With the rapid proliferation of mobile connectivity over the last several years, mobile advertising has become the largest digital advertising segment, accounting for nearly three quarters of the total global digital advertising revenue in 2020.
The proliferation of 5G technology will help to accelerate this trend, opening up new opportunities for both advertisers and publishers around the world. As the number of mobile 5G connections increases over the coming years, supported by the emergence of new business cases in areas such as IoT, the number of client engagement opportunities will also multiply, creating new growth opportunities for telecom operators.
Mobile advertising allows telcos to leverage their mobile market expertise, content, and subscriber data to diversify and grow their business. Telecom operators across the world are using different revenue models to benefit from the digital advertising opportunity. Some telcos are building capabilities in ad platforms to build global scale and monetize their precious data assets in the open market.
Others are focusing on building rich arsenals of digital media and content as a way to differentiate and build up viewership on which to sell and deliver advertising. Some others are taking a more holistic approach to the market and to try to build a presence across the value chain.
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While the go-to-market trajectory and strategies vary from telco to telco, leveraging the ownership of valuable customer data is central to the telco value proposition across the board.
As learned from Google and Facebook, accurate data capture and insight creations are key to successful digital advertising. Telcos diving into this space know this and are taking steps to differentiate their data offerings through integration of data resources for superior ad targeting.