Why am I getting ads for this toothpaste? How could my devices possibly know I'm in the market for a new tube? Did they hear me mutter something about running low? Do they know I jotted it down on our grocery list?
Today on TeleGeography Explains the Internet, we're asking the big questions about mobile advertising.
While TeleGeography has a good deal of mobile data, I must be honest. I have no idea how mobile advertising works and what the telecom-minded among us should know about it. Luckily, Ross Flynn of the Mobile Ecosystem Forum is with us to explain, which is what we do on this show.
Ross has a background in digital advertising, making him the ideal person to walk us through advertising formulas that pair ads with IPs, giving us all the eerie feeling that we're being watched. (In truth, the reality might be a little simpler than being surveilled 24/7.)
He walks us through programmatic advertising—not just what it is, but how the practice impacts the mobile market. And then we get to the fun stuff: how do these advertising practices actually impact the mobile market? Is mobile advertising evolving? Does it present unique opportunities? Is it all totally nefarious or am I just feeling conspiratorial after getting that curiously-timed toothpaste ad?
Listen to our conversation below to find out.
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Key Takeaways
Programmatic advertising is the modern, automated method for buying and selling digital advertising space.
It's an algorithmically driven process where software handles the automated buying and placement of ads in real time. When you open a browser or app, an auction called real-time bidding takes place in microseconds for the ad space you see. This system allows advertisers to apply layers of targeting based on various criteria like demographics, interests, or past actions, enabling personalized ad experiences.
Programmatic advertising presents a significant opportunity for telecom operators.
Telcos are realizing they sit on a "gold mine" of data, including location and customer behavior information.
By leveraging this data, telcos can monetize it for advertising purposes in a privacy-driven way. This helps them diversify their revenue streams and move beyond being seen solely as a commodity network provider, using their infrastructure to create additional value.
The programmatic advertising industry is navigating challenges in data privacy and fraud, driving innovation in targeting and anti-fraud efforts.
The increasing scarcity of good data due to privacy concerns and the deprecation of third-party browser cookies necessitates a greater reliance on consented first-party data (data shared directly by consumers with a company).
This data is becoming increasingly valuable. There is also a shift from behavioral advertising (based on past actions) to contextual advertising (placing ads on sites likely visited by interested users). Ad fraud is a huge and growing issue, with various types of scams existing on the open market. Organizations like MEF facilitate discussions and develop frameworks, such as a content and advertising fraud framework document, to help the industry understand and combat fraud collaboratively.
Greg Bryan
Greg is Senior Manager, Enterprise Research at TeleGeography. He's spent the last decade and a half at TeleGeography developing many of our pricing products and reports about enterprise networks. He is a frequent speaker at conferences about corporate wide area networks and enterprise telecom services. He also hosts our podcast, TeleGeography Explains the Internet.
