The humble telephone call is causing mobile network operators a revenue headache, as voice revenues continue to decline due to increasing pressure from roaming regulations, free voice bundles, and the growth of OTT voice. ExchangeWire speak with Claudia Dreier-Poepperl, CEO of Calldorado, a solution that gives operators the potential to take advantage of a prime space of real estate, the call screen, to generate revenue every time their customers make a call.
ExchangeWire: Let’s set the scene, what challenges are mobile network operators facing with consumer communication trends and roaming regulations?
Claudia Dreier-Poepperl: Carrier’s mobile voice revenues are dwindling as they come under pressure from new roaming regulations, the rise of OTT players, and customer expectations of free voice bundles. A recent report from Vodacom suggests that voice has slipped to below 50% of core service revenue for the first time. However, according to Deloitte’s Global Mobile Consumer Trends 2016, voice remains the most used mobile service in the developed world.
How does Calldorado intend to address these challenges?
Calldorado offers a plug-and-play solution that creates an additional revenue stream that carriers can use to take back control of their voice profits. The solution is free and carriers can reap the rewards without any investment or running cost.
How does the technology work?
The white-labelled Calldorado caller ID SDK can be added to operators’ existing Android apps (e.g. My Vodafone, My Orange, My Telenor) or launched as a stand-alone, carrier-branded caller ID app, giving operators the potential to generate revenue through advertising every time their customers make a call.
Revenues are generated from the Calldorado caller ID SDK via ads served on the post-call Caller ID screen, which is one of the most unobtrusive ad-spaces available on a mobile device. Calldorado serves on average 150 impressions per user per month, generating topline revenue linked to voice calls that is currently not available to operators. At the moment, this income is claimed by the dominant stand-alone Caller ID apps.
As a consumer, what would I expect to experience when making a call?
The Calldorado caller ID SDK operates as a secondary function that doesn’t impact the primary functionality of the app into which it is incorporated. It doesn’t interrupt the calling experience of the user either, so users can make calls as normal.
Do consumers have an opt-out option?
It’s an opt-in service. Users can choose to opt-out or opt-in at any time.
What targeting options are available?
We use a ‘call-based targeting’ method which, instead of analysing browsing behaviour (cookies), analyses the user’s call behaviour, anonymously. For example, take a user who calls a local car repair shop. After the call is finished he will see an ad for a car dealership or another ad related to cars. This type of targeting allows us to show relevant advertising to users, right when they are ready to make a purchase decision.
How is the model funded? Do advertisers pay on a CPM basis?
We are connected to all the big ad exchanges and ad networks to make sure we show the most relevant ad for the user and the highest paying advertiser.
What kind of scale could mobile network operators and advertisers alike expect to see from this form of advertising?
The revenue varies by region in line with the value of ad impressions. For example, with a user base of one million daily active users of the Caller ID functionality, a US-based operator can expect USD$4m (£2.74m) in annual revenue, a European operator close to USD$2m (£1.36m), and an operator in Asia, South Americ,a or Africa USD$720,000 (£492,564). Revenue estimates based on daily active users, impressions, and CPMs, in the given region, are generated through Calldorado’s revenue calculator. The revenue is actually a profit increase for the carrier as there are no costs attached to running the service.
For advertisers, our solution creates additional inventory to show ads that can be highly targeted. We do not sell directly to advertisers, but they typically book campaigns via ad networks etc., which we connect to.