WIRELESS/MOBILE MARKETING MODELS

Course Faculty: Mrs Yasmin Malik

Venue: IBA City Campus, Karachi

Course Start Date: Spring 2012 (Feb 1)

MIS553: Mobile Marketing Strategies

The Rise of Data Services

In the mobile marketing Value Chain (more on this later on in the course), the MNOs are often seen as both the enablers and the drivers (in some markets) of mobile marketing

However, MNOs are exhibiting a shift from the “tightly integrated, closed messaging systems” supported via SMS that were established in the past

External factors such as the impact of smartphones, app stores (Apple, Ovi) and social networks have accelerated mobile data usage and are impacting MNO revenues

This has resulted in subscribers accessing mobile Internet applications that are outside the control of the MNO

In short: market dynamics have changed and heralded the age of data-dominated mobile eco-systems which involve mobile portals/sites, mobile applications and mobile banner ads etc.

As a result, mobile marketing strategies have had to shift to incorporate this mobile Internet/data driven “Mobile Advertisement Model”

MNOs are trying to retain their market position by getting customers to access the mobile Internet via their own designated mobile portals

Examples of Mobile Portals

Vodafone Live! Portal Ufone Portal (old)O2 WAP Portal

Note further: one way to increase revenue is to place banner ads on their portalsfor click-through by subscribers

Note: in order to earn revenue from subscribers, the MNO wants them to access the mobile Internetvia its own mobile portal – the MNO will often lock the settings for Internet access via its portal

into the phone used for access making the portal a virtual “gateway” to the Internet

THE “OPERATOR” MODEL

Within this model, the Operator controls billing, transport, manages the service, ensuresreliability and provides security

GGSN: GPRS node/gateway which gives access to the mobile Internet via the Operator’s networkUsually the Operator Mobile Portal or “WAP Deck”

SMSC: Short Message Service Centre whichroutesand regulatesall the SMS traffic on the Operator’s network

Source: Informa Telecoms & Media, www.informa.com

Source: Informa Telecoms & Media, www.informa.com

THE “ADVERTISEMENT DRIVEN” MODELIn this model, the MNO combats the third-party “free” modelby offering reduced rates to subscribers, incentivizing themto continue to use e.g. MNO-based messaging services

In return, subscribers agree to receive advertising from 3rd parties. The MNO receives revenues from the third parties to offset the drop in subscriber revenues

This model requires the MNO to focus its efforts on marketing programs and campaigns for subscribers or outsource this portion of the business to a third-party, marketingspecialist

With access to subscriber details, the operator is in a good position to facilitate subscriber profiling, which can lead to well-targeted, successful mobile marketing campaigns

The Importance of Mobile Portals and associated Advertising

The Mobile Ad driven model incorporates SMS but also places greater emphasis on mobile Internet and hence mobile portals

It shows how mobile ads can be placed on the Operator’s own mobile portal which is known as “On-deck” mobile advertising

The same “Ad Gateway” can be used to place mobile ads “Off-deck” i.e. on any other mobile portal that is not controlled by the Operator

Many of the documented case studies in mobile marketing are based on advertising that is done in the Category of “Mobile Portals”

BMW, Lufhansa, Virgin case studies are all examples of highly successful Off-deck advertising