Nyc Product Camp 2011 Ver 3.0


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My Presentation on Location Based Mobile Advertising at ProductCamp, NYC 2011

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Nyc Product Camp 2011 Ver 3.0

  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. 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 />
  3. 3. 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
  4. 4. 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 />
  5. 5. LBA Delivery Models<br />
  6. 6. 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 />
  7. 7. Market Forecasts<br /><ul><li>US Mobile Advertising is at $1.24 BN in 2011 and estimated to be $5 BN by 2015
  8. 8. In 2011, 49M engaged with advertising, 12M clicked on ad and purchased an item
  9. 9. Mobile Local Ad Spending will be the fastest growing medium over next 5 years
  10. 10. 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
  11. 11. Mobile Internet - 3G/4G Data Networks
  12. 12. GPS Enabled Handsets
  13. 13. Free Mapping APIs</li></ul>Challenges<br /><ul><li>Privacy
  14. 14. Accuracy of Location
  15. 15. 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 />
  16. 16. Key Recommendations<br />Product Innovation Areas and Revenue Generation<br />Platform Providers:<br /><ul><li>Accuracy of Location
  17. 17. Location + Context is the key
  18. 18. Spam Control
  19. 19. Develop Predictive Analysis and Intelligence tools</li></ul>Operators:<br /><ul><li>Control Privacy of the End-user
  20. 20. Partner with Platform Providers and Application Developers
  21. 21. Provide Mobile App stores
  22. 22. 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 />
  23. 23. Positioning and Measurement<br />Determining Location<br /><ul><li>GPS
  24. 24. Cell-id
  25. 25. Wi-Fi
  26. 26. AGPS</li></ul>Measurement Metrics<br /><ul><li>CPM
  27. 27. CPC calculated based on CTR
  28. 28. CPA
  29. 29. Click to Call
  30. 30. Click to Navigate
  31. 31. Click to Website
  32. 32. 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 />
  33. 33. THANK YOU<br />Nagendra Kumar Lavu <br />Senior Product Manager<br /><br />