Category Archives: mobile advertising

Spotlight: Open Fundraising

Open Fundraising, an ad agency that works exclusively with charities, found itself in a perfect storm three years ago. Just as mobile was becoming the personal communications platform of choice for consumers, the government said that it wouldn’t tax mobile services and operators agreed that they were keen to give as much as possible to charities seeking a new form of revenue here. 

This, with the fact that “no one else was doing the same thing”, meant Open Fundraising found itself in the position to help its clients use the mobile channel to increase giving and open up communications with supporters. “We didn’t set out to be a tech company – we did this because no one else could,” says James Briggs, creative director of Open Fundraising. 

“Out of nowhere came a really amazing payment system, with a response mechanism for traditional media,” he says. “We thought, ‘wow, what would happen if we tried this out for someone we work with?’. We took out a full-page ad for Christian Aid in the Guardian’s Saturday magazine explaining that every 45 seconds a child dies of malaria and asked people to text ‘net’ to donate. 

“The initial response prompted us to try the same in other papers and then on trains and other places where people are hanging around with phones in their hand. This is how we can be sure that people use their phones while they’re on the toilet,” he adds. “Before we knew it, we had thousands of new donors all putting their hands up and saying ‘I want to help children dying from malaria’.” 

Premium-rate hangover 

As a new form of giving, the effort was not without its challenges. The hangover from the heady days of Crazy Frog meant all SMS campaigns were regulated by the PhonePayPlus trade body, which specified a mandatory STOP opt-out. “But for charities”, says Briggs, “this was not a good message. It was like we were saying ‘we don’t want you’.” Briggs headed down to meet PhonePayPlus with the head of individual giving from UNICEF – which has been “blazing a trail” in mobilising the third sector –  to put the case for an alternative system. 

PhonePayPlus agreed to change the rules so charities are exempt from having to communicate STOP every month and can instead give the option to SKIP a gift rather than cancel. “We were excited to test that system,” he says. This messaging system is now used by 18 of the top 20 UK charities. 

How big is this opportunity?  

As early as 2010, explains the company’s MD, Tim Longfoot, the Red Nose Day campaign processed 250,000 donations online, 750,000 using the traditional telethon mechanism, while 4.2m people texted their contribution. Today £150,000 worth of donations pass through Open Fundraising’s Mobilise platform each month and within a year of its launch, the agency expects to have taken more than £1m in mobile gifts. Longfoot says the value and volume is doubling each month too.  

“70 per cent of what Open does is still writing to older people,” he says. “The reason we’ve seen such extraordinary growth in our mobile operations is because it’s easy. On the same device that money is taken, communication is overseen. People actually read texts; no one reads corporate charity emails. And the option to skip puts the control firmly in the hands of the donor.” 

Donors text back 

Open Fundraising ran a campaign for Breakthrough Breast Cancer as part of Breast Cancer Awareness Month, to “put health information into purses and handbags”. The integrated campaign started with print ads to request information, which was fulfilled with a phone call and followed by monthly reminders to help women follow the advice. “Then we started receiving text replies from women whose lives had been touched by cancer. We were surprised by this, and then we realised we really shouldn’t have been,” Longfoot says. “This is a really personal interaction on exactly the right platform.” 

So what about other types of mobile communications? “We are not here to sell you an app,” says Paul de Gregorio, head of mobile with the agency. “That might change as smartphone connections get faster, but SMS is number one for us on mobile today. Simon Cowell knows just how powerful text and TV is. Mobile blurs on and offline, traditional with newer channels.” 

Making activists of Middle England 

“Our Friends of the Earth bee campaign – where you text ‘bees’ to give £3 and receive bee-friendly flower seeds as a thank you – proved that we were creating activists in ‘Middle England’, not just ‘bored young people’, as had been one accusation,” he says. “People also criticise this as ‘armchair activism’, but it’s exactly the same thing whether you are approached in the street or respond via text to a print ad. In fact, smartphones actually make giving into a mass market.” 

“We’re an ad agency using all the marketing tricks to achieve good things,” he adds. “I like advertising – so to be able to do it for good is just amazing. This is the future of where fundraising and change will happen.”

Written for Mobile Marketing Magazine and published here: http://www.mobilemarketingmagazine.com/content/spotlight-open-fundraising#MrTtv2jmX1BRVUVi.99

Analysis: Yahoo’s Q2 Results and Mayer’s First Year as CEO

Yahoo’s Q2 earnings call is something of a judgement on Marissa Mayer’s first 12 months in the job – as she took over as CEO almost exactly a year ago – but the mixed picture shows that much of the hard work is still to be done. 

GAAP revenue stood at $1.14bn (£750m), a seven per cent decrease on a year ago, but on a brighter note, profits increased by 46 per cent to $331m, largely as a result of Yahoo’s investment in Chinese eCommerce site, Alibaba. If you take revenues minus traffic acquisition costs (the money internet companies pay out to affiliates and other third parties who drive traffic to their sites), revenues are down just 1 per cent from $1.08bn to $1.07bn, and remain flat from the previous quarter. Yahoo’s display revenue was $472m, a 12 per cent decrease compared to a year ago, and search was down nine per cent to $418m. 


Reacting to the results, Karsten Weide, IDC’s program VP of digital media and entertainment, told Mobile Marketing: “Yahoo’s stock price has gone up by 70 per cent since Marissa Mayer took over, and that has made a lot of people happy. However, most of that growth was due the perceived value of Yahoo’s stake in Alibaba. Alibaba will soon go public, and people think it is going to send a lot of money Yahoo’s way, and theirs. 


“In terms of Yahoo’s core business, not much has happened that would justify this increase in stock price. Display advertising has been weak lately. For one, that’s because a lot of display advertising now goes mobile, and Yahoo is weak on the mobile platform. For another, a lot of advertising agencies now want to buy advertising automatically and in this new, so-called ‘programmatic trading’ segment, Yahoo is weak, while Google and Facebook are strong.” 


Acquisitions 


Yahoo spent a net $1bn in cash for acquisitions during the period, $970m of this on Tumblr. Mayer counts eight buyouts, including Astrid, GoPollGo, MileWise, Loki Studios, Tumblr, Playerscale, Ghostbird and Rondee, plus Summly, although this closed late in Q1 and was announced in the previous earnings call. Eight of these had some mobile element to them, everything from the Summly news aggregator to Astrid’s popular productivity apps and location-aware gaming from Loki Studios. 


“Generally, companies of their size are buying mobile start-ups – they need the talent, especially user interface and user experience, along with audience and ideas,” said Julie Ask, VP and principal analyst at Forrester. “Consumers’ time is increasingly spent on mobile devices – whether a phone or a tablet or other. Yahoo and others who depend on ad revenue need large, engaged audiences there – not only for growth, but also to maintain a revenue base.”  


While six of these ‘acqui-hire’ companies have closed and been rolled into Yahoo’s mobile teams out of NYC and California, including putting Summly centre stage in the new Yahoo app, Tumblr and cross-platform back-end gaming service Playerscale have remained intact, with Astrid, which had 4m users in September last year, to remain in operation for 90 days from 1 May. 


Yahoo believes that the combination of Tumblr and Yahoo will grow its audience to more than 1bn monthly visitors from 300m in Q1.  Although a great deal has been made of Yahoo’s aggressive acquisition strategy, totalling 12 for the first half of this year, Google has actually made almost 150 acquisitions in its 12-year history, compared to Yahoo’s 83 in 16 years. 


Marcos Sanchez, VP Global Corporate Communications at App Annie, is positive about the work being done to change Yahoo’s fortunes. “From all accounts, Mayer has been doing a great job of breathing life back in to Yahoo, from re-focusing, to improving company morale to revamping products with a definite mobile bent,” he said. 


“The mobile products have been streamlined and she’s put a focus on usability, which is likely to be a contributing factor to the apps at least not losing ground. From an acquisition standpoint, don’t forget, there are many reasons for an acquisition, and not just for a technology. Mayer has proven savvy even here, shuttering some, keeping a few alive, but maintaining teams that are focused on bringing yahoo back to its’ glory days.”


Written for Mobile Marketing Magazine and published here: http://www.mobilemarketingmagazine.com/content/analysis-yahoos-q2-earnings-and-meyers-first-year-ceo#pGVPFJh7WI2b55Gf.99