PHONEPAYPLUS MOBILE REVIEW – ONE YEAR ON

PhonepayPlus, the phone-paid services regulator, today announces that complaint figures concerning mobile services are down by half one year on from the introduction of new rules that came about following its 2008 Mobile Review. The new regulation was introduced in response to a worrying rise in consumer complaints regarding mobile services which, on average, account for some 90% of all calls to PhonepayPlus’ Contact Centre.

PhonepayPlus is releasing these figures at the industry launch of its Annual Report in London today, where it will also announce that its Chairman, Sir Alistair Graham, has accepted an invitation to stay in post for a further three years.

PhonepayPlus’ complaint figures show that:

• Total complaints regarding mobile services are down 57% from June 2008 compared to May 2009 (2,125 vs 919)
• Consumer complaints regarding mobile subscription services have almost halved since the introduction of the new rules (1,207 vs 651)
• Consumer complaints about unsolicited text messages are down by 85% from the first half of 2008/9 compared to the second half (1,538 vs 230)

Commenting, PhonepayPlus Chief Executive, Paul Whiteing, said: “These results show that we are heading in the right direction and sorting the good from the bad in mobile services. It is early days, and we are still analysing the various impacts on our complaint numbers, but these are an encouraging set of results that appear to demonstrate the effectiveness of the new rules, as supported by responsible providers in the sector.

He continued: “However we are not complacent and remain vigilant for any new opportunistic activity that may result in consumer harm. This risk is especially acute since, with a country in the midst of recession, we expect the PRS industry to be attractive to unscrupulous operators looking for ways to make a fast profit. We remain committed to being proactive in preventing non-compliant services from making it to market.”

Mobile Review: the rules

PhonepayPlus’ Mobile Review set out new rules for the mobile phone-paid services sector. It stated that services could not be advertised as free unless they were free from any associated charges; set new rules around trading of third party marketing lists; and introduced a prior permissions scheme for subscription services costing upwards of £4.50 in any given week. The Review also reinforced PhonepayPlus’ zero tolerance of any failure of the ‘STOP’ command for opting out of receiving unwanted contact by text message.

To view the Annual Report in full click here

To view the PhonepayPlus Mobile Review click here

Below are some of the main points to consider when using print advertising as a method of promotion:

Effective tracking of campaigns – using multiple numbers of the same service to track variations in ad design and places of publication. Sometimes something as simple as a change of headline text can switch an ad campaign from a loss to a profit. We are happy to provide multiple numbers for use in different campaigns.

Negotiation with the publishers – advertising salesmen will generally offer you their book price from the start, which they will expect you to negotiate downwards. I would half the initial cost straight away. Once you build a rapport and they know you are a serious advertiser, they will generally be accommodating. Ask them for “late space” deals, which all publications have available when their deadline is approaching.

Making use of residual effect – basically, most publications have a long tail effect. This is especially apparent with adult magazines, which can produce income for up to 2 years from date of publication. The more adverts you have out there, the larger the base level of residual income, you are creating. Over time, this makes your advertising efforts more likely to turn a profit when taking into account your overall portfolio.

Thinking outside the box – there is clearly a lot of competition in the print industry from very established players. You may find that publications such as FHM actually have exclusivity deals with other providers and will not allow the advertising of adult services. It’s important to look at how you can do things differently. Most people will follow the crowd. All you need to do is get a copy of the daily sport and you will see thousands of similar ads. What is going to make your advert or proposition different and unique? Sometimes it is possible to “spin” an existing idea or service to appeal to a different audience, for example.

Economies of scale – let’s take the daily sport, for example. In terms of £ per column inch cost, we found that this figure could be drastically slashed by buying a half page and then splitting it up into smaller advert units. This space could even be resold (as an agency would do) to recover the cost. You could resell a quarter page, probably cheaper than from the sport direct, and recoup enough money to effectively make the other quarter page “free” for you. This is obviously easier said than done but you get the idea.

Advertisement Size – In terms of visibility, we normally recommend quarter pages or larger in publications. The smaller ads tend to get lost in the competition. We found the better % returns on investment came from the larger sized adverts. They are also normally discounted in terms of £ per column inch, and therefore obviously better value.

Run length – most publications offer further heavy discounts for booking space in advance. If you book space for the next 12 months, you can expect a much better deal. You can also then normally negotiate the better positions. i.e. inside covers, top right pages, etc etc

Payout rates of services – This one goes without saying. Getting the best possible payout rates for your services can actually be the difference between making and losing money for some people. Across the industry, payout rates vary wildly. Bluewave Media offers competitive payout rates and can almost always match or exceed your current supplier rates. If you are considering allocating a budget to print advertising, please feel free to contact us to see if we can improve your payouts for you.

The main point you should take away from this article is that print advertising is not necessarily the “get rich quick” solution that many people think it is. It can however, produce extremely impressive results, if you can get the various factors correct and working for you.

We have strong links with several agencies who specialise in premium rate advertising. Please contact us on 0844 736 2685 for details.

This means that each month, assuming your revenue has reached the £10.00 minimum threshold, we will generate and send you an invoice for your accounting records. This document acts an invoice from YOU to US for the revenues owed to you.

If you are VAT registered, you will need to provide us with your VAT number and a copy of your VAT certificate. We will then be able to add the VAT figure onto your self billing invoice. Please note that we will not be able to pay VAT on your payment unless we are provided with a valid and current VAT number for your company.

Revenue payments and self-billing invoices for both telephony and SMS customers will be sent out on or around 15th of each month (45 days after month end).

PHONEPAYPLUS BEGINS CONSULTATION ON 12^TH CODE OF PRACTICE

24 June 2009

PhonepayPlus, the regulator for the phone-paid services industry, has today launched a wide-ranging discussion paper on the development of its 12th Code of Practice. PhonepayPlus is inviting response from industry, consumers and all other stakeholders in order to properly inform thinking as it develops its full Code consultation for later in 2009.

The paper takes into account recommendations made by Ofcom in its recent PRS Scope Review.

The Code of Practice is the document through which PhonepayPlus regulates the phone-paid services industry, enabling it to protect consumers from harm while providing reputable businesses with every opportunity to develop new, useful products and services for consumers to enjoy using their phones.

The 12^th revision of the Code will be among the most significant in the organisation’s 23-year history. PhonepayPlus intends to carry out a thorough examination of the current version to determine how it might be improved, especially with regard to developments in this technologically fast-paced industry, such as the explosion of mobile phone-paid services, which have changed the face of the industry in recent years.

Recognising it cannot regulate effectively in isolation from industry and other regulators PhonepayPlus is publishing this discussion paper ahead of an initial draft of the new Code, upon which it and Ofcom will consult later this year.

PhonepayPlus proposes, and explores the impact of, four main changes to its regulatory regime in the discussion paper. These are:

1. That the new Code is based on identifying desirable outcomes, and supporting them with rules where appropriate, rather than prescribing a step-by-step guide to compliance

2. That every business in the phone-paid services value chain will assume an appropriate degree of responsibility for the provision of compliant services and the delivery of consumer protection measures

3. The creation of a database on which all Service Providers (SPs) and Information Providers (IPs) will be registered for due diligence and risk management purposes

4. That providers must have in place adequate customer care facilities to ensure consumers are able to register a complaint and seek redress as quickly as possible

Commenting, PhonepayPlus Chief Executive, Paul Whiteing said: “Development of our 12^th Code of Practice is one of the most important activities we will undertake this year and it is imperative we get off on the right foot. We want to ensure the Code protects consumers in the ways it should do, while enabling reputable providers to offer innovative, compliant services. This is why we have published this discussion paper ahead of a draft of the Code; in order that we might canvass a wide cross section of views from industry, consumers and our peer regulators as early in the process as possible.”

Comments and submissions are invited from anyone with an interest in phone-paid services, industry, including peer regulators, trade associations and consumers. The closing date for comments is 1 August 2009.

Ahead of an industry workshop organised by Ofcom to discuss its PRS Scope Review, PhonepayPlus has prepared an initial assessment of the potential impact of the proposals on PhonepayPlus. To read this document, click here.

To read the Code 12 discussion paper click here.

To read Ofcom’s PRS Scope Review click here.

3.    If you are just putting together an advert to put on another site, then make sure it stands out and your number is really clear. Include a call to action with the number like call this number! Or call now! Again, ensure that all PhonepayPlus guidelines are adhered too.

4.    Write unique content for your web page or advert, don’t just copy someone else. It makes a difference.

5.    Make sure your web page has META keywords and a META description; this will enable the search engine spiders that crawl the sites to define your site and index it more quickly.

6.    Use good pictures and make your pages easy to navigate. People want to be turned on enough to call the number and then come back o your site or advert for round two. Why not try to get them to put the number in their mobile or make a note for them to write it down somewhere.

7.    Generally, the dirtier the better when it comes to advertising adult premium rate services on the web. People will come back if you have good content, good pictures and an easy to use website.

8.    Links, links, links. When it comes to promoting your website, you will need to spend some time link building, ideally go for sites that are directly related to yours, or one the same theme. If you are promoting an adult phonesex site for example, why not start submitting your website to adult directories, there thousands out there, so get your site listed on all of them. It will take time and effort and can be quite a boring job but it is well worth it in terms of your website promotion.

Firstly you should find a reputable Premium Rate provider. There are absolutely loads of services to choose from so be prepared, I will let you have some insider information on the most popular services.

Here are the types of services in order of popularity:

1. Live 121 adult services
2. Live non adult services like, psychic, horoscope.
3. Recorded adult / interactive adult services.
4. Recorded non adult services.

I would recommend you start your premium rate number portfolio with at least one live service. Normally you will need to complete a registration form and sign a standard contract, detailing the terms and conditions of the business. Be wary of companies that do not have contracts and strict processes. A good detailed contract is normally a sign that your provider takes this business seriously, will protect your interests and give good guidance.

Payments

Some companies charge simple one off payments and some have a monthly payment system, make sure you get all the information and choose the set up that works best for you. You should either be able to pay for your new premium rate services on their website or over the phone with a credit or debit card. And the majority of companies can have your services set up and ready to advertise within 72 hours from receiving your payment and documentation. You will normally have to provide the premium rate company with details of your bank account so you can have the revenue paid directly into your account. Most companies make their payments this way; however some will use PayPal or other similar system. Not many companies send cheques out now.

Advertising and Promotion

Once you have received your number(s), you need to think about advertising and promoting your new premium rate services. While you are waiting for your services to be made live and ready to use, get in contact with some advertising companies, agencies or try publications direct. Some of the places you can advertise are local newspapers, national newspapers, glossy magazines, free ads and on the internet. You may even choose TV advertising (this may be cheaper than you think too!). Whether you choose adult or non adult services you will need to go through most of the same companies to get your services advertised. Most of the advertising houses cater for adult and non adult publications although some only specialise in adult publications. You can do an easy search online for advertising agencies and get in contact to find out what their adverting costs and packages are. We can also advise on this if required.

If you are not happy creating the adverts / artwork yourself, you can ask the advertising agency to add it to your package, most of them will do it for free, so it’s worth asking, although some will charge you for this service. Alternatively your premium rate number provider may be able to offer you print ready adverts that you can just plug your number into and submit them directly to the magazine or newspaper.

When you get your numbers through from your company, check them. I know this may sound really obvious but just make sure they are working and the numbers are mapped to the correct service. Once you are happy that the numbers are live and correct you can give all the information to your advertising company to get the advert made into proofs. Please ensure you advertise all the correct terms and conditions on your promotional material as it is strict requirement from PhonepayPlus (formerly ICSTIS) regulations.

Make sure you check your advert proofs properly, as once they go through for printing, cannot be amended. And it will be a complete waste of time if something in the advert is wrong. The same applies to advertising in the newspaper; make sure you see your proof.

So now your services are live and your advertisments are out there, you are well on your way to generating your first month’s revenue. Now all you have to do is sit back and wait for the calls to come in.