Alcatel-Lucent Optism™ Mobile Advertising Solution

SOLUTION | RELEASE 1.0

• Leverage network assets to offer a unique mobile advertising service for subscribers • Turn subscribers into audiences by enabling them to opt into meaningful conversations with their favorite brands • Maximize the value and reach of your advertising inventory through aggregation with other mobile operators • Demonstrate leadership by being an early adopter of a dynamic new market opportunity

The Alcatel-Lucent Optism Mobile Advertising Solution enables you to play a significant role within the mobile advertising ecosystem. It enables you to offer brands the ability to deliver advertising to your subscribers through relevant interactions that fit their lifestyles. Because advertising is based on subscribers’ stated permissions and preferences, it is relevant and fits their lifestyles. Advertising inventory is aggregated across multiple mobile operators to provide the kind of scale valued by advertisers and marketers. Through its media arm, Alcatel-Lucent manages the relationship with media agencies on your behalf so relationship gaps are resolved, clearing the way for you to become a full participant in the mobile advertising value chain.

As a new business model, the Alcatel-Lucent Optism Mobile Advertising Solution goes beyond simply providing technical capabilities to offer you go-tomarket support, and media sales and campaign support to advertisers. Brand communications are delivered via interactive SMS and MMS messaging. The solution offers you an innovative way to grow revenues by improving subscriber experiences. The Optism Mobile Advertising Solution serves the needs of three distinct groups: • Mobile Operators — by enhancing the value of your media inventory, so you can become a full participant in the mobile advertising value chain. The Solution creates responsive and targeted, high-reaching media that is particularly valued by advertisers. The media is then made readily available to advertisers. • Brands, marketers, media buyers and sellers — by providing access to a highly responsive, scalable and effective dialogue media that is permissionand preference-based and can be targeted to specific user profiles. Media buyers and sellers access a simple interface for booking campaigns and receiving consistent reporting. A single entry point provides access to the inventory of multiple mobile operators. • Subscribers — by providing them with valuable information and offerings from the brands they are most interested in, while enabling them to retain control of their personal information and preferences. Subscribers' privacy is always safeguarded.

The Optism Mobile Advertising Solution encompasses everything you need to participate in the growing mobile advertising opportunity. It establishes a global ecosystem that connects you with media agencies, advertisers and marketers. This in turn enables advertisers and marketers to connect with your subscribers and engage them in relevant conversations with the brands that interest them. Each member of the ecosystem shares in the revenue generated from the mobile advertising opportunity.

Figure 1. The Alcatel-Lucent Optism Mobile Advertising Solution

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Alcatel-Lucent OptismTM Mobile Advertising Solution | SOLUTION | RELEASE 1.0 | Solution Sheet

Functional architecture
At the heart of the Alcatel-Lucent Optism Mobile Advertising Solution, is a hosted advertising platform that connects directly into your network, enabling advertisers to easily book campaigns across multiple operators. The platform relies on a scalable, open architecture with a plug-and-play approach for mobile operators. It consists of several functional blocks. • IT & Security — The VPN tunnel connecting your network to the platform via the Internet is protected against unauthorized use of your information and network resources. • Ad Delivery Server — Pre-integrated Alcatel-Lucent SMS and MMS gateways and ad delivery adaptors simplify the integration of your infrastructure with the Solution platform and reduce the traffic load generated by dialogue messages. • Media Inventory Booking Tool —Media agents use this tool to book campaigns according to the geographic region and specific audience segment they want. • Campaign and Inventory Manager — Media sellers use this tool to build different types of campaign templates. This tool also tracks what is being purchased and when, so Alcatel-Lucent can ensure the traffic load imposed on your network stays within bounds.

• Reporting and Invoicing — For media sellers, the Solution generates a report detailing the performance of a completed campaign, which is sent along with an invoice for the campaign. You also receive a report of any activities reaching your subscribers.

• Dialogue Manager and Ad Selection Server — A scripting tool that enables advertisers to build messaging dialogues with the subscriber. The Ad Selection Server can also be integrated with your applications to create a targeted ad for a given purpose.

Solution features
Solution feature
• Partnership with media agencies

Value to Mobile Operator
• The Alcatel-Lucent media arm undertakes the media selling function and manages media agency relationships, which solves the gaps between you and the media industry that are currently inhibiting your opportunities in this business. • The Alcatel-Lucent approach makes it easier for you to participate by removing complexity and greatly limiting the financial risk you would traditionally face when implementing a new service (no CAPEX is required and only minimal OPEX). Also, aggregating your advertising inventory (or ad space) with other mobile operators at the country or market level creates the kind of reach advertisers need for effective campaigns. • Because the subscriber preferences are regularly updated, the advertising that is sent to them is more relevant. This relevance directly impacts the revenue potential from the business. • When combined with permission and preferences, this approach provides a better response rate, which further increases the value of the media to advertisers and marketers and thus the media’s revenue potential.

• Revenue-sharing business model

• Dynamic subscriber permission and preferences management

• Highly responsive, scalable, effective dialogue media based on SMS/MMS messaging

Alcatel-Lucent OptismTM Mobile Advertising Solution | SOLUTION | RELEASE 1.0 | Solution Sheet

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Solution benefits
Mobile operator challenge
Increase advertising revenues

How we address the challenge
• Permission- and preference-based advertising • Focus initially on SMS/MMS-based dialogue media messaging format, which has the potential of yielding high returns

Advantages of the Alcatel-Lucent approach
• Focuses on creating high-quality media (highly targeted, engaging format with wide reach), versus lower value ad space (WAP banner, SMS push); GroupM/WPP research has shown that the value can be up to seven times higher. • Model endorsed by GroupM and MediaCom, WPP companies. WPP is, among the top three media agencies worldwide

Get ad space known and used by media planners

• The Optism Mobile Advertising Solution builds commercial relationships with brands and media agencies on behalf of mobile operators • Permission- and preference-based advertising

Ensure subscriber privacy and avoid spam Minimize risk associated with entering a new business

• Captures explicit subscriber permission and preferences • Updates permissions regularly to keep subscriber data current • Minimal financial risk (no CAPEX, low OPEX) • Removes complexity for the mobile operator • Aggregates your inventory with other mobile operators to maximize reach and value • Enables fast time to market

• Adopt a revenue-sharing model

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Alcatel-Lucent OptismTM Mobile Advertising Solution | SOLUTION | RELEASE 1.0 | Solution Sheet

Learn more
The Alcatel-Lucent Optism Mobile Advertising Solution is one of a portfolio of solutions designed to help mobile operators and other service providers deliver a personalized, anywhere, anytime, multi-screen experience to their subscribers. Alcatel-Lucent multimedia solutions help service providers create value through innovative business model relationships with the advertising and content industries. The Optism Mobile Advertising Solution is also part of a larger application enablement strategy being pursued by Alcatel-Lucent. The Solution gives you the opportunity to securely expose your infrastructure assets including mobile data, messaging, billing, mobile payment, video and location information to advertisers, in order to create new business models and generate additional revenue. For information on Alcatel-Lucent Advertising Solutions, visit: www.alcatel-lucent.com/advertising For information specifically related to the Optism Mobile Advertising Solution, visit: www.alcatel-lucent.com/mobileadvertising

www.alcatel-lucent.com

Alcatel, Lucent, Alcatel-Lucent and the Alcatel-Lucent logo are trademarks of Alcatel-Lucent. All other trademarks are the property of their respective owners. The information presented is subject to change without notice. Alcatel-Lucent assumes no responsibility for inaccuracies contained herein. Copyright © 2010 Alcatel-Lucent. All rights reserved. CMO2023100407 (04)

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