Commentary

Sponsored Data: What It Bodes For Carriers And Consumers

AT&T’s recent announcement of the Sponsored Data program is a first for the carriers and at initial glance, it seems to be the perfect trifecta -- incremental revenues for the carrier, instant reach to millions for the marketer, and free data for the consumer. So is this new approach primed to be a contender for long-term mobile marketing success, or will marketers be less than wowed by the value it delivers?

Goal at hand: Interaction or conversion?

Mobile marketing has risen to the forefront of marketing conversations around the globe, but in reality many marketers still struggle to justify a mobile spend. While many would agree that the mobile channel has proven its value in increasing brand awareness, there is ongoing speculation around its ability to drive hard results (aka, revenues). 

With the launch of AT&T’s Sponsored Data program came the announcement of the first company on board, UnitedHealth Group, that will be leveraging the carrier’s network to encourage consumers to access health-related apps and sites.  Offering easy, unrestricted access to a huge number of consumers via a trusted marketing channel comes with an obvious opportunity for increasing customer interaction, which perfectly aligns to marketing goals of companies such as UnitedHealth Group.

But outside of what major brands with deep pockets can do and a few specific verticals that are solely focused on education and awareness, are there enough "smarts" behind the scenes to translate a base of millions into a targeted pool of potential customers? 

Matchmaker, matchmaker make me a match

The combination of minimal budgets and maximum pressure for tangible results leaves marketers hesitant to allocate funding to any new approach until they are confident it can deliver above and beyond the performance of their current efforts.  

And while I’m sure the access to millions of consumers alone has piqued the interest of a variety of brands and marketers (higher reach tends to equal better results), what really has the potential to be transformational for both the carrier and the marketer is what lies beneath the customer count -- the behavioral data. How consumers interact with their devices, what influences their usage, with whom they engage, how they prefer to interact and when, how much data they’re willing to pay for -- all of this sits within the carrier’s troves of data.

The challenge is in leveraging that data to determine who’s best to target, when to target them, and how best to engage them with the right message, offer or dynamic experience.  Carriers opening the floodgates to provide Sponsored Data as a form of mass marketing will provide little value to the marketers. Marketers must have the data insights to know which users are likely to become more engaged with their brands and have the highest propensity to become more loyal users of their products or services -- to then focus their efforts and dollars accordingly.

Push marketing will still be required to attract potential users and as carriers will continue to own the overall mobile relationship -- and feel the brunt for any less than optimal experience -- they must ensure that the Sponsored Data is relevant and that associated marketing efforts are as non-intrusive as possible. Ultimately, there must be perceived value on the part of the subscriber. 

Driving true differentiation and value

For sponsored data to really work, the carriers must attract an extensive and ever-evolving list of partners.  Partnering with only a few big players will limit the ability to differentiate and continually enhance the mobile experience and may eventually have an impact on the success of developers and innovators who don’t have pockets deep enough to pay to play, but have something of real value to offer subscribers. 

While it will take some time for AT&T and those that follow suit to prove they have all their ducks in a row, any additional confusion or frustration around data charges and caps will have a significant impact on the consumer’s willingness to participate, causing a domino effect on the willingness of marketers to jump aboard.   

Make it or break it for the carriers

The sponsored data model has opened yet another door for mobile carriers to expand their relevance within the broader mobile space. It’s essential that the carriers think beyond short-term revenue streams and develop a longer-term vision for how this opportunity will help them align the needs and wants of their mobile subscribers with the products and services of their marketing partners. 

Carriers must look at how they can get smarter -- and marketers must demand this of the carriers. Providing access to their subscribers is the first step, but developing and delivering an understanding of how individual consumers behave, what they want, when they want it, and what they’re willing to pay for it is what will entice the marketers to open up their wallets and intelligently engage. 

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