Overcoming the challenges..associated with fragmentation in mobile advertising

s®

Igor Hendriksen

Founder & CEO Adfortel

15th June 2009, Mobile Advertising UK

Born and raised in the Netherlands

Studied Business & Economics, Erasmus University Rotterdam

A decade of telco experience in consultancy, sales and business development at

Logica(CMG) for tier-1 operators

FoundedAdfortel in 2007 (Advertsing For Telephony, mobile advertising focus)

Associate with Payter (Payment Terminal, mobile NFC payments & VAS focus)

Personal intro

Adfortel‟s patented solution:

• is an easy to integrate platform for inserting VoiceAds, which replaces waiting tone of thecaller (A-party)

• can be used voor mobile networks, VOIP networks and fixed lines

• can be combined with management modules for targeting ads to specific users

VoiceAds® offers a new method of mobile phone advertising. The traditional

waiting tone will be replaced by advertisements as soon as callers start a call. Because callers are subscribed to the service, their profiles are known. This allowes for targeted advertising with a high reach and effectiveness.

Founded in 2007

Netherlands based

VoiceAds offers innovativeand

effectivemobile advertising

Key characteristics:

• handset independence• wide reach• many instances of interaction

Campaign management with

Marketing Campaign Manager®.

Company intro

1 What factors make mobile a truly mass market medium?

2 What impact does handset fragmentation have on the attractiveness of mobile as

an advertising channel?

3 How can voice be leveraged to deliver mobile advertising inventory?

4 Case Study: driving revenues from mobile voice advertising

Topics

Topic 1 & 2

What factors make mobile a truly mass market medium?

What impact does handset fragmentation have on the attractiveness of mobile as

an advertising channel?

• Reach

• Frequencyof usage• Non intrusiveness• Personal relevance

• Controllable preferences• Rewards

• Costs

• IT’S ALL IN THE MIX!

• A MOBILE AD SALE IS NO WEB AD SALE!

Topic 3

3 How can voice be leveraged to deliver mobile advertising inventory?

!! VOICE IS STILL MOBILE'S KILLER APP !!

Based on customerprofiling

• Provides customer profile used for targeting ads

Using traditional call waiting time as a advertising channel:

• Based on the calling party (A-party)• 100% usage by customer base• No need for special handset, downloaded applications or mobile internet

• Feasible for mobile, VOIP and fixed networks

Non intrusive

• Opt in, not “spamming” the customer with sms, mms or e-mail

Airtime (call waiting time)

• On average 15 seconds of “silence” is no longer wasted but turned into airtime

High effectiveness

• Forced exposure (no zapping, spam filters, but guarenteed listening audience)

• VoiceAds will be replayed if called party is answering within short time (< 5 sec)

Call waiting time made relevant to users, advertisers and MNO‟s

offers interesting propositions for all key players in

the mobile advertising market

Operators

• New selling proposition for operators in the competition over market share

• Higher ARPU in comparison with traditional (prepaid) ARPU‟s • Creation of new pricing models (free minutes/sms/data/content)• Creation of an opt in customer base with detailed profile information of

subscribers; traditionally, the prepaid consumer profile and behaviouralattitudes are hardly known to operators

Advertisers

• Potential high reach

• Multiple contact moments and minimal waste• Targeted• Relevance and personal

• Forced exposure

Consumers

• Incentivized mobile subscription (low costs or free minutes/sms)

• Targeted and personal• Controllable preferences (i.e. no spam)!

Research shows high willingness to accept VoiceAds® in return for

incentives compared to other mobile advertising services

NL MI 16-24

Negative 51% 31% 23%

Neutral 20% 25% 27%

Positive 26% 42% 46%

NL MI 16-24

Negative 52% 36% 28%

Neutral 29% 25% 24%

Positive 22% 35% 45%

NL MI 16-24

Negative 50% 33% 24%

Neutral 22% 26% 29%

Positive 21% 38% 44%

NL MI 16-24

Negative 59% 48% 49%

Neutral 16% 23% 22%

Positive 19% 26% 27%

Banner on idle screen

NL MI 16-24

Negative 66% 50% 47%

Neutral 17% 24% 26%

Positive 12% 22% 22%

Voicemail

NL MI 16-24

Negative 66% 62% 60%

Neutral 15% 16% 18%

Positive 12% 20% 19%

NL MI 16-24

Negative 54% 39% 42%

Neutral 23% 31% 35%

Positive 16% 27% 18%

In person to person sms

Banner mobile Internet

Missed call notification smsPrepaid notification smsCall waiting time

NL: Dutch populationMI: Mobile internetters16-24: Youth 16-24

VoiceAd insights after market research performed by Blauw Research in

the Dutch market

Market potential

• With incentive (50 free call minutes

and 200 free SMS messages per

month), 30% of all mobile callers in

the Netherlands would probably to

definitely (9% definitely) allow their

provider to broadcast advertising

messages during the dial tone

(3,467,585 registrations).

• 4% are so enthusiastic that they

would consider switching to

another provider if they were offered

50 free call minutes and 200 free

SMS messages per month.

• One third are even positive about

this form of advertising in exchange

for an unspecif ied incentive of f ree

call minutes or a discount on the

invoice. With incentive, people are

even more often positive

compared to television and radio

advertising.

Incentives

• Incentives play a vital part.

• To reach critical mass, the provider

would need to offer at least 50 free

call minutes, 50 free SMS

messages or a €5 discount on the

invoice/additional call credit.

• There is a clear preference for a

discount on the monthly call

expenses. We expect that a monthly

discount of €10 on call expenses

would have the best ef fect.

• The target group would like to be

able to have some influence on

the advertising messages,

particularly on the quantity of

offers. This is a reactive rather than

proactive wish: a small majority statedthat they would not mind if the provider

determined the advertising topics.However, they want to correctundesirable advertising messages at

undesirable times.

• Matching advertising to interests

is important.

• There is no unacceptable time

for advertising messages.

Profile of the target group

• Interested people are looking for

ways to save money relatively

often.

• Interested people send more

SMS messages, spend more

money on their mobile phone

every month, and are looking for

ways to save on this more often.

• Nearly three quarters of the

interested people did not exclude the

possibility that they would make

more calls with Adfortel. 36% of the

interested people expect that they

would probably to definitely make

more calls.

• There is a wide interest in

Adfortel. Both prepaid and postpaid

callers are equally interested in

Adfortel. Interested people are

relatively younger, however. Men

were also found to have a greater

interest in Adfortel than women.

Uninterested people are more likely

to have a higher education.

VoiceAds® potential research shows substantial willingness to accept

and specific target groups can be distinguished

< 24 25 - 39 40 - 55 56 >

Interested (n=296)

Not interested (n=538)

Maybe’s (n=170)Total (n=1004)

Interested people are looking for ways to save

money relatively often

Interested people are relatively younger

Men were also found to have a greater interest in

VoiceAds than women.

Uninterested people are

more likely to have a higher education.

Based on VoiceAds potential research in NL (n=1000)

Experts acknowledge the potential of VoiceAds® based on several

relevant media planning criteria

Platform: VoiceAds Mobile Messages Mobile Internet Mobile applications

Channels

Callwaitingtime Sms Mms E-mail

Sites(banners)

Idlescreen

mSEM(search) Games

MobileTV

MobileVideo

Special developments

Costs 4 6 5 7 5 6 6 6 6 8 7

Reach 8 6 4 7 6 5 7 4 5 4 4

Effective Reach 8 6 5 7 6 8 7 6 7 4 4

Selectivity 8 7 8 7 6 7 7 6 7 4 8

Ability to createreach

6 7 6 6 6 7 6 5 5 4 4

Avialability 8 7 6 7 7 7 7 7 6 4 6

Usage 8 7 6 7 6 6 7 7 6 4 6

Exposure 4 5 6 7 5 7 6 9 5 7 7

Autority 8 5 6 7 5 7 6 7 5 7 7

TOTAAL 6,9 6,2 5,8 6,9 5,8 6,7 6,6 6,3 5,8 5,1 5,9

Based on Dutch mobile advertising experts view (n=60)

Topic 4

4 Case Study: driving revenues from mobile voice advertising

There are many incentive models, this example offers you a

„knife that cuts on three sides‟ !

CurrentBundle

(min/text)

IncentiveBundle

(min/text)

Total VoiceAd inventory

• VoiceAds are being played during current bundle and incentive bundle

• Only when limit of current bundle is reached, incentive bundle is granted• Current and incentive bundle generate revenue from advertising• Subscribers will generate more calls to get free minutes/texts

• Works for both postpaid and prepaid subscribers

Adfortel

Beukelsdijk 1073021 AE

RotterdamThe NetherlandsT : +31 (0)10 478 29 29

www.adfortel.com

Vincent van der Goes

+31 (0)6 2000 51 81

vincent@adfortel.nl

Igor Hendriksen

+31 (0)6 1435 00 55

igor@adfortel.nl

CONTACT