Driving new revenue by helping advertising companies with targeting? Here’s how T-Mobile is doing it
Earlier this week, T-Mobile announced that it will automatically enroll its phone subscribers in an advertising program informed by their online activity. Unless subscribers opt out, T-Mobile will share customers’ web and mobile-app data with advertisers starting on April 26.
It’s no surprise that carrier revenue over the last few years has seen a steep decline, which can be attributed to a variety of factors including increased strain on the network, a shift in buyer needs and expectations, and an increase in buyer power. Additionally, methods like triple-play offerings are no longer able to substantially improve ARPU.
So now, carriers are looking for ways to drive revenue, improve user experience, and increase network efficiency. With the network transitioning to a software, cloud-native, disaggregated architecture, there’s room for carriers to leverage the network data they collect and retain in order to improve overall user experience.
In this case, T-Mobile has identified a way to monetize analytics on website and mobile app usage. Providing this data to advertisers can improve the user experience and make ads relevant to each individual. Do we think other operators will hop on this trend?