AT&T has launched a Sponsored Data Program for mobile, which would allow advertisers working with AT&T to pay for the data used in consumption of content or services so that it does not show up on a customer’s mobile phone bill, according to a recent New York Times post. AT&T explained that when sponsored content, such as a movie trailer, shows up on customers’ phones, a Sponsored Data icon would be displayed to show that the content costs nothing to watch. The hope is that this will entice customers to watch ads they might otherwise avoid because they would have incurred phone bill charges. AT&T announced three initial partners for its sponsored mobile data program: Aquto, an ad platform that provides marketers with tools to use sponsored data; Kony Solutions, a company that helps businesses develop apps; and UnitedHealth Group, a health care company that plans to use the program to stream educational videos to mobile devices. AT&T may not be alone for long in its pioneering effort. The New York Times post, citing unnamed sources, said Verizon is experimenting with a similar program. AT&T's Sponsored Data Program has already raised concerns among some consumer advocacy groups, however. They see such sponsorships hurting efforts for "net neutrality," meaning equal treatment of all services by Internet providers to keep competition fair. Public Knowledge, a nonprofit focusing on digital rights, argued the Sponsored Data Program would allow AT&T to pick winners and losers online by requiring companies to pay so people can view their content. For the complete report, see http://mobile.nytimes.com/blogs/bits/2014/01/06/att-allows-advertisers-to-sponsor-mobile-data/
David Kanter, President and CEO of AccuList, is a list brokerage and direct marketing expert. For more than 30 years, he has helped companies and nonprofit organizations achieve their marketing goals. With David's Direct Marketing Forum, he shares, and invites others to share, helpful direct-marketing industry news, trends, analyses, resources, and tips for success. Please read our Comment Policy.
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