Advertising in Social Networks: Business-oriented Check-ins. A new business model and mobile service

1. Advertising in Social Networks: Business-oriented Check-ins QRpon - a new business model and mobile service Dmitry Namiot Lomonosov Moscow State University [email_address] Manfred Sneps-Sneppe Ventspils University College manfreds.sneps@gmail.com AFIN 2011

2. We offer a new model for check-in process: customized (or business-oriented) check-ins. This approach introduces a new mobile service that lets any business publish customized records (statuses) in social networks (Facebook in the current release) in exchange for some benefits (discounts, gifts, coupons) provided for the customers.

3. Contents 1 Check-in in social networks 2 C heck-ins critics 3 QRpon – a new mobile service 4 QRpon tools 5 QRpon for consumers 6 QRpon : on monetization (from the service provider’s point of view) 7 Future development 8 Conclusion

4. 1. Check-in in social networks “ C heck-in” is the popular services (especially – for geo services) . Check-in is a record with presence status, associated with some particular location . I n Foursquare ( direct "check-in“ ), users "check-in" at venues using a mobile website, text messaging or a device-specific application by running the application . The main goal - to set location. In Twitter ( Indirect check-in ), users can leave a message (status) with some location info in attributes .

6. The typical check-in record

7. 2. C heck-ins critics E arned points (badges) are finally the things users can exchange with some benefits at venue (e.g., discount, free offering, gift, etc.). Of course, it is true only if/when business that owns this venue participates in Foursquare’s programs. Badges are being developed by the communication service, not by the business. In other words – venue owner participates in the program, developed by the communication service.

8. Currently, all the monetization efforts in LBS (location based systems) applications like Foursquare, Facebook Places, etc. are based on the attaching (connecting, linking) some deals to the locations. But it is very easy to conclude, that in the real case any business could offer several deals within the same location simultaneously.

9. 3. QRpon – a new mobile service Why do we ask business to deliver benefits via advertising some 3-rd party service? It looks very natural to let business es define the format that should be used (exchanged) for benefits defined by the businesses themselves. It is actually the main idea our QRpon mobile service was born from . We are talking below about the special (user generated actually) forms for check-ins, that could be used in exchanges for benefits.

10. We are going to replace generic check-ins with the customized analogues. We are talking here about the check-ins used for the benefits delivery. That is why we have the words “business-oriented” check-ins in the title. We are not going to replace (dismiss, etc.) existing check-ins , not touch locations, etc. We are talking below about the special (user generated actually) forms for check-ins, that could be used in exchanges for benefits.

11. The ability for the businesses to create any “deal” (discount, advertising) by themselves is obviously a big advantage. They do not need to wait for any external development. The open API for QRpon system lets create mobile sites (deals) automatically, getting data right from corporate ERP system. The ability to collect stats directly from social network related to QRpons is the next big advantage . QRpon does not introduce any new social network. Having a Facebook account is fully enough for using QRpon.

13. 4. QRpon tools How to present this mobile site for potential users? It is where QR-codes help us. CMS lets businesses create mobile web site and an appropriate QR-code. Because it is mobile web ( HTML5 ) application there is no need for downloading. Just scan QR-code and get URL opened.

14. 5. QRpon for consumers 1. Scan QR-code (application is free) 2. See web page with offer 3. Accept that offer (confirm it with your Facebook ID) 4. See confirmation page (badge) right on the screen 5. Show that badge to staff on-site for claiming your benefits

15. 6. QRpon : on monetization (from the service provider’s point of view) C harge customers for using templates. Some templates for confirmation pages could be offered as a freemium service . C harge customers for the statistics info. The typical f r e e mium model – the basic statistical service is free, where an extended info is payable. This aspect is probably one of the most interesting here. It is just because we can use data from social network (social graph) for our reports. Mobile web visitors endorsed QRpon page are not anonymous mobile web surfers. That is the key.

16. 7. Future development This service at the moment of posting data to the social network has got access to the user’s social graph. It means, particularly, that we can create output (our confirmation page or badge) depending on the social graph’s attributes. For example, the more friends our customer has, the more potential readers will see our posting. So we can offer more rewards etc.

17. Loyalty schemas – reuse info about ID’s of registered users. Open API for QRpon itself – generate mobile pages right from corporate ERP systems . S ome production (rule based) system used for creating outputs (badges). It could be a set of rules (productions) like this: “ IF (sex is ‘M’ AND #friends>100) THEN (offer package 1) ”, etc.

18. 8. Conclusion A new model for advertising in the social networks – customized check-ins. This model lets businesses provide own forms for posts in social networks exchangeable for some benefits (discounts, gifts, coupons etc.) without any external communication service as well as own rules for creating such posts. In this approach check-in records posted as exchange for some benefits (e.g., discounts, coupons, gifts) playing the role of ad messages.

19. Finally, QRpon model presents mobile service that lets any business exchange some benefits for the clients with posting (advertising) in the social networks. This service does not require downloadable mobile applications and based completely on the mobile web (HTML5). And QR-codes let us build a bridge between the virtual world of social networks and traditional retailing. QRpon could be presented as a natural extension for Facebook’s check-ins.