'Mobile will drive retail transactions'

Raj Singh

When the 34 year-old Raj Singh set up the Indian subsidiary of his UK-based mobile marketing company ActiveMedia Technology in Delhi in 2002, "it was a typical off-shore operation and a non-client facing business," he claims.

However, with the pan-India mobile revolution sweeping the country in the last two years, ActiveMedia quickly entered the 'mobile to TV' space offering back-end support to channels such as Aaj Tak, Discovery, Ten Sports and others to initiate viewer interactivity through the mobile.

Today, Singh, ActiveMedia's co-founder, is on the verge of introducing m-couponing (m=Mobile) in India, riding on the company's proprietory technology RAPOS (Redemption at Point of Sales).

The technology has been tried and tested with the Orange Network in the UK to offer m-coupons to film-goers visiting nearly 450 cinema halls across the country. The Oxford University alumnus spoke to Business Standard on the potential of m-couponing and mobile marketing in India. Excerpts:

What exactly is m-couponing? Does it involve paper?

It depends on the client requirement. If the physical record of a transaction is required, then yes. But if an electronic record is sufficient, then no.

For the Orange Network and cinema project in the UK, we sent an m-coupon (effectively an SMS) to the consumers. This could be redeemed at the cinema hall as the m-coupon code (embedded in the SMS) was punched into the RAPOS terminal installed at the film venue.

What are the advantages of m-couponing?

Immediacy. You can push an m-coupon at the speed of sending an SMS (usually within seconds) direct to the consumer's mobile. Post takes days and an email needs to be downloaded.

On the mobile, the time of delivery is precisely controlled. Besides, the mobile is always with you. Paper coupons need to be cut and carried while email coupons need to be printed.

Will m-couponing work in India?

Our RAPOS technology rides on and is a bridge between two of the hottest industries in India "" telecom and retail. With the relatively undeveloped state of other direct marketing channels we believe wireless is an extremely attractive opportunity for the retail industry. We are talking to telecom, retail and entertainment players in India "" just like in other markets.

How many mobile marketing outfits do we have?

Many have come and gone already! In terms of serious companies, I'd say there are around half a dozen. One of the barriers in India is the large number of telecom circles and telecom companies. This makes setting up and running a mobile marketing business quite tough.

Will marketing budgets move into the mobile space?

The mobile is still very much a nascent medium. Estimates in more developed markets put the spends on the mobile at less that one per cent of the total marketing budget.

In India, we still have some way to go to achieve even that. With mobile numbers set to hit 50 million this year, I definitely see a big increase in mobile marketing activities over the next 12 months.

Any new mobile marketing trends you could indicate?

Mobile marketing is seen as sending a pure text message, an SMS, to a consumer. We've moved away from that and think of the mobile as an interactivity tool and as a powerful direct marketing channel. It will stop being just an information or awareness-driver to a powerful 'call to action' of the consumer.

This means activating the consumer to actually transact for products and services. It will also become a richer media experience as most new phones are now multi-media enabled. People who've not used the Internet, are expected to experience the mobile version of the Net through their handsets.

Currently, Internet access is mostly at work or in college and cyber cafes. There is very little of it at home. We believe the mobile is going to drive 'Internet' out of office and college...

Are the cell operators and marketers open to mobile marketing ideas?

Yes they are, as it is a new revenue stream plus a potential loyalty driver for them. But they are aware that consumers are increasingly sensitive to getting only relevant and valuable communications.

As marketers need to communicate with the consumer, as long as he has a mobile phone they'll be interested in doing things. Spam is a big issue on the Internet.

On the mobile, it is easier, at least in theory, to control it as it is usually possible for an operator to trace the source of an SMS unlike an email. Two, it costs to send an SMS, so bulk spamming gets very expensive ""unlike a free email.