Deutsche Telekom, Orange, Telefonica and Vodafone recently announced they are forming a joint venture to create an advanced advertising technology solution (Ad tech). The four companies have come together to harness the power of cutting-edge advertising and marketing technologies to revolutionise customer experiences in Europe.
This joint venture marks a major move for media players into the growing digital space and could shift how companies engage with their customers.
This joint venture will leverage the reach and capabilities of these four industry giants across multiple continents, creating a more comprehensive media landscape. Furthermore, as the demand for personalised solutions grows, this joint venture offers a viable solution that embraces the potential of data-driven technology and consumer insights. With this partnership, all four companies aim to take advantage of their strengths to deliver innovative digital solutions tailored for European customers.
Deutsche Telekom, Orange, Telefonica, and Vodafone are forming a joint venture to create a new player in the Ad Tech market. This joint venture will bring together leading mobile operators to create a unified mobile advertising offering tailored to their respective markets.
This venture will combine the operators’ strengths in ad tech, deep customer insights, and large mobile footprint to drive targeted mobile advertising solutions. The venture will be named 614 AD Tech.
Deutsche Telekom, Orange, Telefonica and Vodafone to form Ad tech joint venture
Deutsche Telekom, Orange, Telefonica and Vodafone are four of the world’s leading telecommunications companies (telcos). These four companies have formed a joint venture called “4Descale” to build advanced ad technology solutions.
The joint venture will initially focus on creating a standard advertising platform built on artificial intelligence and machine learning to enable marketers to target audiences more accurately.
The joint venture aims to promote “scalable brand safety” by leveraging new data-driven approaches such as AI/ML-powered verification and classification systems. This will reduce false positives and enhance accuracy when categorizing offers within certain markets, helping increase efficiency in programmatic buying for telcos and their customers.
The joint venture aims to create an industry-wide network for telcos to share their data efficiently to offer unique solutions tailored to customers’ needs with greater transparency. This will allow them to develop more effective ad campaigns that generate stronger return on investments (ROIs). In addition, the four telcos hope that 4Descale’s increased efficiency in programmatic buying will help them provide better quality customer service while reducing costs associated with marketing activities.
Who are the partners?
Deutsche Telekom, Orange, Telefonica and Vodafone are four leading telecommunications companies in Europe that have aligned themselves to form a joint venture to specialise in Ad tech. The four companies have come together intending to offer data driven solutions to marketers while giving customers more control of the online advertising experience.
Deutsche Telekom, based in Germany and operating across Europe, is one of the continent’s largest providers of Internet access and television services. With Orange providing services to over 270 million customers in France and other European countries such as Spain, Poland, Belarus and Moldova, it is known as a leader in innovation throughout its various markets.
Spain-based Telefónica provides mobile phone and internet services worldwide, focusing on Latin America. Lastly, Vodafone Group plc is a British multinational telecommunications company going beyond providing network access but investing heavily in mobile applications such as VoIP messaging service Viber, music streaming service Spotify and payment solutions.
Together, these four companies provide expertise from a wide range of markets worldwide while forming their new joint venture specialising in Ad tech to provide data-driven solutions to digital marketers while also advocating for customer control over online advertising experiences through digital transparency tools such as GDPR compliance measures.
What are the objectives?
The formation of the joint venture between Deutsche Telekom, Orange, Telefonica and Vodafone is part of a concerted effort to explore innovative ways to reach customers. The key objectives for this endeavour are:
• To create a leading European Ad Tech Platform: The joint venture will provide European access to data-driven advertising technology tailored for individual customers.
• To enhance transparency and trust: This collaboration will ensure fair practices and foster trust in developing a harmonised market for digital media buying at scale.
• To promote open innovation: This initiative should drive open innovation by establishing an application programming interface (API) based ecosystem that brings together providers from all services and communications industries.
• To optimise use of technologies: By introducing advanced technologies such as artificial intelligence, automation and machine learning into programmatic advertising, this new ad tech solution can accurately target audiences with highly personalised ads.
• To improve customer experience: By reducing the time advertisers spend finding meaningful audience insights, this new platform should improve the customer experience by providing relevant insights faster.
Benefits of the Joint Venture
Deutsche Telekom, Orange, Telefonica and Vodafone have announced the formation of a joint venture, known as “New TV”, which aims to provide customers better advertising, content and video services.
The joint venture will bring several benefits to providers and customers. This article will explore why Deutsche Telekom, Orange, Telefonica and Vodafone have chosen to form this joint venture, and what the benefits might be.
The four telecom giants – Deutsche Telekom, Orange, Telefonica, and Vodafone – have formed a joint venture. This joint venture aims to give them access to the fast-growing digital advertising market.
By forming this joint venture, the companies will be able to increase their collective market share in the ad tech industry. Furthermore, working as a single entity will help them deliver more value to advertisers and publishers, as they can now offer access to more than 600 million users across Europe and Latin America. This will increase their reach significantly among both advertisers and publishers.
Furthermore, since each company brings something unique regarding technology or expertise, they can combine their strengths for an even stronger offering in digital advertising. This will enable them to compete on an even larger platform in the digital ad tech arena.
The pooling of resources between these four telecom giants offers several distinct advantages that make joining forces an attractive opportunity for all parties involved in ad tech ventures. The companies have benefited from increased market share by forming this joint venture and stand poised for long-term success in the ad tech arena.
Improved customer experience
The formation of the joint venture announced by Deutsche Telekom, Orange, Telefonica and Vodafone is intended to enhance the customer experience in the online advertising industry. The new Ad tech joint venture is expected to leverage the strengths of each company’s global customer base to create more targeted advertising campaigns with increased efficiency. Through this collaboration, customers should experience a much more personalised online ad experience that can provide them with more relevant products and services at competitive prices.
The consortium will leverage their customer data and global customer base to create new technologies that match customers’ profiles with those of advertisers. By integrating the various networks and customers among Deutsche Telekom, Orange, Telefonica, and Vodafone, creating profiles based on specific interests or demographics can be simplified while preserving customer privacy.
This form of strategic targeting will allow brands to reach their most promising target demographics and create cost savings for advertisers and customers. Furthermore, combined data science capabilities across these four companies will allow them to develop robust machine learning models that help further enhance campaign targeting, thereby significantly improving customer engagement results.
In addition to improving targeting efficiencies, the joint venture may also provide better ways for advertisers to measure how successful each ad campaign has been, allowing them to further optimise their campaigns for improved marketing performance. By combining data sets from four major telecommunications companies with cutting edge data science techniques, there are a lot of possibilities for mitigating risk through minimising inefficiencies of campaign delivery and driving returns on investments by delivering greater user engagement at a lower cost.
Increased efficiency
The four major companies forming the Ad tech joint venture are Deutsche Telekom, Orange, Telefonica and Vodafone. This joint venture will bring increased efficiency to the online advertising market. Working together allows for a more coordinated approach to buying media, faster implementation of campaigns and a better understanding of campaign performances. In addition, the collective power and resources of this joint venture make it easier for marketers to utilise the services at scale and aid in creating stronger negotiation power when dealing with vendors.
Through this partnership, companies participating in the venture can avoid duplication of efforts, create optimised campaigns utilising precise targeting and maximise operational efficiency while remaining agile and flexible.
The unified solution brings improved quality performance regarding campaign placement and ad delivery; allowing accomplished results across all digital channels with a full view into engagement rates—for better ROI visibility. It also provides an easier way for campaigns to be deployed across multiple channels with just one timeline—allowing integrated campaigns that reach customers on every device they might use. By reducing technical investment and providing transparent cost structure among all participants within the Ad tech business model, this collective effort unlocks commercial opportunities of far greater scale than any company could achieve alone.
Challenges of the Joint Venture
The four major European telcos Deutsche Telekom, Orange, Telefonica and Vodafone announced their plan to form an ad tech joint venture. This joint venture is designed to help the telcos provide a more unified and effective online ad experience for their customers and partners.
Although there are many potential benefits of this joint venture, some challenges also need to be addressed to ensure its success. In this article, we will look at some of this joint venture’s challenges.
Regulatory challenges
One of the major challenges for Deutsche Telekom, Orange, Telefonica and Vodafone as they form their new ad tech joint venture is regulatory hurdles. The companies involved in the newly established joint venture will have to comply with a large number of regulations across multiple jurisdictions.
The different policies in different countries regarding data protection can be particularly challenging for the new venture. Additionally, in the countries where antitrust laws are particularly strict, such as Europe, it could be a struggle for the joint venture to obtain clearance from local competition authorities. Furthermore, national regulators may require that marketing data collected by AdTech be held locally; this could create issues due to differences between jurisdictions on data protection policies.
Finally, local governments may raise concerns over competition by sharing customer data. Companies involved in any kind of activity related to digital advertising must also adhere to GDPR (General Data Protection Regulation) compliance standards which can be onerous and costly to keep up with across multiple jurisdictions.
By understanding the regulatory complexities of various countries and considering local laws, Deutsche Telekom, Orange, Telefonica and Vodafone can ensure their joint venture is successful globally.
Cultural differences
For any joint venture between entities of different nationalities to succeed, it is essential to overcome cultural differences. Each business has its own culture based on its geographic area, the industry, or a combination of both. A successful joint venture will require a common understanding to balance each participant’s expectations and management approaches for all parties to benefit.
Deutsche Telekom, Orange, Telefonica and Vodafone represent four unique cultures due to their nationalities in this joint venture. Observing the partner’s cultural influences can be an important first step towards understanding how each company perceives success. One global concern regarding such collaborations is whether they are likely to lead to adopting one successful strategy or approach by all four entities.
When looking at why Deutsche Telekom, Orange, Telefonica and Vodafone have decided to form this joint venture in ad tech specifically, recognizing the need for different cultures can be beneficial due to the rapid changes in such a fast-paced industry. This being said, there are also social benefits with collaboration being key as technology becomes increasingly complex.
Therefore, all companies must strive for a productive alignment between their various corporate cultures while also focusing on implementing best practices as they develop their joint venture into an innovative leader in the digital advertising space.
Technological challenges
For many years, the complex technological challenges between Deutsche Telekom, Orange, Telefonica and Vodafone have limited their ability to create a unified advertising platform under one umbrella. While these four major players have had an idea to form a joint venture in this field since around 2016, it has taken numerous teleconferences and negotiations to successfully build the project’s foundation.
The idea behind this joint venture is that by pooling their knowledge and resources together into a single platform, these companies can benefit from increased revenues through digital advertising campaigns. This will not just help them remain relevant and competitive but will also enable them to increase profits without significant investment in new technologies or specialised staff needed for managing large-scale campaigns.
However, setting up such an ambitious undertaking comes with several technological challenges due to the different strategies each telecom giant uses and their individual infrastructure. Major hurdles include:
- Creating a data model designed for large quantities of high-quality customer information.
- Gaining access to user activities across platforms.
- Managing assets like video content and websites.
- Offering insights for improved targeting.
- Providing end-to-end campaign tracking with attribution accuracy.
- Developing advanced forms of measurement and analytics.
- Offering fraud prevention measures within the system.
- Ensuring privacy compliance while collecting data from all sources.
- Merging bid management systems among participants within one platform and rolling out all services in multiple languages on different markets.
Conclusion
The formation of a joint venture by telecommunication giants Deutsche Telekom, Orange, Telefonica and Vodafone seeks to provide a simpler and more accessible ad-tech marketplace for greater media spend efficiency. This unified front also reduces the risk of stifling competition from outside ad-tech players and enhances cost efficiency.
This venture provides the four operators access to each other’s’ customers, allowing for more diversified revenue streams for all parties. While this is great news for the industry, there are still challenges to overcome such as privacy concerns and the need to keep up with changing customer needs. Ultimately, this joint initiative has great potential to benefit the entire advertising ecosystem in digital media buying.
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