Until recently, mobile pre-pay pricing deals have appealed mainly to adults with credit problems or no bank account, and children. However, as the economic climate worsens, consumers in other demographics are also beginning to turn to such propositions as they, too, find themselves short of cash.
Last week, Sony Ericsson's UK marketing manager Dave Hilton revealed that the handset manufacturer is dedicating more of its marketing budget to the pay-as-you-go (PAYG) market.
Mobile network Orange has followed suit by extending its 'animals' tariff packages to the pre-pay sector to target customers tempted by the flexibility of PAYG. Meanwhile, O2 customers can sign up for the network's 'Simplicity' flexi-contracts, which allow consumers to bypass the added cost of a handset up-grade, and change tariffs or even cancel their deal at any stage with only 30 days' notice, without incurring any extra costs. Vodafone runs a similar deal called SIM Only.
At the end of March 2008, Orange had 15.7m active mobile customers. More than 10m were on PAYG, and 5.7m on pay monthly.
O2 is the UK's biggest mobile network in the pre-pay sector. It had 11.4m PAYG customers in the first quarter of 2008, compared with 7m on pay-monthly.
Vodafone has a total of 18.4m consumer and enterprise customers; 60% of its consumer business is PAYG.
How will the influence the ads we are creating? More DR and less creative?
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