Analysis: the real sponsored data opportunity

Written by on July 17, 2015 in Guest Blog with 0 Comments

globe and dollarAccording to this report/infographic commissioned by vendor Syniverse, Sponsored Data is $6 Billion Opportunity in Asia (by 2019), with consumers willing to accept branded content for free data. They also go on to say that the potential may be as much $23 billion opportunity worldwide.

We have covered the sponsored data issue here several times in the past (here, here & here). We have come to the conclusion that this is not likely to take off in mature markets, such as North America or Europe, however, some markets in Asia, Africa and Latam may be ripe for this.

The main Sponsored Data research findings:

  • 42% would accept offers from entertainment providers.
  • 31% would accept offers from bars, restaurants and cafes.
  • 29% would accept offers from travel companies.
  • 43% would accept offers for free access to websites
  • 41% would accept offers for free access to social media sites.
  • 38% would accept offers for free access to video services

“Content providers, mobile service providers and consumers have been stuck in a no-win situation when it comes to mobile data usage,” said Mary Clark, Syniverse CMO. “Consumers want to use more data along with richer mobile engagement, and operators and content providers are missing out on the revenue that this usage could deliver. The results of this study underline the business case that should motivate operators and their partners to consider sponsored data plans as a way to drive revenue as well as consumer engagement.” “

Our analysis shows that the sponsored data model has the potential to substantially affect consumers’ behavior favorably for all parties involved,” said Sam Brown, CEO of SEEC. “The key to unlocking this potential, however, will be the ability of sponsors and operators to work together to hone highly personalized offers that meet individual user expectations and requirements for engagement.”

Sponsored Data – sound familiar?

Would you be prepared to watch a bunch of commercials for free content?  Sounds ironically like free to air TV – don’t ya think? In markets where mobile data in particular is expensive, this sounds like a winner.  One potential downside that comes to mind is that what happens if people start hoarding “free data”. If you think about what happened with people hoarding airline frequent flyer miles, this could be a potential problem. I guess this model would have to be very transactional with no “Data Stash” or “Data Rollover” for Sponsored Data.  Which would make it even more suitable for some pre-paid Asian and African mobile markets.

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About the Author

About the Author: Jonathon has been lurking around the Telecoms and Internet space for the last 20 years. He is now a man on a mission – that being the reformation of the Industry Analyst business. He is working with his co-conspirators on transforming the Industry Analyst world forever as an Expert with EMI. .

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