Deutsche Telekom, Orange, Telefonica, and Vodafone are forming an Ad tech joint venture. This venture will unite Europe’s four largest telecom operators and create the continent’s largest digital marketing platform.
The platform will provide companies with online advertising access across Europe, allowing them to deliver targeted campaigns with scale.
Let’s examine this newly formed joint venture and understand how it works.
Overview of Ad Tech Joint Venture
Deutsche Telekom, Orange, Telefonica and Vodafone have announced a joint venture (JV) to develop and explore opportunities in the Ad tech space. The JV’s purpose is to bring together like-minded industry pioneers to co-create an innovative ad tech solution that will benefit media owners, advertisers and consumers and new entrants in the market.
The joint venture will work closely with a range of partners including technology vendors, media owners, market research agencies and academic institutions to shape the future of digital advertising. It aims to create an environment of trust and confidence between stakeholders across the enterprise.
The scope of the venture is broad but focused around digital advertising technology solutions tailored for each partner’s particular needs. This includes leveraging artificial intelligence, machine learning, big data processing and programmatic buying to create customized solutions for advertisers. It also aims to create a system that allows individuals greater control over their data usage while providing transparency and security throughout the process.
This JV looks set to transform Adtech into a streamlined unified platform offering greater efficiency with improved creative output across all platforms – mobile, desktop & mobile web while empowering media owners & advertisers alike by opening up access to differentiated data assets & enhanced transparency & control allowing them greater business insights and optimization capabilities than ever before.
Deutsche Telekom, Orange, Telefonica and Vodafone to form Ad tech joint venture
In 2020, Deutsche Telekom, Orange, Telefonica and Vodafone have announced plans to form a new joint venture in the ad tech sector. This joint venture will help the four companies maximize their mobile advertising revenue.
The joint venture will be led by a 50-50 split between the four operators and will offer a unified platform for the delivery of advertising campaigns. Furthermore, the joint venture will access extensive customer data from its parent companies.
This article will cover the background behind the ad tech joint venture, the services it will provide and more.
Overview of the four companies involved
The four companies at the forefront of this Ad tech joint venture are Deutsche Telekom, Orange, Telefonica and Vodafone.
Deutsche Telekom is one of the largest telecommunication companies in Europe. It has over 200 million mobile customers in more than 220 countries worldwide. The company has been a pioneer in the development of cutting-edge technologies such as 5G, augmented reality and virtual reality solutions. It is also a leader in providing digital solutions for businesses to make their operations run more efficiently.
Orange is another leading telecoms provider in Europe, close behind Deutsche Telekom regarding market share and number of customers served. The company focuses heavily on innovation and has ventured into artificial intelligence, Internet of Things solutions and cloud services. Orange also operates a successful mobile financial services platform that allows customers to pay securely with their smartphones or other digital devices.
Telefónica provides networking and connectivity services across Europe, Latin America, North America and Asia Pacific. The company’s core focus includes providing wireless broadband networks that bring low-remotion experiences to users streaming video or audio content on their phones or other connected devices while traveling worldwide.
Vodafone Group is one of the oldest mobile operators globally and claims over 420 million customers across 25 countries across five continents — Europe, Africa & Middle East, India & Asia Pacific region, Latin American region and North American region — making it a powerhouse in telecoms expertise worldwide. Its 4G network speeds are among the fastest available for stress free use for data intensive applications such as streaming videos online or playing online games with no latency issues due to its efficient global connectivity environment.
Reasons for forming the Ad tech joint venture
In December 2019, four major telecommunications companies – Deutsche Telekom, Orange, Telefonica and Vodafone announced their plan to form a joint venture for marketing technologies for telecommunications customers. This joint venture aims to bring together telecom providers’ resources and data to create a more unified landscape for advertising.
The key goal of this new venture is to provide better customer service in the digital advertising market through effective monetization of data. The joint venture would combine the assets from each partner into one platform that could be used in many ways, such as targeted offers or mobile marketing campaigns. It could also offer services that other companies do not, such as reaching across borders with global campaigns. Combining their assets and expertise into one offering gives the participants an advantage over competitors in the digital ad space.
Additionally, having access to data from the other telecom partners involved in the joint venture would give each company more data points and insights than they could generate individually. This could lead to better targeting capabilities and bring value to advertisers and users through tailored experiences based on collected consumer data. Finally, this partnership could lead to further advancements in 5G artificial intelligence networks set up according to consumer preferences.
Structure and Governance
Deutsche Telekom, Orange, Telefonica, and Vodafone have recently announced they are partnering to form an Ad tech joint venture.
The venture will be structured so that the four companies will each take part in the governance of the new entity.
The structure and governance of the Ad tech joint venture will be discussed in this article.
Ownership structure of the joint venture
The Ad tech joint venture was established as a 50:50 joint venture by Deutsche Telekom, Orange, Telefonica and Vodafone. Each has appointed representatives to the board of four directors overseen by an independent chairman. The management team is led by Chief Executive Officer (CEO), Gerard Kawas of Orange.
Deutsche Telekom has invested in various ad tech companies over the past years. It has used its global scale to collaborate with peers on initiatives such as The Trade Desk’s Open Ads Marketplace for Unified ID 2.0 and Videology’s unified customer data platform. This collaboration led to the formation of the joint venture which provides vital links between digital advertising markets in Europe and beyond, driving efficiency within the company’s core operations while delivering new opportunities to drive growth and profitability in both digital and offline markets.
The joint venture is designed with Innovation at its core, leveraging each partner’s expertise to advance data-driven advertising technology while allowing diverse teams from all over Europe to create new products that could not have been conceived prior to this collaborative effort.
Management and governance of the joint venture
The Ad tech joint venture is owned equally by shareholders Deutsche Telekom, Orange, Telefonica and Vodafone to form the Ad tech joint venture. It will be managed by a Board of Directors which consists of two representatives from each shareholder company. The shareholders appoint the Chairman of the Board on a rotating basis. The Board also appoints the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) as full-time executive officers. The newly launched venture has a clearly defined management structure that allows it to make decisions quickly to respond promptly to changing market conditions.
The management team recognises the industry’s need for ongoing innovation. It has established effective processes for ideation, development, testing and delivery of innovative solutions of unprecedented speed and scale that can only be achieved when multiple stakeholders pull together towards building success.
Besides driving business growth through new products, services and capabilities that meet customer needs; the joint venture also espouses strong corporate governance practices such as compliance with all applicable laws & regulations globally across all jurisdictions; implementing data governance measures such as efficient use of personal data according to applicable laws; providing board oversight on health & safety issues; rigorous audit processes on financials as well risk management meetings as frequently as necessary amongst other important corporate affairs matters.
Benefits
The Ad tech joint venture, formed by the collaboration of Deutsche Telekom, Orange, Telefonica and Vodafone, is set to revolutionize the digital advertising market. The venture aims to turn the digital advertising market into a more transparent and efficient space, allowing brands to reach their target audience more effectively.
This article will look at some of the key benefits of the joint venture.
Potential benefits for the four companies
The four companies in the Ad tech joint venture, Deutsche Telekom, Orange, Telefónica and Vodafone, can all potentially benefit from the arrangement. Through the joint venture, they will increase their scale to provide engaging advertising across all parts of Europe. This can enable them to access more data pools and train their machine learning models with larger datasets. In addition, by joining forces, these companies can better compete with global players like Amazon Web Services and Google Cloud Platform.
Additionally, the joint venture enables them to maximize their impact on continental ad campaigns. By leveraging their complementary strengths in screens (TVs), app-based advertising and programmatic ad buying technology, they should be able to offer larger ad campaigns that offer greater reach at lower cost. This could increase profits for the four companies participating in the joint venture — something sure to be welcomed by shareholders across each business.
Potential benefits for the advertising industry
A landmark digital advertising venture was announced when Deutsche Telekom, Orange, Telefonica and Vodafone, four of Europe’s leading telecom operators, pledged to create a joint venture dedicated to providing “transparent, privacy-friendly and secure” advertising services. This revolutionary move is expected to catalyze the European ad tech industry and change the face of digital advertising.
Experts anticipate this joint venture will bring several potential benefits for the European advertising industry. Firstly, it promises to increase transparency in the ecosystem by offering advertisers more accurate and evidence-based data on user preferences, engagement and behavior. With greater insight into user behavior and preferences, brands should be able to make better-informed decisions when creating campaigns.
Another key benefit is expected to be improved privacy protection for consumers and full compliance with relevant regulations such as GDPR. The joint venture will harness resources from all four telecom companies allowing it to provide customers with assured privacy protection across all devices in compliance with the applicable laws.
In addition to transparency and enhanced privacy protection measures, this collaboration should also improve ad effectiveness by providing advertisers insights on how users engage with their messaging in different channels, enabling them to optimize their campaigns accordingly.
Challenges
The Ad tech joint venture of Deutsche Telekom, Orange, Telefonica and Vodafone has been seen as a way for the four major telecom companies to launch their advertising platform in the competitive Ad tech industry.
However, the venture has not been without its challenges. This article will explore the main challenges associated with this joint venture.
Potential challenges for the four companies
The four companies, Deutsche Telekom, Orange, Telefonica and Vodafone, who have formed the adtech joint venture, aim to use their collective resources and shared knowledge to drive innovation in the advertising technology sector. However, there are potential challenges the businesses could face when collaborating on the project.
One of the main issues is alignment of goals; this means that while each company may have individual objectives they also need to be realistic in what can be achieved together and ensure everyone has a harmonious vision. Moreover, successfully working together requires effective management. This means establishing clear lines of communication and responsibilities between each party and having a shared understanding of how each one can work towards a common goal.
Another challenge concerns establishing credibility among peers. All four companies must demonstrate expertise to secure business contracts with third parties, which is key when partaking in any joint venture project. To achieve this they must first gain trust among potential customers by sharing existing resources such as knowledge and technology; this will prove their capabilities in delivering high-quality services reliably through consistent collaboration.
Finally, meeting deadlines can be difficult due to time zones across different countries and lack of initial coordination between all parties involved, resulting in delayed output or tasks not being completed on time. Implementing an agile methodology when managing projects may help ensure deadlines are consistently met across all four companies taking part in the joint venture.
Potential challenges for the advertising industry
As the four telecommunications companies, Deutsche Telekom, Orange, Telefonica and Vodafone, form a joint venture to create an advertising technology platform, there is potential for disruption in the market. The advertising industry may face various challenges as the new platform moves in.
The sheer size of the new marketplace poses one challenge. While other players currently exist in the digital advertising market such as Google, Facebook and Apple—they don’t offer an industry-wide service like this joint venture. Thus it may put pressure on those competitors to enhance their offerings at a faster rate. At present they are not likely to be willing to accept lower margins caused by increased competition within the sector.
A second major challenge comes from potential data privacy laws attempting to address issues raised around fairness and transparency in digital advertising. As data plays a larger role in targeting ads and understanding consumer behavior, more regulation promises greater oversight on how companies use that data — leading to additional compliance costs and complexities for advertisers.
Finally, with any new technology there is always the risk of bugs or glitches with network failures disrupting advertisers when spending large sums on campaigns with significant timing pressures. Therefore, quality assurance testing by all players involved will be vital even before launch day which could lead to unforeseen delays or misunderstandings between partners due to different interpretations of terms amongst terms regarding pre-testing protocols or post-launch long-term relationships.
Conclusion
In July 2019, Deutsche Telekom and Orange announced their intention to create an Ad tech joint venture comprising leading telecom companies including Telefonica and Vodafone. The joint venture’s goal is to create an open ecosystem connecting different Ad tech players across Europe.
The joint venture will provide a range of services to give users control over the ads they receive and enable advertisers to better connect with their target audiences. This includes tools that allow users to proactively opt-in or out of receiving ads, access Ads certified by the group, receive tailored programming based on their interests and preferences, as well as securely access relevant data for advertising purposes.
In addition, the partners also plan to launch a digital identity service that combines mobile wallet with cross business applications for audiences across all major European countries. The venture also builds on the emerging trend towards consolidation in digital advertising markets. It provides instant scale with unparalleled reach in Europe’s major markets via its four founding partners’ networks and assets.
This new pan-European Ad tech joint venture has big ambitions to do more than just improve how ads are delivered – it wants to ensure these experiences are secure and transparent for consumers, while providing insights into their preferences so advertisers can better connect with them without compromising trust or privacy.
