The New Era of Voice Commerce\ Vodafone UK: Growth dips due to COVID and more\ Facebook unmoved by its advertiser boycott\ Telstra extends its 5G coverage to 75% by June 2021

 



 

 

 

Welcome to the Venture Insights newsletter!
In this week’s edition, we look at the following: 

 

  • The New Era of Voice Commerce
  • Vodafone UK: Growth dips due to COVID and more
  • Facebook unmoved by its advertiser boycott
  • Telstra extends its 5G coverage to 75% by June 2021

 

 

 

CHART OF THE WEEK

 

 

Smart Speaker Voice Commerce by Category, Australia, 2019



 

 

Source: Versa

 

 

 

The New Era of Voice Commerce

 

 

Adult Usage of Voice Assistants Each Month by Country (Any Device, 2020) 



 

 

Source: Weare.social, Hootsuite 

 

 

Voice commerce is experiencing exponential growth as the convenience of hands-free options becomes more popular, with the market expected to grow to $40 billion by 2022 in the US alone. In Australia, 25% of all searches are now being done via voice. The role of search in the pre- and post-purchase process suggests that this is an ideal starting point into adapting to voice commerce. Media and telco players should start experimenting with monetisation opportunities, such as exclusive partnerships, customer service voice-bots and interactive voice segments. It is likely that voice will impact the way users interact with information and entertainment. For more details, click to read our report.

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Vodafone UK: Growth dips due to COVID and more

 

 

Q4 to Q1 Group service revenue progression



 

 

Source: Enders Analysis, company reports

 

 

Vodafone’s performance this quarter was hit both by COVID and an underlying deterioration in its operational momentum—disappointing given regulatory easing and easier comparables. Vodafone’s guidance has been more prudent than most going into this pandemic and these results support that cautious stance. Whether it’s a case of Vodafone underperforming or the sector being less resilient than expected will emerge over the coming weeks. The IPO of Vodafone’s towers business is imperative to maintaining its leverage targets and dividend. It will need to sell a chunky slice of equity and realise a hefty multiple in challenging market conditions. The profile of the asset for sale will help but it all remains very finely balanced. For more details, click to read a report from our UK research partner, Enders Analysis.

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Facebook unmoved by its advertiser boycott

 

 

 Facebook advertisers’ distribution, Q2 2020



 

 

Source: Facebook, Enders Analysis

 

 

Facebook grew revenues by 11% in Q2. This rate is higher than investors expected, but still driven to record lows by the pandemic slowdown. It forecasts 10% growth in Q3. The company is under very public pressure over its moderation of hateful content, with upwards of 1,000 advertisers joining a month-long boycott, while other online platforms institute tougher policies on hate. Facebook’s world-beating ad product and 9 million-strong bench of active advertisers means an organised boycott can’t hope to dent its growth. A coalition of advertisers, users, staff and regulators could make it take notice. For more details, click to read a report from our UK research partner, Enders Analysis.

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Telstra extends its 5G coverage to 75% by June 2021

 

 

Retail telco market revenue growth rates by segment



 

 

Source: VENTURE INSIGHTS; ACCC COMMUNICATIONS SECTOR MARKET STUDY

 

 

Telstra CEO Andrew Penn announced that Telstra intends to have 75% of the population covered by its 5G services by June 2021. He mentioned “Telstra’s 5G is already rolling out in 53 cities and regional towns across Australia and more than 10 million Australians now live, work or pass through Telstra’s 5G network footprint every day”. With the increase in work from home and economic downturn in Australia, Venture Insights believes that the consumers aren’t fully sold on paying more 5G despite their interest in the 5G technology. We expect 5G roll out to be slower than we previously anticipated. To read more about our forecasts for the Australian telco market, click here to read our market outlook report.

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