Late last year, we shared our predictions for 2017, which included my belief that service providers will focus on reducing OPEX and customer churn. By concentrating on that, an increased investment in big data platforms and analytics will come back—all in the name of creating additional revenue streams. One of those new revenue streams is location-based services (LBS).
The latest advancements in LBS are bringing about major improvements in the accuracy, reliability and types of services delivered to consumers and businesses.
Mobile service providers can boost revenues and benefit from the broad range of potential commercial applications with LBS. Faced with an ever-increasing threat from “over-the-top” (OTT) services, service providers need to continuously explore new ways to generate income from their existing network infrastructure. LBS plays a significant role in this strategy.
Why is the ability to accurately target customer location so important? In today’s consumer environment, marketing and advertising represents by far the largest expense of most retail-based organizations, regardless of whether they’re selling the latest product technology or simple household necessities such as food and clothing. According to figures published by eMarketer, advertisers around the world spent close to $600 billion in 2015, an increase of more than 6% from the previous year.
There is significant growth in mobile-based advertising. It is the key driver of growth around the world, with advertisers spending $64.25 billion worldwide on mobile content in 2015; by 2018, mobile ads will account for 22.3% of all advertising spending worldwide.
Right now, these ads are mainly generic in nature, and often restricted to browser-embedded advertising based on search history which, although relevant, can be intrusive in nature. The ability to tailor far better, product- and service-based advertising based on customer location or proximity, as well as actual interest, represents a significant improvement in reaching specific target audiences.
Leveraging this data will not only improve the breadth of services available, but, more significantly, enable the service provider to better target potential customers for a wide range of products or services. This opens up a new revenue stream: Access to customer location information in real time will be the key enabler for targeted advertising and media.
We work with a range of mobile service providers delivering solutions tailored to meet their needs. Empirix has also written a whitepaper that might be of interest to you – Understanding the quality of experience for mobile data.