SingTel Wants Amobee; Willing To Pay US$ 321 Million For Mobile Advertising.

SingTel, Singapore Telecommunications Ltd has expressed desire to buy mobile advertising solutions firm Amobee Inc. for US$ 321 Million.

US based Amobee offers mobile advertising services to operators, publishers and advertisers globally. With a customer base of over 400 Million in 25 Countries, it will be SingTel first major overseas investment since 2007. Despite the buy-out, SingTel, plans for Amobee to remain an independent company and remain headquartered in Silicon Valley. Furthermore, SingTel also wants to retain its existing management team. The focus here seems only to acquire the technology & customer-base.

Customer engagement is crucial if one wants to enhance the dismally low Average Revenue Per User (ARPU) in a vast continent like ours. Calls & SMSes are fairly routine & reach a ceiling. The only way up is to offer innovative Value Added Services & to push paid-advertisement. However, given the screen real-estate & other constraints, one needs an experienced team to manage the ad inventory.

While there are many firms striving to garner exclusive content to be offered to their subscribers, firms specializing on advertising mechanisms are rare. This is where Amobee stands-apart as SingTel claims it has means, “To empower customers to receive only relevant and customized offers and promotions catering to their needs and preferences while protecting their privacy,”. What this means is, just bombarding user with advertisement has a high chance of it getting backfired. What if the customer opts for “Do Not Disturb”?

The skill lies in serving ads most relevant & desirous to the consumers. Hence customer data & preferences have to be carefully analyzed to judge exactly what he desires. With this new acquisition, “SingTel aims to tap new opportunities beyond mobile advertising such as targeted deals and coupons as well as loyalty-rewards programs for customer”, said the company.

SingTel does own stakes in Mobile Operators in India. Lets see how it utilizes this acquisition.

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