T-Mobile begins offering mobile advertising on a commercial basis

• Targeted advertising offers the opportunity to approach the operator's customer base of more than five million subscribers
• Three forms - SMS/MMS campaigns, SIM Toolkit advertising and ads on invoice attachments
• The price per contacted subscriber is CZK 2.50 - CZK 7

Prague, 1 October 2009 - Beginning today, the largest Czech mobile operator is offering mobile advertising. Advertisers can choose from several types of new advertising formats: SMS and MMS campaigns, ads on invoice attachments and ads placed directly on mobile phones via SIM Toolkit. The price per contacted subscriber ranges between CZK 2.50 and CZK 7 and it is set at two levels for each format, depending on the form of targeting.

"At a time when customers are starting to be resistant to the standard types of advertising, T-Mobile is introducing new, highly efficient advertising formats," says Michal Němec, Vice President Mobile Portal & Content Services at T-Mobile, commenting on the new service. "Advertising on mobile phones differs from the standard advertising formats in that it allows precise targeting as well as the customer's immediate interaction with the advertisement. At the same time, it can be measured effectively. The mobile phone is a personal medium. Most people read messages they receive on their mobile phones or forward them to their friends, as documented by the results of our pilot operation, which was conducted during the first six months of this year."

Pilot operation showed convincing results
T-Mobile tested the efficiency of SMS/MMS campaigns in the pilot operation held from 16 March to 12 June 2009. This pilot project addressed two target groups: young people under the age of 26 and women living in urban areas. The two selected groups of customers received advertisements from 22 advertisers in the areas of FMCG, cosmetics, fashion, the automotive industry, banking and publishing. A total of 32 campaigns were conducted.

In all cases, the addressed customers could immediately interact with advertising by clicking on the mobile internet application, by calling the included number or by sending a text message.

The average response rate of 2.72% greatly exceeded the same indicator for banner campaigns on the internet (where this rate ranges between 0.1 and 0.2%). In this respect, even the weakest campaign from the pilot project had a better success rate, namely 0.29%. Respondents gave the most attention to a campaign which had a response rate of 11.78%.

Another factor in favor of this type of advertising is the fact that three-quarters of recipients kept the advertising message in their mobile phone so that they could return to it later and read it again or use it for other purposes. One-third of the recipients forwarded the received message at least once to their friends. This form of targeted advertising offering benefits such as discounts or information on new products was generally perceived as added value on the part of the operator.

The target groups also indicated a high probability of using mobile advertisements in future: a total of 58% of women and 38% of young people from these groups reported being confident (100%) that they will use mobile advertising in future. More than four-fifths of the participants in the pilot project would recommend this service also to their friends.

Targeting = foundation of success
T-Mobile offers two forms of targeting: basic and extended. Basic targeting is based on gender and age, whereas the extended form also includes filters such as geographic area, type of phone and mobile services used. The basic indicator in the case of business entities is the geographic area and the extended indicators include, for example, information on the field of business.

The standard prices range from CZK 2.50 to CZK 7 per contacted customer depending on the type of product and the form of targeting.

No fear of spam
If a customer does not wish to receive advertising messages, he can express his refusal to receive such messages, and he will be removed from the database.

Type of advertising	Basic/1 contacted customer (CZK)	Extended/1 contacted customer (CZK)
SMS campaign	3.00	4.00
MMS campaign	5.00	7.00
Invoice attachment	2.50	3.00
SIM Toolkit	3.00	4.00

Note: The prices do not include 19% VAT. The price includes analysis of the campaign's success rate (deliverability, CTR, conversion rate, etc.)

T-Mobile Czech Republic, a member of the international telecommunications group Deutsche Telekom, has almost 6.2 million customers, the number-one operator in the Czech market. T-Mobile is an integrated operator: in addition to telecommunications services, it offers comprehensive ICT solutions not only for companies, but also for other organizations and individuals. It provides outstanding services in the high-speed network, which was proved repeatedly by benchmark testing performed by umlaut (former P3) with Best-in-Test seal.

T-Mobile Czech Republic places emphasis on taking a responsible approach to the environment and society. It adheres to fair business practices, helps beneficial applications and services to see the light of day, supports non-profit organizations, small businesses and individuals, and lends a helping hand whenever crisis situations arise. The company’s employees serve as volunteers in many places across the entire Czech Republic.

More information about the company is available at www.t-mobile.cz, www.t-press.cz (the portal for journalists) and www.t-mobile.cz/pomahame (information on the company’s CSR activities).

Contact details of the press unit: press@t-press.cz.