1. Transforming a Traditional Duo
into a Dynamic Trio

2. Transforming a Traditional Internet CTRs. Fully 51% of U.S. mobile subscribers who
recall exposure to mobile advertising said they responded
Duo into a Dynamic Trio to the ad in some way.1
3. Immediate Call for Action: The mobile can be used
Challenges Facing the Operator in the Mobile to increase user awareness of brands, and can also
Advertising Domain enable users to respond impulsively by clicking, calling,
downloading, purchasing, etc.
2 + 1 might be the formula that secures the operator a
central position in the mobile advertising value chain and “What’s in It for Me?” Intriguing and Hooking the End
sparks significant revenue growth. User
Two Is Company; Three Is a Successful New Mobile One of the reasons that mobile advertising is succeeding is
Advertising Paradigm because it gives operators many ways to secure the support
of the users. Even though the initial perception that some
What happens when you add a third party to a two-party users have of ads may be that they are spam — irrelevant,
equation? worthless, unwanted and uncontrolled, the operator can
Mobile services typically involve two parties only: the demonstrate that mobile advertising is none of the above:
operator and the end users. The operator weighs different
1. Relevancy: Because the operator targets the message
strategies to approach the market, looks for the suitable
to the user, mobile advertising ads and promotions are
segments, and so forth, but the dance is invariably a tango
for two — the operator and its users. relevant. They reflect the user’s interests. Self-service
portals ensure that subscribers can easily fill in their
Mobile advertising changes this paradigm completely. personal details and interests.
Suddenly, there’s a new player on the dance floor — the
advertiser. For the service to excel and reach its potential, 2. dded Value: Users receptive to mobile advertising
A
many old ways of thinking must change, and the duo must because there is something in it for them. Only operators
transform into a trio. can ensure that ads deliver real value to the user; the
The operator should balance its approach between these operator provides the users with what they desire most
two very different customers — the advertiser and end user? in return for receiving ads: free airtime and free SMS.
While doing so, the operator should take into account the According to Harris Interactive, 63% of the respondents
different challenges and benefits for each party involved. are willing to receive ads in return for free airtime.
3. Control: Users opt in and exercise broad control over
Selling the Idea to the Advertiser
mobile advertising. It is the users who determine when
A challenge for the operator is to raise the advertiser’s they receive ads, what kind of ads and from which
awareness of the many benefits of mobile advertising. A advertisers. Almost 70% of users affirm that being
number of characteristics of the medium distinguish it and empowered to opt in and out will encourage them to join
give it special value to advertisers: a mobile advertising service.2
1. Knowing Who the User Is: Unlike off-portal players who The Bottom Line — Times Three
may know which handset was used or from which IP
address the user arrived to the landing page, the operator There is a trio of players, but the operator has the central
role. The bottom line is that only the operator can deliver
knows exactly who the subscribers are. This gives the
the mobile advertising experience and value sought by
operator unique value: the advertiser can, for example,
advertisers and users.
direct a campaign only to women aged 18-28 who spend
$80 or more on mobile communication. No other player in The advertiser gains new, targeted, effective and measurable
the arena can offer that to the advertiser. ways to promote products and services.
2. ffective: Mobile advertising is effective, with click-through
E The user gains relevant information that provides real value,
plus exercises ultimate control over the experience.
rates (CTR) that are consistently significantly higher than
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3. The operator gains access to a lucrative new source of
income that enables it to boost ARPU from existing traffic
without charging its users more – in fact, the operator can
increase revenues and profitability while actually charging
users less.
Done correctly, adding a third party to a traditional two-party
equation is a win-win-win situation for all three parties.
A bright spot in a global economic reality of diminishing
profits, mobile advertising puts operators in a strong new
position in the ecosystem and provides a way to leverage
operator advantages to generate significant new revenues.
1
Taken from a study released by consumer research firm
The Nielsen Company
2
Harris Interactive Research survey
About Comverse
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enabling value-added services for voice, messaging, mobile Internet
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enables communication service providers to unleash the value of presented in this communication are summary in nature, subject to change,
the network for their customers by making their networks smarter. and intended for general information only.
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