Intelligent Use Of Customer Data Devonport TAS

Intelligent use of customer data is key if operators want to fully take advantage of the mobile advertising revolution, warned IT media and telecoms expert Analysys today at the 3GSM World Congress in Barcelona.

To sustain and be profitable from the new and emerging business models being created to support mobile advertising, players must harness the power that information about customers affords them.

These new business models include ad-funded operations such as Google and Yahoo, in addition to those fueled by mobile TV services, games and downloads, according to Analysys consultant Andrew Kloeden.

"If this information is used intelligently, mobile operators have an opportunity to gain significant new revenues from mobile advertisers, who may be willing to pay a premium for access to a well-segmented audience," said Kloeden.

To maximise the value proposition, operators need to be aware of, and overcome, a number of challenges warns Kloeden.

The foundations of success lie in ensuring the technology is there to support marketing and data mining activities so that any advertising represents good value for advertisers.

It is also important for operators to take a greater sense of ownership and spearhead the creation of business models that don't bypass their networks, such as the recent deals struck by Yahoo directly with handset manufacturers like Nokia, Motorola and Research in Motion (RIM), added Kloeden.

Last, but not least, operators must work hard to overcome data protection and privacy concerns by offering content that is compelling enough for subscribers to opt in to the advertising cycle and allow the intelligent re-use of their information.

"Mobile operators have the potential to use customer information to gain revenues from mobile advertising beyond simple data carriage.
Provided a business model that does not bypass the operators' networks emerges as dominant, mobile advertising may represent a source of significant ARPU gains from mobile data services."

In an age where customer churn is on the up and margins are shrinking, the mobile industry is looking to revitalise what it can offer users. Embracing the mobile ad revolution could be just the tonic needed, according to Kloeden.

"If mobile operators can successfully influence the business models that eventually dominate the market and exploit their marketing, data mining and content aggregation capabilities, mobile advertising may represent an opportunity to extract significant new revenues from mobile data services," concludes Kloeden.

Author: Maggie Holland

IT Pro Online