According to a report released by Mobile Marketing Association, the mobile ad expenditure by Indian companies is INR 300 Cr in 2013, which was INR 180 Cr last year, almost a one and a half times increase. Not only this, but if we go by numbers this market is projected to reach INR 3000 Cr in the next five years, which will be a 10 fold increase from where it is today.
In an attempt to bid on this growing mobile advertising market in the country, private telecom service provider, Tata Teleservices has recently announced that it will be offering its subscribers with free minutes for viewing ads on their mobile phones before making calls, which will indeed add up revenues to the company itself. For this, it has already signed up with a few companies to display their ads.
The service will be launched in a partnership with mAdcall Pvt. Ltd., which is a sister concern of Astute Systems.
Named as ‘GET’, a mobile advertising application will be available on the GSM and CDMA networks of Docomo and Indicom, and will be compatible with Android, Java, Symbian and Blackberry platforms.
The app can be accessed via WiFi and Tata Docomo Internet, and users will be offered free voice minute per advertisement viewed (one minute of local or national talk-time for each advertisement viewed) and will be applicable for both pre and post paid customers.
Also, as per the company mobile users opting for this service will not be charged for any data while using Tata Docomo Internet.
Additionally, the advertisement will play on the handset without buffering on 2G, 3G or CDMA network.
“The mobile users are not offered any ads if they are trying to make emergency calls, given the nature of the call being made. Also no ads are offered while making calls to toll free numbers, international calls or while in roaming in off-network locations,” said a company official.
Currently, Tata Tele has over 63 million subscribers across India.
In turns of time, telcos are beginning to realize that voice may not be the best way to earn from subscribers in time to come, hence a lot of innovation is centered around advertisements, content, value added services and of course DATA.
Though the metrics of this new revenue model is yet to be established, it shall be interesting to explore what leads the revenue stream for telcos over traditional voice.
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