Mobile Ad Sales Grow For Time Warner Cable

TWC: Time Warner Cable logo
Time Warner Cable

Leapfrog Online, a digital marketing firm in the U.S., reported that the mobile ad sales of its client Time Warner Cable (NYSE:TWC) has increased notably over the past few months. [1] As far as Time Warner Cable is concerned, advertising constitutes about 5% of its value, according to our estimates. A big portion of this comes from TV ads while online/mobile sales constitute a minuscule portion. As such, this is no big news in terms of direct value add, but it does highlight the importance and the growth potential of mobile platform.

The mobile platform is not just important in terms of ad dollars, but also in terms of keeping customers satisfied. Given the continued pay-TV subscriber losses, it is imperative for cable companies such as Time Warner Cable and Comcast (NASDAQ:CMCSA) to enhance customer satisfaction and adopt the trend of online streaming and access via multiple mobile and other devices.

See our complete analysis for Time Warner Cable

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Time Warner Cable’s improvement in mobile ad sales echoes its earlier settlement with Viacom (NASDAQ:VIA) regarding streaming on the iPad. The more the video content available and viewed on smartphones and tablets, the higher the mobile ad growth opportunity. However, ad growth is not the fundamental driver of Time Warner Cable’s business, which essentially depends on pay-TV and broadband subscriptions.

Our price estimate for Time Warner Cable stands at $75.78, roughly in-line with the market price.

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  1. Time Warner Cable’s Mobile Strategy Recognized as Shining Star in Digital Portfolio, Leapfrog Online Press Release, June 8 2012 []