Strategy Analytics said telecom operators should follow the lead of Sprint, Telefonica, and Verizon and add value to the mobile advertising ecosystem and should not block mobile ads.
Network-based ad-blocking may generate negative sentiment and controversy from advertisers, publishers, and regulators though it may be perceived as a customer friendly option.
Recently mobile operators such as Digicel and Three have either commercially launched or trialed service to block mobile advertising at network level, bringing this topic to new contention.
Ad blocking has become an increasingly common practice on all digital platforms as a result of ad bloat and privacy concerns.
Even without the participation of mobile operators, the use of mobile ad-blockers has become popular.
According to a recent study by Strategy Analytics, more than one-third of mobile users under the age of 24 years in France have installed ad-blockers on their mobile handsets. “This is worrying to brands and publishers,” said Wei Shi, analyst, Wireless Media Strategies at Strategy Analytics.
Mobile operators should leave it to the market to provide the solutions consumers need. By enabling network level ad-blocking, mobile operators are alienating the publishing and advertising industries, and challenging regulators, especially in markets with strict net-neutrality rules.
Nitesh Patel, director, Wireless Media Strategies at Strategy Analytics, said telecom operators should investigate alternative opportunities to add value to the mobile advertising ecosystem. Telecoms can consider becoming data management platforms (DMPs), like Sprint’s Pinsight Media, or Verizon’s Precision Insights, or playing a role in ad-assurance to help advertisers overcome ad-fraud.
