March 2014 - Mobivity

Federal Judge Sees TCPA Law As Clear and Unambiguous

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A Pennsylvania federal judge has brought clarity around the issue of text messages, automatic telephone dialing systems, and the Telephone Communications Protection Act (TCPA).

On March 20, District Judge Michael M. Baylson granted summary judgment to Yahoo, saying a plaintiff failed to prove that Yahoo’s text messages fit the law’s definition of computerized, unsolicited phone calls.

The judge dismissed the class action against Yahoo Inc. because the plaintiff did not show that Yahoo’s opt-in text service qualified as an automatic telephone dialing system (ATDS).

“(The plaintiff) has not offered any evidence to show that Yahoo’s system had the capacity to randomly or sequentially generate telephone numbers … as required by the statutory definition of ATDS,” Judge Baylson said.

Because Yahoo’s service was not an ATDS, Judge Baylson said he did not have to consider whether the messages could be considered advertisements or marketing messages.

Judge Baylson said that the arguments did not get “at the crux of the issue,” which was whether the system had the capacity to “use a random or sequential number generator to store or produce telephone numbers and then send a text message to those numbers.”

The upshot of the ruling is that the FCC can’t impose its interpretation of an ATDS because, according to the judge, the law is clear and unambiguous.

The plaintiff filed the suit after he bought a mobile phone with a recycled number and began receiving texts from Yahoo alerting him to new email messages, even though he did not have an account, his complaint alleged. The previous owner of the phone number had apparently signed up for a Yahoo Mail service that allowed a user to receive SMS alerts.

The case was Dominguez v. Yahoo Inc., case number 2:13-cv-01887, in the U.S. District Court for the Eastern District of Pennsylvania.

As you may recall, TCPA was in the news last fall when new TCPA rules from the Federal Communications Commission went into effect regarding the requirements for prior written consent necessary to send text marketing messages. The changes affected those using an automated telephone dialing system.

Mobivity follows the best practices in the industry and is a leader in compliance. Clients with questions can contact their account coach. Others can reach us via info@mobivity.com.

Mobivity Completes Acquisition of SmartReceipt

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Acquisition Expected to Expand Mobivity’s Deployment to More than 17,000 Locations

PHOENIX, AZ – March 13, 2014 – Mobivity Holdings Corp. (OTCQB: MFON), an award-winning provider of proprietary and patented mobile marketing technologies and solutions, today announced that it has completed its acquisition of the assets and operations of SmartReceipt, Inc., a marketing solutions company whose software products transform traditional retail transaction receipts for Subway, Baskin-Robbins, Dairy Queen and others into engaging “smart” receipts that feature coupons and special offers for consumers. SmartReceipt was a privately owned company based in Santa Barbara, California.

Dennis Becker, chief executive officer of Mobivity, said, “We believe this acquisition has the potential to significantly transform Mobivity’s product offering portfolio and create what we believe will be the largest installed base of any SaaS mobile loyalty program provider in the industry, with more than 17,000 locations. Going forward, the capability to integrate SmartReceipt’s printed receipt data in combination with Mobivity’s current SMS and Stampt mobile loyalty app allows our retailer customers to generate actionable data to craft specialized offers, coupons and messages based on actual individual purchasing histories. Additionally, we see opportunities to further integrate the technology beyond its current use to assist retailers to continue to retain their most loyal customers.”

Like Mobivity’s product offerings, SmartReceipt employs a SaaS-based monthly recurring revenue business model with most of its client base within the Quick Serve Restaurant (QSR) industry. Its customers pay a set monthly fee per location for use of the service. SmartReceipt’s solution is compatible with over 80% of Point-of-Sale (POS) systems available in the marketplace today and transmits the printed receipt data from POS systems to SmartReceipt’s cloud-based platform, enabling the QSR to store transactional data and dynamically control the receipt content in real-time. Up to 1.2 million receipt transactions are processed daily by SmartReceipt across more than 7,500 locations throughout the U.S., including major brands such as Subway, Baskin-Robbins and Dairy Queen.

Mike Bynum, President of Mobivity, commented,

“In just the past month since we made the announcement, we have had tremendous interest from existing Mobivity customers in the SmartReceipt product offering, and vice versa. The enthusiasm by leading retailers around the country to the capabilities and unique integration of these technologies certainly provides us a level of excitement as we begin to roll out these products on an integrated basis. With more than 17,000 combined locations, we see significant opportunities for cross-selling going forward.”

The terms of the transaction are more fully described by Mobivity in a current report on Form 8-K to be filed with the United States Securities and Exchange Commission.

About Mobivity

Mobivity is an award-winning provider of a suite of patented mobile marketing technologies that drive sales, enhance customer engagement, and reward customer loyalty for local businesses and national brands. Its solutions, including an industry-leading text messaging product and innovative Stampt™ mobile loyalty application, enable businesses across the United States to drive incremental business and profitability by quickly and effectively communicating discounts and special offers to their most loyal customers. Additionally, Mobivity offers a unique, high definition graphical system platform that allows its clients to enhance customer or fan experience by interacting with their mobile phones and video boards or screens in real time. Mobivity’s clients include national brands such as CNN, Disney, the NFL, Sony Pictures, AT&T, Chick-fil-A, the Golf Channel, NBC Universal, and numerous professional sports teams, as well as thousands of small, local businesses across the U.S. For more information, visit www.mobivity.com.

Forward Looking Statement

This press release contains forward-looking statements concerning Mobivity Holdings Corp. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include risks set forth in Mobivity Holdings Corp.’s annual report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 21, 2013 and subsequently filed quarterly reports on Form 10-Q. Mobivity Holdings Corp. cautions readers not to place undue reliance on any forward-looking statements. Mobivity Holdings Corp. does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

For More Information, Contact:

Dennis Becker
Chief Executive Officer | Mobivity
(877) 282-7660
Robert Blue, Joe Dorame, Joe Diaz
Managing Partners | Lytham Partners, LLC
(602) 889-9700 | MFON@lythampartners.com

Mobivity Adds Phil Guarascio To Company’s Board of Directors

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Former Vice President of Corporate Advertising and Marketing at General Motors and Lead Executive, Marketing and Sales at the National Football League Becomes Independent Director

PHOENIX, AZ – March 4, 2014 – Mobivity Holdings Corp. (OTCQB: MFON), an award-winning provider of proprietary and patented mobile marketing technologies and solutions, today announced that Phil Guarascio has joined the Company’s Board of Directors as an Independent Director.

Mr. Guarascio has been the Chairman and Chief Executive Officer of PG Ventures LLC since May 2000 where he serves as a marketing and advertising business consultant. He was Lead Executive, Marketing and Sales at the National Football League from 2003-2007 and has been a consultant for the William Morris Agency since October 2001.

For 16 years, Mr. Guarascio was with General Motors where he served as Vice President of Corporate Advertising and Marketing primarily responsible for worldwide advertising resource management, managing consolidated media placement and before that as General Manager of Marketing and Advertising for General Motors’ North American Operations. Mr. Guarascio introduced the GM Card and managed the General Motors corporate brand to a 20 percent increase in customer purchase consideration.

He joined General Motors in 1985 after 21 years with the New York advertising agency, D’Arcy, Masius, Benton & Bowles.

Mr. Guarascio was most recently non-executive Chairman of Arbitron which sold to Nielsen in December of 2013 for $1.3 billion. He also currently serves on the Board of Papa John’s Pizza (NASDAQ: PZZA), the third largest pizza franchise in the U.S.

Dennis Becker, chief executive officer of Mobivity, said,

“We are pleased to have a marketing executive with the experience and the expertise of Phil Guarascio join the Mobivity Board. Phil will bring to our Board world-class experience in successfully marketing iconic brands that are at the core of American business and very much a part of our everyday lives. Phil has the unique blend of both brand and agency connections coupled with the tech side of the marketing industry. We couldn’t be happier that he agreed to join our Board in what is a pivotal and exciting time for Mobivity.”

Mr. Guarascio said,

“Mobivity is in a prime position to expand its mobile marketing leadership and market share given its experience, technology and solutions that bring more customers, more often. Getting customers through the door is a universal need by brands of all sizes. Mobivity’s unique and expanding combination of products and services creates personalization options that marketers have long sought to drive loyalty and expand monetization opportunities. I’m thrilled to be asked to be part of Mobivity’s bright future.”

About Mobivity

Mobivity is an award-winning provider of a suite of patented mobile marketing technologies that drive sales, enhance customer engagement, and reward customer loyalty for local businesses and national brands. Its solutions, including an industry-leading text messaging product and innovative Stampt™ mobile loyalty application, enable businesses across the United States to drive incremental business and profitability by quickly and effectively communicating discounts and special offers to their most loyal customers. Additionally, Mobivity offers a unique, high definition graphical system platform that allows its clients to enhance customer or fan experience by interacting with their mobile phones and video boards or screens in real time. Mobivity’s clients include national brands such as CNN, Disney, the NFL, Sony Pictures, AT&T, Chick-fil-A, the Golf Channel, NBC Universal, and numerous professional sports teams, as well as thousands of small, local businesses across the U.S. For more information, visit www.mobivity.com.

Forward Looking Statement

This press release contains forward-looking statements concerning Mobivity Holdings Corp. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include risks set forth in Mobivity Holdings Corp.’s annual report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 21, 2013 and subsequently filed quarterly reports on Form 10-Q. Mobivity Holdings Corp. cautions readers not to place undue reliance on any forward-looking statements. Mobivity Holdings Corp. does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

For More Information, Contact:

Dennis Becker
Chief Executive Officer | Mobivity
(877) 282-7660
Robert Blue, Joe Dorame, Joe Diaz
Managing Partners | Lytham Partners, LLC
(602) 889-9700 | MFON@lythampartners.com
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