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5principles

Rick Joubert
Rick Joubert

Vodacom provides five principles for mobile advertising: 1. Focus investments on new mobile advertising business, not new products. Get top management support and staff with media/advertising experts. 2. Take direct responsibility for revenue generation. Ensure the production ecosystem is in place and educate brand managers directly. 3. Align incentives in the value chain to be similar to traditional media. Measure ROI regularly working with agencies. 4. Encourage campaigns that create value for end users with incentives like free content and services. 5. Create ubiquitous mobile media by looking for advertising opportunities across broader mobile uses like voice and text. Take a media business mindset.

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Vodacom Mobile Advertising Some advice from an early mover CMO Forum, Mobile World Congress, Barcelona 11 February 2008 Rick Joubert, Executive Head, Vodacom www.on-the-line.co.za
Principle 1 Focus & Invest New business NOT new product Get top management buy-in/support Get insider to lead it initially but staff with media/advertising people Leverage Mobile Advertising news story and invest heavily in MA launch
Principle 2 Take DIRECT responsibility for revenue Sales Houses focused on Mobile ONLY Ensure production ecosystem in place (mobi sites, content development) remove barriers to entry Educate brand managers directly in early stages // do not assume advertising agencies will do so Target leader brands as early as possible
Principle 3 Align value chain incentives to traditional media incentives Ensure Advertising & Media Agencies are not dis-intermediated i.e. Mobile Media margin % should be no worse than traditional media Measure ROI against expectations as often as possible (working with agencies) Integrate into existing media/advertising industry value chain
Principle 4 Create end-user value Encourage inclusion of strong end-user value creation in campaigns as often as possible Customer value built in to advertising channel Free Please Call Me messages Free ad sponsored content Free on-net web SMS Free on-portal browsing +AdMe: Incentives for opt-in (push) The GRID (free mobile LBS blogging / IM service)
Principle 5 Create ubiquitous mobile media Mobile Internet and rich media enable only a fraction of eye ball aggregation (at the moment) Look for opportunities to integrate advertising in broader mobile use areas (Text & voice) Media business mindset, NOT Telco product extension
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5principles

  • 1. Vodacom Mobile Advertising Some advice from an early mover CMO Forum, Mobile World Congress, Barcelona 11 February 2008 Rick Joubert, Executive Head, Vodacom www.on-the-line.co.za
  • 2. Principle 1 Focus & Invest New business NOT new product Get top management buy-in/support Get insider to lead it initially but staff with media/advertising people Leverage Mobile Advertising news story and invest heavily in MA launch
  • 3. Principle 2 Take DIRECT responsibility for revenue Sales Houses focused on Mobile ONLY Ensure production ecosystem in place (mobi sites, content development) remove barriers to entry Educate brand managers directly in early stages // do not assume advertising agencies will do so Target leader brands as early as possible
  • 4. Principle 3 Align value chain incentives to traditional media incentives Ensure Advertising & Media Agencies are not dis-intermediated i.e. Mobile Media margin % should be no worse than traditional media Measure ROI against expectations as often as possible (working with agencies) Integrate into existing media/advertising industry value chain
  • 5. Principle 4 Create end-user value Encourage inclusion of strong end-user value creation in campaigns as often as possible Customer value built in to advertising channel Free Please Call Me messages Free ad sponsored content Free on-net web SMS Free on-portal browsing +AdMe: Incentives for opt-in (push) The GRID (free mobile LBS blogging / IM service)
  • 6. Principle 5 Create ubiquitous mobile media Mobile Internet and rich media enable only a fraction of eye ball aggregation (at the moment) Look for opportunities to integrate advertising in broader mobile use areas (Text & voice) Media business mindset, NOT Telco product extension