Location Based Advertising Vincent Maher Portfolio Manager: Social Networking - Vodacom SA

What is LBA? Advertising targeted based on your physical location and proximity

How does it work? push + pull Push Changes in location trigger a message Example: Bluetooth transmitters Pull User requests data and gets targeted ads Example: logging onto the Grid

push + pull

Push Changes in location trigger a message Example: Bluetooth transmitters

Pull User requests data and gets targeted ads Example: logging onto the Grid

GPS (satellite triangulation) Cellular LBS (cell mast triangulation) Wi-Fi hotspot location (mostly in the US) IP address (ISP POP location) User Generated Location (profiles, browsing)

GPS (satellite triangulation) Cellular LBS (cell mast triangulation) Wi-Fi hotspot location (mostly in the US) IP address (ISP POP location) User Generated Location (profiles, browsing)

Steps for pull advertising User requests content Application server requests advertising and passes geo location Ad server chooses ad and sends it back to the user

Steps for pull advertising

User requests content

Application server requests advertising and passes geo location

Ad server chooses ad and sends it back to the user

Prerequisites User’s location Ad server that supports location-targeting Application that adds location to ad requests

The jetsetter You’re in a new city looking for a restaurant The bargain hunter About to purchase but looking for a better deal The party animal Looking for events near me tonight

The (very) small business Hairdressers, plumbers, TV repair, dog kennels and everybody else Oldest form of advertising, livery on a storefront. Local newspapers vs. global media.

Time is important 1 7AM Slow 7 9AM Spike 9 12PM Moderate 12 2PM Spike 2 7PM Slow rise 7 11PM Spike 11 1AM Slow decrease

Maps aren’t everything 2 Models – display and text ads in content + points of interest on maps Often location-based ads work better away from a map, maps can be boring and have specific uses

What to expect Low volumes of impressions and a higher click-through rate Our experience in trials: web ads up from 0.4 to 0.6% CTR

How it works on The Grid Web, mobi, Java

Nando’s on the Web 6 locations around Cape Town, 3 – 5km radius per location Higher than average CTR

Text ads below the dashboard map Interstitial ad between dashboard and contact list

What about privacy? Revealing location seems dangerous, users must have complete control over who can see their location

Summary LBA makes digital advertising appealing for smaller advertisers, should increase the volume of clicks and improve relevance of the advertising

Discussion http://www.thegrid.co.za [email_address]