Truecaller launches Masthead, a new ad format to woo advertisers

Caller ID and spam blocking app Truecaller has introduced a new advertising format called Masthead, which places brand content on the caller ID screen during incoming calls. The format integrates with existing caller ID functionality without disrupting core user experience. 

When users receive calls, branded content appears alongside caller identification information and standard call controls.

Speaking exclusively to afaqs! at Goafest 2025, Hemant Arora, VP of global ads business at Truecaller, says this development is part of the company's expansion into premium advertising inventory. 

The format leverages what Arora describes as an "uncluttered environment" on the caller ID interface, positioning advertisements alongside standard call information.

 The move represents Truecaller's attempt to monetise its substantial user base which currently stands at 260 million daily active users and 300 million monthly active users in the country. More than half of these users come from Tier 2 and 3 cities. 

Masthead has already been tested in its beta phase by brands such as Amazon Prime, Havells, and Godrej, as per the brand.

According to Arora, the format emerged from analysis of advertiser needs and behaviour patterns. "We're not creating something new; we're defining a position that already exists. This is about making it ridiculously simple for advertisers to understand their entry point into our ecosystem," he says.

The platform's core function addresses a significant problem in the telecommunications landscape- spam calls. The company emphasises that the format builds on existing user behaviour rather than creating new touchpoints. "It's part of the consumer experience, it's inclusive, it's already there. As a consumer-first platform, we don’t want to overdo advertising to a point where starts affecting the consumer experience on the app" Arora says.

Unlike previous advertising formats on the platform, Masthead offers varied purchase options. "The proposition is not only the position, it's also the ease of buying. I am not saying that you have to buy me only from impressions. If you want a day, please buy a day. If you want a week, buy a week," Arora stated.

The format is designed to work within broader campaign strategies, particularly for time-sensitive promotions. The company also offers what it calls "roadblock" campaigns, which involve comprehensive inventory takeovers across multiple ad positions on the platform.

Marketing approach and advertiser engagement

Truecaller's strategy for promoting Masthead focuses primarily on direct advertiser engagement rather than consumer-facing campaigns. The company leverages industry events like Goafest for initial exposure, followed by one-on-one collaborative discussions with potential advertisers. 

"Goafest is really one of the biggest launch pads in Asia when it comes to creativity and innovation. It is a place where all the people who make decisions on advertising platforms or formats, are gathered.The real marketing happens when we sit in front of our customers and work with them one-on-one, not only on the start point but the entire journey," Arora explains, emphasising consultative selling over standard media buying.

The platform currently works with over 10,000 brands across various categories, with banking, financial services, insurance, e-commerce, and telecommunications standing out as the leading categories.

User experience and privacy considerations

The company maintains its existing model where users can opt out of advertising through premium subscriptions. "We have a simple choice. You don't want to see ads, buy premium. You want to block out the ads, please go ahead. But does that take away anything from any other part of the product? Absolutely not," Arora states.

Truecaller conducts ongoing testing to ensure advertising doesn't negatively impact user experience. "Our constant experimentation ensures we are sure about the numbers we will reach. Is it coming in the way of user experience at any point? We try to negate that," he says.

Future plans

Beyond Masthead, Truecaller is developing AI-powered advertising solutions currently in beta testing. "We are working with AI on advertising solutions, and we have products in beta. We are already in soft launch phases," Arora confirms.

The AI initiatives focus on improved targeting capabilities. "We are assessing ways to leverage AI for a more cohesive and efficient targeting. We do have substantial amounts of data," he explains, while noting strict boundaries: "There is a strong line that we operate within, ensuring consumer privacy and spam protection at all costs."

Arora indicated these AI features would launch within weeks rather than months, with plans for regular product releases.

The Masthead launch represents Truecaller's latest attempt to supplement its utility function with revenue generation through advertising, while maintaining user choice through its premium model. The app offers premium membership alternatives to customers, but advertising accounts for over two-thirds of its income. The company reported EBITDA of Rs 596 crore in FY24.

Truecaller currently has more than 2.6 million paying subscribers, with paid subscriptions amounting to roughly 30% of the platform's total revenue.