The campaign features exclusive money-saving deals from well-known UK brands such as House of Fraser, BHS, HMV and Café Rouge.
Created by VCCP, the TV ad features someone walking through the streets during the festive season holding up their Samsung smartphone, which displays all the deals available to them via O2 Priority Moments.
Zenith Optimedia handled the media buying with below-the-line communications by AIS. VCCP's creative director Darren Bailes was behind the campaign alongside copywriter John McLaughlin and art director Jonny Parker. The TV ad was directed by 1st Avenue Machine.
The campaign will run for four weeks across TV, outdoor, press and social media.
Sally Cowdry, marketing and consumer director at O2, said: "We know that in the current financial climate this Christmas will be tough for everyone and so being able to offer money saving offers and experiences is a great way to help our customers make the most of the festive season.
"The advertising campaign includes TV to create mass awareness but as Priority Moments is a location based mobile service outdoor advertising will also be key."
O2 customers can download or access Priority Moments through their phones or text Moments to 2020 to register. However, O2 customers can only download the app if they have an up-to-date smartphone such as the iPhone 4s.
Follow Sara Kimberley on Twitter