wordpress blog stats
Connect with us

Hi, what are you looking for?

, , ,

Editorial: Telco’s Need To Lead The Mobile Advertising Charge

The more I think about it, the more convinced I am that telecom operators in India – and not ad networks, VAS companies, content creators or gaming companies – need to lead the mobile advertising charge. Advertising needs to become for them, a strong in-house function, with someone strategically working with agencies and advertisers, to figure out how to leverage advertising on the mobile. We know the reality of the telecom market in India – the average revenue per user, and more importantly, the average revenue per minute (indicative of tariff) has dropped to all time lows, where it is hoped to have plateaued.

There is a perceptible shift taking place in India towards data, and it is only a matter of time before data supercedes other Value Added Services. For some it probably already has. But there’s a problem: spends on data are cannibalistic, and from anecdotal evidence, we believe that, in a multi-SIM environment, the average balance in a prepaid account is between Rs. 20 to Rs. 40. Sure, there will be ‘Pocket Internet’ data only recharges, but I’m not sure if this mode of consumption will scale, especially since it requires a separate purchase each time.

In a media business, the alternate to subscription is Advertising, and telco’s need to start thinking of themselves as a media business, looking at another revenue stream to offset the crunch they can be expected to face. To do this, they do have their own advertising setup, one which works with their clients to offer customized advertising solutions, acquires content which they can monetize through advertising alone, or by using advertising to subsidize content.

I’m not saying that there aren’t VAS companies or agencies who can’t do this – many have tried, and some may have succeeded, but to a limited extent: it hasn’t scaled. You can’t leave it to ad networks, since they are typically bottom feeders if not doing site representation. The delivery of content and advertising can be outsourced, but right now, when both consumers and advertisers look at advertising on mobile with suspicion, as spam, it is important for someone in-house to ensure that the advertisers objectives are met, consumer experience is not spoilt, and most importantly, the telecom operators access/subscription business is not compromised. But it is important for advertising on mobile in India that telecom operators to put their weight behind it, as a strategic area of focus, and send a message out to doubters that mobile as a medium for advertisers should be taken seriously. It’s the only way mobile advertising will scale quickly.

Maybe a telco needs to take a long term punt and buy Mobile rights to the a Cricket tournament, make live streaming or live audio commentary cheap or free, and look to sell advertising.

Advertisement. Scroll to continue reading.

Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...

News

There is a need for reconceptualizing personal, non-personal data and the concept of privacy itself for regulators to effectively protect data

News

Existing consumer protection regulations are not sufficient to cover the extent of protection that a crypto-investor would require.

News

The Delhi High Court should quash the government's order to block Tanul Thakur's website in light of the Shreya Singhal verdict by the Supreme...

News

Releasing the policy is akin to putting the proverbial 'cart before the horse'.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ