Sobol

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Sobol

  1. 1. Wireless Wednesday Mobile Advertising in MNO Strategy November 7th 2007
  2. 2. Contents • Mobile advertising on the rise • Customer acceptance indicators • Vodafone Czech Republic mobile advertising proposition • Industry cooperation
  3. 3. Mobile advertising naturally assumes its role in media mix and is reinforced by changes in traditional media consumption • 89% of brands plan to use European customers media mobile phone marketing by consumption 2008* • Nearly one-third plan to spend 2000 40% 38% 5% 10% 5% N/A in excess of 10% of marketing budget in mobile medium* 2006 38% 34% 16% 8% 4% ~EUR • 52% of brands expect to spend 143 million between 5% and 25% of budget ** in 5 years time* 2010 ~EUR 496 million • Mobile advertising market ** expected to reach €10.6 billion Percent change -5% -11% +220% -20% -20% +348% by 2011** Source: EIAA, IP Networks, TGI Europa * Online Publishing Association 2006 MA on rise Acceptance VFCZ proposition Industry coop. ** eMarketer
  4. 4. Operators must carefully address customer and advertiser concerns to unlock full potential of mobile advertising Advantages Concerns • Proximity and intimacy: wallet, keys, mobile “Already been burnt by • 24x7 device ruthless ringtone companies” • Highest ATS • Low clutter • Interactivity • Mesurability TV / Radio Internet Print Mobile “Already received SMS spam Channels, Similarity with Group Individual which I did not realise I was Targeting programs the subject of targeting targeting and signing up for and which has and time of search or web based on frequency of demographics display no opt out” day site affinity Age Gender At Vodafone we are very sensitive Location to these issues. Missteps in this area have brand impact for us as Expenses ? ? ? well as for the advertiser. Interests MA on rise Acceptance VFCZ proposition Industry coop.
  5. 5. Customers are willing to accept advertising on their phones, provided that it enables benefits for them such as free or discounted mobile services Would you like to receive SMS about products and 20% services to your mobile? Would you like to decrease your calling and SMS costs 44% by accepting advertising on your mobile? Would you accept advertising on your mobile if you could 45% get free minutes and SMS? Would you prefer to choose the industries you want to 81% receive advertising from? % of responses "yes" and "rather yes" Source: MML research by OMD in Czech Republic, July/August 2007. Sample: 1 151. Population: 12-79. MA on rise Acceptance VFCZ proposition Industry coop.
  6. 6. Degree of acceptance for ads targeted upon individual interests is higher than that for generic ads What kind of mobile ads are you most interested in? Fashion 48% Municipal info 47% Mobile phones 45% Cosmetics 44% Music and movies 44% Food 41% Traveling 37% Services 37% Automotive 37% Financial services 34% Nothing of the above 3% Source: MML research by OMD in Czech Republic, July/August 2007. Sample: 1 151. Population: 12-79. MA on rise Acceptance VFCZ proposition Industry coop.
  7. 7. Ability to remain in control over whether and how ads are served is important for mobile consumers How important is it to you that...? You can opt in or out of advertising 80% You can decide how much advertising you receive 77% You only receive advertising about things you are interested in 47% Advertising is controlled and sent by your operator 42% You only receive advertising about things you can do on or use with 16% your phone You only receive advertising related to well-known brands 13% Source: Vodafone research in UK, Germany and Italy. MA on rise Acceptance VFCZ proposition Industry coop. Sample: 600 consumers.
  8. 8. Vodafone CZ launched a varied portfolio of mobile advertising products to cater for complex advertiser needs • Mobile Internet • Web2SMS – Vodafone live! – Free unlimited SMS to Vodafone customers – Yourmode – Service is available to any MNO customer • Ad-sponsored SMS Info • Ad-sponsored peer-to-peer SMS proposition Student SMS Gratis MA on rise Acceptance VFCZ proposition Industry coop.
  9. 9. Vodafone SMS Gratis is one of the first fully advertising-funded peer- to-peer SMS propositions worldwide • Free SMS to all domestic networks • 600 SMS per day per user • Available to students of age 15-26, enrolled in any school in Czech Republic • Demographic data is collected during opt-in process to enable 100% ad targeting: – Age – Gender – ZIP – School • Free and seamless choice between ad-funded or regular paid SMS at any time MA on rise Acceptance VFCZ proposition Industry coop.
  10. 10. For maximum customer convenience and flexibility, Vodafone offers free SMS via downloadable Java client and SMS gateway on Vodafone live! MA on rise Acceptance VFCZ proposition Industry coop.
  11. 11. Student SMS Gratis is received well by the market, even though it is not being communicated ATL Student SMS Gratis 16 000 1 200 000 14 000 1 000 000 12 000 Impressions 800 000 10 000 Users 8 000 600 000 6 000 400 000 4 000 200 000 2 000 0 0 1 2 3 4 5 6 Weeks since launch Unique users Delivered ad impressions MA on rise Acceptance VFCZ proposition Industry coop.
  12. 12. To deliver maximum value, ads are targeted and offer rich interaction options • All advertising-related data traffic is zero-rated • Ads are served real-time and targeted upon: – Context – Demo data (gender, address, age) – Behaviorial data (spend, contract type, etc.) • Interaction options: – Click2MoreInfo – Click2Browse – Click2Call – Click2SMS – Click2Download – Click2Buy MA on rise Acceptance VFCZ proposition Industry coop.
  13. 13. Vodafone adopted Best in Breed sales approach by establishing an internal sales house • Engagement with major media & advertising agencies: – education and awareness about mobile advertising – mobile advertising as part of total marketing mix • Direct engagement with brands • Covering SME and SOHO segment in cooperation with Mediatel MA on rise Acceptance VFCZ proposition Industry coop.
  14. 14. Industry-wide cooperation is required to unlock full potential of mobile advertising Challenge Approach • When advertisers and media agencies • MNO’s need to promote more awareness think of mobile advertising, initial and understanding of mobile advertising knowledge is usually limited to SMS capabilities. • Mobile advertising should not be treated a • Mobile differentiates with targeting, subset of online advertising capping, integration with other media channels e.g. via published short-codes. Mobile is personal and not location dependent. • Need for industry-wide creative standards • Key to enable advertisers and agencies to launch cross-operator campaings. and performance metrics Vodafone made the first step in Czech Republic. Now joint effort of all participants in mobile advertising value chain is required to drive forward market education, standardization and industry development. MA on rise Acceptance VFCZ proposition Industry coop.
  15. 15. Thank you for attention oksana.sobol@vodafone.com

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