This document discusses profiling advertising using location data and how to balance its value with mitigating risks to consumers. It outlines the value of mobile marketing and location data for targeting ads, with examples of what marketers are willing to pay for different levels of location and user information. It also discusses how to respect consumers by applying the "6 C's" - choice, control, customization, consideration, confidentiality, and consent - to give consumers benefits and protect their privacy and experience. The goal is to understand the opportunity but also mitigate risks to build consumer trust.

1. Profiling advertising: is it worth the money
and the risk?
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2. Value of Profiling
• Value of the Mobile Marketing Market
• How Marketers want to use location
• What are they willing to pay for it
• What are examples?
Mitigating the Risks of Profiling
• Rule # 1: Respecting the Consumer
• Positive Consumer Experience using the “6 C’s”

3. What is the Value?
Source: MMA 2009
Source: MMA 2009
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4. What is the opportunity for growth?
Source: MMA 2009

5. What is the opportunity for growth?

6. Why do Marketers invest in Mobile?
Delivering the right MESSAGE:
• To the right PERSON
• At the right TIME
• In the right PLACE

7. Where are Marketers currently spending money?
Mobile marketing campaigns
(mean number of campaigns among respondents with at
least one campaign involving mobile marketing in the last year)
Source: MMA 2009

8. Do marketers care about Location?
Benefits to the Advertiser
• Collection of demographic information
• Campaign targeting
• Local Search
• Point-of-Sale Marketing

9. What are marketers willing to pay?
Demographic information $
- More accuracy than other mediums
Campaign targeting $$
- More accuracy than other mediums
- Location can lead to info on: Weather, Speed, etc.
- Predictive targeting
Local Search $$$
- Likely to drive consumers to store
Point-of-Sale Marketing $$$$
- High value consumers

10. Mitigating the Risks
Respect the Consumer

11. Mitigating the Risks
Benefits to the Consumer
• Offsets the price of the valuable
services
• More targeted advertising = fewer,
more relevant advertisements

12. How the 6 C’s apply to Location Based Advertising
Choice

13. How the 6 C’s apply to Location Based Advertising
Choice
Control

14. How the 6 C’s apply to Location Based Advertising
Choice
Control
Customization

15. How the 6 C’s apply to Location Based Advertising
Choice
Control
Customization
Consideration

16. How the 6 C’s apply to Location Based Advertising
Choice
Control
Constraint
Customization
Consideration

17. How the 6 C’s apply to Location Based Advertising
Choice
Confidentiality
Control
Constraint
Customization
Consideration

18. Example # 1: Sponsored Listing in Local Search
Business Model: My Location:
Cost per Click, Cost per Call 1115 S. Broadw
* Pizza Parlor
Joe’s Pizza
Information to Advertiser: Ray’s Pizza
Quantity per Location Sam’s Pizza
6 C’s

19. Example # 2: In Store Promotion
Business Model: Fixed Fee,
Revenue Sharing,
50%
Off
All Ladies’
Information to Advertiser: Clothing
Today only
Unique ID of Consumer
Time of engagement
Store Location,
6 C’s

20. Example # 3: Application Sponsorship
Business Model: Text Message:
1/1
CPM, CPA, Flat Fee,
Burritofiesta
is having a 2
Information to Advertiser: for 1 burrito
day!
Subscriber Information
Location Information over time
6 C’s

21. Don’t forget
Value of Profiling
• Value of the Mobile Marketing Market
• How Marketers want to use location
• What are they willing to pay for it
Mitigating the Risks of Profiling
• Rule # 1: Respecting the Consumer
• Positive Consumer Experience using the “6 C’s”

22. THANK YOU
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