Data is the new crude oil

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Data is the new crude oil

Joseph Waring  |   June 20, 2012
telecomasia.net

Data is the world's new crude oil, but mobile operators have to be able to refine it and provide the right platform to extract it.

Amobee managing director for APAC Grant Watts said yesterday in the VAS track at the Summit that billion-dollar businesses will be built from this resource. "Operators are the oil rigs and don't want to have a data spill."

Amobee, recently acquired by SingTel, builds the "oil rigs", or the platform.

Watts said advertising is a fact of life, but the challenge is that most ads aren't relevant to consumers, so there is a huge opportunity for operators that can deliver customers targeted messages.

He said they first need to access information, by collecting the right data, then leverage that big data. Optus now collects some 120 data points. But no one is sure which ones will be the hot data points that will drive increased returns in business. The industry will learn over time what these are.

"We do know that money will follow adoption and time spent [on a medium]", said Watts, who sees web and mobile traffic figures being combined into one aggregate metric for clients.

There are of course questions in how each operator will run its model, and each market will have different regulations. For example, regulators in Australia limit the number of times Optus can reach out to customers each week.

Watts said operators can compete if they can collect, store and decipher data. "Big data is the way to compete. It is operators' most valuable assets, if they know how to use it. You know more about your customers than anyone else, so why is SingTel sharing information with MediaCorp?"

By sharing basic demographic data with a German publisher, Telefonica helped the company boost yields on its inventory by three to ten times.

The careers of the future, he noted, are in data deciphering. Silicon Valley firms are paying top dollar for people who can make sense of data.

Telcos have big advantages over anyone else in the ecosystem if they can get their acts together, he said. "They have unrivaled user data, real-time location data and direct customer relationships ‹they have all the assets to go and win in the advertising space."

He noted that the most expensive word on Google is "insurance". Insurance companies are paying US$54 a click and they don't even have profile data. They are willing to pay a high price because of the potentially large return over the lifetime of a customer.

 

Joseph Waring

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