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UK Mobile Operators Team Up For Cross Network Ad Offer

b257c8ea8a0abfad8ec93e222ca733ec.jpgBased on documents filed by the Europeans Commission for Consultation, three of the UK’s largest mobile networks have cast aside their differences to form a mobile advertising network.

O2, Vodafone and Everything Everywhere (created in 2010 by the merge of Orange UK and T-Mobile) will create a joint venture to offer brands the ability to capitalize on the demographic targeting information that they possess, in order to place more highly targeted ads onto mobile devices.

This news comes seems to be the latest attempt by operators to increase their advertising revenues. UK ad spend reached a record £203 million in 2011, while the global mobile payments market is looking set to hit $500 billion within the next two years.

These targeting capabilities could be a real threat to the offering of the current independent ad networks. One of the key benefits of mobile advertising is the ‘one-to-one’ nature of the media – the ability to know certain things about a consumer and deliver a relevant, targeted, sometimes personalized message directly to them. Any ad network that can offer improved targeting will have a strong advantage in the market.

The joint venture aims to offer the following to advertisers and agencies:

  • Push SMS : Brands can contact the joint venture partners to send out SMS messages to customers opted-in for marketing messages across the three networks.
  • Coupons and vouchers: Brands can place offers, coupons and loyalty cards within the JV’s mobile wallet and related apps, and have the ability to track redemption.
  • Display advertising (own assets): The JV will provide a portfolio of ad space across its assets, which include the joint-branded mobile wallet, mobile internet portals and apps.
  • Display advertising (third party assets): The JV will also be able to sell advertising across third party publishers’ mobile websites.
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