- June 20, 2017
- Firstly Blog
By Jon Jackson, CEO
As of June 13, Verizon now owns the expansive reach of not just AOL but Yahoo!, too. The first leg of the mobile marketing success stool for Verizon is now complete. The newly named subsidiary, called Oath, certainly has an opportunity – but what about the other two legs? In order to maximize the return from any mobile ad revenue opportunity requires three things: Reach, Rates and Frequency. Does Verizon have all three covered, read on to find out…
Verizon now undoubtedly has formidable reach. The acquisitions of AOL and Yahoo! gives them the combined data sets of 1.3 billion users on all of Oath’s properties. The reach is spread among a broad array of assets to provide a diverse and wide range of digital content and advertising offerings.
Verizon is also seeking to leverage their subscriber data within the mobile ad economy to profit from higher ad CPM rates. There’s much work involved here and much uncertainty. Facebook and Google have built a significant data offering, there is much value in the operators leveraging their data on users to drive up value and by extension the CPM rates.
To optimize monetization of their subscribers, Verizon needs to drive frequent usage. It seems that this is where there is no real solution to do this, at least on the mobile side. It’s known that app retention is poor and that a whopping 87% of lifestyle content is driven by Facebook. Without a way to drive frequent content consumption, the Oath properties will exist amongst a sea of competitive icons with no real way to stand out above the others.
This is where The First Dibs Opportunity is a game changer. By owning the First Screen on the smartphone, Verizon would be able to feed Oath content intelligently to its subscribers during times of boredom. They wouldn’t be competing with app icons upon unlock. Considering that our First Dibs research shows that:
1) What people see today on unlock is flawed.
2) The Number one activity on smartphones today is finding an activity on your smartphone.
3) You can predict when someone is looking for something to do.
4) And when you give them something they want on the first screen, it’s enjoyed.
All this proves that there is a real opportunity for Verizon to truly take advantage of their digital assets in an additional and meaningful way. The First Dibs Opportunity enhances the path for carriers to be a leader in digital ad revenue – and, remember that key difference we touched on earlier? The path outlined utilizing Mobile Posse’s First Feed platform comes with NO CAPEX or OPEX expense. Keep in mind that the cost was $9B for Verizon to acquire it’s Oath properties before even factoring in the cost of having a solution for driving increased revenue.
So for carriers really looking to drive new revenue streams, especially from mobile advertising — there is a way to do it, while improving your subscriber experience, and all without paying a dime. All you have to do is call Dibs. It’s a no-brainer.