RingPlus: RingPlus says 90% of customers subscribe to ad-supported network (S)

Reuters/Dave KaupThis story was delivered to BI Intelligence Apps and Platforms Briefing subscribers. To learn more and subscribe, please click here.RingPlus, a mobile virtual network operator (MVNO) that runs on Sprint's network, reports that around 90% of its 100,000 customers subscribe to one of its free ad-supported calling plans, according to FierceWireless.RingPlus inserts its ads into a customer's ring-back tone. This means that, instead of hearing the typical tone when they call a person, they hear an advertisement. In return, customers are given voice, text, and LTE data, depending on the plan they subscribe to - the first plan includes 200 minutes of voice, 50 text messages, and 10MB of data.Reaching customers over networks may increase interaction for businesses. Roughly 2.5% of RingPlus ads receive some kind of response, according to RingPlus executives. For comparison, Smart Insights notes that digital ads have a click-through-rate, on average, of 0.17%. Companies that use the service to advertise to customers include DirecTV and King, the app publisher known for Candy Crush.Network offers that provide customers with free data will likely become more popular as more consumers join the smartphone-only trend. The popularity of RingPlus, just one year after launch, suggests that there is a viable market for these offerings.Furthermore, in 2015, around 13% of US consumers reported using their smartphone as their primary point of access to the internet, that's up from 8% in 2013, according to Pew Research. This is largely due to the cost associated with broadband connections. Should this group continue to expand, they may well look for more ways to cut back on costs associated with getting online. To receive stories like this one directly to your inbox every morning, sign up for the Apps and Platforms Briefing newsletter. Click here to learn more about how you can gain risk-free access today.