This document discusses location-based mobile advertising. It describes types of location-based ads like display, message, and search ads. It notes that location-based ads work best for local and relevant offers, but require user opt-in to track location. On average, 30% of users opt-in, with rates as high as 35% for Android users. Examples are given of successful location-targeted campaigns by Yellow Pages and McDonald's that saw click-through rates 2-4 times higher than non-targeted ads. Location-based messaging is also discussed as having potential due to low opt-out rates below 2% and proven ability to generate store visits and transactions.

1. Permission based location
aware advertising
Ashu Mathura, founder & CEO
Inside Mobile Advertising! 1

2. What is Location Based Advertising?
Location based mobile advertising is still unknown territory to many brands and
agencies and surrounded by mystery, complexity and conflicting stories
Types of location based advertising Insights
• Location based DISPLAY advertising • Great for local relevant advertising, like retail
• Requires the opt-in of the end user to track
• In applications their location
• On mobile web sites • MADS powers a good number of apps that ask
the end user to opt-in for location tracking
• Location based MESSAGE advertising • Even greater for local relevant advertising and
creating awareness for special offers
• SMS messaging • Requires the opt-in of the end user to sent push
• MMS messaging messaging and track location
• MADS powers 2 operators for LB-messaging
• Location based SEARCH advertising • Great for connecting a current search topic to
local offers and stores nearby
• Requires the opt-in of the end user to track
their location
• Opportunity for ‘Yellow Page’ companies
Inside Mobile Advertising! 2

3. Getting users to opt-in?
On average we see a 30% opt-in ratio of end users, when asked permission to track
their location inside applications, for relevant local content apps it’s a lot higher
Geo-fencing & targeting Tracking opted-in users Insights
• iPhone users show an 25%
average opt-in ratio
• Android users show an
35% opt-in ratio
• For mobile internet the
opt-in ratio is lower than
the iPhone average
• For messaging, we have
measured a very low opt-
out if we use the push
messaging opt-in base
• Message relevance is key!
Inside Mobile Advertising! 3

4. Example: YellowLocal.co.nz campaign
186 Localized creatives displayed for 186 GPS locations, offering local relevant
content from the local Yellow Pages and split between iOS and Android
1 Campaign with 186 GPS targeted flights across NZ Key results
• Non GPS targeted flight
Average CTR 0,42%
• 186 GPS iPhone flights
Average CTR 2,73%
(low 0,79% and high 8,33%)
• 186 GPS Android flights
Average CTR 3,78%
(low 0,87% and high 10,96%)
Inside Mobile Advertising! 4

5. Example: McDonalds.nl campaign
McDonalds banner is only shown when consumers are close to an actual McDonalds
outlet, on-click banner expands into map with nearest outlet and shortest route
Typical shift in consumer consumption of content Key results
• Only targeted at people
near a McDonalds outlet
• CTR of 1,67% (compare to
0,21% of similar non-GPS
targeted campaign earlier)
• Next campaign will have
GPS targeted coupon
(discount or free
additional item)
• Need to integrate with
store cash register to
measure actual
conversions accurately
Inside Mobile Advertising! 5

6. Location based messaging
Location based push messaging is in it’s early stages, however, we believe that it
has a great potential and future for both consumers and advertisers (retail)
Insights
• Already proven to generate
more transactions at cash
Romania Egypt register
• Already proven to generate
3.5mio opt-in subscribers for 25mio opt-in subscribers for more store traffic
push message advertising push message advertising • Great for distributing
coupons and get a free gift
Location aware since August Location aware from messages
2011 October 2011 • Consumer response seems
positive, given the low
amount of opt-outs (<2%)
Key locations: shopping Key locations: shopping • Challenging to close the
malls, grocery chains, and malls and grocery chains loop and measure cash
events register conversions
• Relevance of message is
key! (keep opt-out low)
• Therefore having additional
demographic data points is
very relevant
Inside Mobile Advertising! 6

7. Questions?
Thank you!
Email ashu.mathura@mads.com
Mobile +31 6 53 78 78 04
Skype ashumathura
Web www.MADS.com
Inside Mobile Advertising!