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Exploring Mobile Advert Option to Increase ARPU

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Attractions of Mobile network operators in the country have started shifting from what it used to be which is voice to now data, video and other value added services, occasioned by low average revenue per user (ARPU). Outside providing subscribers access to internet as well as rolling out enterprise solutions for corporate customers, mobile network operators are also provided with the opportunity of maximizing the use of their technology through mobile advertisement.
Mobile network operators in Nigeria today have the required technology to deliver short message service, video and picture messages. One then wonders why they are not exploring mobile advertising option to enhance their revenue base which invariable could help in driving down voice call tariff.
Mobile Marketing refer to one of the two categories of marketing refer to one of marketing, first and relatively new, it meant to describe marketing on or with a mobile device, such as a mobile phone.
This is an example of horizontal telecommunication convergence.
Second, and a more traditional definition, is meant to describe marketing in a moving fashion – for – example technology and shows or moving billboards. However, this analysis is concentrating on the first definition of mobile marketing which has to do with using mobile phones as vehicle for advertising.
According to a survey conducted by a mobile marketing provider, approximately 89% of major brands are planning to market their product through text and multimedia mobile messaging by 2008. One-third is planning to spend about 10% of marketing budgets through mobile marketing.
     Also in about 5 years, over half of brands are expected to spend between 5% and 25% of their total marketing budget on their mobile marketing. Already, 40% of the firms that responded have implemented this feature for their audience. Strategy Analytics is forecasting that advertisers will spend $1.4 billion on mobile media this year, with that rising to $14.4 billion in 2011.eMarketers says mobile advert spending reached $ 1.5 billion last year and will grow to $14 by 2011.
      What will and already have given mobile marketing’s attraction are: the ability to reach a specific target audience; information about how the user responded to a marketing message; and proof that a message has been received by the user’s handset.
    Nigeria CommunicationsWeek gathering that Nigeria marketing communications is worth over $4 billion. Nigeria Marketing Association, Apcon said that the sector became vibrant with the liberalization of the telecommunications sector which witnessed a boost as a result of operators’ use of the medium to reach their subscribers in one promotion or the other.  
The association which is presently using television viewer ship mostly in their advertising campaigns is considering mobile marketing because television viewer ship is declining at a fast rate for some reasons, such as influx of cheap Chinese pirated movies, electricity failures, absence of prime time TV shows and absence of national Television stations. Radio, the association said, has its own challenges too and outdoor is location specific.
 According to a report by Apcon, mobile is the only medium with anywhere and anytime advantage with possibilities to accommodate all array of features like video, Multimedia Messaging Service, pictures, Short Message Service, internet and among others. Mobile is a more powerful personal medium than any other, and it is time that Nigeria Brands exploited the opportunity.
Possible Channels
 Marketing on a mobile phone has become increasingly popular ever since the rise of SMS (Short Message Service) in the early 2000s in Europe and some parts of Asia, when businesses started to collect mobile phone numbers and send off wanted or unwanted content.
 Over the past few years, SMS has become legitimate advertising channel in some parts of the world. This is because unlike email over the public internet, the carriers who police their own networks have set guidelines and best practices for the mobile media industry (including mobile and advertising).The Interactive Advertising Bureau (IAB) ad  the Mobile Marketing Association as well, have established guidelines and are evangelizing the use of the mobile channel for marketers. While this has been fruitful in developed regions such as North America, Western Europe and some other countries, mobile SPAM messages (SMS send to mobile subscribers without a legitimate and explicit opt-in by the subscribers) remain an issue in many other parts of the world, partly due to the carriers selling their member databases to third parties.
     Mobile Marketing via SMS has expanded rapidly in Europe and Asia as a new channel to reach the consumer. SMS initially received negative media coverage in many parts of Europe for being a new form of spam as some advertisers purchased lists and sent unsolicited content to consumer’s phones; however, as guidelines are put in place by the mobile operators, SMS has become the most popular branch of the mobile marketing industry with several 100 million advertising SMS sent out every month in Europe alone.
     In North America, the first cross-carrier SMS shortcode campaign was run by Labatt Brewing Company in 2002. Over the past few years, mobile short codes have been increasing popular as a new channel to communicate to the mobile consumer. Brands have begun to treat the mobile shortcode as a mobile domain name allowing the consumer to text messages to the brand at an event, in stores and on any traditional media.
     SMS service typically run off a short code, but sending text messages to an email address is another methodology. Short codes are 5 or 6 digit numbers that have been assigned by all the mobile operators in a giving country for the use of brand campaign and other consumer services. The mobile vet every application before provisioning and monitor the service to make sure it does not diverge from its original service description.
    Besides short codes, inbound SMS is very often based on long numbers (international number format, e.g. +44 7624 805000), which can be use in place of short codes or premium-rated short messages for SMS reception in several applications, such as product promotions and campaigns. Long numbers are internationally available, as well as enabling business to have their own number, rather than short codes which are usually shared across a number of brands. Additionally, long numbers are non-premium inbound numbers.
    Marketing communications companies in Nigeria lately are using SMS to send advertising content to mobile subscribers. It has become a common experience for one to receive SMS from companies on the prices of their product.
    One key criterion for provisioning is that the consumer opts in to the service. The mobile operators demand a double opt in from and the ability for the consumer opt out of the service at any time by sending the word STOP via SMS. These guidelines are established in the MMA Consumer Best Practices Guidelines which are followed by all mobile marketers in the United States. This has not started working in the country.
Mobile Marketing via other applications
The rise of Bluetooth started around 2003 and a few companies in Europe started establishing successful businesses. Most of these businesses offer “Hotspot-Systems” which consist of some kind of content-management system with a Bluetooth distribution function. This technology has the advantage that it is permission-based, and has higher transfer speeds and is also a radio-based technology and can therefore not be billed (i.e. is free of charge). The likely earliest device built for mobile marketing via Bluetooth was the context tag of the AmbieSence project (2001-2004)
    Location-based services (LBS) are offered by some cell phone networks as a way to send custom advertising and other information to cell-phone subscribers based on their current location. The cell-phone service provider gets the location from a GPS chip built into the phone or using radiolocation and trilaterationbased on the signal-strength of the closest cell-phone towers (for phones without GPS features).
    This has started happening in Nigeria, during Celtel rebranding to Zain, the company used Imaging Concept Limited, a proximity marketing firm to send to its subscribers pictures of their new brand Zain at all the event locations organized for the rebranding.
    Ugo Okoye, managing director of Iconcepts Limited, said that introduction of proximity marketing into the mobile marketing industry will no doubt make a big difference in the way brands reach their consumers with tailor-made messages that suit their purpose. According to Okoye, ‘for the first time, brands using proximity marketing technology can ensure that they reach their target audience at a time and place that put their messages in a direct and relevant context to the consumer’s current activity.
    “The ability to communicate with consumers bases on their presence in a fixed time and place is one of the great features of proximity advertising technique as it makes it possible to access people at various points with tailor-made offers precisely to suit them,” he said.
 Advertisement through mobile phones offers operators another avenue of revenue source to complement that of voice and data service. In this time of drop in revenue from voice service as a result of harsh economic condition, operators need to create awareness on the use to be able to maximize the benefit.

 


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Airtel Boosts NIPR Public Relations Week with Onsite Unlimited Data Connection

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Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.

The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.

Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.

“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”

According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.

Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.

With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.

Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.


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World Earth Day: Kuda Partners with Wecyclers to Clean up Communities in Lagos

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In a landmark partnership aimed at promoting sustainable waste management practices, Kuda Microfinance Bank and Wecyclers collaborated to commemorate World Earth Day on April 22, 2024. The collaboration featured a series of impactful activities designed to raise awareness and foster environmental stewardship.

The activities on the day included a webinar session facilitated by renowned expert in environmental management and head of ESG at Wecyclers, Omobolanle Olowu, during which she shared startling data on plastic pollution in Nigeria. She also discussed the importance of proper waste management and its significance in preserving the planet for future generations, providing valuable insights and practical tips on reducing, reusing, and recycling waste.

In a published study on plastic pollution in Nigeria, the country ranked ninth globally for plastic pollution with an estimated 2.5 million tons of plastic waste generated annually and less than 12% of those waste materials recycled.

Also on the day, Kuda staff volunteered for an environmental cleanup exercise, during which they took to parts of Apapa Road, Ebute Metta to empty gutters and collect plastics and other recyclable materials for recycling.

In addition, volunteers from Kuda gained firsthand knowledge of innovative waste management solutions during a guided tour of Wecyclers’ facility in Ebute Metta. The tour showcased Wecyclers’ pioneering efforts in recycling and waste upcycling, demonstrating how technology can be leveraged to address environmental challenges effectively.

Speaking about the collaboration, Emmanuel Femi-Adejobi, Senior Brand Manager at Kuda, expressed enthusiasm for the partnership’s potential to drive positive change. “We [Kuda] are committed to promoting sustainability and environmental consciousness. We also believe that our responsibility is not only to our customers and other stakeholders but also the environment that we all share. Partnering with Wecyclers allows us to inspire communities to adopt eco-friendly practices,” he said.

“Our initiatives towards achieving a sustainable environment and achieving a green earth goes beyond just recycling. We aim to inspire a broader commitment to waste minimization, reusing materials and proper sustainable waste management. As we commemorate World Earth Day, we encourage our staff, customers and general public as a whole to embrace actions that promote a green, safe earth for all,” he added.

Likewise, Esther Chibueyin Fagbo, Head, Human Resources and Partnerships at Wecyclers, emphasised the importance of collective action in addressing environmental issues. “It is very important for organisations to collaborate on initiatives that help save the environment. We are excited about this partnership because such partnerships are crucial to creating awareness and educating people about the impact of plastic waste on the planet and how they can contribute to a change that we all deserve.”

Kuda’s collaboration with Wecyclers emphasises its commitment to sustainability and championing proactive efforts through education, engagement and action to create an environmentally conscious population and a sustainable tomorrow.


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Defending the Foundations for Connectivity

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By Engr. Gbenga Adebayo

In 2001, when the first GSM call was made in Nigeria, how many of us would have envisaged the digital world that we live in today?

Defending the Foundations for Connectivity

Gbenga Adebay, chairman, ALTON

The pace of growth and the rate of adoption of telecoms solutions in Nigeria has been revolutionary. It is a globally acknowledged case study that we should be proud of and a clear demonstration of what can be achieved.

Almost all of us today are reliant on the network connectivity that it has enabled in different shapes and forms. From the simple need to communicate with loved ones, to the digital platforms that enable our access to and consumption of entertainment, financial products and other critical services.

Our reliance on these systems is becoming more and more acute, whether it is citizens, governments, or corporations.

System downtime is increasingly disruptive and offline manual redundancies are often in the advanced stages of being phased out. The pace of this transition is not slowing down. With the core infrastructure in place, innovation is driving the exponential growth of services that ride on it. From the fully adopted social media that has changed the way we interact, to the emerging Artificial Intelligence (AI) revolution.

While this innovation is enabling exciting new possibilities, there is a tendency to focus on those opportunities, to the detriment of the core infrastructure on which it rides.

It is imperative that we retain a focus on the optimisation of that infrastructure and enable continued investment in its development.

We have seen how the transition from 2G, through to 3G, 4G and 5G have each enabled the development of more and more sophisticated solutions.

The continued development of core infrastructure has to be sustainable, and over the last few months we have begun to see the challenges that the operators that provide it are facing.

Both MTN and Airtel have declared significant foreign exchange (FX) losses in Nigeria, and the stress is not linked to them alone.

The entire ecosystem is battling with a range of challenges that must be addressed. If we fail to do so, the downstream impact on innovation will be severe. Telecoms infrastructure requires a base level of investment to maintain its current capabilities, and significant additional investment to expand and grow. It is capital intensive and that capital has to be generated through sustainable business models.

At the heart of the challenge the industry faces is the issue of rising costs.

Recent financial losses are directly linked to the cost of operating towers that rely on inputs like diesel, which have increased significantly as the Naira has depreciated.

The provisions large telecom companies have had to make, and the consequent losses and impact on their reserves is a red flag.

It tells us that business as usual is not sustainable. If we continue as we are, then those companies will struggle to continue to invest in and maintain existing services.

But those costs are not the only challenge. General cost inflation, multiple taxation, regular and damaging vandalisation of infrastructure and the costs associated with regulatory compliance all help contribute to the high cost of operations.

We cannot continue to follow a path that asks those companies to simply accept those rising costs. It is no longer sustainable, and we have reached an inflection point.

This is a critical moment for the industry.

How we approach and resolve it will define the future of Nigeria’s digital economy.

If you want to be able to enjoy the benefits that digitisation brings. If we want the infrastructure that enables AI and helps us drive growth, then we must take action now.

Cost-reflective tariffs, like it or not, are simply non-negotiable. We have seen the impact of price controls in other segments of the economy, like power.

If providers cannot operate sustainable business models, then they stop investing. When that happens, the existing infrastructure starts to crumble.

For power, a consumer can choose to take ownership of the solution by buying a generator, or a solar panel.

For fuel, the government can step in as the provider of last resort and manage a subsidy regime that mitigates the impact on the population. Those options are not available in the telecoms sector. There is no self-help solution.

We fully understand and appreciate the financial stress that Nigerians are experiencing today. The cost of living is the single most significant factor in most people’s daily lives.

But those people are still able to enjoy the benefits that connectivity brings, at the price they paid before these challenges became so acute.

Imagine a future in which the gains of the last twenty years are reversed. Nigeria, and Nigerians simply cannot afford it. The pain that we would feel under those circumstances would be exponentially worse.

We need to find a long-term, sustainable and manageable solution to this problem. Prices will need to rise, but action needs to be taken in a measured way, through sustainable conversations and partnership with the government. It is time to address this head on.

 

Engr. Gbenga Adebayo is chairman, Association of Licensed Telecom Operators of Nigeria (ALTON).


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