Blyk to Sign a Partnership Deal with Orange

Blyk, the popular ad-funded mobile operator from the UK, is about to sign a partnership deal with Orange. The deal, as you can easily guess, offers free talk time and SMS credit for users for getting ads on their mobile phones.

This marks a new direction for Blyk as a company, as it is focusing to get more partnership deals instead of catering to customers directly. A few months back, it was announced that Blyk will no longer accept new customers for its subscription programs.

According to the deal with Orange, customers will be given £15 worth of SMS and voice credit for getting ads on their phones. The target customer segment, as always, comprises teenagers and young adults (aged 16-24 years).

Blyk has about 200,000 subscribers and the company is looking for more partnerships like this to tap into their subscriber base. According to sources, a small team from Blyk has been working very actively to find more partners in the UK and around the world.

I don’t think Blyk will find it too hard to find potential partners to sign such deals with. After all, the company is quite popular and has a reasonably large subscriber base. Most importantly, its subscribers respond to mobile advertising campaigns. It is a fact which has been proved without a shadow of a doubt in the past. So, I think a lot of companies will be interested to join hands with the company. It will be interesting to see how things turn out for Blyk. Watch this space for more details folks.

Categories: Cell Phone Advertising, Blyk.

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Future of Mobile Advertising - Notes from Cannes Lions Ad Festival 2009

Mobile advertising was one of the important topics which were discussed at the 56th International Cannes Lions Advertising Festival. A number of executives representing big advertising and marketing firms around the world discussed the future of mobile marketing.

A lot of people who discussed the future of mobile phone advertising were of the opinion that it could become really big in the next two or three years. There are two reasons why they believe so.

1. The large number of mobile applications designed exclusively for smart phones which allow users to access multimedia content right from their mobile phones.

2. The ever-growing popularity of social networks like MySpace and Facebook which can be accessed right from the mobile phone thanks to mobile social networking.

Statistics show that mobile advertising has grown at an average of 45% in the last five years, which is incredible to say the least. In other words, what used to be a $3 billion industry has now become a whopping $30 billion industry in just about five years.

Let us now take a look at some of the most important points discussed.

1. A lot of executives said that they have launched a lot of mobile advertising campaigns in the recent past and the response so far has been pretty good.

2. Almost everyone was of the opinion that advertisers need to be more creative to generate interest among users. They were very clear that run of the mill ads which interrupt users every two minutes will definitely not work.

3. It was predicted that in the next three to five years, mobile marketing will account for nearly 10% of global media ad spending.

4. Highly targeted local mobile advertising campaigns will generate enormous amount of interest among small retailers. (Incidentally, this is something that I have repeatedly said in this blog. You can take a look at it here, here, here, and here.)

5. Emerging markets like Africa and Latin America hold a lot of promise as the number of mobile users has increased steadily in the past few years.

6. One of the biggest hurdles for advertisers around the world is the lack of compatibility between 3G networks in Asia and Europe.

7. 4G – the fourth generation high speed mobile technology – is something that advertising firms around the world are waiting for with bated breath. It is expected to hit the market in another ten years or so.

Categories: Cell Phone Advertising, All things mobile phones.

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Mobile Advertising to Go Mainstream?

A recent report from Limbo-GfK on mobile advertising has some encouraging news. It says that mobile advertising, as an advertising medium, is slowly becoming a mainstream phenomenon around the world. Here are some snippets from the report.

1. According to the report, nearly 35% of the mobile users in the U.S. got ads on their mobile phone during the fourth quarter of 2008. The number was particularly high with iPhone users – 42% of iPhone users in the country got mobile ads.

2. One third of mobile users who got ads responded to them in some way. Women, as expected, are more likely to respond than men.

3. 18-24 year-olds are most likely to respond to mobile ads.

4. In the UK, the mobile advertising market is growing bigger by the month. A lot of analysts have predicted a huge growth for the advertising medium which has made business owners, both small and large, take notice. As a result, a lot of marketers have decided to spend more on mobile advertising. The report claims that more than 50% of marketers in the UK have decided to increase their mobile advertising budgets in the coming months.

5. Already, more than 50% of advertising agencies in the UK have tried their hands on mobile advertising campaigns and have had relatively good success. So, it is likely to become an important part of the mainstream marketing plans both in the UK.

The way I see it, there are two important reasons why most marketers have decided to give mobile advertising a try. One is the huge success of companies like Blyk and AdMob. The other one, as we all know, is the global economic crisis which has made companies turn toward mobile advertising. At this credit-crunched time, it is obviously a wise move to spend on mobile advertising campaigns which are likely to give you better results than traditional advertising campaigns. Don’t you think?

Categories: Cell Phone Advertising, All things mobile phones.

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Mobile Advertising Startups Attract VCs Despite Rough Economy

We already saw how bad economy has managed to make a lot of companies interested in mobile advertising. It does not stop there. It keeps getting better and better. According to the latest reports, a lot of VCs (venture capitalists) are interested to invest in mobile advertising start ups as they show a lot of promise despite the rough economy.

Two examples come to my mind right now.

1. Blyk, one of the most popular companies in the market right now, recently managed to raise more than $50 million in private investments in its third round of funding. Considering the growth it has had so far, I would have to say that the investors have made the right choice.

2. AdMob, yet another famous U.S. based company, managed to raise around $16 million a few months back. Again, considering the numbers we have seen so far, this does not sound surprising at all.

If you notice carefully, you can see that there has been a paradigm shift in the advertising industry lately. The money spent on traditional advertising methods like TV ads, radio ads, and print ads has come down significantly. At the same time, mobile advertising is slowly becoming a lot more affordable than it used to be in the past. And thanks to the state our economy is in right now, businesses cannot afford to spend money on ads that don’t deliver results.

The biggest advantage with mobile phone advertising is that it delivers terrific results. The average CTR (click through rate) of a mobile advertising campaign is in the range of 1.5% to 2%. In some cases, it has been unbelievably high thanks to specific, targeted advertising campaigns. For example, the average response rate of Blyk’s mobile ad campaigns is a whopping 29%. So, even if you spend a little more money than what you usually spend, you are bound to get very good results. This is what makes mobile advertising so good.

Research firm eMarketer says that mobile advertising market will grow significantly in the next few years. It says that the proliferation of high end phones has made things easier for mobile advertisers as these smartphones open a lot of possibilities for ads.

In summary – I just have to say what I always say. Mobile advertising is here to stay. Don’t you guys think so too?

Categories: Cell Phone Advertising.

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Thanks to Bad Economy, Companies Turn Toward Mobile Advertising En Masse

The current economic crisis has taken its toll on a lot of companies around the world. Traditional advertising campaigns are not as successful as they used to be and this has made everyone think really hard to come up with a new strategy. The new strategy, apparently, is something that has been in the news for quite some time now. It is called mobile advertising.

Here are a few examples.

Pop group New Kids on the Block decided to start their own mobile fan club for their ‘The Block’ tour this year. While they were touring, they added at least a 1000 fans to their club each night. Over a span of just over 60 days, the band has over 30,000 loyal fans in their mobile fan club. All these fans get regular updates on tour schedules, merchandise info, ticket sales, and venue details.

It took around one and a half years for Echo Management to build an email list of 17,000 members for country pop singer LeAnn Rimes. Later, they decided to give mobile phone advertising a try. The result – over 24,000 members added to the list with just 16 shows.

In the month of June, UMRG (Universal Motown Republic Group) promoted Lil Wayne’s album ‘Tha Carter III’ by organizing a mobile advertising campaign. The result – 124,000 phone calls in the first week and a mobile fan list consisting of 90,000 members in a surprisingly short period of time. The label has now made this mobile list into a premier mobile fan club.

A famous retailer sent both mobile alerts and email alerts to customers offering discounts and promotional offers. The mobile alert campaign was 16% more effective than the email campaign. Also, people who received mobile alerts spent, on an average, $13 more than people who received email alerts.

The name behind these mobile advertising campaigns is Mozes – a very famous mobile marketing company. The web based platform from Mozes helps mobile advertisers create and manage simple yet effective mobile ad campaigns. The company has had a lot of success of late. The numbers are staggering. Take a look at some of the milestones reached by the company.

1. A whopping 3.5 mobile connections in a single month.

2. 130,000 mobile connections in a single day.

3. On an average, the company gets at least 7000 voice calls from fans.

4. Over 500 well known artists have a Mozes widget on their website or social networking profile.

A lot of experts believe that mobile marketing will be the key format of marketing in 2009. A mobile marketing campaign is very easy to create, even easier to manage, can easily reach the target customer base, and most importantly, gives amazing results. So, the future, like I’ve always said, is mobile.

Categories: Cell Phone Advertising.

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