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Sponsored Data: Mobile's Next Monetization Model
NEW YORK, July 2, 2015 /PRNewswire/ -- Introduction
In developed markets, mobile data has become a must have service. Consumers are voracious mobile data users:
- Smartphone penetration will be greater than 50% of the entire population in 2015 in North America and every country in Western Europe with the exception of Portugal, Belgium, Austria and the Czech Republic, according to eMarketer http://bit.ly/1xQZhW8
- Mobile data traffic grew 63% in North America and 39% in Western Europe between year end 2013 and year end 2014, according to the latest Cisco VNI http://bit.ly/1BFXvSQ
But there are clouds on the horizon. There is a convergence of market drivers that could derail consumer's love affair with mobile data:
- Mobile data traffic will grow even faster over the next few years. Between 2014 and end of 2018, mobile data traffic in will increase 5X in North America and 7X in Western Europe (Cisco VNI).
- Consumer's willingness, ability to pay is limited. While mobile data prices have recently dropped, mobile expenditures continue to represent a substantial portion of consumer spending in many markets, from beteen 2% and 6% of gross median household income. How much more can most people afford?
- Mobile operator revenues for mobile data significantly lag traffic volume growth. According to a recent McKinsey study http://bit.ly/1Cr8K5d while mobile data traffic has increased 40X from 2008 to 2013, the revenues associated with it have barely tripled. Can mobile operators sustain their current business models?
So consumer demand for mobile data is big and getting bigger, but consumers may not be able to pay for much more, leaving mobile operators with a big problem. Mobile operators are going to have to deploy new business models, and Mark Beccue Consulting (MBC) believes the one that makes the most sense in many markets is sponsored data.
Sponsored data is simply this – an entity other than the end user pays for some portion of the end user's mobile data use.
MBC believes sponsored data is set for significant growth in 2015 and 2016 in the U.S. and several other key markets, with impact for a host of players, including, mobile and fixed line service providers, online retailers, search advertisers, media publishers and enterprises. This report will address the following:
- Identify and detail key market drivers and barriers for sponsored data
- Identify which markets will most likely launch sponsored data, why they will do so and when
- Profile the key companies that will drive market change
- Outline sponsored data business strategies, use cases and revenue models
Read the full report: http://www.reportlinker.com/p02901638-summary/view-report.html
About Reportlinker
ReportLinker is an award-winning market research solution that finds, filters and organizes the latest industry data so you get all the market research you need - instantly, in one place.
http://www.reportlinker.com
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sponsored-data-mobiles-next-monetization-model-300108459.html
SOURCE Reportlinker
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