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LBS and the evolution of mobile marketing

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A brief but informative presentation on the history of mobile marketing and how location-based services are evolving the field.

A brief but informative presentation on the history of mobile marketing and how location-based services are evolving the field.

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    LBS and the evolution of mobile marketing LBS and the evolution of mobile marketing Presentation Transcript

    • New trends in Location Based Services (LBS)
      The evolution of mobile marketing
    • history
    • 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
    • Historical
    • Recent/forecasted mobile
    • Overall, there are now more mobile phones in the world than personal computers.
      Mobile is KING
      Source: Research we found online
    • First steps in mobile marketing
      Gaming
      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.)
      SMS
      Was an unsaturated medium – nearly 100% of smsmsgs 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
      Millions of users, 2009
      Source: To Mobile or Not to Mobile: Digital Strategies for Marketers - Nielsen; Internet eMarketer, 2009
    • Mobile banners
      One in five phones in the US are currently smartphones
      The mobile ad market today is $420mm
      Direct campaigns
      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 improvement
      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 News
      Now - Location
    • using location to reach your audience
    • 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 (LBS)
      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)
      Brightkite, Whrrl
    • Latest and greatest--beyond life-streaming
      Appealing to a mass market
      Games and incentives
      Competition
      Foursquare
      Gowalla
      Aggregating LBS content
      Multiple sources = context
      Big picture emerges
      Buzzd
    • Future trends in mobile
      More powerful means ofengagement:
      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 Facebook?
      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
    • mountains to climb
    • how do you keep it cool?
      As marketers have more and more tools for targeting their audience, how do they keep it from being:
      A) Creepy
      B) Oversaturated
      ie: Microsoft Bing’s ‘search overload’ commercials
      How much intrusion is ok
      C) Static
      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
    • privacy
      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?
    • Thank you!!
      glen nigelstraub
      marketing
      glen@buzzd.com
      phone: 646.723.4657
      michael muse
      business development
      michael@buzzd.com
      Phone: 646.484.8599
      text BUZZD to 28993 to get...
      buzzd: your city. real time.
      www.buzzd.com