With 5G networks becoming more prevalent, wireless carriers enter 2024 with the need to find new sources of revenue to offset the cost of their network upgrades. Price wars have watered down the opportunity to grow revenue through data plans, necessitating an urgency for carriers to find other ways to differentiate themselves. Meanwhile, the bustling app economy that carrier networks enable is in a state of evolution. While most of the consumer revenue from app activity has stayed out of carrier pockets, 2024 might bring a sea change. Carriers have long tried to get into the media and ad game (most famously through Verizon’s Oath) but haven’t found their footing yet. However, with a new year comes new opportunities. The app economy is evolving, with consumer behavior, privacy concerns, and regulation driving massive change. No matter the power and popularity of apps, they still can’t exist without the smartphone devices in people’s hands. The control over the device gives carriers an inside advantage to take back a share of the consumer and advertising revenues that have been going primarily to apps for over a decade. By focusing on the device experience, consumers can create engaging, personalized, and, importantly, privacy-friendly smartphone experiences to help them gain and keep more revenue. In 2024, carriers can focus on connecting with consumers to build brand loyalty, grow subscribers, and gain ad revenue. Here are three trends you will see this year from winning carriers to capitalize on these opportunities:
#1: Ensuring Retention Through Experiences That Build Brand Loyalty
Telecom is a highly competitive market. Switching carriers has become more accessible as competitive environments have eliminated long service contracts. Billing and customer service are the two biggest touchpoints carriers have with their subscribers, hardly ones that thrive due to positive experiences. As such, carriers are investing in strategies to build enduring brand loyalty.
Wireless carriers have started using in-house apps. These apps put them on equal footing with other apps on the phone and establish direct relationships with customers. Because of their insight into the device usage behavior, they can use these apps to create personalized, engaging experiences. For example, some carriers have rolled out apps that offer customized content to subscribers at opportune times. Additionally, carriers can build relationships, promote upgrades, and push partner promotions by growing and increasing usage of in-house apps.
Mobile and cloud gaming is also on the rise, particularly in localities where consoles are too costly. Carriers can capitalize on gaming’s growing popularity by partnering with publishers to help promote new games to users. One thing about game apps that separates them from other categories is that gamers always seek something new and fun. By proactively recommending new games to gamers they’ll love, carriers can create a needed intimate connection with their subscribers.
Building brand loyalty establishes carriers as more than service providers, making them integral components of consumers' digital lives.
#2: Growing Subscribers By Localizing The Device To User Preferences
As carriers create new device experiences that are more personal and tailored to users, they can adapt the user experience to fit different localities. Today, most devices have a one-size-fits-all approach. Subscribers will have the same phone experience after purchasing in LATAM as they would in Europe. A nuanced, local approach could help them differentiate from their competitors in different geographies.
The most tangible thing for users from a carrier relationship is the smartphone experience. Tailoring that experience to align with each market's unique preferences and usage patterns can help grow their subscriber count. For example, carriers can enhance the phone experience in gaming-centric markets like Brazil to cater to gaming enthusiasts. Conversely, in regions like Europe and the US, where social media and content apps dominate, the focus shifts towards tailoring experiences that resonate with these preferences.
This localization strategy allows carriers to segment and appeal to niche markets. By aligning the phone experience with the prevalent trends in each market, carriers position themselves as providers that intimately understand and cater to the unique needs of their consumers. This strategic shift enables carriers to create more meaningful connections with diverse consumer bases.
#3: Monetizing Users Through a Deeper Focus on Advertising
Mobile advertising is undergoing a seismic shift, driven by Google privacy changes and developing regulatory frameworks. In this new app economy, carriers are determined to secure a more substantial share of the fragmented market. If there is even an opportunity for carriers to establish a bigger footprint in media and ad revenue, it’s 2024.
With Google's upcoming privacy changes, on-device targeting will become a popular solution. Carriers can build user profiles and cohorts through their on-device data and keep people’s demographic data safe. Through these profiles, they can create custom-tailored advertising experiences at high-usage points on the device - like the lock or swipe-right screen.
Also, carriers can use their device control to create mobile growth opportunities on the device. Preloads, once a stigma associated with smartphones, are now a popular tool used to grow users and protect market share. After all, when was the last time you heard someone complain about Facebook or YouTube preloaded on their phone? Additionally, carriers can offer premium notification opportunities to seamlessly recommend content and apps based on user preferences and behavior.
Beyond preloads and notifications, carriers can also explore other avenues for frictionless app discovery. Regulatory changes are opening the doors for carriers to establish their owned and operated app stores. And there might not be a better time since overcrowded app stores have consumers hesitant to install new apps. Building a carrier-branded app store is a way to jump into advertising and gain a share of the in-app monetization happening on the device.
These three key trends make it clear that major shifts are on the horizon for the telecom industry. Operators ready to transform in 2024 will usher in a new era of innovation and find opportunities to diversify offerings, cultivate better experiences – and put their customers first.
