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CHARLIE HUNTER-SCHYFF: I feel like the villain up here after
a bit of a Telefonica O2 slating from the panel.
But I shall try and address those
challenges during my section.
So O2 is all about connecting customers to the things that
are important to them and that carry their interests and
their passions.
And we try to sell advertising to those customers.
So from our point of view, we have to do it in a way that
doesn't upset our customers.
So we've got some challenges there.
But first of all, I'm going to give you a quick kind of
visual metaphor as to how O2 Media does that.
So everyone knows that lots of advertising, over half of it
in fact, gets lost, goes unnoticed, falls on
uninterested eyes and ears.
That's why O2 Media was created, to engage with people
who are interested, who do take notice, on a one-to-one
basis, not one mass media market, but engaging millions
of people as individuals.
And that's what we're about is that we've got
22 million O2 customers.
And what we need to do is, if we're going to communicate ads
to our audience base, is that we need to treat it with
respect to make sure that it's personalized and treated to
individuals.
So here's consumer insights.
We're always monitoring how quickly people are reading
text messages.
And whenever they come out of the tube, it's one of those
instantly things.
But there's a big cautionary sign around here.
And we did some statistically unreliable research, some
observational research.
Whereby, you notice when people are coming out of the
tube, they suddenly stop and check.
They read their message or reply.
So I'm going to try and test this now.
All the men in the room, please raise your
white marker batten.
And all the ladies in the room, please raise your red
marker batten.
Excellent.
So could those people that do stop when they receive a text
message coming out of the tube leave their battens up.
And those people that don't, please put their battens down.
Wow!
Do you know what?
I'm going to have to take a photo of this because this is
inconclusive.
My colleagues in the office told me, you're going to see a
male/ female split here.
You know, I don't think there is a split.
I'm really excited about that.
So what I'm going to do, I'll take the photo of this.
And I'll put it up on Twitter.
So that everyone else can get a sense of whether it is a
male/ female biased--
Fantastic!
Thank you very much.
Right.
The next kind of consumer insight that we found was this
big topic about SoLoMo.
And we've heard a lot about this today, in fact.
And it's all about this killer app.
Well, I've got the perfect social, local,
mobile, killer app.
It's called Wife SAT NAV. It's brilliant.
Basically what it does, or she, she texts me where I
should go off and meet my mates because
sometimes I'm lazy.
I admit it.
I've go too much on my plate at work.
So I'll just say, where can I go to meet with my mates for a
nice place around.
And I'll get a text message going back.
Says great, out on my night out with the boys.
And she knows what I'm like.
And she'll know, come about 10:30, that I'm on a roll.
And I'll get text message with all the
train times, brilliant.
Love it, organization.
So come last orders, I get to the station.
But Wife SAT NAV knows me quite well.
I'm on the last train home.
And I've got a lovely seat, nice, cozy, getting all warm
and snuggly.
And gone--
I'm out, out for the count, asleep.
It's just that motion.
And I'll get calls at this point.
It's like making sure that I stay awake so that I don't
miss my train.
Because she knows me well, and I've missed my train.
And I've missed my stop quite a few times.
But joking aside, there is actually an
important point here.
And that is that, when your out in the kind of the social,
local, and the real space, that the smartphone is being
used for all these really cool functionality.
It's not just the mobile browsing.
It's not just the phone.
It's the text messaging.
It's a combination of all those three which make it
really powerful.
For example, the kind of stats that we've got here is that if
they're going to meet their mates in the pub, that they'll
use the GPS services.
But if they're out shopping, and they see great offer in
real time that actually they think their mates
will quite like it.
They'll take an MMS photo of it.
And text message it straight to mates.
I was actually really surprised by that figure of
63% because I was expecting that the social networking
posting of the offers and coupons was going
to be so much more.
But it's only 4%, which is really surprising.
Smartphones are loved by our customers,
not loved but liked.
We've done some really cool ethnographic research where
they physically feel sick if we threaten to take their
mobile phones with them.
They are so addicted to it.
And I think it's a fair comment to say that they have
this personal relationship with their phone,
significantly more with smartphone owners in fact.
Next year is really exciting because--
this analysis is from Enders research.
The guys back in a Telefonica HQ would kill me if I told
what our penetration will be next year, for smartphones.
So I have to use an independent source.
But meaning to say, it is fairly similar to this.
And that is the critical mass for retailers, for brands, for
advertisers, is how exciting that critical mass of a
smartphone gets through.
Predominantly, mobile using is about keeping connected.
And we're seeing that people are checking in using
Facebook, using internet.
And what's really interesting is how that pattern has
actually emerged for the last few years.
When smartphones first came out, it was all about status
symbol, got to have the latest kind of iPhone.
And you know what?
They weren't really using it for its full potential.
Now what we're actually seeing is this real shift from a
status symbol to this practical use for smartphones.
And we're seeing all audience segments use the smartphone.
Busy moms love it because it--
as Dave was mentioning, the processing power of these
little computers is immense.
It does so much for them.
So long gone are the days whereby you just saw the
status seeker.
He had the iPhone I on his laptop and on his desk
just to show off.
And he's checking in, in the latest cool bar.
Everyone's got it.
And that's the key.
And that's a really exciting bit for the operators next
year, as well.
Time-- we hear a lot of people saying, oh well I
don't really use.
I still use my laptop.
What we're actually finding is that more people who have a
smartphone are actually using the smartphone mobile internet
browsing at home more than their laptop because it's so
much quicker.
I certainly do the same.
You know, it's so much easier just to bounce straight onto
the mobile internet on my smartphone because it doesn't
take about 10 minutes to warm up and boot up on my laptop.
But when you actually chunk down that time and that usage,
we're seeing that it's about an hour a day.
Or it's-- sorry-- about 25% are spending an hour day.
And I don't think that's much.
When you chunk it up, and you look at your
own behavior today.
You'll probably maybe find that you've had bit session of
Angry Birds in between a meeting.
You've caught up on emails in a coffee shop.
And then maybe you've had a really hectic day.
You actually just want a timeout and
catch up on maybe iPlayer.
And that's the really interesting thing the brands
need to understand, if they're going to use this mobile
environment.
It's how that content gets consumed.
And this is my favorite mobile kind of consumption stats.
You've got these two different kind of like mindsets at how
people are consuming the mobile internet.
You've got those people which you call binge drinkers.
And they're consuming loads and loads of content really
fast, banging it out to their mates as quickly as possible.
Versus those people that are in that chocolate moment, that
self-indulgent time, where they actually want time out
from the world, where they just actually want to take out
all the focus away from us.
Have a look, you could see these people that are in these
kind of a different kind of consumption modes.
You'll see those people, the binge drinkers.
And they're frantic.
They've got the paper in one hand and the
mobile on their lap.
And they're trying to do so much.
Whereas, you can have someone naked walks right past the
people in that chocolate fix.
And they won't notice that naked person has walked by.
So people are actually really receptive to mobile
advertising, which is really surprising.
Because normally when you ask people would you like to get
advertising through text messaging on your mobile
phone, no, don't want it.
Hate it.
It's spam.
It's intrusive.
It's against my privacy and all that kind of stuff.
But then you say, well how about we give you a 15% offer,
or a 30% offer at Gap, or a 50p
offer coupon for Starbucks.
And oh yeah, yeah, well that's different.
That's useful to me.
It's not really.
It's just advertising.
But check this out.
This really just blows me away.
This is a TV ad for Linx, which we sent as a video MS to
the Linx audience base.
And 77% of people said they want more of this media.
But hang on.
You said that you didn't want advertising on you phone.
This is just a TV ad.
So what people say isn't
necessarily always as clear-cut.
So it's kind of, we've been going now for-- we've been
building O2 Media for about 2 and 1/2 years.
And we've had to go through this process of testing the
boundaries because normally people say that they don't
want advertising.
But we've been very, very cautious about this approach.
How we're getting away with it is we've currently got 6.5
million people opted in to receive mobile advertising for
very straightforward text messaging.
And it's on the scale to traditional media channels,
such as it's slightly bigger than Emmerdale or two issues
of the Sun.
But what's really important about it is that we make sure
that we try to deliver it to make it personalized, try to
make sure that for an advertiser perspective that we
reach the right person that they want to talk to.
So I was really gutted about what Peter and Brad were
saying on the panel is that they don't feel that the
messages that they're getting from O2
are necessarily relevant.
Hands up.
I'm really sorry for that.
And that's something that we look to address.
And I was chatting to Brad in the coffee break about how we
can probably work with that.
And I think that maybe the challenge with Brad is that
maybe the preferences weren't set right on his Priority
Moments Out.
So for us, it's all about making sure that we understand
the right data about the individuals to get that
relevancy right.
Here's a great example.
So you look at kind of like similar profile of these two
demographics, age, male, lives in London.
From an advertisers perspective,
yep great, get it.
That's the audience I want to buy.
However when you look at the data, actually they're hugely
poles apart in kind of audience segments.
You've got Calvin, who's got the iPhone, the old one.
And he's checked in in a bar Friday night at 9:00 AM--
sorry, at 9:00 PM on a Friday night-- bought tickets to
Arcade Fire from maybe Priority Ticketing, and tagged
his mates from his mobile phone on Facebook, just
basically loves to play.
Got really kind of like pay-and-go tariff, as well.
So we're building lots of profile data about him.
Versus Dean, who's already got the iPhone 5.
Don't know how.
He's checked in 9:00 AM Monday.
So that his peers know what time he got into the office.
So he's really competitive, really ambitious.
And he's redeemed his mobile phone for
maybe his mobile wallet.
And he's a regular flyer.
So we're seeing lots of roaming data about Dean.
So you can see completely different
audience segments emerged.
To deliver this, we need to have the trust. And I'll get
this kind of like white elephant out
the room, as well.
I always get asked, what about privacy and trust?
We really need to do a good job of this.
And that's why I was gutted, is that we really try to make
sure that we deliver best practice.
Because without delivering best practices, our customers
actually leave us.
So it's actually detrimental for our whole business
strategy if customers opt out because they will go to a
different channel or a different operator.
So it's really taken to heart.
We monitor this in three ways.
We monitor it on kind of like a quarterly customer
satisfaction survey, not tight enough from my perspective.
Getting more tighter, is we monitor it from advertising
effectiveness campaigns.
So that we'll actually ask, after heavyweight campaigns,
did you like it?
What was your perception of it?
Do you want more of it?
Don't you want more of it?
So we're getting a good lifestyle
statement or picture.
But more importantly, and the real-time way that we monitor
it, at the end of every advertising
message is an opt out.
So any customer, any time can opt out to receiving these
text messages, which gives us that real kind of a finger on
the pulse as to whether customers are appreciating,
liking them, or ensuring that they just stop the messages.
So that they could stay a customer of O2 but stop
getting the advertising messages.
It was 2010, World Cup year, World Cup football year, and
big opportunity for advertisers to communicate to
football fan audience base.
And we'd just moved out of Slough into this tiny little
office on the edge of [UNINTELLIGIBLE] road, above
Carpetrights.
And it was an engineers office.
So there was all these maps everywhere around the room
with the cell sites.
You know, the network masks of where they
are all around London.
And there was these loads of masks around the Olympic
sites, around the Wembley Stadium, and a lot of kind of
like the high concentration areas of where people gather.
And I'd just come off a call to the data
guys back in Slough.
And they said, great news for you.
We've got 50,000 football fans.
And I was gutted, I said, ugh.
Well, that's not going to do Nike, or Adidas, or Coca Cola
any good if they want to leverage their sponsorship of
the World Cup.
Well, this is how--
these cell sites and these maps are how we can actually
generate engagement and generate relevancy for a mass
audience through data.
What we did was, we looked at all the premiership football
grounds, identified those customers that were going
there on a football match.
And then we looked at, again, that cell site on a non-match
day, subtracted the two.
We were left with an engaged football audience.
And that gave us about five million.
So all of a sudden, through understanding data, you are
achieving a real scale of an audience to communicate your
message through mobile.
Make it really go that one level beyond and actually
target them when they're at the football ground.
We're getting a huge success with this location-based
messaging service that we're rolling out.
And brands like Subway, Burger King, McDonald's, they're all
jumping on board.
And the pinpoint accuracy that we were able to
deliver on this is--
Well, just before we launched we had our CEO come into the
office to make sure that we were
doing everything correctly.
And they came and go, ha gotcha.
I got the location based message, and it was just two
blocks away.
And we though, oh OK.
So we actually thought we'd get this challenge.
So in the message, we put the coordinates, the longitude and
latitude coordinates, into the text message.
So when he showed us the text message, we plugged in the
longitude and latitude.
And it was pinpoint accuracy to where he was when he
received that message.
So we've got that real ability to match that location base
with the real time to deliver that relevancy.
So brands and advertisers can really use this to generate
that footfall.
And it's not just necessarily footfall that they--
It's not just about delivering offers.
McDonald's did this campaign where they were actually just
trying to generate engagement, generate getting people to
engage with the Monopoly Triple Play promotion.
And they found that over 50% of people actually receiving
that location-based message walked into a McDonald's.
So the scale at which that can achieve is huge.
Likewise, with Starbucks, and this was they were actually
doing a 50p off.
And they found that 14% of those people that received the
message generated an offer.
Which the guys back at the OMD and BrandScience did an
eco-metric modeling and discovered that mobile was the
most efficient way at generating return on
investment, more so than their other media channels.
What I'm saying here is that mobile shouldn't act alone.
You need to understand how it is working
with other media channels.
So we know that the mobile is on all the time with the
consumer, as their alarm clock.
And they're just checking in to see what happens on
Facebook and Twitter before they go to bed.
So it's with them the whole day.
So understand how those experiences can be used for
your benefit.
For example, we did a game-changing campaign with
Linx, where they had an outdoor poster.
And it was this experiential kind of campaign for the
Angels Might Fall.
So if you walked on to this kind of like square area in
one of the forecourts, I think it was Victoria station.
You walked onto it.
Up on the big kind of like experiential outdoor poster,
you saw yourself.
And right alongside you, this angel dropped.
So what we did is we amplified that message.
Is that we sent a location-based message to the
target audience around half a mile of the train stations to
encourage their target audience to actually
interact with it.
So it was quite cool.
Our other kind of like play in this location-based services
is similar to the Foursquare, actually.
So rather than me explaining how it is, I'm going to let
the O2 kind of advocate, Sean Bean, explain it.
SEAN BEAN: Priority Moments from O2 are here, giving you
exclusive offers and experiences from top High
Street brands, all day and every day.
From meals, books, and fashion accessories to half-price
cinema tickets, and all at the touch of a button, this is
priority moments.
Text moments to 2020 to join.
CHARLIE HUNTER-SCHYFF: Thanks, Sean.
So why we did this was quite interesting.
The whole reason why we sponsored the O2 was not to
put our name above the door.
It was actually a loyalty scheme.
It was just to give customers a little treat as to whether--
You know, so that they could get tickets 48 hours before
any other customer.
So it's a brilliant kind of loyalty scheme.
Now our challenge, at O2, is that we've got this what's
called the cupcake analogy.
It's that our customers already know that they've got
their cake with the cherry on the top.
So they're kind of like--
the customer insight that came back was, well, give me the
cup of tea.
So the point that we're trying to do with the Priority
Moments is making that priority moment from the O2,
where customers can get 48 hour tickets before, into
everyday life.
So that then they're walking down the street.
And they don't need to build up any kind of loyalty.
They're just literally using it as a tool.
So they come walking down the street and say, ***, I've
left my print out for Zizzi's on the kitchen
table for my offer.
Do you know what?
***, open up the phone, there is the offer I want.
So I really encourage you to have a play around if you are
O2 customers.
But please, have a look at your preferences on it.
So that you don't get the female offers, if you're a
male, because you might end up getting lots of
messages about spa days.
If you're into that, that's cool.
But if you want Odeon Cinema tickets, make sure you put
that up to the top.
Now our kind of position, again, it's absolutely in the
marketplace about trying to be personalized.
So I do take it to heart that we need to deliver on that.
And our play is that it's open for everyone, any customer can
use it and use it for however they want.
And the more that they use it, the better experience that
they should hopefully get out of it.
For us, the really exciting piece is the mobile wallets,
as well, coming out.
Because then you get that whole 360 analysis, that
redemption rate closed up, which is really exciting.
And what we're seeing, at the moment, is we're seeing the
savvy shoppers, all those innovative
shoppers at the moment.
They're absolutely armed to the teeth with so many apps on
their mobile phone.
And their walking into store.
They're then maybe checking in.
They're checking all the voucher plays.
They're then--
they use the barcode scanners.
They're engaging lots of content.
But they're also asking the staff for their opinion.
They're still getting that real life kind of experience
as to, tell me a bit more about the product.
How's it look.
And they will also, as David was mentioning, they will know
whether those products are in stock.
If they don't like what they hear, they will--
Instead of walking out and buying the product online at
home, they'll actually buy the product from their
competitors, in your own store.
Or they'll use their mobile wallet to
purchase the product.
We're a bit far off there, yet.
I have to say.
I'm not sure what the Google Wallet purchase price is.
But at the moment, with ourselves, we've only got like
a 30 pound limits on the mobile wallet, which is great
for your everyday items. Coffees, it
makes it really easy.
But I'm sure one day, or a couple of months, you'll get
there with the high purchase items.
Really fortunate, this was backed-up again, by Ogilvy.
And this whole paper, this white paper, that they wrote
was called "Armed to Charm." So it's a real kind of good
thought leadership piece, where it's making sure that
retailers understand that the majority is going to be using
these mobile applications.
So they need to be ready and get the infrastructure in
place because they're going to be expecting a good
experience.
So thank you very much.
Just to conclude, the key take outs for me is that messaging
one to one is unique.
Customers understand it.
And it gets that kind of instant dialogue going.
Always ensure that you've got a good customer mobile
experience.
Understand how customers are wanting to consume you as a
brand because then you'll get a positive brand experience.
If you get the app right and get that content right, you
get cut through because you're with the customer all day
long, in the pocket.
And don't forget, mobile is an experience.
People are using it to enhance their every day experiences.
And those everyday experiences also
include other media channels.
So thank you.