[NMMC] Vodacom’s head of mobile advertising has his say

Investigating the development of mobile as a medium to rival traditional media: the Vodacom Experience

Rick Joubert, Head: Mobile Advertising

Case:

1. Mobile is 7^th mass medium (print, recording, cinema, radio, TV, internet, mobile)
2. Mobile is as big as online, in the advertising spend
3. Mobile is handicapped due to lack of metrics, lack of standardization

Mobile will not obliterate other media, but it is a strong player. Ad agencies must begin to position clients in the medium.

Brands want reach, targeting, frequency and a response. Mobile delivers all four.

Mobile is the ultimate new medium.

There are 3 billion users worldwide, 60 billion mobile minutes per day. 3 billion mobile voice messages.

Mobile has twice the reach of TV, three times the reach of Internet, a built in payment mechanism, and the audience can be correctly identified.

2006 online ad spend $25 billion, mobile content ad spend was the same.

Subscription revenue from Internet in 2006: $140 billion

Subscriptions revenue from mobile in 2006: $770 billion

“The Google SA story is MOBILE” ITWeb, Feb 2008

1 billion mobile monthly impressions, 12 billion annually

Will rise to 50 billion by 2011

RSA Mobile Advertising spend today = at least as large as “online” (R250 million)

(excludes mobile crm, mobile spam)

Vodafone live! dwarfs (for example) news24’s unique users (1.4 million versus 1 million).

Prediction: By 2011, R1.5 billion will be spent on mobile marketing in SA.

37% of cellphone users access Internet using cellphone (July, 2007)

Cellphone operators/networks will install capability on network that can adapt online content to cell phones. (Any non flash websites, rendered perfectly on cell)

Vodacom have taken a lead in developing and growing mobile as an advertising medium. They look forward to MTN stepping up to the game.

Formal launch in October last year, 12-13 heads, over 30 unique brand campaigns, over 250 campaigns. Some inventory sold out 2 months forward.

South Africans are leading the way in this area. No one has taken the plunge the way that Vodacom has.

Some Campaign Results:

Generate 100 000 leads per month for Metropolitan Life

84 000 downloads of Nike branded content

52 000 downloads of Steers branded content

35 000 leads per month for Personal Loan product for large bank

Inventory:

Vodafone live!

The grid (LBS Social network)

+AdMe (permission based “push”)

Please call Me (20 million messages per day)

www.vodacom4me.co.za

Integrated Response Solutions

(Check out Facebook application for The Grid, where you can, for example, invite someone to come to a specific address, and that person will get directions based on their current location, and their destination.)

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