Advertising 2.0: The Battle for Cross-Platform, Personalised Engagement

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Will telcos and content companies be consigned to ancillary roles in the nascent personalised advertising market in which Facebook, Apple and Google are building increasingly strong positions? An overview of our hypotheses, and our research and brainstorm agendas.

Context

Advertising 2.0 is a key part of Telco 2.0's agenda at the special 'Executive Brainstorms' in New York (5-6th Oct) and London (9-10th Nov). These sessions, for which we've joined forces with the World Economic Forum, are for senior execs from the comms, media, banking, advertising, retail and tech sectors and part of the 'M-Commerce 2.0: how personal data will revolutionize payments, advertising and customer experiences' brainstorm.

Background - Advertisers Want to Get Personal

In Telco 2.0's research on advertising and marketing and the potental uses of personal data, we've shown how these fields are increasingly converging and generating new and innovative use cases and market opportunities. For example, the data being captured by smartphones could be used in new ways to deliver personalised advertising across a wide range of platforms from televisions to tablets to PCs, such as by using location data to determine which members of a family are at home and, therefore, which commercials to show on their television.

What's more, a personalised advert on an interactive device, such as a smartphone or a PC, can easily morph into a personalised online store, creating a compelling end-to-end experience for consumers. Similarly, in the mobile medium, an advert can easily turn into a digital coupon that can be redeemed at a local retail outlet or restaurant.

Personalised advertising generally comes in two forms. Firstly, there are pull services, which deliver adverts based on information consumers are actively looking for. For example, someone using Google Maps and Google Places to search for houses for sale might simply see an advert for a local estate agent. Secondly, there are push services, in which a thirty-year old man checking his email at 7pm might see an advert offering him a discount on dinner for two at a nearby restaurant, which is "liked" by ten of his Facebook friends. So-called vendor relationship management (VRM) systems, which serve as matchmakers between consumers and brands, could make both push and pull advertising more efficient.

The major brands' interest in personalised advertising is rising fast, increasing the relative importance of the "third screen" - the mobile phone. By 2015, mobile advertising will be worth more than $20bn, up from $3.3bn in 2011, according to Gartner.

As mobile phones begin to be used to pay for content, goods and services, marketers will also have the opportunity to use a consenting consumer's purchase history to send highly-targeted and relevant adverts to their handsets. Electronic loyalty schemes will also become increasingly sophisticated, encouraging consumers to share more information in return for personalised rewards.

Key objectives of this session

  • Identify the key sources of personal data for advertising
  • Explore the potential to use personal data and vendor relationship management systems to create highly-relevant and localised advertising across platforms
  • Identify the most effective forms of personalised advertising
Hypotheses
  • Executed well, personalised, cross-platform advertising will be welcomed by consumers.
  • Google, Apple and Facebook are building strong positions in the nascent personalised advertising market.
  • Media companies can use the personal data captured by mobile handsets to offer tailored content services, while enabling advertisers to target very specific and localised audiences
  • Search and maps-based local advertising will grow rapidly as smartphones and tablet computers proliferate.
Key questions to debate
  • How well will personalised advertising across platforms work?
  • How much personal data do advertisers need and in what form?
  • What kinds of personalised advertising will work best?
  • When should mobile advertising be used as a standalone solution and when should it be part of a broader campaign?
  • How can content companies harness personalised advertising to increase their revenues?
  • Are the Internet companies going to dominate this market, consigning telcos and content companies to ancillary roles?

For further information please visit the New York and London brainstorm sites, email contact@telco2.net, or call us on +44 (0) 207 247 5003.