Friday, January 11, 2019

Monetizing Mobile Data Might be Harder Than First Imagined

One example of how hard it might be for access providers to monetize insights from customer relationships can be seen in use of location data, one of the more-unique data stores mobile service providers necessarily create and use.



That data, it seems, is far easier to monetize if a firm is a content or app provider. In such cases, the data can be used internally for purposes of selling targeted advertising, for example. If an access provider does not own at least some content, or supply some widely-used applications, and if location data cannot be sold to third parties, ways to monetize location data are limited.

In an era where data mining for insights increasingly is key to creating value and insights that aid advertising and commerce activities, the inability to monetize location illustrates how hard it might be for access providers to take on higher-value roles in the internet ecosystem.

Sale of broader and anonymous insights that divulge no personally-identifiable details might be possible, but value is less than if insights are directly related to individuals. Presumably that was a driver behind Verizon’s purchase of Yahoo assets.

As sensible as it might be, moving up the stack remains a challenge, in part because privacy concerns are likely to limit the ability to sell insights to third parties, and in part because many mobile operators have no content assets of their own that might be helped by application of behavioral insights.  

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