InnoEurope presentation Tallinn

The Future of Location-Aware Advertising Andrew Grill, Mobile Advertising Evangelist - Gigafone Annual Innovation Conference InnoEstonia 2008

Introduction www.London-Calling.org.uk

What we’ll cover
Why the Starbucks example will never happen
The location challenge
What Advertisers want
What’s here and now
What’s next
Location’s place in the mobile advertising value chain
Where are the revenue opportunities for location advertising?

Let’s kill off the “Starbucks Example”
Assume the following campaign
50,000 opt-in users
2 week campaign (Mon-Fri) = 10 days
8 hour window (8am – 4pm)
Check location every 5 minutes by operator cell-ID
Assume €0.10 per poll
What would this cost?

The cost breakdown…
50,000 users
10 days
8 hours
12 polls/hr
€ 0.10 per poll
€ 4.8m
ALMOST 5 MILLION Euros!

What is mobile advertising? How does location enhance mobile advertising?

The Mobile Advertising Value Chain Advertisers / Brands Marketing Agencies & Media Buyers Enablers Content Providers Aggregators Device Makers Wireless Operators Subscribers Traditional Promotional Channels Advertisers need… Measurability
Ability to track consumer engagement by counting clicks vs. displays
Targeting
Aggregated and specific customer information (e.g. age, gender, segment, lifestyle)
Relevance
Ads must be conveyed to the precise target in the right context …
Location
Information on the consumer location to increase relevance of ads

Mobile operators don’t have all the data advertisers need
Vodafone Australia mobile advertising brochure
Gender
Phone type
Postcode
Segmentation
Age
Gender
Spending pattern
Credit worthiness
Location??

Mobile advertising today

Or….we ask the user’s permission and preference Dynamic location information can enhance the user experience

Mobile LBS Landscape
Significant uptake by consumer of location services – driven by:
Device capabilities (larger - sharper displays , 3G data rates & GPS)
Quality content (maps, POI, navigation engines)
Attractive data tariffs (but not everywhere)
Current focus around navigation & search
Future growth expected in location based advertising & social networking

Mobile LBS Landscape
Significant growth in LBS, fuelled by convergence of:
Device capabilities (larger - sharper displays , 3G data rates & GPS)
Quality content (maps, POI, navigation engines)
Attractive data tariffs
Current focus around navigation & search
Future growth expected in location based advertising & social networking
The industry can’t wait any longer for operators to provide cell-ID data to 3 rd parties – Google, Nokia, Skyhook Wireless are doing it themselves
Advertisers need cross network and cross country coverage

What does this all mean for location based advertising?
Technically possible to provide a location capability
Until advertisers can use location with scale and ease it will be niche
Consumers starting to use GPS and operator independent location services and understand the benefits
Mobile advertising ramping up (Google vs operators)
Flat rate data plans driving usage
Location can become advertising inventory

Google Maps – now with sponsored links www.google.com/gmm

WiFi location – Skyhook Wireless www.skyhookwireless.com

Blogloc – post your location on a blog www.blogloc.com

Shozu + Flickr = geotagged photos m.shozu.com www.flickr.com

Rummble – location based social networking
Free to consumer
Ad / sponsor funded
Timely, trusted, personalised content
www.rummble.com

MobGeo – location aware mobile coupons www.mobgeo.com

Locatik – location based social networking www.locatik.com

“ Location Broking” with Fire Eagle from Yahoo! www.fireeagle.com

New Friend View service from Nokia Consumers first need to understand the benefits of a location service friendview.nokia.com

Andrew Grill www.andrewgrill.com/contact Follow the latest news at www.london-calling.org.uk http://LBS.andrewgrill.com Twitter: @andrewgrill

InnoEurope presentation Tallinn

by Andrew Grill on Nov 28, 2008

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InnoEurope presentation Tallinn — Presentation Transcript