22nd December 2011

2011 - AIME continues to make progress driving key Industry initiatives, broadening its reach in to Micropayments

22 Dec 2011 2011 was a year of accelerated market convergence, with more consumers engaging with content and services through a growing number of devices – across different platforms – paid for by a variety of micro-payment mechanisms. Premium rate was firmly bundled in with the wider micropayments market and only separated as a defined ‘Industry’ by a regulatory definition. Although traditional premium rate revenues took a slide in 2011, with more investment in direct to bill products in 2012 providers will be looking to play an increasingly significant role in the broader interactive media and entertainment market place.

In 2011 AIME grew in membership numbers and repositioned to embrace the wider micropayment market, strengthening its relationships with key social media platforms and attracting alternate payment companies as new members. With the introduction of the PhonepayPlus 12th Code, it has been essential to provide members with strong representation, to ensure a technology neutral regulatory environment and we will continue to work cross industry in a wider payments market to ensure common principles of consumer protection and care are applied by members.

2011 Highlighted AIME Achievements

Over 60% of AIME comments incorporated in final PhonepayPlus 12th Code Guidance
Improved regulatory process transparency - co-operating with Pp+ to produce process Schematic & Guidance
Formation of AIME Forward Look Group - strategic group to identify opportunities for members in converged media; output includes production of AIME Micropayment Analysis and Market Map
Business proposal for Higher Rate Premium Rate Services submitted to Ofcom with agreed consultation timescales
Research into Technology Needs of Charities released – drives initiatives for a shared interactive technology resource and Mobile Gift Aid Best Practice
Research into perceived Payforit transaction drop off – output used as basis for delivering higher conversion + development of Payforit version 4.0
Launch of AIME Member Preferential Services offering legal and business support to members
150+ Industry and PhonepayPlus Executives trained on AIME’s PRS Foundation Training Course
AIME Best Practice Guides produced - Special Requirements for Premium Rate Print Advertising & Voice Services
4 Industry networking events drawing a combined 400+ attendees
Membership growth of 10%

Growing Membership & Influence

AIME has continued to grow during 2011 with a 10% net increase in membership. We have welcomed several new members from the wider micropayments environment, as well as application developers and merchants. As the market place becomes more global we are also pleased to welcome more international players including new members from the US, Germany and France.

The diversity of AIME’s membership continues to be the core strength of the association, enabling AIME working groups to engage in truly joined up discussions allowing new market opportunities to be indentified and unlocked, including Mobile Betting and Gaming, Charity and Social Media. Application billing is predicted to grow in 2012 and AIME expects to welcome several new members in this arena, as traditional players begin to adopt their business model to take advantage of this new billing opportunity.

It takes time to influence a market and we are pleased to see our work in broader sectors such as charity, increasing adoption of premium rate for donations and having a direct impact on consumer trust and use of micropayments in general.

Regulation & Best Practice

The regulatory landscape changed dramatically in 2011 with the new PhonepayPlus Code of Practice coming in to effect and shifting responsibility for compliance down the value chain to the merchant. With 60% of AIME’s requested changes made to Code Guidance and the move to technology neutral principle based regulation, industry is now on a much firmer footing to innovate. We continue to work through several regulatory issues with PhonepayPlus to improve regulatory transparency and improve process e.g. production of the PhonepayPlus regulatory process schematic.

The AIME inspired industry registration scheme went live in 2011 providing industry with tools for due diligence. Whilst the scheme implemented was a cut down version of the original AIME proposal, the database has provided a foundation for a more effective number checker and to help direct consumers’ enquires to the merchant for resolution. During 2012 AIME hopes to work further with PhonepayPlus to unlock the added potential provided through the new joined up environment.

We believe it is important for industry to take the lead in shaping the regulatory environment members work in, through greater self-regulation and with the regulator working as a necessary final backstop. In 2011 AIME has issued best practice guidance to members around print advertising and voice services. Further best practice will be issued in 2012, including Charity: Mobile Gift Aid and Social Media involving PRS.

Industry Profile & Networking

During 2011 AIME has increased its profile as the authoritative ‘One Voice’ for the interactive media and entertainment industry. By taking the lead on several industry issues through trade press and speaking at trade events (including, Apps World, Mobile Days, Mobile Squared Road Show, mgaming and World Telemedia) we have managed to highlight the value of various AIME industry initiatives. AIME has continued to build relationships with other trade associations, e.g. MDA, UKIE, TIGA, IAB and IPPSA and has been a supporting Association for 27 key Industry events.

Networking at AIME has gone from strength to strength. We have hosted successful events bringing an increasingly converged media industry together – GMs & Forum Networking, VIP Golf day, Summer BBQ, Media & Entertainment Industry Christmas Party, K&N event: ‘Empowering the Charitable Sector with Interactive Technology II’ networking drinks (160+ attendees).

Forums & Initiatives -

During the latter half of 2011 AIME shifted focus from regulatory priorities to innovation and growth.

Forward Look Group: AIME’s Forward Look Group, launched at the beginning of 2011, has been established to provide strategic direction to membership activity and prioritise market growth initiatives. AIME’s micropayment analysis, published in November, provided the first snapshot of the current micropayment markets and the characteristics of the various payments mechanisms. The analysis will be further developed in 2012 to map product and consumer consumption cross platform. Guest speakers, including Facebook have provided wider market input and this is critical to helping members identify opportunities.

Mobile Betting & Gaming Forum: Launched in September, AIME’s Mobile Betting and Gaming Forum has already tabled initiatives which should help realise the significant sector growth opportunity for mobile payments, in addition to obvious value mobile plays as a customer acquisition tool.

Interactive Broadcast Forum (IBF): The introduction of voting credits via Facebook and reintroduction of SMS voting in October to high profile TV formats, demonstrates the propensity of broadcasters to adopt interactive technologies suited to viewer demographic demand. However, the high profile nature of programming and the heavily regulated nature of the sector mean that such technologies are only employed after thorough groundwork. This includes AIME working with members and regulators in a joined up manner to work through any barriers to market growth and ensure initiatives contribute to greater opportunity. Having worked through issues around SMS and PTV interaction via apps, the IBF continues to progress work around trust & transparency; is finalising Guidance for Social Media using PRS promotions; and the Voice Short Code (VSC) working group, having reached agreement with Ofcom around price disclaimers, has laid the foundation for wider VSC use in competition and vote programmes.

Interactive Services for Charities Forum: Charity use of SMS donations has gone from strength to strength during 2011. Behind the scenes AIME’s Charity Forum has continued the work throughout 2011 providing education & information to charities to increase the awareness, understanding and use of interactive technology and cumulating in a successful conference in Sept 2011. The Forum has completed research into charities’ technology needs; created a business plan for a Charity online central resource; and is finalising a best practice guide ‘Gift Aid for Mobile’.

Payforit: working group has continued research into conversion rates and is working through several key issues. Initial research has been produced on Payforit opportunities; new Payforit screen flows produced and A/B tested; industry website launched (Payforit.info); and we’ve provided workshops with MNOs & APIs to support the development of Version 4 Scheme Rules.

PTV (Psychic & Chat Teleshopping): working group has produced a best practice guide and is working with PhonepayPlus to achieve a regulatory permissions structure which will enable consumers of psychic services to opt-in above the £30 spend cap.

Voice Services: continues to lobby Ofcom for higher rate tariffs on fixed line services; has responded to Ofcom’s Consultations Non Geographic Call Services and PRS Bad Debt; and has published a Voice Services Best Practice Guide.

Representation

AIME meets quarterly with PhonepayPlus & Ofcom to discuss Industry matters on behalf of the membership, and has an influential role as a member of the Industry Liaison (ILP) panel, ILP Futures working group and PhonepayPlus Consumer Literacy Working Group. In addition to ongoing work around the 12th Code & Industry registration database, AIME is a driving force behind all relevant Industry working groups, e.g. Unsolicited SMS and Voicemail working party. In addition, during 2011 AIME output included:

Collating relevant members’ feedback into 9 regulatory consultation responses including Pp+ Guidance Notes, Ofcom PRS Bad Debt, Ofcom Simplifying Non Geographic Call Services, Ofcom Review of PRS & Pp+ App Based Payments
Effective communication with PhonepayPlus on the implementation of the 12th Code and Registration Scheme (e.g. due diligence function, search criteria)
AIME response to the PhonepayPlus Code Guidance led to over 60% of feedback incorporated in to final guidance
12th Code events with member companies
Participation at ILP futures group to review and feedback on App Based Payments and Consent Guidance Notes
AIME training courses held with PhonepayPlus Executive
Initial communication made with DCMS re Communications Act 2015
Effective communication with Ofcom re PRS Bad Debt methodology, Non Geographic Call Services Review, Higher Rate Tariffs, Participation TV Best Practice, Voice Short Code Price Disclaimers
Representation of members’ interests on Industry issues including O2 Card Fines, Unsolicited SMS and Voicemail
Attendance at Industry regulatory events e.g. PhonepayPlus forums, Westminster seminars, IARN meetings
Surveys: ‘Customer Service Survey’ on PRS 09 numbers and shortcodes (February & October) & PhonepayPlus Registration Scheme & Due diligence

Information

In 2011 AIME rolled out its PRS Foundation Course to Industry and held 10 full day courses, training over 150 delegates. AIME also launched its Member Preferential Services scheme providing legal and consultancy discounts to members. In addition:

Best Practice Guides – Special Requirements for Premium Rate Print Advertising & Voice Services
Research – Charity Technology Needs, MicroPayments, & Phase 2 of Payforit drop off analysis
AIME K&N News providing monthly updates of AIME, Industry & Regulatory News + showcase
AIME GMs provided updates on Industry Trend data (fines, complaints, revenues) & presentations from guest speakers (Pp+ Process Schematic & Sanctions Guide, Ofcom Non-Geo Call Services update, Trade Doubler Affiliate Marketing)
AIME website continually updated providing useful resource for Industry
K&N Conference – ‘Empowering the Charitable Sector with Interactive Technology II’
Partner for industry guides, e.g. Netsize 2011 Guide with AIME Charity article & iGaming guide ‘Mobile Gambling: A Comprehensive Strategy &Market Review’

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