Telco Targeted Advertising – Take 2

Telco Targeted Advertising – Take 2

Targeted Advertising is relaunching?
Pelephone explains the new Targeted Advertising model

PWC ME launched a report earlier this month (here) revealing insights from the Middle East and Africa from the firm’s annual Global Entertainment and Media Outlook for 2015-2019. The PR headline reads “New opportunities for advertisers in the Middle East and Africa by using data analytics”.  Highlights include

  • The mobile device is now the digital extension of the individual, sitting at the heart of their personal proximity network and constantly monitoring their activities and surroundings
  • Middle East and Africa mobile internet subscribers are expected to grow at a CAGR of 21.9% from 2014 to 2019
  • Internet and video grows the fastest in advertising spend from 2014-2019, at a CAGR of 12.1% and 10.8% respectively

According to Advertising Age this is $24 Billion Data Business that Telcos don’t want to talk about (here).  AdAge – U.K. grocer Morrisons, ad-buying behemoth GroupM and other marketers and agencies are testing never-before-available data from cellphone carriers that connects device location and other information with telcos’ real-world files on subscribers. Some services offer real-time heat maps showing the neighborhoods where store visitors go home at night, lists the sites they visited on mobile browsers recently and more.

While this business case has been around for a while now, in the form of Telefonica’s Smart Steps (here) and the like, there is a new emerging opportunity that is somewhat different.  The new Targeted Advertising opportunity revolves around using Telco data analytics to refine the targeting of the advertising.

Operators are using their wealth of analytics and customer metadata offer targeting advertising optimization to publishers.  Last month at Network Intelligence World (here), the Israeli operator Pelephone presented a short but fascinating case study on how they are partnering with DPI vendor Allot Communications to create their targeted advertising platform.  Pelephone’s Head of Marketing described how the likes of Google and Facebook had had an iron grip on advertising for too long and there was no reason why operators couldn’t do the same.  Operators and vendors claim these types of solutions are surgically targeted and will result in dramatically increased response rates.  They also claim the solutions are complete anonymized and that no personalized data is being provided to 3rd parties.  The next generation of targeted advertising seems to be well underway.

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