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Location Based Mobile Advertising : Market Overview, Revenue Opportunities and Product Innovation

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With mobile internet and smartphone usage growing exponentially, Location Based Advertising presents the most promising mobile technology with global market projected to grow $12.8 Billion over next 5 …

With mobile internet and smartphone usage growing exponentially, Location Based Advertising presents the most promising mobile technology with global market projected to grow $12.8 Billion over next 5 years.

Published in: Business, Technology

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Transcript

  • 1. Location Based Mobile Advertising
    Nagendra Kumar Lavu
    Senior Product Manager
    Product Camp - NYC
    Sep 17, 2011
  • 2. Introduction
    Manage 3 Product lines: LBS, EMAG & Mobile Advertising
    9+ years in Wireless and Mobile Industry
    Domain expertise in all 3 Mobile layers – Platforms, Networks and Applications
  • 3. Agenda
    Location Based Mobile Advertising Overview
    LBA Ecosystem
    Market forecasts
    Key Market drivers and Challenges
    Competitive Landscape
    Key Recommendations
    LBA Architecture
  • 4. Location Based Mobile Advertising
    Definition
    Location Based Mobile Advertising (LBA) involves delivering Content and Context
    Aware advertisements to the mobile users based on their Location
    Classification
    • Push Advertising
    • 5. Pull Advertising
    Advantages
    Mobile is Personal, Interactive and Constantly in Use. Location adds “WHERE” filter
    and provides Context, Localization and Relevance
    LBA provides following RICH DATA to Advertisers:
    WHERE: Geo-Awareness
    WHO: Social graph and group Dynamics
    WHAT: Real identify of a location as well as one’s behavior and preferences
    WHEN: Frequency, time and duration
    WHY: Intent
    HOW: Path to arrival and Path to exit
  • 6. LBA Delivery Models
  • 7. LBA Ecosystem
    Mobile Users
    Ad Networks/Platform Providers
    Publishers/Content Providers
    Mobile Applications
    Advertisers/Brands
    Ad Agencies/ Marketing firms
    Mobile Operators
  • 8. Market Forecasts
    • US Mobile Advertising is at $1.24 BN in 2011 and estimated to be $5 BN by 2015
    • 9. In 2011, 49M engaged with advertising, 12M clicked on ad and purchased an item
    • 10. Mobile Local Ad Spending will be the fastest growing medium over next 5 years
    • 11. LBS are estimated to have 53% CAGR in Revenues and 63% CAGR in Subscribers
  • Market Drivers and Challenges
    Market Drivers
    • Smartphone Usage
    • 12. Mobile Internet - 3G/4G Data Networks
    • 13. GPS Enabled Handsets
    • 14. Free Mapping APIs
    Challenges
    • Privacy
    • 15. Accuracy of Location
    • 16. OS and Device Fragmentation for App Development
  • LBA Competitive Landscape
    Mobile Apps:
    Facebook, Foursquare, Loopt, Gowalla, Navteq
    Platform Providers/
    Ad Networks:
    Admob, iAd, Yahoo, Bing, Jumptap, JiWire, Placecast, TeleNav
    Brands/
    Advertisers
    Mobile Operators:
    Verizon Wireless, AT&T, Sprint
    Mobile Users
  • 17. Key Recommendations
    Product Innovation Areas and Revenue Generation
    Platform Providers:
    • Accuracy of Location
    • 18. Location + Context is the key
    • 19. Spam Control
    • 20. Develop Predictive Analysis and Intelligence tools
    Operators:
    • Control Privacy of the End-user
    • 21. Partner with Platform Providers and Application Developers
    • 22. Provide Mobile App stores
    • 23. Offer Predictive Analysis and Intelligence tools
    Application Developers:
    • User Engagement is the key
  • LBA Architecture
    Location API
    LBA Platform Provider/
    Ad Network
    Publishers/Content Providers
    Brands/
    Advertisers
    Ad Server
    Periodic Payments
    LBA Architecture
    User’s Location,
    Profile
    Location Server
    Ad Response Metrics
    Application Server
    Rules Engine
    Locat
    I
    on
    Ad Agencies (Ad Content)
    Mobile Operator
    Ad Campaigns
    Relevancy
    Engine
    Location Ads are pushed
  • 24. Positioning and Measurement
    Determining Location
    Measurement Metrics
  • Location Ad Targeting
    Time of Day & Day of Week (Breakfast places, night clubs)
    Location
    (Geo-fence, Zip Code, Cell Id)
    User Demographics (Age, Gender)
    Content
    (Keywords, site, page, context, yield )
    Points of Interest
    (Bars, Pizza, Family, shopping)
    Device
    (OS, Screen Size, capabilities)
  • 34. THANK YOU
    Nagendra Kumar Lavu
    Senior Product Manager
    http://www.linkedin.com/pub/nagendra-kumar/6/121/2a2