The concept of sponsoring data access to global subscribers continues to gather pace globally. Simply put, this is the practice of enabling customers to access specific mobile content, apps and data services without them being charged. Instead the cost is passed on to a third party – a content provider, an enterprise, or possibly even a carrier.
Sponsored data has heralded a new era of ‘try before you buy’ for certain applications and content. Content providers can essentially provide free access for a specified time in the hope that a small taste will convince the user to buy. But is this use case is merely the tip of a growing, untapped iceberg? And by which methods are carriers and operators using sponsored data in order to drive content engagement and encourage more business?
Sponsored data: making the case
As a model, sponsored data enables customers to access mobile content, apps and data services without any impact on their own personal data allowance. The data delivery charges are then passed on to the sponsoring company – this could be the content provider, an advertiser, or even a third party. We’ve seen recent examples where mobile platforms or even combating the Zika virus via a sponsored data app have relied on this model very successfully. And it can clearly increase revenues and clearly define a lucrative role for the service provider in a burgeoning ecosystem.
Let’s look at some recent examples where this model includes driving the adoption of critical mobile health applications and where we might see more uptake in emerging markets next.
Sample use cases: Social and ‘toll free content’
Access to health videos and educational apps that are provided free of charge can immensely benefit customers. Recently Telenor launched its Telenor Health service in Bangladesh in order to provide local residents access to quality health services and medical advice at an affordable rate, in partnership with a local partner, Grameenphone.
Encouraging access to healthcare advice or educational services provided at no cost can be of net benefit to customers. It and can encourage the uptake of these services in emerging markets that struggle with quality of care, or where access to emergency medical care is generally seen as impediment. Health care companies, government agencies and even advertisers should consider putting some skin in the game to sponsor the delivery of vital services where the cost of mobile internet access far outweighs daily wages in order to improve accessibility.
But given the choice of selecting one similar content service over another, price is often a key factor in a customer’s decision. Seeing the ‘toll free’ or a ‘sponsored by’ icon next to a logo should make that content more attractive. For content providers, the extra selling point behind ‘toll free’ should create additional traffic towards that content and so too drive up the potential to increase revenues.
Another sample use case for enterprises is to split payment for BYOD (bring your own device) plans. Sponsored plans for employees who bring their own smartphones to work is growing at such a rate that Gartner predicts that by the end of this year nearly 40% of companies expect to stop providing company-owned devices to their workers.
Let’s say you ask your employees to access your employer collaboration tools or company email and they access them via personal devices. By using sponsored data, the charges or bill across these services can be split. The employee pays for personal usage while the employer pays for all work-related usage.
How zero-rating can increase brand engagement
Fundamentally, and for the uninitiated, zero-rating is about prioritising certain popular services such as Netflix or Facebook on a subscriber’s monthly account. This can be one way for operators to subtly introduce advertising solutions to the mix for the 85% of the global population who remains stuck to pay-as-you-go mobile plans. There are recent examples with the US app Jana and in Tanzania with TigoTanzania where people download an app free of charge, watch ads and in return for viewing these ads get free data.
According to the Harvard Business Review, Jana is now India’s second-largest advertising platform. In countries where incomes are low and data is relatively expensive, if it means making the internet more accessible, people are prepared to watch ads to access that data. But the social benefits to getting online remain significant.
Zero rating may just hold the key of making the internet more of a level playing field of accessibility for us all.
