There are many reasons why publishers should promote various sectors, however below I’ve detailed five big reasons why promoting the telecoms sector may help publishers earn more.
1. Ease of Purchase
Mobile phones often feature as the most desirable gadgets and products in the world. Especially as the average phone now has the capability of a TV, Cinema, Games Console, Laptop and MP3 Player all built into a small pocket sized device. As most of us get our new mobile phone on a monthly contract with a mobile network, there is often no initial upfront cost, making this highly desirable product a guilt free and easy purchase.
2. World Class Brands
The beautiful thing about promoting world renowned brands, which most of the telecom networks are, is that the consumer already knows who they are, what they sell and what their propositions are. Meaning when a visitor hits your website you won’t need to spend ages writing blurb about the brand ensuring the consumer knows what they do, instead you can spend that time upselling and converting. Mobile networks spend 100s of millions of pounds on brand advertising to build awareness and trust; so consumers are more likely to convert on a brand they know than one they don’t. The same trust and luxury the consumer attaches to their brands will then be attached to your website once the consumer lands on your website.
Due to the fact that people only get new contracts when their last one runs out, demand is all year round. So unlike some other sectors, your earnings want ebb and flow as much making telecoms a more reliable source. There will however be peaks when key launches occur. In 2012 we’ve seen this for the HTC One X, Samsung Galaxy SIII and the iPhone 5.
The target audience for mobile phone and sim only contracts is very broad, with the exception of under 18s, everyone else is potentially viable for a contract. That’s a target audience of roughly 45 million people in the UK (depending on credit checks); there aren’t many other markets that have a market that size.
In the first 3 days of the iPhone 5 launch, Apple sold 5 million handsets worldwide. It’s not just iPhones that fly off the shelves, the Samsung Galaxy SIII has sold 10 million handsets in the first 2 months of launch.
4. High CPA
When a customer purchases a 24 month contract, they are only paying between £20-£50 per month over a 24 month period, but overall this amounts to a considerable sum of money. This allows the mobile network to offer the publisher a high CPA. Buying a mobile phone contract is a considered purchase so it can take a while to convert. That being said, 85% of UK households have at least one mobile phone that will need updating at some point, proving how vast the opportunities can be.
5. Increase CPA by up selling the customer
With telecom networks starting to pay commission on the tariff length, cost and handset, the more opportunity there is to increase earning power through the performance channel. With some networks such as Vodafone offering higher CPA on certain contracts, it pays to add value and up sell your customers to these higher CPA contracts.