Research report Service provider strategies for mobile advertising: case studies Alexandra Rehak October 2008 Research from Analysys Mason Fixed Networks and Services Analysys Mason Fixed Networks and Services online Wireless broadband forecasts for 2008–2015: HSPA, HSPA+, EV-DO, LTE and WiMAX market intelligence service Mobile social networking: strategies and case studies MENA telecoms market: strategies and opportunities Strategies for mobile broadband pricing and 2008–2013 packaging Mobile broadband: another substitution threat for Mobile proximity payments: scenarios for market fixed operators? development Business data services in Europe: market drivers and iPhone shows the way for mobile TV forecasts 2008–2013 Critical ingredients of mobile TV: femtocells and Multi-play services in Western Europe: market sideloading sizings and forecasts 2008–2013 Mobile media and entertainment in Western Europe: Central and Eastern European fixed telecoms: value chains and business models market sizings and forecasts 2008–2014 The business case for picocells and femtocells in the Pay TV in Western Europe: market sizings and enterprise market forecasts 2005–2013 Femtocells in the consumer market: business case Legacy matters: ensuring a soft landing for TDM and marketing plan services The mobile advertising and marketing revolution Regulatory headaches in the transition to nextgeneration networks Next-generation network architecture: what and The Central and Eastern European mobile market: trends and forecasts 2007–12 Seizing the opportunities from enterprise mobility when? Success factors for hosted and managed VoIP in Europe Western European fixed telecoms: market sizings and forecasts 2004–13 Mobile Networks and Services Analysys Mason Mobile Networks and Services 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 online market intelligence service Service delivery platform market review The Western European mobile market: trends and Network equipment manufacturers strategies market forecasts 2008–2013 review Published by Analysys Mason Limited • St Giles Court • 24 Castle Street • Cambridge • CB3 0AJ • UK Tel: +44 (0)1223 460600 • Fax: +44 (0)1223 452800 • Email: research@analysysmason.com • http://www.analysysmason.com/research Registered in England No. 5177472 © Analysys Mason Limited 2008 All rights reserved. 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ISBN 1 905495 76 5 Contents 0 Summary 1 Summary of findings from case studies 1.1 1.2 General mobile advertising strategy and key points of innovation SWOT analysis 1 15 2 Case studies 19 2.1 2.3 2.4 2.5 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 3 Mobile advertising offers service providers three key benefits 2.2 About Analysys Mason Market intelligence services from Analysys Mason Reports from Analysys Mason Custom Research: meeting your information needs vii 1 19 28 34 41 48 58 60 61 62 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 iv Table 1.5: Table 2.1: Table 2.2: Table 2.3: Table 2.4: Table 2.5: Table 2.6: Table 2.7: Table 2.8: Service provider strategies for mobile advertising: case studies Analysis of the strengths and weaknesses of case study service providers’ mobile advertising Vodafone: key statistics and partnerships Vodafone’s available mobile advertising formats by country, at October 2008 Selected example of Vodafone’s mobile advertising-funded content initiatives Telefónica: key statistics and mobile advertising partnerships 3 UK: key statistics and mobile advertising partnerships Virgin Mobile USA: key statistics and mobile advertising partnerships Blyk: key statistics and mobile advertising partnerships Selected advertising campaigns on Blyk’s UK network 16 20 22 24 29 35 42 49 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 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. 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