Restrictions rarely lead to revenue, particularly in an early consumer choice-centric environment. This same truth will likely apply to the walled gardens of the mobile operators.
The Third Screen blog, "Are Ads the Key to the Walled Garden", proposes that ad-funded services may open walled gardens to others, thereby providing a better mobile experience to the consumer. Enabling consumer choice is indeed the key for unlocking any proprietary mentality, particularly in a consumer-controlled world. Advertiser funding and sponsorship will also probably stimulate uptake and growth for some period of time, for some group of individuals. But will it unlock value? What has yet to be proven is how to sustain continuous profitable relationships between consumers, advertisers and digital content service providers, particularly when the initial novelty of getting free content and services in exchange for viewing ads wears off.
Forrester Research, in a recent report, found that while 79% of the individuals surveyed found the idea of mobile ads annoying, there was receptivity to advertising content that is relevant (personalized for their needs), and that has entertainment, educational or informational value. Virgin Mobile USA's Sugar Mama represents a potentially valuable and relevant service. However, when time becomes money for individuals, this service may likely diminish in value.
When the value diminishes, will there be any trust equity built between the advertisers and the consumers that leads to higher consideration for these brands when it comes time to purchase their goods or services? These "bribevertising" approaches still insist that the consumer pays, albeit with a different currency -- i.e. their time.
The key to an improved consumer experience and increased commitment to brands lies in the fostering of consumer gratitude. This can be achieved simply by the advertiser or service provider offering a gift of the desired content or service over a sustainable period of time. This sponsored service approach has been proven to generate considerably increased ROI and brand consideration for the advertiser. And the consumer doesn't have to pay for the experience.
Increasing the real value for the consumer increases revenue and relationship value to the mobile operator and all other service participants.
The consumer experience is the key.
David Tomley
Comments