Understanding the Mobile Advertising

Opportunity for Operators

Turn your mobile subscribers into audiences by connecting them with

the brands they love.

Mobile advertising and marketing realities

Advertisers and marketers are quick to pick up on new mobile usage trends and they recognize that delivering messages over mobile devices is an exciting new opportunity. But these messages have to be delivered properly to be effective. Mobile devices are highly personal and consumers aren’t interested in receiving advertising that doesn’t fit their lifestyle or that is about products they aren’t interested in. They do want to receive targeted advertising about the brands they love and the products and services that fit their personal preferences and taste — as long as their privacy is protected.

The brands and media agencies know that if they can focus

their campaigns according to consumers’ preferences, recipients will be more responsive to their message. Furthermore, if they can

engage consumers in a dialogue about the brand, they’ll know

their message is getting through.

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An opportunity is born …For mobile operators, most of the advertising that has occurred so far is delivered over the top (OTT) of your networks. You’re providing and maintaining the roadway for advertisers to communicate with your subscribers, but you’re not getting a great return on that investment. It doesn’t have to be that way. A mobile adver-tising solution can be built on a business model that enables you to participate in the mobile marketing and advertising value chain.

You’re going to be competing head-to-head with application and content providers that already have both mindshare with your customers and strong media relationships. To attract advertising budgets your way, you’ll need to offer something different and better, with a measurable ROI so advertisers can easily see the added value.

To make your advertising inventory stand out, you need to offer media with better reach, interactivity and response. Advertisers want to distribute their adver-tising message to a wide audience — beyond local boundaries to national and international audiences. You can provide that kind of reach by working with a partner to aggregate your advertising inventory (ad space) with other mobile operators’ inventories. Ideally, the partner will also help to sell your advertising inventory.

Current mobile advertising initiatives — primarily WAP and mobile banners — provide low levels of engagement. This translates into a lack of response to the ad campaign and lower CPM valuations. To achieve a higher response rate and improve the CPM, you need a mobile advertising solution that delivers a more compelling, interactive consumer expe-rience. Interactivity also means that the effect of the ad campaign is measurable.

As a mobile operator, you have a unique advantage over other media owners: your direct relationship with your subscribers. To protect that relationship, you’ll want to offer advertising that is transparent, with an explicit opt-in procedure. The ideal mobile advertising solution will enable you to deliver advertising that’s permission-based and incor-porates personal preferences. This approach will ensure that the mobile ads drive a very high response rate.

By delivering messages that your subscribers want to receive, you’ll be giving them another reason to stay with you as their provider. An effective mobile advertising service will also help to differentiate you from competitors and draw new subscribers to you.

Leverage your relationship with subscribers

The Alcatel-Lucent Optism Mobile Advertising Solution costs you nothing to implement but can deliver big rewards. To get started, we plug our technology into yours. This enables us to aggregate your advertising inventory with other providers, creating the kind

of reach advertisers need for effective campaigns. Once that’s done, you’re part of something much bigger — a whole new business opportunity focused on mobile advertising and marketing that is ready, right now, for mass market deployment.

Alcatel-Lucent OptismTM Mobile Advertising Solution

Creating an effective mobile advertising marketplace

The Alcatel-Lucent Optism Mobile Advertising Solution was designed and commercialized with the advertising industry to make mobile media selling simpler and to encourage brands to adopt mobile advertising and marketing. In the last two years, Alcatel-Lucent has made significant investments in the advertising arena, building relationships and developing innovative strategies for tapping into mobile advertising and marketing opportunities.

As a new business model, the Optism Mobile Advertising Solution goes beyond just technical capabilities. We cover everything from go-to-market support for operators and media sales and campaign support towards advertisers. The solution provides mobile operators with an innovative way to grow revenues by offering value-added services and improving subscriber experiences. And it gives brands the ability to connect with subscribers through relevant interactions that fit their lifestyles. Based on subscriber’s stated permission and preferences, brand communications are delivered via interactive SMS and MMS messaging.

Introducing the new Alcatel-Lucent media arm

As part of our investment in mobile advertising, Alcatel-Lucent has created a media facing arm. This group brings together a wealth of experienced advertising and mobile marketing professionals and is responsible for building commercial relationships with global brands and agencies to facilitate the sale of mobile operators’ media inventory. At the heart of the solution is the advertising platform, fully hosted and managed by Alcatel-Lucent. The platform connects directly into mobile networks offering a single entry point for advertisers to multiple mobile operators. It provides advertisers with a simple method of booking campaigns and ensures consistent reporting.

Because we manage the rela-tionship with media agencies and operate the advertising platform, it’s easier for you to participate. We leverage your network assets and improve their value both through aggregation and by enabling brands to enter into meaningful dialogues with your subscribers. Most importantly, we do this while ensuring that subscribers’ privacy is always safeguarded and they retain control of their information and preferences. Our research has shown that consumers, particularly the valuable youth segment, are ready to embrace this type of adver-tising, if it is done right.

Enabling connections

The Alcatel-Lucent Optism Mobile Advertising Solution solves the relationship gaps that exist between mobile operators and the media world making it simpler for all members of the value chain to collaborate. Through our solution, a global ecosystem is

established that connects you with media agencies, advertisers and marketers. This in turn enables advertisers and marketers to connect your subscribers with the brands that interest them.

- Go to Market Support

- Opt-in and Profiling

- End-to-end Technology

- Cross-Mobile Operator Aggregation

Alcatel-Lucent Optism™ Mobile Advertising Solution

- Media Industry Relationships

- Media Sales and Booking Tools

Brands

Engagement, Research and Sales

Agencies

ROI, Reach and Ease of Booking

Media Owner(Operator)

New Revenue Stream and Service Innovation

Consumers

Value and Improved Experiences

Maximizing the value of your media inventory

Today, you’re selling bulk SMS for advertising and marketing purposes, but this approach does not realize the highest possible return for you. The SMS is sold at the lowest acceptable price, to mobile marketing agencies that are creating campaigns on behalf of brands. To them, SMS delivery is simply a cost.

Our approach focuses on improving the value of your media inventory — making SMS the most responsive and targeted, high-reaching media available in the mobile media business. We use a highly responsive, scalable and efficient dialogue media based on SMS/MMS messaging, along with display to enable a relevant conversation between consumers and brands.

To join the service, subscribers must give their permission through an opt-in process, during which they are asked a few simple questions. Their answers to those questions make it possible to ensure the advertising they receive is relevant. Because they have explicitly opted in to the adver-tising service, subscribers are more engaged in the advertising received, which of course increases the value of the advertising to the overall campaign. Dynamic management of subscribers’ preferences ensures they are always in control.

All of these elements increase the value of your inventory to adver-tisers, which in turn ensures you get the best possible ROI.

Media industry endorsement

Premium Membership in the Mobile Marketing Association

Finally, we’re proud to say our solution is already backed by the industry. The Optism Mobile Advertising Solution has been endorsed by GroupM and Mediacom, part of the WPP group, one of the largest media buying agencies in the world, to bring you this opportunity. In fact, media agencies around the globe have endorsed our approach because we’re doing it right. This isn’t just TV creative pushed down the phone. The Alcatel-Lucent Optism Mobile Advertising Solution is specifically designed for today’s advertising environment. It takes advantage of the unique capabilities and relationship you have with subscribers to enable highly scalable, targeted advertising campaigns.

Further proof of Alcatel-Lucent leadership in mobile marketing and advertising is our position as a Premium Member of the Mobile Marketing Association (MMA). The MMA reserves the Premium Member tier to companies with the scale, scope and resources to effect genuine change in the marketplace.

“The most desirable inventory involves user permissions supplemented by explicit preferences and must offer broad scale to truly harness mobile as a

marketing channel. Clients are increasingly asking if they can run campaigns over multiple regions and at scale. Alcatel-Lucent’s operating model and access

to multiple mobile operators is a big step forward towards meeting these requirements.”

David Kyffin Global Chief ROI and Direct Marketing Officer

of Mediacom, part of the WPP group

“We are thrilled to have Alcatel-Lucent join as a Premium Member as the company’s leadership and global strength is beneficial to the entire

ecosystem. They have a unique ability to provide end-to-end communications solutions that can help to drive the mobile marketing industry to bring new

services and capabilities to market.”

Federico Pisani MassamormileInterim CEO of the MMA

Paying the billsWith no up-front investment, the Alcatel-Lucent Optism Mobile Advertising Solution helps you move quickly into the value chain, to participate in growing revenues from mobile advertising and marketing. Now, instead of simply providing the infrastructure over which OTT applications and content ride for free, you will be creating highly responsive and targeted mobile media. Your share in the revenue stream will reflect this valuable contribution to the overall advertising service.

The advertising industry is huge, with an estimated value of $1 trillion United States dollars. While about half of that amount is spent on tradi-tional advertising (including print, radio and television), the market is largely flat. Traditional media simply don’t provide the level of response advertisers are looking for. It’s also becoming increasingly difficult to reach audiences over the usual channels (consider the impact of the PVR on tele-vision advertising!). Most importantly, traditional advertising doesn’t enable brands to measure how many people view an ad. Digital advertising, on the other hand, is a healthy, dynamic market with the potential for an excellent return on investment. It also offers the personalization needed to improve targeting, relevance and responsiveness. With the proliferation of mobile devices, the mass consumer audience is there.

Put very simply, the advertising market is moving from reach and frequency to reach and relevancy/responsiveness. And the latter pays much better.

Alcatel-Lucent — your partner for mobile advertising

Alcatel-Lucent is already a global leader in mobile communications. Now, through our media arm, we have assembled an in-house team of advertising and marketing specialists drawn from media agencies, content providers and brands. This team will work with you to ensure that you are able to participate fully in this dynamic and growing market.

The Alcatel-Lucent Optism Mobile Advertising Solution is a prime example of the Company’s vision for application enablement — a vision that focuses on helping you to leverage the value in your network by enabling new business opportunities. The Optism Mobile Advertising Solution helps you to securely expose your infrastructure assets including mobile data, messaging, billing, mobile payment, video, and location

to advertisers, in order to create new business models and generate additional revenue. The Solution will also give you a new set of tools to create and deliver compelling services and content to your most valuable asset – your subscribers. We then aggregate your inventory with other mobile operators to offer media agencies more compelling inventory and the ability to engage consumers in a dialogue with their favorite brands.

In addition to providing the necessary technological tools, the Alcatel-Lucent Optism Mobile Advertising Solution includes go-to-market support, opt-in and audience management, media sales, and campaign strategies to solve the relationship gaps that exist between you and the media industry.

Learn more about the Alcatel-Lucent Optism Mobile Advertising Solution

Learn more about our media arm