How Boost Mobile's Ad Blitz Is Paying Off At AT&T And T-Mobile's Expense

By Default on January 13, 2013
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How Boost Mobile's Ad Blitz Is Paying Off At AT&T And T-Mobile's Expense

Bouyed by a TV and social media-centric ad campaign, Sprint’s Boost Mobile prepaid phone service attracted about 930,000 new customers in Q2. And by the looks of some new data from Compete, Boost’s user base is going to continue to grow — at the expense of the prepaid options currently offered by AT&T (NYSE: T) and T-Mobile.

While prospect traffic — or unique visits from non-customers — to sites in the prepaid market (including Boost, GoPhone, VZW Prepaid, ToGo, Tracfone and Virgin Mobile (NYSE: VM) USA) is up 12 percent year-over-year, Boost’s traffic is up 185 percent. That growth appears to have come directly at the expense of AT&T and T-Mobile’s prepaid sites, where traffic was down 18 percent and 12 percent, respectively.

So will new ad campaigns help AT&T, T-Mobile and the other service carriers win back some of their traffic (and ultimately, prospective customers) from Boost Mobile? They can if they’re multi-platform, and if they focus on promoting the functionality of their prepaid phones, according to Compete. The company surveyed over 450 prepaid mobile shoppers, finding that 36 percent of them wanted phones with more functionality. “They need to offer more advanced, feature-rich phones at reasonable prices to ensure that their customers can take advantage of these new plans,” writes Compete’s Danielle Nohe.