T-Mobile Acquires Rideshare Advertising Network, Octopus Interactive

Rhea-AI Summary

T-Mobile (NASDAQ: TMUS) has acquired Octopus Interactive, the leading network of interactive video screens in Uber and Lyft vehicles. This acquisition enhances T-Mobile's Marketing Solutions, providing marketers with innovative advertising opportunities. Octopus's rideshare network allows brands to execute geotargeted campaigns, connecting with over 5 million unique riders monthly. Engagement rates exceed 3.5%, with many riders being tech-savvy and affluent, making this a strategic move to disrupt the advertising tech space and boost brand partnerships.

Positive

• Acquisition of Octopus Interactive expands T-Mobile's Marketing Solutions and advertising opportunities.
• Access to over 5 million unique riders monthly, enhancing brand engagement.
• High engagement rates (over 3.5%) with a desirable demographic, boosting advertising effectiveness.

Negative

• None.

BELLEVUE, Wash.--(BUSINESS WIRE)-- T-Mobile (NASDAQ: TMUS) today announced the acquisition of Octopus Interactive, the largest national network of interactive video screens inside Uber and Lyft vehicles. This move marks the next step for Marketing Solutions, T-Mobile’s fast-growing advertising technology business, in expanding its advertising offerings for marketers.

Octopus Interactive helps brands reach audiences through video ads presented on screens inside rideshare vehicles, providing marketers a new way to reach consumers, and its impact is growing rapidly. Octopus’s rideshare network enables brands to execute comprehensive geotargeted campaigns across a range of highly engaged consumers. And beyond the rideshare network, this acquisition will connect T-Mobile’s Marketing Solutions group with big brands, like current Octopus clients Audible, Fox Entertainment, Philo and many more.

“Octopus allows us to highlight our library of rich media content and drive awareness amongst a younger and tech savvy demographic. We’ve seen engagement rates over 3.5% and QR codes convert extremely well given the captive rideshare environment” said Matt Stein, Head of Brand & Creative Strategy at Philo.

Moving forward, devices used by drivers in the rideshare network will be powered by T-Mobile’s network, connecting thousands of drivers across the country to the Un-carrier experience.

“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” said Mike Peralta, VP and GM 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.”

“We’re thrilled to join the T-Mobile team on their mission to provide better results for marketers and better experiences for consumers,” said Cherian Thomas, Co-Founder and CEO of Octopus Interactive. “Our rideshare technology will unlock massive opportunities for brands working with Marketing Solutions.”

In the U.S., out-of-home advertising spend increased by nearly forty percent in the second quarter of 2021, and digital-out-of-home ad spend in particular increased by nearly eighty percent over the same time. In just the last quarter, the Octopus network of drivers grew by thirty five percent. Now brands can reach over 5 million unique riders per month on the Octopus platform. But it’s not only great for marketers. It enhances the riders’ experience too – delivering interactive games, prizes, premium video and infotainment curated specifically for Uber and Lyft audiences.

Octopus reaches an attractive demographic that is often difficult to reach through traditional channels. Here’s a snapshot of Octopus’s rideshare audience:

• Nearly 80% of riders are between the ages of 18 and 49.
• Riders have an average household income of more than $130K.
• 45% live in urban areas.
• Nearly 40% of riders are travelling – to the airport or on business - and more than 50% are going to and from social outings.
• 72% are cord cutters.

Brands can click here to learn more about Marketing Solutions, and drivers can click here for more information on how to join our rideshare network.

About T-Mobile US, Inc.

T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. T-Mobile’s customers benefit from its unmatched combination of value and quality, unwavering obsession with offering them the best possible service experience and undisputable drive for disruption that creates competition and innovation in wireless and beyond. Based in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Sprint. For more information please visit: http://www.t-mobile.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220109005068/en/

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T-Mobile US, Inc.

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Source: T-Mobile US, Inc.

FAQ

What is T-Mobile's recent acquisition?

T-Mobile has acquired Octopus Interactive, enhancing its advertising technology capabilities.

How does the acquisition of Octopus Interactive benefit T-Mobile?

The acquisition expands T-Mobile's Marketing Solutions, enabling geotargeted advertising to over 5 million unique rideshare consumers.

What is the expected impact of T-Mobile acquiring Octopus Interactive?

The acquisition is expected to disrupt the ad tech space by offering innovative solutions and better connecting brands with consumers.

What demographic does Octopus Interactive target?

Octopus targets riders aged 18-49, with high household incomes, offering brands access to a desirable market.