Location-Based Advertising<br />Shawn Gunn<br />Head of Publisher Affiliations - Americas<br />
Agenda<br />Why Location Relevance is Advertising’s Next Big Thing<br />Why Location Based Advertising is a Win-Win-Win fo...
Premium Mobile Network from the world’s largest manufacturer of mobile phones<br />Location based advertising from the wor...
Building a global location-enabled network<br />Premium Mobile Network<br />Location Enabled Network<br />
The Opportunity<br />LBS is projected to be a $13B business worldwide by 2013, up from $515M in 2008<br />Driving directio...
The Opportunity<br />96%<br />of consumer purchases are still made at brick and mortar locations<br />Which means advertis...
NAVTEQ’s LocationPoint™ Advertising<br />NAVTEQ’s LocationPoint Advertising lets advertisers directly and more personally ...
Why LocationPoint™ Advertising <br />Location Relevant: <br />Reach the consumer when they’re near a purchase decision.<br...
An Advertiser’s Nirvana<br />LocationPoint Advertising offers:<br /><ul><li>A powerful and unique mobile promotions servic...
Provides a global one-stop shopping location-aware ad network inside navigation and location relevant applications and wir...
Enables advertisers to deliver GPS-targeted promotions to consumers as they navigate their lives
Utilizes patented ad serving technology</li></ul>10<br />10<br />
An Advertiser’s Nirvana<br />Research underscores that LPA ads work<br />Seventy-two percent of consumer find ads acceptab...
Research shows that consumers:<br />A Consumer’s Value Add<br /><ul><li>See ads for content as fair exchange
Value ads that are in context and integral to the experience
Like having special access to coupons and sales information</li></ul>Source:  Proprietary with IPSOS; “Place-Based Dynamic...
A Consumer’s Value Add<br /> LocationPoint Advertising Offers:<br /><ul><li> Timely and relevant merchant information abou...
  Exclusive coupons and offers
  Integrated and powerful one-click interaction, etc.
 Click to Show
 Click to Map
 Click to Call
 Click to Route
 Click to Coupon</li></ul>13<br />
The Affiliate Advantage<br /> Affiliates emerge as a key player in new frontier of advertising<br /> NAVTEQ’s LocationPoin...
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Navteq LocationPoint Presentation020110

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Overview of NAVTEQ\'s location based advertising solution &quot;LocationPoint&quot;.

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Navteq LocationPoint Presentation020110

  1. 1. Location-Based Advertising<br />Shawn Gunn<br />Head of Publisher Affiliations - Americas<br />
  2. 2. Agenda<br />Why Location Relevance is Advertising’s Next Big Thing<br />Why Location Based Advertising is a Win-Win-Win for Advertisers, Consumers & Affiliates<br />How NAVTEQ’s LocationPoint Advertising Helps Affiliates Fully Exploit the Location Based Advertising Opportunity<br />2<br />
  3. 3. Premium Mobile Network from the world’s largest manufacturer of mobile phones<br />Location based advertising from the world’s largest mapping and location company <br /><ul><li>3</li></li></ul><li>NAVTEQ Media Solutions<br />NAVTEQ Media Solutions is building the world’s leading location-aware mobile advertising network<br />Leveraging tier one relationships<br />Delivering ads to consumers based on their precise location, search behavior and profile <br />Reaching mobile phone applications, mobile internet sites and personal navigation devices <br />
  4. 4. Building a global location-enabled network<br />Premium Mobile Network<br />Location Enabled Network<br />
  5. 5. The Opportunity<br />LBS is projected to be a $13B business worldwide by 2013, up from $515M in 2008<br />Driving directions/navigation and weather lead LBS applications <br />Consumers want local alerts and special offers or promotions from nearby stores or other retailers<br />Source: Business Week <br />6<br />
  6. 6. The Opportunity<br />96%<br />of consumer purchases are still made at brick and mortar locations<br />Which means advertisers care deeply about influencing consumer behavior and purchasing decisions near potential point of purchase<br />LBS provides the platform <br />Source: istockanalst.com<br />7<br />
  7. 7. NAVTEQ’s LocationPoint™ Advertising<br />NAVTEQ’s LocationPoint Advertising lets advertisers directly and more personally connect with consumers via affiliates<br />8<br />
  8. 8. Why LocationPoint™ Advertising <br />Location Relevant: <br />Reach the consumer when they’re near a purchase decision.<br />Integrated: <br />Incorporate the offer into the content so that the message seamlessly adds to the user experience.<br />Compelling:<br />Entice consumers with special calls to action such as click to route, click to coupon, click to call.<br />9<br />
  9. 9. An Advertiser’s Nirvana<br />LocationPoint Advertising offers:<br /><ul><li>A powerful and unique mobile promotions service which – for the first time ever – combines GPS-based proximity, contextual and demographic targeting, integrated location-based promotions engagement, and the delivery of mobile coupons
  10. 10. Provides a global one-stop shopping location-aware ad network inside navigation and location relevant applications and wireless devices
  11. 11. Enables advertisers to deliver GPS-targeted promotions to consumers as they navigate their lives
  12. 12. Utilizes patented ad serving technology</li></ul>10<br />10<br />
  13. 13. An Advertiser’s Nirvana<br />Research underscores that LPA ads work<br />Seventy-two percent of consumer find ads acceptable on navigation devices<br />Forty percent said they used their GPS device seven days a week<br />At least 50% of respondents that were exposed to a brand recalled seeing that brand (aided and unaided) <br />On average, 7% of people who reported seeing an ad on their navigation device for a certain brand, clicked on that ad for information on nearby locations<br />On average, 19% of people who recall seeing a specific ad reported clicking through for information on nearby locations<br />Up to 6% of navigation device users visit a business location because of seeing a advertisement on their navigation device<br />Source: Proprietary Research with MSRI on One-Way Advertising Usage and Effectiveness <br />11<br />
  14. 14. Research shows that consumers:<br />A Consumer’s Value Add<br /><ul><li>See ads for content as fair exchange
  15. 15. Value ads that are in context and integral to the experience
  16. 16. Like having special access to coupons and sales information</li></ul>Source: Proprietary with IPSOS; “Place-Based Dynamic Content Products & Advertising”<br />12<br />
  17. 17. A Consumer’s Value Add<br /> LocationPoint Advertising Offers:<br /><ul><li> Timely and relevant merchant information about local stores
  18. 18. Exclusive coupons and offers
  19. 19. Integrated and powerful one-click interaction, etc.
  20. 20. Click to Show
  21. 21. Click to Map
  22. 22. Click to Call
  23. 23. Click to Route
  24. 24. Click to Coupon</li></ul>13<br />
  25. 25. The Affiliate Advantage<br /> Affiliates emerge as a key player in new frontier of advertising<br /> NAVTEQ’s LocationPoint helps strengthen their hand, providing:<br /><ul><li>Turnkey monetization of any connected, location-aware product or service
  26. 26. Relevant, high-value ad placements
  27. 27. Additional opportunity to exploit new revenue streams or reduce costs
  28. 28. Easy LocationPoint™ integration
  29. 29. Platform independent
  30. 30. Multiple ad formats to choose from
  31. 31. In-application interaction that keeps end users engaged</li></ul>14<br />
  32. 32. The Experience on One-Way Devices<br />Ads rotate throughout a consumer’s interaction with the device:<br />When the device is turned on<br />Point of Interest Search<br />Checking for traffic information<br />When an ad is served to a device, the user has the option to interact with the ad by simply clicking on it.<br />When stopped or at the final destination<br />Coupon<br />
  33. 33. The Experience on Two-Way Devices<br />Hyper-Targeted: <br /><ul><li>Target customers based on their exact location and proximity to retail locations and the time of day.</li></ul>Integrated: <br /><ul><li>Incorporate offers into the content so that the message seamlessly adds to the user experience.</li></ul>Compelling:<br /><ul><li>Deliver value-added offers within relevant content that entice customers to take action. </li></ul>Results-Oriented:<br /><ul><li>Receive detailed campaign metrics to track and optimize ROI and eliminate advertiser waste.</li></ul>.<br /><ul><li>16</li></ul>16<br />16<br />
  34. 34. NAVTEQ LocationPoint™ uLocate Example<br />Call to Action<br />Users view the ad and, from there, can view coupons, visit advertiser’s web site, call, view maps and get directions. <br />Coupon Page <br />Users view and interact with the intent to redeem at the nearest retail location.<br />Banner Ad <br />Ad banner appears along the bottom bar. Users click on ad to enlarge. <br />17<br />
  35. 35. NAVTEQ LocationPoint™ Loopt Example<br />Map Banner Ad <br />The advertiser’s banner appears along top bar. Consumer clicks to enlarge. <br />Coupon Page <br />Users view and interact with the intent to redeem at the nearest retail location.<br />Landing Page <br />Consumer views the ad and, from there, can click to view coupon, visit advertiser’s web site, call, or view maps and directions. <br />
  36. 36. Turnkey Monetization<br />Platform<br />Sales Team<br />Patented Technology, Proprietary Platform<br /><ul><li>National & Local
  37. 37. N. America, EMEA & APAC
  38. 38. Location Targeting
  39. 39. Behavioral Targeting
  40. 40. User Preferences</li></ul>Affiliated Audience Devices & Apps<br />IN ADDITION TO<br />Operations Team<br />PND, App or Mobile Handset<br /><ul><li>Ad Fulfillment
  41. 41. Campaign Optimization
  42. 42. Detailed Reporting
  43. 43. Billing</li></ul>Graphical Ads<br />Audio Ads<br />Click-to-Route<br />Click-to-Call<br />Mobile Coupons<br />
  44. 44. Ad Inventory for Content<br />Ad Affiliation<br />1<br />Provides Content in exchange for Ad Space<br />Customer/Affiliate<br />Ad Sales<br />Content<br />3<br />NAVTEQ Sells Ad Space<br />Content Customer provides Ad Space in device/application<br />2<br />LPA<br />Platform<br />ADVERTISER<br />4<br />[Optional] Shares Ad Revenue with Customer<br />5<br />Pays NVT<br />
  45. 45. A Fully Supported Solution<br />Dedicated team of ad sales representatives across the globe<br /><ul><li>40 ad sales personnel and 40 in advertising operations
  46. 46. Existing relationships with over 800 advertising partners globally
  47. 47. Incorporate proprietary location-based and 3rd party ad serving solutions</li></ul>21<br />
  48. 48. Affiliate Engagement Process <br />Contract<br />Negotiation<br />Term <br />Sheet <br />And <br />Agreement<br />Final <br />Agreement,<br />Verification<br />and <br />Launch<br />Workshop:<br />Ad Placements<br />Financial Model<br />Business Terms<br />(Ranges <br />4-8 hrs)<br />LocationPoint <br />Product<br />and Technical<br />Presentation*<br />(Optional)<br />LocationPoint <br />Overview<br />Ad <br />Placement <br />Spec**<br />Ad Integration<br />Development***<br />NAVTEQ Driver<br />AE Leads<br />LocationPoint<br />Team Leads(BD/PM)<br /> * NAVTEQ provides API Specification and Integration Guidelines documents<br /> ** Customer responsible for Spec, with LP PM and/or TCS/CPM review/support<br />*** NAVTEQ provides access to LocationPoint Staging Servers during Development<br />22<br />
  49. 49. Ad Placement Workshop Process <br /><ul><li>Identify Primary Device/Application Use Cases</li></ul>Most frequent usage scenarios of the application<br />e.g. for PND: POI Search; Route Guidance, Map Tracking, etc.<br /><ul><li>Analyze Primary Use Case Flows</li></ul>User interface steps and screens within each Use Case<br /><ul><li>Consider User mindset within Use Case Flows</li></ul>Identify “decision points” where an advertisement might be effective w.r.t. driving a user action or response<br />e.g. leaving office, leaving home, arriving at home, starting detour, searching, etc.<br /><ul><li>Define Ad Placements within UI design</li></ul>Creative elements and sizes to fit into UI design<br />Ad interactivity design<br /><ul><li>Build Model</li></ul>Volume, Frequency of Use, Impressions per Use <br />Used to determine ARPU value for Promotions<br />23<br />
  50. 50. NAVTEQ: Strongly Positioned to Lead<br />NAVTEQis strongly positioned to lead in the LBA space<br />Expertise<br />Fully developed, patented ad server<br />Scale<br /><ul><li> Partnerships: PND, Handsets, Carriers, App. Providers, Developers
  51. 51. One Standard Advertiser Network</li></ul>Technology<br />Fully developed LPA platform deployed, putting us well ahead of the competition<br />Content<br />Best-in-class maps, infrastructure and dynamic<br />24<br />
  52. 52. Conclusions – Next Steps<br />Location Relevance is Advertising’s Next Big Thing<br />Why LBA is a Win-Win-Win for Advertisers, Consumers & Affiliates<br />NAVTEQ’s LPA Helps Affiliates Fully Exploit the LBA Opportunity<br />25<br />

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