Ad-Funded MVNO, Blyk Expands in Europe
UK based MVNO, Blyk has announced its next wave of European expansion into Germany, Spain and Belgium in 2009, following its announcement to enter the Dutch market earlier this year. Blyk operates an ad funded model of offering a quantity of free calls and texts to teenagers in exchange for sending adverts to their mobile phones.
To date, Blyk says that it has run over 900 campaigns in the UK for brands such as Coca Cola, STA Travel, Penguin, Buena Vista, L’Oreal and music artists The Kooks and Alphabeat with an average response rate of 29 percent, an extremely high level for any media platform. For example, Penguin’s campaign to promote Nick Hornby’s new novel, saw 7 out of 10 members engage with the publisher in a dialogue.
In addition to Blyk’s European expansion plans, the company will continue to strengthen its services in the UK through more members and brands. By the end of the year, Blyk’s aim is to boost the number of brands using Blyk to 200 by the end of 2008.
Blyk’s CEO and Co-founder, Pekka Ala-Pietilä said, “There is a great opportunity for Blyk in these markets. Our research shows that young people in Germany, Spain and Belgium are interested in the Blyk proposition because they want to interact with brands they like in exchange for free communication. Our success in the UK, illustrated by robust member adoption, has proven that Blyk is a youth media that works and we hope to replicate this success as we enter new countries. We are also working to attract local talent who share our enthusiasm and can help build Blyk into a significant youth media in other countries.”
Blyk will make further announcements related to activities in each of these countries in the near future.
The company currently uses Vodafone to host its MVNO in the UK, and has selected Orange to manage its planned network in the Netherlands.
In January, Investment bank Goldman Sachs and Kuwaiti IFIC took an undisclosed
stake in the company, which already has funding from Sofinnova Partners and
other private investors.
Posted to the site on 25th June 2008