A thorough POV/strategic partnership recommendation to AT&T Interactive I wrote in 2009, nearly a year after the launch of MobileBehavior. I've always been highly interested in dual-sided business models since reading case after case on the Dentsu/NTT DoCoMo/D2 JV which formed a JV called iMode. Essentially, a telecom company and an advertising agency got together and said, "hey, you do this well, we do this well... let's get together and make some money by developing and distributing mobile content." To me, anyway, that's a lesson from the east we should learn and apply as this flow economy races on and companies who were our competitors yesterday, become our partners today.
The "Mobile Advertising Innovation" document was a proposal to AT&T Interactive that paired the telecom giant's YP arm, with Omnicom's stable of creative agencies and talent to create mobile websites (WAP) for small business owners -- to supplement the advertising revenue generated from sales of Yellow Pages ads. It also added an additional hyperlocal component with the inclusion of an IP-addressable digital out of home network called Indoor Direct. I departed Omnicom shortly after the deal was done, and like many new and innovative media products and unconventional business models, I can only imagine this very promising initiative was shelved when it lost momentum it had gained through someone championing it and having the willingness to do something different and better for advertisers, media owners and agencies alike.
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Dual-Sided Business Model: Omnicom, AT&T, Indoor Direct
1. Jason Newport
CMO & Managing Director
MobileBehavior
220 E. 42nd Street
New York, NY 10017
jason.newport@mobilebehavior.com
1.212.453.2203
MobileBehavior
Mobile Advertising
Innovation
Creating Value with
Cooperative Solutions
& Services
A Strategic POV for AT&T Interactive
CONFIDENTIAL
2. EXECUTIVE SUMMARY
of MobileBehavior to identify points of
entry and opportunity for AT&T Ad Solutions and its suite of mobile marketing and
advertising products and services within the Omnicom group of advertising agencies and
media services firms.
We view the emerging mobile marketing and advertising opportunities for Omnicom
agencies and media services companies as a growing but complex opportunity that is
currently being addressed in a highly fragmented manner by agencies and wireless
carriers.
We addressed the following key challenges that are common among all strategists who
work in or with the telecom industry to ensure that our recommendations are complete
and considerate:
1. Overall Strategy: How is the digital economy evolving, what are the best strategic
responses and the most profitable market opportunities?
2. Voice and Messaging: How best to innovate core service offerings to add value and
grow revenues?
3. Data and Broadband: How to ensure incentives and rewards are better aligned
across the mobile advertising value chain?
4. New Communications Services: How can latent mobile network operator capabilities
be better exploited to address new market opportunities?
MobileBehavior is a strategic specialty agency within Omnicom Group, t
leading advertising and marketing communication services companies. We are an
Omnicom common asset, designed to address the challenges and opportunities within
the advertising industry that are not unlike those found in telecom or any industry with a
dynamic value chain.
We are keenly aware of the possibilities and opportunities that exist with this cooperative
strategic thinking
happening right now in China, Germany, UK, and the successes and failures of the
originators and replicators of the model. These players include Softbank, DoCoMo,
Vodafone, and many more who each remain important in the development of our own
innovative model and approach.
The vertically integrated telecom business model is under attack from all sides. Our
agency and our partners within Omnicom Group, and throughout the mobile advertising
value chain, are proactively answering the call for innovation fr
leaders:
Vittorio Colao, CEO, Vodafone 2009
Ralph de la Vega, CEO, AT&T, 2009
Chairman Wang Jianzhou, China Mobile, 2007
CONFIDENTIAL
3. AGENCY POINT OF VIEW
The risk that AT&T Ad Solutions faces under current circumstances is becoming an
operational silo, developing and selling ad solutions and services on its own (with current
partners). In addition to many other reasons to pursue an alternative, this will preclude
AT&T from the benefits of the strategic recommendations MobileBehavior continues to
actively provide to advertising agencies and media services firms within Omnicom for
its 5,000+ clients.
RECOMMENDATION
AT&T and MobileBehavior should immediately develop mobile advertising
environments, products and services that disrupt the traditional mobile marketing
ecosystem and supply chain,
enabling both Omnicom and AT&T
to create and develop new and
sustainable market space, solutions
and services.
This agency/carrier hybrid would
transcend vertical categories and
generate mass migration to the
mobile Web, driving new mobile
inventory and buyers to match
essentially creating supply while
simultaneously driving real-time
demand.
Our proposed transformational business would enable an unmatched, unified marketing
and media services offering that would add tremendous value to consumer experiences
everywhere with sustained commitments and participation from a premier network
operator, the leading agency
collective, brands and
businesses everywhere..
In tackling the common
challenge of agency service,
MobileBehavior and all
Omnicom agencies recognize
that generating positive
outcomes requires
engagement, and real
engagement comes through
experiences.
Therefore, being able to map
and shape those experiences
is the only way Omnicom and AT&T will be able to create strategies for genuine
improvement and ultimately the transformation of services.
Agency Journey Services!
CONFIDENTIAL
4. VALUE CREATION VIA NETWORK INNOVATION
We continue to see firsthand the networks of connected firms acting as an increasingly
important alternative for traditional markets and hierarchies for value creation, namely
those in Japan and Europe in telecom and agency/media services.
Omnicom imperatives for its agencies
1. Digital, digital, digital and more
digital.
2. Global optimization.
3. Metrics and accountability.
4. Consumer insights for relevance.
5. Innovation. Re-tool.
6. Agility, flexibility, versatility.
7. Collaborate or die.
Omnicom Collaboration Models
Networks are argued to be better adapted to knowledge rich environments because of
their superior information processing capacity compared to traditional mechanisms. We
see the principal benefits of networking innovation in the context of AT&T and
MobileBehavior in the following areas:
Risk and cost sharing
Obtaining access to new markets and technologies
Speeding products (ad, media and otherwise) to market
Pooling complementary skills
Acting as a key vehicle for obtaining access to external knowledge
Of course, there are critical requirements that come with innovation activities between
two companies with this measure of influence, including:
Additional internal interface require coordination effort as well as high dependency
on other members of the network
CONFIDENTIAL
5. This underlines the need for an appropriate, situation-specific model for configuring and
managing our proposed AT&T/MobileBehavior innovation network. We believe we have
the appropriate players at the table in AT&T and MobileBehavior on behalf of the
-
channels to day and room to grow with the future.:
MobileBehavior recognizes the need for both Omnicom agencies and AT&T to recognize
the strengths and position of agencies and the carriers in the mobile marketing value
chain. Brands now require their Omnicom agencies to tell a story on their behalf that
drives consumer participation and paves engaging paths to purchase.
Interactive agencies require publishers and media properties to customize and optimize
demand for focus on value-adding-services, accessibility and fostering of social
interactions i
must evolve in parallel to take advantage of this opportunity.
CONFIDENTIAL
6. MobileBehavior POV
MobileBehavior and AT&T could jointly own the mobile triad, creating a cross-industry
tele-media powerhouse; a best of breed mobile advertising, mobile agency services,
Focus of the joint offering would enable pervasive mobile marketing activity among
thousands of brands and millions of small and medium-sized businesses in the US
alone. This partnership would enable:
AT&T on-portal content and inventory made available for influx of mobile advertisers
and site publishers
Local mobile solutions and services for Yellowpages.com field
Off-portal publishers and ad networks made available for preferred partner
consideration (beginning with current Omnicom and AT&T providers and partners)
Cooperative Value Proposition
We see very a very unique selling proposition in developing
interactive/mobile advertising solutions. We know we can make your ad solutions and
services stronger, broader and more meaningful, enabling:
Additional revenue channels
Groundbreaking value and measurement for brands and businesses everywhere
Premium perception
Partner-proven ROI measures and analytics
Enormous distinction enabled with a media/agency/ATTi seamless offering
For MobileBehavior and each of
partnership with AT&T is an opportunity that is not available with other forms of media
and go-to market solutions. Unique benefits include:
A holistic view of customers across technology platforms, channels and brands
One-to-one access: targeting the specific user, as opposed to the larger household
associated with the service
Customer data: AT&T maintains a wealth of subscriber and consumer information,
including data on customer usage, location, and demographics.
Value for Agencies
Primarily:
Attract and satisfy brand advertisers with a standards-based, open mobile
advertising platform
Leverage data that can be used in developing targeted campaigns
Monetize the mobile advertising value chain by fairly pricing the assets that each
entity brings to the table
Value for AT&T
This cooperative would provide AT&T with the opportunity to offer true seamless mobility
options and services to consumers, AT&T subscribers, prospects, agencies, brands and
businesses by providing them with another category of highly personalized mobile
content and services.
CONFIDENTIAL
7. Our plan would drive the development of a unique, tremendously profitable revenue
channel for AT&T, combating the current, and projected, rapid decline in pricing levels
for mobile media/MEdia Net CPMs.
Ultimately, mobile advertising options offered by AT&T to MobileBehavior under this
partner structure should be managed hand-in-hand with AT&
management and delivery strategy. As web-based models continue to be delivered into
the telecommunications environment, AT&T is best suited by finding a strategic partner
that understands the intersection of those two spaces. MobileBehavior and its Omnicom
common asset integration model is the strategic partner and unified approach AT&T
requires, and we have found an ad solution counterpart with a position as unique as our
own.
MobileBehavior & Omnicom AT&T Ad Solutions
CONFIDENTIAL
8. CREATING AN ADVERTISING-FRIENDLY ENVIRONMENT
MobileBehavior has seen
Omnicom agencies and
their clients increasingly
require a more rational
mobile advertising
ecosystem, with greater
visibility into performance.
While the sophisticated
browsers on next-
generation mobile devices
such as the iPhone are
being touted as a key driver
behind mobile banner
advertising, other mobile
advertising models that rely
on WAP and SMS enablers,
remain central to
M
Based on our findings above, our primary considerations and recommendation(s):
Customer-centricity enablers:
1. Search/discovery/instruction/find
2. Proximity/location/local/awareness/context
3. Recommendation/bridge or bonded and the strength of connections
4. Links
5. Barter/trade/exchange
phone, possibly based on the subscri
activity for example, an advertisement and a coupon could be pushed via WAP to a
user passing a restaurant at midday. When combined with customer information such as
preferences or history, direct message marketing can be highly effective, but is the most
likely form of mobile advertising to raise concern about privacy issues, making it critical
that this form of advertising be permission-based
In-message advertising, in which advertising is inserted into text messages that are sent
between subscribers, potentially as part of an ad-funded SMS service in which users
accept ads in exchange for free text messaging a model particularly well-suited to the
cost-sensitive youth market.
Interactive services, which incorporates mobile advertising with voting, polls, contests or
other community- and brand-building exercises, enabling the advertiser to create a
relationship with the user.
One example leverages advertising that is tied to mobile social networking applications
(e.g. MySpace Mobile, developed by MobileBehavior for AT&T), or WAP site that is
created around a specific brand that includes games, messaging and content.
Brand and product placement in mobile video games or video clips, similar to product
placements in movies and television shows. This approach holds promise as being a
less invasive but still highly effective form of advertising.
The most obvious way for AT&T to monetize and stay relevant in the mobile advertising
opportunity is via its own mobile brand portal, MEdia Net, which for many AT&T
users become more web-savvy, they will begin exploring the broader mobile internet and
use of MEdia Net will decline.
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CONFIDENTIAL
9. The better, more future-proof solution is for AT&T to leverage its unique characteristics
to build a strong partnership with MobileBehavior and Omnicom, and thus ensure that it
is able to maintain a spot in the value chain.
We see the following unique characteristics in AT&T:
Ownership of customer data
Control over mobile web adoption
Distribution control
Value-added capabilities
Ability to create revenue relationships
1. primary value to
Omnicom agencies and their clients or indeed any third-party content provider as
its ability to collect, analyze and segment that information for use in delivering highly
targeted, personalized messaging to the end user. The delivery of that information
can then be monetized, creating an additional revenue stream for AT&T.
2. Value-added capabilities: AT&T is deploying IMS- and SDP-based enablers such as
presence, location and device awareness, which can support more targeted and/or
situational advertising, such as a coupon that is sent to the subscriber based on his
current location, or a video clip that is optimized for the type of wireless device being
used. When implemented in conjunction with policy rules, Omnicom agencies can
also tailor messaging based on criteria such as subscriber preferences or time of
day.
3. Ability to create revenue relationships: AT&T is now starting to free itself from the
constraints of antiquated billing systems by leveraging advanced billing technologies
and SOA. AT&T has the capability to offer billing models to monetize relationships
across multiple criteria based on clicks, downloads, hits, and thresholding thus
their clients.
SEAMLESS OMNICOM INTEGRATION
The goal for MobileBehavior is to create mobile experiences for consumers that add
value, persuade, and drive conversion and for Omnicom agencies to realize the
benefits of facilitators as:
Life enablers
Life enhancers
Life simplifiers
Life navigators
Success requires dynamic tools and content to support scale of mobile advertising within
the agency network. Essential common functions of a mobile platform optimized for
ongoing campaign development among many agencies include:
Real-Time Advertising Revenue Management: If a video clip is downloaded, AT&T
currently shares the revenue generated by that download with the developer of that
content, plus possibly additional third parties, such as a content aggregator.
Along the same lines, if under a new cooperative model, a mobile advertisement is
delivered to a subscriber, revenue associated with that transaction both the cost of
placing that ad and possibly any revenue generated by a response to it would be
distributed among multiple parties, including AT&T, the advertiser, the Omnicom
advertising or marketing agency, etc.
This requires a real-time billing platform with the following features:
1. Support complex new revenue models, including third-party content, mobile
advertising, etc.
CONFIDENTIAL
10. 2. Manage a 360-degree view of all revenue relationships, including consumer,
business-to-business, wholesale and other partner relationships, as well as any
advertising or royalty payments.
3. Pre-integrated business process flows from concept to cash to care that
guarantee the integrity of information as it passes among systems, enabling
faster time to market while lowering total cost of ownership.
4. Standardize via secure Web services-based APIs that enable secure third parties
access and integ
Policy management: Policy management capabilities for the AT&T network and the
consumer are critical to understanding and managing ecosystems. It is critical that
AT&T recognize and proactively address how subscribers want to be approached
and targeted.
! While some customers may be amenable to receiving ads via their mobile
phones, particularly in exchange for coupons or discounts, others may want
only certain types of information, or simply not want to receive ads at all.
! The policy management system must proactively wed subscriber information
and preferences with network behavior in order to ensure that customers
receive advertising that is in line with their comfort levels and/or any privacy
limitations that may be in place. This is paramount to MobileBehavior and its
Omnicom agency partners.
Business intelligence: As noted earlier, AT&T owns a wealth of information about its
customers, but generally lacks the ability to tie that data together and use it to create
marketing that is more relevant.
! The solution to this challenge is an AT&T/MobileBehavior centralized
business intelligence solution with predictive analytics capabilities that
enables AT&T to integrate disparate data points to create a single view of the
customer that it can then make available to MobileBehavior for use-purposes
within Omnicom.
Secure exposure of network elements: MobileBehavior recognizes that sophisticated
advertising capabilities rely on next-generation network enablers such as location
and presence servers.
! AT&T is understandably concerned about making those enablers available to
MobileBehavior without compromising the security of its network.
! MobileBehavior proposes an application environment that provides access to
those network elements via Web Services or Parlay APIs while maintaining
the integrity of the AT&T network.
-in-hand with its current
larger content strategies. While the current surge of interest in mobile advertising has
startups, both AT&T and MobileBehavior/Omnicom run the risk of implementing a point
solution that address just one form of content advertising that cannot then be
integrated with any other content management solutions.
A better solution is a single, flexible content delivery platform based on industry
standards such as SOA that enables us both to evolve our mobile advertising strategies
as part of larger initiatives around creating, delivering and managing all types of content.
Agency Global Mobile Marketing Platform
Development of the Omnicom Global Mobile Marketing Platform is in prototype staging
currently. The platform is intended for agency and client use and will essentially be a
service delivery platform (SDP), a standards-based architecture for the creation and
delivery of mobile advertising, media and promotional services.
The mobile platform develop
evaluation of Omnicom advertising and media services agencies globally during its first
year of business as a mobile specialty agency within Omnicom. This year-long
CONFIDENTIAL
11. discovery phase dissected agency process in key global market segments including
North America, South America, EMEA and APAC.
largest agencies, providing strategic brand, marketing, advertising and media counsel to
global brands. Among others, these agencies included:
Advertising/Creative:
Tribal DDB Worldwide
BBDO Worldwide
Goodby
EVB
Media:
OMD
PHD
Resolution Media
PR
Fleishman-Hillard
Our findings:
1. Agencies and brands in desperate need of education in mobile as consumers
outpace them
2. Capturing and sharing mobile consumer behavioral data is key
3. Mobile handsets discourage agency creative experimentation
4. Mobile ecosystem is overwhelming for them
commitment to mobile marketing in true co-creation style. This best-in-class platform is
architected by MobileBehavior with agency considerations foundational.
The open-architected solution will ensure that each agency retains unique distinction,
while harnessing the power of innovation in
center of high-volume agencies, empowering media planners, account execs, and
creative directors to develop and activate mobile marketing campaigns that merge
seamlessly with all other agency service activities on behalf of brand clients.
AT&T Ad Solution Integration
tools for client campaigns. It will be critical that MobileBehavior develops or co-develops
ad options from AT&T that are unique and optimized for each individual agency to
l goals, plans,
programs, etc maximizing purchase probability.
Any/all AT&T current ad solutions inventory MEdia Net portal inventory, mobile ad
network options, Yellowpages.com cross-media bundles, etc will be considered and
evaluated by
client base, etc.
CONFIDENTIAL
12. GO FORWARD APPROACH & PHASES
Phase 1
Evaluation of Current AT&T Strategy
MobileBehavior routinely evaluates on and off-carrier portal mobile advertising and
media opportunities for its clients and Omnicom agencies globally. We have found
success with a process that begins with a thorough audit of the partner strategy and
composition of the most recent offering.
Your strategic vision will be central to our deep-dive into the entire AT&T on and
off portal suite of ad solutions and services.
CONFIDENTIAL
13. Unique considerations will be made for local mobile ad products, namely those
available under the Yellowpages.com umbrella.
Phase 2
Macro Match Findings with Omnicom Agency Criteria Standards
Categories of frequent agency and brand interest based on past partner priorities and
campaign performance are vast and disparate. Criteria are often specific to each
individual client, but patterns of interest have been monitored by MobileBehavior and
these learnings will be core to this match exercise.Current pricing models for mobile ad
products (below) will be considered.
Targeting
Lifecycle targeting Search retargeting
Retargeting Mindset Media buys
Geo-demographic targeting Content channels
Behavioral targeting Geographic targeting
Demographic targeting Daypart targeting
Technographic Keyword/search
Branded sites Roadblocking
Custom
Banner/Ad Unit Portal Inventory (MEdia Net)
Rich media, in-roll video, streaming video, and Flash-based creative.
Mobile ad buys made available to Omnicom agencies would likely include, but are not
limited to the following web-based models:
CPM (Cost per Thousand Impressions): Buying based on impressions delivered
CPC (Cost per Click): Buying based on the number of viewers who click on the ad
CPA (Cost per Action): Buying based on some other action by the consumer beyond
the click
CONFIDENTIAL
14. Phase 3
Apply Agency Considerations to Current AT&T Ad Products
Determine Probabilities for Use
Agency Processes and Considerations
Advertising agencies and Omnicom media services companies each have protected
processes they have developed in reaction to open innovation and brand/client interests.
Solutions developed by these firms and made available to clients today and in the future
require MobileBehavior to make considerations for these rich variables that vary by
audience profile, product/service advertised, and much more.
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CONFIDENTIAL
15. Phase 4
Modify, Re-purpose, Re-format, Create, Edit Current AT&T Ad Products &
Optimize for Agency Consideration with MB Mobile Platform
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CONFIDENTIAL
16. Phase 5
Individual and Joint Competency Evaluation
As previously stated, MobileBehavior recognizes the need to recognize the strengths
and position of AT&T and the agency/brand within the mobile marketing value chain.
We have kept this in mind while developing an activities map for this cooperative.
Roles and responsibilities vital to enabling this cooperative can be established with
activity grouping of a typical joint mobile advertising network. We have defined those
unique areas of activity below.
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Campaign Management
The campaign management phase includes the activities of campaign planning and
media selling. Advertising campaign planning is core to the expertise of advertising and
creative agencies within Omnicom, but in the very specific space of this cooperative,
AT&T can provide valuable input when developing possibilities of campaigns designing
them in cooperation with MobileBehavior and our agency partners.
Media selling is not linked to a core competence of AT&T nor is it viewed as a credible or
meaningful option for agencies and brands. We propose that MobileBehavior create,
develop, buy and sell AT&T ad solutions and services as a trusted outsourced partner
with a powerful and credible network necessary to meet the evolving requirements of
agencies and marketers.
Vodafone has chosen to successfully outsource to key partners in Europe who are
experts in their field. They have partnered with Yahoo in UK and the publishing group
Gruner + Jahr in Germany who sell advertising space on the Vodafone live! Portal.
CONFIDENTIAL
17. Content Creation
Content creation typically includes concept, creative, promotional campaigns related to
brand media buys, brand assets, and more. We propose MobileBehavior playing lead
role in developing and securing adapted and made for mobile content for agencies and
brands.
We see AT&T contributing with mobile-specific knowledge in the initial phase of defining
ad formats. MobileBehavior and its agency partners will proactively develop platforms
and marketplaces to ensure creative directors, planners, et al experiment and use the
mobile channel/touch-point properly and in ways that showcase their unique talent.
Permission Management
The tasks of permission management include opt-in/opt-out list creation and database
management. We recommend AT&T actively begin thinking about advertising from the
brand/agency perspective and work with MobileBehavior to make APIs available in key
enabling categories for campaign oprimization and measurement.
Sending
The final phase of sending refers to message brokering, media channel operations, and
finally carrier operations. Here, AT&T and MobileBehavior will work in tandem to ensure
the effective use of AT&T underlying network infrastructure. Furthermore, also the media
channel must be shaped to form a mobile portal where marketplaces, app stores,
messaging products, and more are available for use by agencies in the ways they
require as defined on an ongoing basis by MobileBehavior.
This can also potentially be a future platform/hub for cross-media consideration,
auctioning, purchasing, selling, ad placing, and more among agencies and other
advertisers.
It is our view that as many advertising formats as possible include contextual relevance
which are attractive to
various audience profiles and target segments. We also propose developing multiple
interaction formats and dialogue cues to ensure agencies can offer brands the
opportunity to engage with consumers. This will create the best possible opportunity to
create desired consumer behavior.
MOBILE MESSAGING SOLUTIONS AND CRM
Mobile messaging is experiencing a significant upward trend in consumption among
consumers due to the pervasive socialization happening on mobile handsets
everywhere, in multiple consumer segments.
Mobile messaging, SMS/MMS
marketing, short code provisioning
and leasing, keyword campaigns,
mobile newsletters, loyalty
programming, couponing, and
other CRM-related applications will
be central to our cooperative
agency offering.
We propose leveraging our strong
positions in the mobile advertising
value chain to ensure cost
efficiencies and agency/brand use
standards and variations.
CONFIDENTIAL
18. CROSS-MEDIA INTEGRATION & MOBILE MARKETPLACE
As previously mentioned, the cooperative platform and business model (below) are both
designed to ensure active use and participation among agencies within Omnicom, and
also our partners and potentially consumers as we evolve toward increasingly open
environments and off-portal marketplaces.
Vodafone App Store
.
The agency mobile platform is designed to create a product from a service, essentially,
to ensure scale and a point of entry to new market space for the cooperative partners
today and our partners and customers of tomorrow.
Local and proximity-based mobile solutions and services will undoubtedly play an
increasingly relevant role in agency activity as they service clients with demands that
match the location-based needs of their customers. Small business owners, too, are
actively looking for ways to generate new and repeat foot traffic and a means to reach
increasingly mobile consumers, creating a new touch-point and opportunity to efficiently
develop outreach, retention, couponing, and other simple and effective mobile marketing
programs. As these small business owners establish their own mobile sites,
applications, and other forms of mobile presence they will require solutions and
services that generate traffic.
CONFIDENTIAL
19. The agency tool is designed for them as well, enabled for versioning and flexible use by
in-market local mobile product
, from German.
Also below,
would be available from AT&T Yellowpages.com field sales reps.
Vodafone Local Mobile Solutions
CONFIDENTIAL
21. MOBILE INVENTORY AUDIT
The rate card for various German publishers is presents the most basic opportunities
offered to advertisers. These are largely made up of opt-ins for newsletters that offer
consumer age and interest segmentation to advertisers, and carrier portal display
inventory sold only on a CPM basis.
The AT&T MobileBehavior cooperative would give advertisers an expanded range of
advertiser integration with AT&T MEdia Net following a thorough audit and agency
match/needs assessment.
CONFIDENTIAL
23. OTHER NOTABLE NETWORK INNOVATOR
Vodafone MediaSolutions!
Mobile marketing and advertising is seen by Vodafone as an important adjacent
business field with high growth potential. Vodafone MediaSolutions! was established in
May 2007 with the objective of bundling the various mobile, online and offline marketing
activities of Vodafone Germany.
Vodafone MediaSolutions! has a close cooperation with the publishing group Gruner +
Jahr who markets and sells the advertising space on the Vodafone live! mobile portal as
part of their cross media mix offer.
Vodafone MediaSolutions! also serves specialist consultant and leads selected
discussions with creative agencies and customers to create appropriate advertising
formats and campaigns.
Customers include Opel, Coca-Cola, Disney and Mercedes. The mobile portal Vodafone
live! is with 3,8 million users and 490 million page views per month, the most popular
mobile portal in Germany.
The portal provides Vodafone customers information, entertainment and services (news,
sports and music in text, picture, audio and video format). It provides a platform for
marketers to reach a target audience of 14-39 years old with an above average level of
education as well as high income. The advertising formats available on the Vodafone
live! portal include:
Mobile PromotionLink.
Integrated into the portal top themes, the text and/or picture link promotes the marketer
Mobile ContentAd.
Integrated into a selected, contextually relevant section of the homepage of the live!
portal, the large content advertisement format demands the attention of the user, and
offers a possibility to link with a microsite. Further possibility exists for integration as a
sponsor ad to a specific editorial material, or into the biweekly live!
newsletter.
Mobile MicroSites.
Customised brand page created by Vodafone for the marketer using e.g. product
information, pictures, votings, blogs, shops, music and wallpaper downloads, games,
vendor search, information requests per mail and other customised possibilities for
interactive communication.
InGame Advertising.
Integration of promotional links or advertisements into the games section during start-up,
between levels and during exit.
Mobile Radio/TV Ads.
CONFIDENTIAL
24. Using the audio and video streaming possibilities of the medium to bring customized
content and messages to the customers.
Mobile Couponing.
Possibility to offer customers discounts or other incentives to visit the shop to tryout and
buy products.
FUTURE FORECASTS & BUSINESS MODEL
Migration to off carrier portal environments similar to the trends in consumer media and
content consumption that occurred on the wired broadband web years ago, requires
immediate mobilization for this AT&T and MobileBehavior mobile advertising
cooperative.
CONFIDENTIAL
25. Bain & Company Recommendations to Telcos, World Economic Forum 2009
To encourage faster adoption of mobile media in the short term, telecommunication companies,
information technology (IT) and content providers should:
1. Pick their spots Where do they add the most value? Which activities are too
important now or in the future to relinquish to others? And, depending on what a
2. Actively work with partners to design a scalable, integrated model that will
encourage mass-market adoption of services. While most companies in the mobile
industry are wary of
market, they must work toward a more standardized environment. This approach reduces
development costs enough for application providers to reach large-scale audiences.
3. Develop a sophisticated understanding of their customer base, using data to
segment offerings and target marketing campaigns.
4. Experiment more aggressively with new business and revenue-sharing models in
order to crack the problem of how to generate profits from mobile media usage.
MobileBehavior recommends pursuing a business model that rewards both AT&T and
MobileBehavior for creating value through innovation:
Mobile Advertising: on-portal MEdia Net display inventory (banners) and text links
priced at on CPM basis with offer, creative, geo, product, etc tests that evolve the
cooperative pricing and value model as brands and agencies increase frequency of
participation and become more committed.
! MobileBehavior proposes a 15% agency fee with CPM invoicing and agency
service fee added to media cost.
! 50% rev share on MEdia Net media sales (placed in context by consumer
interest category and content publishing paid by AT&T as it is today)
facilitated by MobileBehavior as a direct result of Omnicom agency use of the
MB mobile agency platform.
! Custom creative and other agency services developed by Omnicom agencies
and MobileBehavior shall be priced and invoiced by the respective agency.
Agency will retain 100% of this billing.
! Ad revenue derived from MobileBehavior and other Omnicom agency
prospecting and servicing including: bundling, content brokering, user
generated content programs, category buy-outs by brands/sponsors, affinity
CONFIDENTIAL
26. content providers cross-media category (eg; indoorDIRECT local DMA
bundling), et al Revenue share: Agency 65%, AT&T 35%
Mobile Content
recommendations based on trend forecasting and behavioral studies shall be shared
equally sans costs to secure content, dev and other labor specific to this
recommendation, etc. AT&T shall collect and retain 100% of all content sales related
to AT&T subscriber/consumer plans and billing.
Mobile Site/Landing Page: TBD based on ATT development activity and solution set.
MobileBehavior may choose to develop and use an independent agency platform
with mobile site specs
SMS/MMS/CRM: Agencies will leverage a MobileBehavior Tier 1 aggregator cross-
carrier messaging (SMS/MMS) white-label product customized on spec for each
agencies to manage CRM products, text campaigns, keyword/short code leasing and
provisioning, etc. MobileBehavior and its partner agencies will collect and retain all
revenue derived from sales of SMS/MMS product and any premium content sold via
this service (B2B, B2C)
Our discovery process will include a thorough evaluation of all AT&T ad products
including MEdia Net, YP.com, listings, web site creation, enhanced listings, mobile ad
network off-portal display inventory, etc.
LOCAL MOBILE DIGITAL TV NETWORK PRODUCT: indoorDIRECT/Bite Network
indoorDIRECT inventory current DOOH inventory will be evaluated in fashion similar to
that of MEdia Net. Consumer affinity interest categories, geo targeting, custom studio
integration w/talent, and SMS/MMS services provided to ATTi/Yellowpages.com
advertisers and prospects, etc will be bundled by MobileBehavior for purposes of
Yellowpages.com listings products, mobile sites, mobile messaging services, Yellow
Pages print/space media, web sites and enhanced listings, etc will include
indoorDIRECT Digital Restaurant Television Network bundles to offer small businesses
exposure in mobile environments and places driving traffic to retail locations, as well
as their mobile sites while consumers dine at QSR (quick service restaurant) locations
with digital TV powered by indoorDIRECT. AT&T Ad Solutions/YP.com and
indoorDIRECT revenue splits will be calculated by value contribution to each renewal
and acquisition transaction.
CONFIDENTIAL
27. Further consideration will be given to business and financial models post-discovery
phase as we further our collaborative efforts. Possibilities under consideration for the
mobile agency platform include:
License the platform: get to market fast. MB Agency Mobile Platform has a range of
ready-to-go templates that can help guide the development of campaigns, set up
branded mobile internet sites, build and grow mobile communities or mount large
scale competitions, etc. Features of the platform that enable user creation
independently:
Click to action templates
ad-funded content
After the click templates
-pack promotions
-commerce
Software-as-a-Service (SaaS): platform integration by MobileBehavior and AT&T,
with the platform integrated with client or partner agency CRM, billing and service
delivery systems. MobileBehavior and/or AT&T hosts the platform and provides it as
a managed service
Revenue share: this will likely be the solution selected by the majority of agencies as
they embrace mobile marketing for the first time with an embedded mobile ad
product and recommendation engine. In exchange for an initial set up fee and a
share in the revenue success of the campaigns each partner agency or client
generates, MobileBehavior will activate them for you.
Consumer Behavioral Index/Consumer Audience Profile Development and
Valuations, Trend Reporting, etc: priced by unique user ID buckets/volume discounts
applied
SMS/MMS/CRM: messaging tools, keyword/short code campaigns, loyalty
programming, retention efforts, win-back, couponing, information services/triggered
and timed alerts, etc agency fee applied and shared 70%/15%/15% among agency
providing service and client, MobileBehavior, Tier 1 aggregator
CONFIDENTIAL