Watch Ads, Earn Data: Economics of Mobile Data Rewards
Watch Ads, Earn Data: Economics of Mobile Data Rewards
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观看广告,赚取数据:移动数据奖励的经济学
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发表时间:
2018
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通讯作者:
R. Berry
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作者:
Haoran Yu;Ermin Wei;R. Berry
Although global mobile traffic has been growing rapidly, the service revenue is estimated to have nearly reached a saturation point. Strategy Analytics predicts that the global mobile service revenue will peak in 2021 at a value that is only 3% above that in 2018 [1]. This has led mobile operators to seek new revenue streams, and one effective approach is to offer mobile data rewards to mobile users. Specifically, the users are rewarded with free mobile data after viewing the mobile ads delivered by the operators, and the corresponding advertisers pay the operators based on the ad viewership. The data rewarding scheme can achieve a “win-win-win” outcome for the operators, users, and advertisers. First, the operators can monetize their mobile service via the mobile advertising (it was estimated that the mobile advertising market’s worldwide revenue reached $80 billion in 2017). Second, the users get free mobile data to support the data-hungry mobile applications. Third, the advertisers can improve their ads’ effectiveness when the users are rewarded for viewing ads (this advertising type is known as incentivized advertising). Moreover, since the advertisers allow the users, who want to earn rewards, to have the control over whether and when to view ads, the users can better engage with the ads. There has been a growing number of businesses entering this market. Some companies (e.g., Unlockd, Aquto, SOCIFI, and ClickWings) offer technical support for data rewarding, including the development of mobile apps which display ads and record the amount of rewarded data [2]. Some leading mobile network operators, such as Verizon (in the United States), Tesco Mobile (in the United Kingdom), Telefonica (in Spain), and Lebara Mobile (in Australia), have collaborated with these companies to offer data rewards. In our work, we study a capacity-constrained operator’s optimal data rewarding design, considering its existing data plan. The users can obtain data by either subscribing to the data plan or viewing ads. The operator’s total revenue consists of the users’ subscription fee and the advertisers’ payment for purchasing the ad slots. We analyze the operator’s optimal strategy that maximizes its total revenue. In particular, we answer the following two questions: (i) How does the operator choose the unit data reward (i.e., the amount of data rewarded for viewing one ad) for the users? (ii) How does the operator choose the ad price (i.e., the price for purchasing one ad slot) for the advertisers? Note that a few references, e.g., [3] and [4], studied markets in which providers offer both a fee-based service and an ad-based