Mobile users in Asia are on the whole willing to accept sponsored mobile data packages and that could mean a significant revenue opportunity for mobile operators and content owners in the region, according to new research published on Wednesday.
62% of respondents in a Syniverse-backed study said they would accept branded content and advertising in return for free data usage. That could lead to a significant increase in data consumption and a share for telcos in a $6 billion annual revenue opportunity.
"Consumers want to use more data along with richer mobile engagement, and operators and content providers are missing out on the revenue that this usage could deliver," said Mary Clark, chief marketing officer at Syniverse.
The mobile transaction provider explained that the $6 billion figure represents the total value that could be generated by monetising the increased usage of content as a result of sponsorship models. The firm did not split out what proportion of this mobile operators could realistically look to capture.
Nonetheless, the firm believes telcos should take note.
"The results of this study underline the business case that should motivate operators and their partners to consider sponsored data plans as a way to drive revenue as well as customer engagement," Clark said.
On behalf of Syniverse, On Device Research surveyed 3,500 end users in seven countries in Asia: China, India, Japan, Malaysia, Singapore, South Korea, and Thailand. The results were then analysed by Strategic Economic Engineering Corp (SEEC), alongside analyst data and market forecasts, to determine the value of the market.
"Our analysis shows that the sponsored data model has the potential to substantially affect consumers’ behaviour favourably for all parties involved," said Sam Brown, founder and CEO of SEEC.
"The key to unlocking this potential, however, will be the ability of sponsors and operators to work together to hone highly personalised offers that meet individual user expectations and requirements for engagement," he added.
The survey showed that entertainment providers would potentially make the base partners for telcos, with 42% of respondents saying they would accept sponsored content from them in return for free or reduced-price data.
31% of respondents answered in the affirmative when it came to bars, restaurants and cafes, while 30% said yes to travel companies.
43% said they would be willing to accept sponsored branding or advertising in return for free access to Websites or mobile Internet browsing; 41% said the same for free social media access; and 38% of respondents would agree in return for free Web-based video services.
In terms of usage, bandwidth-hungry content such as video could see a spike of 40% as a result of sponsored data models, the survey showed, while subscription-bas ed music services could grow by 25%.
