LBS and the Evolution of Mobile Marketing


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Presentation to an NYU marketing class about the emergence of new mobile, local marketing.

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LBS and the Evolution of Mobile Marketing

  1. 1. New trends in Location Based Services (LBS)<br />The evolution of mobile marketing <br />
  2. 2. history<br />
  3. 3. History of mobile<br />1947 - Bell Labs engineers propose hexagonal cells for mobile phones in vehicles<br />1973 – “1G” – predecessor of Zack Morris phone <br />Motorola Dynatac, by Dr, Martin Cooper<br />1990’s – “2G” (GSM/CDMA) – UK has first SMS in 1991<br />1999 – WAP version 1.1 (wireless access protocol)<br />Optimized webpages made mobile browsing possible<br />2001 – “3G” released in Japan<br />Also 2001, NTT-DoCoMo (Japan) introduces the world&apos;s first LBS phone, before mobile phones had GPS.<br />2002 – BlackBerry modifies 2 way pager to create first email enabled phone<br />iPhone day – July 11, 2008<br />
  4. 4. Historical <br />
  5. 5. Recent/forecasted mobile<br />
  6. 6. Overall, there are now more mobile phones in the world than personal computers.<br />Mobile is KING<br />Source: Research we found online<br />
  7. 7. First steps in mobile marketing<br />Gaming<br />1997 - Snake on Nokia 6110 – Black and white<br />JamDat – 1st dominant mobile gaming company, 2000<br />Acquired by Electronic Arts for $650mm<br />Paying for add-ons to their phone – introduced idea of a cellphone as a full-service portal<br />1st time you used your phone for transactions<br />
  8. 8. First steps in mobile marketing (cont.)<br />SMS<br />Was an unsaturated medium – nearly 100% of smsmsgs are viewed by receiver<br />7.3 billion text messages per month in June-05 (up 154% from June-04), <br />15 billion (150%) in Oct 06 // 25 billion in Oct 07 in US alone<br />Niche advertising agencies start to form for SMS marketing<br />ipsh!, JuiceWireless, WiredSet<br />Example – text “coke” to 12345 – <br />Text message call to action as an opt-in<br />Millions of users, 2009<br />Source: To Mobile or Not to Mobile: Digital Strategies for Marketers - Nielsen; Internet eMarketer, 2009<br />
  9. 9. Mobile banners<br />One in five phones in the US are currently smartphones<br />The mobile ad market today is $420mm<br />Direct campaigns<br />Running direct deals with advertisers who want exposure to mobile<br />For example, Coors:<br />Emergence of mobile ad networks<br />Ad networks like Quattro, Millennial, Admob, JumpTap, ThirdScreen<br />AdMob was acquired by Google last week for $750mm, igniting the dialogue about mobile advertising<br />Source: AdWeek – “Mobile ads – Wait until next year”<br />
  10. 10. Okay, so where are we?<br />Massive mobile audience is clear<br />1% Click-through rate on mobile leaves room for improvement<br />Devices becoming more and more capable<br />People are using their phones more<br />They are doing more ‘stuff’ on their phones<br />“The phone is the new swiss army knife” – CBS News<br />Now - Location<br />
  11. 11. using location to reach your audience<br />
  12. 12. Location<br />GPS / Cell ID / carrier detection / manual<br />Why is location important to mobile marketing?<br />Mobile is a medium that captures an audience on the go<br />People tend to use their phones to get stuff done<br />What do you want your consumer to get done?<br />How LBS is used:<br />Where am I?<br />Where are my friends?<br />What is around me?<br />What can I do with it?<br />
  13. 13. Evolution of Location Based Services (LBS)<br />Mobile has been the catalyst that made LBS relevant<br />1st step: City level local content – think a NYC city guide<br />This happened first on web and then on mobile<br />Vindigo for Palm<br />Then: hyperlocal emerged – think Google Maps<br />Nearby determines relevance <br />Organized by distance away from you<br />For example - Starbucks on Google Maps: <br />
  14. 14. Next phase – its all about ME<br />Always-on services harness the power of in-app location (like GPS)<br />Track me, help me find my friends<br />Loopt, Google Latitude<br />More about me – lifestreaming<br />Using LBS to document/publish my life (photos, notes, status updates)<br />Brightkite, Whrrl<br />
  15. 15. Latest and greatest – beyond lifestreaming<br />Appealing to a mass market<br />Games and incentives<br />Competition<br />Foursquare<br />Gowalla<br />Aggregating LBS content<br />Multiple sources = context<br />Big picture emerges<br />Buzzd<br />
  16. 16. Future trends in mobile<br />More powerful means of engagment:<br />Push notfications (for nearby offers, <br />Rich media ads (videos, downloadables, etc)<br />Monetization: as context and targeting becomes richer, monetization is becoming increasingly long tail - how do you bring in the advertisers themselves? Self-serve like Facebook?<br />Need to be smarter too - to be predictive, proximity and demographic data isnt the only thing that makes an ad good for a user - will need to be personalized/contextualized<br />Eg: PinchMedia uses facebook connect<br />With more and more apps - mindshare gets diluted. Future isnt about picking a winner. Winners will pick a specialty and diversify offerings within it:<br />Inventors/Publishers of apps (UI/mktg/functionality) / Monetization of these interfaces<br />Application Developers - coding apps<br />Backend B2B LBS technology like Skyhook<br />
  17. 17. mountains to climb<br />
  18. 18. how do you keep it cool?<br />As marketers have more and more tools for targeting their audience, how do they keep it from being:<br />A) Creepy<br />B) Oversaturated <br />ie: Microsoft Bing’s ‘search overload’ commercials<br />How much intrusion is ok<br />C) Static<br />Needs to be new!<br />How can you make it more relevant?<br />More and more, users reject content that seems random<br />How do you balance mass market economics and the super-contextual long tail?<br />
  19. 19. problems with discovery<br />The number of apps is increasing exponentially – what can you do to stand out? Who controls the eyeballs? What is your hook?<br />Facebook’s iPhone app developer (Joe Hewett) blasted Apple last week:<br />“My decision to stop iPhone development has had everything to do with Apple’s policies. I respect their right to manage their platform however they want, however I am philosophically opposed to the existence of their review process. … The web is still unrestricted and free, and so I am returning to my roots as a web developer. … I would like to be able to say that I helped to make the web the best mobile platform available, rather than being part of the transition to a world where every developer must go through a middleman to get their software in the hands of users.”<br />Carrier distribution method is painful and slow moving<br />Carriers have a stranglehold on location and the discovery of content.<br />They also have strict advertising and content guidelines<br />Next steps in LBS discovery:<br />AppStore genius – recommendation engine for apps<br />Android – open development platform – open discovery channels<br />Cross promotional partners<br />
  20. 20. privacy<br />App developers have a responsibility to be fully transparent with their users:<br />Where data is published<br />What kind of data is published<br />LBS developers have an obligation to help delete your digital footprint if requested<br />Facebook recently had a big PR problem around deleting acocunts<br />Users want the option of a full delete<br />Location Based Services could potentially redistribute a person’s location out to a wide variety of sources<br />If a user posts their whereabouts, and later changes their mind, they need to be able to clean the digital paper trail<br />When you post your location publicly – what else are you posting?<br />Mashups of data could potentially predict a lot more about your location than the sum of the parts - what ethically must we do to protect against this?<br />
  21. 21. appendix: rethinking local listings<br />
  22. 22. wall between listings and LBS publishers<br />Local Ad Networks<br />Local Content Publishers<br />
  23. 23. typing a search vs. listings as content<br />We are building a network of partner directories businesses that can help you monetize beyond just search<br />Traditionally, listings were only available as responses to search queries<br />We have taken listings and set up agreements that set these listings free<br />These partnerships have taken us 6 months to get up and running and another 6 months to optimize <br />Directories businesses don’t have clear, open APIs for LBS apps, nor the bandwith or DNA to create them<br />We intend to resyndicate this setup to other location based services<br />User browses local listings because they house info that is interesting<br />Through us, payment can resolved on contextual actions:<br />- View owner description<br />- Click to call<br />- View map/directions<br /><ul><li> Share it</li></ul>- Post to Twitter<br /><ul><li> Save to favorites
  24. 24. Add to Address Book</li></li></ul><li>Mobile display advertising is a $200mm / year market (2008-9)<br />Local advertising is a $100B / year market, of which $58B spent by 26mm SMBs<br />Aggregate local merchant sales forces exceed 15,000 existing ‘feet on the street’ (yodle, reachlocal, yellowpages, citysearch, yelp, etc)<br />Local mobile applications create much needed contextual inventory for existing local adnetworks<br />the opportunity<br />
  25. 25. the proposal<br />We’ll give you:<br />A free feed of local listings<br />An API to keep you updated on which have remaining budget<br />A mechanism by which you can ping us with usage statistics<br />Cache and exposure to local listings directories, with refined integration<br />Revshare on this traffic<br />Give us:<br />Pings on which venues are viewed<br />Filter out bot traffic<br />Agreement to the terms of resyndication<br />local advertising<br />reports<br />
  26. 26. Thank you!!<br />glen nigelstraub<br />marketing<br /><br />phone: 646.723.4657 <br />michael muse<br /> business development<br /><br />Phone: 646.484.8599<br />text BUZZD to 28993 to get...<br />buzzd: your city. real time.<br /><br />