New (ways of using) Media

Why Belgian media groups should consider buying 4th UMTS licence

Wednesday, April 1st, 2009 | New (ways of using) Media | No Comments

Belgian government has decided, more to refill State’s accounts in these downturn times than to stimulate competition, to propose a fourth licence for setting up and commercially exploiting an additional UMTS network in Belgium. VOO and Telenet seem logically interested as 4th major Telecom actors in Belgium (Telenet mostly in North and VOO in South of the kingdom), but I believe that, UMTS being aimed at diffusing multimedia content through wireless network, other actors have a role to play in this game.
First of all because MNO (Mobile Network Operators) have failed until now stimulating mobile data usage in Belgium. Many people blame the lack of device subzidiation in the country, but I believe it is also the failure of enabler’s roll out (such as simple and standard configuration settings, activation plan and marketing propositions for mobile internet/WAP/wireless services) and expensive data plans by mobile operators, as well as bad quality of their 3G/3G+ network that are the real reasons.
I think that media groups, which are mostly private companies in opposition to mobile operators that mostly emerge from historical telecom operators, would be more efficient at providing an optimal experience to the users and efficient and profitable business models to advertisers. Look at Blyk being managed by a media expert in Belgium: Eric Samson.

Media groups exploiting this 4th UMTS licence makes sense considering what happens in the belgian media landscape. Publishers took shares in TV and/or radio initiatives in order to compensate possible loss due to these former new media and other media groups consider publishing, editing, internet, audiovisual… as diversification tracks. So why not go mobile? Owning a mobile network allows first of all, and that’s why all MNO proposed MVNO deals to media groups, to secure cash from communication usage (SMS, Voice). This activity is a great basis, not only to turn mobile media unto an information channel: allowing users to access your content through their device (via SMS, MMS, WAP/Mobile Internet, applications…) but also to follow the Web 2.0 trend which turns an interactive information platform unto a real social network where content and people merge unto a virtual universe. Peer to peer conversations then include brands, people gather to create communities, share (user generated or not) content and thus stimulate mobile data usage.

Of course, looking much further, connectivity will become a commodity for which most people won’t even pay for anymore. Multiple-play offers, shared networks (eg FON), state autorities initiatives for providing free wireless internet in order to reduce digital divide or similar initiatives from private companies in order to bring more people to Internet and then generate more revenues from advertising (Google’s mobile strategy). All this will allow more people being more often, easier and connected at a more affordable price.

To conclude, it is obvious that traditional press, daily or weekly magazines, will need to get rid, at least partly of the printed support in order to provide more interactions, social gatherings around the brand and a balanced mix between brand-generated and user-generated content. And this will undoubtably go through mobile media. What’s important is the brand, not the device to connect to it.

Tags: advertising, blyk, branded service, Flair Mobile, google, interest-based advertising, media, MMS, mobile, mobile advertising, mobile marketing, Press, radio

Future is a four letter word

Friday, March 20th, 2009 | New (ways of using) Media | No Comments

BLYK or EXQI. Strange words that symbolize innovation in Belgian New Media landscape. What’s interesting in these initiatives is that, unlike most of the pure online players, they’re operated by media people who are looking for new models, based on advertising revenues. Indeed, profitability, and thus possibilities of getting sufficient budget from advertisers, is the start point of these initiatives. Eric Samson (CEO Blyk Belgium) and Gabriel Fehervari (CEO Alfacam) don’t hesitate to take their pilgrim’s staff to spread the word to the market and evangelize advertisers to their new models, forecasting better ROI than traditional models.

The new models set up by these innovative companies take into account new trends initiated on the web such as integrated content, brand conversation or interactive direct marketing. Contact-based models are slowly but surely falling apart due to the flood of information customers are submitted to and technological evolutions that allow capturing customers’ feedback and estimating brands’ value almost instantly. New models using brands in a more clever way, reaching a real win-win-win between the media, the advertiser and the consumer will rise and bring closer a product to its communication.
On top of this brand/product/communication layer, a new service layer will bring more value to the consumer and allow the brand to better differentiate itself on the market. Just like we did for Eurostar.

Just like any innovation, the main Achilles’ heels are the timing to reach objectives and acceptation degree from the market, or rather the targeted niche(s). Blyk starts with 0 members and Exqi plans to struggle in a french-speaking market they don’t really know. And acquisition of customers is a long, difficult and expensive journey.

I invite you reading the long interview of Gabriel Fehervari in this month’s Media Marketing or meeting him at the upcoming BMMA lunch. You can read my debriefing of GRP Media Session around Mobile Marketing where Eric Samson introduced Blyk’s model.

Tags: blyk, branded service, exqi, idtv, media, mobile, mobile advertising, mobile marketing

Now, son, Mobile can be a media !

Saturday, February 14th, 2009 | mobile advertising | 1 Comment

It is always interesting for a Son of a Phone like me to see how other worlds are looking at Mobile. It can be other cultures like Asia or USA, it can be through women eyes like I did while working at Sanoma for Flair Mobile and it is certainly while witnessing people from traditional advertising or media discussing about it. And I learned a lot of things during GRP’s Media Session over Mobile Marketing.

The host list was already very promising. Laurent Deramaix from RMB who represents perfectly the risky and innovative initiative this company took taking care of media part of Pumbby. Alexis Picard from Mediaedge:cia presented figures from their exclusive study on Belgian Market. And last but not least, Blyk Belgium CEO Eric Samson who represents perfectly what the debate was about: a media savvy entering the mobile world.

Let’s start with figures: Alexis highlighted the fact that 26% of 24-65 Belgians are ready to give their mobile phone number for receiving information and/or advertising. Which is roughly 1.6M people! Most expected services are Mobile Banking, Mobile Couponing (but keeping in mind that distribution sector doesn’t accept it yet) and Advertising. Quite encouraging for Blyk, then. What is also interesting to note is that French-speaking part is more willing than the dutch-speaking one. Another key fact is that older age classes are increasingly using SMS and MMS, especially for reaching their family members. Adapting to their grand-children communication channels.

Pumbby and Blyk have quite similarities. On one hand, Pumbby is being sold by a Sales House, at rates and in a customer experience closer to Direct Marketing than webvertising. Subscribers are rewarded with cents (44 cents per message) while Blyk rewards them with phone call minutes and SMS. Pumbby is only starting creating an interaction and bringing added value to consumer (Cliniclown case) while Blyk knows it will be needed from start. Eric Samson considers Blyk as a Media and not as an advertising channel. The recipe is ready and has been successfully tested in UK, now it’s time to roll it out in Europe:

• Exclusive focus on 16-24 target group
• Messages are sent regarding customer preferences, which positions Blyk as database-marketing rather than webvertising like Skynet (for Proximus) and Microsoft (for Mobistar and Base) currently do
• Create engagement towards the “advertising message”: an interaction is expected from the member each time in order to start a conversation between the brand and the member
• Members are only accepted via invitations. It creates a buzz and an happy few feeling for the chosen ones
• It is NOT webvertising on members phone, it is Direct Marketing
• Average response rate of 25%, advertiser retention rate of 60%, 2000 campaigns for 200 advertisers in less than 2 years. All this on UK market.

After the presentation, I had the chance to discuss further with Eric Samson who highlighted the need to, beside working with all media value chain members, talk to advertisers at top level to convince them adding this new media in their plans because it simply just works! Blyk will focus at first on (of course relevant for the 16-24 target group) brands who are looking for innovation. He would be happy gaining very quickly a critical mass of 50.000 to 100.000 (that was exactly our goal at Sanoma too=o) members and expect campaign budgets between 5.000 and 20.000 euros. Also what we experienced at Sanoma!

As a conclusion, it is very interesting that Media World is accepting Mobile as a (7^th Mass, for Laurent from RMB) Media. But they expect to manage it with their rules, inside their value system and considering all traditional media value chain members. That’s why legal constraints (especially around opt-in rules), metrics and socio-demographic data are key for adoption of mobile media in marketing plans. That’s what MNO have not considered until now.
It was funny to hear Laurent telling that Mobile Operators will play a major role in this new media while they officially claim now that they won’t play that game in Belgium and focus on Customer User Experience and Connectivity.

Tags: blyk, media, mobile, mobile advertising, mobile marketing