monetising mobile 2: oxygen8
DESCRIPTION
David Ryder discusses the innovation around mobile content in African markets. This presentation was given at ME's Monetising Mobile conference in September 2010.TRANSCRIPT
Oxygen8 CommunicationsDavid Ryder
Group Marketing Director
Established in 2000 Largest privately owned interactive communications company
Turnover more than £50 million p.a. & operating profitably Single integrated global communications infrastructure Supporting voice, mobile and online services Offering integrated digital solutions Covering delivery, billing, applications and content 88 staff located across our global offices A “one stop shop” service for our clients
Company Overview
Worldwide Voice & Mobile Solutions
Global Footprint
London, Birmingham & Litchfield
Dublin
Sydney
JohannesburgDar es Salaam
Barbados
Offices in 7 Countries and connectivity in 38 Countries
Mobile Messaging, Voice & Mass Media Solutions
Denver
Company Overview
2000
2001
2002
2008
2009
2003
2007
2004
2006
2005
Company formed in UK
Company formed in Australia
CMS (Caribbean) acquired
Company formed in Ireland
Company formed in South Africa
JV with Mobiya announced
UK PTO license awarded
Direct connections to UK mobile operators completed
Awarded Sunday Times No1 fastest growing business in UK
Sunday Times No 54 fastest growing business 2005 in UK
Push Mobile JV established in East Africa
Push Mobile Mozambique opened
Irish Telco licence awarded
Direct connections to Irish mobile operators completed
‘Brands Need to Interact with Consumers’
Operataing in Africa Since 2006
Oxygen8 South Africa
‘Brands Need to Interact with Consumers’
The Group’s fastest growing business unit
Directly connected to all 3 mobile operators
Implemented WAP billing directly with Mobile Operators
One of the Biggest WAP markets in the World
Currently within top 5 aggregators
Achieving great success in the brands and agency sector
Brands such as Cadbury’s, Unilever, McDonalds
Ready-made media buying & production service
General observations
SA has over 100% cellphone penetration 4 Mobile networks – Vodacom, MTN, Cell C & Virgin Recent new addition Telkom Mobile 4.5 million internet/SA PC users end of 2009 vs. 44.5
million mobile users (worldwideworx figures) 78% of mobile users in SA don’t have PCs 1 in 6 internet searches in 2009 were from cellphones So where would you send advertising messages?
Challenge & Opportunity
SA mobile/roaming rates amongst highest in the World* Poor historic view/mistrust of mobile (legacy: rip-off comps &
hidden daily subscriptions)
*NB we balance this with airtime voucher awards– attractive even to ‘contract’ users (transferable as a gift to children/domestic helps etc. on pre-paid phones).
Balanced by (upside/opportunity): Influence of iPhone (apps/downloads on phones are cool again) Recession driven need for more cost-effective, measurable
marketing & advertising
[NB we’re also building iPhone apps for clients – SA market only approx. 200,000 iPhones; mostly decision-makers – e.g. adv agency directors].
Most of our current effort ...
Moving to a more ‘mobile media’ stance by creating selective, cost-effective marketing for corporates et al.
Offering mobile as the media which locks together traditional adv & mkting (print, radio, TV) – it’s ‘as well as’, not ‘instead of’. Put it in the audiences’ pocket.
Don’t ask for extra marketing budget, just 10-15% of current advertising budget
Advantages (USP) – interactive (audience can talk back immediately), measurable response, cost-effective & personal – almost everyone opens a mobile message
Captures & builds active databases for future marketing Immediate targets are adv. & media agencies, brands, TV
production companies & corporates
Additionally we have targeted
Information for people on the move ...
Financial groups/advisors – StanLib, IFA Net (e.g. client investment portfolio info)
Hotel & country lodges – (where to stay/click here to book/local interest places, etc.) – Orion Hotel Group
Sports sites (esp. football) – e.g. Supersport.mobi = 1m hits/month
Mobisites are good for attracting 3rd party supportive advertising – sites can pay for themselves
Others in our sights – these are just the starting points
East Africa
Based in Dar es Salaam, Tanzania Formed in 2006 & Push Mozambique in 2007 Joint venture between Oxygen8 & Six Telecoms Company Direct connections in Kenya, Tanzania, and Mozambique Access to subscriber base of over 25 Million people Servicing subscribers in English, Kiswahili and Portuguese Only company in Tanzania to offer premium SMS & Voice 90% penetration in media sector in Tanzania Ready-made formats for premium-rate campaigns In-house production of video, audio & print marketing Consultation on regulatory environment Managed by local personnel with knowledge of local market
Worldwide Voice & Mobile Solutions
-Subscriber base in English speaking Markets-Excluding South Africa
Nigeria 63,000,000 Kenya 18,000,000 Tanzania 17,000,000 Uganda 11,570,000 Ghana 12,000,000 Zimbabwe 2,000,000 Botswana 1,800,000 Zambia 3,500,000 Malawi 1,900,000
The Opportunity - Mobile Penetration
Iphone App- Most phones are still basic but numbers of Smart phones
increasing steadily.
High Revenue Services- This can only run for Niche groups, most
subscribers cannot afford High Premium services which cost over $2 per
transaction
Post paid services: Most of the market is prepaid approximately 90%
across the region
Online Gaming via Mobile phone- Regulatory authorities don’t know how
to regulate. (Opportunity!!)
Adult Services : Conservative laws and Culture –Adult sites are
accessed by mobile phone and on the Internet.
Wap based services: wap penetration remains low except for countries
like South Africa, Kenya, Morocco
Some Issues
Music Content : Mostly offered by Networks so there is an opportunity to create a reputable source of content to network and B2C content brands.
Sport Services : Football services- Premier league and Champions league.
Mega Promotions : Regional Campaigns over two or more countries run concurrently. Opportunity to run campaigns with Big prizes
Mobile Marketing : Marketing Via the Mobile and SMS Based marketing
M-Government- Working with Government and Ngo’s to provide key services over the mobile phone- M-Education-Health-Election Monitoring –Product Authentication
Infrastructure Business: Providing a backbone for Companies in developed markets to run campaigns in emerging African Markets.
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Opportunities
Thank You!For further information contact:
7876033155