In 2016, the exponential increase in data traffic will continue to force Operators to find new revenue generating opportunities and new radio optimization techniques to offset the cost of new capacity. Meanwhile the competition for mobile ad dollars will continue to heat up. Here are the top six trends we predict for 2016.
#1: TSUNAMI OF MOBILE VIDEO
Already an estimated 35% more viewers are accessing online videos, as well as longform videos using their mobile devices this year compared to last year. More than one-third of viewers are watching clips that are five minutes or longer, at least once each day. This trend will accelerate in 2016 with 4K video and with service’s like T-Mobile’s Binge On where streaming content from Netflix, HBO, ESPN, Fox is included at no additional charge.
#2: OPERATORS SECURE MOBILE DEVICES
Device security services will become an Operator’s path to differentiation, new revenue and subscriber loyalty. Malware attacks on mobile devices by hackers and spammers are steadily on the rise, with a total of 16 million devices infected in 2014 according to a malware report, published by Alcatel-Lucent.
Ofer Gottfried,
CTO,
Flash Networks
#3: THE RISE OF SOCIAL MEDIA VIDEO
Video is becoming the preferred format for social media interactions on the mobile. Facebook recently announced a dedicated place for viewers to watch video, making it look more and more like YouTube. This year, Facebook users posted 75 percent more video than last year. More than 65 percent of Facebook views happened via mobile. You Tube’s stats are just as impressive. YouTube watch time increased 60 percent year-over-year in the second quarter of this year. At least 50 percent of YouTube views come from mobile.
#4: IOT JAMMING UP MOBILE NETWORKS
2016 Trends and Outlook Polls
The number of connected devices is multiplying rapidly due to the emergence of the Internet of Things. When the signaling traffic of each connected device is added up and multiplied by the number of devices, the impact on network congestion will be even more than the increase in data traffic. As the Internet of Things becomes a reality IDC forecasts that the worldwide market for IoT solutions will grow from $1.9 trillion in 2013 to $7.1 trillion in 2020. The number of cars connected to the Internet worldwide alone will grow more than six fold to 152 million in 2020 from 23 million in 2013 according to IHS Automotive.
#5: MOBILE ADVERTISING TO OVERTAKE NEWSPAPERS IN 2016
Mobile internet advertising will overtake newspaper advertising next year, accounting for 12.4 percent of global ad spend while newspapers account for 11.9 percent, according to ZenithOptimedia's new Advertising Expenditure Forecasts. Mobile advertising will grow 38 percent in 2016 to $71 billion, while newspaper advertising will shrink 4 percent to $68 billion. Mobile advertising will become the driving force behind the growth of the entire advertising market, contributing 83 percent of all new ad dollars between 2014 and 2017.
#6: MOBILE ADS WARS ESCALATE
Many mobile operators will take action to prevent digital media companies from riding on the backs of their high-speed networks. One mobile operator confessed to the Financial Times that it plans to launch an advertising-free service for customers on an opt-in basis, or to block advertising all together to force media companies to give up a cut of their revenues. It appears other mobile operators may follow suit.
2016 promises to be an interesting year, filled with heated competition and controversy. The players who will come out ahead are those who can keep ahead of the traffic boom while launching new revenue generating services that will enable them to have a larger share of growing mobile advertising revenues.
About The Author:
Ofer Gottfried joined Flash Networks in 2007 after serving as General Manager and VP of Research and Development at NeuStar NGM, (formerly Followap), a provider of instant messaging and presence products. Prior to joining NeuStar NGM, Ofer was VP of R&D at the Internet security company V-Secure, after being appointed CTO of Excel Switching, a supplier of development platforms for telecom applications and solutions. Ofer also served as General Manager and VP of R&D at Airslide prior to its merger with Excel Switching. Previously, Ofer held several senior positions at ECI Telecom and related companies managing the development of voice compression and VoIP products for the telecom market. Ofer holds a B.Sc. in Electronics Engineering from the Holon Academic Institute of Technology.
