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  5. > The Advertising service systems: a framework study of software needed to support mobile advertising

Communications service providers (CSPs) play a minimal role in the advertising market despite having access to comprehensive customer data and advertising inventory assets. This report discusses how advertising could provide important incremental revenue for CSPs in mature markets, and assesses the investment and expertise required to achieve this.

Table Of Contents

The Advertising service systems: a framework study of software needed to support mobile advertising

Table of contents

About this report

Executive summary

CSPs have largely missed the growth in online advertising revenue, but mobile advertising may still represent an opportunity

CSPs need to adopt three components of the mobile advertising ecosystem in order to maximise their potential revenue



CSPs need to build out software systems to support advertising processes and gain a higher percentage of advertising revenue

CSPs must support additional processes in the ecosystem if they want to add value to advertising

Telefónica's Axonix offers ad exchange with real-time bidding capability and enrichment of inventory with first-party data in a secure manner

Cinarra Systems enables SoftBank to offer a DSP to advertisers, enriched with network data for deeper insights for better customer targeting

Flytxt's mADmart brings together multiple CSPs to offer joint inventory to brands


CSPs have unique data that is not being used in the mobile advertising market for better profiling and targeting of customers

Data privacy regulations coupled with concerns about the impact on core service revenue have limited what CSPs do in the advertising market

Customer data needs to be presented in a usable format to support purchasers in their buying process

Telefónica supports the UK's transport and retail industries with insights on anonymised customer data


Advertising works when an implicit trade-off is made between the consumer of the advert and the publisher providing something of value

CSPs can create inventory assets to help them compete against large established publishers in the market

CSPs have created some successful apps, but have not been as successful in creating advertising inventory as OTT app vendors

Vodafone uses its Vodafone Select app to offer inventory to brands and generate new revenue streams

CSPs add new revenue streams by delivering apps on smartphones


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