Tesco Mobile has launched an exclusive mobile advertising service.
The MVNO explained that the new feature, called Xtras, will enable customers to save money off their monthly bill by viewing personalised ads that appear when a smartphone is unlocked.
Describing the app-based service as the first of its kind in the UK, Tesco Mobile CEO Anthony Vollmer told Mobile that the timing is perfect: ‘This is the first time anyone has ever given customers money for looking at adverts’, he said.
‘The content offered will be really relevant and it’s that engagement which will make it a success. The opportunity presented itself and it’s definitely the right time, advertising is increasingly moving onto mobile and it adds another string to our bow.’
Vollmer has previously spoken of the importance of ramping up the MVNO’s consumer offering especially in the aftermath of the failed Three/O2 merger. Speaking to Mobile, the UK boss set forth the brand’s post-merger strategy, claiming that strong consumer offers highlighted the Tesco Mobile’s strong market position.
Unlocking consumer value
Available on pay-monthly Android handsets and to SIM-only customers, Tesco Mobile said it’s new Xtra feature would result in an extra £3 off a monthly bill or up to 40% off a SIM-only tariff.
To launch the app, the UK MVNO partnered with mobile technology business Unlockd, who white labelled the opt-in advertising service. The business has secured a number of UK partnerships to, as CEO Matt Beriman told Mobile, pass savings onto customers. So far, British Airways, Doritos, Branston and content provider News UK have joined the line-up.
Beriman said: ‘Our UK launch with Tesco Mobile is an exciting partnership which will provide real value to consumers, saving them money and giving them access to great content and offers upon unlocking their phone.
‘From the success of previous partnerships in Australia and the USA, we’ve seen a great uptake on the service as customers continue to seek value. We are looking forward to opening up this benefit to the UK market with Tesco Mobile.’