Nokia World 2007 Blyk Mobile Advertising

Blyk© Blyk Saturday, 05 January 2008

Pekka Ala-Pietilä

Blyk

5 December, 2007

2

What does it take for an

ad funded mobile

operator to succeed?

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Operator

Blyk believes

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Operator Media

Blyk believes

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So, what will drive the adoption and success of

mobile over other media?

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Relevance

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Mobile advertising is SPAM

Teens get free cell phone service in exchange for annoying ads.

Annoying me before I’ve even had a chance to interact with a company or product does not inspire consumer confidence.

Conventional thinking =

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What do young people say?

Q Research Advertising & Mobiles Report, April 2007 UK

71% of young people surveyed would like to

receive advertising messages targeted to

their particular interests.

(more than double the response for non-targeted communications).

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Blyk’s solution

Blyk members are 100% opted-in

and profiled

They’ve expressed genuine demand.

They profile themselves upfront and these profiles build over time.

For brands, Blyk enables precise targeting and detailed insight into

the habits, tastes and preferences of young people.

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Blyk’s solution

Messages related to anything that helps them to organise their lives.

High value offers based on user preferences.

Therefore advertising becomes a service for our members.

Blyk Quantitative Consumer Research January 07, 16-24s in the UK. 619 respondents

Timely messages that link to user’s behaviour and interest.

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Interactivity

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In mobile, content is king

CBS began selling television clips, games, ring tones designed to cell phones.

Computer becomes mobile phone.

Mobile blogging, instant uploads.

Conventional thinking =

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Mobile internet/mobile data services?

73% of young people don’t use data services.

IDC: Wireless Teen and Adult Consumer Entertainment Survey 3Q06

2/3 say they use it once a month or less.

Blyk Quantitative Consumer Research January 07, 16-24s in the UK. 619 respondents

2/3 of students found using the internet on their

mobile such a poor experience, they gave up

trying.InfoGin/Vansom Bourne, May 2007

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Why?

Access to content is a barrier.

Cost is a barrier.

Perceived value is minimal.

Not relevant to me.

Blyk Quantitative Consumer Research January 07, 16-24s in the UK. 619 respondents

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Blyk’s solution

From the users perspective, the primary need to communicate should drive everything in mobile.

I call you, you call me. I text you, you text me.

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Blyk’s solution

Blyk ad formats are based on the most dominant and most familiar pattern among 16-24s.... Messaging (text and picture)

Consumers and brands interact in a dialog.

2-way communications.

Brands ‘earn’ attention from relevant dialog with consumers.

User experience that’s 90% familiar and 10% new.

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L’Oreal: Icons - Spokesmodel dialogue

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Early indications

During the first six weeks, response rates to the campaigns

were in the range of:

12% to 43%

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To put this in context

Source: e-consultancy Sept 2007

Medium Average Response Rate (%)

Online Advertising 0.02

Paid Search Advertising 0.2

Email 0.1

Direct Mail 2

Direct Response TV 0.04

Magazines 0.2

Radio 0.01

“Response rates for cold [Mobile] campaigns are in the 3- 6% range while campaigns using client’s own

customer data fare much better with response rates ranging between 1.3% and 20%”

Nick Fuller, Chair, DMA Mobile - 2nd November 2007

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Mobile advertising when done right is not viewed as advertising at all...it becomes a service to the end user.

It becomes useful information.

A service that benefits both brand and consumers and builds a relationship between the two.

Brands and consumers create time for one another....

not just buy it.

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End-to-endcomplete control of our network,

user experience and

ad products

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Wireless

carriers

Airtime

broker

Platform

technologyOpt-in

databasesAdvertiser

Conventional thinking =

Mobile as a media is

complicated

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BlykAdvertiser

Blyk’s solution

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Purpose-built technology platform for Blyk’s advertising-funded model

Host Operator (Orange) Domain in UK

BSC/RNC

BTS

BTS

Blyk Telecommunications Center

PSTN

MSS/GCS

MGW

SMSC

Host Operator Domain in Country B

VMSC

2G/3G SGSN

Internet

Blyk inCountry B

A/Iu-CS

Gb/Iu-PS

Mc

Nb

VMS IN

GPRS PrepaidOSC

Prepaid &

Balance holder

D/F

WAP GW MMSC

BG

BG

Gn/Gp

Gn/G

p

ISN

(GGSN)

NPM

Gi

HLR

NTMS

BSC/RNC

BTS

BTS

MGWVMSC

2G/3G SGSN

Blyk in UK

A/Iu-CS

Gb/Iu-PS

Nb

BG

BG

PSTN/PLMN

Blyk CRM and Ad PlatformCenter

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Closing thoughts- relevance- interactivity- end-to-end

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Thank you