Maurice Coyle
Lorcan
Jordan
How to Unlock New Revenue Streams from Mobile Subscriber Data
Head of BD
CEO
Tuesday 29th April, 2014
Presentation Outline
• Industry Trends: Growth & Decline
• Strategies for an OTT (over-the-top) World
• Intent in Customer Profiling
• The Problem with Mobile Customer Profiling
• Towards Improved Profiling
Industry Trends: Growth & Decline
Voice & Messaging Revenues are Declining
Source: Chetan Sharma Consulting, 2012
Maurice Coyle
Lorcan
Jordan
Source: Mobile Fourth Wave: The Evolution of the Next Trillion Dollars - Chetan Sharma, 2013
The 4th Curve
OTT / VAS Application Areas
Source: Chetan Sharma Consulting, 2012
Source: Juniper
Source: Chetan Sharma, 2014
Market Maturity Matters
Strategies for an OTT World
Participation levels
• Utility, i.e. delivery of data access that OTT providers build their services on top of.
• Enabler, i.e. operators who create the infrastructure and provide user data to OTT providers.
• OTT/VAS provider, i.e. operators who deliver the products and services their customers use
Attempts to Unseat OTT Providers
• Blocking OTT providers
• Release own OTT apps
• Focus on quality
If You Can’t Beat Them, Join Them
• Partnering with OTT providers
• App-based pricing
• Leverage direct relationship as differentiator to add value
The Problem with Mobile Customer Profiling
The Problem with Mobile Customer Profiling
Male
35 y/o
Dublin
Samsung Galaxy s4
Postpay - €55/month
Female (probably)*
? *
London *
Sony Z1
Prepay - €20/month
Male (probably) *
18 y/o *
Paris *
iPhone 5
Prepay - €35/month
?What does he want? ?
* Demographic / profile information of prepay customers, tends to be customer-provided & unreliable
• Targeting a campaign at, e.g. expectant parents, is not possible with this interface
Source: TheWire.com, 2013
• Poor, inaccurate targeting results in low spend, low campaign ROI and low cost-per-click/cost-per-thousand-impressions
Intent in Customer Profiling
Intent is the Key to Successful Customer Profiling
• Google (49.3%) & Facebook (17.5%) generated 67% of $17.96Bn global mobile ad revenues in 20131
• Demand fulfilment (intent) garners most advertising dollars2
1. http://www.emarketer.com/Article/Driven-by-Facebook-Google-Mobile-Ad-Market-Soars-10537-2013/1010690
2. http://techcrunch.com/2013/04/24/how-the-search-giant-could-fall/
Intent in Mobile is even more Powerful
• Facebook’s stock price and mobile revenue turn-around was a direct result of Facebook Exchange / move to demand fulfilment end of the funnel
Source: eMarketer, 2014
2014 Intent-driven Ad Markets
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Google Facebook Twitter
Mobile Internet Ad Revenue Share, Worldwide
2012 2013 2014
$14.72 Bn
$6.82 Bn
$0.94 Bn
Towards Improved Profiling
Intent Analytics
• Search reflects true intent better than other sources, e.g. social1
• Intent Data from Chango was added to Facebook Exchange in December 2012. Shortly afterwards, revenues (and stock price) climbed rapidly.
Search queries’
HeyStaks Intent Profiling
? ? ?
1. http://www.heystaks.com/public-vs-private-parts-personas-sharing-on-the-recommendation-web/
HeyStaks Richer View of Subscriber Intent
* Demographic / profile information of prepay customers, tends to be customer-provided & unreliable
Male
35 y/o
Dublin
Samsung Galaxy s4
Bill-pay €55/month
Female *
22 y/o *
London *
Sony Z1
Pre-pay - €20/month
Male *
18 y/o *
Paris *
iPhone 5
Pre-pay - €35/month
Designer TravellerDeveloper
• Enhanced interface enables the delivery of high value laser-focussed custom campaigns
Customers can be
targetted based on their
actual intent & preference
Closing remarks
• OTT/VAS represents a significant threat & opportunity
• Successful strategies involve customer knowledge
• Intent-based profiling leads to rich view of customers
• Operators knowing their customer is a path to new revenue
