Blue Pie Mobile Marketing and Promotions © Amuse Entertainment Group BV 2005

Mobile Marketing and Promotions What is Mobile Marketing? The use of messaging, voting, polling, contests, images, audio, video, animation and games (text and video) over the mobile phone as a means of generating greater consumer interest and interaction with a brand, entertainment property, sports or charitable organization. What are the benefits of Mobile Marketing? Provides an opportunity for traceable ROI on marketing and advertising spend through revenues generated in Premium SMS, MMS and content sales Increases customer retention through interaction and entertainment Cost effective and easily integrated into the existing marketing mix Is fast becoming the most effective targeted marketing method © Blue Pie Productions 2005

How big is the mobile market? Over One and a Half Billion People in the world carry a mobile phone. Mobile phone subscription currently has an average of 89% market penetration in Europe and 58% in North America. Asian and Latin American countries all experiencing exponential quarter over quarter growth in mobile phone subscriptions. Today, 97% of all phones in use are SMS capable, 32% are MMS capable, and 4% of all phones today are video capable. Coveted youth market are early adopters of mobile services, spending up to 15% of their income or pocket money on mobile content and services. © Blue Pie Productions 2005

Mobile Marketing Stats Using mobile marketing strategies as part of the overall marketing mix helps marketers effectively reach, acquire and retain customers and ultimately generate sales through direct response consumer contests and promotions/cross-promotions. The use of mobile marketing is rapidly increasing as mobile usage grows and the mobile phone is more and more used as a multi-purpose platform. © Blue Pie Productions 2005

Mobile Marketing Methods SMS (text) and MMS (image) Messaging SMS and MMS Coupons SMS and MMS Contests SMS Voting and Polling Interactive Games Branded Entertainment Mobile Content Product Placement Mobile Content Sponsorships Location Based Marketing Mobile Commerce © Blue Pie Productions 2005

Blue Pie Products & Services Mobile Marketing Strategy Blue Pie works closely with its clients to develop an appropriate mobile marketing strategy based upon the client’s objectives in the campaign, customer demographic, on-going marketing initiatives, and budget. From our experience, a mobile marketing campaign is most successful when integrated with other marketing initiatives such as online, radio, television and print. Our team will work with you to integrate these programs and maximize their effectiveness. Campaign Development and Deployment Blue Pie is capable of providing complete development and deployment of all types of mobile marketing campaigns including messages, voting and polling, contests, coupons, interactive games, location based marketing and branded entertainment. Tracking and Management Blue Pie provides centralized campaign deployment to ensure proper tracking and reporting of all activity through the entire distribution network. Collections from mobile operators and carriers can optionally be handled by third party trusted collections agency like Fintage House to ensure proper allocations of any revenues derived from the mobile campaign. © Blue Pie Productions 2005

Sample Program: Feature Film Case: Feature Film Distributor wanted to use mobile marketing to promote the up-coming theatrical release of a film and drive box office sales. Objectives: Use mobile marketing to create interest in the film and build an audience for the release Establish a direct marketing relationship with potential theatre ticket purchasers Increase market awareness of the film, release date, story, content, and other items available Provide a call to action that is compelling enough to generate user interest in the film so that they will opt-in or participate Use this campaign to establish an interactive and direct relationship with fans for future marketing initiatives on other projects Explore new revenues models using mobile content to benefit stakeholders (ex. Producers, Distributors, Talent, Sponsors, etc.) © Blue Pie Productions 2005

Sample Program: Feature Film SMS CONTEST Consumers were invited to join contest by sending an SMS to the contest short code or by registering online on the film website. They were then sent a confirmation of their entry and acceptance to receive text messages about the film. The consumer replies “Accept” or “Decline”. Once accepted, the consumer agrees to receive text/image/video messages to their mobile phone pertaining to the film and are entered into a contest where a winner is drawn at random from all entries. A series of SMS multiple choice and quiz-like questions is sent to the user relating to the story, stars, etc. to build their interest. All messages sent and content downloaded charged at a minimal premium to their regular billing. © Blue Pie Productions 2005

Sample Program: Feature Film PROGRAM & RESULTS FILM integrates SMS campaign into all of their marketing materials including print, radio, billboards, web and television. The movie website provides direct links for the user to sign up and contest rules. Users must join contest to win a prize to the film’s premier and a chance to meet the cast and crew. In order to win, contestants must answer a series of questions sent to them by SMS. The user has the option of opting out at any time, but otherwise is sent the 10 pre-set questions at a rate of once per week. FILM generates relationship with fans prior to its theatrical release and establishes interest in the story through the SMS contest. Incentive is provided in the form of an award, and the costs of the campaign are minimal and absorbed entirely by the return generated from the SMS messages sent. Sample ROI: Assuming a $.10PSMS Rate Average of 10 messages sent and received Average per user revenue of $1.00 US Revenue Split Structure: ARPU $1.00 Mobile Operator (40%) $0.40 Billing Charges (15%) $0.15 Distribution (15%) $0.15 Net Revenues $0.30 Number of Participants* 500,000 Net Revenue $150,000 * Contest only. Does not include any content downloads. © Blue Pie Productions 2005

Sample Program: Television Show Case: Interactive Television Reality television show wanted to establish greater interaction with fans and include them in the decisions made on the show, as well as doing more innovative things with sponsors. Objectives for Television Show: Create interaction with fans and involve them in decisions made on the show Allow fans to opt-in to receive SMS and MMS updates to behind the scenes activities and show updates Provide an opted-in mechanism for show sponsors to reach the viewing audience through the mobile phone Create a market for other mobile content such as wallpapers, screensavers, ring tones, and video games Encourage sponsor participation in mobile activities to assist with marketing the new service and generating more users Diversify revenues using mobile activities © Blue Pie Productions 2005

Sample Program: Television Show SMS VOTING, MOBILE CONTENT, and SPONSOR MARKETING USING SMS/MMS MESSAGING Consumers were invited to participate in deciding who would stay on the show through SMS voting. Votes were tallied and used in conjunction with the requirements of the show to decide who would stay or who would be removed Consumers were then be asked to opt-in to receive a subscription for on-going show updates in the form of text or video for a monthly subscription fee as well as branded advertisements. Consumers could opt-in to receive advertisements and exclusive promotions from the show’s sponsors separately AA series of mobile content including wall papers and ring tones is created from the show for premium download. M Messages sent and content downloaded charged at premium to their regular billing. © Blue Pie Productions 2005

Sample Program: Television Show PROGRAM & RESULTS TV SHOW integrates SMS voting into each show providing unique short codes to users to vote on activities or decisions made on the show. Questions are directly related to the broadcast, ensuring viewership for the series. These short codes are published on the show’s website and during the broadcast, though viewers are provided a limited time to respond to ensure their involvement is active. Subscribers are able to get regular SMS and video updates sent to their mobile phones and download mobile content created for the show. Non-subscribers are able to vote using the Short Codes, and download mobile content at a premium rate. TV SHOW generates solid participation from fans both for voting and subscriptions, sponsors are happy and seek greater participation in the mobile initiatives and explore the creation of sponsored voting, updates, and content to leverage the show’s audience and build direct marketing relationships to viewers using their mobile phones. Sample ROI: Assuming a $.10PSMS Rate Average of 10 messages sent and received Average per user revenue of $1.00 US Subscriptions at $4.99 per month Revenue Share: Voting Subscriptions(x5) ARPU $1.00 $4.99 Mobile Operator (40%) $0.40 $2.00 Billing Charges (15%) $0.15 $0.75 Distribution (15%) $0.15 $0.75 Net Revenue Share $0.30 $1.50 Number of Participants* 500,000 35,000 Net Revenue $150,000 $52,500 Total Net Revenues $412,500 * Contest only. Does not include any content downloads. © Blue Pie Productions 2005

Sample Program: Sports Team Case Study: Creating a Mobile Fan base for the Team Sports Team wanted to extend its services to fans with mobile content, mobile contests, mobile interaction with the games and mobile subscriptions. Objectives: Generate new revenues for the team through mobile services Provide greater interaction with fans through live mobile voting on play of the day, top player of the day, best goal, and other such items Deliver mobile content and services to fans through a monthly subscription that would provide additional revenue to the team Encourage sponsor participation to provide incentives and rewards such as season’s tickets or other prizes for user participation Develop mobile content including wall papers, ring tones, video clips that could be sold through the team website, sponsor sites and distributed through web and mobile channels © Blue Pie Productions 2005

Sample Program: Sports Team SMS VOTING, MOBILE CONTENT, and SPONSOR MARKETING USING SMS/MMS MESSAGING Fans were provided opportunities to vote on specific items relating to the team or the game through the television broadcast and the stadium monitors Additional opportunities were provided in the form of skill testing multiple choice questions throughout the game where the fan would have an opportunity to win prizes provided by the team’s sponsors Respondents of either were sent a confirmation after their initial message and provided with a simple yes or no opt-in to subscribe to additional items including live score updates by SMS, play of game video clips from each team game, and other mobile content such as team ring tones, wallpapers, etc, as well as the ability to opt-in to advertisements provided by team sponsors A Series of team branded mobile content including wall papers and ring tones is created from the show for premium download All messages sent and content downloaded charged at premium © Blue Pie Productions 2005

Sample Program: Sports Team PROGRAM & RESULTS The Sports Team markets opportunities to vote on game activities and win prizes or tickets provided by sponsors such as tickets to the next game, case of sodas, etc. Short codes and mobile activities marketed through the stadium monitors, on printed tickets, game programs and flyers, print and radio ads. Fans presented with the opportunity to participate in contests, test their team knowledge, win great prizes and personalize their phones with the team content. Provides filler during game breaks and time-outs and keeps the fans engaged throughout the game. Finally Mobile content creates long term revenue possibilities to the team. Team Profile: 50,000 Average Game Attendance 135,000 Active Fans Sample ROI: Assuming a $.10PSMS Rate Average of 10 messages sent and received Average per user revenue of $1.00 US Subscriptions at $4.99 per month Revenue Share: Voting (x20)Subscriptions(x9) ARPU $1.00 $4.99 Mobile Operator (40%) $0.40 $2.00 Billing Charges (15%) $0.15 $0.75 Distribution (15%) $0.15 $0.75 Net Revenue Share $0.30 $1.50 Number of Participants* 5,000 10,000 Net Revenue 15,000 (x20) 15,000 (x9) Total Net Revenues $435,000 * Contest only. Does not include any content downloads. © Blue Pie Productions 2005

Sample Program: Major Consumer Brand Case: Automotive Company A global automotive company wanted to use new innovative mobile marketing tactics to learn more about their car owners and be able to establish direct contact with them for marketing and re-sale purposes. Objectives: Establish direct access to the owners of their vehicles. Collect customer information to market special offers on new cars as well as maintenance and repair services from local dealers Use their mobile phone numbers as a means of promoting specials directly to the customer Provide a basic platform for collecting customer and vehicle data and future initiatives such as mobile reminders of maintenance and check-ups Open new potential revenues from mobile services like reminders, location based services, etc. © Blue Pie Productions 2005

Sample Program: Major Consumer Brand SMS CONTEST Consumers owning a 2nd, 3rd or 4th hand vehicle from the brand were invited to join contest by sending an SMS containing information relating to their current vehicle such as year, make, model and a picture (optional) to the brand to enter a contest to win a brand new vehicle Consumer also provided option to opt-in to receive SMS and MMS messages from the brand pertaining to new products and services or future contests Consumer data is collected and a winner randomly selected. © Blue Pie Productions 2005

Sample Program: Major Consumer Brand PROGRAM & RESULTS BRAND is able to generate significant customer information and build a database on the current owners of their 2nd, 3th and 4th hand cars as well as a direct marketing relationship to them to be able to market specific products and services. Consumers are billed a premium fee for submitting information and again for marketing messages received from the brand. BRAND builds its own database of customers and their mobile phone numbers and is able to use this for future marketing of products and services Cost of contest, campaign and prize supported by revenue generated from the messages going back and forth and the brand has a direct channel to market to its customers. Return on Investment: Assuming a $.25 PSMS Rate Average of 10 messages sent and received Average per user revenue of $2.50 US Revenue Share: Entries/Opt-In ARPU $2.50 Mobile Operator (30%) $0.75 Billing Charges (20%) $0.50 Distribution (10%) $0.25 Net Revenue Share $1.00 Number of Participants 250,000 Net Revenue $250,000 Cost of Campaign* $26,000 * Contest only. Does not include cost of vehicle provided as a prize. Estimated to be $30,000. © Blue Pie Productions 2005

How does it work for you? Blue Pie will work with you to develop a mobile strategy and creative concept for marketing and promoting your brand and/or content and seek appropriate marketing partners for your campaign (ex: ISPs, web portals, telcos) Any content created for use in the contest or promotion (ex: ring tones, wall papers, screensavers, video clips) is formatted for delivery to multiple mobile phone types, platforms and networks Global distribution can be provided through a combination of proprietary channels and partners including your website, sponsor sites, web portals, content aggregators, mobile portals and mobile operators. Delivery and billing is managed real-time by Blue Pie with monthly consolidated billing and reporting for all PSMS, PMMS and any content delivered or sold globally. Collection and disbursement is handled and distributed to parties according to agreed upon revenue splits. © Blue Pie Productions 2005

Basic Cost Items Costs are broken down into three main components: 1) Mobile Marketing Strategy and Concept Creation: Based on size of campaign, duration, complexity and geographical coverage. 2) Content Production: Original Content production costs are depending on type of content (text, image, audio, video, animation), existing assets, and quantities. 2) Content Conversion: Conversion rates are based on type volume of content, territories for delivery, and range of phones to be supplied. 3) Mobile Marketing and Contests: Short Code acquisition or usage and marketing. This will usually be done by the show, in collaboration with sponsors and advertisers. 4) Content Distribution: Content distribution is provided on a revenue share basis. Blue Pie typically charges a 20% distribution fee on the Gross Retail Value. © Blue Pie Productions 2005

Why use Blue Pie? All Production and Delivery managed in-house by the project team to minimize risk and cost to the client Early experience in developing and delivering mobile marketing and promotions campaigns in several global territories Knowledgeable team with successful track records in advertising, events, entertainment and brand marketing Deep understanding of mobile marketing methods Experience with integrating mobile marketing with traditional campaigns But most of all, we know our stuff …………and we’re fun to work with! © Blue Pie Productions 2005

Next Steps Evaluate the objectives and goals of the campaign Identify points of integration with existing marketing and advertising activities Determine quantity and types of content to be created Decide which territories to activate and within which time frames. Select Content to be used or determine content requirements Develop marketing campaign and contest Identify potential sponsors for campaign and contest Coordinate with local distributors, mobile operators and web portals for marketing and promotion where applicable © Blue Pie Productions 2005

Leap into the future with Blue Pie… Thank you… Damien Reilly CEO and Founder Blue Pie Productions +612 9310 0155 Damien@bluepie.com.au © Blue Pie Productions 2005