Telefonica launched a mobile screen ad service powered by Celltick to increase revenue from mobile data services. A trial of the service in Argentina showed 82% of 5000 users engaged with ads on idle screens. The service allows targeted ads based on user preferences like location and interests. It generated revenue from advertisers, paid content downloads, and premium subscriptions.

1. CLUE Case Study
Telefonica: LiveScreen Mobile Ads
Connected Life Experiences on the Move
Challenge/Opportunity
EXECUTIVE SUMMARY
Movistar, the mobile phone company from the Telefonica Group,
COMPANY PROFILE
Telefónica, headquartered in Madrid, Spain, is one needed to increase revenue from its value-added mobile data
of the world leaders integrated operator in the services. The company tested a mobile screen ad service. The service
telecommunication sector, providing
communication, information and entertainment had a six-month trial in Mar del Plata, Argentina, involving
solutions, with presence in Europe, Africa and
Latin America. approximately 5000 mobile subscribers. The trial results showed an
COMPANY HISTORY impressive consumer uptake: 82 percent of users engaged with the
Telefónica was fully privatized in 1997 and new communication channel on the idle screen.
became known as Telefónica S.A. the following
year when basic telephony in Spain was
deregulated. By 2001, Telefónica S.A. operated as Alliances/Partnerships
the leading telecommunications concern in
the Spanish and Portuguese-speaking regions
of the globe.
The mobile screen ad service is powered by Celltick, using the
company’s LiveScreen Media platform. Celltick’s LiveScreen Media
platform allows virtually any media content to be displayed on an idle screen, including news, entertainment, and
advertising. Celltick is the leading provider of innovative mobile marketing solutions for the idle screen. Led by its
®
flagship offering LiveScreen Media, Celltick mobilizes the power of the idle screen, handling over 40 million monthly
transactions through agreements with 35 mobile operators worldwide.
“The platform provides a great opportunity for advertisers as it allows
segmentation based on age, sex, area of residence, and content of
interest combined with the interactivity feature, which is unavailable
in traditional media.”
—Marcelo Mitroga, Content and Mobile Marketing Manager, Movistar Argentina
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2. CLUE Case Study
Strategy
● As an advertising window, an idle mobile screen offers a compelling advertising opportunity.
◦ Idle screen ads can be targeted by user preference and can offer “click-to-action” for immediate consumer-
to-advertiser interaction.
◦ Content messages and advertising can be customized to individual preferences, helping ensure that
subscribers receive only information that is relevant to them: for example, sports, entertainment, news,
events, business, and lifestyle.
● The LiveScreen application was designed to broadcast meaningful and relevant content to mobile
subscribers’ idle screens using cell broadcast technology.
● The Telefonica innovation team is particularly impressed with the platform’s ability to segment users based on
location, handset type, and areas of interest, which are generated from tracking user response to idle screen
messages.
Success Factors/Metrics/Monetization
Movistar’s idle screen mobile advertising channel was launched in May 2009. The basic channel is currently free
to subscribers and includes opt-in information and advertising messages. Movistar provides only headline/teaser
information as part of the basic package; if subscribers want to expand on the headline, they pay for that. Movistar
generates revenue from the service through advertising fees, paid content downloads, and a variety of premium
content subscriptions.
“We have always believed that effective mobile marketing begins on
the idle screen. We are very pleased that Telefonica has recognized
the opportunity and chosen Celltick to be the platform of choice.”
—Stephen Dunford, CEO, Celltick
Company Background
Telefonica owns 98.2 percent of Telefonica de Argentina S.A. (a fixed line service company). Telefonica owns
100 percent of Telefonica Moviles Argentina (a mobile service company). Telefonica, Argentina, has 4.6 million
fixed telephony subscribers, 1.3 million Internet and data subscribers, and 15 million mobile subscribers.
References
www.telecompaper.com/news/article.aspx?cid=672304
www.gomonews.com/telefonica-launches-billboard-mobile-advertising-on-idle-screens
www.celltick.com
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3. CLUE Case Study
Printed in USA FLGD 08867 02/10
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