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Blyk© Blyk Saturday, 05 January 2008
Pekka Ala-Pietilä
Blyk
5 December, 2007
2
What does it take for an
ad funded mobile
operator to succeed?
© Blyk Saturday, 05 January 2008 Blyk
Blyk© Blyk Saturday, 05 January 20083
Operator
Blyk believes
Blyk© Blyk Saturday, 05 January 20084
Operator Media
Blyk believes
Blyk© Blyk Saturday, 05 January 20085
So, what will drive the adoption and success of
mobile over other media?
© Blyk Saturday, 05 January 20086 Blyk
Relevance
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Mobile advertising is SPAM
Teens get free cell phone service in exchange for annoying ads.
Annoying me before I’ve even had a chance to interact with a company or product does not inspire consumer confidence.
Conventional thinking =
© Blyk Saturday, 05 January 20088 Blyk
What do young people say?
Q Research Advertising & Mobiles Report, April 2007 UK
71% of young people surveyed would like to
receive advertising messages targeted to
their particular interests.
(more than double the response for non-targeted communications).
© Blyk Saturday, 05 January 20089 Blyk
Blyk’s solution
Blyk members are 100% opted-in
and profiled
They’ve expressed genuine demand.
They profile themselves upfront and these profiles build over time.
For brands, Blyk enables precise targeting and detailed insight into
the habits, tastes and preferences of young people.
© Blyk Saturday, 05 January 200810 Blyk
Blyk’s solution
Messages related to anything that helps them to organise their lives.
High value offers based on user preferences.
Therefore advertising becomes a service for our members.
Blyk Quantitative Consumer Research January 07, 16-24s in the UK. 619 respondents
Timely messages that link to user’s behaviour and interest.
© Blyk Saturday, 05 January 200811 Blyk
Interactivity
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© Blyk Saturday, 05 January 200812 Blyk
In mobile, content is king
CBS began selling television clips, games, ring tones designed to cell phones.
Computer becomes mobile phone.
Mobile blogging, instant uploads.
Conventional thinking =
© Blyk Saturday, 05 January 200813 Blyk
Mobile internet/mobile data services?
73% of young people don’t use data services.
IDC: Wireless Teen and Adult Consumer Entertainment Survey 3Q06
2/3 say they use it once a month or less.
Blyk Quantitative Consumer Research January 07, 16-24s in the UK. 619 respondents
2/3 of students found using the internet on their
mobile such a poor experience, they gave up
trying.InfoGin/Vansom Bourne, May 2007
© Blyk Saturday, 05 January 200814 Blyk
Why?
Access to content is a barrier.
Cost is a barrier.
Perceived value is minimal.
Not relevant to me.
Blyk Quantitative Consumer Research January 07, 16-24s in the UK. 619 respondents
© Blyk Saturday, 05 January 200815 Blyk
Blyk’s solution
From the users perspective, the primary need to communicate should drive everything in mobile.
I call you, you call me. I text you, you text me.
© Blyk Saturday, 05 January 200816 Blyk
Blyk’s solution
Blyk ad formats are based on the most dominant and most familiar pattern among 16-24s.... Messaging (text and picture)
Consumers and brands interact in a dialog.
2-way communications.
Brands ‘earn’ attention from relevant dialog with consumers.
User experience that’s 90% familiar and 10% new.
© Blyk Saturday, 05 January 200817 Blyk
L’Oreal: Icons - Spokesmodel dialogue
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© Blyk Saturday, 05 January 200819 Blyk
© Blyk Saturday, 05 January 200820 Blyk
© Blyk Saturday, 05 January 200821 Blyk
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© Blyk Saturday, 05 January 200823 Blyk
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Blyk© Blyk Saturday, January 05, 200825
Early indications
During the first six weeks, response rates to the campaigns
were in the range of:
12% to 43%
© Blyk Saturday, 05 January 200826 Blyk
To put this in context
Source: e-consultancy Sept 2007
Medium Average Response Rate (%)
Online Advertising 0.02
Paid Search Advertising 0.2
Email 0.1
Direct Mail 2
Direct Response TV 0.04
Magazines 0.2
Radio 0.01
“Response rates for cold [Mobile] campaigns are in the 3- 6% range while campaigns using client’s own
customer data fare much better with response rates ranging between 1.3% and 20%”
Nick Fuller, Chair, DMA Mobile - 2nd November 2007
© Blyk Saturday, 05 January 200827 Blyk
Mobile advertising when done right is not viewed as advertising at all...it becomes a service to the end user.
It becomes useful information.
A service that benefits both brand and consumers and builds a relationship between the two.
Brands and consumers create time for one another....
not just buy it.
© Blyk Saturday, 05 January 200828 Blyk
End-to-endcomplete control of our network,
user experience and
ad products
© Blyk Saturday, 05 January 200829 Blyk
Wireless
carriers
Airtime
broker
Platform
technologyOpt-in
databasesAdvertiser
Conventional thinking =
Mobile as a media is
complicated
© Blyk Saturday, 05 January 200830 Blyk
BlykAdvertiser
Blyk’s solution
© Blyk Saturday, 05 January 200831 Blyk
Purpose-built technology platform for Blyk’s advertising-funded model
Host Operator (Orange) Domain in UK
BSC/RNC
BTS
BTS
Blyk Telecommunications Center
PSTN
MSS/GCS
MGW
SMSC
Host Operator Domain in Country B
VMSC
2G/3G SGSN
Internet
Blyk inCountry B
A/Iu-CS
Gb/Iu-PS
Mc
Nb
VMS IN
GPRS PrepaidOSC
Prepaid &
Balance holder
D/F
WAP GW MMSC
BG
BG
Gn/Gp
Gn/G
p
ISN
(GGSN)
NPM
Gi
HLR
NTMS
BSC/RNC
BTS
BTS
MGWVMSC
2G/3G SGSN
Blyk in UK
A/Iu-CS
Gb/Iu-PS
Nb
BG
BG
PSTN/PLMN
Blyk CRM and Ad PlatformCenter
Blyk© Blyk Saturday, 05 January 200832
Closing thoughts- relevance- interactivity- end-to-end
Blyk© Blyk Saturday, 05 January 200833
Thank you