Industry news

Telecommunication firms will 'reap benefits' of ad revenue

Telecommunication providers are well placed to win advertising revenue, new research says.

It is expected to raise more than $12 billion (£6.5 billion) for carriers in the next three years, the report from Gartner shows.

Research director for the firm, King-Yew Foong, says telecommunication firms will need to "differentiate" the way they approach advertising, highlighting the competition presented by mobile telephone operators and online companies.

He believes they will need to deploy a variety of digital mediums in order to most effectively communicate their message.

Gartner's report says telecommunication carriers have "inherent" strengths that can help in developing their advertising strategy.

These include pre-existing relationships with customers, multiple channel access and knowledge of local markets.

Mr Foong believes telecommunication carriers that reliably deliver relevant advertisements to their customers will "reap the benefits".

Earlier this month, Gartner reported global spending on IT was going to exceed $3.4 trillion during 2008.