Blyk co-founder Antti Öhrling is bullish on messaging as the best format for mobile advertising and says it’s an untapped opportunity for mobile operators.
Messaging currently accounts for about 55% of mobile advertising, with 25% going to apps/website and 20% to search.
Instead of being overshadowed by more sophisticated formats in the future, he believes messaging will continue to dominate because when relevant it creates engagement with the customer and enhances an operator’s service.
Öhrling, a keynote speaker at the TM Forum’s Asia event in Singapore yesterday, said customers say they preferred their services with the ads.
He points to a number of key advantages over other formats.
“It’s a simple, low-tech communications tool – based on a natural behavior that happens on a mobile phone. In addition, the in-box is always on, it’s viral and for advertisers it’s a fantastic platform that verifies that the message has been read.”
Yankee Group’s Declan Lonergan agrees messaging will be an important technology in mobile advertising’s future. In a report last year he said, “It’s well understood, reliable, ubiquitous and highly personal.”
Öhrlingsaid because mobile messaging can be measured and tracked, it’s easy to prove it works for advertisers. Based on 2,600 campaigns done over 18 months, he said the average response rate was 25% -- “that’s ten times more you’d expect on any mobile campaign and 100 times more than a mobile banner.
“For the advertiser it’s by far the most efficient way of reaching its target audience,” Ohrling said.
Blyk, which began as an ad-supported MVNO in 2006, changed its business model to operator partnering last July. Orange UK announced this week it would launch a mobile advertising service using the Blyk platform. Orange had been testing the platform but planned to launch the full services, called Shots, on February 1.
A Blyk spokesman told Daily the firm will soon announce fresh partnerships with Vodafone Netherlands, and an unnamed Asian carrier. Unlike the Orange partnership, the new deals will be branded Blyk and be more consumer facing, he said.
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