Telecom brand analysts have bigger budget—and more pressure to justify ad spend

Brand research analysts at telecom companies work with complex, multi-channel campaigns across broadband, wireless and bundled services in a regulated market with high consumer skepticism. It’s a tough job.

In this article, I’ll discuss: 

• The current situation of telecom ad spend

• How analysts can improve ROI 

• The expansion of digital out-of-home advertising

• Why new formats require diagnostics adaptations

• How Zappi can improve predictive accuracy 

Let’s dive in.

Although the overall economic outlook is reduced, worldwide ad spend is set to reach $992 billion, an increase of 4.9% year over year. The sector set to grow the fastest is telecommunications, where experts predict an 8.3% increase thanks to 5G expansion, high speed internet demand and digital content consumption. 

At first glance, that may seem like good news for brand research analysts at telecom companies, but it comes with pressure to justify how that increased budget is spent and prove return on investment (ROI). But in an industry where consumers are skeptical, regulations are tight and loyalty steadily declining, advertising faces scrutiny from all sides. 

Consumers want it all—personalization and privacy and security. As consumers become more aware of privacy and security, they are taking action. In the Cisco 2025 Data Privacy Benchmark Study, a majority of respondents were aware of their country’s privacy laws for the first time since the survey began in 2019. Further, being aware of regulations gave consumers confidence they could protect their own data. 

As customer concerns about data privacy grow, so do those of telecom executives. Trust is critical in an industry where loyalty is low. Ramping up investments in data privacy and security (and talking about it) only makes sense. At the same time, digital transformation driven by AI automation is sweeping through all industries, including telecom, bringing both efficiencies and data security questions. 

This is the backdrop for brand research analysts in telecom who must justify how they are using increased advertising budgets. Navigating customer demands, privacy and security risks and digital transformation may feel like walking through a dark forest in a storm without a flashlight. But Zappi can help you find the path. 

Zappi’s connected insights system helps telcos develop better ads through consumer insights. In such a competitive market, understanding consumer behavior gives analysts an edge. At every stage of development, you can test, learn, succeed and improve so you can learn what works for your consumer and what they want or need. 

“The rollout of 5G technology has transformed mobile telecommunication services with faster speeds, lower latency, and a broader range of applications. However, as users become increasingly aware of data security and privacy issues, trust in 5G service providers has emerged as a critical factor influencing satisfaction and loyalty.” 

- Security, Privacy, and Trust in 5G Services: Impact on Customer Loyalty and Satisfaction in Mobile Telecommunications, Journal of Informatics Education and Research 

Trust and data privacy remain the top risks for telcos. Cyberthreats and breaches escalate as new, tighter regulations emerge. Data is crucial for offering customers personalization, but data collection heightens the role of telecommunication companies as data custodians. As companies wrestle with the internal changes necessary to fill that role, consumers want transparency about how their data is collected, used and protected. 

Along with transparency, consumers want better explanations. Research firm EY found that customers want better explanations of how companies are using AI in customer interactions. In other words, customers want the benefits of personalization that come with AI and other modern technology, but they would like to know both how and when data is collected and how it is being protected. 

Given the competitive market and low level of brand loyalty, analysts need to be able to show which campaign ideas strengthen consumer confidence. Making changes to how data is handled isn’t the same as making sure customers understand your security practices. 

“In this increasingly trust-sensitive environment, telcos can no longer sell bits and bytes at the lowest cost. They must become stewards of a more responsible, safer interconnected world.”

- Maikel Wilms, Partner & Director Communications, Amsterdam, Boston Consulting Group

Making trust part of your company’s core value proposition means making it part of every interaction within the company, certainly including marketing. Trust can become a brand differentiator and cornerstone of customer attraction and retention. People want to stay where they feel safe.

Understanding whether or not campaigns achieve the intended goals has always been a challenge in advertising and as media expands and fractures, measuring success becomes more complex. Measuring something like the number of app downloads a campaign drives is fairly straightforward; a goal to build trust requires a longer time to measure. The way that campaigns are tested and implemented also affects how results are measured. Digital out-of-home (DOOH) is a good example of how media is changing. T-Mobile’s recent $600 million acquisition of Vistar Media highlights telecom’s expansion into DOOH. Vistar describes DOOH as “the tech-savvy counterpart of traditional outdoor media.” Rather than a simple, static billboard, DOOH ads can be displayed in real-time and with the same targeting capabilities of other digital channels.

Some common locations for DOOH: 

• Highway billboards

• Urban panels

• Transit screens 

• In bus shelters

• Office buildings

• Malls

• Gas stations

• Gyms 

• Restaurants

• In big box retailers

• Convenience stores

• Liquor stores

• Pharmacies

DOOH combines targeting consumers based on place, time of day, activity, location, weather and more. The T-Mobile-Vistar deal combines Vistar’s end-to-end advertising technology and T-Mobile's trove of customer data and insights. DOOH spending is expected to reach $10.58 billion by 2028. 

“DOOH represents a unique, useful, and dynamic channel for advertising in an increasingly digital world.”

- Billboard Insider

Brand research analysts considering how to prove ROI must take into account how each channel is likely to change over time. For telcos, ignoring DOOH would be a serious mistake.

Analysts demand rigor when it comes to customer insights. Just any report won’t do. Zappi is ready to deliver the quality data brand research analysts need. Our quality score looks at 14 signals on the individual level, and we continuously assess and enhance our data quality. Our progressive platform leads to insights you can trust, and our norms are rooted in the challenges telecom faces today. 

Our connected insights bring order to the chaos of a fragmented media ecosystem. You get unified diagnostics across TV, social media, CTV and DOOH, so that decisions about allocating resources are easier to make. Plus, our AI Quick Reports compress analysis cycles, so you can make informed decisions faster. 

TL;DR

Zappi delivers:

• 60% more predictive accuracy

• Unified diagnostics across TV, social, CTV, DOOH

• AI Quick Reports compress analysis cycles

• Norms rooted in today’s telecom challenges

Learn more about how Zappi empowers telecom insights teams to deliver rigorous, fast and trusted campaign diagnostics across next-gen media.