The proposition will be made possible through Blyk's partnership with Orange in a wholesale network deal - allowing the ad-network to use the UK mobile giant's infrastructure to enable its customers to make calls, send messages and access the mobile internet.
Blyk says it will work closely with its advertisers to pioneer usage of creative ad formats and profiling systems. The network also claims that the impact of the campaigns will be tracked in real time, allowing advertisers to view, assess and adjust their activity.
The news comes hot on the heels of a survey by Q Research that revealed 82 per cent of 11 to 20-year-olds would happily receive advertising messages on their mobile phone in exchange for top-up credit.
Julian Smith, insight and research director at media agency MEC Interaction, says: "This research is very welcome as it provides useful insight into the elusive youth audience. These users have an intimate relationship with the mobile phone, so push advertising messages need to be tightly targeted - more so than with any other channel - and it's vital to stick to the rules of right person, right place, right time, right offer."
The scheme has already attracted a host of high-profile brands, including Buena Vista, Coca-Cola, I-play Mobile Gaming, L'Oreal Paris, StepStone and Yell.com mobile. A Coca-Cola spokesperson says: "Mobile will become increasingly important as the consumer experience becomes richer. It's an interesting opportunity to engage with audiences who totally control the media. We will have to offer value, either emotionally or rationally, to justify 'being in their pocket'. It's really exciting to embrace this new approach."
Perfect fit
Meanwhile, Dave Mutton of Stepstone.com, says Blyk is the perfect fit for its brand. "Blyk is targeting our ideal age group and also we like to be seen as innovative. It's just a logical extension of the web model, free content funded by ads."
UK mobile internet providers have yet to offer a transparent, clear-costed option.
Antti Ohrling, a co-founder of Blyk, says: "Two out of three in the target group currently use the mobile internet once a month or less. Why? Because they don't know how much it costs. Mobile communication should be based on push, not pull. There's scope with mobile users to find out their preferences and provide highly relevant ads. We asked what users liked and disliked about mobile ads and they were happy to accept them if they were relevant enough."
This has always been a bone of contention with the mobile marketing naysayers. So, kids sign up to receive ads so they can call for free - but who's to say they'll actually want them or read them? Craig Massey, head of mobile at Glass, thinks they will.
He says: "They will be able to get a good angle on their data as they will have a detailed profile database. The main advantage for Blyk in doing this is that they won't waste money in communicating to the wrong people as they will still be bound to pay Orange per message, even at wholesale prices. Blyk will have a lot of brands signing up on a 'suck it and see' basis and make long-term decisions based on the eventual take-up and focus group feedback."
Massey insists that the UK market has, thus far, been starved of a decent mobile internet option. "Vodafone charges 25p per five page impressions on the mobile internet. However, over five pages and it jumps immediately to £1 a day, which is pretty steep," he says. "Networks appear to be doing everything to put users off actually engaging with the mobile internet."
This year Blyk asked 16 to 24-year-olds: "What would make you change your network?" About 60 per cent cited the cost of the network, while 77 per cent said they would definitely or almost definitely change to Blyk when it's launched."
There's no question that an entirely free network has the potential to cause ruptures in the notoriously competitive and fickle UK mobile market. Certainly, it will give users, and advertisers, a greater choice.
"It's fantastic because at least this way users have a financial incentive to browse the mobile internet. Networks have been shambolic, not encouraging usage of the mobile internet with opaque and expensive pricing, no realistic payouts for content providers and, therefore, not enough choice of services."
But, as Revolution went to press, mobile network 3 unveiled its new unlimited mobile web access package for £5 a month and it's likely that the new offer will prompt a raft of competitor packages from rival networks.
Free services
"The younger generation uses Google, MySpace and other free services - free services are the future for mobile applications," adds Ohrling. "It's a tricky audience with less fixed patterns, going increasingly online and watching less TV. Advertisers are looking for new ways to reach this audience."
But it's the content that will be crucial. When venturing into a space as personal as the mobile, more than ever the ads will need to be not only relevant but engaging. The Q research findings also revealed that young people would prefer picture advertising messages on their mobile phones, as opposed to static text. Massey agrees: "It's down to us to make sure we create interesting stuff so consumers are not bored or irritated."
It's no surprise that sponsored calls and services by operators in exchange for advertising looks set to be a hit with kids on a limited budget, but the big question that Blyk poses is: where next? Can we expect to see this model explode into other, older, segments of society? Only time will tell.
"In this industry, it's the customers who decide which way the business goes. This is a segment that really needs to be explored," says Keith Green, head of wholesale at Orange.