Telco 2.0 Report Summary: Telcos' Role in Advertising Value Chain

Telcos’ Role in the Advertising Value Chain Market Study – Executive Summary www.stlpartners.com/telco2_research-analysis_ad-funded.php Chris Barraclough, STL Partners with support from Alan Patrick, Broadsight March 2007 Chris Barraclough [email_address] +44 (0)7932 043 808; +44 (0)207 193 9585; Skype:chrisbarraclough

About STL: Driving Innovation & Growth in TMT 1. Events Research Training Ventures Consulting 1. Telco, Media, Technology ABOUT STL www.stlpartners.com/ www.stlpartners.com/telco2_research-analysis.php www.stlpartners.com/telco2_workshops.php www.telco2.net/event/index.php Supported by our free blog: www.telco2.net/blog

STL Consulting Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Education & Training Strategy Development New Proposition Devt Business Case Development Project Management Support Frontline GTM support STL’s ‘ Mindshare’ tools and techniques for value innovation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],ABOUT STL

About Broadsight ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Contact Alan Patrick www. broadsight.com [email_address] Weblog www.broadstuff.com ABOUT BROADSIGHT

Contents I ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],CONTENTS

Contents II ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],CONTENTS

Contents III ,[object Object],[object Object],CONTENTS

Advertising is seen as a future source of revenue growth for operators but ad-funded core services (voice & messaging, ringtones etc.) will not be attractive ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2006 2010 Telecommunications vs Global Advertising vs On-line & Mobile Advertising ($billions) $2,000bn $2,490bn $425bn $533bn $30bn $62bn Fixed and Mobile Telecoms Global advertising On-line and mobile advertising Source: Telecoms Industry association, Datamonitor, Zenith Optimedia, Broadsight and STL Partners Analysis EXECUTIVE SUMMARY

The big opportunity for operators is to develop a large-scale advertising enablement platform ,[object Object],[object Object],[object Object],[object Object],[object Object],Source: STL Partners Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],EXECUTIVE SUMMARY Telco Operators Consolidated/ Unified Fragmented Mobile Advertising: $0.8 billion Other ‘Platform’ Players* *Ad Servers, Website publishers, Search engines, Aggregators On-line Advertising: $24 billion Future Mobile & On-line Advertising? $100+ billion? Lots of operators & start-ups ‘testing’ market Google, Yahoo! and MSN dominate search, Aegis and DoubleClick dominate campaign management: little value to operators Consolidated/ Unified The On-line and Mobile Advertising Market Map

To develop a large-scale platform and sustainable business model, operators must work together – success is dependent on industry-wide cooperation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],50p for Advertising £1 for Content Advertiser 20p wholesale data charge (based on VALUE of content/ad) Ad/Content Distributor Operator 10p Ad Share Customer/other data Discounted Content & Ad Potential Content & Ad Business Model: Flat-Rate Downstream, Variable & Value-based Upstream See page 98 for more details. Source: STL Partners & Andrew Bud, MBlox Consumer £1.50 for Content EXECUTIVE SUMMARY

Telcos need to provide an end-to-end ad platform solution – this will require strong partnerships across the value chain and best-in-class CRM tools ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Publishing Consumer Targeting Distribution Creation & Production Consumer Current Telco platform focus ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Potential Telco platform focus How broad is your advertising platform? Source: Broadsight and STL Partners Analysis The new Telco 2.0/GSMA Market Study provides guidance on how to achieve this. Details: www.stlpartners.com/telco2_research-analysis_ad-funded.php [email_address] EXECUTIVE SUMMARY

Telco 2.0 Report Summary: Telcos' Role in Advertising Value Chain

Recommended

Recommended

More Related Content

What's hot

What's hot (19)

Viewers also liked

Viewers also liked (20)

Similar to Telco 2.0 Report Summary: Telcos' Role in Advertising Value Chain

Similar to Telco 2.0 Report Summary: Telcos' Role in Advertising Value Chain (20)

Recently uploaded

Recently uploaded (20)

Telco 2.0 Report Summary: Telcos' Role in Advertising Value Chain

Editor's Notes