Please join us at the 2011 All About Mobile conference, taking place November 15, in San Francisco.
From the Desktop to Client-Server to the Cloud...All About Mobile is the premier ISV conference for the next transformation of the Software Industry -- going mobile!
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Mobility News 
Mobile Payments Get Currency
Wed, 25 Apr 2012 15:55
The FTC is looking at mobile payments this Thursday, an event that caps several weeks of intense attention to this innovative new technology by policymakers. In March the House Financial Services Committee and the Senate Banking Committee held hearings. And the Internet Caucus held a Congressional briefing, which I chaired.
Several years ago a study by ITIF highlighted mobile payment’s opportunities for efficiencies, growth and innovation. It wondered why it hadn’t taken off in the US, the way it had in other jurisdictions such as Japan and Korea. Since then Square, Intuit, Google, ISIS, PayPal have all ramped up their efforts to bring the new service to consumers and retailers in an attractive easy to use package. The majority of Americans will be embracing mobile payments by 2020, a Pew Internet study found last week.
The benefits are enormous. Mobile payment technology means faster checkout, more through put for merchants, the opportunity to send and receive offers and promotions, greater security, and a platform for new innovative services that haven’t been created yet.
It is worth pausing on the benefits of increased security. Unlike traditional magnetic stripe payment card transactions, mobile payments use a different security code for each transaction. Even if the transaction data is compromised, it cannot be used to make a counterfeit card that would work at the point of sale. This takes the merchant system out of harm’s way and reduces risk to cardholders. Mobile payments implemented on a smartphone can also be protected by a password or PIN number, adding barriers to illicit use of a lost or stolen phone. If asked to choose based on security, shoppers would be smart to use mobile payments over traditional cards.
Some have suggested that mobile payments create increased privacy risks because new information would be available to new players. But these risks are speculative and are being addressed in advance by market players who design their systems to be privacy-protective. They know that the market will only work on the basis of trust, careful handling of personal information, and a compelling user experience.
Mobile payment providers collect location information from their users, but only with affirmative consent. Product specific information isn’t collected at all and so cannot be added to a consumer profile to target ads. Cell phone and email information are available to mobile payment service providers at the time of sign up, but are not transferred to third parties such as retailers. Mobile payment services are savvy enough to avoid the mistake of allowing secret, undesirable acquisition of contact information by third parties. Under the Google Wallet rules, for example, contact information could not be disclosed to a retailer for marketing or advertising purposes without affirmative consent.
The privacy default for mobile payments is that consent is needed for any sharing of consumers’ personal information for marketing purposes. Industry participants have set up their systems with this requirement for consent as the default. This privacy-by-default approach renders concerns about privacy violations more theoretical than real. Mobile payment users can feel confident that they can enjoy the conveniences and added security and usefulness of mobile payments without worrying about privacy violations.
Mark MacCarthy, Vice President, Public Policy at SIIA, directs SIIA’s public policy initiatives in the areas of intellectual property enforcement, information privacy, cybersecurity, cloud computing and the promotion of educational technology.
SIIA Survey: Marketing Executives Believe Social Media is an Effective Tool; Not Yet Investing Significant Resources
Wed, 08 Feb 2012 18:51
SIIA’s Software Division today released “Marketing in Today’s Economy”— the first SIIA publication to gather business-to-business sales and marketing tactics from leading industry executives. As part of the guide, SIIA joined with Lopez Research to conduct a comprehensive survey of more than 100 marketing executives in North America. The survey focused on their companies’ use of email, mobile marketing and social media to build their brands, gain leads, and improve customer support.
One of the most eye-opening findings from the study is that a gap exists between attitudes towards social media and investment in social media. About 90 percent of marketing executives surveyed use social media marketing, and three quarters believe it has a positive impact on their business. At the same time slightly more than half (54.5 percent) of respondents said their company’s marketing team spends less than 10 hours per week investing in social media. And further, 35 percent said they spend only between one and five hours per week on social media marketing.
Social media has clearly become a widely used tool among B2B marketers and few doubt that it is helping their business. But the survey also shows that marketers may not be dedicating the resources necessary to get the results they want from social media marketing. It is remarkable to see that, despite their strong belief in the power of social media, over one-third of marketers are engaged in it for only five hours or fewer every week.
The survey suggests that marketers do recognize the need to dedicate more resources to their social media efforts going forward. About 65 percent of respondents cited social media as an area in which they would like to invest more spending, and over 70 percent indicated they expect to increase their use of both Twitter and Linkedin in the year ahead. And importantly, marketers are beginning to apply the same ROI metrics to social media that they do for other marketing efforts, both offline and online. For example, 59 percent of businesses are using social media use web traffic as an indicator of social media ROI, while 53 percent are using qualified leads as a key ROI metric.
Social media is still a relatively new method for growing a business, but marketers clearly believe it is has value and will require greater investment. And with more marketers now applying traditional ROI metrics—such as qualified leads—to their social media efforts, they are more likely to get a clear sense of what level of investment makes sense. The maturation process of social media is clearly underway, and we can expect to see significant advancements in the coming years.
The survey looked at wide range of issues, and found a number of other results that are important for marketers—including:
• 75 percent of respondents do not outsource any social media efforts.
• Nearly 60 percent of respondents said that less than 5 percent of their deals began through social network interactions.
• Privacy is the top ethical concern in today’s marketing world.
• Most marketers predict that the biggest trend in 2012 will be greater communication and quantification of value to customers.
The Software Division conducted the survey in conjunction with Lopez Research during the fourth quarter of 2011. The survey interviewed 106 marketing executives, of which 88 percent were business-to-business marketers.
In addition to the survey, Marketing in Today’s Economy features commentary from 16 leading marketing experts whose companies provide technology solutions or services across a spectrum of industries. The authors offer expertise on a wide range of B2B marketing trends and best practices—from social media to search engine optimization and cloud marketing.
Rhianna Collier is VP for the Software Division at SIIA.
Interview with new SIIA member Socialize
Thu, 02 Feb 2012 14:38
I was delighted to recently welcome Socialize to the SIIA membership. I had a chance to catch up with Daniel Odio the CEO and Co-founder to learn more about the drop-in social platform. Read my interview with Daniel below.
Rhianna: Welcome to SIIA! Tell me a little about Socialize and the benefits for making apps social.
Daniel: Making apps social boosts app discovery (downloads) and user engagement (impressions). It creates a viral loop where users share content with each other and their social networks, which leads to more downloads, which leads to more users, which leads to more social actions all over again.
Rhianna: This week you made an announcement about notifications. Why is this feature significant?
Daniel: SmartAlert notifications “Bring users back” to the app. For example, when a user makes a comment on a piece of content in an app, and subscribes to that thread, and then another user comments on the first user’s comment, the first user gets a SmartAlert notification inviting them back into the app to see what the second user wrote.
Rhianna: You recently moved your company to San Francisco. Obviously, the Bay Area is the home of many great technology companies. How important is it for technology start-ups to be local to the Bay Area? Or does it matter?
Daniel: It’s critical. There’s a great article on my move west at http://go.DanielOdio.com/west. The environment in the San Francisco bay area is world class and results in the ability to make connections, make key hires, and iterate on the business at a speed that is unmatched anywhere else in the world. As I like to say, San Francisco is “Mecca for Geeks.”
Rhianna: You recently participated in a panel led by the Department of Homeland Security at CES. What are some of the privacy and security issues you face versus the traditional software/hardware vendors? How do you address and ease these fears?
Daniel: Often times the least secure part of a device is the human using it. And that’s where we focus – in this realm security concerns are mixed with privacy concerns. Oftentimes, users don’t know the implications of their actions by design – we work hard to abstract a level of complexity into an easy-to-use service. This means we bear a responsibility to ensure the user doesn’t compromise themselves in ways they don’t even realize. A big chunk of the value we add with our social infrastructure offering is to give the user ways to navigate privacy issues in easy to understand and friendly ways.
Rhianna: Finally, look ahead for me 18 months, what will be the biggest trends in social?
Daniel: Two big trends are converging and we’ll see them in full force in the next 18 months: The explosion of interest-based social, and the power of the Open Graph. Interest-based social isn’t the same thing as the social graph we all know from Facebook. It’s way bigger and more powerful. It’s the connections we all share based on interests, regardless of ‘friend’ status. For example, interest-based groups include people of the same ethnicity, people who love zinfandel wine, co-workers, people who love to sail, and the list goes on. We are all comprised of a series of interests, and for the first time, technology (and mobile in particular) is enabling us to map all those interests and connections, and begin to monetize them.
The Open Graph is an initiative by Facebook to get everyone to share all of their actions – what songs they are listening to, what they are reading, etc. This confluence of mapping interests to people and sharing of all actions will mean the power and reach of social will be exploding in the next 18 months. More about this topic at http://go.danielodio.com/interestgraph and a screencast on why mobile is way bigger than most people realize is at http://go.DanielOdio.com/waybigger
Rhianna Collier is VP for the Software Division at SIIA.
