When it comes to mobile advertising, U.S. operators are very concerned about pushing ads to subscribers without their permission. That's why most are careful to only send out an advertisement if there is a distinct "opt-in" option, meaning that subscribers must specifically give the operator permission before they will send any mobile advertising offer to them via their mobile phone.
But that isn't the case in Singapore where incumbent operator SingTel regularly pushes advertisements to its subscribers. During a press tour last week in Singapore, SingTel Director, Business Development Ong Geok Chwee said that the operator provides customers with the option to "opt-out" of receiving advertisements. However, that's quite different than opting in. In other words, customers will regularly receive ads unless they specifically tell the operator they don't want them. Chwee says that model works well for SingTel and the carrier closely guards the types of advertisements it sends to its customers to make sure it doesn't offend or alienate them. She says that as long as the carrier makes sure the advertisements are relevant, customers are fine with the arrangement. "We think the advertisements are a benefit to the end user because they provide discounts," she said.
Some Singapore residents (and SingTel customers) that I spoke with said they were annoyed with the advertisements they receive on their handset but weren't upset enough to "opt-out" of the experience. Instead, they were resigned to the fact that mobile advertisements were part of the cell phone experience. SingTel clearly isn't worried about alienating its customers or having them churn to competitors because of the mobile ads they receive. Although there are three cellular operators in Singapore, SingTel is the leader with 43.4 percent of the postpaid market.
Perhaps because SingTel has such as stronghold on the Singapore wireless market, it can push advertisements to customers without being concerned about offending subscriber base. Nevertheless, in the fiercely competitive U.S. market, I don't recommend operators follow this "opt-out" model. I think the risk it too great and customers would churn. --Sue [1]
Links:
[1] mailto:sue@fiercemarkets.com