Service provider strategies for mobile advertising: case studies
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1 Research report Service provider strategies for mobile advertising: case studies Alexandra Rehak October 2008
2 Research from Analysys Mason Fixed Networks and Services Analysys Mason Fixed Networks and Services online market intelligence service MENA telecoms market: strategies and opportunities Mobile broadband: another substitution threat for fixed operators? Business data services in Europe: market drivers and forecasts Multi-play services in Western Europe: market sizings and forecasts Central and Eastern European fixed telecoms: market sizings and forecasts Pay TV in Western Europe: market sizings and forecasts Legacy matters: ensuring a soft landing for TDM services Regulatory headaches in the transition to nextgeneration networks Next-generation network architecture: what and when? Success factors for hosted and managed VoIP in Europe Western European fixed telecoms: market sizings and forecasts Mobile Networks and Services Analysys Mason Mobile Networks and Services online market intelligence service The Western European mobile market: trends and forecasts Wireless broadband forecasts for : HSPA, HSPA+, EV-DO, LTE and WiMAX Mobile social networking: strategies and case studies Strategies for mobile broadband pricing and packaging Mobile proximity payments: scenarios for market development iphone shows the way for mobile TV Critical ingredients of mobile TV: femtocells and sideloading Mobile media and entertainment in Western Europe: value chains and business models The business case for picocells and femtocells in the enterprise market Femtocells in the consumer market: business case and marketing plan The mobile advertising and marketing revolution The Central and Eastern European mobile market: trends and forecasts Seizing the opportunities from enterprise mobility Telecoms Software Analysys Mason Telecoms Software online market intelligence service Billing and customer care market review Next-generation IP service assurance outlook CSP strategies market review Service delivery platform market review Network equipment manufacturers strategies market review Published by Analysys Mason Limited St Giles Court 24 Castle Street Cambridge CB3 0AJ UK Tel: +44 (0) Fax: +44 (0) research@analysysmason.com Registered in England No Analysys Mason Limited 2008 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. ISBN
3 Contents 0 Summary vii 1 Summary of findings from case studies General mobile advertising strategy and key points of innovation SWOT analysis 15 2 Case studies Case study: Vodafone takes a globally co-ordinated approach to mobile advertising Case study: Telefónica España Wireless Business has been proactive in the mobile advertising market Case study: 3 UK has taken a strategic approach to mobile advertising Case study: Virgin Mobile USA Case study: Blyk s revenue model has mobile advertising at its core 48 3 Mobile advertising offers service providers three key benefits 58 About Analysys Mason 60 Market intelligence services from Analysys Mason 61 Reports from Analysys Mason 62 Custom Research: meeting your information needs 63 List of Figures and Tables Figure 0.1: Table 1.1: Table 1.2: Table 1.3: Table 1.4: Positive and negative aspects of mobile advertising for the subscriber and media buyer audiences viii Innovative aspects of the mobile advertising strategies of Vodafone, Telefónica España, 3 UK, Virgin Mobile USA and Blyk 2 Key differences between Blyk s and Virgin Mobile USA s Sugar Mama propositions 3 Types of mobile advertising being offered by case study service providers 7 Industries named as major mobile advertising customers by case study service providers 11 Analysys Mason Limited 2008 Contents
4 iv Service provider strategies for mobile advertising: case studies Table 1.5: Analysis of the strengths and weaknesses of case study service providers mobile advertising 16 Table 2.1: Vodafone: key statistics and partnerships 20 Table 2.2: Vodafone s available mobile advertising formats by country, at Table 2.3: October Selected example of Vodafone s mobile advertising-funded content initiatives 24 Table 2.4: Telefónica: key statistics and mobile advertising partnerships 29 Table 2.5: 3 UK: key statistics and mobile advertising partnerships 35 Table 2.6: Virgin Mobile USA: key statistics and mobile advertising partnerships 42 Table 2.7: Blyk: key statistics and mobile advertising partnerships 49 Table 2.8: Selected advertising campaigns on Blyk s UK network 55 Author Alexandra Rehak (US Research Director) focuses on areas that include media and entertainment, mobile telecoms, and international carrier strategy. Before joining Analysys Mason, Alexandra was most recently Director of Advisory Services at TeleGeography, specialising in consulting and research on demand, supply and pricing of international telecoms services. Previously, Alexandra was Vice President, Strategic Development at Asia.com, a developer of Internet and mobile services and applications in Greater China. Her earlier experience includes managing Motorola s Business Research and Strategy group in Asia, acting as a Principal Consultant in the telecoms strategy group of PA Consulting Group and serving as the Director of Asia Research and Consulting for Pyramid Research. Contents Analysys Mason Limited 2008
5 About Analysys Mason Analysys Mason is the world s premier specialist advisor in telecoms, IT and media. Through our global presence, we deliver strategy advice, operations support and market intelligence to leading commercial and public sector organisations in more than 80 countries. The intellectual rigour, operational experience and insight of our people have helped our clients to meet some of the toughest challenges they face within the industry. Analysys Mason has consistently delivered significant and sustainable business benefits to our clients during the past twenty years on issues ranging from advising on operator strategy and tactics, development of national sector regulation, through execution of major financial transactions, to the deployment of public and private network infrastructure. We are respected worldwide for the exceptional quality of our work, our independence and the flexibility of our teams in responding to client needs. We are passionate about what we do and are committed to delivering excellence to our clients. The company has more than 300 staff worldwide, with headquarters in London and offices in Cambridge, Dubai, Dublin, Edinburgh, Madrid, Manchester, Milan, Paris, Singapore and Washington DC. Analysys Mason offers two types of service: Consulting We work with our clients to provide customised advice and support throughout the business cycle, helping major players to set strategy, plan for change and implement that change. Research We offer market intelligence services, publications and custom research to help our clients to identify key strategic issues, formulate strategies, identify trends and opportunities, and measure performance. For more information, visit our Web site at About Analysys Mason Analysys Mason Limited 2008
6 Market intelligence services from Analysys Mason Analysys Mason s online market intelligence services help you to keep track of the latest developments in major telecoms markets worldwide. Our services are regularly updated and include a sophisticated range of interactive search, benchmarking and download tools. Analysys Mason Fixed Networks and Services provides analysis of European operators and ISPs, country reports for more than 30 markets, country market forecasts, commentary on industry trends and a module on the broadband market. Analysys Mason Mobile Networks and Services provides insight into the strategies of key players worldwide, country reports for more than 30 markets, country market forecasts and analysis of industry trends. Analysys Mason s Telecoms Software research stream provides market share and forecast data, as well as in-depth analysis of trends in the global telecoms software market. Our analysts provide clients with insight into the current communications market and trends that are shaping the future global market. We cover billing, customer care, assurance, fulfilment, service delivery platforms and network management. The core of our telecoms software research comes from Analysys Mason s acquisition of OSS Observer. Our Analyst Support package, which allows you direct consultation with our telecoms experts, is an ideal complement to your chosen market intelligence service. For more information on our services or a guided demonstration, please contact our Sales and Customer Service team on +44 (0) , us at research@analysysmason.com or visit our Web site at Analysys Mason Limited 2008 Market intelligence services from Analysys Mason
7 Reports from Analysys Mason Analysys Mason s reports are designed to keep you up to date with industry developments and how they affect players in the telecoms value chain from fixed and mobile network operators, to software and equipment vendors, and content providers and distributors. Our reports will help you to: explore the factors that are driving market evolution understand how industry trends will affect your business define and evaluate your strategic options using decision frameworks and scenarios identify where opportunities lie for future growth find out which players are currently successful and why. Our publication programme offers more than 25 reports a year, covering all the key issues affecting the telecoms industry and the latest hot topics. Recent reports have provided expert analysis of such topics as mobile broadband, business data services, pay TV, mobile social networking, next-generation network architecture and telecoms software, and have included country market forecasts for fixed and mobile telecoms. Each report is accompanied by an Excel spreadsheet containing the forecasts or other key data discussed in the report, presented in an easy-touse format. All reports are offered with Analyst Support, allowing you direct consultation with the author. Shop online at or, for information about our report subscription packages, please contact our Sales and Customer Service team on +44 (0) or us at research@analysysmason.com. Reports from Analysys Mason Analysys Mason Limited 2008
8 Custom Research: meeting your information needs Analysys Mason has developed its portfolio of Custom Research services in response to customer demand for bespoke market intelligence, when more data is needed than is found in an off-the-shelf report or database, when there are complex questions about specific companies or markets that need to be answered, or when analysis needs to be tailored. Custom Research can deliver real value when an organisation needs to answer specific questions about how it is positioned in the market, and how to optimise performance at various stages of the product or service lifecycle. Market opportunities? Match to customer needs? Effective procurement? Suppliers Costs? New idea generation Competitive landscape? Regulatory regime? Pricing? Competitors and partners Company internal processes Regulators/ government/ legislatures Market and technology trends? Strategy Product or service Launch Marketing strategy? Channel strategy? Optimum efficiency? Market analysis? Optimisation Customers Customer satisfaction? Competitive positioning? Understand how your company is positioned Optimise performance in the product or service lifecycle In answering our clients questions, we bring a wealth of understanding of markets, and of techniques and services including: desk research, data collection and interpretation benchmarking services quantitative and qualitative surveys market sizing and forecasting competitor and partner profiling white papers, presentations and workshop facilitation event and trend analysis procurement assistance. For more information on Custom Research services from Analysys Mason, or to discuss how we could help you to meet your specific information needs, please contact our Custom Research team on +44 (0) or us at custom@analysysmason.com. Analysys Mason Limited 2008 Custom Research: meeting your information needs
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