Synchronoss Study: Brands - Telcos Better Source of Data Insights Than Google, Apple & Samsung
27 February 2017 - 5:02AM
Business Wire
Latest Ovum study underlines the lucrative
potential of operator customer data insights
Synchronoss Technologies, Inc. (NASDAQ:SNCR), announced the
results of an independent study of more than 300 brands from the
US, UK and France. The study was undertaken by industry analyst
research firm Ovum and commissioned by Synchronoss. The study
reveals that 67% of brands consider telecoms operators to be a
better original source of data insights than Google, Apple and
Samsung. However, a staggering 48% of brands are not aware of
operators’ ability to even offer these insights – suggesting that
many operators have been slow to market to monetize these core
assets.
The new study, “Brand perceptions of data insights in digital
advertising - and the role of operators,” explores the value and
potential of the contextual customer data operators have at their
disposal to global brands. It uncovers a lucrative, relatively
untapped opportunity for operators to monetize customer data
insights through commercial brand partnerships.
“We’ve known for years that operators are sitting on a gold mine
of contextual customer data. Studies have estimated the market to
be worth potentially billions of dollars. But no one’s looked at
this from the brand’s perspective – and it’s good news for telcos,”
said Ted Woodbery, VP Comms & Media Marketing at Synchronoss.
“More than two thirds (67%) of brands surveyed value it above
everything but social network data. Of those brands that weren’t
previously aware that telco data existed, 92% are willing to
explore commercial partnerships with operators once
elucidated.”
Addressing a Critical Problem
Of those brands that do currently know or use telco data to
underpin digital advertising, 64% say that it’s of high quality and
compelling. However, availability and awareness of this data
remains a critical problem as most advertising agencies don’t offer
it. This is surprising given how half of the brands surveyed
considered the lack of good quality, actionable customer data
insights as the biggest pain point impacting their adoption of
mobile advertising.
Challenging the Established Order
Google (59%) and Facebook (52%) remain the dominant brand
partners for data insights and digital advertising. Operators are
also very much in the frame however. Just over a quarter (26%) of
brands currently partner directly with telcos that specialize in
digital advertising. Despite the existing established order, less
than a quarter of brands (22%) confessed to being completely
satisfied with the depth and quality of customer data insights
currently provided from any of their partners.
For brands that know about and are using telco data assets, the
most compelling aspect is its value as a whole rather than
constituent parts (real-time location, billing and network
intelligence), followed by its depth and breadth. This is a
positive finding and suggests that brands have a good overall
perception of telco data that can enable telcos to differentiate
themselves in the data economy.
Reaping the Rewards
Most brand executives expect their firm’s total annual digital
advertising budgets to increase over the next two years. More than
a fifth (21%) of respondents expect that total annual advertising
spend will increase by more than 25% in the next two years, while
4% are looking at punchy increases of more than 50%. Brands are
willing to pay a premium for capabilities that enable better
targeting. Six out of ten respondents said they would pay more for
data insights and analytics that support enhanced targeting.
Woodbery continues: “These findings offer significant
encouragement to telecom operators, especially as global digital
advertising revenues from brands are set to soar. The ability to
capitalize on this revenue is driving the global digital
transformation of the operator community. Operators must arm their
data with analytics and tagging if it is to lead to better digital
experiences, sharper engagement and better monetization. It’s
interesting that brands place operators above digital service
companies like Google as a source for data insights. What perhaps
is more encouraging is that operators also have the potential to
emulate the social networks that are revered as the best overall
source of insight, by investments in chat bots and A2P messaging
platforms. These enable operators to create messaging communities
of their own, capable of extracting even higher metrics than those
being delivered by the likes of Facebook today.”
EDITORS NOTES
Ovum itself predicts that total revenues from online digital
advertising will grow from $126.4 billion at the end of 2016 to
$158.6 billion at the end of 2021, with mobile Internet advertising
accounting for $64.1 billion and $134.2 billion respectively.
About Synchronoss Technologies, Inc.
Synchronoss (NASDAQ:SNCR) is an innovative software company that
helps both service providers and enterprises realize and execute
their goals for mobile transformation now. Our simple, powerful and
flexible solutions are used by more than 3 billion mobile users and
300 of the Fortune 500 worldwide. www.synchronoss.com
Synchronoss and the Synchronoss logo are trademarks of
Synchronoss Technologies, Inc. All other trademarks are property of
their respective owners
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SynchronossDaniel Ives,
908-524-1047Daniel.ives@synchronoss.com