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Adfortel presentation at Mobile Advertising UK, June 2009
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Overcoming the challenges..associated with fragmentation in mobile advertising
s®
Igor Hendriksen
Founder & CEO Adfortel
15th June 2009, Mobile Advertising UK
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
FoundedAdfortel in 2007 (Advertsing For Telephony, mobile advertising focus)
Associate with Payter (Payment Terminal, mobile NFC payments & VAS focus)
Personal intro
Adfortel‟s patented solution:
• is an easy to integrate platform for inserting VoiceAds, which replaces waiting tone of thecaller (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
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.
Founded in 2007
Netherlands based
VoiceAds offers innovativeand
effectivemobile advertising
Key characteristics:
• handset independence• wide reach• many instances of interaction
Campaign management with
Marketing Campaign Manager®.
Company intro
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
Topics
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
• Frequencyof usage• Non intrusiveness• Personal relevance
• Controllable preferences• Rewards
• Costs
• IT’S ALL IN THE MIX!
• A MOBILE AD SALE IS NO WEB AD SALE!
Topic 3
3 How can voice be leveraged to deliver mobile advertising inventory?
!! VOICE IS STILL MOBILE'S KILLER APP !!
Based on customerprofiling
• Provides customer profile used for targeting ads
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
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)
Call waiting time made relevant to users, advertisers and MNO‟s
offers interesting propositions for all key players in
the mobile advertising market
Operators
• New selling proposition for operators in the competition over market share
• Higher ARPU in comparison with traditional (prepaid) ARPU‟s • 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 behaviouralattitudes are hardly known to operators
Advertisers
• Potential high reach
• Multiple contact moments and minimal waste• Targeted• Relevance and personal
• Forced exposure
Consumers
• Incentivized mobile subscription (low costs or free minutes/sms)
• Targeted and personal• Controllable preferences (i.e. no spam)!
Research shows high willingness to accept VoiceAds® in return for
incentives compared to other mobile advertising services
NL MI 16-24
Negative 51% 31% 23%
Neutral 20% 25% 27%
Positive 26% 42% 46%
NL MI 16-24
Negative 52% 36% 28%
Neutral 29% 25% 24%
Positive 22% 35% 45%
NL MI 16-24
Negative 50% 33% 24%
Neutral 22% 26% 29%
Positive 21% 38% 44%
NL MI 16-24
Negative 59% 48% 49%
Neutral 16% 23% 22%
Positive 19% 26% 27%
Banner on idle screen
NL MI 16-24
Negative 66% 50% 47%
Neutral 17% 24% 26%
Positive 12% 22% 22%
Voicemail
NL MI 16-24
Negative 66% 62% 60%
Neutral 15% 16% 18%
Positive 12% 20% 19%
NL MI 16-24
Negative 54% 39% 42%
Neutral 23% 31% 35%
Positive 16% 27% 18%
In person to person sms
Banner mobile Internet
Missed call notification smsPrepaid notification smsCall waiting time
NL: Dutch populationMI: Mobile internetters16-24: Youth 16-24
VoiceAd insights after market research performed by Blauw Research in
the Dutch market
Market potential
• With incentive (50 free call minutes
and 200 free SMS messages per
month), 30% of all mobile callers in
the Netherlands would probably to
definitely (9% definitely) allow their
provider to broadcast advertising
messages during the dial tone
(3,467,585 registrations).
• 4% are so enthusiastic that they
would consider switching to
another provider if they were offered
50 free call minutes and 200 free
SMS messages per month.
• One third are even positive about
this form of advertising in exchange
for an unspecif ied incentive of f ree
call minutes or a discount on the
invoice. With incentive, people are
even more often positive
compared to television and radio
advertising.
Incentives
• Incentives play a vital part.
• To reach critical mass, the provider
would need to offer at least 50 free
call minutes, 50 free SMS
messages or a €5 discount on the
invoice/additional call credit.
• There is a clear preference for a
discount on the monthly call
expenses. We expect that a monthly
discount of €10 on call expenses
would have the best ef fect.
• The target group would like to be
able to have some influence on
the advertising messages,
particularly on the quantity of
offers. This is a reactive rather than
proactive wish: a small majority statedthat they would not mind if the provider
determined the advertising topics.However, they want to correctundesirable advertising messages at
undesirable times.
• Matching advertising to interests
is important.
• There is no unacceptable time
for advertising messages.
Profile of the target group
• Interested people are looking for
ways to save money relatively
often.
• Interested people send more
SMS messages, spend more
money on their mobile phone
every month, and are looking for
ways to save on this more often.
• Nearly three quarters of the
interested people did not exclude the
possibility that they would make
more calls with Adfortel. 36% of the
interested people expect that they
would probably to definitely make
more calls.
• There is a wide interest in
Adfortel. Both prepaid and postpaid
callers are equally interested in
Adfortel. Interested people are
relatively younger, however. Men
were also found to have a greater
interest in Adfortel than women.
Uninterested people are more likely
to have a higher education.
VoiceAds® potential research shows substantial willingness to accept
and specific target groups can be distinguished
< 24 25 - 39 40 - 55 56 >
Interested (n=296)
Not interested (n=538)
Maybe’s (n=170)Total (n=1004)
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.
Based on VoiceAds potential research in NL (n=1000)
Experts acknowledge the potential of VoiceAds® based on several
relevant media planning criteria
Platform: VoiceAds Mobile Messages Mobile Internet Mobile applications
Channels
Callwaitingtime Sms Mms E-mail
Sites(banners)
Idlescreen
mSEM(search) Games
MobileTV
MobileVideo
Special developments
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 createreach
6 7 6 6 6 7 6 5 5 4 4
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
TOTAAL 6,9 6,2 5,8 6,9 5,8 6,7 6,6 6,3 5,8 5,1 5,9
Based on Dutch mobile advertising experts view (n=60)
Topic 4
4 Case Study: driving revenues from mobile voice advertising
There are many incentive models, this example offers you a
„knife that cuts on three sides‟ !
CurrentBundle
(min/text)
IncentiveBundle
(min/text)
Total VoiceAd inventory
• 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
Adfortel
Beukelsdijk 1073021 AE
RotterdamThe NetherlandsT : +31 (0)10 478 29 29
www.adfortel.com
Vincent van der Goes
+31 (0)6 2000 51 81
vincent@adfortel.nl
Igor Hendriksen
+31 (0)6 1435 00 55
igor@adfortel.nl
CONTACT
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