Blyk is a European MVNO (Mobile Virtual Network Operator). A MVNO is a mobile operator that does not own its own spectrum and its own network infrastructure, but have business arrangements with mobile operators to buy minutes of use (MOU) for sale to their own customers.

They describe themselves as a “mobile network for 16 – 24s that’s funded by advertising” and they’re currently active in UK only (although they’re planning to start their activity in Netherlands, Belgium, Spain and Germany.

Blyk’s appearance reveals the great progress ans development that the mobile marketing has recently done. The ad-based business model was converted from the web to the mobile world and with the development of “3rd generation” mobile phones smart phones, it is going to become much more popular and profitable.

So what’s Blyk all about? Basically, they give 16-24 old teens free text messages and free minutes in exchange to the right to send them very targeted and interactive advertisements. Why targeted? because each user, when signing up to Blyk, fills his own preferences and favorite brands, therefore Blyk is able to be more specific and efficient. So Blyk makes around 2/3rd of its revenue from advertisers and 1/3rd from users.

Meantime, the teens’ response rate seems to be higher than expected and the number of new users is increasing. This impressive increase can be explained by the attractiveness of this business model, a thing that can be changed really quickly. Also, the financial crisis these days can make advertisers decide that they cut their advertising budgets, and it is reasonable to assume that the mobile advertising budgets will be the first ones to cut.