I have written a whitepaper reengineering Blyk, the ad-funded MVNO in
My question to you: Do you see chances for such a company in Japan?
First page of the whitepaper:
Reengineering Blyk’s Business Model
How to build a profitable ad-funded M(V)NO and maximise Ad ARPU
Many people in our beloved mobile economy are excited about the new
called Blyk because it is the first ad-funded MVNO (Mobile Virtual
Network Operator) in the
world. Blyk launched in the UK on 24 September, 2007, and is targeted
at 16 to 24 year-old
customers only. Co-founder and CEO of Blyk is Pekka Ala-Pietilä,
former President of
Nokia Corporation (1999-2005) and Nokia Mobile Phones (1992-1998).
strong contacts with the top management of many MNOs (Mobile Network
Operator) will help
Blyk close more beneficial Host MNO deals in 2008 and 2009 as Blyk
plans to go pan-European.
Ad-funded MVNO with high Ad ARPU paid by advertisers
For the MVNO and MNO, the logic behind mobile advertising is simple:
If you cannot raise
ARPU (Average Revenue Per User) charging your customers for new value-
you better tap into the media budgets of advertisers that want to
communicate with your customers.
Thus an ad-funded MVNO is a company that finances a considerable
share of its ARPU with money
from advertisers. As pointed out below, I assume Blyk’s Ad ARPU to be
higher than the Premium ARPU
which is paid by users.
When it comes to optimising Ad ARPU, Blyk has set out to leapfrog the
competition with a
smart strategy: Create the first ad-funded MVNO that offers a big,
though limited, amount of
free voice minutes and text messages that is attractive enough for
the target group to churn in.
Secondly, let all Blyk customers opt-in by default into receiving
advertising messages that are
targeted to personal interests. As targeted ads have a higher value,
it automatically increases
Blyk’s profit margin.
This whitepaper is ad-funded by Mobile Economy GmbH, the Berlin-based
for mobile innovation. Since I am an expert in mobile advertising and
MVNOs, I have decided to
reengineer Blyk’s business model, share my findings and develop a
number of strategy recommendations
that might be valuable to Blyk as well as future ad-funded MVNOs and
I believe that it is possible to build a profitable ad-funded MVNO.
It is also possible for MNOs
themselves to introduce ad-funded voice and data tariffs. You don’t
necessarily need to build a
new MVNO brand like Blyk to maximise Ad ARPU.
The full article is available here: http://www.mobiliser.org/article?
You can request the PDF version including the calculation by email
Best regards from Berlin,
Jan Michael Hess
Received on Tue Jan 29 12:38:03 2008