2. Contents
• Mobile advertising on the rise
• Customer acceptance indicators
• Vodafone Czech Republic mobile advertising proposition
• Industry cooperation
3. Mobile advertising naturally assumes its role in media mix and is
reinforced by changes in traditional media consumption
• 89% of brands plan to use
European
customers media mobile phone marketing by
consumption 2008*
• Nearly one-third plan to spend
2000 40% 38% 5% 10% 5% N/A in excess of 10% of marketing
budget in mobile medium*
2006 38% 34% 16% 8% 4% ~EUR
• 52% of brands expect to spend
143
million
between 5% and 25% of budget
** in 5 years time*
2010 ~EUR
496
million
• Mobile advertising market
**
expected to reach €10.6 billion
Percent change -5% -11% +220% -20% -20% +348% by 2011**
Source: EIAA, IP Networks, TGI Europa
* Online Publishing Association 2006
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** eMarketer
4. Operators must carefully address customer and advertiser concerns to
unlock full potential of mobile advertising
Advantages Concerns
• Proximity and intimacy: wallet, keys, mobile “Already been burnt by
• 24x7 device ruthless ringtone companies”
• Highest ATS
• Low clutter
• Interactivity
• Mesurability
TV / Radio Internet Print Mobile “Already received SMS spam
Channels, Similarity with Group Individual which I did not realise I was
Targeting programs the subject of targeting targeting and signing up for and which has
and time of search or web based on frequency of
demographics display no opt out”
day site affinity
Age
Gender
At Vodafone we are very sensitive
Location to these issues. Missteps in this
area have brand impact for us as
Expenses ? ? ? well as for the advertiser.
Interests
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5. Customers are willing to accept advertising on their phones, provided
that it enables benefits for them such as free or discounted mobile
services
Would you like to receive SMS about products and
20%
services to your mobile?
Would you like to decrease your calling and SMS costs
44%
by accepting advertising on your mobile?
Would you accept advertising on your mobile if you could
45%
get free minutes and SMS?
Would you prefer to choose the industries you want to
81%
receive advertising from?
% of responses "yes" and "rather yes"
Source: MML research by OMD in Czech Republic, July/August
2007. Sample: 1 151. Population: 12-79. MA on rise Acceptance VFCZ proposition Industry coop.
6. Degree of acceptance for ads targeted upon individual interests is
higher than that for generic ads
What kind of mobile ads are you most interested in?
Fashion 48%
Municipal info 47%
Mobile phones 45%
Cosmetics 44%
Music and movies 44%
Food 41%
Traveling 37%
Services 37%
Automotive 37%
Financial services 34%
Nothing of the above 3%
Source: MML research by OMD in Czech Republic, July/August
2007. Sample: 1 151. Population: 12-79. MA on rise Acceptance VFCZ proposition Industry coop.
7. Ability to remain in control over whether and how ads are served is
important for mobile consumers
How important is it to you that...?
You can opt in or out of advertising 80%
You can decide how much advertising you receive 77%
You only receive advertising about things you are interested in 47%
Advertising is controlled and sent by your operator 42%
You only receive advertising about things you can do on or use with
16%
your phone
You only receive advertising related to well-known brands 13%
Source: Vodafone research in UK, Germany and Italy.
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Sample: 600 consumers.
8. Vodafone CZ launched a varied portfolio of mobile advertising
products to cater for complex advertiser needs
• Mobile Internet • Web2SMS
– Vodafone live! – Free unlimited SMS to Vodafone customers
– Yourmode – Service is available to any MNO customer
• Ad-sponsored SMS Info
• Ad-sponsored peer-to-peer SMS proposition
Student SMS Gratis
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9. Vodafone SMS Gratis is one of the first fully advertising-funded peer-
to-peer SMS propositions worldwide
• Free SMS to all domestic networks
• 600 SMS per day per user
• Available to students of age 15-26,
enrolled in any school in Czech
Republic
• Demographic data is collected
during opt-in process to enable
100% ad targeting:
– Age
– Gender
– ZIP
– School
• Free and seamless choice between
ad-funded or regular paid SMS at
any time
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10. For maximum customer convenience and flexibility, Vodafone offers
free SMS via downloadable Java client and SMS gateway on Vodafone
live!
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11. Student SMS Gratis is received well by the market, even though it is
not being communicated ATL
Student SMS Gratis
16 000 1 200 000
14 000
1 000 000
12 000
Impressions
800 000
10 000
Users
8 000 600 000
6 000
400 000
4 000
200 000
2 000
0 0
1 2 3 4 5 6
Weeks since launch
Unique users Delivered ad impressions
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12. To deliver maximum value, ads are targeted and offer rich interaction
options
• All advertising-related data traffic is zero-rated
• Ads are served real-time and targeted upon:
– Context
– Demo data (gender, address, age)
– Behaviorial data (spend, contract type, etc.)
• Interaction options:
– Click2MoreInfo
– Click2Browse
– Click2Call
– Click2SMS
– Click2Download
– Click2Buy
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13. Vodafone adopted Best in Breed sales approach by establishing an
internal sales house
• Engagement with major media & advertising agencies:
– education and awareness about mobile advertising
– mobile advertising as part of total marketing mix
• Direct engagement with brands
• Covering SME and SOHO segment in cooperation with Mediatel
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14. Industry-wide cooperation is required to unlock full potential of mobile
advertising
Challenge Approach
• When advertisers and media agencies • MNO’s need to promote more awareness
think of mobile advertising, initial and understanding of mobile advertising
knowledge is usually limited to SMS capabilities.
• Mobile advertising should not be treated a • Mobile differentiates with targeting,
subset of online advertising capping, integration with other media
channels e.g. via published short-codes.
Mobile is personal and not location
dependent.
• Need for industry-wide creative standards • Key to enable advertisers and agencies to
launch cross-operator campaings.
and performance metrics
Vodafone made the first step in Czech Republic. Now joint effort of all participants in mobile
advertising value chain is required to drive forward market education, standardization and
industry development.
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