History of mobile
1947 - Bell Labs engineers propose hexagonal cells for mobile phones in vehicles
1973 – “1G” – predecessor of Zack Morris phone
Motorola DynaTAC, by Dr. Martin Cooper
1990’s – “2G” (GSM/CDMA, Modern Cell Phones)
1991 – First SMS product in UK
1999 – WAP version 1.1 (wireless access protocol)
Optimized webpages made mobile browsing possible
2001 – “3G” released in Japan
Also 2001, NTT-DoCoMo (Japan) introduces the world's first LBS phone, before mobile
phones had GPS.
2002 – BlackBerry modifies 2 way pager to create first email enabled phone
iPhone day – July 11, 2008
Overall, there are now more mobile phones in the world than personal computers.
Mobile is KING
Newspapers Cars Email Internet TV Mobile
Millions of users, 2009
Source: Research we found online
First steps in mobile marketing
1997 - Snake on Nokia 6110 – Black and white
JamDat – 1st dominant mobile gaming company, 2000
Acquired by Electronic Arts for $650mm
Paying for add-ons to their phone – introduced idea of a
cellphone as a full-service portal
1st time you used your phone for transactions
First steps in mobile marketing (cont.)
Was an unsaturated medium – nearly 100% of sms msgs are viewed by receiver
7.3 billion text messages per month in June-05 (up 154% from June-04),
15 billion (150%) in Oct 06 // 25 billion in Oct 07 in US alone
Niche advertising agencies start to form for SMS marketing
ipsh!, JuiceWireless, WiredSet
Example – text “coke” to 12345 –
Text message call to action as an opt-in
US Internet Users US Text Message Subscribers
Source: To Mobile or Not to Mobile: Digital Strategies for Marketers - Nielsen; Internet eMarketer, 2009
Millions of users, 2009
One in five phones in the US are currently smartphones
The mobile ad market today is $420mm
Running direct deals with advertisers who want exposure to mobile
For example, Coors:
Emergence of mobile ad networks
Ad networks like Quattro, Millennial, Admob, JumpTap, ThirdScreen
AdMob was acquired by Google last week for $750mm, igniting the dialogue
about mobile advertising
Source: AdWeek – “Mobile ads – Wait until next year”
Okay, so where are we?
Massive mobile audience is clear
1% Click-through rate on mobile leaves room for
Devices becoming more and more capable
People are using their phones more
They are doing more ‘stuff’ on their phones
“The phone is the new swiss army knife” – CBS
Now - Location
GPS / Cell ID / carrier detection / manual
Why is location important to mobile marketing?
Mobile is a medium that captures an audience on the go
People tend to use their phones to get stuff done
What do you want your consumer to get done?
How LBS is used:
Where am I?
Where are my friends?
What is around me?
What can I do with it?
Evolution of Location Based Services
Mobile has been the catalyst that made LBS relevant
1st step: City level local content – think a NYC city guide
This happened first on web and then on mobile
Vindigo for Palm
Then: hyper-local emerged – think Google Maps
Nearby determines relevance
Organized by distance away from you
For example - Starbucks on Google Maps:
Next phase – its all about ME
Always-on services harness the power of in-app location (like GPS)
Track me, help me find my friends
Loopt, Google Latitude
More about me – lifestreaming
Using LBS to document/publish my life (photos, notes, status updates)
Latest and greatest --
Appealing to a mass market
Games and incentives
Aggregating LBS content
Multiple sources = context
Big picture emerges
Future trends in mobile
More powerful means of engagement:
Push notifications (for nearby offers, friend check-ins)
Rich media ads (videos, downloadables, etc)
Monetization: as context and targeting becomes richer, monetization is becoming
increasingly long tail - how do you bring in the advertisers themselves? Self-serve like
Need to be smarter too - to be predictive, proximity and demographic data isn't the only thing
that makes an ad good for a user - will need to be personalized/contextualized
Eg: PinchMedia uses facebook connect
With more and more apps - mindshare gets diluted. Future isn't about picking a winner.
Winners will pick a specialty and diversify offerings within it:
Inventors/Publishers of apps (UI/mktg/functionality) / Monetization of these interfaces
Application Developers - coding apps
Backend B2B LBS technology like Skyhook
how do you keep it cool?
As marketers have more and more tools for targeting their audience, how do they keep it
ie: Microsoft Bing’s ‘search overload’ commercials
How much intrusion is ok
Needs to be new!
How can you make it more relevant?
More and more, users reject content that seems random
How do you balance mass market economics and the super-contextual long tail?
problems with discovery
The number of apps is increasing exponentially – what can you do to stand out? Who controls the
eyeballs? What is your hook?
Facebook’s iPhone app developer (Joe Hewett) blasted Apple last week:
“My decision to stop iPhone development has had everything to do with Apple’s policies. I respect their right to manage
their platform however they want, however I am philosophically opposed to the existence of their review process. … The
web is still unrestricted and free, and so I am returning to my roots as a web developer. … I would like to be able to say
that I helped to make the web the best mobile platform available, rather than being part of the transition to a world where
every developer must go through a middleman to get their software in the hands of users.”
Carrier distribution method is painful and slow moving
Carriers have a stranglehold on location and the discovery of content.
They also have strict advertising and content guidelines
Bandwidth on networks
Next steps in LBS discovery:
AppStore genius – recommendation engine for apps
Android – open development platform – open discovery channels
Cross promotional partners
App developers have a responsibility to be fully transparent with their users:
Where data is published
What kind of data is published
LBS developers have an obligation to help delete your digital footprint if requested
Facebook recently had a big PR problem around deleting acocunts
Users want the option of a full delete
Location Based Services could potentially redistribute a person’s location out to a wide
variety of sources
If a user posts their whereabouts, and later changes their mind, they need to be
able to clean the digital paper trail
When you post your location publicly – what else are you posting?
Mashups of data could potentially predict a lot more about your location than the sum of
the parts - what ethically must we do to protect against this?
glen nigel straub
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