Turn your mobile subscribers into audiences by connecting them with the brands they love.

1. Understanding the
Mobile Advertising
Opportunity for
Operators
Turn your mobile
subscribers into audiences
by connecting them with
the brands they love.

2. Mobile advertising and Advertisers and marketers are quick to
pick up on new mobile usage trends and
they recognize that delivering messages
marketing realities over mobile devices is an exciting new
opportunity. But these messages have
to be delivered properly to be effective.
Mobile devices are highly personal and
consumers aren’t interested in receiving
advertising that doesn’t fit their lifestyle
or that is about products they aren’t
interested in. They do want to receive
targeted advertising about the brands they
love and the products and services that fit
their personal preferences and taste — as
long as their privacy is protected.
The brands and media agencies
know that if they can focus
their campaigns according
to consumers’ preferences,
recipients will be more
responsive to their message.
Furthermore, if they can
engage consumers in a dialogue
about the brand, they’ll know
their message is getting through.
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3. An opportunity is born …
For mobile operators, most of the advertising
that has occurred so far is delivered over the
top (OTT) of your networks. You’re providing
and maintaining the roadway for advertisers to
communicate with your subscribers, but you’re
not getting a great return on that investment.
It doesn’t have to be that way. A mobile adver-
tising solution can be built on a business model
that enables you to participate in the mobile
marketing and advertising value chain.
You’re going to be competing head-to-head
with application and content providers that
already have both mindshare with your
customers and strong media relationships. To
attract advertising budgets your way, you’ll
need to offer something different and better,
with a measurable ROI so advertisers can easily
see the added value.

4. To make your advertising inventory
stand out, you need to offer media with
better reach, interactivity and response.
Advertisers want to distribute their adver-
tising message to a wide audience —
beyond local boundaries to national and
international audiences. You can provide
that kind of reach by working with a
partner to aggregate your advertising
inventory (ad space) with other mobile
operators’ inventories. Ideally, the partner
will also help to sell your advertising
inventory.
Current mobile advertising initiatives
— primarily WAP and mobile banners —
provide low levels of engagement. This
translates into a lack of response to the
ad campaign and lower CPM valuations.
To achieve a higher response rate and
improve the CPM, you need a mobile
advertising solution that delivers a more
compelling, interactive consumer expe-
rience. Interactivity also means that the
effect of the ad campaign is measurable.

5. Leverage your relationship with subscribers
As a mobile operator, you have a unique
advantage over other media owners: your
direct relationship with your subscribers.
To protect that relationship, you’ll want to
offer advertising that is transparent, with an
explicit opt-in procedure. The ideal mobile
advertising solution will enable you to deliver
advertising that’s permission-based and incor-
porates personal preferences. This approach
will ensure that the mobile ads drive a very
high response rate.
By delivering messages that your subscribers
want to receive, you’ll be giving them
another reason to stay with you as their
provider. An effective mobile advertising
service will also help to differentiate you
from competitors and draw new subscribers
to you.

6. Alcatel-Lucent Optism Mobile Advertising Solution TM
The Alcatel-Lucent Optism Mobile Advertising Solution costs you of reach advertisers need for effective campaigns. Once that’s done,
nothing to implement but can deliver big rewards. To get started, you’re part of something much bigger — a whole new business
we plug our technology into yours. This enables us to aggregate opportunity focused on mobile advertising and marketing that is
your advertising inventory with other providers, creating the kind ready, right now, for mass market deployment.

7. The Alcatel-Lucent Optism Mobile Advertising
Solution was designed and commercialized with the
advertising industry to make mobile media selling
simpler and to encourage brands to adopt mobile
advertising and marketing. In the last two years,
Alcatel-Lucent has made significant investments in
the advertising arena, building relationships and
developing innovative strategies for tapping into
mobile advertising and marketing opportunities.
As a new business model, the Optism Mobile
Advertising Solution goes beyond just technical
capabilities. We cover everything from go-to-market
support for operators and media sales and campaign
support towards advertisers. The solution provides
mobile operators with an innovative way to grow
revenues by offering value-added services and
improving subscriber experiences. And it gives brands
the ability to connect with subscribers through
relevant interactions that fit their lifestyles. Based on
subscriber’s stated permission and preferences, brand
communications are delivered via interactive SMS
and MMS messaging.
Creating an effective
mobile advertising marketplace

8. Introducing the new Alcatel-Lucent media arm
As part of our investment in mobile Because we manage the rela-
advertising, Alcatel-Lucent has tionship with media agencies and
created a media facing arm. This operate the advertising platform,
group brings together a wealth of it’s easier for you to participate. We
experienced advertising and mobile leverage your network assets and
marketing professionals and is improve their value both through
responsible for building commercial aggregation and by enabling
relationships with global brands brands to enter into meaningful
and agencies to facilitate the sale of dialogues with your subscribers.
mobile operators’ media inventory. Most importantly, we do this while
At the heart of the solution is the ensuring that subscribers’ privacy
advertising platform, fully hosted is always safeguarded and they
and managed by Alcatel-Lucent. retain control of their information
The platform connects directly and preferences. Our research has
into mobile networks offering a shown that consumers, particularly
single entry point for advertisers the valuable youth segment, are
to multiple mobile operators. It ready to embrace this type of adver-
provides advertisers with a simple tising, if it is done right.
method of booking campaigns and
ensures consistent reporting.

9. Enabling connections
The Alcatel-Lucent Optism Mobile Advertising Solution solves established that connects you with media agencies, advertisers
the relationship gaps that exist between mobile operators and and marketers. This in turn enables advertisers and marketers to
the media world making it simpler for all members of the value connect your subscribers with the brands that interest them.
chain to collaborate. Through our solution, a global ecosystem is
Alcatel-Lucent Optism™ Mobile Advertising Solution
Media Owner
Brands Agencies (Operator) Consumers
Engagement, Research ROI, Reach and New Revenue Stream Value and Improved
and Sales Ease of Booking and Service Innovation Experiences
- Media Industry - Go to Market Support
Relationships - Opt-in and Profiling
- Media Sales and - End-to-end Technology
Booking Tools
- Cross-Mobile Operator
Aggregation

10. Maximizing the value of your media inventory
Today, you’re selling bulk SMS To join the service, subscribers must
for advertising and marketing give their permission through an
purposes, but this approach does opt-in process, during which they are
not realize the highest possible asked a few simple questions. Their
return for you. The SMS is sold at the answers to those questions make it
lowest acceptable price, to mobile possible to ensure the advertising
marketing agencies that are creating they receive is relevant. Because they
campaigns on behalf of brands. To have explicitly opted in to the adver-
them, SMS delivery is simply a cost. tising service, subscribers are more
engaged in the advertising received,
Our approach focuses on improving which of course increases the value
the value of your media inventory of the advertising to the overall
— making SMS the most responsive campaign. Dynamic management of
and targeted, high-reaching media subscribers’ preferences ensures they
available in the mobile media are always in control.
business. We use a highly responsive,
scalable and efficient dialogue media All of these elements increase the
based on SMS/MMS messaging, value of your inventory to adver-
along with display to enable a tisers, which in turn ensures you get
relevant conversation between the best possible ROI.
consumers and brands.

11. Media industry endorsement
Finally, we’re proud to say our solution is already backed
by the industry. The Optism Mobile Advertising Solution
has been endorsed by GroupM and Mediacom, part
of the WPP group, one of the largest media buying
agencies in the world, to bring you this opportunity. In
fact, media agencies around the globe have endorsed
our approach because we’re doing it right. This isn’t
just TV creative pushed down the phone. The Alcatel-
“The most desirable inventory involves user permissions supplemented by
Lucent Optism Mobile Advertising Solution is specifically explicit preferences and must offer broad scale to truly harness mobile as a
designed for today’s advertising environment. It takes marketing channel. Clients are increasingly asking if they can run campaigns
advantage of the unique capabilities and relationship over multiple regions and at scale. Alcatel-Lucent’s operating model and access
you have with subscribers to enable highly scalable, to multiple mobile operators is a big step forward towards meeting these
requirements.”
targeted advertising campaigns.
David Kyffin
Global Chief ROI and Direct Marketing Officer
Premium Membership in the of Mediacom, part of the WPP group
Mobile Marketing Association
Further proof of Alcatel-
“We are thrilled to have Alcatel-Lucent join as a Premium Member as
Lucent leadership in mobile the company’s leadership and global strength is beneficial to the entire
marketing and advertising ecosystem. They have a unique ability to provide end-to-end communications
is our position as a Premium solutions that can help to drive the mobile marketing industry to bring new
Member of the Mobile Marketing Association (MMA). services and capabilities to market.”
The MMA reserves the Premium Member tier to
Federico Pisani Massamormile
companies with the scale, scope and resources to effect Interim CEO of the MMA
genuine change in the marketplace.

12. Paying the bills
With no up-front investment, the Alcatel-Lucent Optism Mobile Advertising
Solution helps you move quickly into the value chain, to participate in
growing revenues from mobile advertising and marketing. Now, instead
of simply providing the infrastructure over which OTT applications and
content ride for free, you will be creating highly responsive and targeted
mobile media. Your share in the revenue stream will reflect this valuable
contribution to the overall advertising service.
The advertising industry is huge, with an estimated value of $1 trillion
United States dollars. While about half of that amount is spent on tradi-
tional advertising (including print, radio and television), the market is
largely flat. Traditional media simply don’t provide the level of response
advertisers are looking for. It’s also becoming increasingly difficult to reach
audiences over the usual channels (consider the impact of the PVR on tele-
vision advertising!). Most importantly, traditional advertising doesn’t enable
brands to measure how many people view an ad. Digital advertising, on the
other hand, is a healthy, dynamic market with the potential for an excellent
return on investment. It also offers the personalization needed to improve
targeting, relevance and responsiveness. With the proliferation of
mobile devices, the mass consumer audience is there.
Put very simply, the advertising market is moving from reach and frequency
to reach and relevancy/responsiveness. And the latter pays much better.

13. Alcatel-Lucent — your partner
for mobile advertising
Alcatel-Lucent is already a global leader to advertisers, in order to create new
in mobile communications. Now, through business models and generate additional
our media arm, we have assembled revenue. The Solution will also give you
an in-house team of advertising and a new set of tools to create and deliver
marketing specialists drawn from media compelling services and content to your
agencies, content providers and brands. most valuable asset – your subscribers. We
This team will work with you to ensure then aggregate your inventory with other
that you are able to participate fully in mobile operators to offer media agencies
this dynamic and growing market. more compelling inventory and the ability
to engage consumers in a dialogue with
The Alcatel-Lucent Optism Mobile their favorite brands.
Advertising Solution is a prime example
of the Company’s vision for application In addition to providing the necessary
enablement — a vision that focuses technological tools, the Alcatel-Lucent
on helping you to leverage the value Optism Mobile Advertising Solution
in your network by enabling new includes go-to-market support, opt-in and
business opportunities. The Optism audience management, media sales,
Mobile Advertising Solution helps you to and campaign strategies to solve the
securely expose your infrastructure assets relationship gaps that exist between
including mobile data, messaging, billing, you and the media industry.
mobile payment, video, and location

14. Learn more about the Alcatel-Lucent Optism Mobile Advertising Solution
Learn more about our media arm