As mobile marketing continues to evolve, the concept of sponsored data is gaining traction as a key driver of growth and revenue for communication service providers (CSPs). In a report titled "Can Operator Collaboration On Sponsored Data Lead to Success?", market research firm Strategy Analytics highlights the potential of sponsored data to revolutionize mobile marketing beyond traditional players like Facebook and Google.
Challenges Remain
Despite initial success stories from major CSPs like AT&T, Verizon Wireless, and Telefonica, the sponsored data ecosystem is still in its early stages. One of the main challenges facing CSPs is fragmentation of their offerings, which has limited awareness among brands and other sponsors. Additionally, concerns over the perceived value of sponsored data for consumers have led some operators to question its relevance in advanced data markets.
Developments and Opportunities
However, the sponsored data ecosystem is making progress with the addition of analytics and feedback loops for campaigns. This collaboration among CSPs, vendors, and industry associations has created opportunities for ease of onboarding and value creation. For instance, recent collaborations between Orange, Datami, Comptel (now part of Nokia), Sigma, cloudsense, and cloudstreet demonstrate the potential for cross-operator sponsored data exchange models.
Call to Action
To drive growth and adoption, Strategy Analytics recommends that CSPs focus on raising awareness among brands and end-users about the benefits of sponsored data. This includes providing proof points of successful campaigns and showcasing the value proposition for both CSPs and sponsors. By working together and with industry associations, CSPs can position themselves as alternative destinations for mobile advertising dollars, creating new revenue streams and growing their business in sectors like mobile advertising.
The Future of Mobile Marketing
According to Strategy Analytics, mobile advertising revenue reached a staggering $80 billion at the end of 2017. As the market continues to grow, sponsored data offers a unique opportunity for CSPs to evolve their business and create new revenue streams. By embracing this concept, CSPs can position themselves as key players in the mobile marketing landscape, providing an alternative to big web-scale companies like Google and Facebook.
About Strategy Analytics
Strategy Analytics is a leading provider of market intelligence and advisory services for emerging technology, mobile and wireless, digital consumer, and automotive electronics companies. With offices in North America, Europe, and Asia, the company delivers actionable insights for enterprise success.