This document provides a summary of mobile marketing and advertising benchmarks in the US and Turkey. It discusses the key US wireless carriers - AT&T, Verizon, Sprint and T-Mobile - and their mobile advertising solutions. It also summarizes the Turkish wireless market structure and the major players Turkcell, Vodafone and Avea. Finally, it outlines Turkcell's mobile marketing products and timeline in Turkey.

1. This is the limited edition of the end of benchmark study.
Any information in this edition could be found in corporate
web sites of companies, quarterly results and blogs based
of telecom and mobile marketing&advertising.
Mobile Marketing & Advertising
Benchmarking Study
Evrim Dirik
Product Manager
Turkcell
evrim.dirik@turkcell.com.tr
Homepage: www.marketingmyself.net
August-September 2009
USA Turkey

2. Agenda
-Aim of the benchmarking study
-US Wireless Market
• Shortly about the market
• Wireline to Wireless
• Tier 1 and Tier 2 carriers
-US Advertising Market
-US Mobile Advertising Market
-AT&T Advertising Solutions
-Turkish Wireless Market
• Shortly about the market
• Tier 1 carriers
-Turkish Advertising Market
-Turkish Mobile Advertising Market
-Turkcell Advertising Solutions
Page 2

3. Aim of the study
Introducing US and Turkey
• Wireless market
• Mobile Advertising Market
• Ecosystem
• Major Players
• Revenues
Introducing AT&T mobile marketing & advertising services
 YellowPages.com ( Web, Wap, iPhone, Search)
 Medianet - MediaMall
 U-Verse IP-TV
 Wi-Fi
Introducing Turkcell mobile marketing & advertising services
 Perm DB
 Tone & Win
 Display Banners
 Sponsored airtimes & credits / Co-branding Campaigns
Page 3

4. USA
Page 4

5. US Wireless Market
• The US subscription penetration was approximately 90.4% at the end of Q209. (CTIA-The Wireless
Association)
• The U.S. is now is the largest mobile data market, ahead of Japan and China. Verizon’s data revenues
are close to $4 billion, while Japan’s NTT DoCoMo is #1.
• 3G penetration in the U.S. was around 40 percent during Q209.
• Postpaid dominant market. (≈80%)
• Prepaid acquisition is the Next Profitable Stage In US Cellular Market Growth.
• Sprint, T-Mobile and MVNO business suffer in USA while Verizon and AT&T dominates the market.
• 62 Mio Mobile Web + Instant Mess. / 55 Mio Mobile Web Unique Visitors
*Source: eMarketer
Page 5

6. Wireline to Wireless Market
• ATLANTIC-ACM shows that wireless revenues will
overtake all wireline revenues by 2014*.
• Verizon to cut 8,000 jobs due to falling wireline
revenue by Q209.
• Verizon has agreed to sell its wireline assets in 14
states to Frontier Communications.
• AT&T Wireline revenue decrease by 18% from
Q307=$10,356 to Q209=8,449 Mio.
• Carriers attribute the losses in their wireline
business to the trend of wireless services and
Internet voice providers such as Skype and
Vonage.
*Source: Atlantic-ACM Report
Page 6

7. US Wireless Market / Q209 Results
Tier 2 Tier 1
2009 Q2 Results Cricket Metro PCS T-Mobile Sprint Verizon AT&T
Wireless Service Revenue (Mio) $542 $860 $5,340 $7,000 $15,500 $13,250
Wireless Operating Income (Mio) N/A $111 $425 -$314 $4,460 $3,200
Wireless Data Revenue N/A N/A N/A N/A $3.900 $3.400
Wireless Data Revenue/Service Revenue N/A N/A N/A N/A 25% 26%
Total Subscribers (Mio) 4.5 6.3 33.5 48.8 87.7 79.6
Blended ARPU $42 $41 $48 $56 $51 $51
Market Share 2% 2% 12% 17% 31% 28%
• Tier 2 Boost, Cricket and MetroPCS prepaid-oriented carriers.
• $50 unlimited minutes, texting, Internet and push-to-talk is popular.
• Up to 26% data revenue of wireless service revenue.
• Blended ARPU up to $51 in AT&T and Verizon.
Page 7

8. AT&T
Largest provider of local, long distance telephone services in the United
States.
• Main business areas
• Wireline, wireless, IP-TV, Broadband
• 1H09 total revenue $61.3, wireless revenue $26 ( 42% of total)
• 78.2 Mio Wireless Subs
• 16.9 Mio Broadband Sub
• 1.7 Mio U-Verse ( IPTV ) Subs by Q209 Results.
• The nation's largest Wi-Fi provider, now offering customers access at
more than 100,000 hot spots
• The nation's largest directory publisher, delivering print directories to
173 Mio.
• Exclusive iPhone Carrier.
• AT&T is bringing it all together for our customers, from the
revolutionary iPhone 3GS to next-generation TV services and
sophisticated solutions for multi-national businesses.
Page 8

9. Verizon
US #1 Wireless company in terms of number of subscribers
• Main business areas
• Wireline, wireless, IP-TV, Broadband
• 1H09 total revenue $53.5, wireless revenue $23 (
42% of total)
• 34 Mio Wireline Subs
• 85.2 Mio Wireless Subs
• 9 Mio Broadband Subs
• 2.5 Mio FiOS ( IPTV ) Subs by Q209 Results.
• Verizon Wireless is on schedule to offer the first
commercial LTE-based service in the U.S. in 2010
• Against iPhone AppStore, Verizon Wireless to launch
VCast Application Store in Q409.
• Microsoft Advertising for online and mobile Verizon Ad
Inventory.
• Vodafone ownership on Verizon 45%
Page 9

10. Sprint
• Main business areas
• Wireless, wireline
• 48.8 Mio Wireless Subs
• First and only 4G Network
• Successful launch of Palm® Pre™
• Bought Virgin Mobile to increase the number of prepaid
subscribers, Continued momentum in prepaid with Boost
Unlimited
T-Mobile
• Main business areas
• Wireless
• 33.4 Mio Wireless Subs
• Joined Google to form Open Handset Alliance.
• Ownership: T-Mobile International AG (Deutsche
Telekom)
Page 10

11. US Advertising Market
Advertising Market
•Total measured advertising expenditures in the first six
months of 2009 fell 14.3% versus a year ago, to $60.87
billion.
•Internet display (+6.5%) and FSI’s (+4.6%) were the
only media to achieve expenditure growth in the first half
of 2009
•Automotive, Telecom, Financial Services are the top
three advertising categories.
Mobile Advertising Market
•Ad networks are the major players in the ecosystem.
•Display+search advertising in mobile internet are the
popular revenue generating products.
•CPM and CPC are the popular pricing models for display
advertising.
•eMarketer estimates that mobile ad spending, including
messaging-based formats, will reach $416 million in 2009,
increasing to $1.56 billion by 2013.
Page 11

12. US Mobile Advertising Market
Marketing Planning/Buying
Agencies plans brands’ mobile
advertising media/campaign plan
and strategy.
Carriers create mobile internet portals
and integrated with Ad networks to
get mobile advertising revenue.
Brands spend mobile
advertising budgets to
reach customers.
Solution providers
create mobile advertising
campaigns, banners and
mobile internet sites for
brands.
Ad networks integrated with
mobile internet sites to sell
their inventory and give them
revenue sharing.
Subscribers see banners and click!
Illustration Source: Michael Becker, iLoop Mobile Inc.
Page 12

13. US Mobile Advertising Market - Ad Networks
Unique Visitor* / Impression Monthly Major Publishers
45.6 Mio / 3.5 Billion
28.6 Mio / 1 Billion
25.7 Mio / 4.8 Billion
25.4 Mio / N/A
23.4 Mio / 2.3 Billion
*Source: Nielsen Mobile Media
Page 13

14. AT&T Advertising
Converged Services: Bringing Three Screens to Life
Page 14

15. AT&T Advertising
• Three Screen Advertising Strategy
• Mobile: AT&T Wireless
• TV: AT&T U-Verse
• Computer: AT&T Broadband
• AT&T Advertising products;
• Yellowpages (Publishing/Web/Mobile/iPhone)
• MediaNet Mobile Portal
• MediaMall, att.net web portals
• U-Verse IP-TV
• Wi-Fi Advertising
• Q209 Advertising Revenue (Online+Publishing) $
1,231 as 4% of the total revenue, Yellowpages.com
Revenue $218 Mio as 18% of the advertising
revenue.
Page 15

16. Turkey
Page 16

17. Turkish Wireless Market Facts
• Population: 72 million (2nd largest in Europe)
• 25% < 14 years of age (Youngest in Europe); average age is 28
• Mobile penetration : 89% Broadband Internet penetration 38%
• 3G by July, 2009.
• Prepaid dominant market (≈76%)
• Only three players market:
• Turkcell 57.1% (36 Mio) , Blended ARPU $12.92
• Vodafone 23.4% (15 Mio), Blended ARPU $ 9.44
• Avea 19.6% (12.5 Mio), Blended ARPU $11.37
• Mobile number portability by November, 2008.
Page 17

18. Turkish Wireless Market Carriers
• Second largest operator in Turkey with 23.4% market share and 15 Mio
subscribers.
• Exclusive iPhone carrier. (with Turkcell)
• Held by Vodafone Group PLC in 1994 operating in 31 countries with
315,3 Mio subscribers as the biggest wireless comm. company in the
world.
• Vodafone Turkey Mobile Marketing Activities;
• Vodafone Turkey Mobile portal display advertising
• Co-branding campaigns with major brands
• Text-Win/Credit-Airtimes campaigns with major brands.
• Please Call Me SMS service advertising
• Third largest operator in Turkey with 19.5% market share and 12.4 mio
subscribers.
• Established in 2004, 81.37% share is owned by Turk Telekom as the
biggest and only wireline company in Turkey. ( Pre-owned by the
government)
• Aiming to offer wireline+wireless bundles.
• Avea Mobile Marketing Activities;
• Avea Mobile portal display+search advertising
• Co-branding campaigns with major brands
• Text-Win/Credit-Airtimes campaigns with major brands
Page 18

19. Turkcell Group: Leader in the region
Operations in
8 countries,
62 M subscribers
Belarus
Ukraine
Kazakhsta
Moldova n
Georgia
Turkey Azerbaija
n
Northern Cyprus
Page 19

20. Turkcell is A Player in the Forefront
Turkey’s leading provider with 37 million subscribers. Europe’s
2nd and the world’s 13th largest operator in terms of subscribers
*
First and only Turkish company listed in the New York
Stock Exchange
Most admired company and most valuable brand in Turkey
First and richest PERM DB reaching 8.2 mio
Tone&Win selected as Best Mobile Advertising
Service in GSMA, 2009
(* Sep 30, 2008)
Page 20

21. Turkish Mobile Advertising Market
Marketing Planning/Buying
Agencies /
Mobile Marketing Agencies
plans brands’ mobile
advertising media/campaign plan
and strategy.
Carriers are the major players in the
ecosystem creating mobile marketing
and advertising products such as display
banner, text&win, credit&airtimes,
ringbacktone advertising products.
Brands spend mobile
advertising budgets to
reach customers.
Solution providers
create mobile advertising
campaigns, banners and
mobile internet sites for
brands. Also act as solution
provider,
Ad networks integrated with
mobile internet sites to sell
their inventory and give them
revenue sharing. Turkcell is the
major ad network in the ecosystem
integrating itself with 3rd party
WEB/Wap sites. Subscribers are participating to
mobile marketing&advertising campaigns.
Illustration Source: Michael Becker, iLoop Mobile Inc.
Page 21

22. Turkish Mobile Advertising Market
• Operators (mainly Turkcell) and mobile marketing agencies are the major players in the
market.
• Operators create mobile advertising and marketing products such as;
• Display advertising in WAP/WEB
• Ringbacktone advertising (Turkcell)
• Permission database (Turkcell)
• “Please Call Me” (Vodafone)
• Sponsored Credit&Airtimes campaigns #1 in terms of revenue.
Turkcell Mobile Marketing Metrics of 2009
• 713 projects, 431 brands, 30 industries
• Database reached 8.2 million. ( Europe’s largest)
• More than 21 million customers have participated.
• Co-founder in MMA EMEA Board (2007-2011) and Active member of GSMA Mobile Advertising
&Metric Committee ( 2008-2010)
Page 22

23. Turkcell Mobile Marketing Timeline 3G
Affiliate
New Ad Media
Product and Project Wap Banner Sponsorships
2009
Development Co-Branding 22 Product
2008
MM Emp: 14
Permission Based
650 Camp.
Marketing 2007 16 Product
Digital Content
Campaign 2006 370 Camp. MM Emp:
9 Product 12
Credits/Airtimes 296 Camp. MMA: 22
2005 MM Emp: 9
Campaign 8 Product
MMA: 15
167 Camp. MM Emp:
2004
3 Product 5
Sweepstakes MMA: 12
Campaign 78 Camp.
2003 MM Emp: 2
2 Product
MMA: 8
2002 Project Group Revenue & Ecosystem
MMA: 4
Development
new and alternative Interactive media with the
enabler highest response rate and
media measurability
Page 23

24. Turkcell Mobile Marketing Products
Display & Ad-funded
Mobile Advertising Sponsored Advertising
Infotainment
BULK SMS/MMS
Packages
SMS/MMS
Web /Wap
Banner
SMS / Wappush
MMS Tone&Win
Mobile Ticket
IVR
Video
Sponsored
Interactive Credits/Airtimes
Menu
Perm DB
Targeted LBS
Advertising Content
Mobile Survey Mobile
Augmented Campaign
Reality User Text&Win
Generated
Content
Page 24

25. 1- Campaign Tools
• Text&Win
• Sponsored Communication ( Credits & Minutes )
• Sponsored Content
• User Generated
2- Advertising Media
Permission Based Ad funded Direct
Online Display
Marketing Content Marketing
• Web Banner • SMS-Wappush • Weather • BULK SMS /MMS
• Wap Banner • MMS • Finance
• Text Link • IVR • Lottery
• Thumbnail • Mobile Ticketing • TonlaKazan
• Interactive Menu • Sponsored SMS
• LBS
• Video
Page 25

26. Nestle Chocolate Text&Win Campaign
•Campaign Dates: 02.02.2009 – 15.03.2009
•Scenario: Buy Nestle Chocolate, Win 10-20-40 TL Garanti Cash
Money!
•Other Media: TV, web and POP, outdoor
Page 26

27. Pepsi gnctrkcll Credits/Minutes New Year Campaign
•Campaign Dates: 09.12.2008 – 28.02.2009
•Scenario:
•Sure win campaign
•Every “Pepsi Can” offers 5 credits/ 2 minutes.
•Win 2009 credits/ 500 minute every hour.
•Response rate:
•Largest participation of all times.
•Other Media: SMS, MMS, USSD, e-mailing and TV communication
Page 27

28. Online Display Advertising Products - WAP
Interactive mobile advertising medium…
• Up to 35% CTR, Avg 11% CTR
•2.5 mio distinct visitor
•90 mio impression/mnt (MSN Turkey 250 mio impression/mnt)
•Campaigns with +100 brands
 Data collection / request  Download
 Click-to-call  Inform / divert
Page 28

29. Online Display Advertising Products - WEB
Interactive advertising medium…
•+300 mio impression/mint
•3.5 unique visitors
•Integration with other portals;
•Web/Wap portals
•IPhone applications
Page 29

30. Permission Based Marketing
• 8.2 mio opt–in subscribers by August 2009
• Response Rate: %5 - %25
Targeting Criteria
TARIFF
Kampuscell, Gnctrkcll, İştecell
LBS
USAGE DATA
MMS, SMS, Roaming
SMS/Wappus Java, Call Type, Wap
IVR h
DEMOGRAPHIC
Age, Sex, Occupation
Video
INTEREST
Mobile Internet, Car Ownership, Music
Ticket Finance, Sport, Technology
LOCATION
Dynamic, Static, Regional
Socio Economic Status
Interactive MMS
Menu
Campaign Behavior
Page 30

31. Permission Based Marketing – Mobile Survey
Response Rate: 3.7%
Vision: Participation: 320
Total Duration: 2 Days
• To lead a new focus on Market Research.
Benefit for Brands:
• Market Research in “Top Speed”
• No Operational Costs
• Targeting
• Real – Time Reporting
The Scenario:
• SMS – Push
• Text – Image – Video – Flash on
MobileSurvey Platform
• Survey Questions
• Report & Analysis
1. Do you find the advertising film interesting?
2. Would you watch it again if you saw it on TV?
3. Would you consider to have a desired picture as you
plan to have a new credit card?
4. Did you want to have a Flexi Card after watching this
advertising film?
5. Did you talk to your friends about this film and the
features of the Flexi Card?
Page 31

32. Permission Based Marketing - Cycle
Customer
Data
•Transaction
•Usage Data PERM DB
Knowledge •Demographic Data collects required
Database •Interest Collection subscriber data.
•Location
•SES
Define Define brand
ROI & Return Collect
Target target group
Rates Response
Group using Turkcell
data.
Find the SMS, MMS,
Create&Deliver
Create Right Wappush,
Campaign
campaign Channel Mobile Ticket,
based on IVR etc.
budget.
Page 32

33. Ad funded Content: Sponsorships
Goolcell Sponsorships ( CBC ) Ad-funded Packages
•Sponsorship msg to the beginning and end •Weather Package: 2.000K
of the games
•Finance Package: 350K
•REACH 8.5 Mio subscribers •Lottery Package: 300K
26.11.2008 17:01 IMKB
FB-GS match
Istanbul Thur: 24409 USD
is at 20:00 on
7/9 Rainy, 1,594 EURO
the sports
Friday 10/11 2,062 GOLD
channel.
Cloudy 41,42
Is your Pepsi
Stay at Enter&Win
ready? Game
home? Enjoy wap.isbank.c
begins!
Pepsi Max! om.tr NOW!
Page 33

34. Ad funded Content: Tone&Win
World’s First RingBackTone Advertising Platform
• Best mobile advertising service of the year, GSMA, Visiongain
and Meffy Awards 2009
• +1.000.000 Members
•Reaching 15 Mio/month subscribers
•Creating 200 Mio/month inventory
•+50 brands, 72 campaigns in 2008.
Page 34

35. Ad funded Content: Sponsored SMS
Sponsored SMS ( WebtoPeer )
•Aim to increase web site traffic
•Send daily free X SMS
Sponsored sms received
•WOMM effect
•Subscriber Message Length + Ads = 160 Characters
Pop-up screen for SMS
Interface
Link to a web site
Page 35

36. Adinaction Adserver
iPhone, Android
Applications
Video RBT
Ad Networks
Mobile Survey
WEB/WAP
Sites
Mobile TV
TıklaKazan
TonlaKazan
Page 36

37. Thank You
Page 37