Monetising Mobile 2: Oxygen8
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Oxygen8 Communications, established in 2000, is the largest privately owned interactive communications company with a turnover exceeding £50 million and a global presence across seven countries. The company specializes in mobile and online services, providing integrated digital solutions and has significant market penetration in Africa, particularly in mobile messaging and voice solutions. It focuses on creating cost-effective mobile marketing strategies and expanding opportunities in emerging markets, particularly through mobile services for brands and organizations.
![Challenge & Opportunity
SA mobile/roaming rates amongst highest in the World*
Poor historic view/mistrust of mobile (legacy: rip-off
comps & hidden daily subscriptions)
*NB we balance this with airtime voucher awards– attractive even to „contract‟ users
(transferable as a gift to children/domestic helps etc. on pre-paid phones).
Balanced by (upside/opportunity):
Influence of iPhone (apps/downloads on phones are
cool again)
Recession driven need for more cost-effective,
measurable marketing & advertising
[NB we‟re also building iPhone apps for clients – SA market only
approx. 200,000 iPhones; mostly decision-makers – e.g. adv
agency directors].](https://image.slidesharecdn.com/monetisingmobile2-oxygen8-101020032604-phpapp02/85/Monetising-Mobile-2-Oxygen8-7-320.jpg)
Monetising Mobile 2: Oxygen8
- 1. Oxygen8 Communications David Ryder Group Marketing Director
- 2. Company Overview Established in 2000 Largest privately owned interactive communications company Turnover more than £50 million p.a. & operating profitably Single integrated global communications infrastructure Supporting voice, mobile and online services Offering integrated digital solutions Covering delivery, billing, applications and content 88 staff located across our global offices A “one stop shop” service for our clients Worldwide Voice & Mobile Solutions
- 3. Global Footprint Dublin London, Denver Birmingham & Litchfield Barbados Dar es Salaam Johannesburg Sydney Offices in 7 Countries and connectivity in 38 Countries Mobile Messaging, Voice & Mass Media Solutions
- 4. Company Overview CMS (Caribbean) acquired Operataing in Africa Since 2006 JV with Mobiya announced 2009 Push Mobile Mozambique opened 2008 Company formed in South Africa 2007 Push Mobile JV established in East Africa 2006 Sunday Times No 54 fastest growing business 2005 in UK 2005 Company formed in Australia 2004 Awarded Sunday Times No1 2003 fastest growing business in UK 2002 Direct connections to Irish mobile operators completed Irish Telco licence awarded 2001 Company formed in Ireland Direct connections to UK mobile operators completed 2000 UK PTO license awarded Company formed in UK ‘Brands Need to Interact with Consumers’
- 5. Oxygen8 South Africa The Group‟s fastest growing business unit Directly connected to all 3 mobile operators Implemented WAP billing directly with Mobile Operators One of the Biggest WAP markets in the World Currently within top 5 aggregators Achieving great success in the brands and agency sector Brands such as Cadbury‟s, Unilever, McDonalds Ready-made media buying & production service ‘Brands Need to Interact with Consumers’
- 6. General observations SA has over 100% cellphone penetration 4 Mobile networks – Vodacom, MTN, Cell C & Virgin Recent new addition Telkom Mobile 4.5 million internet/SA PC users end of 2009 vs. 44.5 million mobile users (worldwideworx figures) 78% of mobile users in SA don‟t have PCs 1 in 6 internet searches in 2009 were from cellphones So where would you send advertising messages?
- 7. Challenge & Opportunity SA mobile/roaming rates amongst highest in the World* Poor historic view/mistrust of mobile (legacy: rip-off comps & hidden daily subscriptions) *NB we balance this with airtime voucher awards– attractive even to „contract‟ users (transferable as a gift to children/domestic helps etc. on pre-paid phones). Balanced by (upside/opportunity): Influence of iPhone (apps/downloads on phones are cool again) Recession driven need for more cost-effective, measurable marketing & advertising [NB we‟re also building iPhone apps for clients – SA market only approx. 200,000 iPhones; mostly decision-makers – e.g. adv agency directors].
- 8. Most of our current effort ... Moving to a more „mobile media‟ stance by creating selective, cost-effective marketing for corporates et al. Offering mobile as the media which locks together traditional adv & mkting (print, radio, TV) – it‟s „as well as‟, not „instead of‟. Put it in the audiences‟ pocket. Don‟t ask for extra marketing budget, just 10-15% of current advertising budget Advantages (USP) – interactive (audience can talk back immediately), measurable response, cost-effective & personal – almost everyone opens a mobile message Captures & builds active databases for future marketing Immediate targets are adv. & media agencies, brands, TV production companies & corporates
- 9. Additionally we have targeted Information for people on the move ... Financial groups/advisors – StanLib, IFA Net (e.g. client investment portfolio info) Hotel & country lodges – (where to stay/click here to book/local interest places, etc.) – Orion Hotel Group Sports sites (esp. football) – e.g. Supersport.mobi = 1m hits/month Mobisites are good for attracting 3rd party supportive advertising – sites can pay for themselves Others in our sights – these are just the starting points
- 10. East Africa Based in Dar es Salaam, Tanzania Formed in 2006 & Push Mozambique in 2007 Joint venture between Oxygen8 & Six Telecoms Company Direct connections in Kenya, Tanzania, and Mozambique Access to subscriber base of over 25 Million people Servicing subscribers in English, Kiswahili and Portuguese Only company in Tanzania to offer premium SMS & Voice 90% penetration in media sector in Tanzania Ready-made formats for premium-rate campaigns In-house production of video, audio & print marketing Consultation on regulatory environment Managed by local personnel with knowledge of local market Worldwide Voice & Mobile Solutions
- 11. The Opportunity - Mobile Penetration -Subscriber base in English speaking Markets-Excluding South Africa Nigeria 63,000,000 Kenya 18,000,000 Tanzania 17,000,000 Uganda 11,570,000 Ghana 12,000,000 Zimbabwe 2,000,000 Botswana 1,800,000 Zambia 3,500,000 Malawi 1,900,000
- 12. Some Issues Iphone App- Most phones are still basic but numbers of Smart phones increasing steadily. High Revenue Services- This can only run for Niche groups, most subscribers cannot afford High Premium services which cost over $2 per transaction Post paid services: Most of the market is prepaid approximately 90% across the region Online Gaming via Mobile phone- Regulatory authorities don‟t know how to regulate. (Opportunity!!) Adult Services : Conservative laws and Culture –Adult sites are accessed by mobile phone and on the Internet. Wap based services: wap penetration remains low except for countries like South Africa, Kenya, Morocco
- 13. Opportunities Music Content : Mostly offered by Networks so there is an opportunity to create a reputable source of content to network and B2C content brands. Sport Services : Football services- Premier league and Champions league. Mega Promotions : Regional Campaigns over two or more countries run concurrently. Opportunity to run campaigns with Big prizes Mobile Marketing : Marketing Via the Mobile and SMS Based marketing M-Government- Working with Government and Ngo‟s to provide key services over the mobile phone- M-Education-Health-Election Monitoring –Product Authentication Infrastructure Business: Providing a backbone for Companies in developed markets to run campaigns in emerging African Markets. 13
- 14. Thank You! For further information contact: David.ryder@oxygen8.com +44 7876033155