Sunday, 04 December 2016

Syniverse eyes $44bn contextual mobile marketing opportunity

By Nick Wood, Total Telecom, in Barcelona
Monday 24 February 14

Mobile platform provider positions itself between operators and brands as an aggregator of valuable user data.

The market for anonymous location data could be worth as much as $44 billion per year worldwide...provided the right business model is applied. That's according to Syniverse, which on Monday pitched itself as the company best-placed to maximise the opportunity for operators and brands looking to drive revenue from context-aware mobile marketing. "There is a confluence of objectives of both operators and brands that want to engage with their customers in the most effective way that they can…

The market for anonymous location data could be worth as much as $44 billion per year worldwide...provided the right business model is applied.

That's according to Syniverse, which on Monday pitched itself as the company best-placed to maximise the opportunity for operators and brands looking to drive revenue from context-aware mobile marketing.

"There is a confluence of objectives of both operators and brands that want to engage with their customers in the most effective way that they can," said Mary Clark, chief marketing officer at Syniverse.

At the moment though, Syniverse claims the mobile marketing sector is currently a confusing mishmash of bilateral agreements that sees brands having to manage relationships with dozens of operators, while operators have to negotiate agreements with potentially hundreds of brands.

According to research carried out by Strategic Economic Engineering Corp (SEEC) on behalf of Syniverse, adopting a model that sees a middle man aggregate context-aware mobile subscriber data from multiple operators and then repackage it in a compelling way to brands will unlock the true value of that data.

SEEC said two potential markets emerge from taking this approach.

The first one sees operators provide anonymous information about subscribers in specific locations, for instance, people visiting a certain shopping mall or sporting event. Brands could bid on specific periods of time like shop opening hours or the duration of a football match and in return receive the exclusive right to push out marketing messages during that timeframe.

The other involves selling individual subscriber data – provided that subscriber has opted in, of course – to a specific brand or partner that can use it to provide a highly-tailored offer or service.

For example, "what if your credit card was being used but it was in a completely different location to where your phone was?" asked Sam Brown, CEO of SEEC. If these two pieces of information could be combined, a credit card company could use it to determine the likelihood of a transaction being fraudulent, he said.

Brown calculates the value to operators of the anonymous subscriber location data model at around $44 billion per year. The value of individual subscriber data and its use for tailored services is harder to work out, he said, but the location-based fraud prevention service he described could be worth as much as $3 billion per year to operators.

Syniverse insists it has the expertise to implement the aggregated platform model and bring order to context-aware mobile marketing.

"We serve hundreds of operators and around 500 different brands in financial services, and retail and so on," said Clark, "We're used to bringing together disparate information."

The time it takes for the model described by Brown and Clark to emerge depends on "the ability of multiple parties to arrive at the same market structure", said Brown.

"If we think about how long it took for mobile advertising to get off the ground, it could be analogous to that," he predicted.
 

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