A joint venture between four European carriers has been proposed to create opt-in ad targeting of mobile users. This has been seen as finding innovative ways to ensure mobile users receive relevant and contextualized advertising.
The venture will involve the four companies Esat Telecom, France Telecom, MVNO Group, and Compuserve. The details of this joint venture will be discussed in the following sections.
Definition of opt-in ad targeting
Opt-in ad targeting is advertising focused on delivering personalized ads based on consumer preferences. It targets customers who have agreed to receive tailored ads by opting in to data-driven marketing programs. This type of advertising leverages audience insights gathered over time to enhance the relevance and effectiveness of the ads presented.
The European mobile carriers have recently filed with EU regulators to create a joint venture called FairGame Alliance that would enable opt-in ad targeting solutions for mobile users. The Alliance comprises four European telecom companies: Vodafone, Orange, Deutsche Telekom and KPN/Baseco. The purpose is to create an industry-wide framework that provides transparent, user-friendly and free services for consumers, while also providing responsible data privacy protection. The carrier companies could provide solutions based on these guidelines in their respective markets.
Overview of joint venture
The European carriers file to create a joint venture for opt-in ad targeting of mobile users (the “Joint Venture”) is an initiative by mobile operators in Europe, led by Vodafone, Orange, Deutsche Telekom and Telecom Italia, to develop a platform that allows advertisers and content providers to deliver targeted advertisements and offers to users who opt-in.
The Joint Venture’s goal is twofold. First, the Joint Venture seeks to bridge the demand from advertisers and content providers for more effective and efficient means of targeting their messages with users’ expressed interests, needs and preferences. Second, it enables users to control the messages received by opting in what types of ads they would like to receive. This transparency enables greater trust between user and advertiser/content provider alike, leading to higher relevance and engagement with both sides.
The Joint Venture will have a unified framework across all participating European networks that enables consumers to easily choose what type of ad content they want delivered while protecting their data privacy at every stage of data flow from collection to monetization. In addition, consumers can opt-in at any point during their communications within European carrier networks and subscribe for personalized services that treat interests individually – rather than generic blanket advertising campaigns currently being widely dispersed across network subscribers.
European carriers file to create joint venture for opt-in ad targeting of mobile users
In a move towards creating a joint venture for opt-in ad targeting of mobile users, major European carriers have recently filed with the European Commission.
The joint venture’s goal is to create a platform allowing users to opt-in to view ads and receive rewards for doing so. This would benefit both the carriers and users, and is expected to positively affect the European mobile market.
Vodafone
Vodafone Group PLC, along with KPN, Orange and Telecom Italia, has announced plans to create a joint venture that would enable opt-in ad targeting of mobile users based on their interests. Vodafone hopes to break into the European digital advertising market by joining forces and creating this consortium. This will allow advertisers to target more than 400 million European consumers based on data points including age, gender and location.
The data collected will be anonymous, meaning that the identity of the individuals in question will remain anonymous for privacy protection purposes. Furthermore, it is important to note that Vodafone Group PLC has clarified that all users must opt-in for their activities to be tracked or used by any participating parties. The joint venture is expected to begin operations in 2021 pending regulatory approval from European authorities.
Additionally, Vodafone will provide access to rich customer data from its partner networks such as Telefonica and Hutchison 3G UK Limited as part of this initiative and agreement. This enhanced customer data can help advertisers make better targeted digital content decisions, ultimately leading to improved returns and more engaging experiences for mobile users within the European markets served by Vodafone’s affiliated partners.
Orange
Orange is a French telecommunications corporation and one of the four European carriers involved in the opt-in targeting joint venture. This joint venture aims to create a turnkey ad targeting solution for mobile users across Europe through opt-in data sharing between operators.
Orange was founded in 1994 and today is headquartered in Paris, France. It operates over 232 million customers in 28 countries across Europe, Africa and the Middle East. Orange also serves customers in Spain, Poland, Romania and Slovakia with its mobile services and its Internet of Things (IoT) solutions.
Partnering with other European carriers to develop an opt-in ad targeting solution is an important part of Orange’s strategy to improve customer experience on their networks and make marketing data more accessible for advertisers. Orange is confident that leveraging its large customer base can create a unique market opportunity for marketers to expedite access to valuable user data – with the consent of users – in real time through the use of big data analytics. The end goal is that this will lead to better targeted campaigns that deliver messages tailored specifically to each user’s interests, which will raise engagement rates across Europe.
Deutsche Telekom
Deutsche Telekom AG is a German telecommunications company headquartered in Bonn and the largest telecommunications provider in Europe by revenue. Deutsche Telekom is Europe’s fifth largest mobile operator, with 141 million mobile customers of which 25 million are on contracts. The parent company of T-Mobile and EE, the UK’s two biggest mobile network operators, has more than 170 million connections worldwide and provides services in over 100 countries.
Deutsche Telekom is one of several carriers that have filed to create a joint venture to provide opt-in ad targeting of mobile users across Europe. In November 2017, European telecoms operators Vodafone, Orange, Deutsche Telekom and Telecom Italia formed an association called European Mobile Network Operators (EMNO) to investigate creating a joint venture for opt-in ad targeting of their customers’ traffic data across mobile networks. The opt-in campaign would use user data ranging from device type and location to time spent on certain websites or apps and targeted advertising messages delivered across their networks.
Telefonica
Telefonica, the Spanish-headquartered telecommunications operator, is part of the joint venture to create opt-in ad targeting of mobile users. The holding company for Telefonica is Spain’s largest telecom company operating in Europe, Latin America and the United States. Its network covers over 40 countries and has over 319 million customers globally, with 160 million contracts from mobile operators in Spain alone. As the third largest telecommunications provider in the world, Telefonica had revenue for 2018 totaling €50.3 billion (US$57 billion).
Telefonica’s involvement in this joint venture aims to develop closer relationships with customers through data-driven marketing that focuses on individuals as well as customized services and products. Companies participating in this type of program join forces to develop tools that will help them better serve their customer base, create new sources of revenue through targeted digital ads, access more customer data while protecting customer privacy, and develop new customer engagement strategies using mobile media. Through opt-in ad targeting technologies member companies can monetize their investments while ensuring customers privacy requirements are met.
Benefits of the Joint Venture
European carriers recently filed to create a joint venture for opt-in ad targeting of mobile users. This joint venture offers a range of benefits for mobile users, carriers, and advertisers. These benefits include improved targeting accuracy, increased consumer privacy, and increased carrier ad revenues.
Let’s explore further and discuss the benefits of this joint venture.
Targeted advertising
The opt-in ad targeting joint venture between European carriers, formed in late 2018, will help improve targeted advertising efforts for mobile users. By joining forces, the companies can leverage data from their combined user base, allowing for more effective and efficient data-driven decisions on which ads to target to a bigger audience of mobile users.
The joint venture will give the carriers access to insights into consumer behaviors, including app and mobile usage. It is invaluable information for marketers to understand their target audiences and provide effective ad campaigns. This type of data analysis can also help identify potential customers more quickly due to the integrated nature of social media networks across different countries and markets.
Moreover, the joint venture will help protect individual consumers’ privacy while enabling companies to better understand how consumers interact with their various digital platforms. The carriers have agreed not to share or sell private or personal customer data with advertisers tracking opt-in advertising activities as part of this agreement. This ensures that subscribers are only exposed to relevant and appropriate types of content while protecting their privacy.
Improved customer experience
The joint venture between European telecom carriers offers an improved customer experience by targeting personalized advertisements and offers directly to mobile users. This opt-in ad targeting approach ensures that customers receive only ads that interest them, creating a more personalized connection between the user and the advertiser. In addition, this targeted approach also provides financial benefits for both parties, as the consumer receives more relevant advertisement, while the carrier is compensated for delivering those messages.
The opt-in system also ensures privacy protection for mobile users that have opted in – their data is only used anonymously and no customer identifiable information (CII) can be released unless they explicitly authorize it. Furthermore, consumers who do not wish to participate can easily unsubscribe from any message sent using this service, giving customers total control on what kind of advertising they see. On top of this, it also allows advertisers to reach users more meaningfully by reaching out with only those advertisements that would cater to their specific interests and needs.
Increased revenue
The Joint Venture between European carriers represents a significant opportunity for mobile operators to generate additional revenue. By partnering, the carriers will access a much larger pool of data points. As a result, they can offer advanced ad targeting services not currently available to individual operators. This will allow the members to leverage the power of opt-in ad targeting and potentially increase their earnings by hundreds of millions annually.
Implementing such a system means that platforms with extremely limited ad space, such as social media networks and online video services, can benefit from more precise targeting capabilities. Furthermore, this system can provide valuable insights into customer behavior and purchase patterns, enabling brands to build more effective marketing strategies. Additionally, leveraging the joint venture’s collective data base reduces duplication in target
selection from carrier-owned databases, saving costs in the process.
As more customers opt-in to participate in targeted advertising campaigns, revenue generated through this joint venture is expected to increase dramatically over time due to economies of scale and associated cost savings. Results have yet been seen as its members still expect full approval – but it could represent an invaluable new source of income for mobile network operators that embrace it.
Challenges Faced by the Joint Venture
The European carriers’ joint venture for opt-in ad targeting of mobile users is an ambitious
project aimed at providing more options and better control over mobile user data. However, the venture faces several challenges and obstacles that may prevent it from succeeding.
This section will look at the pros and cons of the joint venture, as well as its challenges.
Regulatory hurdles
Numerous regulatory hurdles must be cleared as European carriers plan to create an opt-in ad targeting joint ventures for mobile users. For this venture to gain approval from the European Union’s competition authorities, the companies involved must prove that the joint venture will not create a monopoly, limiting choices and enabling them to raise prices and harm consumers.
Additionally, data privacy laws in Europe are extremely stringent and will require the companies to abide by strict regulations regarding the gathering and usage of personal data collected from users. Therefore, strict measures have been implemented to protect individual user privacy rights and prevent any misuse of user data by companies involved in the joint venture.
Furthermore, the carriers must prove that their opt-in ad targeting procedures comply with European Telecom rules regarding data roaming fees, net neutrality guidelines and much more. To gain approval from competition authorities, they will have to demonstrate adequate measures to prevent any potential discriminatory actions towards borrowers or subscribers.
These challenges all come together to form a complex web of issues facing the formation of this proposed joint venture. It is clear from these requirements that it will be no easy feat for these companies to receive approval for this opt-in ad targeting regime.
Privacy concerns
One major challenge the proposed joint venture involving European mobile carriers faces is public concern over privacy laws. For instance, when the joint venture was announced in July 2013, many consumers raised concerns about their personal data and how it will be used.
While the carriers have emphasized that all data gathered through the joint venture would be anonymized and that users can opt-in or opt-out of sharing their data with businesses, there are still questions about how secure such data will truly be and what kind of penalties exist if a breach occurs.
While a comprehensive review found that the joint venture does comply with existing EU legislations regarding privacy, it is up to each carrier involved to ensure that such regulations are followed at all times.
Conclusion
The European carriers’ joint venture to create an opt-in ad targeting service of mobile users is an effort to launch a unified platform that will responsibly monetize the customers’ data. In addition, this endeavor seeks to provide mobile users an easy way to voluntarily share their data with companies who want to personalize their ad experiences while enjoying complete control over their shared information.
The joint venture will be represented by a consortium of 11 leading telecommunication companies based in Germany, Spain, France, Italy and United Kingdom including Deutsche Telekom, Vodafone Group PLC, Orange S.A., Telefonica S.A., BT Group PLC, Telecom Italia SP, Wind Tre SpA, KPN N.V., Proximus Group S.A., Swisscom AG and Telenor ASA. Operations from the joint venture platform are expected to begin by mid-2021 at the earliest.
The opt-in ad targeting service seeks to offer customers more control over their personal information that often becomes monetized by third parties without the user being aware of it or having any say in its use. With this joint venture’s service, users can opt-in or out of targeted advertising campaigns depending on how they feel about them and still retain control over their data while enjoying quality customized digital services and ads tailored just for them while respecting user privacy regulations Europe and beyond.
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