Mobile

How telcos can monopolize the ad business from Facebook and Google

In the world of marketing, consumption habits of users are changing quickly and the dominance of mobile devices has transformed the digital ecosystem. All experts especially digital marketers are fast establishing the notion that mobile advertising is becoming the principle monetization engine for digital advertising. If we roam the current digital advertising sphere, there is no denying that Facebook and Google are the supreme titans as the two control 83% of all digital advertising growth. Mobile advertising alone continued to drive growth at Facebook. The tech giant reported $12.97 billion in revenue for its advertising revenue which mostly comes from mobile advertising in the fourth quarter last year.

In the face of that duopoly, there is a revolutionary potential coming from telcos. Telcos substantially own a wealth of accurate and complete first-party data about their subscribers such as basic demographics, mobile data-usage, internet scrolling, and location. With first-party data, the connection between data subject (customer) and the data processor (brand) is more direct which means greater trust. Not only that, telcos have also usually built a long-term relationship with their subscribers. Combining the values of first-party data, trust and loyalty of their customers will possibly make telcos the worthy contender against Facebook and Google.

As the mobile market grows and mobile advertising is used on a wider scale, there is a greater demand for more sophisticated technology. With the right ad-tech solutions, telcos can now have a pragmatic approach to capitalize on additional revenue and build a significant ad business by providing digital advertising services to consumers, advertisers, publishers, and platforms specifically on programmatic advertising.

Telcos can utilize subscribers and network information while protecting subscribers’ privacy and data protection with strict compliance to help advertisers target their audience as accurately as possible. They can also personalize advertising more effectively in the data-driven revolution that is shaping the force of programmatic advertising. Moreover, in return for subscribers’ data, telcos have the unique position to go further and offer a transparent exchange of value such as phone bill discounts, free value-added services or other rewards for customers who already know what they are opting-in.

With such tremendous capabilities, telcos should not miss the strategic opportunity to play a role in the growing $100 Billion mobile advertising ecosystem. All they need to do now besides to tread carefully on non-PII data solutions, is to decide whether they would want to take advantage of the strong demand to be a potential authorized data broker and open a new revenue stream by sharing customer data with third parties or remain to keep the big data on customers only for quality improvements of current core business.

At Forest Interactive, we provide M-Clicks, a mobile operator ads platform that can help telcos to improve their core offerings and enter the ad business. To learn more about how M-clicks can help you monetize a new revenue stream in the advertising landscape, please reach out to us at: productmarketing@forest-interactive.com

You might also want to watch this video to know more about M-Clicks:

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Tags : digital marketingmobile advertisingprogrammatic advertising
Ana Rahman

The author Ana Rahman

Ana is a Senior Corporate PR at Forest Interactive. When she is not busy writing about the telco industry, you can find her guilty of being a shameless self-proclaimed secret virtuoso that wishes she can time travel and witness the masterpiece creations of all the great historical composers especially Tchaikovsky.

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