1. Operators Add Value to Mobile Advertising
Recent Industry Developments Pose Questions
about the Preeminent Role of the Operator

2. Apple announced that it is buying Quattro, a mobile • More Channels: Who ever said mobile is only about
advertising network, for $275 million. This closely follows serving smartphones through the mobile Internet, apps
Google’s acquisition of AdMob for $750 million in stock. and games? Operators have a broad variety of unique
These mega-deals could give a big boost to mobile operators advertising channels that have proven to be highly
seeking to enter and/or expand their activities in the mobile effective — such as ringback tones, person-to-person
advertising domain. SMS, MMS, visual voicemail, video and more. Also,
operators can determine the best channel (touchpoint)
These transactions take place in a background of growing to reach an individual user at any given moment. And,
activity in the mobile advertising domain, with increasing the cherry on top — the ability to reach all users through
numbers of consumer brands promoting their products multiple channels: from voice advertising on voice calls to
to consumers through the mobile phone. Some mobile multimedia advertising on IPTV.
advertisers seek to be first off the line in order to be
• Better Tailored: Operators know who their users are,
perceived as innovative, but most are eyeing the solid
what their usage profile is, and already have a trusted
potential and benefits of meeting the consumer on a one-
relationship with them. This puts the operators in a unique
on-one basis.
position to profile their subscribers and use the information
for better targeting, both for the advertiser (better returns)
Mobile Advertising for High End Devices Only?
and for the end user (meaningful, relevant ads vs. spam).
Having the computer and device giant join the Web giant This enables the advertiser to target users according to
in entering the mobile advertising market might energize relevant characteristics, such as their age, gender, income,
mobile advertising, but it might also make operators hobbies — and not settle for a list of phone numbers or IP
doubt their ability to fight back. However, this battle field is locations.
restricted to the limited (but sexy) kingdom of smartphones. • Superior Incentives: Operators are also best positioned to
The newly purchased ad networks will help monetizing the offer the most desired incentives to users, such as free or
traffic of mobile Internet, mobile applications and mobile reduced-price mobile services in return for accepting ads.
games by serving adverts. But even with the growing
popularity of smartphones, this leaves the wide arena of core Many operators have acknowledged the growing activity in
mobile services untapped. the mobile advertising arena and their unique assets, but
have been hesitant to jump in with both feet; mostly due
For channeling money into mobile advertising pipes and to lack of knowledge of how to turn into a media company
for having an educating role for the industry, the off-deck that sells ad space. The sizes of the recent deals of Apple-
campaigns championed by Google and Apple are welcome. Quattro and Google-AdMob definitely express the potential
However, the reach of their ad networks is rather limited in that Google, the advertising Web giant, and Apple see in this
comparison to what operators can offer to advertisers. domain. And it should reassure and encourage operators
that there is big business for them in the mobile advertising
The Operator Advantage market; especially when in possession of unique assets that
trump the off-deck mobile advertising framework.
Mobile operators hold key assets of great value that cannot
be replicated by any other player — even not by Quattro-
Apple or AdMob-Google.
About Comverse
Comverse is the world’s leading provider of software and systems Copyright ©2010 Comverse, Inc. All rights reserved.
enabling value-added services for voice, messaging, mobile Internet
and mobile advertising; converged billing and active customer Comverse, its logo, the spark design, Kenan and Netcentrex are registered
management; and IP communications. Comverse’s extensive trademarks of Comverse Technology, Inc. or its subsidiaries in the United
customer base spans more than 125 countries and covers over States and other selected countries. Other denoted product names of
450 communication service providers serving more than two Comverse or other companies may be trademarks or registered trademarks
billion subscribers. The company’s innovative product portfolio of Comverse, Inc. or its subsidiaries, or their respective owners. The materials
enables communication service providers to unleash the value of presented in this communication are summary in nature, subject to change,
the network for their customers by making their networks smarter. and intended for general information only.
For more information please visit www.comverse.com 2