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DIMOCO presented a brand new publication at the Mobile World Congress 2016. “The future of carrier billing in Europe” shows trends on the digital content and the carrier billing market.
European digital content revenue will increase to €55.2 billion in 2020; the value of digital content billed via
carrier billing will rise to €14 billion in 2020. Carrier billing offers content stakeholders conversion rates up to 88%, says Juniper Research.
“We are creating tomorrow’s carrier billing future. It’s even more interesting to analyze the market once a year with the leading tech market research partner Juniper Research,” says Gerald Tauchner, DIMOCO President & CEO.
Brand new carrier billing publication shows carrier billing market developments
The DIMOCO and Juniper Research publication has been released for the 3rd time now. In comparison to the previous editions, the opportunities for carrier billing have extended from pay-per-download for on-device purchases to monetizing content across an array of devices and through purchasing models such as subscriptions. Furthermore, there is the opportunity to increase the monetization of additional services ranging from online ticket sales to online gambling.
“When carrier billing is added as a content billing option, conversion rates are markedly higher. We have seen that once again in this year’s study,” says Windsor Holden, Juniper Research Director, adding: “The uplift is particularly pronounced for small value transactions.”
Highlights from “The future of carrier billing in Europe 3.0”
- DIGITAL CONTENT: The European market for digital content (incl. games, music, video, ePublishing, adult content, dating services & others) is expected to increase from an estimated €29.2 billion in 2015 to €55.2 billion in 2020.
- DIGITAL CONTENT BILLED VIA CARRIER BILLING: Juniper Research believes that the value of digital content in Europe billed via carrier billing will rise from just over €2.6 billion in 2015 to nearly €14 billion in 2020, an average annual increase over the forecast period of 40%.
- CONVERSION RATES: First-time transaction rates for operator billing of 70-77% (vs. 10-12% on credit cards) and for repeat purchases of 80-88% conversion rate (vs. 20-25% on credit cards) have been measured.
- MOBILE MARKET: Europe shows an average handset penetration rate of 126.3% with 1,030.90 million handsets available. 34.7% of adults own a credit card.
- CARRIER BILLING INCUBATORS: The higher the smartphone volume, the greater the potential to generate revenues from 1-click payment using the mobile channel. BUT: The beauty of carrier billing is that billing digital content can be also done on feature phones.
- TRANSACTION VALUES: Average transaction values for carrier billed content remains significantly higher in Western Europe throughout the period, at over €4, compared to around €1.50 in CEE.
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