Battle for Mobile Advertising

Topics: Advertising, Advertising network, Online advertising Pages: 15 (4064 words) Published: June 6, 2013

Gregor Harter Pierre Péladeau Hilal Halaoui Mohssen Toumi

The Battle for Mobile Advertising A Winning Strategy for Telecommunications Operators

Contact Information Beirut Bahjat El-Darwiche Partner +961-1-336433 Hilal Halaoui Principal +961-1-336433 Dubai Karim Sabbagh Partner +971-4-390-0260 Düsseldorf Roman Friedrich Partner +49-211-3890-165 London/Munich Dr. Michael Peterson Partner +44-20-7393-3310 Mumbai Jai Sinha Partner +91-22-2287-2001 Munich Gregor Harter Partner +49-89-54525-554 Martin Reitenspiess Partner +49-89-54525-522 New York Christopher Vollmer Partner +1-212-551-6794 Paris Pierre Péladeau Partner +33-1-44-34-3074 Mohssen Toumi Senior Associate +33-1-44-34-3131 San Francisco Karla Martin Partner +1-415-263-3712 Shanghai Edward Tse Partner +852-3650-6100 Sydney Simon Gillies Partner +61-3-9221-1903 Tokyo Paul Duerloo Partner +81-3-6757-8615

Booz & Company


Currently, mobile advertising makes up just a small portion of the online advertising market. Yet its potential is high—thanks to its ability to narrowly target consumers with interactive marketing offers at any time of the day or night. That potential appears especially high when it is considered in the context of the expected development of mobile applications. Large telecommunications operators are already preparing to take advantage of this opportunity, yet the competition will be fierce. Advertising networks, Internet players, specialists in mobile ad technology, and systems integrators, too, are looking to build a strong position in the mobile advertising value chain in hopes of capturing a significant portion of this new revenue stream. If telecom operators hope to win in mobile advertising, they must take advantage of their large networks, in-depth customer data, and strong relationships with subscribers to defend their position within the mobile advertising value chain. Doing so will involve both competing against and partnering with the many other players looking to build their own positions. And they must overcome challenges surrounding privacy concerns, overly intrusive ads, and legal restraints on sending ads to subscribers who haven’t agreed to receive them. If telecom operators can do so, they will have access to a new source of high-margin revenues that will allow them to build additional digital services businesses. To that end, we offer seven specific areas of action for operators to devise winning strategies—from exploiting their customer data to building the technology necessary to deliver ads—to take advantage of this promising new medium.

Booz & Company



By 2010, the world will contain almost 4.4 billion mobile phones, a large percentage of them smartphones— making the mobile phone the single most widely used personal electronic device. It’s no wonder that mobile advertising has become such a hot topic among marketers and telecom operators alike. Marketers, always ready for new and innovative ways to advertise their products, will have the means to reach highly targeted audiences even more effectively, and operators are looking eagerly to the medium for new business models and new sources of revenue. At present, mobile advertising makes up a small piece of the overall digital advertising pie. Analysts expect, however, that by 2012 it could account for 10 percent of all digital advertising, a pie that is itself growing rapidly. At that level, mobile advertising will become a natural complement to traditional media

channels, with the potential to boost revenues enough to help fund...
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