AT&T Aims to Increase Ad Revenue

In order to boost its revenues from advertisements, AT&T Inc. (NYSE: T) is working on a new application that will allow advertisers to buy Linear TV advertisements which will be viewed on DirecTV and U-Verse. The multinational telecommunications giant teamed up with Videology and intends to roll out the new service during the third quarter.

Under this collaboration, the cellular company would utilize Programmatic, an ad buying software. The mentioned software will allow advertisers to buy guaranteed ads in advance and reach their target consumers in certain regions.

Aside from that, AT&T AdWorks also released “Video Inventory Platform,” which is a self-service automated private market place. The said application is reported to support the ad inventory of Linear TV and allows agencies to target the appropriate audiences with the suitable plan. Furthermore, the marketing content would be presented to approximately 26 million households. These households are in the 210 designated market areas.

According to the Vice President of the National Sales segment of AT&T Adworks Mr. Jason Brown, he believes that advertisers will also be able to utilize their own data, as well as from third parties, to log in to the web interface and complete some advertisement purchases. Moreover, the firm intends to maintain transparency with its clients, as the company might share data with them.

The telecommunications corporation would offer advertisers to book their space in advance in order to be placed within shows. This is not the same with other digital services which show advertisements based on the web history of the viewers. It is important to note that AT&T does not intend to limit itself to this new service. In the long run, the cellular firm can expand this service on mobile-focused products.

Through the mentioned services, the multinational telecom giant intends to ramp up its revenue generation from U-Verse and DirecTV advertisement, which will increase the consolidated operating revenue ultimately. These new services will also be a part of the company’s strategy to grow its network of DirecTV which it recently acquired.

Apart from this, the telecommunications giant also offers DirecTV services that are integrated with the AT&T network, in order to extend to the both parties’ subscribers and thereby boosting revenue. Just recently, AT&T has announced that it is planning to launch new measures to access the services of DirecTV, which would consist of PCs, smartphones, smart TVs, and tablets.

These new services are scheduled to be rolled out in the fourth quarter, and would be labeled as the DirecTV Now, DirecTV Mobile, and DirecTV Preview. It can be anticipated that the launch of the Live TV would also be integrated with the mentioned services.

The multinational telecommunications giant has reported growth in operating revenue of 22 percent on a year-over-year basis. This led the company to have an operating revenue of $42.1 billion. If AT&T’s revenue from advertising edges higher, the telecom powerhouse could register a greater growth in revenue at the end of the current fiscal year. As of 8:14 AM GMT-5 of March 7, the AT&T stock is changing hands at 37.92.

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