Tesco Mobile partnered with Unlockd, an ad and content-funded platform, to launch an Android app in the UK that will help customers reduce monthly phone payments in exchange for viewing content and offers.
Tesco said this is a first for the UK market and the app, Tesco Mobile Xtras, is available to pay monthly customers.
It will connect users with brands, content and special offers, and in exchange, customers can save £3 from their pay monthly bill.
Through the partnership, geo-targeted ads, offers, discounts or content from brands such as British Airways, McDonalds and Doritos are shown at various times as consumers unlock their Android smartphones.
Unlockd is also partnering with Facebook through The Audience Network to deliver Facebook ads to users who can choose to interact further or dismiss them.
News UK will provide the advertising inventory as well as deliver stories from The Sun.
“To be the driver for collaboration and benefit from some of the world’s biggest media companies, a market leading mobile carrier, as well as the end consumer, is a huge coup,” said Matt Berriman (pictured), CEO and co-founder of Unlockd.
“It is a move that will address existing challenges faced by our partners’ businesses and positively transform both the mobile advertising landscape and telco industry,” he added.
Unlockd recently closed a AUD 15 million ($11 million) series A Round from investors including PLC Ventures and Sam Mostyn, a board member of Virgin Australia and Citibank.
The company was founded in Melbourne and launched in Australia with Lebara Mobile in October 2015, followed by the US with Sprint Mobile in January this year.
The partnership comes as the UK’s fourth largest operator 3 prepares to trial ad blocking technology on its network for the first time next week.
The operator, which is partnering with Israeli start-up Shine, wants to “revolutionise the mobile advertising experience” by filtering out advertising that is harming its customers’ browsing experience.