Location-based marketing uses location data to provide relevant ads and offers to consumers. It has evolved from early proximity-based models driven by technology to new approaches driven by consumer apps and social networks. Current approaches emphasize relevance, relationships, engagement and incentives to check in at locations. The value is moving beyond just location to tagging various objects and content to drive highly relevant ads. Privacy and ensuring benefits for both businesses and users will be important as location-based services continue to grow.

1. Location Based Marketing, what’s in for mePowerdemo on Digital Marketing First October 28th 2010, Brussels, Tour & TaxiLBi 1

2. It’s all about relevance

3. It’s not traditional media that are dead (although some of them smell rather funny).It’s unwanted, irrelevant interruptions and stupidity that we are fed up with.By the way, who came up with that stupid concept of “Display Advertising”? Isn’t all advertising (except radio) display?

4. Relevant AdvertisingSearchDisplayversusClassifiedsIrrelevant AdvertisingDM

5. EXTREMELY irrelevant

6. EXTREMELY relevant

7. Location Based Services(relevant now and here)CRM(relevant for who I am)any kind of (creative) formatPeer-Pressure and Peer-Guidance(because I trust my social network more than I trust brands)Brands as Friends(because you tell me stories and provide me with real value)RELEVANCE MARKETINGWhen? Now!What? Search! Apps!Who? Me!Where? Here!It’s about building respectful relationships with customers, based on relevant communication, providing value for both sides, without annoyance or intrusion.And it is finally possible today.

8. Types of Location Marketing

9. The start ... technology-driven LBS“Proximity Based Marketing”

10. Machine-driven

11. Centralized models

12. Top-down

13. Traditional phone experience

14. “Campaign”

15. Solitary (one2many)Case Thomas Cook - Proximity Based MarketingWorld Travel Conference

16. 2000 attendees

17. How to interact with attendees?

18. How to manage?

19. Fast and efficient

20. Welcome messages

21. Timed announcements

22. Departure messages

23. 4 interactive zones

24. Targeted announcements

25. Real Time Statistics => adaptationsCase – BlueFi - Proximity Based MarketingAnnual Sales period (2 weeks)

26. 20 hangout locations Bangalore

27. Telecom provider

28. Segmentation of customers:

29. Lower End

30. Mid Segment

31. High End

32. Relevant communication to each of them

33. Offers that matched their profilesCase – BlueFi - Proximity Based MarketingActivations to turn on Bluetooth

34. Walk in our outlet on the 2nd floor for offers and surprises right now

35. Bluetooth activation from 20 to 150% increase

36. 45% increase in footfall with Bluetooth turned on

37. +50.000 engagements

38. +4.000 store visitsA no-brainer: background LBSApp-driven

39. De-centralized models

40. Bottom-up / top-down

41. Great experience

42. Social

43. Relevance, relevance, relevanceCase – Starbucks: Mayor discounts & Barista badge StarbucksBarista badge

44. The boom today: Check-in ServicesPeople- and business-driven

45. De-centralized models

46. Bottom-up

47. Rich experience

48. Relationship, engagement, loyalty

49. Social

50. Incentive-based (badges, coupons, ...)The boom today: Check-in Services

51. The boom today: Check-in Services

52. The boom today: Check-in Services

53. Case – Tasti D-Lite & FourSquareTasti D-Lite=Frozen dessert

54. TastiRewards

55. Extended Loyalty Program

56. Associate Twitter &FourSquare with your membership card

57. Earn extra points for purchases

58. AutotweetsCheckin-in is not just about location

59. Case – RunKeeper: No Check-In FourSquare BadgeRunKeeper = App tracking fitness routines

60. Exclusive badges without having to check-in but for doing something!

61. Complete a marathon? => badge

62. One pair of “trainers” is checking in at points and sends updates

63. First at venue = free trainersCheckin-in is not just about location

64. Checkin-in is not just about location

65. Case – Jimmy Choo - Treasure Hunt on FourSquareJimmy Choo = Shoe stores in London

66. One pair of “trainers” is checking in at points and sends updates

67. First at venue = free trainersWhat’s next?

68. Case – Beware of the marketing GAP!Gap

69. BlackMagic Event

70. 25% Foursquare & Twitter & FB discount

71. Foursuare=Show you check-in @ cashier

72. Facebook= print out coupon

73. Twitter= discount code at cashier

74. … the code your phone gave me actually didn’t workCase – Beware of the marketing GAP!

75. Some IssuesSaturation?

76. Privacy? Security?

77. Value proposition?

78. Spam (yep, I am talking to you, advertisers!)What if we would merge LBS & FootPath Technology?FootPath Technology gives answers to: Do shoppers at Innovation also visit Marks and Spencer?

79. Will shoppers go out of their way to visit Starbucks?

80. Or do they visit the closest coffee shop?

81. Would our centre benefit from the inclusion of a bookstore?

82. How do tenant relocation decisions effect overall centre sales?But as well: What path do customers follow within Marks & Spencers?What if we would merge LBS & FootPath Technology?

85. ConclusionLocation, Location, Location. Right, but the actual value will be in tagging items, objects, brands, artists, media, content, ...

86. Location will be one of the key drivers of relevance marketing

87. We will see all flavors of LBS (back-ground, user-driven, ...)

88. The industry has to take care not to fuck up

89. create value (and incentives)

90. don’t see this as the next Holy Grail (well, it is, but not for you, for the user!

91. Users will have to find a balance between privacy and convenienceSpecial thanks to:Jo Caudron – Dear Media

92. Antony Slabinck – Lbi Belgium

93. IAB BelgiumFor research and their input for this presentation!

94. Thank youLBi BelgiumVorstlaan 191 Bd du SouverainB-1140 BrusselsKortrijksesteenweg 1144 bus NB-9051 Sint-Denijs-Westremwww.lbigroup.beRik Lagey – Digital AddictRik.lagey@lbigroup.be+32 476 22 76 00Twitter: @rik_lagey