August 2012 - Mobivity

From the Red Cross to B.O., SMS Donations are on the Rise

Posted by | Mobile Advertising, News, SMS | No Comments

One of the most common barriers to entry for someone looking to donate financial aid is the difficulty of the process. Whether it’s for a political campaign, or a disaster relief fund, the easier it is for your prospects to donate, the higher level of funds you will be able to raise.

It is for this reason that donations over social and mobile channels have always had extreme success, because the ease of use and user experience is preferable to most other forms of donation. Mobile has seen a rise in popularity overall in politics, with presidential hopeful Mitt Romney’s decision to announce his choice for Vice Presidential candidate over the Mitt Romney mobile app.

Though the success and reach of each of these methods is questionable (see right: I have one of the top mobile carriers in the US), we have to applaude each candidate for their candide attempts at entrance to mobile. President Obama is certainly not foreign to mobile, as we know through his text message campaign in 2008 that garnered many mobile marketing awards. But his donations have a seemingly different approach this time around.

Both President Obama and Mr. Romney have mobile apps, but the President has become the first presidential candidate to accept donations via SMS. Much like Red Cross donations of the past (and present), the cell phone users monthly phone bill will be charged the cost of donation. While a standard web widget has been successful for garnering web donations, the Obama camp has said that they will pitch text message donations on television ads and in live speech settings where a user will be most likely to have their cell phone, and need an easy way to donate to the campaign.

Text message donations aren’t necessarily a new concept, as the Red Cross has gathered millions of dollars in the past for disaster relief funds. A few weeks ago the Red Cross was urging Twitter users to text donations for Hurricane Isaac that hit the southern US coast.

While text donations can be a huge asset for raising money in the mobile environment, there is one major caveat that businesses should pay attention to.

Carriers charge sometimes outrageous fees for receiving the money that is donated, and oftentimes don’t send a donation check until months after the initial donations are received. So while the benefit of having mobile donations may (vastly) outweigh the cost for large organizations, it’s not necessarily a viable solution for small businesses to accept donations – but that’s okay, that’s why we have Square.

While President Obama’s camp has yet to release numbers on the success rates and donation amounts received from text messages, we’re sure they’ll be high. The only thing to look out for now is how the President uses these numbers and database he built to help promote his campaign (it’s almost debate season, right?). We sure hope he uses it wisely, and doesn’t let the chance to reconnect with those who donated slip away.

The Widespread Adoption of the Third Screen in Movies and Television

Posted by | Mobile Advertising, Mobile Experience, Technology | No Comments

This summer has been an exciting and interactive season for mobile marketing and blockbuster hits. We’ve seen a lot of adoption of and utilization of the “third screen,” as our VP of Sales and Marketing Spencer Brannan calls it, allowing movie and television producers to bridge the gap between their viewers and the screen they’re watching.

Several fall movies that are being promoted right now include a mobile marketing approach to attempt to virally increase movie attendance, including one of our own with the movie House at the End of the Street.

Another prominent and upcoming movie is Parnormal Activity 4, which introduces a text call to action at the end of the released trailers. This call to action prompts a viewer to opt-in to the movie’s campaign, then sending an exclusive trailer (see the image to the left) not released to the public, as well as methods to make sharing this campaign and trailer with friends more easy and convenient.

While the Paranormal Activity series isn’t world renowned for it’s artistic film-making qualities, one thing they are good at is engaging their audience, and marketing in a viral way. By encouraging participation in their mobile campaign with the promise of exclusive trailers and details about the upcoming movie, the marketing minds behind Paranormal Activity are starting off a successful mobile campaign to the tee, and will likely see large participation rates across the country.

But we’ve also seen that mobile campaigns aren’t just for movies and that television shows can engage an audience just as well (if not better).

The popular television show Breaking Bad, though seemingly controversial, has always gotten rave reviews for it’s place as a “social” television show.

The show has been able to generate buzz on social networks like Twitter and Facebook by engaging viewers in contests, questionnaires, and conversations while everyone is guessing what Walt will do next. But while it’s no question that Breaking Bad has gotten Social down, their entrance into mobile with the show’s fifth and final season has been exciting to see unfold.

With AMC’s newly released “Story Sync” app for Android and iOS devices, viewers are provided with “supplemental content” before, during, and after each episode is aired. As John Paul Titlow notes,

“In many cases, [Story Sync] was as simple as a poll asking viewers for their opinions about something that had just happened in the show. The auto-refreshing feed also included graphics and quotes from previous episodes, which provided pertinent context and details at precisely the right moments.”

AMC’s Story Sync has proven that mobile marketing can be used for far more than just advertising. They are using the mobile channel as a way to communicate exclusive content and additional details to the viewers of their beloved shows – and as a self-pronounced Breaking Bad fanatic, I have to admit that I thoroughly enjoyed the Story Sync experience.

So what does all this mean to you? How does Hollywood’s adoption of mobile affect the customer base of small to medium sized businesses and restaurants? Hollywood’s adoption of the mobile channel is an introduction. Consumers and viewers are one in the same – both are looking for ways to feel that they are getting exclusive content and special treatment from a brand that (otherwise) probably doesn’t even know their name.

That’s what utilizing the mobile channel is all about. It’s about connecting with your customers at quite possibly the most personal level – their mobile phones – and then using that connection to foster a relationship that not only increases brand awareness and loyalty, but eventually lands your business more customers due to the adoption of mobile.

While we are set to see more and more mobile interaction with each passing day, it’s not too late to check it all out. Give us a call today to learn more about how you could be engaging your customers on the mobile channel and capitalize on the adoption of mobile throughout the country.

CommerceTel Announces Record Second Quarter 2012 Financial Results

Posted by | Press Releases | No Comments

CommerceTel Corporation (MFON), an award-winning provider of proprietary mobile marketing technologies and solutions, announced today record second quarter revenue, gross profit and reduced operating losses for the three month period ending June 30th, 2012.
Q2, 2012 revenue increased to $1,009,398 from $553,108 in Q2, 2011, an 82% increase.
Q2, 2012 gross profit increased 81% to $676,940, vs. $374,057 in Q2 2011.
Gross profit as a percentage of revenue increased to 67% from 64% in the first quarter of 2012.
Adjusted EBITDA improved 3.9% to ($380,435) from ($395,748) in the previous three month period ending March 31, 2012.
Dennis Becker, President & CEO, was quoted as saying, “2012 has been a busy year for the Company as we’ve progressed our operational goals and increased the focus on delivering our patented technology to the Local Advertising industry. I’m pleased to report that, as of today, there are more than 5,000 locations across the country utilizing our technology to connect with local consumers’ mobile devices. More than 1,500 of those 5,000 users have been turned up just the past 60 days. We’ve also consolidated the various brands we acquired through 2011 into ‘Mobivity’ ( which better reflects our mission of driving more customers, more often for local advertisers. As previously stated, we continue to project 2012 revenues of more than 60% growth over 2011, and are excited to have recently procured growth capital to expand sales and marketing activities.”
The Company raised $1,033,002 through equity issuance in 2011 to fund its growth. In addition, the Company obtained $2,656,250 in new financing via a new Note issued May 31, 2012.
Business Update
The Company continues to grow its Local Advertiser customer base. A Major Quick Serve Restaurant franchise has completed trials in more than 1,500 locations and completed their full nationwide roll out to more than 3,500 locations during June, 2012. The number of locations across the United States currently utilizing CommerceTel’s patented mobile marketing solution has grown from less than 1,000 to more than 5,000 locations in just the last 12 months.
During the second quarter, the Company won several major brand client contracts and campaigns including a three-year license to the United States Tennis Association, the Trump Organization’s Miss Universe Organization, and the successful execution of mobile fan engagement during the 2012 Final Four NCAA basketball tournament.
On August 6, 2012, the Company filed a document with the Secretary of State of the State of Nevada changing its corporate name to Mobivity Holdings Corp. The name change will be effectuated by merging the Company’s wholly owned subsidiary into itself without shareholder approval, as permitted by Nevada law. The name change will become effective on August 22, 2012, which the Company expects is the date that the FINRA will announce the name change. A new Website has been launched marketing the Mobivity brand at
Financial Summary

Three months ended Six months ended
June 30, June 30,
$000s ex-EPS 2012 2011 Chg. 2012 2011 Chg.
Net Revenues $1,009 $553 82% $2,023 $694 192%
Gross Profits $677 $374 81% $1,322 $259 204%
GAAP Net Income ($992) ($998) -1% ($2,684) ($2,310) 16%
Adjusted Net ($380)(1) ($329) 16% ($776) (1) ($758) (1) 2%
Income (loss)
GAAP EPS (Diluted) ($0.04) ($0.05) -8% ($0.12) ($0.12) 0%
Adjusted EPS ($0.02) (1) ($0.02) 0% ($0.03) (1) ($0.04) (1) 13%
Diluted Shares O/S 23,041 21,337 8% 22,920 19,534 17%
(1) Please see non-GAAP reconciliation table below

Three months ended Six months ended
June 30, June 30,
2012 2011 2012 2011
GAAP Net Income (Loss) $ (991,545) $ (997,985) $(2,683,785) $(2,309,503)
Depreciation and
amortization $ 146,765 $ 124,741 $ 301,382 $ 126,778
Change in FMV of
derivatives $ (654,477) $ 154,104 $ (193,990) $ 584,506
Non-cash stock comp
expenses $ 257,036 $ 251,727 $ 640,897 $ 596,336
Gain on contingent
considerations $ (16,131) $ (76,782)
Interest expense, net $ 877,917 $ 138,242 $ 1,236,095 $ 243,492

Non-GAAP adjusted net
income $ (380,435) $ (329,171) $ (776,183) $ (758,391)
Weighted avg. diluted
shares 23,041,215 21,336,579 22,920,101 19,534,081
Non-GAAP adjusted EPS $ (0.02) $ (0.02) $ (0.03) $ (0.04)
About CommerceTel:
CommerceTel is an award-winning provider of proprietary mobile marketing technologies and the inventor of C4, a unique, enterprise-grade platform empowering brands to engage mobile consumers via multiple channels. The only system of its kind, C4 is a cloud-based solution providing broad mobile communications and extensive CRM features. It is integrated with multiple tier-one PSTN/ IP carriers and micropayment processing facilities as well as with carrier premium SMS billing systems. Customers include CNN, Disney, Sony Pictures, AT&T, Verizon, USA Network, numerous professional sports franchises, the Golf Channel, and NBC Universal. For further information visit or follow us on Twitter @CommerceTelinc.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: adjusted net income. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our “recurring core business operating results.” We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
Cautionary Statement Regarding Forward-Looking Information
This press release may contain certain “forward-looking statements” relating to the business of CommerceTel Corporation. All statements, other than statements of historical fact included herein are “forward-looking statements” including statements regarding the impact of the proceeds from the private placement on the Company’s short term business and operations, the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website ( All forward-looking statements attributable to the Company or persons acting on its behalf months are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For additional information, contact:
Dennis Becker
CommerceTel Corp.
Phone: 619-725-0990

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