Location Based Mobile Advertising : Market Overview, Revenue Opportunities and Product Innovation


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With mobile internet and smartphone usage growing exponentially, Location Based Advertising presents the most promising mobile technology with global market projected to grow $12.8 Billion over next 5 years.

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Location Based Mobile Advertising : Market Overview, Revenue Opportunities and Product Innovation

  1. 1. Location Based Mobile Advertising<br />Nagendra Kumar Lavu <br />Senior Product Manager <br />Product Camp - NYC<br />Sep 17, 2011<br />
  2. 2. Introduction<br />Manage 3 Product lines: LBS, EMAG & Mobile Advertising<br />9+ years in Wireless and Mobile Industry<br />Domain expertise in all 3 Mobile layers – Platforms, Networks and Applications<br />
  3. 3. Agenda<br />Location Based Mobile Advertising Overview<br />LBA Ecosystem<br />Market forecasts <br />Key Market drivers and Challenges <br />Competitive Landscape<br />Key Recommendations<br />LBA Architecture<br />
  4. 4. Location Based Mobile Advertising<br />Definition<br />Location Based Mobile Advertising (LBA) involves delivering Content and Context<br />Aware advertisements to the mobile users based on their Location<br />Classification<br /><ul><li>Push Advertising
  5. 5. Pull Advertising</li></ul>Advantages<br />Mobile is Personal, Interactive and Constantly in Use. Location adds “WHERE” filter <br />and provides Context, Localization and Relevance <br />LBA provides following RICH DATA to Advertisers:<br />WHERE: Geo-Awareness<br />WHO: Social graph and group Dynamics<br />WHAT: Real identify of a location as well as one’s behavior and preferences<br />WHEN: Frequency, time and duration<br />WHY: Intent<br />HOW: Path to arrival and Path to exit<br />
  6. 6. LBA Delivery Models<br />
  7. 7. LBA Ecosystem<br />Mobile Users<br />Ad Networks/Platform Providers<br />Publishers/Content Providers<br />Mobile Applications<br />Advertisers/Brands<br />Ad Agencies/ Marketing firms<br />Mobile Operators<br />
  8. 8. Market Forecasts<br /><ul><li>US Mobile Advertising is at $1.24 BN in 2011 and estimated to be $5 BN by 2015
  9. 9. In 2011, 49M engaged with advertising, 12M clicked on ad and purchased an item
  10. 10. Mobile Local Ad Spending will be the fastest growing medium over next 5 years
  11. 11. LBS are estimated to have 53% CAGR in Revenues and 63% CAGR in Subscribers</li></li></ul><li>Market Drivers and Challenges <br />Market Drivers<br /><ul><li>Smartphone Usage
  12. 12. Mobile Internet - 3G/4G Data Networks
  13. 13. GPS Enabled Handsets
  14. 14. Free Mapping APIs</li></ul>Challenges<br /><ul><li>Privacy
  15. 15. Accuracy of Location
  16. 16. OS and Device Fragmentation for App Development</li></li></ul><li>LBA Competitive Landscape<br />Mobile Apps:<br />Facebook, Foursquare, Loopt, Gowalla, Navteq<br />Platform Providers/<br />Ad Networks:<br />Admob, iAd, Yahoo, Bing, Jumptap, JiWire, Placecast, TeleNav<br />Brands/<br />Advertisers<br />Mobile Operators:<br />Verizon Wireless, AT&T, Sprint<br />Mobile Users<br />
  17. 17. Key Recommendations<br />Product Innovation Areas and Revenue Generation<br />Platform Providers:<br /><ul><li>Accuracy of Location
  18. 18. Location + Context is the key
  19. 19. Spam Control
  20. 20. Develop Predictive Analysis and Intelligence tools</li></ul>Operators:<br /><ul><li>Control Privacy of the End-user
  21. 21. Partner with Platform Providers and Application Developers
  22. 22. Provide Mobile App stores
  23. 23. Offer Predictive Analysis and Intelligence tools</li></ul>Application Developers: <br /><ul><li>User Engagement is the key</li></li></ul><li>LBA Architecture<br />Location API<br />LBA Platform Provider/<br />Ad Network<br />Publishers/Content Providers<br />Brands/<br />Advertisers<br />Ad Server<br />Periodic Payments<br />LBA Architecture <br />User’s Location,<br />Profile<br />Location Server<br />Ad Response Metrics<br />Application Server<br />Rules Engine<br />Locat<br />I<br />on<br />Ad Agencies (Ad Content)<br />Mobile Operator<br />Ad Campaigns<br />Relevancy<br />Engine<br />Location Ads are pushed<br />
  24. 24. Positioning and Measurement<br />Determining Location<br /><ul><li>GPS
  25. 25. Cell-id
  26. 26. Wi-Fi
  27. 27. AGPS</li></ul>Measurement Metrics<br /><ul><li>CPM
  28. 28. CPC calculated based on CTR
  29. 29. CPA
  30. 30. Click to Call
  31. 31. Click to Navigate
  32. 32. Click to Website
  33. 33. Click to Redeem </li></li></ul><li>Location Ad Targeting<br />Time of Day & Day of Week (Breakfast places, night clubs)<br />Location<br />(Geo-fence, Zip Code, Cell Id)<br />User Demographics (Age, Gender)<br />Content<br />(Keywords, site, page, context, yield )<br />Points of Interest<br /> (Bars, Pizza, Family, shopping) <br />Device<br />(OS, Screen Size, capabilities)<br />
  34. 34. THANK YOU<br />Nagendra Kumar Lavu <br />Senior Product Manager<br />http://www.linkedin.com/pub/nagendra-kumar/6/121/2a2<br />