This document summarizes Forrester Research's analysis of the potential for location-based services. It identifies three categories of location-based services that marketers are interested in: mapping and search, shopping, and social. While these services show potential for growth, adoption rates are still relatively low currently. The document provides recommendations for marketers to experiment with location-based services now and look for ways to address users' privacy concerns and demonstrate how services can provide utility in addition to convenience.

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2. The (Potential) Location-Based Services Revolution
Melissa Parrish, Analyst
@melissarparrish
September 14, 2010
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2009

3. Agenda
Three categories of location-based services
Growth indicators
Recommendations
What it means
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4. Philip has a lunch date
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5. This is NOT the LBS landscape
But it illustrates some of what drives consumers’ fears about location-
based services and technology
Overwhelming and intrusive advertising
Constant "shouting" of messages
No opt-in, no opt-out
Misuse of private information
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6. Marketers are interested in 3
LBS categories: mapping &
search, shopping, and social
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7. Mapping, Navigation & Search
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8. Mapping mobile adoption
Overall, 13% of online cell phone owners look up
directions or maps at least monthly
Among online smart-phone owners, this number
increases to 50%
Among smart-phone owners, 31% have used an
application for maps within the past three months.
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9. Internet is preferred local search method across
generations
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10. Top 3 search topics include “Local”
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11. Mobile Search Usage Is Growing
Mobile Search Users % Of Mobile Internet Users
Source: Forrester Research Mobile Advertising Forecast, 2010-2015 (US)
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12. Mapping, navigation & search takeaways
Extension of a long-standing, non-digital consumer behavior
May or may not be mobile-based
Already part of SEM mix for many marketers
Consumer adoption linked to increased access to more powerful hardware
Forrester expects 74% of mobile internet users to perform 13 mobile
searches per month by 2015
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13. Shopping
ShopAlerts
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14. 28% of mobile online users are interested in some form
of discounts or promotions
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15. Only 3% have requested a
mobile coupon, and only
another 3% have used one
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16. Improved discoverability & convenience will drive
adoption
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17. Social
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18. Tons of buzz, but not tons of users…..yet
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19. But those who do use LBSN are highly influential
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20. Young, well-educated males use LBSNs
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21. And they use other LBS more than other consumers
too
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22. Advice for marketers
Companies with a culture and budget that supports experimentation should start
testing now
Others should jump in when scale matches business objectives
Explore all LBSNs
Create incentives for new customers
Offer discounts and coupons
Reward loyal customers
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23. Agenda
Three categories of location-based services
Growth indicators
Recommendations
What it means
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24. Mobile is becoming
increasingly important and
marketers are taking notice
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25. Mobile Internet and Internet-Centric Phone Usage Is Growing
% Mobile Internet Users
Mobile Internet Users (1x/mo) Using Internet-Centric Phones
Source: Forrester Research Mobile Advertising Forecast, 2010-2015 (US)
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26. Mobile marketing is growing, too
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27. Agenda
Three categories of location-based services
Growth indicators
Recommendations
What it means
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28. How can you ensure the growth
of collaboration between
services and marketers?
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29. Address users’ needs
Allay privacy concerns
Integrate marketers in a way that presents their messages and offerings
as true service
Think about utility in addition to convenience
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30. Consider the marketers’ perspective
Majority look for scale
Case studies help close the deal
Help educate them about how it fits into the marketing mix
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31. Agenda
Three categories of location-based services
Growth indicators
Recommendations
What it means
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32. Imagine Philip’s lunch date again, but this time…
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33. Thank you
Melissa Parrish
+1 212.857.0784
mparrish@forrester.com
@melissarparrish
www.forrester.com
© 2009 Forrester Research, Inc. Reproduction Prohibited