Billing on Mobile

A basic rule of economics is that if you want to grow the size of the market then you need to make it attractive for people to invest and do business - and by attractive, we are talking about rewarding businesses financially. In the mobile content business, the most effective lever you can apply is increasing payout rates for mobile content billing off-portal which is just what the UK operators have done over the past few months.

Today, Orange’s top rate is 88%, Vodafone’s is 86%, 3’s is 79% and O2’s is 77.5%.  They have not only increased the top rate but also upped payout rates for content sold at higher price points.  Businesses should consider adding a subscription service or a £5 content bundle – all simple to set up and now delivering even bigger rewards.

Higher payout rates encourage content providers to run promotions on these networks as they receive a better return on their marketing investment. It’s virtuous circle and because businesses can measure the success of marketing promotions with tools like Bango mobile analytics, it builds confidence and shows them the best ways to spend their money.

At Bango, we saw this happen amongst our content providers in the last half of 2007 when the first major wave to payout increases occured.

This is being repeated once again and we believe it will dramaticaly increase the size of the mobile content pie.  So even if the operator’s slice of the pie is smaller, the increased volumes means that everyone potentially wins - operators, content providers and billing networks like Bango.

But what do you think?   Tell us…..

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