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.

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LBS and the evolution of mobile marketing

  1. 1. The evolution of mobile marketing New trends in Location Based Services (LBS)
  2. 2. history
  3. 3. 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
  4. 4. Historical
  5. 5. Recent/forecasted mobile
  6. 6. Overall, there are now more mobile phones in the world than personal computers. Mobile is KING 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Newspapers Cars Email Internet TV Mobile Millions of users, 2009 Source: Research we found online
  7. 7. 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
  8. 8. First steps in mobile marketing (cont.) SMS  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 0 50 100 150 200 250 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
  9. 9. 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”
  10. 10. 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
  11. 11. using location to reach your audience
  12. 12. 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?
  13. 13. 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:
  14. 14. 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
  15. 15. 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
  16. 16. 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 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
  17. 17. mountains to climb
  18. 18. 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?
  19. 19. 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
  20. 20. 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?
  21. 21. Thank you!! glen nigel straub marketing phone: 646.723.4657 michael muse business development Phone: 646.484.8599 text BUZZD to 28993 to get... buzzd: your city. real time.