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Igor Hendriksen #Maduk
1. Overcoming the challenges
..associated with fragmentation in mobile advertising
s®
Igor Hendriksen
Founder & CEO Adfortel
15th June 2009, Mobile Advertising UK
2. Personal intro
Born and raised in the Netherlands
Studied Business & Economics, Erasmus University Rotterdam
A decade of telco experience in consultancy, sales and business development at
Logica(CMG) for tier-1 operators
Founded Adfortel in 2007 (Advertsing For Telephony, mobile advertising focus)
Associate with Payter (Payment Terminal, mobile NFC payments & VAS focus)
3. Company intro
VoiceAds® offers a new method of mobile phone advertising. The traditional
waiting tone will be replaced by advertisements as soon as callers start a
call. Because callers are subscribed to the service, their profiles are known.
This allowes for targeted advertising with a high reach and effectiveness.
Key characteristics:
Founded in 2007 • handset independence
Netherlands based • wide reach
• many instances of interaction
VoiceAds offers innovative and Campaign management with
effective mobile advertising Marketing Campaign Manager®.
Adfortel‟s patented solution:
• is an easy to integrate platform for inserting VoiceAds, which replaces waiting tone of the
caller (A-party)
• can be used voor mobile networks, VOIP networks and fixed lines
• can be combined with management modules for targeting ads to specific users
4. Topics
1 What factors make mobile a truly mass market medium?
2 What impact does handset fragmentation have on the attractiveness of mobile as
an advertising channel?
3 How can voice be leveraged to deliver mobile advertising inventory?
4 Case Study: driving revenues from mobile voice advertising
5. Topic 1 & 2
What factors make mobile a truly mass market medium?
What impact does handset fragmentation have on the attractiveness of mobile as
an advertising channel?
• Reach
• Frequency of usage
• Non intrusiveness
• Personal relevance
• Controllable preferences
• Rewards
• Costs
• IT’S ALL IN THE MIX!
• A MOBILE AD SALE IS NO WEB AD SALE!
6. Topic 3
3 How can voice be leveraged to deliver mobile advertising inventory?
!! VOICE IS STILL MOBILE'S KILLER APP !!
7. Call waiting time made relevant to users, advertisers and MNO‟s
Using traditional call waiting time as a advertising channel:
• Based on the calling party (A-party)
• 100% usage by customer base
• No need for special handset, downloaded applications or mobile internet
• Feasible for mobile, VOIP and fixed networks
Based on customer profiling
• Provides customer profile used for targeting ads
Non intrusive
• Opt in, not “spamming” the customer with sms, mms or e-mail
Airtime (call waiting time)
• On average 15 seconds of “silence” is no longer wasted but turned into airtime
High effectiveness
• Forced exposure (no zapping, spam filters, but guarenteed listening audience)
• VoiceAds will be replayed if called party is answering within short time (< 5 sec)
8. offers interesting propositions for all key players in
the mobile advertising market
• New selling proposition for operators in the competition over market share
• Higher ARPU in comparison with traditional (prepaid) ARPU‟s
Operators • Creation of new pricing models (free minutes/sms/data/content)
• Creation of an opt in customer base with detailed profile information of
subscribers; traditionally, the prepaid consumer profile and behavioural
attitudes are hardly known to operators
• Potential high reach
• Multiple contact moments and minimal waste
Advertisers • Targeted
• Relevance and personal
• Forced exposure
• Incentivized mobile subscription (low costs or free minutes/sms)
Consumers • Targeted and personal
• Controllable preferences (i.e. no spam)!
9. Research shows high willingness to accept VoiceAds® in return for
incentives compared to other mobile advertising services
Call waiting time Prepaid notification sms Missed call notification sms
NL MI 16-24 NL MI 16-24 NL MI 16-24
Negative 51% 31% 23% Negative 52% 36% 28% Negative 50% 33% 24%
Neutral 20% 25% 27% Neutral 29% 25% 24% Neutral 22% 26% 29%
Positive 26% 42% 46% Positive 22% 35% 45% Positive 21% 38% 44%
Banner on idle screen Banner mobile Internet Voicemail
NL MI 16-24 NL MI 16-24 NL MI 16-24
Negative 59% 48% 49% Negative 54% 39% 42% Negative 66% 50% 47%
Neutral 16% 23% 22% Neutral 23% 31% 35% Neutral 17% 24% 26%
Positive 19% 26% 27% Positive 16% 27% 18% Positive 12% 22% 22%
In person to person sms
NL MI 16-24
Negative 66% 62% 60%
Neutral 15% 16% 18%
Positive 12% 20% 19%
NL: Dutch population
MI: Mobile internetters
16-24: Youth 16-24
10. VoiceAd insights after market research performed by Blauw Research in
the Dutch market
Market potential Profile of the target group Incentives
• With incentive (50 f ree call minutes • Interested people are looking for • Incentives play a vital part.
and 200 f ree SMS messages per ways to save money relatively
month), 30% of all mobile callers in often. • To reach critical mass, the provider
the Netherlands would probably to would need to off er at least 50 free
definitely (9% definitely) allow their • Interested people send more call minutes, 50 free SMS
provider to broadcast advertising SMS messages, spend more messages or a €5 discount on the
messages during the dial tone money on their mobile phone invoice/additional call credit.
(3,467,585 registrations). every month, and are looking for
ways to save on this more often. • There is a clear preference for a
• 4% are so enthusiastic that they discount on the monthly call
would consider switching to • Nearly three quarters of the expenses. We expect that a monthly
another provider if they were off ered interested people did not exclude the discount of €10 on call expenses
50 f ree call minutes and 200 f ree possibility that they would make would have the best ef f ect.
SMS messages per month. more calls with Adfortel. 36% of the
interested people expect that they • The target group would like to be
• One third are even positive about would probably to definitely make able to have some influence on
this form of advertising in exchange more calls. the advertising messages,
for an unspecif ied incentive of f ree particularly on the quantity of
call minutes or a discount on the • There is a wide interest in offers. This is a reactive rather than
invoice. With incentive, people are Adfortel. Both prepaid and postpaid proactive wish: a small majority stated
that they would not mind if the provider
even more often positive callers are equally interested in
determined the advertising topics.
compared to television and radio Adfortel. Interested people are However, they want to correct
advertising. relatively younger, however. Men undesirable advertising messages at
were also found to have a greater undesirable times.
interest in Adfortel than women.
Uninterested people are more likely • Matching advertising to interests
to have a higher education. is important.
• There is no unacceptable time
for advertising messages.
11. VoiceAds® potential research shows substantial willingness to accept
and specific target groups can be distinguished
Interested people are
looking for ways to save
money relatively often
Interested people are
relatively younger
Men were also found to
have a greater interest in
VoiceAds than women.
Uninterested people are
more likely to have a higher
education.
< 24 25 - 39 40 - 55 56 >
Interested (n=296) Maybe’s (n=170)
Not interested (n=538) Total (n=1004)
Based on VoiceAds potential research in NL
(n=1000)
12. Experts acknowledge the potential of VoiceAds® based on several
relevant media planning criteria
Platform: VoiceAds Mobile Messages Mobile Internet Mobile applications
Call Sites Special
waiting (banners Idle mSEM Mobile Mobile develop
Channels time Sms Mms E-mail ) screen (search) Games TV Video ments
Costs 4 6 5 7 5 6 6 6 6 8 7
Reach 8 6 4 7 6 5 7 4 5 4 4
Effective Reach 8 6 5 7 6 8 7 6 7 4 4
Selectivity 8 7 8 7 6 7 7 6 7 4 8
Ability to create
6 7 6 6 6 7 6 5 5 4 4
reach
Avialability 8 7 6 7 7 7 7 7 6 4 6
Usage 8 7 6 7 6 6 7 7 6 4 6
Exposure 4 5 6 7 5 7 6 9 5 7 7
Autority 8 5 6 7 5 7 6 7 5 7 7
6,9 6,2 5,8 6,9 5,8 6,7 6,6 6,3 5,8 5,1 5,9
TOTAAL
Based on Dutch mobile advertising experts view (n=60)
13. Topic 4
4 Case Study: driving revenues from mobile voice advertising
14. There are many incentive models, this example offers you a
„knife that cuts on three sides‟ !
Incentive
Bundle
(min/text)
Total
Current
VoiceAd
Bundle inventory
(min/text)
• VoiceAds are being played during current bundle and incentive bundle
• Only when limit of current bundle is reached, incentive bundle is granted
• Current and incentive bundle generate revenue from advertising
• Subscribers will generate more calls to get free minutes/texts
• Works for both postpaid and prepaid subscribers
15. CONTACT
Adfortel Vincent van der Goes Igor Hendriksen
Beukelsdijk 107 +31 (0)6 2000 51 81 +31 (0)6 1435 00 55
3021 AE vincent@adfortel.nl igor@adfortel.nl
Rotterdam
The Netherlands
T : +31 (0)10 478 29 29
www.adfortel.com