Optism Understanding the Mobile Advertising Opportunity for Mobile Operators


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Turn your mobile subscribers into audiences
by connecting them with the brands they love.

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Optism Understanding the Mobile Advertising Opportunity for Mobile Operators

  1. 1. Understanding the Mobile Advertising Opportunity for Operators Turn your mobile subscribers into audiences by connecting them with the brands they love.
  2. 2. Mobile advertising and Advertisers and marketers are quick to pick up on new mobile usage trends and they recognize that delivering messages marketing realities over mobile devices is an exciting new opportunity. But these messages have to be delivered properly to be effective. Mobile devices are highly personal and consumers aren’t interested in receiving advertising that doesn’t fit their lifestyle or that is about products they aren’t interested in. They do want to receive targeted advertising about the brands they love and the products and services that fit their personal preferences and taste — as long as their privacy is protected. The brands and media agencies know that if they can focus their campaigns according to consumers’ preferences, recipients will be more responsive to their message. Furthermore, if they can engage consumers in a dialogue about the brand, they’ll know their message is getting through. Mouse over pink text for additional information.
  3. 3. An opportunity is born … For mobile operators, most of the advertising that has occurred so far is delivered over the top (OTT) of your networks. You’re providing and maintaining the roadway for advertisers to communicate with your subscribers, but you’re not getting a great return on that investment. It doesn’t have to be that way. A mobile adver- tising solution can be built on a business model that enables you to participate in the mobile marketing and advertising value chain. You’re going to be competing head-to-head with application and content providers that already have both mindshare with your customers and strong media relationships. To attract advertising budgets your way, you’ll need to offer something different and better, with a measurable ROI so advertisers can easily see the added value.
  4. 4. To make your advertising inventory stand out, you need to offer media with better reach, interactivity and response. Advertisers want to distribute their adver- tising message to a wide audience — beyond local boundaries to national and international audiences. You can provide that kind of reach by working with a partner to aggregate your advertising inventory (ad space) with other mobile operators’ inventories. Ideally, the partner will also help to sell your advertising inventory. Current mobile advertising initiatives — primarily WAP and mobile banners — provide low levels of engagement. This translates into a lack of response to the ad campaign and lower CPM valuations. To achieve a higher response rate and improve the CPM, you need a mobile advertising solution that delivers a more compelling, interactive consumer expe- rience. Interactivity also means that the effect of the ad campaign is measurable.
  5. 5. Leverage your relationship with subscribers As a mobile operator, you have a unique advantage over other media owners: your direct relationship with your subscribers. To protect that relationship, you’ll want to offer advertising that is transparent, with an explicit opt-in procedure. The ideal mobile advertising solution will enable you to deliver advertising that’s permission-based and incor- porates personal preferences. This approach will ensure that the mobile ads drive a very high response rate. By delivering messages that your subscribers want to receive, you’ll be giving them another reason to stay with you as their provider. An effective mobile advertising service will also help to differentiate you from competitors and draw new subscribers to you.
  6. 6. Alcatel-Lucent Optism Mobile Advertising Solution TM The Alcatel-Lucent Optism Mobile Advertising Solution costs you of reach advertisers need for effective campaigns. Once that’s done, nothing to implement but can deliver big rewards. To get started, you’re part of something much bigger — a whole new business we plug our technology into yours. This enables us to aggregate opportunity focused on mobile advertising and marketing that is your advertising inventory with other providers, creating the kind ready, right now, for mass market deployment.
  7. 7. The Alcatel-Lucent Optism Mobile Advertising Solution was designed and commercialized with the advertising industry to make mobile media selling simpler and to encourage brands to adopt mobile advertising and marketing. In the last two years, Alcatel-Lucent has made significant investments in the advertising arena, building relationships and developing innovative strategies for tapping into mobile advertising and marketing opportunities. As a new business model, the Optism Mobile Advertising Solution goes beyond just technical capabilities. We cover everything from go-to-market support for operators and media sales and campaign support towards advertisers. The solution provides mobile operators with an innovative way to grow revenues by offering value-added services and improving subscriber experiences. And it gives brands the ability to connect with subscribers through relevant interactions that fit their lifestyles. Based on subscriber’s stated permission and preferences, brand communications are delivered via interactive SMS and MMS messaging. Creating an effective mobile advertising marketplace
  8. 8. Introducing the new Alcatel-Lucent media arm As part of our investment in mobile Because we manage the rela- advertising, Alcatel-Lucent has tionship with media agencies and created a media facing arm. This operate the advertising platform, group brings together a wealth of it’s easier for you to participate. We experienced advertising and mobile leverage your network assets and marketing professionals and is improve their value both through responsible for building commercial aggregation and by enabling relationships with global brands brands to enter into meaningful and agencies to facilitate the sale of dialogues with your subscribers. mobile operators’ media inventory. Most importantly, we do this while At the heart of the solution is the ensuring that subscribers’ privacy advertising platform, fully hosted is always safeguarded and they and managed by Alcatel-Lucent. retain control of their information The platform connects directly and preferences. Our research has into mobile networks offering a shown that consumers, particularly single entry point for advertisers the valuable youth segment, are to multiple mobile operators. It ready to embrace this type of adver- provides advertisers with a simple tising, if it is done right. method of booking campaigns and ensures consistent reporting.
  9. 9. Enabling connections The Alcatel-Lucent Optism Mobile Advertising Solution solves established that connects you with media agencies, advertisers the relationship gaps that exist between mobile operators and and marketers. This in turn enables advertisers and marketers to the media world making it simpler for all members of the value connect your subscribers with the brands that interest them. chain to collaborate. Through our solution, a global ecosystem is Alcatel-Lucent Optism™ Mobile Advertising Solution Media Owner Brands Agencies (Operator) Consumers Engagement, Research ROI, Reach and New Revenue Stream Value and Improved and Sales Ease of Booking and Service Innovation Experiences - Media Industry - Go to Market Support Relationships - Opt-in and Profiling - Media Sales and - End-to-end Technology Booking Tools - Cross-Mobile Operator Aggregation
  10. 10. Maximizing the value of your media inventory Today, you’re selling bulk SMS To join the service, subscribers must for advertising and marketing give their permission through an purposes, but this approach does opt-in process, during which they are not realize the highest possible asked a few simple questions. Their return for you. The SMS is sold at the answers to those questions make it lowest acceptable price, to mobile possible to ensure the advertising marketing agencies that are creating they receive is relevant. Because they campaigns on behalf of brands. To have explicitly opted in to the adver- them, SMS delivery is simply a cost. tising service, subscribers are more engaged in the advertising received, Our approach focuses on improving which of course increases the value the value of your media inventory of the advertising to the overall — making SMS the most responsive campaign. Dynamic management of and targeted, high-reaching media subscribers’ preferences ensures they available in the mobile media are always in control. business. We use a highly responsive, scalable and efficient dialogue media All of these elements increase the based on SMS/MMS messaging, value of your inventory to adver- along with display to enable a tisers, which in turn ensures you get relevant conversation between the best possible ROI. consumers and brands.
  11. 11. Media industry endorsement Finally, we’re proud to say our solution is already backed by the industry. The Optism Mobile Advertising Solution has been endorsed by GroupM and Mediacom, part of the WPP group, one of the largest media buying agencies in the world, to bring you this opportunity. In fact, media agencies around the globe have endorsed our approach because we’re doing it right. This isn’t just TV creative pushed down the phone. The Alcatel- “The most desirable inventory involves user permissions supplemented by Lucent Optism Mobile Advertising Solution is specifically explicit preferences and must offer broad scale to truly harness mobile as a designed for today’s advertising environment. It takes marketing channel. Clients are increasingly asking if they can run campaigns advantage of the unique capabilities and relationship over multiple regions and at scale. Alcatel-Lucent’s operating model and access you have with subscribers to enable highly scalable, to multiple mobile operators is a big step forward towards meeting these requirements.” targeted advertising campaigns. David Kyffin Global Chief ROI and Direct Marketing Officer Premium Membership in the of Mediacom, part of the WPP group Mobile Marketing Association Further proof of Alcatel- “We are thrilled to have Alcatel-Lucent join as a Premium Member as Lucent leadership in mobile the company’s leadership and global strength is beneficial to the entire marketing and advertising ecosystem. They have a unique ability to provide end-to-end communications is our position as a Premium solutions that can help to drive the mobile marketing industry to bring new Member of the Mobile Marketing Association (MMA). services and capabilities to market.” The MMA reserves the Premium Member tier to Federico Pisani Massamormile companies with the scale, scope and resources to effect Interim CEO of the MMA genuine change in the marketplace.
  12. 12. Paying the bills With no up-front investment, the Alcatel-Lucent Optism Mobile Advertising Solution helps you move quickly into the value chain, to participate in growing revenues from mobile advertising and marketing. Now, instead of simply providing the infrastructure over which OTT applications and content ride for free, you will be creating highly responsive and targeted mobile media. Your share in the revenue stream will reflect this valuable contribution to the overall advertising service. The advertising industry is huge, with an estimated value of $1 trillion United States dollars. While about half of that amount is spent on tradi- tional advertising (including print, radio and television), the market is largely flat. Traditional media simply don’t provide the level of response advertisers are looking for. It’s also becoming increasingly difficult to reach audiences over the usual channels (consider the impact of the PVR on tele- vision advertising!). Most importantly, traditional advertising doesn’t enable brands to measure how many people view an ad. Digital advertising, on the other hand, is a healthy, dynamic market with the potential for an excellent return on investment. It also offers the personalization needed to improve targeting, relevance and responsiveness. With the proliferation of mobile devices, the mass consumer audience is there. Put very simply, the advertising market is moving from reach and frequency to reach and relevancy/responsiveness. And the latter pays much better.
  13. 13. Alcatel-Lucent — your partner for mobile advertising Alcatel-Lucent is already a global leader to advertisers, in order to create new in mobile communications. Now, through business models and generate additional our media arm, we have assembled revenue. The Solution will also give you an in-house team of advertising and a new set of tools to create and deliver marketing specialists drawn from media compelling services and content to your agencies, content providers and brands. most valuable asset – your subscribers. We This team will work with you to ensure then aggregate your inventory with other that you are able to participate fully in mobile operators to offer media agencies this dynamic and growing market. more compelling inventory and the ability to engage consumers in a dialogue with The Alcatel-Lucent Optism Mobile their favorite brands. Advertising Solution is a prime example of the Company’s vision for application In addition to providing the necessary enablement — a vision that focuses technological tools, the Alcatel-Lucent on helping you to leverage the value Optism Mobile Advertising Solution in your network by enabling new includes go-to-market support, opt-in and business opportunities. The Optism audience management, media sales, Mobile Advertising Solution helps you to and campaign strategies to solve the securely expose your infrastructure assets relationship gaps that exist between including mobile data, messaging, billing, you and the media industry. mobile payment, video, and location
  14. 14. Learn more about the Alcatel-Lucent Optism Mobile Advertising Solution Learn more about our media arm