WIRELESS/MOBILE

MARKETING MODELS
Course Faculty: Mrs Yasmin Malik

Venue: IBA City Campus, Karachi

Course Start Date: Spring 2011 (Feb 14)

MIS553: Mobile Marketing Strategies (Week 5)

The Rise of Data Services

 In the mobile marketing Value Chain, 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 O2 WAP Portal Ufone Portal (old)

Note: in order to earn revenue from subscribers, the MNO wants them to access the mobile Internet
via 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

Note further: one way to increase revenue is to place banner ads on their portals
for click-through by subscribers
THE “OPERATOR” MODEL
Within this model, the Operator
controls billing, transport,
manages the service, ensures
reliability and provides security

GGSN: GPRS node/gateway which gives access to the

mobile Internet via the Operator’s network
Usually the Operator Mobile Portal or “WAP Deck”

SMSC: Short
Message Service
Centre which
routes
and regulates
all the SMS traffic
on the Operator’s
network
Source: Informa Telecoms & Media, www.informa.com
HE “ADVERTISEMENT DRIVEN” MODEL
In this model, the MNO combats the third-party “free” model
by offering reduced rates to subscribers, incentivizing them
to continue to use e.g. MNO-based messaging services

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-
With access to subscriber party, marketing
details, the operator is in specialist In return, subscribers agree to
a good position to receive advertising from 3rd
facilitate subscriber parties. The MNO receives
profiling, which can lead revenues from the third
to well-targeted, parties to offset the drop in
successful mobile subscriber revenues
marketing campaigns

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

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”
 In order to appreciate this concept it is necessary to look at mobile portals in some
detail:
 What they are
 How they are set up
 How they can incorporate mobile ads (MMS/banner/txt) and applications