T-Mobile on Monday moved to expand on its advertising and analytics group with the acquisition of Octopus Interactive, a company that operates interactive video screens in rideshare vehicles like Uber and Lyft, according to the announcement.
Octopus Interactive, now a division of T-Mobile, works with clients like Audible, Fox Entertainment and Philo, and provides geotargeting capabilities that help brands craft more relevant messages to riders.
The deal supports T-Mobile's Marketing Solutions unit. Drivers using Octopus Interactive's technology will receive network support from the carrier.
QR codes convert well among the “captive” rideshare group, especially the younger crowd, according to Matt Stein, head of brand & creative strategy at Philo. He believes Octopus allows Philo to highlight its library of rich media content and drive awareness among a younger, tech-savvy demographic.
“With this move, we’re expanding our toolkit for marketers, meeting the needs of advertisers and empowering brands to better connect with consumers, beyond linear and traditional digital channels” stated Mike Peralta, vice president and general manager of marketing solutions, a division of T-Mobile. “As the Un-carrier, we’re committed to disrupting the ad tech space. We’re making good on that commitment through innovative solutions, like Octopus.”
Digital out of home has rebounded since the onslaught of COVID0-19 a couple of years ago. OOH advertising revenue increased 38% in the third quarter of 2021 compared with the previous year, accounting for $1.75 billion, based on figures released by the latest Out of Home Advertising Association of America (OAAA) OOH Ad Revenue Report findings.
The OOH segment jumped 56% compared with third-quarter2020. Year-to-date, OOH ad revenue totals $5.1 billion, up about 10% over 2020.
The move expands T-Mobile further into advertising as it looks to convert its data capabilities into a bigger revenue driver.
Octopus reaches a demographic that is often difficult to connect with through traditional channels, according to T-Mobile. The company reaches about 5 million unique monthly riders, nearly 80% of those between the ages of 18 and 49. On average, their household income is more than $130,000.
Some 45% live in urban areas, and nearly 40% of riders are traveling to the airport or on business and more than 50% are going to and from social outings. About 72% are cord-cutters.