Reshaping Indonesia s Advertising and Media Landscape New Approach to the Existing Business for XL Axiata
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1 Reshaping Indonesia s Advertising and Media Landscape New Approach to the Existing Business for XL Axiata Herwinto Chandra Sutantyo Head of M-Advertising PT XL Axiata
2 Reshaping Indonesia s Advertising and Media Landscape New Approach to the Existing Business for XL Axiata
3 Non-Telco Product & Services Core Product & Services Voice Data Service Saturated Market Price War Digital Services (new business) Advertising E-Money & M-Finance M2M & Cloud Services Digital Entertainment Positive EBITDA New Revenue Streams
4 Buy running shoes from XL Marketplace after Price Comparison Click on banner ad for new running shoes collection from XL Price Comparison Send $100 back home to grandparents Buy new shoes for my RPG avatar to match M-Ads Digital Commerce Domestic Remittance 6:00 PM 4:00 PM Save copies of my XL spreadsheet work at XL Cloud. Games/ M-entertainment 10:00 PM 2:00 PM M-Cloud Day in the life of Reza, XL Loyal Users, 27 y.o. 6:00 AM 10:00 AM M-Banking 8:00 AM M-Payment- NFC Time to check my bank balance to see if my salary has been deposited Pay for train ticket with XL Tunai "touch and go" M-Payment- NFC M- Ads Access UMB to deduct funds from my Tunai account to buy a coffee at 7-11 Receive an ad on Starbucks limited offer for free upsize tomorrow
5 Change Current Mind-sets Beyond Telco Services Take Ownership Collaborate & Initiate Key Strategic Partnership Hire other industries experts Focus on User Experiences and Customer Journey Be Meaningful New Approach 1 2 Create Working Group Non-Telco Product/Business Would impact the industry Multi-Sectors Create New Business Models Long Term Benefits Aide other ailing business sectors Supportive & Pro-Active
6 Sleeping with the Enemy 1 2 Multi-Telecom Working Group Working Groups on: 1. Mobile Advertising All Channels 1. SMS & MMS 2. USSD 3. LBA 4. Display 2. E-Money (non-balance) 1. Remittance 2. Balance Purchase All Telco (coming soon) ISP & Data Network WG Network & Data Utilization WG 1. Shared Advertising Inventories through: Free WiFi Access Broadband Cable Internet 2 nd Screen for Cable TV 2. OTT Partnerships w/ Social Media Network & other players: 1. In-Stream Ads. 2. In-App Purchases 3. In-App Advertising 4. User Acquisitions 5. Contextual Advertising
7 Sleeping with the Enemy 3 4 Digital Media Working Group Provide Online & Traditional Media access to: 1. Mobile Advertising Inventories All Channels 1. SMS & MMS 2. USSD 3. LBA 4. Display 2. Premium Market (XL only) 1. Pre-paid & Post-paid subs 2. Huge ARPU 3. Younger Audience (<38 yo) 4. EMC (emerging middle class) Other Business Sectors FMCG User Data Analytics Based on telco s Big Data Based on FMCG product usage Finding habits & other preferences Transportation Additional Ads Inventory Push & Pull Rich Entertainment Contents Location Based POI & Data Mobile Transaction
8 Case: Sleeping With Enemy Multi-Telecom Working Group cellular subscribers (90% market share) *200# Unified UMB number 2000 Unified SDC number Operational Bi-weekly meeting Different Channel Pricing Unified UMB & SDC number 0 user tariffs for ads Unified SLA for media order
9 Case: Sleeping With Enemy Multi Telecom Working Group Indofood Pop-Mie Mobile Campaign 1. Unique Code inside pack 2. UMB based event trigger 3. SMS & MMS marketing 4. Low ATL usage 5. 3 months period FMCG Results mio unique MSISDN participated with users profile mio redeemed Unique Codes 3. 40% sales increase within 2 weeks of campaign 4. 50% sales increase above avg. monthly sales % Response Rate
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11 Multi-Telecom Mobile Advertising Challenges 1. Unified access for all mobile devices 1. 75% of Indonesia cellular subscribers are using low end devices (WAP capable) 2. 92% are Pre-Paid subscribers 2. Touch-Points & Anti-Spamming Policy 1. Unified SDC & UMB for Mobile Advertising *200# and digits single UMB number for Brands: 2XXXX 3. Brand Keywords & Masking for mobile advertising broadcast through SMS, MMS & LBA: UNILEVER or COKEBLUE 4. No-Long Number usage for SMS/MMS Broadcast 5. Digital Rewards permitted: Telco & Non-Telco Products
12 Multi-Telecom Mobile Advertising 3. Hurdles Challenges 1. Different pricing schemes across inventories among telecoms yet unified discount scheme apply. 2. Different vendors and inventory availability: LBA is not available at Indosat. 3. Payments through various channels: Digital Rewards and Balance Top-Up may need to go through 3 rd party 4. Technical integration among all telecom companies 5. Different SOP for multi-telco collaboration at operational level for ads executions
13 The Big Picture Closed-Loop Mobile Experiences
14 What s Next for Telecom? Some thoughts for Indonesia market 1. Ads Driven Telecom Services Mobile User as Brand Endorser 2. Ads to Purchase Engagement via Mobile e-money 3. Big Data & FMCG /Brands behavior studies blending 4. Mobile Phone as 1 st Screen before TV with Triple-Play More ideas are welcome, we prefer workable ones No matter how crazy the ideas are.
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