Ina Fried, writing for re/code:
Verizon plans in the next few days to start testing so-called sponsored data, the equivalent of toll-free calling for the Internet age.
“The capabilities we’ve built allow us to break down any byte that is carried across our network and have all or a portion of that sponsored,” Verizon Executive VP Marni Walden said during a wide-ranging interview this week.
Wow. This is like those podcasts where every single element is sponsored, tagged with a name like the “Subway Fresh Take Hotline”.
Sponsored data, as the name implies, allows consumers to access certain content without having to eat into their own data plans. Instead, a third party pays for it.
Verizon is working with just a few partners in the testing phase, but said next year this feature will be available to all comers at an affordable rate.
Sponsored data gives Verizon a chance to be first in line to collect ad revenue. Presumably, following a sponsored link would present content without ads, or with specific ads exclusive to the sponsor. One question is, will Verizon build their own version of the Google ad mechanism? Will they track you, present sponsored content targeted at your browsing habits?
Dave,
Are you looking at this sort of backwards? I don’t think this has anything to do with Verizon being 1st in line to collect ad revenue. What this will do is allow businesses to pay for the data used by its customers for accessing its site/data. Thus, users don’t pay for data minutes for accessing those sites/apps (data usage). Verizon would have to have a mechanism to track for billing purposes and the site should be able to reconcile that with what they “serve up”. Its the site itself, who may choose to offset those costs by having ads appear on their site etc. But… Those ads come at a cost too since they use data, which the business is paying. Not sure what businesses or industries may want to go this route.
Freediverx,
How is this an attack on net neutrality? They aren’t saying that these packets/data get special treatment. All they are saying is that if you are a verizon wireless customer, this product could potentially reduce your costs/data usage if the sites/businesses you tend to frequent are those who would pick up the “data tab”, for their portion.
Like the article said, its analogy is that to toll free service. When you use a toll free number, it is the business that pays 100% of the cost of the call and not you as the user. Same applies here. For example, if Google was picking up the tab for anyone who visits their sites, your usage would not count against your cell data plan to access Google, Youtube, gmail, etc.
But also wanted to say that their tech is so granular that they can let a company sponsor specific data that would be free access to a customer. An example of this could be a marketing campaign for Amazon to allow Mobile Cell Uses (in this case Verizon customers) to watch a free episode of a Prime Video at Amazon’s expense. Thus, hoping to increase Prime membership.
“This is like those podcasts where every single element is sponsored” This has been happening for a lot longer than podcasts have been around. Look at NASCAR. Every element of their programming is sponsored by someone.
“One question is, will Verizon build their own version of the Google ad mechanism? Will they track you, present sponsored content targeted at your browsing habits?”
You can bet the ranch on it.
Oh, and those are two questions 🙂
Agree on both counts. But I would be quite surprised that carriers are not mining data. It would be shockingly dumb from a business perspective, as unsavory as it is from a personal perspective.
You are way too attached to the gamecube controller