Wednesday, May 16, 2012

Mobile Operators Should Think More Like Facebook

Facebook Stock Certificate
With the Facebook IPO on the horizon, and its estimated valuation reaching over $100B, this is a good time for mobile operators to rethink their business models. Needless to say, Facebook has never charged its users, asked them for their credit cards, or sent invoices to their homes. Nevertheless, its revenues are expected to hit $5B in 2012, with 85% coming from ads. Facebook is capable of reaching these enormous numbers primarily because businesses, no matter how large they are, are always interested in increasing exposure to their products and services, and are willing to share their revenues in order to do so.


So what does this have to do with mobile operators?

First, and this is obvious, the mobile internet is a sustainable source of revenues for its industry. As Jon Stewart said about the internet, “it’s a keeper.” This is good news for mobile operators struggling to maintain revenues from traditional voice and messaging services in the face of competition and regulation.

Second, for mobile operators to compete in the Internet playing field, they need to get in the game and start thinking more like Internet players, such as Facebook. Rather than sticking to traditional subscription-based business models, they need to get creative. This means not only selling their own content and services directly, but also using their unique position between their users and the internet to offer interesting and relevant content and services from anywhere on the web, using affiliation plans and revenue-sharing.

To do this, operators need to find the real-estate to effectively present these recommendations and promotions to their users – either on the monthly bill, their portal, or, for maximum visibility, within the browser itself. Our monetization solution provides operators with this valuable real-estate - our web toolbar - and the supporting ecosystem to start generating and sharing revenues today. 


-- Chen Didi-Barnea, Product Marketing Manager

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