NeoMedia Technologies, Inc (NEOM)

[dlethe01]

Mobot completes spin-out transaction
December 7, 2006
http://www.mobot.com/pressroom.html

December 1, 2006
http://www.mobot.com/inthenews.html
Mobile Technology - See it, Snap it, Search it
Business 2.0

Mobile Marketing: Beyond SMS
http://www.wirelessweek.com/article/CA6387856.html
Barcode scanners, camera phones and other technologies could advance mobile marketing beyond just short codes and text messaging.
By Sue Marek
November 1, 2006
Wireless Week

Mobile marketing is no longer experimental or theoretical. Some of the biggest brands in the world are committing significant portions of their marketing and advertising budgets to the mobile channel, hoping to reach their target market and build brand awareness.

Of course, most of the mobile marketing campaigns launched so far have primarily used text messaging. For example, consumers see a short code on TV, in a magazine or on a movie poster and text the short code using SMS. In return, their vote is cast or they are entered in a sweepstakes or contest. The reason short codes and text messaging are dominating the marketing channel is simple: Text-capable handsets are prolific and cross-carrier text messaging has become commonplace.

But new technologies are starting to make headway, causing some to believe that text messaging-based marketing campaigns will soon be passé. "There are definitely more innovative applications, but you have to convince brands to try these new technologies," says Chas Fritz, chairman and founder of NeoMedia Technologies.

TEXT EDUCATION Nevertheless, mobile marketers bemoan the fact that many consumers still don't know how to text message, or find it too complex. In fact, many firms say that a big part of their agenda includes educating consumers about text messaging. Univision Online Vice President of Mobile Content & Services Chris Brunner says that media companies such as Univision are still using mobile marketing campaigns to teach people to text. "There is still a lack of knowledge in the market," Brunner says. However, he admits that it is becoming easier. "The technology is better; the handsets are there."

For text-averse consumers, some content companies have had success with interactive voice response systems. Univision's Brunner says that the company sells many more ringtones via an IVR solution than it does with text messaging. Plus, Brunner says that according to research the company did with its carrier partner Cingular Wireless, about 85 percent of the subscribers that used IVR to buy ringtones had never bought content via text messaging, so the company is tapping a market that would otherwise not have purchased mobile content.

BET Mobile reports similar results. Scott Mills, executive vice president and CFO of BET Networks, says that the company implemented IVR functionality to appeal to consumers that weren't comfortable with text messaging. "When we launched #BET, we doubled our ringtone sales," Mills says.

However, when it comes to using more advanced technology for mobile marketing – such as barcode scanners or video – there are challenges. "With video it's still hard to control the quality, and carriers want their customers to have a compelling experience," says Mike Baker, president and CEO of mobile marketing firm Enpocket.

Meanwhile, barcode scanning technology provides an easy interface for consumers. They just have to use their camera phone to take a picture of a barcode or smart code and use an application on the handset to read the code. But this technology still has challenges. Qode, which is owned by NeoMedia, has a patented qode reader technology that works with camera phones and lets users "click" on 2-dimensional smart codes and immediately get more information about a product or promotion.

Rick Szatkowski, vice president of business development at Qode, says that the qode reader application must be loaded on every handset. Plus, the company's 2-dimensional smart codes must be incorporated into all types of packaging. Nevertheless, the company believes that this application has lots of potential and it's already seeing growth in Asia.

POINT, CLICK & SEND Not all mobile marketing technologies require an embedded client or special 2-dimensional smart code. Mobot, which also is owned by Neomedia Technologies, simply requires a user to snap and send a photo to enable consumer interaction with brands.

The company is working on a mobile scavenger hunt promotion with Starbucks. According to Mark Bees, vice president of market development, the mobile scavenger hunt consists of consumers receiving text clues from Mobot and responding to those clues by taking a camera phone picture and sending it to Mobot. "This is a great example of visual recognition being used in conjunction with traditional text technology," Bees says.

But Bees believes that the next step is to combine short codes with picture messaging. Consumers can take a picture of something and send it via MMS to a 6-digit short code instead of an e-mail address. "We think our technology will be widely used when consumers can send a picture message to a 6-digit number instead of an e-mail address," Bees explains.

Another possible application of an MMS/short code combination, Bees says, is that consumers could use short codes to more easily upload user-generated content to Websites. "You can upload user-generated content using e-mail but it would be much faster with a short code," Bees says.

Mobile marketing is gaining traction with big-name brands but most campaigns are centered on text. And technologies such as barcode scanners, IVR and picture messaging are making it easier for consumers to participate.