Is AT&T Suffering in the Age of Smartphones? by Peter Terry
Artwork Description
Companies like AT&T and Verizon have always turned a profit. But these days, with smart phone users at an all-time high, AT&T may be cutting down its advertising funds to focus on other areas. Why the switch? Could it be that the market is so highly over saturated there’s no need for even more ads?
What Happened?
Advertisers have to pull back a little bit because the ads are falling flat. Who wants to see a commercial for another mobile phone when you already have one you love? What AT&T will be focusing on now will be making their existing customers happy with their phones and service plans, and not necessarily luring in new customers that need a phone because, frankly, these days that market is very narrow with over 234 million Americans being mobile phone users and service subscribers.
It’s All About Upgrades
Once you have a phone with live wallpapers in your hand that you can use to make calls, do a Google search for oil scam or enable video chatting, you really have no need to switch. Most people get locked into a contract for at least two years, and even customers of pay-as-you-go phone services like Virgin Mobile rarely become disloyal. So how do you turn a profit? What do you focus on when it comes to advertising? Upgrades!
There’s always something better than the phone you’re holding in your hand, so AT&T can now redirect their advertising dollars to focus on more of an upgrade campaign as opposed to new phone purchases. Changing service plans, offering better deals or new phones to existing customers will probably be the only way companies like AT&T and Verizon will survive in today’s market.
Other Ideas
Perhaps traditional advertising ideas such as television ads aren’t the way to go anymore. Now AT&T has decided to try a different route when it comes to advertising. One such idea is a web series called “Daybreak.” This series will be promoted on the popular network, Fox. AT&T is looking for more creative and interesting ways to grab consumers’ attention, which may be a better use for their advertising funds.
The Other Guys
Although AT&T is spending less on marketing, a paltry $2.45 billion in 2015, the other smart phone leaders are spending more than ever on advertising. Electronics giant Apple, pioneer of the popular iPhone, spends around $500 billion a year on ads for its iPhone and iPad. Samsung is also an up and coming competitor that will be launching a huge advertising campaign for its newest Galaxy phone. Will AT&T still be a contender in the mobile phone war?
Companies like AT&T and Verizon have always turned a profit. But these days, with smart phone users at an all-time high, AT&T may be cutting down its advertising funds to focus on other areas.
