The Intersection of Advertising and Payments in the Mobile World
Contributor:
Randy Barker
Director, Channel Solutions
Banking and Credit Services
CSC
Do banks benefit from the intersection of advertising and payments in the mobile world?
One of the most interesting and potentially profitable opportunities in the mobile world is this fast-approaching intersection of advertising/marketing and mobile payments/banking applications. If (when!) my mobile device becomes my primary payment vehicle, and my mobile banking app becomes my lifeline to manage my financial world, the integrated advertising and marketing offerings available as part of the payment and banking process could be beneficial to the consumer and profitable to the provider (hopefully your bank) of the mobile application.
If I go to pay for my groceries with my mobile app and all of my coupons and store discounts could be automatically deducted from my total bill, I would be a very happy consumer. If I am a store providing cross-sell and up-sell offers that could be suggested and presented at the time of sale, which the consumer acts upon, the merchant and consumer both win.
We have all also heard the geo-location predictions that neighboring stores or offers could be presented as I walk down a street or through a mall to drive traffic for merchants. All of these scenarios bring value to either the consumer or the merchant or both.
As a provider of the mobile payment or banking app, your bank should be able to participate in facilitating these offers, discounts, up-sells, cross-sells, etc., and be paid for bringing consumers and merchants together in a mutually beneficial advertising and marketing manner.
This “pay for performance” marketing offers benefits to consumers and banks, including a share of the transaction for the bank as the “matchmaker” for these types of marketing services. The potential revenue is significant. In June 2011, Gartner predicted that mobile ad revenue will be $3.3 billion in 2011. This will skyrocket to $20.6 billion in 2015, more than doubling each year and continue to grow thereafter.
To be successful at this, you must strike the right relationships with marketers and advertisers as well as provide a mobile application framework that is open and available for integration of any marketer’s technology. Additionally, you need the technology service providers to serve up the advertising/marketing offers, geo-location providers, security infrastructure and other core platform capabilities to make this type of solution work.
Do you have the mobile applications, open frameworks, infrastructure and potential relationships to bring both consumers and merchants together in a profitable way?