Setting the stage for mobile advertising
- 1. Transforming a Traditional Duo into a Dynamic Trio
- 2. Transforming a Traditional Internet CTRs. Fully 51% of U.S. mobile subscribers who recall exposure to mobile advertising said they responded Duo into a Dynamic Trio to the ad in some way.1 3. Immediate Call for Action: The mobile can be used Challenges Facing the Operator in the Mobile to increase user awareness of brands, and can also Advertising Domain enable users to respond impulsively by clicking, calling, downloading, purchasing, etc. 2 + 1 might be the formula that secures the operator a central position in the mobile advertising value chain and “What’s in It for Me?” Intriguing and Hooking the End sparks significant revenue growth. User Two Is Company; Three Is a Successful New Mobile One of the reasons that mobile advertising is succeeding is Advertising Paradigm because it gives operators many ways to secure the support of the users. Even though the initial perception that some What happens when you add a third party to a two-party users have of ads may be that they are spam — irrelevant, equation? worthless, unwanted and uncontrolled, the operator can Mobile services typically involve two parties only: the demonstrate that mobile advertising is none of the above: operator and the end users. The operator weighs different 1. Relevancy: Because the operator targets the message strategies to approach the market, looks for the suitable to the user, mobile advertising ads and promotions are segments, and so forth, but the dance is invariably a tango for two — the operator and its users. relevant. They reflect the user’s interests. Self-service portals ensure that subscribers can easily fill in their Mobile advertising changes this paradigm completely. personal details and interests. Suddenly, there’s a new player on the dance floor — the advertiser. For the service to excel and reach its potential, 2. dded Value: Users receptive to mobile advertising A many old ways of thinking must change, and the duo must because there is something in it for them. Only operators transform into a trio. can ensure that ads deliver real value to the user; the The operator should balance its approach between these operator provides the users with what they desire most two very different customers — the advertiser and end user? in return for receiving ads: free airtime and free SMS. While doing so, the operator should take into account the According to Harris Interactive, 63% of the respondents different challenges and benefits for each party involved. are willing to receive ads in return for free airtime. 3. Control: Users opt in and exercise broad control over Selling the Idea to the Advertiser mobile advertising. It is the users who determine when A challenge for the operator is to raise the advertiser’s they receive ads, what kind of ads and from which awareness of the many benefits of mobile advertising. A advertisers. Almost 70% of users affirm that being number of characteristics of the medium distinguish it and empowered to opt in and out will encourage them to join give it special value to advertisers: a mobile advertising service.2 1. Knowing Who the User Is: Unlike off-portal players who The Bottom Line — Times Three may know which handset was used or from which IP address the user arrived to the landing page, the operator There is a trio of players, but the operator has the central role. The bottom line is that only the operator can deliver knows exactly who the subscribers are. This gives the the mobile advertising experience and value sought by operator unique value: the advertiser can, for example, advertisers and users. direct a campaign only to women aged 18-28 who spend $80 or more on mobile communication. No other player in The advertiser gains new, targeted, effective and measurable the arena can offer that to the advertiser. ways to promote products and services. 2. ffective: Mobile advertising is effective, with click-through E The user gains relevant information that provides real value, plus exercises ultimate control over the experience. rates (CTR) that are consistently significantly higher than For more information please visit www.comverse.com 2
- 3. The operator gains access to a lucrative new source of income that enables it to boost ARPU from existing traffic without charging its users more – in fact, the operator can increase revenues and profitability while actually charging users less. Done correctly, adding a third party to a traditional two-party equation is a win-win-win situation for all three parties. A bright spot in a global economic reality of diminishing profits, mobile advertising puts operators in a strong new position in the ecosystem and provides a way to leverage operator advantages to generate significant new revenues. 1 Taken from a study released by consumer research firm The Nielsen Company 2 Harris Interactive Research survey About Comverse Comverse is the world’s leading provider of software and systems Copyright ©2008 Comverse, Inc. All rights reserved. enabling value-added services for voice, messaging, mobile Internet and mobile advertising; converged billing and active customer Comverse, its logo, the spark design, Kenan and Netcentrex are registered management; and IP communications. Comverse’s extensive trademarks of Comverse Technology, Inc. or its subsidiaries in the United customer base spans more than 130 countries and covers over States and other selected countries. Other denoted product names of 500 communication service providers serving more than two Comverse or other companies may be trademarks or registered trademarks billion subscribers. The company’s innovative product portfolio of Comverse, Inc. or its subsidiaries, or their respective owners. The materials enables communication service providers to unleash the value of presented in this communication are summary in nature, subject to change, the network for their customers by making their networks smarter. and intended for general information only. For more information please visit www.comverse.com 3