Monetizing the Mobile Eco-System: Driving Revenues over the Lifetime of a Device

When you buy a car from an approved dealership your relationship with the manufacturer doesn’t end the moment you drive off the forecourt. Warranties, finance packages and service plans keep the customer returning to the dealership and ensure that only genuine, manufacturer approved parts (often sold at premium prices) are fitted during any maintenance work and, thanks to this ongoing relationship, they have the first chance opportunity to sell a new vehicle to the customer when the time comes to replace their old one. This “cradle to grave” relationship helps drive manufacturers’ revenues beyond the initial vehicle sale and increases Customer Lifetime Value (CLV).

While a smartphone is a very different purchase to a car (although rising costs are certainly making premium handsets a more considered purchase) there is absolutely no reason why manufacturers (OEMs) and carriers cannot extend the value of their customer relationship beyond the initial sale and monthly bill cycle.

Increased Opportunities to Monetize Devices

As the smartphone continues along its rapid evolution from a humble communications device to a seamlessly unlimited technology encompassing everything from media, entertainment, business productivity, commerce and even health (meaning users just cannot put them down), OEMs and carriers are presented with numerous opportunities to increase touch points and drive incremental revenues.

Much of this opportunity is scooped-up by third-party app stores, advertising networks and payment gateways (with very little filtering back to manufacturers and networks to invest in product development and the wider eco-system). And it’s not just revenue the OEMs and carriers are missing out on. In an open eco-system, OEMs and carriers are essentially outsourcing user experience and device security to unknown operators. This creates an opportunity for poorly developed and even fraudulent apps to sour the users’ experience and when this happens on a branded device or via a specific network, their brand reputation (along with everyone else in the industry) is also potentially tarnished.

Further Reading: How Pre-Loading Apps Can Help Developers Circumnavigate Fraud

Continued Disruption: What Would Amazon Do?

OEMs and carriers can learn a lot from a company like Amazon. By creating devices (such as the Kindle or Echo) which encourage exclusive, ongoing engagement and drive future purchases, they are able to off-set device costs against customer lifetime value and completely take ownership of a market. Amazon didn’t invent the eBook or pioneer voice search, but thanks to competitive pricing, readily available inventory and amazing customer service, competitive brands will struggle to compete in any market which they focus their attention on. With this is mind, it’s always worth remembering that while Amazon’s previous attempts to enter the smartphone space were largely unsuccessful, only a fool would bet against an organization that controls so much of the digital eco-system. It’s therefore vitally important that OEMs and carriers look to maximize their commercial opportunities and re-invest in new products, apps and services to maintain and maximize their current position.

Taking Back Control

As a leading mobile solutions provider, Digital Turbine helps OEMs and carriers around the globe to take control of their own eco-system, guaranteeing user experience and creating new opportunities to drive additional streams of revenue.

These include:

App Discoverability

The secret to successful app discoverability and activation is often down to simply putting the right app in front of the right person at the right time. There is no better way to do this than directly with the OEM or carrier. Digital Turbine enables OEMs and carriers to support this strategy via targeted Pre-Loaded App campaigns and through the creation of Smart Folders.

• Pre-Loading: Pre-loaded campaigns enable OEMs and carriers to create a highly engaging user-experience straight out of the box. This is a particularly useful route to market for app developers because smartphone users are more likely to engage and activate apps in the immediate moments after un-boxing a new device than at any other time. Pre-loading also carries a number of additional benefits for app developers, such as the increased credibility afforded by partnering with a specific OEM or carrier brand and the reduced risk of attribution or click fraud.
• Smart Folders: Smart Folders present apps based on a user’s specific interests without cluttering device screens or hogging memory. This is a great way to deliver targeted apps to the individuals who are most likely to engage and activate over the lifetime of a device while maintaining the same credibility and security as pre-loading.

Further Reading: Preloaded Apps Deliver Credibility, Security and Engagement

Content Monetization

As the lines between media and technology continue to blur, OEMs and carriers have the opportunity to develop their own content-led channels via their own branded apps and mobile sites which can be monetized via the Digital Turbine platform through our mobile advertising network and payment gateway.

• Mobile Ads: OEMs and carriers monetize their content-led channels by presenting targeted advertising campaigns to their app users and site visitors, creating new revenue earning opportunities with every click that results in an install. Digital Turbine’s advertising inventory is 100% non-incentivized, reducing the risk of fraudulent attribution activity and guaranteeing network (and your brand’s) integrity.
• Optimized Delivery: Revenues are optimized via our “Single Tap Install” technology which helps to reduce the number of abandoned app installs by cutting out unnecessary clicks through an app store.
• Mobile Payment: Digital Turbine’s mobile payment gateway enables OEMs and carriers to further monetize “premium” content by taking payment for subscription services or sales of digital or physical products and services.

Don’t Sell Yourself Short

The question OEMs and carriers must ask themselves is: Are we in the business of shifting units or building long term relationships?

With the average smartphone contract guaranteeing a device remains in the hands of a user for a minimum of two years, the opportunity to drive new revenues seems too positive to be ignored.

To learn how Digital Turbine can help OEMs and carriers generate new streams of income contact us to schedule an appointment to speak to one of our advisors.

By Ravi Pimplaskar

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