O2’s ambitions to grow its mobile advertising via its O2 Media division are doing well, the company’s CEO told Mobile in an interview yesterday (11 November).
The focus for O2 next year will be on treating existing customers even better, according to Dunne. He cited the company’s recently launched International Favourites offer as a good example. ‘Our first approach was to our existing customers. We want to clean up a murky space, where you don’t know how much you are paying for international calls, so we made it very simple: £10 for 3,000 minutes.’
Meanwhile, the operator has had a million opt-ins for O2 More and has done some very location specific targeted advertising for Starbucks and others.
Dunne said: ‘When you get within 200m you got a customised local store offer. Our clients have been very excited about the results of that. We have seen exponential growth here, albeit from a very small base.’
‘We are looking at how we can make it more scalable,’ he added. ‘We would like to work with others to establish an industry platform. It’s like SMS was originally when you could only send texts to people on the same network. But it would be even better if you could send targeted advertising to a bigger share of the whole market – it could be a win-win for everyone.’
Dunne said O2’s customer reward scheme, O2 Priority, was also continuing to see momentum. ‘The marketing campaign for the Foo Fighters concerts next summer at the Milton Keynes Bowl was our most successful ever with 72,000 tickets sold in two hours.’
He added: ‘A service like O2 Priority is all about being part of the O2 community. We are continuing our Fair Deal policy (where existing customers get the same offers as new customers) – it is very much at the heart of our proposition and it’s all about confidence and transparency.’
The reason for concentrating on keeping existing customers happy (besides keeping churn down) is that seven out of 10 transactions are with an existing customer. ‘The bulk of our work is upgrading existing customers,’ said Dunne. ‘Even new customers are often someone who has another O2 product already.’