(1) O2 Media has successfully used permission-based mobile marketing to reach over 6 million customers, surpassing the reach of some traditional media channels. (2) Location-based messages have generated high recall rates of 60-90% and increased sales and store visits for brands. (3) Video MMS campaigns have also achieved high recall, with 84% recall for a Lynx message and 77% interest in receiving more video ads. (4) Case studies demonstrated increased sales, such as a Starbucks offer that drove 14% redemption and £110,000 in incremental sales. (5) The presentation argues that mobile should be a core part of marketing strategies given its connectivity and ability to amplify other channels.

1. Can operators dominate permission-
based marketing?
Nick Pestell – Head of Agency Sales
@nickpestell

2. Agenda
1 2 3 4
What is O2 Media Think Data not mobile What ‘s worked so far? 2012

3. Our strategy
Helping our Customers Connect
O2 company to the people and things that are important to them,
vision in a way that is simpler, easier, better,
whenever, wherever, and however they want
O2 Twice as many fans as our leading rivals
company
goal
Helping our customers connect
O2 media to their personal passions, interests and needs,
vision in a way that’s simpler, easier, better, for them to
build/grow mutually beneficial relationships with brands
O2 media Build the market leading personalised media business
mission
Our
Using data for our customers’ benefit, as individuals
differentiator

4. Million O2 customers

5. Million O2 More
customers

6. Million O2 More customers
by the end of the year

7. By reaching six million customers O2 More now has greater
reach than many traditional advertising channels
Including the first episode of Channel 5’s Big Brother1
and two issues of The Sun2 .
1 5.1 million viewers (BARB)
2 2,821,618 average circulation (July ABCs)

8. Built on reach & targeting
Age, gender, region, handset
O2 Audience segment, ACORN
Basic targeting Preferences (O2 More)
Tariff, payment method
Location
Roaming, countries called, mobile web use,
Advanced targeting Matching to client customer base
Segmentations: Drivers, Commuters,
Bespoke audience segmentation,
Advanced modelling –
inferred preference/behaviour
Complex targeting
Location call data look-up

9. Footfall driver
Utilising Data via offers,
events &
promotions
Distribution
platform for
Drive sales
video content
through
mobile
websites
O2 More
Awareness,
and reach
alongside 6.5 million
other media customers Driving App
Downloads
Research &
Analysis
Driving to
Social Media

10. Agility of mobile
Mobile works effectively with other media channels such as TV , outdoor and
online. Mobile can be used to launch a brand campaign or as a quick and cost
effective way to increase momentum once a campaign has launched.
Morning, on the Lunchtime Afternoon Journey home Evening Bed time
Wake up & Rest of the
journey to morning, at work
breakfast school/work
Mobile Is Always On
Amplifies other media

11. What’s worked
so far?

12. Benefits to customers
Once per day
9%
4–6 times per week
9%
79% want
2–3 times per week
to receive
Offers/messages
Once per week
35%
weekly or
more often
Once per fortnight
8%
Once per Month
9%
Less than once per month – 4%

13. Location based messaging
Special Offer
You Are Here
60% message recall for ‘You Are Here’ location based
messages
90% message recall for fast food brands
46% on average increased likelihood to visit a store
and was over 50% for retailers
25% purchased after receiving You Are Here alert
83% of participants give You Are Here positive rating

14. Video MMS generates high recall
84% recalled the Lynx message
90%
Would you like more of this type of video advertising?
77% who watched the video would like to
80% receive more of this type of media
70%
60%
50%
40% 77%
30%
20%
10% 23%
0%
Yes No

15. Starbucks location based messaging results
Econometric modelling results
14% redeemed the offer
• 39,200 customers redeemed the offer
• £110,000 of incremental sales during
the 3 month period
• 93% recall of message.
23% said they
would redeem • 1/3 said increased purchase intent
the offer • 77% positive rating for O2 More

16. Building an audience through data
ESPN wanted to communicate to football fans
Solution: O2 iphone customers who have attended a Premiership match identified
through cell sites for each of the premier league football grounds

17. Lynx: A game changing campaign
Evolves the role mobile can play within the media mix,
amplifying traditional media channels
Innovative use of location based
messaging around Victoria Station to
encourage the target audience to engage
with the experiential outdoor posters
82% recall of message
89% associated brand slogan to product
24% purchased the product, 18% intended to
30% engaged either through purchase or via Facebook
High impact on non purchasers with 34% having an increased likelihood to visit a store
and 23% visiting Facebook

18. Impulse Diaries– Social Media Integration
250k unique engagements
over 3 SMS & MMS O2 More
executions
CTR of 2.9%

20. And we can make it simple for businesses to participate
– as well as consumers
Mobile advertising example
 Today mobile is a costly medium to use ...
– Today it takes advertisers on average 2-4 days to plan & book a
mobile campaign
 Operator fragmentation makes this worse
Multiple booking points Different opt-ins & customer policies
Inconsistent formats & pricing models No common measurement

21. ‘If you don’t have a mobile strategy, you don’t
have a strategy’
Messaging is part of digital, but unique in its own way.
Mobile is the connecting tissue, key to amplifying traditional media
The time to test and learn is now!

22. Thank you