Telco-Driven Advertising: The Future of Targeted Marketing in Africa

16 October 2024

By Minnie Harris, General Manager for Verticals & Markets – Group Digital Services

In a global landscape, Africa contributes a modest 0.9% to global advertising spend. Despite this, advertising feels omnipresent on the continent. Whether it’s on TV, radio, or digital platforms, adverts are everywhere. But a critical question remains: who is this advertising reaching? Are we truly connecting with our intended audiences, or are we simply casting a wide net and hoping for results?

The Data Challenge

For decades, traditional media has relied on audience analysis tools, such as diaries and surveys, to determine reach. Yet these methods often fall short. As Lambek (2016) highlights, human memory is more of a reconstruction of the past than an exact replay. This inherent limitation is exacerbated by Schacter & Coyle’s (1995) assertion that our memories are not replicas of reality. On digital platforms, the challenge continues. In a world filled with bots and automated traffic, we question whether our ads are truly reaching people or simply being served to non-human impressions. We rely on cookies and trust the data, but uncertainty remains.

Telcos, however, offer a distinct advantage. At the end of every SMS, please call me message, or display banner, there is a verified individual—an actual person engaging with a network. Unlike digital platforms, where impressions may lack clarity, telco data provides certainty.

The Telco Advantage

Mobile operators, by their nature, must comply with regulations like South Africa’s POPI Act and GDPR in various markets. This means every SIM card is tied to a real person, offering unparalleled accuracy in data collection. Each interaction, whether it’s a phone call, a recharge, or app usage, is recorded in real time. Telcos, therefore, have an edge in audience targeting and analysis because they gather first-party data directly from users. With over 248 million active users across Sub-Saharan Africa and 38 million in South Africa alone, MTN is uniquely positioned to harness this data for advertising purposes.

MTN Ads: Redefining Targeted Advertising

As the advertising arm of MTN, MTN Ads leverages this data to offer precise targeting, ensuring that brands speak directly to their intended audience. MTN Ads enables brands to target audiences based on demographics, technographics, and geolocation through telco inventories such as SMS and Please Call Me messages, which boast open rates of over 95%.

MTN Ads also integrates platform channels like Ayoba to extend reach, even offering data-free advertising. This allows for advertising that is device-agnostic and accessible to all users, whether they have data or not, and regardless of whether they use smartphones or feature phones. The power of MTN Ads lies in its ability to deliver unmissable advertising through precision, reach, and engagement. In a world where targeted advertising is key, MTN Ads provides the solution, enabling brands to connect with the right people, at the right time, with the right message.

To date MTN Ads has delivered hundreds of campaigns for brands and agencies, to note some have achieved exceptional results above industry standards. Coca Cola lead generation campaign looking to increase Coca Cola’s remarketing database campaign used Viu Premium and Disney+ vouchers to encourage users to engage with the content and register to Coca Cola’s database. It achieved an average CTR of 0.65% for targeted SMS with link and 7.07% for One Pin. Overall, the conversion rate was 14.5% over a 4-week period.

The future of African advertising is here, and it’s powered by telco data.