Sponsored data and data rewards offer a strong win-win-win opportunity for mobile operators, sponsors and the right user segments, says Strategy Analytics.
According to the prominent firm’s newest report — “Can Operator Collaboration On Sponsored Data Lead to Success?” — while initial prominent launches of sponsored data offerings by AT&T, Verizon Wireless, and Telefonica caught attention in the last few years, sponsored data is still at an early stage and Communication Service Providers (CSPs) around the world have been grappling with how to adopt and grow sponsored data offerings.
As for challenges and noteworthy developments, here’s what the organization tells us in a provided report summary:
Challenges: Fragmentation of operator offerings has limited early stage growth and awareness among brands and other sponsors, while increased size of data bundles in mobile service and widespread availability of Wi-Fi in some countries has raised doubts among operators in many advanced data markets as to the perceived value of sponsored data for consumers.
Developments: The sponsored data ecosystem is progressing with additional value creation with analytics and feedback loops for campaigns and collaborative efforts focused on ease of onboarding for CSPs and sponsors. This can be seen in Catalyst activities at the TM Forum that involve Orange, Datami, Comptel (now part of Nokia), Sigma, cloudsense and cloudstreet, as well as collaboration between Syntonic and Tata Communications for a cross-operator sponsored data exchange model. The recent acquisition of sponsored data/data rewards pioneer Aquto by Mavenir showcases the value CSPs and their vendors see on new types of monetization opportunities.
“Strategy Analytics estimates mobile advertising revenue reached US $80 Billion at the end of 2017,” says Nitesh Patel, Director of Wireless Media Strategies at Strategy Analytics. “Sponsored data should be considered as part of a broader advertising strategy to position CSPs as an alternative destination to big web scale companies like Google and Facebook for mobile advertising dollars. Raising awareness and providing proof points of the results that can be achieved by brands with sponsored data campaigns in each market and for specific use cases remains important—we encourage CSPs to work together and with associations to increase awareness of the benefits of sponsored data and data rewards.”