InnoEurope presentation Tallinn

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Presentation by Andew Grill at InnoEurope in Tallinn

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InnoEurope presentation Tallinn

  1. 1. The Future of Location-Aware Advertising Andrew Grill, Mobile Advertising Evangelist - Gigafone Annual Innovation Conference InnoEstonia 2008
  2. 2. Introduction www.London-Calling.org.uk
  3. 3. What we’ll cover <ul><li>Why the Starbucks example will never happen </li></ul><ul><li>The location challenge </li></ul><ul><li>What Advertisers want </li></ul><ul><li>What’s here and now </li></ul><ul><li>What’s next </li></ul><ul><li>Location’s place in the mobile advertising value chain </li></ul><ul><li>Where are the revenue opportunities for location advertising? </li></ul>
  4. 4. Let’s kill off the “Starbucks Example” <ul><li>Assume the following campaign </li></ul><ul><li>50,000 opt-in users </li></ul><ul><li>2 week campaign (Mon-Fri) = 10 days </li></ul><ul><li>8 hour window (8am – 4pm) </li></ul><ul><li>Check location every 5 minutes by operator cell-ID </li></ul><ul><li>Assume €0.10 per poll </li></ul><ul><li>What would this cost? </li></ul>
  5. 5. The cost breakdown… <ul><li>50,000 users </li></ul><ul><li>10 days </li></ul><ul><li>8 hours </li></ul><ul><li>12 polls/hr </li></ul><ul><li>€ 0.10 per poll </li></ul><ul><li>€ 4.8m </li></ul>ALMOST 5 MILLION Euros!
  6. 6. What is mobile advertising? How does location enhance mobile advertising?
  7. 7. The Mobile Advertising Value Chain Advertisers / Brands Marketing Agencies & Media Buyers Enablers Content Providers Aggregators Device Makers Wireless Operators Subscribers Traditional Promotional Channels Advertisers need… Measurability <ul><li>Ability to track consumer engagement by counting clicks vs. displays </li></ul>Targeting <ul><li>Aggregated and specific customer information (e.g. age, gender, segment, lifestyle) </li></ul>Relevance <ul><li>Ads must be conveyed to the precise target in the right context … </li></ul>Location <ul><li>Information on the consumer location to increase relevance of ads </li></ul>
  8. 8. Mobile operators don’t have all the data advertisers need <ul><li>Vodafone Australia mobile advertising brochure </li></ul><ul><li>Gender </li></ul><ul><li>Phone type </li></ul><ul><li>Postcode </li></ul><ul><li>Segmentation </li></ul><ul><li>Age </li></ul><ul><li>Gender </li></ul><ul><li>Spending pattern </li></ul><ul><li>Credit worthiness </li></ul><ul><li>Location?? </li></ul>
  9. 9. Mobile advertising today
  10. 10. Or….we ask the user’s permission and preference Dynamic location information can enhance the user experience
  11. 11. Mobile LBS Landscape <ul><li>Significant uptake by consumer of location services – driven by: </li></ul><ul><ul><li>Device capabilities (larger - sharper displays , 3G data rates & GPS) </li></ul></ul><ul><ul><li>Quality content (maps, POI, navigation engines) </li></ul></ul><ul><ul><li>Attractive data tariffs (but not everywhere) </li></ul></ul><ul><li>Current focus around navigation & search </li></ul><ul><li>Future growth expected in location based advertising & social networking </li></ul>
  12. 13. Mobile LBS Landscape <ul><li>Significant growth in LBS, fuelled by convergence of: </li></ul><ul><ul><li>Device capabilities (larger - sharper displays , 3G data rates & GPS) </li></ul></ul><ul><ul><li>Quality content (maps, POI, navigation engines) </li></ul></ul><ul><ul><li>Attractive data tariffs </li></ul></ul><ul><li>Current focus around navigation & search </li></ul><ul><li>Future growth expected in location based advertising & social networking </li></ul><ul><li>The industry can’t wait any longer for operators to provide cell-ID data to 3 rd parties – Google, Nokia, Skyhook Wireless are doing it themselves </li></ul><ul><li>Advertisers need cross network and cross country coverage </li></ul>
  13. 14. What does this all mean for location based advertising? <ul><li>Technically possible to provide a location capability </li></ul><ul><li>Until advertisers can use location with scale and ease it will be niche </li></ul><ul><li>Consumers starting to use GPS and operator independent location services and understand the benefits </li></ul><ul><li>Mobile advertising ramping up (Google vs operators) </li></ul><ul><li>Flat rate data plans driving usage </li></ul><ul><li>Location can become advertising inventory </li></ul>
  14. 15. Google Maps – now with sponsored links www.google.com/gmm
  15. 16. WiFi location – Skyhook Wireless www.skyhookwireless.com
  16. 17. Blogloc – post your location on a blog www.blogloc.com
  17. 18. Shozu + Flickr = geotagged photos m.shozu.com www.flickr.com
  18. 19. Rummble – location based social networking <ul><li>Free to consumer </li></ul><ul><li>Ad / sponsor funded </li></ul><ul><li>Timely, trusted, personalised content </li></ul>www.rummble.com
  19. 20. MobGeo – location aware mobile coupons www.mobgeo.com
  20. 21. Locatik – location based social networking www.locatik.com
  21. 22. “ Location Broking” with Fire Eagle from Yahoo! www.fireeagle.com
  22. 23. New Friend View service from Nokia Consumers first need to understand the benefits of a location service friendview.nokia.com
  23. 24. Andrew Grill www.andrewgrill.com/contact Follow the latest news at www.london-calling.org.uk http://LBS.andrewgrill.com Twitter: @andrewgrill

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