Synchronoss Study: Brands - Telcos Better Source of Data Insights Than Google, Apple & Samsung
Latest Ovum study underlines the lucrative potential of operator customer data insights
The new study, “Brand perceptions of data insights in digital advertising - and the role of operators,” explores the value and potential of the contextual customer data operators have at their disposal to global brands. It uncovers a lucrative, relatively untapped opportunity for operators to monetize customer data insights through commercial brand partnerships.
“We’ve known for years that operators are sitting on a gold mine of contextual customer data. Studies have estimated the market to be worth potentially billions of dollars. But no one’s looked at this from the brand’s perspective – and it’s good news for telcos,” said
Addressing a Critical Problem
Of those brands that do currently know or use telco data to underpin digital advertising, 64% say that it’s of high quality and compelling. However, availability and awareness of this data remains a critical problem as most advertising agencies don’t offer it. This is surprising given how half of the brands surveyed considered the lack of good quality, actionable customer data insights as the biggest pain point impacting their adoption of mobile advertising.
Challenging the Established Order
For brands that know about and are using telco data assets, the most compelling aspect is its value as a whole rather than constituent parts (real-time location, billing and network intelligence), followed by its depth and breadth. This is a positive finding and suggests that brands have a good overall perception of telco data that can enable telcos to differentiate themselves in the data economy.
Reaping the Rewards
Most brand executives expect their firm’s total annual digital advertising budgets to increase over the next two years. More than a fifth (21%) of respondents expect that total annual advertising spend will increase by more than 25% in the next two years, while 4% are looking at punchy increases of more than 50%. Brands are willing to pay a premium for capabilities that enable better targeting. Six out of ten respondents said they would pay more for data insights and analytics that support enhanced targeting.
Woodbery continues: “These findings offer significant encouragement to telecom operators, especially as global digital advertising revenues from brands are set to soar. The ability to capitalize on this revenue is driving the global digital transformation of the operator community. Operators must arm their data with analytics and tagging if it is to lead to better digital experiences, sharper engagement and better monetization. It’s interesting that brands place operators above digital service companies like
Ovum itself predicts that total revenues from online digital advertising will grow from
Daniel Ives, 908-524-1047