ME Event Mobile Ads from a MNO's Point of View 081118b
1. 2nd. Mobile Multimedia Advertising and Marketing Forum, MarcusEvans, London, UK, v. 02b/2008-11-
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Understanding How an OperatorTries to
Position Itself in the Advertising Market
Nikolay Chakrakchiev, Business Development, MobilTel EAD, Bulgaria
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2. The MNO’s Start Position
The ideas perceived as given facts (1/2):
The present telcos are:
• Dealing with “commodity”-type services.
• “Immune” to change and recession not more than dinosaurs have been.
• Afraid of turning into “dumb pipes” for every other IP service provider.
… with shrinking revenues, if not extensively expanding.
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3. The MNO’s Start Position
The ideas we may perceive as given facts (2/2):
The Pillars, the MNOs can build their future onto, are:
• Identity management of large numbers of customers.
• Dealing with milliards of processes and transactions, esp. billing.
• Present availability of large volumes of customer behavior data.
… so, why not enter, … er, … the advertising market?
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4. Identifying the Demands Faced by Operators
… enter what?
Market, in which:
• There is big money – revenues 1:5 global advertising vs. global telecoms?
• 1% response rate is considered SUCCESS?
• Measurement and Reporting (media metrics) are “matter of statistical mind
games”?
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6. Identifying the Demands Faced by Operators
“We’re not in the business of keeping the media
companies alive.
We’re in the business of connecting with consumers.”
Trevor Edwards
Vice President, Global Brand & Category Management
Nike
October 2007
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7. Identifying the Demands Faced by Operators
So… What's the Problem?
Winning the attention of the customers
is harder and more expensive.
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8. The Advertising is in Major Shift
The users migrate to new screens for content and information...
Users are also enjoying and exploiting new control tools.
As consumers have more choices, they have to be reached where they want,
when they want and how they want.
... Advertising [is] funding a significant portion of entertainment around the
world (e.g. sponsoring is estimated 50 percent of television in major markets).
… the medium, content and advertising spending must synch up.
“The End Of Advertising as We Know It”
By Saul J. Berman, Bill Battino, Louisa Shipnuck and Andreas Neus
IBM Global Business Services
November 2007
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11. We talk about…
We talk about “MOBILE”:
And “Mobile” is the HANDSET, the device:
• an personal, intimate item.
• a connected, interactive one.
• a standardized piece of technology.
• increasingly capable, esp. as multimedia.
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12. We talk about…
We talk about “MOBILE”:
And “Mobile” is the MSISDN, the identifier:
• to address the particular addressee.
• to make the message personal.
• to collect and organize personal data.
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14. Sponsored services – a way to where? 1/2
Sponsored (ad-funded) services:
• if voice, messaging, data – considered not attractive from MNOs’ point-of-
view, as risk deterioration of core revenues.
• if digital content items – can be attractive, e.g. as way of clearing the
copyrights mess.
• if new, data based services – the optimal business model is the key.
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15. Sponsored services – a way to where? 2/2
Sponsored core services – a serious venture, requiring a lot of guts:
• investment heavy and complex solutions needed.
• limited reach, compared to the total MNO’s customer base.
• mediocre value of the audience in advertising terms.
• difficult to price correctly.
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17. OK, what is the MNOs’ trade?
Beside MNOs’ sponsored services, devices, portals,
MNOs have several other assets that advertisers value:
• a large customer base.
• an expectation for huge amount of available customer information
(preferences, real-time usage, demographics, etc.).
• billing and payment relationships and capabilities.
• provide a response channel for customers (including payments).
• in-store and call-centre customer service, incl. support customers’ post-
purchase.
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18. To Shout or to Serve?
There's a choice, faced by a MNO:
• The Short Run – to behave as a conventional media and start the
ads barrage.
or
• The Quest – to become the personal media, the different and new
type of media.
N.B. The above choices are not mutually exclusive.
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20. The road starts with the first step…
Some questions MNOs may ask in advance:
• What situation are we in?
• What vision do we have?
• What are the available resources?
• What is the timeline?
• Is there anyone ready to pay for it?
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21. The Basic Points
Ad distribution is just one of the advertisers’ needs.
To maximize the advertising performance is the ultimate goal.
This means MNO’s have to provide data and tools for:
− planning
− targeting
− reporting
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22. The Business Models
There is NO Universal
Business Model
• Bottom line: Covering the
network costs – by consumers
and/or by advertisers.
• Downstream – should be
transparent for the consumer,
e.g. flat rate.
• The Action or Upstream – to be
paid by advertisers and/or by
consumers.
• Advertisers pay premium
for the targeting.
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24. Ad System Blocks 2 – Campaigns
Interfacing with channels for
ad serving/ distribution :
Campaign planning and management, incl.:
− targeting
− frequency capping
− weighting
− time framing
− advertising policies enforcement
− etc.
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25. Ad System Blocks 3 – Data
Interfacing with multiple platforms,
which process customer
information:
• Technical abilities of the communication
device and channel
• Profiling by:
− by customer preferences (incl. provisioning opt-in/out)
− billing data
− demographics
− etc.
• Response Handling
• Ad Reporting/ Metrics
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26. Other Requirements
If the advertising system is opened to third parties:
For audience contact points – e.g. 3rd. party portals or services:
– protection mechanisms are necessary for the sensitive
information.
For business users interfaces:
– roles management scheme – roles and available functions split.
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27. Accents:
• Not a single, comprehensive
solution, but a puzzle of blocks.
• MNOs have to try to keep the
strategic position as
personal data collectors and
processors.
• The Quantum of Communication
– the individual or the MSISDN?
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28. Start with the solution the
market is ready to pay for.
Extend gradually
the enablers and
the offerings.
Keep the Precious
only for the MNO.
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30. CRM Serving 3rd. Parties
Operating the Future CRM for MNOs and 3rd. parties alike:
• Effectively interact with the customer in increasing number of everyday
situations.
• Development of “real time” data mining and CRM capabilities.
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31. Micro-Segments
Adequate approach on micro-segmented level:
interacting ads through channels and content to match the
addressees’ anticipation and action.
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32. More and even More
• Empowering the Brand fans and foes – user-generated ads.
• Enrichment of the ad forms:
– e.g. implementing interactivity in DVB-H services.
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33. Get the Best from the Present
MNOs’ universe – partnerships and interoperability:
multiple platforms in multiple operators sharing a common identifier:
the MSISDN,
and addressing the MSISDN with ads, adequate for respective profile and
situation.
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