Trends Report

The Prospects For Ad-Funded Mobile Services

Why Ad-Sponsored Mobile Voice And SMS Won't Disrupt The Market

November 21st, 2007
With contributors:
Michelle de Lussanet , Lauriane Camus

Summary

European mobile operators are still contemplating giving mobile services away for free to consumers. The catch? Consumers have to agree to receive advertising on their mobile phone. UK mobile virtual network operator (MVNO) Blyk recently launched a new variation of this concept with a business model that's based on ad-funded services, including voice and SMS messaging. The Blyk model will face challenges in getting consumers to accept advertising on their mobiles as well as in signing customers up online and keeping them loyal. Blyk will also have a tough time convincing marketers to advertise with it until the MVNO can show significant reach; precise targeting won't make sense until then.

Want to read the full report?

This report is available for individual purchase ($1495).

Forrester helps business and technology leaders use customer obsession to accelerate growth. That means empowering you to put the customer at the center of everything you do: your leadership strategy, and operations. Becoming a customer-obsessed organization requires change — it requires being bold. We give business and technology leaders the confidence to put bold into action, shaping and guiding how to navigate today's unprecedented change in order to succeed.