Telecom Redux - Paint it Blyk

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Paint it Blyk

Friday, 25 April 2008

Ad-supported youth mobile service picks up speed…

Blyk, the mobile network for 16 to 24 year olds funded by advertising, has signed up over 100,000 members since its launch in the UK at the end of September, 2007. The mobile virtual network operator says that annual member targets have been reached six months ahead of schedule.

Blyk gives its users free texts and minutes every month, apparently equating to an individual saving of over £280 each year – with no contract, no hidden costs or fees – in return for receiving up to six targeted advertising messages per day from brands including Xbox, Adidas, STA Travel, Penguin, Brylcreem, Boots, COI and RSPCA.

The company claims that the ad campaigns that fund the service have generated industry-leading average response rates of 29%.

“Young people have embraced Blyk because it makes phone bills and contracts a thing of the past. We believe that communication should be free, like most other forms of media in the UK . Blyk provides brands and advertisers with an exciting way of reaching the youth market in a very personalised way that works,” comments Blyk UK ceo Shaun Gregory. “Reaching 100,000 members is significant for advertisers because it gives them the opportunity to engage with a mass youth audience in a highly efficient and cost-effective way. In six months we have built up a deep knowledge of our member base which now exceeds many established youth media players and with over 7 million 16 to 24 year old phone owners in the UK there is huge potential for growth.”

Blyk is launching in The Netherlands in the second half of 2008, followed by other undisclosed European markets. The company has recently attracted new investors Goldman Sachs and Industrial and Financial Investments Company (IFIC), who join existing backers that include Sofinnova Partners and a number of private investors.

Also heading down the ad-supported mobile service trail is Orange , operator of the network that hosts Blyk. Last month Orange announced the launch of a new advertisement-supported content trial on its mobile Internet platform, Orange World. The move will see 800,000 of Orange ’s 15.6mn mobile customers given the option to download a variety of music content, from four different genres to their mobile handsets for free, or at a discounted rate, making it the largest trial of its kind in the UK .

The trial will last three months and will allow brands to have their advertising promoted prominently during the content purchase process as customers download music. Orange will make over 500 music tracks available on the service.

“We believe this ad-funded content model will drive adoption and usage of services, and deliver better value content to our customers,” offers Steve Ricketts, head of Third Party Services, Orange UK . “Whilst the trial is initially set for music we are also intending to test this across other content areas, such as games. The mobile is an incredibly personal device and our ad-funded content offer gives advertisers a great opportunity to reach a new audience”.

Meanwhile, over in the USA , according to a report posted on mocoNews.net, Virgin Mobile’s ad-supported MVNO is signing up 1,000 new users per day and is claiming a click-through rate of 5% for some messages.

Ads all right my Mama?
John Williamson