Blyk hits 100,000 members six months ahead of schedule — MobileMonday Global: Industry News

^{Brand advertisers pay less for responses} Blyk hits 100,000 members six months ahead of schedule

24 Apr 2008 at 09:10 GMT Timo Poropudas

Advertiser paid virtual mobile operator Blyk, has signed up over 100,000 members since its launch in the UK at the end of September, 2007.

Annual member targets have been reached six months ahead of schedule, establishing it as a powerful new media for connecting advertisers with young people., Blyk says in its press release.

Blyk gives members free texts and minutes every month in return for receiving up to six highly targeted advertising messages per day from brands including Xbox, Adidas, STA Travel, Penguin, Brylcreem, Boots, COI and RSPCA.

The ad campaigns that fund the service have generated industry leading average response rates of 29 percent, at a time when trust in other forms of mass advertising is falling and brands are finding it increasingly difficult to engage with young people.*

Shaun Gregory, UK CEO said: "Reaching 100,000 members is significant for advertisers because it gives them the opportunity to engage with a mass youth audience in a highly efficient and cost-effective way. In six months we have built up a deep knowledge of our member base which now exceeds many established youth media players and with over 7 million 16-24 year old phone owners in the UK there is huge potential for growth."

Blyk’s proposition is based on the insight that messaging is the simple dominant mobile behaviour for 16-24 year olds. When new members join Blyk they are profiled based on their lifestyle and personal interests. This profiling is 100 percent opt-in and it helps Blyk to build up a deep knowledge of its customer base and deliver relevant communications to them. The profile enriches over time which means that the consumer experience just gets better and better.

Brands are using Blyk to create awareness, build relationships and drive action and sales through one-to-one interactions. Although the average response rate to advertising campaigns is 29 percent, many are significantly higher.

Penguin Books ran a campaign on Blyk to promote the launch of Nick Hornby’s latest novel ‘Slam’ and achieved an unprecedented 67 percent response rate. Blyk created a two-part messaging dialogue whereby positive respondents received a 90 second audio preview of the opening chapter read by Nicholas Hoult, star of Channel 4’s ‘Skins’ - a media first for using audio clips sent via mobile to promote a book.

Blyk is launching in the Netherlands in the second half of 2008 followed by other European markets and has recently attracted new investors Goldman Sachs and Industrial and Financial Investments Company (IFIC), who join a roster that includes Sofinnova Partners and a number of private investors.

Blyk says, based on E-Consultancy, September 2007, trade estimates, Feb 2008, that the cost of one response via its system is GBP 0.53. For the online advertising it is GBP 1.50, for email GBP 2.00, direct mail GBP 12.50 and unprofiled SMS push GBP 2.22.