Airtel Presentation

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Airtel Presentation

  1. 1. airtel iCreate 2012 Executive Summary Airtel m-Ads Sayan Maiti
  2. 2. Introduction ObjectivesMarket Dynamics The number of mobile internet users is expected to be twice as that of PC internet user by end of 2012 Mobile penetration in India is the second highest in the world today and every month over 8 million users are being added. Portable communication devices like Tablets and Smartphone's expected to grow sevenfold from 2012 to 2013. Mobile Advertising is set to grow ten-fold in come five years. Source : Asian Digital Marketing Association’s Digital Marketing Yearbook for 2012 To Make Airtel m-Ads* attractive to the clients companies by achieving a high ROI in terms of ad impact. To make the end user subscribe to the mobile ads rather than neglect them ( Make m-Ads* subscription attractive) To design and place the advertisements in a way that it catches the attention of the end user. To retain both the clients and the end user(through subscription) for a long period of time so that Airtel can gain sustainable income. To become the market leader in mobile ads category in the next 5 years. Cost Benefit Branding Revenue / Profit Impact * m-Ads – Airtel’s advertisement platform ( As a part of our proposal) 0 200 400 600 800 1000 1200 2012 2013 2014 2015 2016 INRCrores Market Opportunity Total Mobile Ad Revenues
  3. 3. Client Needs & Capabilities Required Desirable FeaturesReach Targeting / Relevancy Engagement Viral Bottom line Impact 0% 10% 20% 30% 40% 50% 60% 70% Understanding of mobile medium More Data 3rd parties buying and planning Mobile Standardisation Agnostic Device Platform Single location to plan & book campaigns All of them 0% 10% 20% 30% 40% 50% 60% Aggregated Reporting Unique User Tracking Third Party Serving Real Time Bidding All of them Required Capabilities to drive Client Adoption of m-Advertising Factors for Scalability • Clients can choose the ad inventory to meet their desired advertising objective • Pricing can be done on the basis of the aggregate scores of all parameters
  4. 4. Business Model The Model – Airtel m-Ads AirtelClient 1 Client n m-Ads Platform Schemes - N Amount = M Inventory + K Circles + T Time Registers Trial Offer ( Free ) : 0 Rs = 3 Inventory + 1 Circle + 1 Month Introductory scheme: 10 K = 3 Inventory + 1 Circle + 2 Months Jumbo Scheme : 1 Crore = 6 Inventory + 10 circles+ 1 year ... ... User 1 User n Subscription User needs to give at least 3 preferred choice of advertisement areas during subscription e.g. Mobiles, Entertainment, Sports etc Budget Scheme : 5 Lakh = 4 Inventory + 3 Circles + 3 Months Subscription  Free offers with initial subscription eg Free 1 month GPRS/3G Usage, free caller tune for 1 month etc  User will get points based on his usage of data/voice services post m-Ads subscription Pricing of Inventories EOCN WAP Location based targeting Voice Solutions SMS Audio Visual Content HIGHERPRICED Customized Schemes 0% 10% 20% Phase3Phase2Phase1 Data Mobile Standardization Understanding of Mobile Medium Unique User Tracking Third Party Serving Aggregated Reporting Experimental Repeat Campaigns Mobile Immersed Client Adoption Process
  5. 5. Communication Strategy m-Ads Benefits CLIENT BENEFITS  Trial offers to clients to build confidence and trust in the system  Variety of schemes ( Price wise ) to cater to both big clients and MSME’s  Discounts to regular clients END USER BENEFITS  Free services for 1 month to induce trial from end users  Loyalty points given to users based on data/voice usage post subscription  Points collected can be redeemed for services from Airtel Behavioral Targeting Based on the usage and the services availed by the users, specific ads will be shown. Geographic Targeting Based on the location, specific advertisements will be shown. Eg Restaurants, shopping complexes nearby Search Advertising Relevant ads will be shown based on what the user searches on search engines such as Google. Interactive ads Interactive ads in the form of games will be used to keep the user engaged. Idle Screen Usage The Idle screen of the user will be used to show relevant ads and offers from companies Subliminal Advertising Ads related to products can be subliminally placed in between apps, games and sms to create a sub-conscious impact.  Turn Advertisements into useful information  Don’t disturb or annoy the user by forcing messages  Use Analytics for prediction of relevant advertisements  Take continuous user feedback to improve service  Through loyalty programmes retain m-Ads subscribers and turn them into brand advocates KEYCOMMUNICATOIN STRATEGIES Message to the end-user will be conveyed through various innovative means
  6. 6. Marketing and Growth Strategy Target Segments – End Users Target Segments – Clients/Companies Growth Strategy  Pilot Launch in Metros and Category A Circles ( High Mobile Usage Circles)  Horizontal Expansion - Expansion to category B and category C circles based on the results of past launches in a phased manner  Vertical Expansion – More inventories and innovative channels through which advertisements are shown to the existing users. Large Companies MSME’s Small Service sector enterprises Noofpotentialclients Advertising Budgets Target Categories MSME’s provide the most attractive proposition followed by large companies based on market size. Positioning – Airtel m-Ads will provide you the highest ROI impact of advertisements and the flexibility to choose your target audience. Competitive Advantage – High Penetration of mobiles, advanced methodology for targeting the right audience, high ROI m-Ads subscribers m-Ads non-subscribers Try to move non subscribers to m-Ads subscriber through various channels such as word of mouth, viral marketing, PR Relevant Ads General Ads More ImpactMore data/voice at less cost No benefits like Loyalty points Most attractive target segments – Students, Working executives, Rural consumers Positioning – Airtel m-Ads subscription will provide you relevant information along with the additional benefit of more value at the same price through loyalty points that you can redeem for various services.
  7. 7. Financial Projections 50%50% WAP Development Fee Broadcast Fee 20% 80% SMS 0 200 400 600 800 1000 1200 2012 2013 2014 2015 2016 INRCrores Revenue Airtel revenues Total Mobile Ad Revenues CAGR 133% 0 50 100 150 200 2012 2013 2014 2015 2016 INRCrores Income Airtel Income - SMS Airtel Income - WAP Total Airtel Income Revenue Sharing Model CAGR 80% • Investment required only for Data Analytics and other technological capabilities as development, design and sales of advertisements is outsourced • Human Capital investment – negligible HIGH ROI  Revenue Drivers • Large subscriber base • Huge amount of customer information (preferences, voice & data usage, demographics)  Drivers of Sustainability • Technological capabilities to provide better targeting • Higher CTR causing lower CPM/CPC for clients.  Assumptions • Current revenue share between WAP, In-App, SMS remains constant for 5 years • Overall mobile advertising business grows ten fold in 5 years Outsourcing partners Airtel
  8. 8. thank you

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