Operators still have a role in mobile advertising

28 January 2010

If there was any doubt over the opportunity that mobile advertising presents, Apple’s acquisition of mobile ad network Quattro (nma.co.uk 5 January 2010) and the Google-AdMob deal from last year have cleared it right up.

At the same time it’s important to point out the advantages mobile operators can offer advertisers which these partnerships won’t benefit from. The acquired ad networks will help with monetising mobile internet traffic, apps and games through the insertion of ads. However, huge opportunities are being missed in not tapping into core and traditional mobile services, even with the growing popularity of smartphones.

Mobile operators hold key assets of great value that can’t be replicated by any other player in the value chain, not even by ad networks. First, operators have access to more channels than pure mobile internet display ads, from ringback tones to P2P SMS/MMS, visual voicemail, video and so on. The options are almost limitless, meaning ads can reach all users regardless of their phone type. Second, operators know their users and their interests, so information can be tailored to reduce the risk of spam and irrelevant ads. And third, operators can offer incentives such as free or reduced-price mobile services in return for receiving ads on your phone.

The size of these recent deals shows the huge potential Google and Apple see in this industry, and it’ll boost mobile operators seeking to enter or extend their activities in this new domain, especially when they have unique assets that trump off-portal mobile advertising.

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