Analysts at Wells Fargo Securities have confirmed that AT&T is in the process of building a mobile advertising business alongside the cross-platform video services it is working on through its acquisition of DirecTV.
FierceWireless further revealed that AT&T might be considering starting a mobile-only video service. Since acquiring the assets of DirecTV, AT&T has been bullish about its video business with all signals that it plans to introduce a wide variety of video offerings to the local market.
AT&T is wary of increasing market competition that poses a huge threat to its status as the second-largest carrier in America. Recently, the company launched unlimited data plans exclusively for subscribers of the satellite TV service and has reported that over 500,000 users have already signed to the new data plan.
A research note from Wells Fargo seen by FierceWireless points out to a very aggressive strategy that AT&T plans to employ in making sure they succeed under the new venture. “AT&T described 2016 as a ‘rolling thunder’ type of year as it moves forward in its integration of DTV. The plan is to secure the base and attract new customers with the bundled TV Everywhere/wireless product… but also create new products for new customer segments,” the note reads.
“AT&T did not rule out doing a wireless only video product. For the first time, we heard AT&T mention doing work on (the) mobile advertising side. We believe there is much more work being done here than is being messaged publicly.” The company begun trials of an integrated advertising campaign across TVs and mobile devices in November last year. The trial enables marketers to reach the same consumers with the same messages across screens, and is powered by AT&T AdWorks and Opera Mediaworks.
Wells Fargo noted that AT&T’s move to virtualized networks will help ease both its capital expenditures and operating costs over the next several years.