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  • 1. Market Data / Supplier Selection / Event Presentations / User Experience Benchmarking / Best Practice / Template Files / Trends & InnovationLocation-basedMarketingSmart Pack Sample only, please download the full report from: http://econsultancy.com/reports/location-based-marketing-smart-pack
  • 2. Location-basedMarketingPublished March 2011 Econsultancy London Econsultancy New York 4th Floor, 91-93 Farringdon Rd 41 East 11th St., 11th Floor London EC1M 3LN New York, NY 10003All rights reserved. No part of this publication may be United Kingdom United Statesreproduced or transmitted in any form or by any means,electronic or mechanical, including photocopy, recording Telephone: Telephone:or any information storage and retrieval system, without +44 (0) 20 7269 1450 +1 212 699 3626prior permission in writing from the publisher. http://econsultancy.comCopyright © Econsultancy.com Ltd 2011 help@econsultancy.com
  • 3. Contents 1. Introduction ..................................................................... 1 1.1. About Econsultancy ..................................................................... 1 2. What... is location-based marketing? .............................. 2 3. Why... is location-based marketing important? .............. 5 4. Who... should I know about? ........................................... 6 5. Market trends .................................................................. 9 5.1. Data and statistics ....................................................................... 9 5.2. Marketplace developments ....................................................... 10 5.2.1. Applications are leading the way .......................................... 10 5.2.2. Platforms are converging ........................................................ 11 5.2.3. Control of the messaging is increasingly being given to users ........................................................................................ 11 5.2.4. Facebook is trying to dominate the space .............................. 11 6. Case studies .................................................................... 12 6.1. Facebook ..................................................................................... 12 6.2. Foursquare.................................................................................. 12 6.3. Gowalla ....................................................................................... 12 6.4. MyTown ...................................................................................... 12 6.5. Whrrl........................................................................................... 13 7. Recommended reading .................................................. 14 Location-based Marketing Smart Pack All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2011
  • 4. 1.1 Introduction Great decisions depend on great information. Econsultancy’s ten-year position at the eye of the digital storm gives it unique insight into newly-emerging technologies and techniques. This report is the second in a series of smart packs developed by Econsultancy and is designed to explore emerging trends and new areas relating to online marketing. These smart packs are being created specifically to provide cutting-edge insight into niche, front-line areas of digital marketing and e-commerce. We understand that many marketers are time-poor within their daily roles. The report has been produced with this in mind, to give a manageable snapshot of the key questions surrounding this particular digital discipline. The report includes sections on:  Market trends and developments.  Third-party statistics.  An overview of the key players in the industry.  Case studies of companies using location-based marketing tools and techniques.1.1 About Econsultancy Econsultancy is a digital publishing and training group that is used by more than 200,000 internet professionals every month. The company publishes practical and timesaving research to help marketers make better decisions about the digital environment, build business cases, find the best suppliers, look smart in meetings and accelerate their careers. Econsultancy has offices in New York and London, and hosts more than 100 events every year in the US and UK. Many of the world‘s most famous brands use Econsultancy to educate and train their staff. Some of Econsultancy’s members include: Google, Yahoo, Dell, BBC, BT, Shell, Vodafone, Virgin Atlantic, Barclays, Deloitte, T-Mobile and Estée Lauder. Join Econsultancy today to learn what’s happening in digital marketing – and what works. Call us to find out more on +44 (0)20 7269 1450 (London) or +1 212 699 3626 (New York). You can also contact us online. Sample only, please download the full report from: http://econsultancy.com/reports/location-based-marketing-smart-pack Location-based Marketing Smart Pack Page 1 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2011
  • 5. 2. What... is location-based marketing? Also known as geomarketing, location-based marketing is where an organisation uses the physical (geographical) location of a consumer as a leverage point for purposes of advertising, engagement or commerce. Location-based marketing (LBM) has digital processes at its very core and is an ideal way of identifying and targeting consumers within a specific location, either directly or by encouraging engagement. LBM is a growing into a very broad digital arena which can work across a variety of technologies within desktop computing and mobile handsets. Currently the focus is on the latter, given the recent meteoric rise of social media and mobile use, but the developing opportunities offered by more established digital platforms should not be ignored.3. Why... is location-based marketing important? There are two main reasons why marketers should pay close attention to LBM: it allows users find you directly and in return it allows you to find users. Given the widespread growth of channel drivers like social media and smartphones, LBM really should not be ignored. There has been a visible shift away from more traditional LBM techniques, such as directory listings, local search engine results and location-based web content. These are increasingly being replaced with complex, fluid technologies and platforms such as social networks, mobile applications, SMS discount vouchers and more. Because of the depth and breadth of location-based marketing, advertisers now find that the possibilities are almost limitless. As a few examples, LBM can:  Display search advertising (paid and natural) based on a geographical location.  Deliver marketing messages or promotions directly to mobile devices through Bluetooth, SMS, MMS etc.  Allow users to share their location and interactions with others across their social networks. Sample only, please download the full report from: http://econsultancy.com/reports/location-based-marketing-smart-pack Location-based Marketing Smart Pack Page 2 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2011
  • 6. 4. Who... should I know about? Blippy Blippy is still early in its development, but fundamentally, it’s a social network which allows consumers to share their purchases publicly, meaning that any online and offline products they buy are immediately seen by their friends. It also allows users to discuss and compare products and services within their networks. The implications of this in terms of location marketing are yet to fully emerge but essentially, users will begin to share purchases immediately at physical locations, rather than this being confined to an online activity that takes place at a later time. Brightkite Aimed at those who want to build up their personal social network, Brightkite connects users with existing friends, but also allows them to meet new people based on their location. Users can post photos and notes against a specific check-in from a mobile device, with other people able to make comments. Updates can also be shared on Twitter, Facebook and Flickr, all with the ability to be geotagged.5. Market trends5.1 Data and statistics1  Gartner predicts that the number of location-based service users will grow globally from 96m in 2009 to more than 526m in 2012. [Source: Gartner]  26% of mobile users regularly use a map, navigation tool or similar service that automatically determines their current location. [Source: MMA and Luth Research]  10% of mobile owners use location services at least once a week. [Source: MMA and Luth Research]  26% of people plan to connect with social networks through location-based features. [Source: JiWire] Sample only, please download the full report from: http://econsultancy.com/reports/location-based-marketing-smart-pack 1 All statistics taken from Econsultancy’s Internet Statistics Compendium Location-based Marketing Smart Pack Page 3 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2011
  • 7. 5.2 Marketplace developments The location-based marketing landscape is developing and evolving at a rapid pace. Identifying individual developments is extremely difficult, especially as new platforms are emerging on a regular basis, dictated by advances in technology and shifts in user uptake. However, four key elements can be seen within the marketplace. These are explained below.5.1.1 Applications are leading the way Global mobile data traffic more than doubled during 2010. Although smartphones only represent 13% of current global handsets, they account for more than 78% of total global handset traffic. 2 For LBM, this is an obvious opportunity. The location-based elements that can be leveraged through mobile phones already exist, but are likely to be done so through the use of apps. Already the vast amount of LBM interaction comes through mobile applications, as seen in the list of the current notable players in Section 4.6. Case studies6.1 Facebook  As part of Facebook Deals, fashion company Benetton has launched a new online charity fundraising scheme, donating £2 to the Slums Information Development and Resource Centres every time one of its fans checks into a store via Facebook Places.  Nike’s promotion of its Varsity Destroyer jacket saw it teaming up with Koi Fusion, a popular portable food stall in the US. Users were given clues via Twitter to find the stall’s location and could then check in on Facebook Places to order from a secret menu and get the chance to receive a free jacket on the spot.6.2 Foursquare  In an effort to secure new, digital-savvy readers, the Financial Times gave Foursquare users the ability to temporarily bypass FT.com’s pay wall when they checked in at specific locations.  Last year, Starbucks rolled out a national offer across the US, through Foursquare. Becoming a ‘mayor’ of an individual shop enabled the user to redeem a $1-off coupon for coffee. Users could become Foursquare ‘baristas’ by checking in at five different Starbucks locations.6.3 Gowalla  Chevy and Gowalla formed a joint partnership at the 2010 SXSW event to give users a free car service to their hotels if they checked into the airport after landing. Sample only, please download the full report from: http://econsultancy.com/reports/location-based-marketing-smart-pack 2 http://econsultancy.com/uk/reports/global-mobile-statistics Location-based Marketing Smart Pack Page 4 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2011
  • 8. 7. Recommended reading  Location based services - where next? Location offers businesses of all sizes a real opportunity to streamline and improve their entire customer experience, fully integrating web and print offers with simple, convenient payment and collection options. Coupons are a good start, but it remains to be seen which companies will make the most of location. http://econsultancy.com/blog/6171-location-based-services-where-next  Geomarketing: Ten Foursquare marketing campaigns LBM social network Foursquare just might be the internet’s ‘next big thing’. While it isn’t anywhere close to the size of Twitter or Facebook, the young company last month passed the million user mark. http://econsultancy.com/blog/5845-10-foursquare-marketing-campaigns  In the geolocation wars, the next step will be content Geolocation is a hot ticket item right now, with companies large and small getting into the social check-in game. But the gaming features are only one aspect of geolocation. According to the founders of Gowalla and Foursquare, geotargeting is going places with all that information their companies are collecting. http://econsultancy.com/blog/6078-in-the-geo-wars-the-next-step-will-be  How beneficial is Foursquare for businesses and individuals? Search expert Kevin Gibbons recently joined Foursquare to find out what all the fuss was about. http://econsultancy.com/blog/6460-how-beneficial-is-foursquare-for-businesses-and- individuals  SMWNY: When will location-based services stop being fads and start getting real? Twitter is over three years old and many people still don‘t get it. Just last week, The New Yorker’s George Packer called it “crack for media addicts”. But will real-time oversharing services make it into the mainstream? http://econsultancy.com/blog/5375-smwny-when-will-location-based-services-stop-being- fads-and-start-getting-real Sample only, please download the full report from: http://econsultancy.com/reports/location-based-marketing-smart-pack Location-based Marketing Smart Pack Page 5 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2011