Articles, Blog

AWE18 The VAS-aggregator-affiliate value chain explained

September 28, 2019

My name is Mohammed, I’m the Head of
Carrier and Business Development at Message Cloud. We deal, we’re an 1
aggregator we have direct connections with the networks, 40, so far, across the
globe and we provide services for VAS providers, for mobile billing through SMS
DCB and flows like PSMS and click flows. Due to our connections with the MNO’s what we tend to have are VAS providers and because we’re heavily
focusing on Europe, these VAS providers have various content offers and they use
affiliate marketing to drive the end-user to subscribe to the content
services. Along the supply chain, we’re we are the ones who afford for the
VAS providers who were to bill the end consumer. So the affiliate drives the traffic for the content service and we provide the
billing service link to that. In terms of the use of affiliate marketing it has
grown extensively over the last five to ten years and the advantage of it is
obviously because it’s performance-based it weeds out low-performing options for
those that use it, it also offers a greater degree of third-party validation
so for example when our VAS providers want to go into a new country they
already have a marketing base there with affiliates that are already there
performing and it gives them a greater scope to enter those markets. It’s cost-effective because it’s based on a performance-based model if they
don’t give you the conversions you don’t have to pay for them outside of that
it’s there’s an ability with affiliate market to build a scale the traffic
which allows for our partners to enter a geo and to be able to hit the ground
running. The focus on mobile and responsive
websites has taken you know a huge step forward you know the challenges in terms
of the rises in automation and bots etc in terms of rogue affiliates
those are the type of challenges that are that we can see that are being faced
and also some of the big players are entering into the market as well so in
terms of that the level the playing field isn’t always as
as as we’d like and you also have the problems that are caused by affiliate
marketing because it’s not really centralized and it’s not regulated in a
sense but it also leaves way for rogue affiliates to enter the market but having
said this I mean affiliate marketing is dynamic and resilient and we honestly
believe that it runs parallel and it’s it’s a very important element to the
service that we provide along the supply chain. I don’t think is going to change
drastically, in all honesty, I think it’s not going anywhere those who have been
successful at it have worked on the model that they find what a consumer may
want and then they market and direct the traffic towards that cliche as it may
sound, I don’t think it’s really going to be going anywhere I mean and I also
believe that the focus in the market is changing
I mean Europe is a market that we see as continuing you know set trends with the
introduction especially of 5G, and the advancements and opportunities of this
will be immense so I think it’s not really going anywhere but I also think
that there will be a filtering out so only the best will remain and which will
be good for the market as well.

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