Can operators dominate permission-based marketing? Nick Pestell – Head of Agency Sales @nickpestell

Agenda

1 What is O2 Media

2 Think Data not mobile

4 2012

3 What ‘s worked so far?

Our strategy

O2 media vision

O2 company

goal

O2 company vision

O2 media mission

Using data for our customers’ benefit, as individuals Our

differentiator

Helping our Customers Connect

to the people and things that are important to them,

in a way that is simpler, easier, better,

whenever, wherever, and however they want

Twice as many fans as our leading rivals

Helping our customers connect

to their personal passions, interests and needs,

in a way that’s simpler, easier, better, for them to

build/grow mutually beneficial relationships with brands

Build the market leading personalised media business

Million O2 customers

Million O2 More

customers

Million O2 More customers

by the end of the year

2 2,821,618 average circulation (July ABCs)

By reaching six million customers O2 More now has greater

reach than many traditional advertising channels

and two issues of The Sun2 .

1 5.1 million viewers (BARB)

Including the first episode of Channel 5’s Big Brother1

Age, gender, region, handset

O2 Audience segment, ACORN

Preferences (O2 More)

Tariff, payment method

Location

Roaming, countries called, mobile web use,

Matching to client customer base

Segmentations: Drivers, Commuters,

Bespoke audience segmentation,

Advanced modelling –

inferred preference/behaviour

Location call data look-up

Built on reach & targeting

Basic targeting

Advanced targeting

Complex targeting

Utilising Data

Drive sales

through

mobile

websites

Driving to

Social Media

O2 More

6.5 million

customers Driving App

Downloads

Research &

Analysis

Awareness,

and reach

alongside

other media

Distribution

platform for

video content

Footfall driver

via offers,

events &

promotions

Agility of mobile

Mobile works effectively with other media channels such as TV , outdoor and

online. Mobile can be used to launch a brand campaign or as a quick and cost

effective way to increase momentum once a campaign has launched.

Wake up &

breakfast

Morning, on the

journey to

school/work

Rest of the

morning, at work

Lunchtime Afternoon Evening Bed time Journey home

Mobile Is Always On

Amplifies other media

What’s worked so far?

Benefits to customers

79% want

to receive

Offers/messages

weekly or

more often

Once per day

9%

4–6 times per week

9%

2–3 times per week

Once per week

35%

Once per fortnight

8%

Once per Month

9%

Less than once per month – 4%

Location based messaging

60% message recall for ‘You Are Here’ location based

messages

90% message recall for fast food brands

46% on average increased likelihood to visit a store

and was over 50% for retailers

25% purchased after receiving You Are Here alert

83% of participants give You Are Here positive rating

You Are Here

Special Offer

Video MMS generates high recall

77%

23%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No

Would you like more of this type of video advertising?

84% recalled the Lynx message

77% who watched the video would like to

receive more of this type of media

Starbucks location based messaging results

14% redeemed the offer

23% said they

would redeem

the offer

Econometric modelling results

• 39,200 customers redeemed the offer

• £110,000 of incremental sales during

the 3 month period

• 93% recall of message.

• 1/3 said increased purchase intent

• 77% positive rating for O2 More

ESPN wanted to communicate to football fans

Solution: O2 iphone customers who have attended a Premiership match identified

through cell sites for each of the premier league football grounds

Building an audience through data

Lynx: A game changing campaign

Innovative use of location based

messaging around Victoria Station to

encourage the target audience to engage

with the experiential outdoor posters

Evolves the role mobile can play within the media mix,

amplifying traditional media channels

82% recall of message

89% associated brand slogan to product

24% purchased the product, 18% intended to

30% engaged either through purchase or via Facebook

High impact on non purchasers with 34% having an increased likelihood to visit a store

and 23% visiting Facebook

Impulse Diaries– Social Media Integration

250k unique engagements

over 3 SMS & MMS O2 More

executions

CTR of 2.9%

And we can make it simple for businesses to participate

– as well as consumers

Today mobile is a costly medium to use ...

– Today it takes advertisers on average 2-4 days to plan & book a

mobile campaign

Operator fragmentation makes this worse

Mobile advertising example

Multiple booking points

Inconsistent formats & pricing models

Different opt-ins & customer policies

No common measurement

Messaging is part of digital, but unique in its own way.

Mobile is the connecting tissue, key to amplifying traditional media

The time to test and learn is now!

‘If you don’t have a mobile strategy, you don’t

have a strategy’

Thank you