AT&T to Launch Mobile Ad Network

Allthings D reports that an AT&T (NYSE:T) subsidiary is set to launch a mobile ad network that will target customers based on location. The telecommunications giant will compete with Apple (NASDAQ:AAPL) iAD and Google (NASDAQ:GOOG) AdMob services, which offer app publishers and developers means to advertise their products locally. Here’s how the service will work, “AT&T’s ads will appear in any application as long as a person has opted to share their location. If a consumer clicks on a banner, it will direct them to a landing page from inside that application that will include click-to-call information, directions, reviews and coupons.  (Note: AT&T Mobility customers will not be treated any differently from subscribers on other wireless networks.”

The mobile ad market is growing at a fast pace, with Google reporting sales from its AdMob service that total $1 billion last year. AT&T (NYSE:T) will face an uphill battle in gaining market share, but is positioned well to succeed via its strong base of regional salespeople and heavy integration with local businesses. David Krantz, AT&T Interactive’s president and CEO, expressed high hopes for the venture, saying, “We have really high fill rates because of our coverage, and we are able to provide CPMs [clicks per minute] in between [Apple and Google], so we’ve had a lot of interest in the pilot … We are finding a ton of demand for what we do.”

It looks like daily discount finders Groupon and LivingSocial (NASDAQ:AMZN) could be facing some new competition, as the company is also expected to launch a daily deals service in the near future.

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