But there are some options mobile carriers might want to consider to help keep their subscribers’ data plan bills more manageable, and keep their customers happier. One way to allow for that is by introducing sponsored data charging programs.
Sponsored data charging programs are an effective way mobile carriers can help their subscribers justify the cost of connectivity, while growing their own user bases and expanding their ecosystems to include more application providers and marketers. That’s the word from Barbara Sampson, senior marketing manager for policy and charging PLM marketing, and Thomas King, manager of the policy and charging portfolio, at Alcatel-Lucent. The two wrote a recent TechZine posting, Operators benefit from sponsored data charging, that details how mobile operators can prosper with these types of programs.
Such programs, Alcatel-Lucent calls them Smart Plans, enable mobile subscribers to enjoy connectivity without being charged for it on their monthly plan.
There are various models of sponsored data charging. The zero rating model, for example, has an application provider or other third-party pay for subscriber data consumed by the specific app or service. A second example would involve a marketer providing a subscriber with a data reward for making a mobile purchase or trying a new service.
However, introducing these kinds of new options involves a bit of work on the billing front. That’s why Alcatel-Lucent and Aquto have joined forces to address sponsored data charging. The partnership involves Aquto leveraging Alcatel-Lucent’s SurePay platform with its own monetization platform to enable mobile carriers to support sponsored data models.
Aquto offers both cloud-based sponsorships to enable data rewards and zero rating, and a service provider user-engagement application option, which provides a destination at which subscribers can discover apps and services and get advertiser offers for data rewards and/or zero rating.
A huge benefit here is that operators can build service plans that give customers visibility over all of the devices that us data plans which enable them keep track of usage and let them top off their accounts wherever they may be. Mobile service providers can thus not only obtain news revenues from sponsors but are positioned to provide customers a more compelling and understandable user experience.
]]>“We know that there’s a new market and new problem here to solve,” said Mike Schabel, senior vice-president of small cells for the wireless division at Alcatel-Lucent. “To handle the expected volume, we would need to significantly increase the number of cell towers used in the network. So we made [base stations] smaller.”
Small cells represent the future of the network for operators. They are cheap, easy to deploy, and can be adapted to deliver the right amount of coverage for an area of heavy use.
Each outdoor version of Alcatel-Lucent’s small cells can cover up to 600 meters and be integrated into bus shelters, sign holdings and other existing street furniture with minimal visual impact. Each small cell delivers up to 150 Mbps downlink per user, and supports roughly 200 simultaneous users.
Small cells interoperate with existing macro tower infrastructure, too, enabling mobile operators to mix the technology with their existing tower setup.
One challenge when it comes to small cells, however, is securing sites to install the necessary small cells.
Alcatel-Lucent has partnered with the world’s largest outdoor advertising firm, JCDecaux, to help make this part of the equation easier. JCDecaux has more than a million assets at more than 3,700 cities and 63 countries, including billboards bus shelters and other outdoor spaces where small cells can be placed.
We’ve been working with companies like JCDecaux to ensure a smooth, simple delivery in new spaces for the wireless industry, by retrofitting into existing street scapes,” noted Schabel.
Amsterdam is one example of the partnership put into practice. Vodaphone used the Alcatel-Lucent solution to dramatically improve coverage in the city of 2.5 million people.
“With Alcatel-Lucent and JDCecaux, we have successfully deployed the small cell technology in Amsterdam, enhancing the network quality of our infrastructure,” said Kevin Salvadori, Vodafone group technology strategy and operations director.
Mobile broadband use will keep growing for years to come. Operators need to ensure that they have the infrastructure to support the growth in demand, and small cells are one way to meet that need.
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New Service Provider Revenue Monetization Model
Just as LTE has evolved to be the predominant technology for mobile broadband providers -- generating an average data volume per user of 168% higher than 3G data – so must the traditional charging model change. One charging model growing in popularity is Sponsored Data Charging.
Sponsored Data Charging enables mobile subscribers to view, stream, and benefit from sponsored content and use applications over the mobile service provider’s network without that data usage coming out of their monthly plan. The data charges that a subscriber would pay for the sponsored content are paid instead by the third-party provider owning the content. Even more importantly, a subscriber can test out certain sponsored applications and features for a short time to determine whether to subscribe, without impacting monthly data-plan limits.
Not only is Sponsored Data Charging built for massive broadband usage from all kinds of connected devices, it also can support emerging technologies such as VoLTE and NFV. Key target industries include advertising, retail, media, entertainment, healthcare, and financial services.
How Does Sponsored Data Charging Work?
Sponsored Data Charging requires flexible charging and rating models. One example is zero rating, where an application provider or third party pays for subscriber data consumed by the specific application or service, as well as data rewards, where the users are rewarded with additional buckets of data to extend their data plans.
For example, a mobile app developer could pay the mobile service provider a negotiated rate so the subscriber can use the app without worrying about data usage and overages. Zero rating data supported by advertising is a variation of this type of data plan. Another example is where a marketer provides a customer with a data reward as a bonus for making a mobile purchase, trying out their service, or for lead generation. Depending on the use cases with third parties, the real-time charging system needs to ensure accurate charges to the sponsor rather than to subscriber accounts.
Sponsored Data Monetization Partner Ecosystem
Sponsored data programs are proving to be an effective method of both monetizing mobile data consumption and attracting new subscribers on a global basis. To take advantage of this growing opportunity, Alcatel-Lucent is collaborating with Aquto. The collaboration takes advantage of Aquto’s deep understanding of the digital marketing ecosystem and combines with Alcatel-Lucent’s policy and charging expertise and experience.
Using the Alcatel-Lucent SurePay® platform, Aquto enables mobile service providers to rapidly roll out data sponsorship programs including data rewards and zero-rating of mobile apps/content. As shown in the diagram below, the service integrates with the existing IT infrastructure and with minimal investment, enables the service provider to monetize almost immediately by leveraging a global network of sponsors, which includes app publishers/developers, advertisers, and marketers.
Diagram: Sponsored Data Monetization Platform [Source: Aquto]
Aquto offers two programs for mobile service providers: Cloud-based sponsorships and the service provider user-engagement application.
Cloud-based sponsorships: To enable zero rating of mobile content, or offer data rewards to users, app publishers/developers, advertisers and marketers can leverage easy to integrate capabilities to keep users connected with their content and services.
Service Provider user-engagement application: In an increasingly competitive market, service providers have to devise new ways to keep users engaged. It is a destination to discover apps and services, offers from advertisers through which users can experience the benefits of zero rating and data rewards. The app draws users in and provides operators with the opportunity to engage users in a positive setting.
This sponsored data concept is not just about free Internet. It is quickly presenting itself as a vast opportunity for service providers to tap into a growing mobile ecosystem that is made up of app marketers and advertisers. Users are now spending more time with their mobile devices than in front of the TV or desktop. The timing is right for service providers to engage.
The combined expertise of Aquto and Alcatel-Lucent – including experience working with mobile operators -- has let leading mobile service providers rapidly roll out this new service that allows new revenue and monetization streams.
I’ve received a lot of questions from mobile operators, who are asking about mobile data growth and how it’s related to the youth market — meaning consumers from the age of 18 to 25 or sometimes 18 to 22. The mobile operators’ own research shows that the youth segment is valuable — and influences adult segments. The Business Case for Youth section of the Mobile Youth Report also says: “The youth market is worth $1 trillion dollars. Youth drive high-end smartphone markets. Youth have the highest lifetime value of all customers.” As a result, mobile operators around the world are taking notice of young consumers, and some are investing in a new youth brand to attract that segment.
For example, in Ireland, “48” is the new wave of youth mobile services targeting the 48-month duration between the ages of 18 and 22. See how 48 cleverly branded its video campaigns. It’s not about subscriptions, but about low-cost membership in the 48 community. Its members can get calling, texting, and mobile Internet services with a manageable cost — and find online support through FAQs, community support, and a 48 customer care agent offering online help with a 24-hour response time. On top of all that, 48 is encouraging members to grow their community by giving “Kickback” to members and their friends who join.
On the other hand, the Mobile Youth Report also points out under Youth Branding: “You don’t have to be a Youth Brand. Most popular brands with youth are Youthful not Youth brands (e.g. Starbucks, Apple, Facebook). Youthful means open to ideas and dialogue. The Next Big Thing always starts in the youth market and spreads to the mass market/adults later e.g. SMS, mobile messaging, Facebook, Instagram.”
Clearly, the recent “un-carrier” events launched at T-Mobile USA are working to attract youth through the CEO’s twitter account and the company’s Facebook and Instagram campaigns on “Break-up Letter” and “Rebel Maker.” These communications are getting a lot of notice by the youth segment.
Whether creating a youth brand or a youthful brand, mobile operators need to consider how to craft offers that promote the “mobile data first” experience. Young people don’t usually have a lot of money, but they are highly motivated to use data on the go, especially in countries where public Wi-Fi is readily available. The goal for 3G/4G LTE mobile operators is to drive the “mobile data first” experience into young consumers’ behaviors, so they will stop being afraid to use mobile data and feel in control of what they use and when they use it.
What other successful examples of youth brands vs. youthful brands do you know about? Do you agree that the youth segment influences adult segments in mobile data growth? Why or why not?
If you like this article, please feel free to share it with your followers. Next week, I will offer my insights on the 10 ways to drive mobile data growth through the youth market.
]]>By Beecher Tuttle
The most successful advertisers and brands are always those that evolve alongside technology and adapt their campaigns based on recent consumer trends. Just as advertisers once changed their focus from print to digital platforms, marketing groups are now concentrating their efforts on the mobile market.
The inherent difficulty in mobile marketing is that it has almost become synonymous with spamming, where advertisers blanket mobile phone users with promotions, deals and company news that they simple don't care about. If only advertisers could partner with mobile operators and develop a base of consumers who are interested in connecting and interacting with their brand.
With the Optism Mobile Advertising Solution from Alcatel-Lucent, they can.
Optism provides an innovative business model that enables operators and their brand partners to engage with interested consumers through a permission-based system where users "opt-in" to receive ads and promotions. This way, advertisers can engage directly with users who love their products and services via SMS and MMS messages, thus creating value for brands, agencies, consumers and mobile network operators.
While somewhat new on the scene, Optism has already contributed to several wins, particularly in the developing world where mobile phone usage far exceeds PC ownership.
Egyptian operator Mobinil recently undertook an Optism campaign and garnered response rates as high as 54 percent. The company's "Mobile Ads" service was so successful it ended up winning the "Best Value-Added Services" at the Telecoms World event in Dubai last October.
"Since the introduction of our mobile advertising service, we have been able to further increase our relevance to end-users, brands and advertising agencies," said Ahmed Saber, Head of Mobile Advertising at Mobinil. "Leveraging the Optism solution, we are in a unique position to provide brands and advertising agencies access to — and a better understanding of — their potential customer base."
Ghana's Tigo has also found success with Optism, booking response rates of as high as 45 percent. In one campaign with Universal Motors, a total 30 percent of users responded to a Volkswagen Touareg ad, 90 percent of whom asked for more information on the vehicle.
Auto Parts Ltd, a distributor of Nissan automobiles in Ghana, mirrored the success of Universal Motors. "The mobile campaign we ran with Tigo Ads brought us to a wider audience than any other form of digital advertising in Ghana," said Haadi Bawah, marketing manager at Auto Parts. "The response rates to the Nissan Patrol campaign were extremely positive, and we gained insight into consumers’ needs that we can use to shape future campaigns."
In addition to its work with mobile operators and brands, Alcatel-Lucent has been spearheading a mobile advertising initiative dubbed the Mobile Marketing Association (MMA), whose goal is to raise awareness around permission-based mobile marketing. The MMA is made up of a number of mobile service providers – including Vodafone Group, Telefonica, 02, Turkcell and Maxis – which are pushing this new initiative.
]]>The influx of smartphones, tablets and next-generation networks has created a number of new ways for brands and marketing agencies to reach consumers. Unfortunately, many of today's mobile marketing techniques fail to engage consumers, who often find the advertisements to be bothersome, intrusive and unrelated to their interests.
One innovative and effective way to bridge this gap is a strategy called permission-based mobile marketing, a targeted advertising technique that changes the marketing paradigm by creating a dialogue with consumers, rather than an invasive, one-sided monologue.
The basic premise of permission-based mobile marketing is rather simple: users opt-in and give their consent for brands to send them targeted, preference-based marketing materials for products and services that they are interested in. If executed properly, a permission-based mobile marketing strategy can create value for brands, agencies, consumers and mobile network operators.
A recent white paper, Building Permission Based Mobile Marketing, authored by the Mobile Marketing Association and its Task Force members, including Alcatel-Lucent, Vodafone and other major players in the telecom space, details permission-based mobile marketing, how it works and the benefits that it can bring to all parties involved.
The strength of the marketing technique relies on the fact that mobile devices are now near-ubiquitous. In addition, the mobile platform is currently made up of multiple, flexible channels including messaging, browsing, apps and proximity channels. Needless to say, the mobile platform offers advertisers an expansive field to play with.
Taking advantage of mobile channels is easier said than done, however, because consumers get turned off when they receive marketing materials from brands that they don't care about. This is where permission-based mobile marketing can succeed.
Targeted advertising dramatically increases response rates and creates an engaged audience, says MMA, and also gives consumers reason to share their demographic information and other data that can help encourage commerce.
Consumers have plenty of reasons to opt-in to marketing campaigns, including a more personalized and deeper connection to the brands that they love, a two-way dialogue in the format of their choosing and, most importantly, access to special deals, alerts and discounts.
In fact, a recent Alcatel-Lucent survey found that 63 percent of mobile youth indicated that they would be more willing to purchase products or services from preferred brands using a permission-based mobile marketing service. More than three-quarters of respondents said that it's important for mobile ads to be based on their interests, while more than 80 percent said it's "very/extremely" important for brands to ask permission before sending them advertisements.
In addition to benefiting consumers, permission-based mobile marketing provides a number of opportunities for brands and agencies, the most obvious of which is a significant reduction in advertising spending that is wasted on consumers who have no interest in their products and services. The strategy also increases consumer engagement and real-time interaction, which, in turn, boosts ROI numbers.
Additional benefits include quick response rates – with 90 percent of SMS text messages read within three minutes of receipt – and the ability to create long-term relationships.
Finally, permission-based mobile marketing can be a major aid to network service providers, who can leverage the strategy to improve customer satisfaction numbers and open up new revenue streams by partnering with advertisers and content creators.
MMA Task Force member Alcatel-Lucent is one of the leading supporters of permission-based mobile marketing, and has designed its Optimism solution to help provide the aforementioned benefits to all parties in the commerce value chain. The Optimism Mobile Advertising Solution, which helps advertisers and operators connect with a 100 percent opted-in audience, has proven to be extremely effective in multiple global campaigns.
As an example, Egyptian mobile network operator Mobinil has seen their response rates on mobile ad services climb to as high as 54 percent on the back of the Optimism solution.
"Since the introduction of our mobile advertising service, we have been able to further increase our relevance to end-users, brands and advertising agencies. Leveraging the Optism solution, we are in a unique position to provide brands and advertising agencies access to — and a better understanding of — their potential customer base," Ahmed Saber, Head of Mobile Advertising at Mobinil, noted in a recent case study.
Alcatel-Lucent will continue to work with the MMA to push permission-based marketing to the next level and enable advertisers and operators to make the most efficient use of their budgets.
“We’re very excited that the MMA recognizes the importance of permission-based marketing and that Alcatel-Lucent has the opportunity to help shape the efforts of the taskforce as we evangelize and educate the industry on best practices,” said Lisa Ciangiulli, Director of Marketing, Alcatel-Lucent Mobile Commerce Solutions.
Check out the complete white paper to read Alcatel-Lucent's four-stage process for launching a permission-based mobile marketing campaign and some recent success stories.