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On Blyk gives greater control and flexibility to content providers

MOBILE WORLD CONGRESS 2009, Barcelona – Velti, a leading mobile marketing
and content services technology provider, and Blyk have partnered to launch the mobile
operator’s new content portal – On Blyk. The new service is built primarily on messaging
and is now available to all Blyk users in the UK.

Currently most mobile content services are built on the assumption that users will find
what they want by browsing to it. On Blyk is based on the insight that messaging is the
simple dominant mobile behaviour for 16-24 year olds and that messaging can drive the
discovery of relevant content.

The new portal acts as a conduit for Blyk members interested in content from relevant
brands or lifestyle choices; which moves away from the traditional mobile portal
business model.

On Blyk enables content providers to host their content and then align pricing and
promotional activities in line with their objectives. Content spanning areas such as video,
chat, wallpapers, games and ringtones are delivered through On Blyk, from established
providers including Player X, Saffron Digital and Jumbuck, amongst others.
“We liked the proposition On Blyk offered us and joined the service when we realised the
flexibility of the Blyk network. We can control price points, promotional activities and the
discovery of our content, in a more efficient way than other operator offerings,” said
Tony Pearce, Player X CEO.

On Blyk was developed in partnership with Velti, using elements of its Mobile Marketing
Platform (MMP) to deliver highly targeted content to the network’s 16-24 year old
members.

“On Blyk is a great illustration of how Velti’s technology can ensure the relevance of
mobile communications, based on lifestyle or brand choices made by individuals. As Blyk
members use the portal we will be able to use this behavioural insight to deliver the
most compelling, relevant and timely content to them,” said Velti CEO, Alex Moukas. “On
Blyk’s use of our personalisation technology is a key element in determining what
content members will be receptive to and delivering a valued experience.”

You’ll find Blyk speaking at the following events at this year’s Mobile World Congress.

• Mobile World Congress Conference Session: Mobile Advertising - Moving to the Strategic Level
Thursday, 19 February
Time: 12:30 – 13:20
Location: Auditorium 3, level 0, Hall 5 (Fira, Barcelona)
Panel discussion - Crossing the chasm to strategic spend
Moderator: Paran Johar, CMO, Jumptap
Panelists:
Timo Ahopelto, Head Business Strategy and Advertising Solutions, Blyk

Cenk Serdar, Chief VAS Management Officer, Turkcell
Antonio de la Rosa Breva, Consume & Online Marketing, Microsoft
Valerie Itey, Mobile Marketing Director UM Digital
Michael Smith, Deputy Director of COI Interactive

• Event: Ogilvy Telco Conference
Thursday, 19 February
Time: 16:15 – 17:00
Location: AC Barcelona Hotel
Panel discussion - Discussion about the ways in which Advertisers and Telecoms providers can work more closely with one another to grow industry and user value
Host: Alain Heureux, IAB Europe President and CEO
Panelists:
Leif Fågelstedt, Chief Operating Officer, Blyk

Alistair Hill, Comscore M:Metrics
Dusan Hamlin, Inside Mobile
Andrew Grill, Gigafone

Friday, 20 February
Time: 10:20-11:00
Location: AC Barcelona Hotel
Presentation: Understanding Customers Better by Using Mobile Media
Speaker: Leif Fågelstedt, Chief Operating Officer, Blyk
- How customer insight forge stronger relationships with your subscribers/members and attracts
advertisers
- Why mobile interactive messaging enables a dialogue with customers that’s not possible through
other channels
- How done right advertising is not viewed as advertising at all but it becomes a service to the end
user

Friday, 20 February
Time: 12:00-1:00
Location: AC Barcelona Hotel
Panel discussion - A Look To The Future. Discussion with Brands & Agency leaders about the prospect of mobile and how it fits in future plans
Host: Jonathan MacDonald – Senior Consultant, Mobile Marketing, OgilvyOne EAME
Panelists:
Leif Fågelstedt, Chief Operating Officer, Blyk
Stefano Frigerio, Global Communication Planning Director, Unilever
Andrew Godley, OgilvyOne London BT Team

For those interested in seeing the types of brand messages that Blyk members are receiving, you may now view ‘ads in action‘ on the Blyk media site. This is a new site feature that enables ‘over 24s’ to get a feel for the Blyk experience. This is one of the enhancements of the Blyk media site and we hope you enjoy.

And while your visiting the site we encourage you to check out the other enhancements including better site navigation; a new audience insight section; twenty-two case studies representing brands in media & entertainment, FMCG, retail, travel, government & charity, and careers & education.

New media partnering approach with operators is the core of expansion strategy

Helsinki, Finland and London, UK, 18 November 2008 - Blyk, the free mobile network for young people funded by advertising today announced an additional €40 million investment to support its ongoing operations and international expansion.

“The advertising industry and operators have expressed a strong interest in bringing Blyk into new countries and €40 million in additional funding demonstrates the commitment by investors to the Blyk media model.” said Pekka Ala-Pietilä, Blyk’s CEO and Co-founder. “However, we like everyone else are feeling the impact of the world’s financial situation. As a result, in parallel to securing the new investment, we’ve taken decisive steps to cut costs and streamline our organization.”

By launching a new media partnership strategy, alongside organizational realignment, Blyk will gain greater flexibility and speed to capitalize on new growth opportunities and global demand for its media model.

Blyk launched in the UK in September 2007 where it has achieved major successes both in member growth and advertiser usage. In its first year, Blyk achieved a milestone of over 200,000 members and has run over 2000 campaigns with an average response rate of over 25%. With 180 brands on board today, Blyk is well on track to hit its goal of 200 brands using the service by year-end.

“We have a winning formula which makes Blyk attractive globally. The Blyk media model, which is based on highly relevant messaging, has proven to be an extremely effective form of advertising to the youth audience.” said Antti Öhrling, Blyk’s Co-founder and Executive Director. “Blyk’s new partnering strategy will make this powerful model available for operators, brands and young people around the world.”

Blyk, the new mobile network for 16-24 year olds funded by advertising, announces its next wave of European expansion into Germany, Spain and Belgium in 2009, following its announcement to enter the Dutch market earlier this year. Blyk’s rapid expansion is subsequent to its UK success where members embraced the Blyk concept so quickly that its annual member targets of 100,000 were reached six months ahead of schedule, establishing it as a powerful new media for connecting advertisers with young people.

Blyk’s CEO and Co-founder, Pekka Ala-Pietilä said, “There is a great opportunity for Blyk in these markets. Our research shows that young people in Germany, Spain and Belgium are interested in the Blyk proposition because they want to interact with brands they like in exchange for free communication. Our success in the UK, illustrated by robust member adoption, has proven that Blyk is a youth media that works and we hope to replicate this success as we enter new countries. We are also working to attract local talent who share our enthusiasm and can help build Blyk into a significant youth media in other countries.”

To date, Blyk has run over 900 campaigns in the UK for brands such as Coca Cola, STA Travel, Penguin, Buena Vista, L’Oreal and music artists The Kooks and Alphabeat with an average response rate of 29 percent, an extremely high level for any media platform. For example, Penguin’s campaign to promote Nick Hornby’s new novel, saw 7 out of 10 members engage with the publisher in a dialogue.

Blyk will make further announcements related to activities in each of these countries in the near future.

In addition to Blyk’s European expansion plans, the company will continue to strengthen its services in the UK through more members and brands. By the end of the year, Blyk’s aim is to boost the number of brands using Blyk to 200 by the end of 2008. In doing this, Blyk wants to deliver on their driving idea to unite young people and advertisers to free communication.

Multimedia Content:

Co-founder
Pekka Ala-Pietilä

Co-founder
Antti Öhrling

“The Future of Advertising”
APA’s conference at BAFTA

Marko Ahtisaari
Head of Brand & Design talks about all things Blyk

Related Links:

Media Site
Blyk in the Media Mix
Case Studies
^6
Blyk Music
Blyk Team

As I mentioned in my post last week, I also had an opportunity to meet with BnetTV’s Michelle Sklar while at the FT Business of Mobile Conference. The interview has just been posted to the BnetTV website so take a look when you have some time.

media.blyk.co.uk just launched in the UK. It’s a site dedicated to marketers, and their agencies, who are interested in engaging with the 16-24 year old audience through the Blyk channel. It’s also a useful resource for those who simply want to learn more about Blyk.

The site highlights such topics as the benefits of adding Blyk to your media mix, the Blyk product offering, tips for getting the most out of Blyk media, as well as our current case studies. You can also contact the Blyk team to book a campaign.

I had the pleasure of chatting with Iain Graham from Mobile News and our conversation was featured on this week’s Mobile News podcast. We took a deep dive into the Blyk offering, opportunities for advertisers to engage with 16-24 year olds, future targets and how our member to member recruitment has been key to our growth.

In addition to the Blyk feature, Iain also covered some key issues for mobile Internet and search in general which are very interesting. Enjoy! http://www.thefonecast.com/Default.aspx?item=162

Today Blyk is setting the record straight – we have officially reached our 100,000 member target six months in advance of plan. This is a significant milestone for Blyk and demonstrates that both young people and advertisers have embraced the Blyk concept.

Put simply, young people like Blyk because it makes phone bills and contracts a thing of the past and connects them with relevant brands they like. As a result, advertisers and media buyers are able to directly communicate with 16-24 year olds in an interactive and cost-effective way.

In the six months we’ve been up and running, we have accumulated deep knowledge about our member base. Our high response rates (averaging 29 percent) show that this audience wants to engage with brands and issues that resonate with them. No other youth media channel offers this type of dialogue and relevancy for young people.

On a personal note, the last six months at Blyk have been an incredibly rewarding experience – the people, the momentum and energy create a dynamic environment and I am proud to be a part of this special place.

Press release 24 April 2008

You will find Blyk speaking at the following venues.

Monday, February 11th

At 2:30pm, Blyk’s CEO and co-founder, Pekka Ala-Pietilä will be delivering a keynote speech at the Mobile Monday Peer Awards Event and Ceremonies held at the Espacio Movistar.

At 4:30pm, you will find Pekka Ala-Pietilä speaking at the CMO Forum, a GSMA event in partnership with OgilvyOne Worldwide. This event will bring together the leaders of the mobile marketing/advertising industry and it focuses on the challenges of increasing the use of the mobile channel for advertising and marketing purposes. The location is Hall 5 of the Fira de Barcelona.
Topics for the event include:

• The role of mobile marketing in the advertising space
• How to make mobile advertising and marketing grow
• Relationship marketing and the mobile space
• Business models and market opportunities

On Tuesday, February 12th

At 4:15pm, Timo Ahopelto, Head of Strategy and Business Development will be presenting ‘Blyk’ at the Mobile Innovation Marketplace. Blyk has been recognised as one of the ‘most innovative’ in the category of Consumer Application or Service.

Finally, I came across an article on Friday related to ‘What’s hot at Mobile World Congress 2008.’ Nice Blyk mention.

GSMA Mobile Asia Congress 2007 in Macau this week was an interesting event. Despite our initial European focus, most of people knew Blyk: this really is a global industry!

I was presenting Blyk in the mobile advertising session on November 14th, followed by a lively panel discussion on operator strategies, consumer perceptions, industry ecosystems and analogies (–or in my opinion, no real analogies) between effective mobile and Internet advertising models and formats. To sum up, for operators mobile advertising is a way to increase ARPU, while there are no other Blyk-like media and operator propositions than Blyk in the market.

Differences between maturing Europe and emerging Asia are obvious. There are a lot of people in Asia without mobile phones, many mobile services still to be introduced, fast-growing GDP and a large young population keen on technology and entertainment, ready to secure the growth in both operator ARPU and subscriber base for the years come. And if Europe is a scattered map of nationalities, so is Asia, where socioeconomic differences within one country are beyond any European imagination, not to even mention differences between countries themselves.

So, against this, I got asked a lot how does this all fit into what Blyk is doing in Europe? The simple answer goes: a Blyk-like media would do very well in Asia.

Why?

First, the need to lower the phone bill is universal among young people. No matter where you go, young people are students or early in their careers, needing to save money for both necessity and fun. They also are most eager to adopt new ideas. This is exactly what Blyk does by being the first to bring the ad-funded media model into mobile, to give free text and voice every month. And why text and voice, not mobile content? Simply because text and voice are what young people use in mobile today (– in addition to alarm clock as our extensive research covering more than 3,000 16-24 year olds across European countries shows), no matter if you are in Europe, Asia or anywhere in the world.

Second, Blyk links young people up with brands they like. Access to brand messages is social capital among young people. This is, in fact, even more so among the larger audiences of the Asian youth compared to Europe, where brands have been accessible to everyone for decades. Blyk is the invite to the network of messages and information from respected brands that want to hear and listen to what you think.

Third, advertising in traditional media is losing its power exactly like in Europe. Street corners are packed with billboards, and television programs are testing the limits of advertising per hour. A mobile media where themes, frequency, timing and pace of advertising are designed to deliver the best impact for brands and user experience for consumers does play very well in this environment.

The next question against this is, of course, that when will we see Blyk in Asia? Well… this really is a global industry!

Many people have asked us about the animations that are making the rounds on the Internet (like this one: Blyk by Elin Svensson) and about the design of the Blyk brand identity.

When we started designing the Blyk brand we took a deliberately “open code” approach. I’ve written a post on what we’re doing and why. This coincides with the launch of Shift6.net the blog of the new Blyk open brand lab. Fellow bloggers include danah boyd, Inma Martinez and Alison Black.

Contagious Magazine features Blyk in the “Birth of a Brand” section of their last issues. They also covered the Blyk launch briefly in this Contagious News Article.

Some selected articles on the Blyk launch:

Business week: Free Mobile Services Set to Take Off: Blyk’s British launch of its ad-sponsored cell-phone service targeted at teens and young adults has traditional mobile operators nervous

Reuters/CNBC: Ad-Funded Mobile Operator Opens in Britain

MobiAdNews: Designing Blyk - The First Ad-Funded Mobile Operator

Red Herring has selected Blyk as on of the winners of the Red Herring 100 Europe 2007 award.

Pekka Ala-Pietilä will be giving a keynote today, March 26th at the Red Herring Venture Market Europe (VME) event in Cannes.

International Herald Tribune wrote an excellent summary article on what is latest with mobile operators and their mobile advertising plans, featuring Blyk as the pure play ad-funded mobile media for the 16-24 year olds.

The new uses of cellphones present vast opportunities for consumer brand companies, who are finding it difficult to reach customers through media like magazines and television. “[Mobile] advertising absolutely makes sense to extend expensive multimedia services and mobile TV to the mass market,” said Linda Barabee, an analyst at Yankee Group. “I think we will see consumers say, ‘You know what? I’m only going to spend this much money on my mobile phone.’ ”

The Economist interviewed Pekka for an article in today’s print edition: Adland’s test tube: Britain provides a glimpse of the future of advertising.

Excerpt:

THE future, noted William Gibson, a science-fiction writer, is already here—it is just unevenly distributed. To see the future of mobile phones, people look to Japan; to see the impact of broadband internet connections, they look to South Korea. And for a glimpse of the future of advertising, the place to look appears to be Britain. The country is a “test bed” according to Eric Schmidt, chief executive of Google, which has just announced an alliance with British Sky Broadcasting (BSkyB), a British pay-television company…

…In addition, next year a new mobile-phone service for young people, called Blyk, will be launched in Britain before being rolled out across Europe. Users will be able to earn airtime in exchange for receiving advertisements on their handsets.

Blyk’s co-founder, Pekka Ala-Pietila, a former president of Nokia, the world’s biggest handset-maker, says the firm decided to launch in Britain first because it is the second-largest advertising market in the world after America, with sophisticated advertisers who appreciate the market segmentation that new technology makes possible. As a result, he says, Britain “is where we could learn the most”.

Eric Auchard writes in Google CEO sees free mobile phones, funded by ads:

Web search leader Google Inc.’s chief executive, Eric Schmidt, sees a future where mobile phones are free to consumers who accept watching targeted forms of advertising.

Schmidt said on Saturday that as mobile phones become more like handheld computers and consumers spend as much as eight to 10 hours a day talking, texting and using the Web on these devices, advertising becomes a viable form of subsidy.

“Your mobile phone should be free,” Schmidt told Reuters. “It just makes sense that subsidies should increase” as advertising rises on mobile phones.

Schmidt was interviewed following a speech on the theme of business innovation organized by Italian student groups and the Graduate School of Business at Stanford University.

Jack Ewing wrote a piece in BusinessWeek on Blyk’s Radical Mobile Phone Plan.