Ad-Supported Converged/Mobile Content Models: The Business Case

KPMG International has come out with a nice report on the business case for mobile operators launching ad-supported content service on mobiles (and other “converged” services), and not look for too much in subscription services.
This quote by KPMG’s Sean Collins sums it up very nicely: “Mobile service providers will need to stop thinking of converged services purely as a revenue booster. Instead, they should consider them as a churn reduction tool, allowing them to present a much more stable, loyal subscriber base which should be attractive to advertisers and digital commerce partners. In its most basic terms, it’s a case of moving from a ‘wallet share’ model – aimed at extracting more cash from each customer – to a ‘wallet sharing’ model. The latter will use these enhanced, converged services to deepen their customer relationships in ways that allow other parties to reach them.”

() You can download the PDF of the study here (PDF link, 28 pages)

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