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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


Recommendations


THE DEVELOPMENT ENVIRONMENT FOR PROGRAMMATIC ADVERTISING


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


MONETISING DATA FOR USE BY MOBILE ADVERTSING


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


CREATING COMPELLING INVENTORY


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


ABOUT THE AUTHORS AND ANALYSYS MASON

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