Realising The Digital Opportunity

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...strategy that maximises average revenue per user (ARPU).

Few organisations, however, are willing to make such changes in the face of economic downturn or, to be frank, following the significant dent in revenues that resulted from the problems with premium rate IVR and SMS services last year.

This latter point should be a major wake up call. Organisations have got to get to grips with new consumer behaviour, their likes and dislikes, if any new media strategy is to successfully replace declining revenues elsewhere.

Embrace Digital

Tough decisions need to be made: organisations cannot simply sit still. Traditional...

...revenues will continue to decline and the audience will fragment further. So how can organisations begin to embrace the digital arena without exposure to significant business risk and untenable investment?

The first objective must be to maximise revenues from existing value-added services, such as competition and content, by cross-selling from one medium to another. By encouraging a customer using an SMS application to also use a web application or access free IPTV content, the company can begin to increase ARPU, and drive incremental revenue gains.

In addition, long term success in the digital environment will be highly dependent upon generating traffic to support new advertising platforms. Key to this strategy is the creation of relevant free offers that are highly targeted at specific groups of consumers and leverage existing material, content and customer loyalty.

Taking this initially low key approach, organisations can begin to explore the new media, understand opportunities for revenue generation from IPTV, 3G and mobile without massive risk and whilst gaining some incremental revenue.

Barriers to Entry

However, to make this work, organisations need to engage with service providers that can support and understand traffic generation across the mix, from IPTV to 3G video and advertising into a WAP portal. Without... continued on page three >

 

 

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