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COMTEL CORPORATION LIMITED (CMO)

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COMTEL CORPORATION LIMITED (CMO) Events

Company (Stock Code)	Date/Time	Event	Timezone: Australia/NSW
COMTEL CORPORATION LIMITED (CMO)	Thu, 26 Feb 2009 02:00PM	CMO - Half Yearly Report and Accounts - Mr David Sweet, CEO
COMTEL CORPORATION LIMITED (CMO)	Wed, 5 Nov 2008 08:00AM	CMO - Comtel AGM Summary, Recapitalisation and New Investor - Mr David Sweet, CEO
COMTEL CORPORATION LIMITED (CMO) ComTel Achieves FY08 EBITDA Target	Wed, 3 Sep 2008 04:30PM	CMO - 2008 Full Year Results - Mr David Sweet, CEO
COMTEL CORPORATION LIMITED (CMO) Making Mobile Advertising a Rewarding Reality	Tue, 26 Aug 2008 11:30AM	CMO - Media Briefing - Mr Kevin Weldon, Chairman and Mr David Sweet, CEO
COMTEL CORPORATION LIMITED (CMO)	Wed, 25 Jun 2008 04:30PM	CMO - MicroEquities Initiation of Coverage - Fond Lim, Equities Analyst, MicroEquities
COMTEL CORPORATION LIMITED (CMO)	Tue, 24 Jun 2008 11:00AM	CMO - 2008 Rising Stars Micro Cap Conference - Mr David Sweet, CEO
COMTEL CORPORATION LIMITED (CMO)	Thu, 28 Feb 2008 08:30AM	CMO - 2008 Half Year Results - Mr David Sweet, MD
COMTEL CORPORATION LIMITED (CMO)	Tue, 24 Feb 2009 11:00PM	Interim Results
COMTEL CORPORATION LIMITED (CMO)	Fri, 31 Oct 2008 09:00AM	Annual General Meeting Level 10, 77 Pacific Highway, North Sydney, NSW
COMTEL CORPORATION LIMITED (CMO)	Tue, 23 Sep 2008	Full Year Results
COMTEL CORPORATION LIMITED (CMO)	Sun, 6 Jan 2008 11:00PM	EGM
COMTEL CORPORATION LIMITED (CMO)	Thu, 8 Nov 2007 09:00AM	Annual General Meeting Unit 18, 39 Herbert Street, St Leonards, Sydney
COMTEL CORPORATION LIMITED (CMO)	Fri, 31 Aug 2007	Full Year Results
COMTEL CORPORATION LIMITED (CMO)	Tue, 27 Feb 2007 11:00PM	Interim Results
COMTEL CORPORATION LIMITED (CMO)	Mon, 20 Nov 2006 09:00AM	Annual General Meeting Level 2, 45 Stirling Highway Nedlands WA 6009
COMTEL CORPORATION LIMITED (CMO)	Thu, 28 Sep 2006	Full Year Results
COMTEL CORPORATION LIMITED (CMO)	Wed, 15 Mar 2006 11:00PM	Interim Results
COMTEL CORPORATION LIMITED (CMO)	Mon, 28 Nov 2005 11:30AM 01:30AM Australia/WA	Annual General Meeting
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COMTEL CORPORATION LIMITED (CMO)

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CMO - Media briefing - Mr. Kevin Weldon, Chairman and Mr. David Sweet, CEO.

“Making Mobile Advertising a Rewarding Reality”

http://www.brr.com.au/event/50026

 

TUESDAY, AUGUST 26, 2008, 11:30AM.

 

            CMO    Thanks for coming on this call on a frosty morning. My name is Kevin Weldon, and I am the Chairman of ComTel. And my background is varied and that I’ve always been involved in -- only 15 years of very exciting new product

10                    areas from books to music. Certain styles the company have been started many years ago around -- to introduce a lot of good and bad qualities in the service regarding (inaudible) (0:00:30) many years ago. And of the many years of the boards getting excited of being attached to good, exciting, young people who have vision of where they’re going and where you can see the

15                    business being global. My success in the past would be because I sold my product worldwide. I have an interest with many companies. Again, a company called Imagination Entertainment. RedLight has made it very big in America too. Games company in the world has spread and held and I’ve just been over delighted with a -- that developed radio network to go in with the

20                    television and alliance game show network and they obviously are developing a lot of mobile games. And whether ComTel can afford to take the game global a lot of us will be excited. ComTel, and what you’re going to bring on today has two mainstream product -- mobile phones and direct marketing internet advertising unit. Those things combined will be able to be the first

25                    company, globally, that has both internet and mobile. So what you’re seeing here today is my excitement as the Chairman of the Board. And the board’s excitement is potential through all this business out worldwide and that will happen, I’m sure. Before I will get to talk of that we’ve got (to buy). I think that’s about all I need to say before I hand over to David Sweet, he’s the good

30                    looking young man in the corner, and Paul McFadden, the Chief Operating Officer. And they’re here the marketing man and the marketing genius. So let me -- I reminded David just a few minutes ago that this is EBITDA rate we’re staying on so I have a tie on and I reminded him that (inaudible) (0:02:56) delivering files since having a bad time. And I’d get back to the ties. And what

35                    I find different in this day and ages that you can never tell the difference between a journalist and an analysts now. So we got back lots here, have we? But I must say that I put up my anxieties to the journalist. It’s interesting isn’t it? In my day you’d tell them because the journalists were -- and the analyst that may -- someway too long, but they further do in that situation.

40

            CMO    Thanks, Kevin. Thank you for coming today. I’ll keep it short and sweet so to speak. I’ll give you a brief introduction to -- I guess where I saw the market moving overtime. We’re fortunate that we might have a very smart acquisition last year in November. We didn’t had communications and that served us – it

45                    really bring a fast track to what I’m going to talk about today. So, mobile advertising and online advertising is all about commission based and opting-in to something. It’s about having relevant content, it’s about having large brands and small brands and developing solutions to the consumer that the consumer wants, needs, and obviously values. Interesting thing is that if you look at consumers, we all do same things -- we eat, we need to buy things, we’ve got wants that have to be satisfied. And if you look at advertisers, They’ve got these products that they want to get to people because it’s relevant to what consumers want. The biggest challenge is actually putting

5                      two together in a media that someone has with them. I guess one of the analogies I put is not too many people in here are carrying a television in their pocket with them. There’s very few people that have a radio. Now they -- several got these MP3 players which you’ve got songs on it, but it is not about listening to advertisement on a radio anymore because even people driving

10                    their cars have MP3’s on and they don’t use the radio. The newspaper, well, that’s interesting as well. You might carry a newspaper in your bag and when you get a spare five minutes, you might pick it up and read it. Bit the one thing we all have -- and I can see quite a few men in here obviously -- we all carry a mobile phone around us. And we are look at our mobile phone and

15                    guarantee when the phone rings, half of the people in this room, if they hear a phone ring will guide their pocket because they’re not sure whether it’s their ring or some person next to them. And if they hear a text beep, they’ll grab it and go, “Oh is that a text message for me?” So, we’ve overcome -- really, I guess, reliant on a mobile phone and that means it’s from -- I guess, where

20                    history is being with -- first print then radio, then television, well, now we’ve gone to the mobile phone. And if you look at those three mediums and what was the most powerful today, television will be. So you’ve gone from print, to radio, to TV, to mobile. The phenomenon world says that it will become the biggest media for advertising over the coming years. And so what do I – as

25                    ComTel see as the opportunity it’s     getting close to lifestyle. I’m sure everyone’s commencing here are grumbling a little bit. You’re thinking, “Oh, I wonder what I'm going to have today.” Well, everybody in the world is in the same position. Come 11:30 or 12 o’clock, they get hungry. The mobile is a way that you can actually deliver to eat and I might get burger and soda –

30                    excuse me for using a hamburger on here, but this a hamburger chain who wants to draw up people through their door. They want -- they sell predominantly between 11:30 and 2:00 and then they sell between 5 o’clock and 7 o’clock at night. What we do is we are enabling them to be able to get to consumers to get them to walk in the door. So, 11:30, 12 o’clock, takes

35                    messages through the phone and says, “Half price hamburgers go and visit x”. And what our consumer will do is, they might not be hungry for a hamburger at that point but they were going to go. “Oh, okay, this is really good. Yeah I want to get some of those in offers because I’m going to buy food everyday”, and if I can get food at a discount, then you satisfy my need

40                    of being hungry. You satisfy my other need especially in these times where people are looking to save money so they can afford all the things that they want to afford including petron in car, et cetera. And you basically satisfy the advertiser’s need which is a need to get people in to those stores. So when time to get tough, how can I get more people in. Today, we have the largest

45                    commission-based online advertising group in Australia. We have 500,000 profiled members who told us 59 different demographic questions with their likes and need, what they want in their age, and where they live and all of those sorts of criteria. So we can put advertisers in touch with those 500,000 people and deliver a really compelling offer. Someone will ask me later on, “Is it expensive? I’m sure because I’m not dealing with the expense and the pricing up appear.” But because we can target the ads, a text message had targeted to a consumer in their demographic is less than posting a direct mail piece to their house and hoping you’d get to the person. Having a video ad

5                      delivered to them is under a dollar. So when you think about a production of a video ad to put on television which runs into the hundreds of thousands of dollars, we can deliver a mobile video for under a dollar to a targeted audience. And for example, rather going to 100,000 people or 800,000 who watch Big Brother each week, none of these people would be in our target

10                    audience we can deliver to 30,000, 40,000, 50,000 people in the target audience for a fraction in the cost of delivering a full Blyk ad to the market. So, that’s pretty powerful. Today we also have the largest base of over 140,000 who’ve opted-in to receive mobile ads. So the beauty of ComTel is it’s online -- via email and it’s mobile. We have both. SMSPup Mobile is a fully

15                    integrated service where consumers can receive the equivalent value of an Cat plans in the market for $29 you can get $130 worth of call value. We’ve taken a competitive plan by that. Giving it to people for $10 in return for receiving mobile ads. So what’s important about that is that there are consumers who want to receive cheaper mobile cost and they’re happy to

20                    receive advertising. But for ComTel that -- this is a great integrated product. We also deal with all the consumers who don’t want to have a mobile plan with us who want to stay with their existing carrier, but who want to receive value offers on their mobile phones. So, for us it’s, SMSPup mobile is the answer to the consumer who wants both, but we also deliver to everyone

25                    else. I guess, most of you would have heard of Blyk. Blyk is a UK business. It’s a mobile service provider and they offer advertising to consumers and free mobile service. Lots of great headlines about them had been written about since December when they launched -- actually written about for a year before their launch. I actually met with them, I was in the UK only a month or

30                    so ago and talked with them. Their challenge as a business is getting a critical mass so that the advertising can. We already have the mass. We have over half a million people who receive ads. So, we’ve got a successful business that deals with the advertisers, that gives them the critical mass to get to the consumers they want to get to. We’ve taken the stocks of putting

35                    the mobile business out there as well in the same thing as Blyk, because we have a mobile business and we have an advertising business and the logical step is you put the two together. So, this is a value ad to ComTel. . We’re not reliant as Blyk is on driving in out to hundreds of thousands of people, which by the way -- interesting the highlights of Blyk are, they have over 100,000

40                    subscribers since their launch in December which is great result for them, but they need that critical mass to give the advertisers the right solution. We’ve got the critical mass at out of our existing business. So this is really about being first to market in Australia with the solution that is already showing success over in the UK. There’s a bit more of that. You can read about – pop

45                    some articles in the back up here. I hope it’s today so you can read up on. I guess now, back to Australia, because as I’m talking now the UK but we live in Australia, there is a lot of demand and a lot of talk at the moment about mobile ads and mobile spin going up and advertising looking for way the next growth market is. We’ve had lots of advertising companies talked about haw they’re going to invest millions of dollars in building and advertising business. I’m very simple as a person and I say it’s great to have an advertising business, but if we don’t have consumers to advertise to what you’re going to do? Australia has one of the most strict opt-in or permission-based

5                      regulations in the world. The UK actually has more. So, for the success of Blyk, it’s because it’s a regulated market. Australia is a regulated market. So, to -- for advertising agencies to say we’re going to build this business, they’ve got to start from scratch, they don’t have consumers, or they’re going to require the consumers. Ways the business have just focused on having the

10                    consumers there already. So, I guess -- yeah, there’s some interesting statistics, is more mobile phones now in Australia than there are people. The average, Australia spends 28 hours per week online, so everyone moved towards the internet to become a great media for grabbing information. And for the business, the market is expected that will grow 300% this year, I

15                    mean, there are some fantastic numbers out there about when mobile advertising will be, how many millions and billions of dollars we’ll be generating by 2012 and 2020. But there’s no doubt. I mean, I understand the Mobile phone will be the device that people have in a position where they will receive offers. And that’s mobile advertising. We understand the fairly big

20                    database, we do lots of things with them, we advertised to them, they fill in the research questionnaires and we’re going -- and we talk to our customers, being the people who already know us and love us. And 6,500 people responded to the survey we sent there. Fifty percent of them we consider as saving mobile ads. That’s consistent with the research that was done in the

25                    US, it’s consistent with researching in the UK. Forty percent of them -- because we tallied on -- obviously the questionnaire to find out some information -- 40% said they pay too much for their mobile. Now that’s lot of people are going “Hey, whoa! It’s expensive.”  Eighty percent said they would expect mobile advertising to be received on their phone. Now that’s -- 50%

30                    are happy to receive but there’s 30% saying, “I’m going to get ads. I didn’t actually opted-in for them, but now I’m going to receive ads.”  We don’t do that. We only send ads out to the people who have given us permission in the same thing. Interestingly enough the device they couldn’t do without, the mobile phone is No. 1. No. 2 was the laptop and PC, and TV come in third.

35                    So as you know a really, really interesting thing. We can’t do without the device, is that we communicate with whether it’d be voice, whether it’d be via email or whatever. Where -- we are a generation of information-hungry people, and they are the medium that we’re getting through. So, I guess, an interesting run down here -- quarter of people didn’t actually contemplate that

40                    they hit their paper for $1 because advertises pay the cost of production. So, there’s a lot of people out there who don’t     understand how advertising issues as the means for producing papers at a cost. So, for us having the right infrastructure is pretty cool. We’ve got a power communications which is a database of people that have given us permission to send out information.

45                    We’ve got an MVNO business which means we can produce a right mobile plan which we give to people cheaper in return for saving advertising. And basically, we‘ve got a proven technology that putting two together is to supplement a solution for consumers who want that solution. This is the summary sheet. Commission-based marketing is value. Post-paid mobile service and rewards are equal to SMSPup Mobile. Basically, we’re here to look at consumers, what consumers want, and how ways of business can deliver that solution. Whether it be purely an SMSPup mobile or whether it’d be to their existing mobile is about delivering value offers to consumers

5                      relevant to their interest and needs. And that’s where we’re at So, thank you. Some questions?

 

            Q         So these are ComTel’s (inaudible) (0:17:39)?

 

            CMO    We operate on the Vodafone Network.

 

            Q         Vodafone.

 

            CMO    Yeah.

 

15        Q         And how many users you’ve got?

 

            CMO    We’ve got around 130,000 mobile users and we have half a million commission-based “opt-in” consumers.

20

            Q         We’re planning to save towards the customer handset or are you improving your handset?

 

            CMO    People bring their own in handset. Yeah.

25

            Q         Will you be marketing handsets along with this (offer)?

 

            CMO    Good question. Most of people who have been looking at the mobile offer are looking for a saving. Everyone knows that with the mobile phone there is no

30                    such thing as a free lunch or a free mobile phone.  You do get hit by having to sign-up for a 24-month program. You can come to us. IF you don’t want the service you can leave. If you don’t want receive advertising you can opt-in just to receive the mobile plan and you’d go back up to $29 a month. So, we are about freedom, we are about choice for the consumer. Therefore, at this

35                    stage we believe providing a handset is a lock-in and a negative for the consumers that are looking for this start of service.

 

            CMO    David, I think the question is in this graph because it could be ambiguous, Is that the -- it’s not just Vodafone, anybody that’s got phone and I think they’ve

40                    devised -- the company has devised something that (take in) different parts of mobile phones and platforms that they can do to. This (involved) different plans and no matter who the carrier is that went just over.

 

            CMO    Pup Mobile is Vodafone but we go out to a...

45

            CMO    ..it’s like -- the -- in fact go out to Vodafone.

 

            Q         What...

 

            CMO    Vodafone.

 

            CMO    Yeah.

 

5          CMO    That’s a good question.

 

            CMO    One of the interesting things is about choice. And for us, consumers like to make simple choices. And one of the things we are absolutely focused on is, if someone wants to choose SMSPup Mobile and come to us and change

10                    carrier to go on Vodafone -- so, they’re on Telstra today and they want to move to get the service they can. If they don’t want to, they can still receive the benefit of ads and value offers, and that’s obviously where SMSPup fits in what we do. So, pop a handset in there and lock them in for 24 months is not in the principles or, I guess, our belief of what we want to offer to consumers

15                    which is -- it’s your choice. Come and use it, it’s a great service. If you don’t want to, then that’s okay you can go back to where you were before.

 

            Q         Is it just SMS based advertising at the moment?

 

20        CMO    No, we do also video ads, so MMS-based.

 

            Q         MMS-based?

 

            CMO    Yes.

25

            Q         Is it placement -- better ads, viewing online mobile ads and things like that or is that too long term for you in the moment?

 

            CMO    No. I think a consumer’s devices get richer -- so 3G was -- now, more people

30                    are spending time on the mobile phone looking at the internet, then there is the opportunity to do that. I guess one of my concerns for consumers out there is that, kids especially, were going to a laptop at time over the computer and they look at Facebook and now do this -- download them, et cetera. You do that on a mobile phone and you’re bill will be going through the roof. So,

35                    we’re not encouraging people to do massive amounts of online data because we think the actual bills will be back to the old days of bill shock. And you think you’re going to pay $79 and you get all this             data. It doesn’t have the capacity like the internet does. So, as a business, the two will always work hand in hand. One will not replace the other. When it becomes more

40                    effective, we will look at doing better ads, but at this stage no.

 

            CMO    .I think -- I heard an example this morning over the phone called -- from BMW saying they’ve got a new model coming out in November. This sort of thing can -- and on the customers so they have one mobile phone. I’m sure all the

45                    customers will use that product. And what we can do is we can get one big normal ads of the car. We can push that down (inaudible) (0:21:55) saying that a new model is coming, (inaudible) (0:21:59) brochure. We can put down that line and show them the car. So, give an understanding down the line. With that thing we could target special customer bases, that we can use other customer’s bases. I think that’s my point. (Inaudible) (0:22:17).

            Q         Yes. Has there been any consideration to going where the mobile users are in targeting specific edge to that geographic area…

5

            CMO    We do that because of the profiling the (eminent) database

 

            Q         I understand you know when they’ll announce it someday.

 

            CMO    Interestingly enough, triangulation with GPS tracking, there’s two ways you can do it. Most phones don’t have GPS in it so you can’t use satellite to understand. Triangulation, which the networks -- they’re looking and going. They’re about there. This very much are talked and it’s being talked. I use to be a director at Vodafone and there was a talk back in back in 2001 about

15                    triangulation and trying to get specifics. I think the actual resource driving on the network has made that quite hard to deliver. They will get better at it and there will be a way to deliver which is much more effective across all of them. So that they definitely know which base are phone will be made from. I can see you can identify that. But to work on that, I guess, in the timeframe, for

20                    example, with prepaid where they seek, “can we send something to them,” there’s a whole bunch of things needed to be resolved including things like privacy and, “Should I do these rules?” We do it around the location where someone lives more so than looking for a spot in their window just because it’s a little bit too complicated at moment to do that. But --

25

            Q         I was told the last 10 years have been mobile presumably.

 

            CMO    It should have been. I don’t know...

 

30        Q         Though in turn it’s good to see (inaudible) (0:24:00).

 

            CMO    That’s right.

 

            CMO    It comes off brilliantly -- it’s been so -- that’s the nature.

35

            Q         So you need them to communicate that to you. To actually sit there the whole time holding back into the network to know where the phones are -- is the part that makes it quiet. The reason was try in one end.

 

40        Q         That was (inaudible) (0:24:23) things they do, there’s no interest in that. With (Inaudible) (0:24:29) and computers, there’s only one thing important than considering and making sure that the right (inaudible) (0:24:40) so they don’t get damaged.

 

45        CMO    Yes, but -- I mean, we control so we have the IP and technology behind what we see now. So, once again, very, very controlled environment. So far, all I’ve been hearing were a couple of viruses that we know would be synced to a mobile phone via text. My encouragement to all people is, if you don’t know where the text is from, delete it. And that’s why with us, it actually comes through on the mobile number saying it’s in this part, it had been going on a trusted, open -- so far it is in control and a safe environment.

 

            Q         I think to bring out some of that, about 10 years ago, some people tried a free

5                      internet service using advertising. And also, at the same time, I think they  tried a free long distance call services (inaudible) (0:25:40). Why did they file and why we’re losing so?

 

            CMO    Good question. This is -- so for us -- this is an edge on to our business, this is

10                    not a core business. We have a business. We’ve forecast and forecast the market which we agreed around three or four times that we would deliver 8 million EBITDA forecast this year. It’s very hard to start business from scratch, make it free, and generate money. So, if we were, for example, starting this service today, like Blyk in the UK, you started with the base of

15                    zero, you try to encourage advertises to pay you money to get to your consumers, if you got 1000 consumers you’re not going to get many advertises, if you got 10,000 consumers you get a couple of more advertises than you would before. If you got a 100,000, your people are interested. When you can go to them and say, we have half a million people today that

20                    we can deliver ads to online and through mobile, we have a business that works. So, I guess my simple way of answering it is, this service will gain consumers. People will go on. If it didn’t work, as a business, do we fail? Absolutely not because we have a very sound business behind us. This is about delivering an additional service that today has launched in another

25                    country, has gained success. And therefore, there are a bunch of consumers. At least consumer 1/3 of the size of the UK, but we do tend to eat, drink and probably being married in a similar way to the UK people. So, we believe there is a market here for that and we’ve delivered a service that we believe there will be a demand for.

30

            CMO    And I’m going to add to that. That the UK operation is going fine and suddenly they’re going to do that pretty (square) internet, very success cash flow, business (in pounds), then I think there is more chance that we will -- we will be working with them in England which is really the (inaudible) (0:27:52).

35

            Q         Hey, David, do you want to comment on the (Inaudible) (0:27:55)?

 

            CMO    To the internet?

 

40        Q         To the weblink doing those long-distance free services.

 

            CMO    So, I guess it terms of…

 

            Q         Repeat the question? So, do you want me...

45

            CMO    We don’t have it actually done on those offices?

 

            Q         No.

 

            CMO    We’re interrupted during the (bungle).

 

            Q         Okay. Okay.

 

5          CMO    So it’s interrupted services. I guess...

 

            Q         Where are you 10 years ago, David?

 

            CMO    Where was I 10 years -- I was living in New Zealand. The -- this is about

10                    you’ve absolutely highlighted a point which is, this is about sending information through when someone has a time to look at it. It’s not about interrupting as you said. We don’t force someone to read the message. We’re not forcing someone to read the email. It’s internet from a trusted source that they can look at when they want. So, I guess one of the things, Our view in

15                    this all along -- I get a bit complacent because I’ve been looking and dreaming this out for a long time now -- is that consumers are very much about “I want information when I want to. It’s not about telling me what I have to do, I don’t want to be stopped doing what I’m doing. And when I want to look at something, I’ll take the time.”  So, once again, with the text message if

20                    the phone beeped in here and everyone looked down, they’d find -- they show as an SMSPup mobile message, they would go, “Yeah, I’ll on them online,” put it back in their pocket, and when they’re ready they’ll look at it. Unlike obviously the previous services which you had to sit there -- you had to watch it, you had to wait until finished and then we had to get on to the next

25                    one. So, I think definitely in terms of a non-interrupt basis that will be successful as well.

 

            Q         How many messages will the user receive through that?

 

30        CMO    Up to four a day in both text and email, so one key part of this service is it’s about both mediums -- their email and mobile. And really, it will depend on what advertises are wanting to achieve, whether they want to -- so some people will want to put a really rich ad together which we’ve sent to an email address which is one basic co-direction offers. I guess, one of the things I feel

35                    personally, so this is just a personal. I can’t see us selling too many Ferraris on a mobile phones ad, but then again selling the concept of “I want to get information about a Ferrari”, you might get that at high -- as just a general information pack. The mobile will be about more immediate call to action response. The emails we send will be more about a hype that this is a

40                    branding type of experience for people. So you’ve got to look at the advertisement and what they are trying to achieve to work out which medium is the best medium for them.

 

            CMO    David, wouldn’t it be a good example if you had a stadium outfield and you

45                    leave the select stadium and you can send out a message quickly on the mobile to get to take at a half price with big discount for less (inaudible) (0:31:02) test they did on the offer. It’s safe to assure by half percent and we feel it’s safe and that they’ve got big response with that.

            CMO    So, once again, our targeted audience, that it was going to people in a certain age group with a certain cultural interest. They soared our proceeds and they literally went in a space of 15 minutes. But that -- once again, you can deliver that immediately to a mobile phone; if you deliver that to the email, you don’t

5                      know whether you’re going to get to those people because they are not always sitting at their computer. So you know it’s kind of causes for causes in what you’re trying to achieve.

 

            Q         In that mobile market, there’s nothing that’s compelling in the way where you

10                    say -- or I could say it’s taking you straight to delete. I’ll say it’s from SMSPup. Again, let’s have -- toss it and bang delete, it gone, it never gets read. There’s nothing in the mobile like watching TV commercial compels us to read it.

            CMO    We actually have a response, action with both mobile offers and with their emails which says, “Do you want to know more about this,” and they can click

15                    it, and then we know whether or not they are interested in it. So we reward people for responding and being an active member of their databases. A key part of the offer is that people need to be active, they need to be telling us if the information is not the sort of information they want. So, we’re absolutely major for the advertiser, responses, activity, and I guess result to go through

20                    the sales because everyone wants to sell their products.

 

            Q         Within that response mechanism mode, does that come of with a bill or is that subsidized by the advertisers?

 

25        CMO    No. So the response can be a click on the link, it can be “Click Here” to go through the call centres so we can connect them directly through a call centre to order. For example, cheap flights going to Brisbane Click Here, bang, they click on that, it dials the call center, “I want one of those cheap flights to Brisbane.”  All dealt within the same way as they make a phone call. So, they

30                    will pay for their activity. Should it be a outbound call, text, et cetera. And that’s my point, clearly, in terms when you buy a phone.

 

            Q         So inevitably, any response you make the advertisers are saying cut off your phone bill rather than (inaudible) (0:33:21) advertisers.

 

            CMO    Yup, this calls can go online, don’t forget and go on to the internet. If they don’t want to pay for a response off the phone, they can go on to the internet and do a free response from there. So they are not forced to make a response to the text message.

40

            Q         What you are telling is, if you want to be a part of this service, you have to came up with a certain way to get (your reaction with us).

 

            CMO    Yup, by the internet as well.

45

            Q         ...great.

 

            CMO    No, they can do it that on the internet. So they have an email address that says, whether if they choose not to make a cost on their phone they just simply go home at night, and go home and download what is the offer off the internet and respond online which is free. So, we’re absolutely not trying to increase the cost of their mobile phone bill. They have a choice. A lot of people may choose to just respond there because it’s an immediate one. But

5                      for example with the Burger Ad, I’m sure the hamburger chain is not going to care less whether they knew exactly how many people took it without looking at their sales and what their expected sales on it. Basically it’d spike and we’re happy. There are a lot of people who came in from it.

 

10        Q         So, get everyone in the corner and they’ll come to you.

 

            CMO    We’ve got around 130 users on the tel and mobile users. What are the infiltration rate and how do the market prepare our business or prepare (inaudible) (0:34:34)?

15

            CMO    We are not actually targeting our own mobile users with this. This is a service which is designed to go to, first of all, the people who use smspup and then secondly, it’s about other consumers. So it’s -- we will in time talk to the consumers we have on postpaid. We have a lot of a people on the prepaid

20                    who we don’t necessarily communicate with. This is a postpaid service so we will talk to the postpaid customers. Generally speaking, our ad demographic in a postpaid (buns) is an older demographic. We believe that demographic for this will be a younger demographic. So for us, this is a bit of a new group of consumers we’re talking to.

25

            Q         (Inaudible) (0:35:19)

 

            CMO    Depending on the amount of advertising we put to we’re on an equivalent margin, working on up to five messages a day. So, we’ve modelled it to be a

30                    making money, from day one perspective, it’s not a loss

 

            Q         Are there any compelling case studies around users in the UK for advertisers that actually show that this is having some success in terms of their campaigns that they are running through these kinds of channels. So, tell me

35                    about that impression if people are reading the messages, or that they’re acting upon?

 

            CMO    So we have our own case studies from our email databases, so we’ve got some very compelling results from that. In terms of oblique for example,

40                    putting it, we haven’t come across any case studies. But I guess things are new, they’re probably not willing to go and tell the rest of the world how successful it is because maybe they think everyone will jump into this space.

 

            Q         But what was the (inaudible) (0:36:25) would say, that was a case study, was

45                    it?

 

            CMO    Yeah.

 

            Q         ...we would have to be suspicious of?

 

            CMO    Well, I guess the question is in terms of, how accurate can you measure the sales, drawing people into a store with they may or may not.

 

5          CMO    That’s was (revoked).

 

            CMO    That was revoked. So, people went in the quarter (inaudible) (0:36:51) result. Where -- it’s a harder mechanism to absolutely be sure of what the results are. Are this -- in my analogy there is -- we have a lot of our paid business in

10                    there -- online email, commission based database. We now, we deliver results because they come back. A lot of advertises are I guess, a little bit tight on telling you they’re fine with those results because if the medium has worked and they necessarily won, their competitors are now in the battle. So, our -- sort of our -- I guess I’d take some of the results and say -- yeah, it’s

15                    been successful. Obviously, if they’ve come back and use it again they’re happy with the results. But having it to be a number that you could rely, I’m not sure. I haven’t seen other than saying that...

 

            Q         ...the new mobile advertising units?

20

            CMO    So this is just in the process of being launched, smspup and other. Yeah. IT did -- that the websites live, we’re starting to go out, talking to people...

            Q         In the radio, (pretty most what they’ve got) in how they’re advertising it.

 

25        CMO    So, we’ll talk to all the smspup consumers. We haven’t done that yet, we’ve started with a brief -- we’ve got...

 

            Q         I mean the advertisers.

 

30        CMO    Oh, the advertisers, absolutely --yes. Now, we’ve -- so over the people we’ve talked to -- about this new service and getting into mobile advertising, more than half of them said they want to know how they can do in mobile and advertising campaign within criteria’s. So you know once again they don’t want to upset consumers, they want to make sure that everything is in place.

35                    They want to do a test and then they’ll see what the results are. So we’ve had  a very positive response from the advertisers about how they get to people on this type of service.

 

            Q         (Inaudible) (0:38:44).

40

            CMO    Yes, we’re actually recommending they do both. Okay.

 

            Q         Just the other day, David, they looked -- it’s very popular now with the recruitment companies because of the (inaudible) (0:39:01).

45

            CMO    Okay.

 

            Q         And I think it’s predominantly young people that say that it’s not just the corporate services ones (inaudible) (0:39:13).

 

            CMO    That’s people, yeah. We do get -- interestingly enough you get surveys that people are looking to find out information for new products as well. That’s much easier done online but we can actually do a text message to drive

5                      people to fill out a survey and that I think...

 

            CMO    In the very recent testing, (inaudible) (0:39:32) a test of the campaign or the test the different parts of the campaign. That’s the -- it’s not that they’ll need (principal) for a lot of product advertisers, it’s nothing like a television or a

10                    newspaper.

 

            CMO    No.

 

            CMO    I think it’s part.

15

            CMO    That’s part of it. So, I guess, thank you all for coming. The message from us is, this is for consumers, there is a benefit for consumers if the market is going there. We have customers already using online and we’re extending it to the mobile phone.      So, thanks very much. I think we’ve got some food

20                    coming in or going out or on the balcony. Coming out in the balcony. All right, so, please, ask any questions if you want. Enjoy some food and thankyou so much for your time and attendance and questions. Thank you.

 

INTERVIEW CONCLUDED

 

 

 

 

Contact brr@brr.com.au for more information

 

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