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Telco Digital Advertising Strategies: Leveraging Data, Technology And Content Assets To Generate Revenue

Telco Digital Advertising Strategies: Leveraging Data, Technology And Content Assets To Generate Revenue

Summary

Telecom players globally are increasingly looking at advertising, and digital advertising in particular, as a revenue growth opportunity. Digital advertising is the fastest growing segment in the global advertising market, and a formidable revenue engine for digital technology players.

Digital advertising spending is driven by explosive growth in the consumption of online content, mobile apps and video. Advances in data-driven audience analytics combined with the widespread adoption of automated advertising trading platforms are empowering advertisers and publishers to make real-time decisions that maximize the performance of marketing campaigns.

Telcos around the world recognize the growth opportunities presented by digital advertising. It offers the potential to diversify their revenue base and move toward high growth digital business models. Participation in the digital advertising ecosystem enables telcos to expand beyond their core services and geographical reach, driving operational scale. Most importantly, advertising can become a revenue engine for telcos, an excellent vehicle to monetize their valuable data assets in order to drive content innovation, user satisfaction and retention, and long-term sustainability.

Telcos can position their authenticated user data and behavior-based analytics as tools to differentiate and provide added-value to both advertisers and publishers. They can integrate their premium content with big data to drive advertising sales. Telcos can also benefit by investing in open-architecture advertising platforms and becoming enablers for enterprises, telcos and other ecosystem players. Advertising revenues can be used to fund free new OTT services, driving customer loyalty. Telcos also have the opportunity to change the competitive landscape of digital advertising by establishing horizontal data and advertising technology partnerships across geographic boundaries.

The report Telco Digital Advertising Strategies: Leveraging Data, Technology And Content Assets To Generate Revenue is a thematic research report that examines the increased focus and participation of telecom services providers (Telcos) in the digital/mobile advertising ecosystem. Digital is the fastest growing segment in the global advertising market, and a formidable revenue engine for digital technology players. Telcos are adopting advertising business models and developing offerings to increase their participation and revenue share in this lucrative market.

In depth, it provides the following -

  • Provides a high-level overview of the digital advertising opportunity and the main trends driving growth in this market globally.
  • Examine the business drivers for Telcos’ interest in the digital advertising business and their participation in the advertising solutions value chain. We also identify the various go-to-market approaches and revenue models telcos are using to to profit from the advertising opportunity.
  • Provides in-depth review of how leading telecom companies AT&T, Verizon, Telefónica, SFR France, Singtel and Indosat Ooredoo are building a presence and market share in digital advertising. We examine their respective objectives, organization, go-to-market strategy, value proposition and competencies in the digital advertising realm.
  • Insights into summary of the opportunities, challenges and success factors in digital advertising, as well as recommendations, for telecom services providers.
Companies mentioned in this report: AT&T, Indosat Ooredoo, Singtel, SFR France, Telefónica and Verizon.

Scope

Open technology advertising platforms are being leveraged by telcos to create value for the business to -
  • Create global scale
  • Develop more reach, serve new advertising client segments
  • Create additional revenue streams by licensing technology to third parties
  • Compete against walled-garden systems (Google, Facebook and the like)
  • Leverage and monetize data beyond their mobile geography.
Reasons to buy
  • The report provides a global view of the opportunity and growth trends in digital advertising, as well as the revenue models and go-to-market strategies of six leading telecom service providers.
  • This analysis is useful for telecom executives to evaluate their position vis-à-vis the major growth opportunities in digital advertising and make informed decisions about strategic investments, value proposition and growth strategies to rapidly grow their presence in the digital advertising market.
  • The report provides valuable insights about alternative revenue models and the range of product/service offerings that have helped telecom service providers to build a presence and begin profiting from the digital advertising opportunity.
  • The report’s case studies provide real examples of market approaches and strategies being employed by Telcos to build revenue opportunities in digital advertising, and how these market participants are leveraging their organizations, assets, core competencies and ecosystem partnerships to drive revenue creation activities in digital advertising.


  • Executive summary
  • Introduction: Report scope and market taxonomy
    • Report scope
    • Digital advertising defined
    • Programmatic advertising allows for efficient and dynamic ad campaigns
  • Section 1: Digital advertising trends and ecosystem
    • Digital advertising takes hold of the global advertising market
    • Mobile is the growth engine of digital advertising
    • `In-app' mobile advertising continues to expand
    • Strong video consumption fuels video advertising spend
    • Many solutions converge to create a digital advertisement
    • The digital advertising provider ecosystem is fast expanding
    • Google and Facebook control digital advertising revenues
  • Section 2: Telcos and the digital ad opportunity
    • Digital advertising offers excellent upside potential for telcos
    • Telcos are investing in ad platforms, media and analytics
    • Telcos use three core go-to-market approaches: Build, partner, acquire
    • Diverse revenue models help telcos grow in digital advertising
    • Technology makes digital ad viable for Singtel and Verizon
    • Content drives the ad business at AT&T and SFR
    • Diversified revenue models work for Telefónica and Indosat
    • Telcos can create fruitful synergies across advertising, content and data
  • Section 3: Telco advertising strategies
    • Verizon bets on advertising technology for revenue growth
    • Acquisitions accelerate Verizon's digital ad ambitions
    • Verizon prepares for leadership in the ad platforms segment
    • Scale is needed to drive Verizon's mobile advertising vision
    • Telefónica invests in data to drive the ad business
    • Telefónica targets advertisers with a two-prong approach
    • Telefónica advertising exchange enables ecosystem players
    • Further data partnerships can help Telefónica drive scale in ad tech
    • Digital advertising is a cornerstone of Singtel's long-term strategy
    • Singtel builds scale in ad technology through acquisitions
    • Singtel uses a technology-centric approach to differentiate
    • Singtel bets on digital advertising for growth
    • SFR consolidates digital advertising efforts
    • Content drives SFR positioning in digital advertising
    • SFR Régie focuses portfolio on mobile advertising solutions
    • Liberalization of user targeting laws are key to SFR's profitability in ad tech
    • Advertising helps Indosat create strategic synergies
    • Indosat mobile advertising portal leverages mobile expertise
    • Indosat positions IMX ad platform as revenue engine
    • Indosat needs to drive subscriber scale to win in mobile advertising
    • AT&T positions for digital advertising
    • Content/media acquisitions help AT&T build strengths in advertising
    • AdWorks leverages proprietary `targeting' technology
    • AT&T growth depends on driving viewership through mobile and new media
  • Section 4: Key findings and recommendations
    • Key findings: Opportunities
    • Key findings: Telco challenges and success factors
    • Recommendations
  • Appendix
    • Companies mentioned 58

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