk of losing business during the most critical quarter.”

Mr. Taylor, whose company develops mobile commerce sites, did not work with Kohl’s on the holiday campaign. He is simply a third-party source based on his expertise with mobile retail sites.

Kohl's did not respond by deadline.

Kohl’s is a family-focused specialty department store chain offering moderately priced, exclusive and national brand apparel, shoes, accessories, beauty and home products.

Kohl’s mobile
The company saw an increasing amount of consumers accessing its Web site via their smartphones and created a mobile-optimized site.

Consumers can now shop the store’s merchandise via the site, as well as read customer reviews and view ratings for items.

Additionally, consumers can view shipping deals, find the closest store, browse that day’s ad, contact customer service, view their account and their My Kohl’s Charge history.

The company expects Kohls.com sales to increase by more than 40 percent for 2010 as the site continues to be a go-to resource for shoppers.

Kohls.com offers merchandise and savings available in-store, plus thousands of online exclusives, which are now available on the mobile device as well.

Merchandising for the mobile site focused on increasing awareness of "only-at-Kohl’s" brands through holiday insights from Simply Vera Vera Wang, LC Lauren Conrad, Dana Buchman and Bobby Flay.

Recognizing that consumers are increasingly using smartphones for improved convenience and efficiency, Kohl's has made significant investments in new mobile tools designed to make shopping easier for consumers.

The popular list builder tool will once again be available on Kohls.com and on the mobile version of the site during the days leading up to Thanksgiving as an additional resource to help shoppers conveniently plan their in-store visits and preview hundreds of Early Bird offers.

A screengrab of the Kohl's mobile site

Kohl’s charge card and direct mail
Kohl’s has increased its direct mail investment and distribution.

Throughout November and December, Kohl’s Charge card customers will enjoy more days to save than last year.

Pick-Your-Day savings offers and shopping passes allow shoppers to save multiple times during key sales events. This holiday season, Kohl’s will also include an additional shopping pass with each Pick-Your-Day offer.

Kohl’s will once again distribute a bundled holiday gift guide and jewelry mailer to select Kohl’s Charge card holders, including additional ways to save.

New this year, Kohl’s will also distribute a December guide with more than 30 pages of gift ideas.

Email alerts
Kohl’s database of shopper emails continues to grow as customers look to stay updated on brands and savings opportunities.

Emails beginning the second week of November will feature offers, gifts and apparel available in-store and online, including exclusive offers available only at Kohls.com.

Kohl’s will segment emails according to customer needs, lifestyle and preference.

Recipients can link to Kohl’s Facebook page directly from their emails to share their deals.

Digital and social media
Kohl’s will increase its investment in its digital marketing strategy, leveraging social media and online advertising.

This investment reflects the continuing trend of consumers researching purchases and sharing information online.

The company has seen substantial growth of its Facebook fan base, which has more than doubled since 2009 and now exceeds 2.8 million.

As a result, Kohl’s will continue to increase interaction on the site, making it easier for customers to shop and share their experiences.

The company will promote an ongoing dialogue about Kohl’s brands, programs and gifts, increase online polling functionality and offer integrated seasonal messaging via Facebook, Twitter and YouTube.

In addition, Kohl’s will seed merchandise giveaways with consumer bloggers.

Homepage takeovers are also a component of Kohl’s holiday digital advertising strategy.

The high-impact placements provide increased interaction with customers, promoting increased brand exposure.

Throughout November and December, Kohl’s will promote sales events with nine homepage takeovers on popular sites such as AOL and Yahoo.

This year, Kohl’s will also have a presence on Oprah.com to seed messaging prior to the Jan. 1, 2011 launch of the Oprah Winfrey Network, or OWN, and an expanded paid advertising presence on Facebook.

Television and radio
Kohl’s will continue to leverage national and regional broadcast advertisements to engage customers and highlight why Kohl’s is the smartest choice this holiday season.

Broadcast spots will feature shoppers sharing how they gifted at Kohl’s by using savings tools and policies such as Kohl’s Cash, Kohl’s Charge card and Kohl's return policy.

Beginning after Thanksgiving, two 30-second national brand TV spots will run throughout the holiday season during such shows as Dancing with the Stars, Grey’s Anatomy, CSI, Survivor and Modern Family.

A mix of 15 - and 30-second TV advertising spots will support Kohl’s key sales events and highlight the company’s savings tools and differentiators.

The company continues to take advantage of radio’s strong reach with various 30-second national radio spots debuting on Nov. 2 and running through the week.

Kohl’s will once again use DJ integration throughout the holiday season with radio personalities Ryan Seacrest, Billy Bush, John Tesh and Lia.

“Customers often prefer alternative methods to browse and purchase gifts, especially this time of year,” Usablenet's Mr. Taylor said. “Mobile allows customers to avoid the crowds and engage with brands in the most accessible and convenient way.”

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