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Five questions you wanted to ask on the SingTel-Amobee deal but were afraid to ask

Zafar Anjum | March 9, 2012
We asked these questions to two Ovum experts and here are their answers.

Eden Zoller: The prospect of generating revenues from mobile advertising is appealing to operators in a context where voice revenues are in decline, mobile broadband data bundles are becoming commoditised and consumers are unwilling to pay much, if anything for content.  All the major mobile operators have experimented with mobile advertising or tried launch a commercial proposition. But the majority have stepped back from attempts to be key players in the mobile advertising value chain.  There are of course exceptions such as Telefonica and NTT DoCoMo, Turk Telecom.

Mobile advertising is a difficult proposition for operators to get right and the key reasons most have not become strong in mobile advertising are:

- Most operators lack well-thought-through mobile advertising roadmap which means execution has been scattergun. Mobile advertising is a long-term play and requires commitment and resources

- Mobile advertising is increasingly part of a wider, cross platform play and few have been able to support a compelling, converged digital advertising proposition 

- Mobile adverting requires scale and increasingly on an international basis. This presents challenges in terms of offering geographic reach and at a more basic level, support for cross-network campaigns

- Mobile advertising is shifting towards applications/app stores, where operators (most operators) are weaker than device vendor based propositions in this space 

 

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