Following on from the Mobile Youth Advertising Report, time to look at advertising again. Blyk's an interesting case, especially when it comes to the free business model. Back in Spring 08 we talked about the free MVNO model with some enthusiasm:
As one pundit points out, imitation is the sincerest form of flattery and there are certainly a whole host of companies like Blyk at the moment (such as Phindme)
Blyk face 2 challenges however. One is that SMS is the least trusted form of advertising (marketingwatch) and secondly that replicating the mobile advertising model requires providers to steer clear of internet analogies (see Amdocs analysis) and I'm not entirely convinced Blyk has got either right and there may be a touch of Meatball Sundae in the approach.
Here are opinions straight from the source - this is what youth think of mobile marketing:
There is a lot of $$ going into mobile advertising right now, however it faces competition. Youtube is also favoured by execs because in the cold light of day, they understand it a lot better.
However, despite mobile advertising growth being inevitable according to some analysts such as Velti, Blyk's success won't be about technology but it's ability to build a trusted relationship with young mobile consumers (see this presentation on trust and Vodafone for example to get some idea). Without trust, you can forget the mobile branding bit.
Blyk needs to get away from the easy option - ie what makes common sense to marketers or put another way - putting the old business model in a pair of jeans and hoping it will somehow pay off. Move from simple profiling (because everyone and his dog is piling into that game - see Openwave) to start looking at the 3 key loyalty metrics (as introduced in mobileYouth's presentation to Vodafone brand summit):
That would, however, require a bit of uncommon sense (ie risk taking) and even the trendiest of trailblazers can be conservative once they get set on following a particular business model to its natural conclusion.
Technorati Tags: mobile youth, youth marketing, youth advertising, blyk, advertising mvno
Given the increasingly challenging task of reaching out to young consumers, more brands consider the “free” route (eg ad supported or cross-selling) as a viable alternative to paid downloads.We also featured a podcast interview with Blyk COO last time. Considering the importance of "bill shock" in this credit crunch era (as highlighted by our feature on mobile billing and consumers) as printed in mobile marketing magazine, isn't there a greater need than ever to look at subsidized billing especially for young mobile consumers especially when growing markets such as the US demonstrate a large rise in WAP billing (data Bango)?Recent download data from NIN and Radiohead’s respective attempts at “pay what you like” charging models demonstrates that allowing the consumer to decide what value should be placed on the relationship and content can be both profitable and a shrewd PR move.
As one pundit points out, imitation is the sincerest form of flattery and there are certainly a whole host of companies like Blyk at the moment (such as Phindme)
Blyk face 2 challenges however. One is that SMS is the least trusted form of advertising (marketingwatch) and secondly that replicating the mobile advertising model requires providers to steer clear of internet analogies (see Amdocs analysis) and I'm not entirely convinced Blyk has got either right and there may be a touch of Meatball Sundae in the approach.
Here are opinions straight from the source - this is what youth think of mobile marketing:
There is a lot of $$ going into mobile advertising right now, however it faces competition. Youtube is also favoured by execs because in the cold light of day, they understand it a lot better.
However, despite mobile advertising growth being inevitable according to some analysts such as Velti, Blyk's success won't be about technology but it's ability to build a trusted relationship with young mobile consumers (see this presentation on trust and Vodafone for example to get some idea). Without trust, you can forget the mobile branding bit.
Blyk needs to get away from the easy option - ie what makes common sense to marketers or put another way - putting the old business model in a pair of jeans and hoping it will somehow pay off. Move from simple profiling (because everyone and his dog is piling into that game - see Openwave) to start looking at the 3 key loyalty metrics (as introduced in mobileYouth's presentation to Vodafone brand summit):
That would, however, require a bit of uncommon sense (ie risk taking) and even the trendiest of trailblazers can be conservative once they get set on following a particular business model to its natural conclusion.
Technorati Tags: mobile youth, youth marketing, youth advertising, blyk, advertising mvno
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