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Location based services overview - July 2011 - Brian Groth
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Location based services overview - July 2011 - Brian Groth

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  • A marketing strategy that leverages a location-based service, such as Foursquare or Facebook Places is therefore part of a mobile marketing effort that also incorporates a locally targeted audience.
  • Location-based services get quite a bit of attention right now, but keep in mind they are just one part of the ever-growing ecosystem of social media. Image by Brian Solis and JESS3
  • Over the last few years there have been a variety of technologies and consumer trends that have been converging in regards to mobile technology. Let’s start with SMS. It is so widespread now that researchers at theRoyal Melbourne Institute of Technology have discovered that the phrase “where are you” is the most frequently sent text. Since 1996, the GPS system has been open for consumer devices and wi-fi triangulation can be used by phones that don’t have GPS.The use of smartphones and flat data rates is fueling growth in social media (UM’s “Socialization of Brands (wave 5)” report)At the September 2010 Nokia World conference, Nokia, the world’s biggest device maker, said that “location-based services are key to Nokia's future”----------And the rapid adoption of smartphones brings even more to the mix: 1. The content I consume is personal, as are the conversations I have via voice or digital are as personal as I choose to make them.2. Content of all types are always available 3. Through the carriers, there is a built-in payment mechanism so purchases can be even more spontanious4. The device is with people at all times and all locations5. And devices don’t get shared like a PC mightSo a variety of technologies and concepts have had to come together before location-based services could begin to work for consumers.Because of this conversion of technologies, you quickly realize that Location-Based Services are related to a variety of other topics, all which center around the mobile consumer.This is primarily driven by the growing popularity of Smartphones on 3G & 4G networks and the general acceptance of social networking.------ sources -----PhD student Matthew Kwan from Royal Melbourne Institute of Technology (RMIT) School of Mathematical and Geospatial Scienceshttp://andrewgrill.com/download/AlanMoore_Allure_Mobile_Society.pdfhttp://www.rmit.edu.au/browse;ID=aq7tqwa5rqe4http://www.telegraph.co.uk/technology/nokia/8002277/Nokia-World-Location-based-services-key-to-the-future-says-Nokia.html
  • Location-based services leverage a few of these technologies, but it is still a niche part of the overall mobile market. However, mobile is increasingly an important part of an overall brand campaign.More mobile trends at http://www.slideshare.net/kleinerperkins/kpcb-top-10-mobile-trends-feb-2011
  • And this is where Microsoft comes in: by bringing advertising that reaches consumers across devices and services. Microsoft’s social media strategy is to embrace and aggregate the services for the consumer from within Messenger, Hotmail, Xbox MSN and Bing. The thinking is that consumers want all of these products to be social, and the industry does seem to agree with this. For an advertiser, this means our consumer audience will remain engaged with our products and with the ads seen within those products. Social media is a great tactic to create awareness and engagement, but only when part of a well-planned digital marketing strategy.Figures stated are global statsWindows Live with over 166MM active users in Europe Bing with over 79MM active users in EuropeHotmail with over 120MM active users in EuropeMessenger with over 113MM active users in EuropeMSN with 118MM active users in Europe[Source: Comscore monthly average Q4 2009 (Oct – Dec) [via Microsoft Data Science team]
  • Game dynamics include: time-based, achievements, progression/completion, working with friends to unlock something (like a group coupon). See slide 4 of http://www.slideshare.net/BrianGroth/location-based-social-media-for-brand-advertisers It starts with a consumer having a mobile phone.1. The reasons for checking into a location vary. Some do it to earn virtual badges, some to get a discount, some to simply have bragging rights. 2. Sharing a tip is equal to writing reviews of a location. Learning is to learn about where your friends are, but also about locations you may be interested in and deals near you3. Finding friends and sharing your location with friends is part of the social networking hooks of all location-based services.http://commons.wikimedia.org/wiki/File:VTBS-Passenger_terminal_check-in_overview.JPG
  • It starts with a consumer having a mobile phone.1. The reasons for checking into a location vary. Some do it to earn virtual badges, some to get a discount, some to simply have bragging rights. 2. Sharing a tip is equal to writing reviews of a location. Learning is to learn about where your friends are, but also about locations you may be interested in and deals near you3. Finding friends and sharing your location with friends is part of the social networking hooks of all location-based services.http://commons.wikimedia.org/wiki/File:VTBS-Passenger_terminal_check-in_overview.JPG
  • It starts with a consumer having a mobile phone.1. The reasons for checking into a location vary. Some do it to earn virtual badges, some to get a discount, some to simply have bragging rights. 2. Sharing a tip is equal to writing reviews of a location. Learning is to learn about where your friends are, but also about locations you may be interested in and deals near you3. Finding friends and sharing your location with friends is part of the social networking hooks of all location-based services.http://commons.wikimedia.org/wiki/File:VTBS-Passenger_terminal_check-in_overview.JPGhttp://mashable.com/2011/01/03/art-of-checkin/
  • Just by checking in, your friends will be notified.
  • http://windowsteamblog.com/windows/b/windowsexperience/archive/2010/10/29/windows-live-serves-up-local-photo-spots-on-foursquare.aspxhttp://foursquare.com/windowslive
  • People have a reason to stop by a location and check-in and that’s to walk in the door and make a purchasehttp://www.emarketer.com/Article.aspx?R=1008161 – stat is from the report, but via JiWire, Nov 2010
  • http://www.facebook.com/event.php?eid=159056334132258&index=1The Gap has also used Foursquare for 25% off promotions and Groupon for $25 off promotions. See http://www.marcomprofessional.com/posts/brian.solis/the-decline-of-asocial-shopping-and-the-rise-of-social-commerce
  • http://mashable.com/2010/08/24/att-scvngr-rewards/
  • http://mashable.com/2010/11/19/scvngr-coke-rewards/http://www.readwriteweb.com/archives/location-based_cola_wars_pepsi_partners_with_fours.php
  • The right incentives can keep customers coming back. Sometimes this is a deal or sometimes as part of a game strategy, such as earning badges.
  • http://www.fastcompany.com/1703807/exclusive-foursquare-partners-with-pepsi-unveils-linked-loyalty-rewards-accounts-facebook-plhttp://thekruser.com/foursquare/badges/gym-rat
  • http://cocacola.com.au/fairy.htmlhttp://mashable.com/2010/09/16/coke-machine-fairy-foursquare/
  • It worked by checking-in on Gowalla at your local Best Buy and clicking the “Did i win?” button. There was no waiting; you knew right away if you were one of the lucky 500 recipient’s of the Eye-Fi card!http://www.mobilemarketingwatch.com/gowalla-tries-its-hand-at-rewards-allows-offers-for-anyone-who-checks-in-7459/http://www.eye.fi/blog/win-an-eye-fi-card
  • Foursquare has 51% market share in the US and 25% in EMEA - LBMA 2011 London is Facebook’s biggest city (most people on FB self-identified as living in London)Tokyo is Foursquare’s 2nd biggest market for Check-Ins behind NY: http://venturebeat.com/2011/02/09/foursquare-japanese-consumers/ We are all aware of the massive Facebook growth, but according to Foursquare they are also growing rapidly and growing outside of the US also. Consumers are happy to announce their location and expect brands and companies to acknowledge and reward them fortheir loyalty. This can be in the form of special offers, discounts or virtual recognition in the form ofBadges.These types of applications are appearing and growing globally, many of which are only offered in single languages for now. The thing to keep in mind is that right now the market is very fragmented with over 200 location-based services.And it’s bigger than just the apps that allow you to check-in.According to Skyhook Wireless, there are more than 6400 location-aware iPhone appsPeople that use Facebook on their mobile devices are twice as active on Facebook than non-mobile users (source: Facebook)According to Dick Costolo, Twitter CEO, 40% of tweets happen from mobile device (last year it was 20%) (Jan 10, 2011)http://kara.allthingsd.com/20110110/dces-highlights-video-twitter-ceo-dick-costolo-%c2%a1ole/?mod=twitter&utm_source=twitterfeed&utm_medium=twitterhttp://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=140056& http://www.facebook.com/press/info.php?statisticshttp://foursquare.com/abouthttp://mashable.com/2010/11/03/future-of-foursquare/50% of us-cell phones: http://blog.nielsen.com/nielsenwire/consumer/smartphones-to-overtake-feature-phones-in-u-s-by-2011/Mobile social by 2015: http://www.emarketer.com/Report.aspx?code=emarketer_2000746Some data is from comScore, November 2010http://clarionconsulting.eu/blog/location-based-marketing-association-emea-survey-2010-%e2%80%93-the-infographic/
  • Beyond the Check-In: Best Practices for Location-Based Marketinghttp://www.emarketer.com/Report.aspx?code=emarketer_2000746
  • Blippy has consumer reviews,CheckPoints allows for scanning of products to get prices, ShopKick lets you earn rewards by entering a store, Groupon for a coupon valid only if enough people sign up for it, StickyBits/QRCode/MSFT Tag for scanning a product to learn or talk about itThese 5 services now all have the ability to read and write location data into and out of Facebook.If someone checks into Facebook Places, then these apps can use that information.And in reverse, if someone checks into one of these services, they can write that information to Facebook Places.This puts Facebook Places at the heart of location-based services if consumers choose to use it and puts these services as value added providers on top of Facebook that brands can partner with for unique location-based solutions.
  • Transcript

    • 1. Location-Based Services
      &
      Social Media
      Brian Groth
      Director of Global Sales Programs
      Microsoft
      Brian.Groth@microsoft.com
      http://www.BrianGroth.com
      Disclaimer: This presentation contains my opinions regarding the location-based services industry and does not reflect those of my employer, Microsoft.
    • 2. Introduction
      Mobile
      Marketing
      Locally
      Targeted
      Audience
      http://www.flickr.com/photos/brianwilkins/4734788670/
    • 3. Part of the mix of social media
    • 4. Converging Technologies & Trends
      SMS
      Location-Based Services
      GPS
      Geo-Targeted Ads
      Social
      Media
      Mobile
      Consumer
      Mobile Coupons
      Social
      Games
      Real-Time User Ratings
      Mobile Ads
      2D Barcodes & Readers
      Always-on Media
      Mobile Shopping
      Mobile Payment
    • 5. Still a niche of mobile
    • 6. The bigger picture FOR AN ADVERTISER
      25M People On Xbox Live!
      500M Active Windows Live IDs!
      369M People Using Hotmail!
      Over 3B WW Queries Each Month!
      Over 6M Songs In The Catalog
      Over 600M Unique Users
      CLOUD SERVICES
    • 7. The Consumer Experience
      1. Check-In
      Why?
      • Game Dynamics
      • 8. Personal Diary
      • 9. Affinity
      http://www.flickr.com/photos/buhsnarf/511483451
    • 10. The Consumer Experience
      2. Share
      Why?
      http://www.flickr.com/photos/hcplebranch/4911611848/
    • 12. The Consumer Experience
      3. Discover
      Why?
      http://www.flickr.com/photos/wonder_j/442643366/
    • 15. The Advertiser Experience
      1. Awareness
      Deliver a compelling offer when consumers are near the point of decision
      http://www.flickr.com/photos/buhsnarf/511483451
    • 16. Windows Live Gallery on Foursquare
      Get tips at various locations in Seattle, San Francisco and New York City
      Tips suggest locations for taking photos
      The branded Foursquare site suggests to download Windows Live Photo Gallery to touch-up and share your photos
    • 17. The Advertiser Experience
      2. Direct Sales
      Getting a deal is the number 1 reason people check-in (JiWire, Nov 2010)
      http://www.flickr.com/photos/wonder_j/442643366/
    • 18. GAP and facebook Places
      Check-in and get a free pair of jeans
      10,000 pairs of jeans were given away in the US, with each store allocated a certain number to give away
      Most consumers were confused as to how to get the free pair
    • 19. AT&T on SCVNGR
      AT&T offered rewards for specific behaviors.
      Behaviors that earned points included:
      Checking in
      Sharing a photo of a place
      Writing a review
      “Bump” phones with a friend at the location
      Rewards included:
      Free ringtone gift card for 2 points
      20% discount off accessories for 5 points
      $50 off a Samsung phone for earning 15 points
    • 20. Coca-Cola on SCVNGR
      Partnering with 10 shopping malls (Simon Malls) across the US to earn Coke rewards good for American Express gift cards and Coke-branded merchandise. In total, $100,000 will be given away.
      Challenges include check-ins and photos of hidden shopping experiences.
    • 21. The Advertiser Experience
      3. Loyalty
      Game mechanics encourage the brand loyalty
      http://www.flickr.com/photos/wonder_j/442643366/
    • 22. Pepsi and Foursquare
      A Safeway customer can associate their loyalty card to their Foursquare account.
      The rewards are associated to user behavior, irrespective of in-store check-ins.
      Therefore, checking in on Foursquare anywhere and earning certain badges can now earn a Pepsi product, redeemable at a Safeway store.
    • 23. Coca-Cola on Foursquare
      The Coke Machine Fairy leaves one winning bottle in a Coke machine each day (in Sydney in September 2010)
      Friend The Coke Machine Fairy on Foursquare then be the first to check-in at a special Coke machine (changes daily) to win a prize.
      Coca-Cola employee arrives in person to give out the prize.
    • 24. Eye-Fi on Gowalla
      Eye-Fi in the US partnered with Gowalla to offer the chance to win a free Eye-Fi card to anyone who checked into a Best Buy store and free hotspot access to those who don’t win – just for checking in.
      Check-in
      Click the “Did I win?” button
    • 25. Where’s This Going?
      Foursquare has 10+ million users worldwide adding 20,000 per day
      Facebook has 750+ million users worldwide
      200+ million are on mobile devices (2x as active)
      77% are outside the US
      All are on mobile devices
      67% are outside the US
      • Mobile Social:More than 50% of US cell-phones will be smartphones by end of 2011. Mobile social network users will more than double by 2015, and adoption of location-based services will rise with it.
      • 26. Non Check-in Models: Groupon & local coupons, Brightkite & geofencing, deals exposed via local search
      • 27. Recommendations & Notifications: Automatic and customized based on settings, history, profile and social graph, including brand discovery
      http://www.flickr.com/photos/laughingsquid/5018800588/
    • 28. Where’s This Going?
      ABI Research estimates that location-based marketing will be a $1.8 billion business worldwide by 2015
      http://www.flickr.com/photos/laughingsquid/5018800588/
    • 29. Where’s This Going?
      Branded Mobile Apps
      Branded Facebook Apps
      Geo-Targeted Ads and Mobile Advertising
    • 30. Social, Apps, Ads, SEO, …
      How does your marketing strategy include mobile?
      How do you reach a local audience?
      Are you offering deals/discounts?

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