In its bid to challenge Facebook Inc (NASDAQ:FB) and Alphabet Inc (NASDAQ:GOOGL) in online advertising, Verizon Communications Inc. (NYSE:VZ) is seeking the help of its rivals in the telecommunications sector. After acquiring Yahoo’s core internet business, Verizon is looking into ways of developing data partnerships with wireless carriers such as Telefonica and Vodafone according to sources.
The intention of Verizon is to get access to data of wireless consumers which can then be used in ad targeting. Besides their size and vast reach, data sets belonging to consumers around the world is what has assisted Facebook and Google achieve their dominance in online advertising as this allows the targeting of audiences in a highly efficient manner.
Digital advertising assets
Prior to acquiring Yahoo, Verizon had also purchased AOL and now both digital advertising assets are under the Oath umbrella. Two years ago after acquiring AOL, the chief executive officer of Oath, Tim Armstrong, acknowledged how powerful the data Verizon held was and how, when combined with the large audience and the advertising technology of AOL, it could be used to compete with both Facebook and Google in ad targeting.
Some of the data that Verizon holds concerning its customers includes what apps they are fond of using, where they travel and where they live. This sort of data can assist in displaying more relevant ads to these customers as they browse the internet.
Paltry subscriber base
One drawback, however, is that Verizon has a subscriber base of approximately 150 million people in the United States. That is paltry compared to the massive audiences that Google and Facebook boast of. To make up for the shortfall Verizon could license the data that other major wireless carriers have and add to the base it already has.
And by collaborating with wireless carriers such as Telefonica and Vodafone, Verizon would be able to expand its footprint beyond the confines of the United States.
Verizon’s advertising plans comes in the wake of reports that the giant wireless carrier will not allow use of email addresses offered by AT&T Inc. (NYSE:T) subsidiaries such as att.net or bellsouth.net for logging in to Tumblr or Flickr accounts.
On Tuesday shares of Verizon Communications Inc fell by 1.99% to close the day at $44.84.