Category Archives: Mobile

TSYS Survey: Mobile Apps Drive The New Payments Environment

Mobile apps geared towards wallets and collections of offers – but not necessarily making purchases –are a major driver of the new payments environment, according to TSYS’ 5th Annual U.S. consumer payment survey of 1,000 U.S. consumers who have both debit and credit cards. TSYS is a leading payments processor.

It is a grouping that probably favors the over-banked compared to the under-banked. Yet we look to the TSYS survey for signs of new influences on marketing and the relative clout of players such as Apple, Amazon, Google, Microsoft and eBay in a new payments environment that will impact shopping and buying behaviors for both local services and retail goods.

According to the survey, Amazon has the most downloaded mobile app, with 57 percent of respondents downloading. It is the second most used app, with 38 percent using it at least several times a month. Banking apps have been downloaded by 50 percent of respondent, and are used the most frequently by this survey’s respondents at 39 percent. Paypal follows at 52 percent downloaded/32 percent frequently used; eBay comes in at 48 percent/22 percent and Starbucks is at 29 percent/15 percent. As a category, Daily deal apps such as Groupon and Living Social are also widely disseminated, with 37 percent/19 percent.

Most Downloaded Financially Oriented Mobile Apps (Selection)
1. Amazon (38%)
2. Banking Apps (35%)
3. PayPal (32%)
4. eBay (22%)
6. Daily Deal Apps (19%)
12. Starbucks (15%)

A free report summarizing the survey notes that consumers typically look for an incentive when choosing one payment option over another. Fifty-eight percent said that they have a rewards program attached to their most preferred payment type.

WorkWave: Tackling ‘Last Mile’ Marketing for Local Services


A lot of attention has been paid to “last mile” delivery, marketing and management issues for businesses. Most of it has been focused on retail solutions (i.e. Walmart, Amazon, Google and eBay).

But what about last mile issues for local services that take products from distribution centers and deliver them to homes and businesses? Can these efforts boost business via better ordering processes and creating more efficiencies? Can they move the needle on more impulse buying?

That’s the challenge being addressed by WorkWave, a 200 person, New Jersey-based fleet management company that launched in 1984. The company has recently rebranded from Marathon Data Systems to address broader marketing issues, including the ability to use cloud-based, mobile features to track prospects, leads, schedules, routing solutions – and provide the analytics that come with that.

The company works with more than 8,000 customers. According to CEO Chris Sullens, its largest verticals include janitorial, pest control, lawn and landscape, heating and plumbing, and cleaning.

As part of the rebranding, WorkWave has acquired two businesses: RefGo, a business reviews and marketing automation preduct launched by former Local Corp. exec Malcolm Lewis; and Contact Us, a provider of online marketing tools. Features from both companies become part of the new ContactUs suite of SMB marketing solutions. Three tiers of services are currently priced from $20 to $150 a month, although Sullens says the pricing will be adjusted.

Lewis, in a statement, notes that “the beauty of our reviews product is that it provides insight into customer perception and service levels while helping clients increase lead volume and quality.”

Centro: Boost Demand Side Ads With Full Program, Not Just Programmatic

Chicago-based Centro, which helps provide targeted ad solutions to 13,000 publishers – 4,000 at any given time — says it is refocusing on providing publishers with complete Demand Side solutions that integrate first party data targeting, hyperlocal mobile tools, digital extensions and cross-channel capabilities.

Publishers increasingly want to provide greater reach for their advertisers than they can provide from their own-and-operated (O&O) properties, said Centro SVP Katie Risch and VP John Hyland in a discussion with BIA/Kelsey. “O & O solutions are becoming a smaller share of the mix.”

Centro DSP for Publishers, the new product offering, provides a wide range of mobile, display, video and social campaigns directly through Centro’s platform. An increasing amount of these efforts are automated. “Revenue is going towards self -serve,” said Risch and Hyland. “People don’t go back after they start with self-serve.”

To be sure, programmatic – an automated process of planning and placing ads on the platform – represents a big part of Centro’s evolution. Centro has committed 18 buyers specifically to support programmatic. But programmatic needs to be supported with other pieces.

“We are in an early iteration of programmatic,” said Risch and Hyland. It helps to “close the loop.” But “it doesn’t do enough to support the demand side of the business, which is critical for local targeting. The biggest challenge is how to drive demand. There has to be a human layer; a set of KPIs.”

Centro’s Brand Exchange, for instance, has enlisted 1,400 publishers. It allows auto dealers and other SMBs to call on the company to meet their needs for local inventory. With such services, “we are providing a cohesive media strategy, along with first party data.”

On Demand is New Focus for Some Home Service Providers

Competition in the home services leads space has been heating up – and so are the tensions. Just this week, Angie’s List has filed suit against Amazon, contending that Amazon Home Services has been egregiously signing up for the member’s- only service around the U.S., and grabbing proprietary service recommendations.

On Demand home services is something that several of the companies are hoping to differentiate themselves with. We saw it with HomeJoy at our LODE event a couple of weeks ago in San Francisco. Home Advisor has also been rolling out its Instant Booking on demand service.

Mizamin, an Israeli Startup with international ambitions, also hopes to get ahead with on demand home services. Its mobile app has gotten 200,000 downloads in Israel, mostly generated from a small social media ad campaign and word of mouth. CEO Yuval Aronov told us that providing home services on an on demand basis has some quirks to it. Many home pros resist keeping to real schedules and are eager to take jobs as they come up. On the other hand, certain types of jobs, such as pest control, need to be scheduled in advance.

Mizamin has built an App that enables multiple providers to receive queries in real time. When a plumbing assignment goes out to Mizamin’s roster of 40 plumbers in Tel Aviv, three-to-six usually answer, he says. The biggest channel for most plumbers have been SMS. “Some don’t use their smartphones professionally,” he says. “They are afraid to drop them in the toilet.”

Wanderful Bets on Mobile ‘Cash Dash’

Wanderful Media, the newspaper-owned promotions company, has expanded on its original Find&Save coupon portal, which now includes 500 national and regional merchants, and 18,000 brands. The new expansion efforts are focused on Cash Dash, a geolocation promotions feature found within the Find&Save Apps, and Coffee Table, an iPad-oriented retailer catalog that it acquired at the end of 2014.

The big bet is on expanding Cash Dash, which puts Wanderful’s network – which not only includes Wanderful’s newspaper owners, but also key Yellow Pages and others — into the world of incentive promotions. The original version sent promotions to shoppers while they are at retail stores and presumably, in a shopping context. A typical offer might be “Spend $15 at Walgreens, get $5 back from Find&Save.”

These aren’t real time, card-linked offers, which would provide real time feedback; more comprehensive buying information; and ties with financial institutions. In the interest of simplicity, no credit card is used. Instead, consumers snap a picture of their receipt to validate (and track) their spending on a personalized basis. The new improved version adds additional capabilities designed to add shopper frequency and spending, including a “Cash Cart” that lets shoppers select items from a weekly circular ad to create their own cash back offers.

All of the efforts require consumers to get comfortable taking photos of their receipts, and to remember to do so — something that Wanderful execs say has not been an issue.

Speaking about Cash Dash at BIA/Kelsey’s NATIONAL event in March, Dallas Morning News SVP of Business Development and Niche Products Grant Moise noted that major retailers wanted a one stop mobile promotions solution. “It has driven up to $100,000 in sales for some advertisers,” he said at that time.

AOL’s Sale to Verizon: All Eyes on Mobile and Video

Verizon’s announcement today that it will buy AOL for $4.4 billion is a bid to get beyond dumb pipes and airwaves to get deeply into mobile and video. By doing so, Verizon, a $200 Billion company,  hopes to play on more of a level playing field with other major telecom players combining access to content and personalization services, especially Comcast (with NBC U) and  AT&T (with Direct TV.)

The all-cash deal provides a 150 percent return for shareholders in AOL from when CEO Tim Armstrong came on board in 2009. The price is 17 percent above the current stock price. And at the lower price – which may ultimately be even lower if some of the content properties are sold – a lot less is riding on it.

Have you seen this movie before in 2000, when AOL was disastrously sold to Time Warner for $165 Billion?  A lot of the same synergies are being discussed:  video on demand, personalized content and subscription revenue.

But this time, it is really all about mobile; video on mobile; and the prospect of converting (or selling) 2.1 million dialup subscribers that continue to be AOL’s biggest moneymaker. Indeed,  AOL has built or bought a powerful arsenal of mobile ad serving and video tech, especially LTE Multicast, which uses its cellular network to broadcast live video.

In our view, content is not likely to be an important factor here.  It would have been more important if AOL had merged with Yahoo, or with Microsoft.  The biggest “what if” probably involves MapQuest, which has technically lagged behind mapping leaders but retains a powerful, verb-like brand in that space.  Given Uber’s $3 Billion bid to buy Nokia’s HERE, it may ultimately emerge as an important factor in the deal – much more so than Huffington Post.  AOL’s sizable effort to make Huffington Post into a super content portal, including a major local dimension, failed dramatically last year. Similarly, Armstrong’s huge, multi-hundred million dollar effort with hyperlocal site Patch amounted to very little.

To some degree, we also see Verizon’s acquisition of AOL as an acqui-hire. Verizon has  stumbled around advertising for several years but not had an impact. It also has made some small investments in content and classified properties, but hasn’t been confident enough to really spend. Its biggest effort was a promotional program with the NFL to broadcast games for free.

We like the statement issued in the name of Verizon CEO Lowell McAdam, who we note, has long had his eye on geotargeted advertising. “Verizon’s vision is to provide customers with a premium digital experience based on a global multi-screen network platform. This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience.”

Uber’s $3 Billion Bid for Nokia’s HERE: Too Much, Too Soon

As my colleague Mitch Ratcliffe points out, Uber is apparently bidding $3 billion to buy Nokia’s HERE mapping service (which was formerly NAVTEQ.) It is a huge bid that comes out of left field. But does it make sense?

A case could be made for it. Uber seems especially eager to juice its valuation before the IPO. It wants to reposition itself as an ecommerce leaders and move away from its current reality as a collection of freelance drivers. Moreover, the number of mapping competitors that it could partner with is definitely shrinking. It comes down to Google, Microsoft and perhaps, MapQuest.

If successful, Uber would control a highly customizizable mapping service that would provide shortcuts and accuracy for its deliveries of people and it hopes, commerce. HERE’s international orientation is appealing for Uber, which is a true worldwide play.

Owning HERE would especially be helpful in the next age of driver-less, autonomous vehicles (AVs), which would be highly dependent on accurate, strategically efficient information. Deep mapping is also an area that Google and Microsoft have ID’d as their competitive advantage. Watching Yelp keep its advantage against Google while depending on its search engine is enough proof to realize that depending on Google as a common carrier isn’t an ideal strategy.

But this age of AVs isn’t likely to occur for 10 years or longer. And only small items like toothbrushes and shaving cream are being delivered by existing Uber drivers. While it has aspirations and vision aplenty, it isn’t yet an ecommerce company. When/if it becomes one, a whole new set of competitors come into play (Fedex, UPS, USPS, Amazon, WalMart , Safeway).

We applaud the vision, and don’t count Uber out at all. The competitors listed above could as easily become major partners. In fact, this could be the biggest play of all. But the idea that Uber should spend $3 billion — which would only be a down payment on the high maintenance mapping industry — seems like it is too much, too soon. Google is likely to be a perfectly good and safe partner for a number of years.