Mobile Groove

In brief: This summary – which includes excerpts from an exclusive interview Marc Overton, Orange VP of Wholesale, Business Development & Partnerships – examines the mobile operator’s mobile advertising strategy; outlines Monkey, the first of a slew of services specifically based on the Blyk model; and wraps up with insights from Alan Moore – an authority on social media marketing and founder of the Engagement Communication Consultancy SMLXL – who points out that content/services subsidized by advertising may have to be more than free to fly.

On the heels of the extremely popular posts on Blyk and MSG’s exclusive interview with Pekka Ala-Pietila, CEO and Co-founder of Blyk, the timing is perfect to deep-dive into Orange UK’s mobile advertising aspirations now that it has formally folded Blyk’s MVNO activities into its wider strategy.

The first service that draws from Blyk’s mobile advertising model – an approach built from the ground up to encourage a dialogue between brands and people that want to her their message by delivering people relevant advertising in tune with their preferences and profiles – is Orange Monkey.

The first Pay As You Go (PAYG) package for the U.K. market offers free music to customers when they top up their mobile. (Although PaidContent suggests the service is not about free music since the tunes you get to listen to (not own) when you top up add up to about 600 minutes each month. This translates into GBP2.14 ($3.53) for customers regularly paying GBP30 ($49.23) in phone credits. But that may just be picking nits since people are getting music at no extra cost.)

More about Monkey: it provides exclusive music, pre-release tracks and other content from Universal Music’s catalogue and relies on British broadcaster Channel 4 to get the word out to the target demographic (16-34 year-olds with mass market phones) via the Channel 4 portfolio including 4Music, billed the most watched music channel in the U.K. A clever twist and nod to the power of multi-channel promotion: The 4Music team will be the editorial voice of the official Monkey website which will carry news, artist features, playlists, exclusive content and competitions. (Check out the Orange site for more details and a video demo of the service.)

The promotion is about building buzz, loyalty and community. So, where does/will Blyk’s mobile advertising approach come in?

The focus on engagement and social networks is baked into the offer. As well as free music, Monkey offers customers free texts, allows for playlists to be shared on social networks, and it “delivers great offers from relevant brands direct to their mobile.”

Prior to the Monkey launch I was pre-briefed by Marc Overton, Orange VP of Wholesale, Business Development & Partnerships, who walked me through the concept and – more importantly – where brands and Blyk fit in the scheme of things.

Regular readers will recall that MSG has partnered with bnetTV to cover industry events such as CTIA and, more recently, Mobile World Congress (MWC). The team did an awesome job, producing 200+ interviews. I focused on analysis, and conducted some 20 interviews with senior executives at companies including abphone, BuzzCity, Movius, Gracenote, Mob4Hire, GyPSii, AdMob, BuddyMob, Gigafone, BubbleMotion, Visto, JumpTap, and SurfKitchen (in no particular order). From JumpTap’s mobile advertising strategy, to Gracenote’s new music search and share features, to SurfKitchen’s widget launch, the video interviews are a valuable knowledge resource.

Today marks the debut of these new segments on the MSG video jukebox (located in the right-hand sidebar). This week’s focus, and feature video in the player, is my interview with Shane Lennon, Senior Vice President, Marketing & Product Development at GyPSii, a must-watch company leading in the race to deliver connected and cool experiences combining information, entertainment, social networks, and location/navigation. In our interview we connect the dots in the recent string of announcements and discuss the significance for brands and advertisers.

Indeed, it’s the raft of announcements over the last weeks — including a partnership to embed GyPSii’s app on a range of LG mobile phones; the tie-up with Nokia and RIM (blackberry) to make the app available on a wide variety of their devices; and a wise decision launch an open API (allowing partners to call the shots on how they integrate GyPSii into their mobile strategy and devices) – that speaks volumes about the company’s new and stronger focus. My take: GyPSii has both the ideas and the impetus to impact our mobile lifestyles.

In addition to the interview and my analysis (below), I also encourage you to read more about GyPSii in my regular column for the bnetTV newsletter, which counts some 10,000 readers. For all my coverage and columns in one place, check out this page on the bnetTV site dedicated to MSG news and views. Thanks again to bnetTV’s Michelle and Tony Sklar for promoting MSG to their growing audience of industry executives and professionals, and to Nicole Scott for bringing it all together in some great brainstorming sessions!

This is the key message in my debut column at RCR Wireless Week as a new addition to the Analyst Angle, a regular feature where leading analysts give their outlook on the hot topics in the wireless industry, from carriers to content to handsets to infrastructure. This month I have chosen to examine the emerging mobile advertising ecosystem, and the advance of mobile advertising platforms that cleverly bring together a mix of companies to reduce channel fragmentation and provide the planning and profiling capabilities that will allow advertisers to harness mobile to deliver the right ad to the right user and reduce wastage generated by blanket campaigns. Gigafone was the first out of the gates, but I am sure there will be more to follow.

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Is mobile advertising broken? Or is it just early days?

The jury is still out on that one. But there is no ignoring the gap between the amount of effort companies invest in mobile advertising campaigns and the actual results they produce.

Granted, some well-executed (translated: targeted) campaigns report an average response rate of 25%, (I’m thinking here of Blyk, the world’s first ad-funded MVNO turned media company that has purposely focused on the 16-24 year-old demographic, one that has expressed a keen interest in hearing what brands such as Coca-Cola and L’Oreal have to say). But these are the exception to the rule.

Do the math and click-through rates (CTRs) on mobile ads are generally between 1-3%. The good news: It’s more than the 0.05% CTRs brands get from online banner campaigns. The bad news: It still represents a 97-99% fail rate. Would you build a business model on a medium that fails to satisfy over 90% of customers? Not likely.

Thanks to Andrea Henninge and Stuart Willett, who heads up MSG Media Solutions, this next Mobile World Congress is shaping up to be the best so far! My schedule is packed with briefings, speaking engagements (such as the Qualcomm’s Plaza Mobile Internet Forum), and a string of video interviews I’m conducting together with MSG’s own in-house film crew. Slots are going fast – so if you would like to learn more please contact Stuart Willett directly – sw@morianamediagroup.com or mobile: +44 7734 315 506.

MSG is also proud to partner with bnetTV to conduct studio interviews with an exciting line-up of companies including AdMob, BuddyMob, BuzzCity,Gigafone, Gracenote, GyPSii, JumpTap, MCN, Mob4Hire, Movius, and VISTO. The finished segments will showcase on MSG (in the customized video player in the right-hand corner), so please check back regularly. You can also look for event coverage – as well as my regular columns – on this special Events page bnetTV created exclusively for MSG.

Which brings me to this week’s column and focus on Motricity, a provider of mobile data solutions and services, ranging from mobile portals and storefronts, to messaging aggregation, to a slew of mobile operators and content providers, including AT&T, Verizon Wireless, T-Mobile, Alltel, TracFone Wireless, PlayPhone, CNN, FOX News, A&E, and Condé Nast. The company had a banner year in 2008. But the real news is mobile marketing, a sector Ryan Wuerch, Motricity Chairman and CEO, tells me is poised for impressive growth.