THE WEB There are 4
BILLION mobile phone owners—that’s half the population of the planet—and 25% of them access the internet exclusively through their phones.HAS GONE Mobile web usage in the U.S. grew 110% last year. MOBILE 60% of U.S. mobile internet usage is for social networking, followed by search portals (14%), messaging (8%), and other uses (18%) MOBILE PHONES HAVE ENRICHED AND EMPOWERED USERS WITH THE POWER OF THE WEB WHEREVER THEY GO.
THE Users are now increasingly
turning to the web to interact with the world immediately around them. Local mobile search is growing exponentially at 50% every year, with 1.5 billion local searches every month in 2010. WORLD IS (U.S. market) Growth in local mobile content has been led by Online Directories (upSHRINKING 73%), Restaurants (up 70%), Maps (up 63%), and Movies (up 60%). (U.S. Market) MOBILE PHONES HAVE BECOME AN INTEGRAL TOOL FOR HELPING PEOPLE NAVIGATE THE WORLD AROUND THEM. Marketers need to know how consumers want to use this tool to interact with the world. Is search the top priority? Socializing? Gaming? These elements don’t have to be prioritized over each other, however. Rather, in geolocation, they can be used in concert to captivate the consumer while adding value.
THE WEB, Mobile phone users
are turning to geo platforms that COMBINE social networking, gaming and search for the purpose of local exploration. In fact, almost half of the current market behavior is gravitating towardsLOCALIZED geolocation. Quite simply, geo platforms allow people to interact with the people and businesses in their vicinity utilizing: CROWDSOURCING Content is created by mobile device users and businesses in the form of reviews, coupons, activities, etc. GEO-LOCATION Platforms track and reﬂect users’ locales through some form of map or GPS technology. Think custom Yellow Pages. SOCIAL PROOF Platforms allow businesses and users to know what others are doing, determine how that’s relevant to them and respond accordingly.
WHO WILL FOURSQUARE is the
largest geo-networking platform, encouraging users to “check in” at real sites by awarding badges, honoriﬁcs and discounts. BE THE Foursquare’s most direct competitor, GOWALLA encourages users to “check in” at places to unlockGOOGLE OF virtual items that can be redeemed for actual products. FACEBOOK PLACES works to create moments of social GEO? serendipity, as users can locate people or brands in their networks, check in with them and tell others. LOOPT allows users to ﬁnd each other using GPS tracking, facilitating meetups. Loopt also connects users to integrated content from Zagat, Citysearch, etc. YELP is the most popular user-generated review site for people to learn about the businesses around them via other users, integrating socializing and check-in technologies.
LOOKING SHOPKICK contains a new
virtual currency called “kickbucks” which can be redeemed for Facebook credits, iTunes Gift Cards, travel vouchers or donations FOR A to charities. BRIGHTKITE is a geo-networking platform that awardsCHALLENGE users various levels of badges. It utilizes new augmented reality technology for mapping. MYTOWN enables users to build a virtual town or city with real world-based landmarks and act as a virtual entrepreneur. The app has been likened to monopoly. SCVNGR is a game that allows users to complete location-based challenges and share reviews, earning points redeemable for retail promotions and discounts. WHRRL users interact with “societies” of people based on interests or check ins. Rewards, fun facts and reviews add to indexed local consumer insight.
THE POWER KNOW EXACTLY WHERE
YOUR CUSTOMERS ARE, WHAT THEY’VE PURCHASED FROM YOU, AND SEND RELEVANT PROMOTIONS AT THE MOMENT THEY ARE MOST LIKELY TO USE THEM. OF GEO 92% of phone owners cannot get through a typical day without using their phones. Mobile phones are within arm’s reach 80% of an average user’sPLATFORMS day. While still in their infant stage, geo platforms are used by 4% of online users and growing. Big players are jumping into the geo-located world. Twitter has added geo-located tweets, Google has added real-time GPS geo-tracking, and Facebook recently rolled out robust new geo functionality in its Places feature.
GEO- Foursquare and Starbucks teamed
up to reward frequent customers with the Barista badge and ofﬁcially turned on the rewards side of Starbucks’ experimental loyalty program with the ﬁrst-ever nationwide mayor specialMARKETING ($1 off Frappucinos). Some Starbucks locations have even created real-world perks and BEST recognition for their customers, such as mayor parking spots and signage for their most loyal followers, demonstrating PR and CRM savvy. This helps Starbucks forge most lasting connections to its customers.PRACTICES: #1
GEO- Gowalla partnered with Sweet
Leaf Tea to entice Austin, Texas-area users to check-in at various locations to ﬁnd virtual Sweet Leaf Tea cans redeemable for real cans at the Sweet Leaf Tea HQ (in Austin).MARKETING Gowalla also partnered with the InterContinental Hotels Group for its Hit it Big promotion, which offered rewards such as retail gift cards and BEST double air miles to guests who stayed multiple nights at any of the participating IHG hotels family.PRACTICES: Both brands and Gowalla were able to deﬁnitively show the effectiveness of these marketing initiatives. #2
GEO- GEOMARKETING AS CUSTOMER RELATIONS
MANAGEMENT (CRM) Monitor conversations among consumers as well as manage customer service.MARKETING IMAGINE: a customer expresses dissatisfaction with a product while engaging with it in a store. An employee can now approach him momentsSTRATEGIES later to address the issue directly. GEOMARKETING AS INVENTORY MANAGEMENT Use geo platform data to learn real-time demand for one’s products and adjust for inventory levels. IMAGINE: a hotel is underbooked, but you can build buzz by giving away a free room on a geo platform with instructions for the lucky participant to visit the hotel spa, restaurant and bar for further discounts.
GEO- GEOMARKETING AS EXPERIENTIAL BRANDING
Use geomarketing to increase awareness via actual usage, a crux of branding.MARKETING IMAGINE: Coca Cola partners with Foursquare to add a “Coca-Cola check- in”, allowing users to “check-in” whenever they drink a can of Coke,STRATEGIES broadcast this to other users and make comments. IMAGINE YOUR BRAND’S GEO POSSIBILITIES…
LEVERAGE The advantages for organizations
are compelling: Geo platforms allow users to customize their interactions based on their locations and personal activities.THE POWER Just as importantly, these tools allow businesses to closely monitor customer behaviors and tailor actions to serve their speciﬁc needs. OF LOCAL REMEMBER: the reason most marketing messages fail to close sales is that they are untargeted. Geo platforms allow businesses to deliver relevance and personality. Marketers can now identify, reach and reward their most inﬂuential consumers in the most tangible way possible: in real time, on their mobile phones, when they are at the point of purchase. THE GAME IS ABOUT TO BE CHANGED. AGAIN.
ARE YOU READYTO GO LOCAL?Ludvik
+ Partners provides value by assessing yourcompany’s overall marketing theme and determining astrategy that helps GEO deliver on fundamental objectives.CREATIVE ADVERTISING REDEFINED.48W 20th Street / New York, NY 10011 / T: 347.586.9862 / F: 917.351.1214 / www.ludvikplus.com
1. Erick Schonfeld (Jan 5,
2010) U.S. 10. Jessica Dolcourt (Dec 2, 2009) 18. RICG (July 28, 2010) Geo-locationSOURCES Mobile Web Usage Grew 110 Percent Last Year; Apple Dominates, Android No. 2 CNET Reviews: Yelp live in BlackBerry App World 11. Glenn McBride (04.14.10) social networks have great potential for future 19. Dan Frommer (Aug. 17, 2010) 2. BRAND AUTOPSY MARKETING Chicago Now: 3 steps for using Yelp to Business Insider SAI: Facebooks PRACTICE: Digital Discounts promote local businesses Location Product Could Be A Bigger (Foursquare & Gowalla) Attack On Google And Yelp Than On 12. Claire Cain Miller (Dec18, 2009) Foursquare 3. By Barbara De Lollis (May 19 2010) The New York Times: Google Said to Be USA TODAY: InterContinental Hotels Near a Yelp Deal 20. A. Fowler (Sep 20, 2010) Group bets on Gowalla for major summer The Wall Street Journal: App Watch: promo 13.Erick Schonfeld (Jul 14, 2010) Geo-Location Checks In At College TechCrunch: Groupon, Twitter, 4. Kipp Bodnar (July 22, 2010) Foursquare, And Yelp Will Convene At HubSpot Blog: 11 Mind-Blowing Mobile The Social Currency CrunchUp Marketing Infographics 14.Tom Krazit (Dec 6, 2009) 5. Sam Taggart and AJ Vaynerchuk CNET NEWS Google Favorite Places (Apr 21st) VAYNERMEDIA: Early Proof coming to window near you That Geolocation Marketing Will Succeed 15. GroundTruth (April 21, 2010) 6. By Neil Vidyarthi (June 2nd, 2010) Ground Truth: Half of All Time Spent on Social Times Your Social Media Source: the Mobile Internet is on Social Booyah’s MyTown and Location-Based Networking Sites. Engagement with Games Are A Possible Marketing mobile social networks surpasses that Sensation of Facebook and MySpace. 7. By Chris Sherman on (March 31, 2010) 16. Brightkite (Oct 15, 2009) Brightkite Engage Digital: Booyah Partners With Augmented Reality comes to your Travel Channel To Promote MyTown iPhone! 8. Matthieu Soule (July 13, 2010) 17. dna 13 on (Mar 16, 2010) Atelier: Booyahs Secret Gaming Recipe Geolocation Ups the Ante for Real-Time Could Make it the Next Zynga CRM 9. Alycia de Mesa (Oct 9, 2006) brandchannel: Yelp Networking