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Location-based mobile marketing at scale




   Mobile Payments Conference:
  “It’s the wallet, not the transaction”

                       September 8, 2011
                             © Placecast, 2011. All rights reserved
Placecast is leading innovation in location-based commerce

                                                 6 years in development

                                                 Proprietary technology and
                                                  patents solve problems of
                                                  running location-based programs
                                                  at scale

    “Placecast is at the forefront of a new      ShopAlerts is the leading opt-in
   wave of location-based companies that          location-based mobile marketing
   have built up the necessary intelligence       solution
      and data to thrive as the location
       advertising market takes hold.”           Loyalty/CRM programs for
  ABI Research                                    brands and acquisition programs
                                                  for carriers

                                                 Over 6M active users

                                                 4 carrier programs including
                                                  AT&T and Telefonica O2 UK


                                                               © Placecast, 2011. All rights reserved
Harris Poll:
Consumer of all ages are want mobile offers

                                  At least Somewhat Interested
                              Base: Cell Phone/Smartphone Owners
                                                                                                                   Total
    50%
                                                                                                                   Men
                    44%
    45%       42%
                            40%                                                                                    Women
    40%
    35%
                                         30% 29% 30%
    30%
                                                                                  26%
    25%
                                                                    21%                              20%
    20%                                                                                      17%
                                                                          16%
                                                                                                             14%
    15%
    10%
     5%
     0%
                    18-34                     35-44                       45-54                       55+

    n=1719
    Assuming you gave permission, how interested, if at all, would you be
    in receiving text alerts about new products, sales and/or promotions from your
    favorite merchants, restaurants, or stores on your cell phone/Smartphone?




                                                                                        ©Placecast, 2011. All rights reserved.
Harris Poll:
Consumers want relevant mobile marketing from retailers
                            Categories of Interest – Location-based Alerts
                         Almost equal interest in restaurants, fast food, travel, health
                                                      0%   10%   20%   30%   40%   50%   60%     70%      80%       90%

                  Grocery coupons and promotions
   National restaurant chain promotions and offers…
      Entertainment products and availability (e.g., …
             Fast food menu items and promotions
  Beauty and fashion (e.g., shoes and accessories)
                  Coffee and beverage promotions
    Electronics product offers and promotions (e.g., …
       Travel services, special rates and amenities…
       Health-related offers including gym services…
                       Convenience store products
                                  Home furnishings
                                                                                         Male          Female
  Infant and child-related products/services/events
             Bar or nightclub offers and promotions
                    Sporting goods and equipment
                                              Other
                                              None                                                        N=476




                                                                                          ©Placecast, 2011. All rights reserved.
Smartphone users and shopping behavior


▪ 79 percent of smartphone consumers use their phones
  for shopping-related activities, such as comparing
  prices, finding more product info, or searching inventory.

▪ 74 percent of smartphone shoppers make a purchase,
  whether online, in-store, or on their phones.

▪ 70 percent use their smartphones while in a store



Source: The Mobile Movement: Understanding Smartphone Users, a study conducted by Google and Ipsos OTX MediaCT


                                                                                              ©Placecast, 2011. All rights reserved.
The Opportunity: 1 trillion dollars of offline retail sales per year
 influenced by digital marketing




http://www.businessinsider.com/using-mobile-to-bridge-the-gap-between-online-and-offline-marketing-2011-9

                                                                                                            ©Placecast, 2011. All rights reserved.
For marketers, mobile wallet is opportunity to close
loop on promotions driving real-world purchases

                                             Mine
                                           Customer
                                             Data

                      Purchase data
                                                            Promo Email
                     fed back to CRM




                                                                      Opt-in to
                Consumer buys
                                                                     Receiving
                 at Merchant
                                                                     ShopAlerts




                                                      Ph # + Prefs tied
                           Consumer Gets
                                                        to payments
                            Custom Offer
                                                          account




    For marketers, this allows for optimization of mobile promotions with back-
                       end conversion metrics based on CPA

                                                                                  © Placecast, 2011. All rights reserved
Introducing ShopAlerts®




                   http://placecast.net/shopalerts/index.html

                                                                © Placecast, 2011. All rights reserved
Telefonica O2 ShopAlerts Case Study

 “The most ambitious deployment yet of new location-based
             wireless marketing technology…”
                              Financial Times 10/15/10 O2 - Placecast Partnership




                                                       ©Placecast, 2011. All rights reserved.
Telefonica O2: Case Study

                            ▪ Launch…
                               - Originally plain SMS without
                                 location
                               - 2 messages/week

                            ▪ Today…
                               - Grown to 6M users in 12
                                 months
                               - Consumer preference center
                               - Available targeting: age +
                                 gender location + time +
                                 expressed interest in product
                                 category
                               - 5 messages/week
                               - Great results for dozens of top
                                 retail and CPG brands


                                       ©Placecast, 2011. All rights reserved.
Brand case study: Fitness First generates powerful results



                                                                               ▪ Targeting: 18 – 35 who expressed
                                                                                 interest in healthy living
                                                                               ▪ Geofences set around Fitness First
                                                                                 sports clubs across the UK
                                                                               ▪ Offer: a free two-day pass, with
                                                                                 details of the nearest club.
                                                                               ▪ Results:
                                                                                        - £385,000 in new revenue for Fitness
                                                                                          First
                                                                                        - 2,690% ROI
                                                                                        - 1,100 new gym sign-ups for 4 and
                                                                                          12 month memberships




http://www.mobilenewscwp.co.uk/2011/07/o2-location-ads-make-385000-for-fitness-first/

                                                                                                      ©Placecast, 2011. All rights reserved.
Problem to solve: personalized, location-based offer management




  “Deliver the most relevant, nearby
  offer, tailored for each user based
   on real-time location, individual
   preferences, prior behavior…in
     real-time across any mobile
                 device.”

                                              © Placecast, Proprietary and Confidential, 2011
ShopAlerts ingests location, targeting and user data to
deliver personalized offers
     User + Location-based Offer
      Real-time message tailored to user




                       Offers
             Direct Sold| Affiliate Offers |
          Display | Local Search | SMS | MMS


                User Profile Data
         Customer Profiles| Behavioral Data|
         3rd Party Intender| Expressed Intent


              Demo/Psycho Layer
         HH income | HH size | age | gender |
         education | PRIZM lifestyle categories


         Geography + Time Layer
      neighborhoods | merchant addresses|
           weather | events calendars



              Positioning Data
   Network| Passive/Predictive| GPS | Wifi
        zip code | address | lat-long


                                                  ©Placecast, 2011. All rights reserved.
ShopAlerts Self-serve – turnkey UI for campaigns
                           ▪   White-label tool that enables
                               turnkey delivery of ShopAlerts
                               programs in 3 easy steps
                           ▪   Key components include
                                - Upload locations
                                - Create/manage geofences
                                - Activate discounts and
                                  promotions
                                - Reporting and analytics
                           ▪   Can be used by carrier, agency,
                               or brand personnel and even
                               SMBs directly
                           ▪   Like Google AdWords for the real
                               world



            http://youtu.be/-3bEV9og3HA
                                                ©Placecast, 2011. All rights reserved.
Location-based analytics for marketers

                                  ▪ Registrants
                                  ▪ Opt-ins/Outs
                                  ▪ Deliveries over time
                                  ▪ Top geofences
                                    overlaid on map
                                  ▪ Drag and drop UI for
                                    custom reports




                                         ©Placecast, 2011. All rights reserved.
Thank you!


                        Blair Swedeen
  SVP – Strategy & Business Development
             blair.swedeen@placecast.net
                        m: (773) 727-1375




                © Placecast, 2011. All rights reserved

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Placecast Shopalerts - Mobile Payments Show

  • 1. Location-based mobile marketing at scale Mobile Payments Conference: “It’s the wallet, not the transaction” September 8, 2011 © Placecast, 2011. All rights reserved
  • 2. Placecast is leading innovation in location-based commerce  6 years in development  Proprietary technology and patents solve problems of running location-based programs at scale “Placecast is at the forefront of a new  ShopAlerts is the leading opt-in wave of location-based companies that location-based mobile marketing have built up the necessary intelligence solution and data to thrive as the location advertising market takes hold.”  Loyalty/CRM programs for ABI Research brands and acquisition programs for carriers  Over 6M active users  4 carrier programs including AT&T and Telefonica O2 UK © Placecast, 2011. All rights reserved
  • 3. Harris Poll: Consumer of all ages are want mobile offers At least Somewhat Interested Base: Cell Phone/Smartphone Owners Total 50% Men 44% 45% 42% 40% Women 40% 35% 30% 29% 30% 30% 26% 25% 21% 20% 20% 17% 16% 14% 15% 10% 5% 0% 18-34 35-44 45-54 55+ n=1719 Assuming you gave permission, how interested, if at all, would you be in receiving text alerts about new products, sales and/or promotions from your favorite merchants, restaurants, or stores on your cell phone/Smartphone? ©Placecast, 2011. All rights reserved.
  • 4. Harris Poll: Consumers want relevant mobile marketing from retailers Categories of Interest – Location-based Alerts Almost equal interest in restaurants, fast food, travel, health 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Grocery coupons and promotions National restaurant chain promotions and offers… Entertainment products and availability (e.g., … Fast food menu items and promotions Beauty and fashion (e.g., shoes and accessories) Coffee and beverage promotions Electronics product offers and promotions (e.g., … Travel services, special rates and amenities… Health-related offers including gym services… Convenience store products Home furnishings Male Female Infant and child-related products/services/events Bar or nightclub offers and promotions Sporting goods and equipment Other None N=476 ©Placecast, 2011. All rights reserved.
  • 5. Smartphone users and shopping behavior ▪ 79 percent of smartphone consumers use their phones for shopping-related activities, such as comparing prices, finding more product info, or searching inventory. ▪ 74 percent of smartphone shoppers make a purchase, whether online, in-store, or on their phones. ▪ 70 percent use their smartphones while in a store Source: The Mobile Movement: Understanding Smartphone Users, a study conducted by Google and Ipsos OTX MediaCT ©Placecast, 2011. All rights reserved.
  • 6. The Opportunity: 1 trillion dollars of offline retail sales per year influenced by digital marketing http://www.businessinsider.com/using-mobile-to-bridge-the-gap-between-online-and-offline-marketing-2011-9 ©Placecast, 2011. All rights reserved.
  • 7. For marketers, mobile wallet is opportunity to close loop on promotions driving real-world purchases Mine Customer Data Purchase data Promo Email fed back to CRM Opt-in to Consumer buys Receiving at Merchant ShopAlerts Ph # + Prefs tied Consumer Gets to payments Custom Offer account For marketers, this allows for optimization of mobile promotions with back- end conversion metrics based on CPA © Placecast, 2011. All rights reserved
  • 8. Introducing ShopAlerts® http://placecast.net/shopalerts/index.html © Placecast, 2011. All rights reserved
  • 9. Telefonica O2 ShopAlerts Case Study “The most ambitious deployment yet of new location-based wireless marketing technology…” Financial Times 10/15/10 O2 - Placecast Partnership ©Placecast, 2011. All rights reserved.
  • 10. Telefonica O2: Case Study ▪ Launch… - Originally plain SMS without location - 2 messages/week ▪ Today… - Grown to 6M users in 12 months - Consumer preference center - Available targeting: age + gender location + time + expressed interest in product category - 5 messages/week - Great results for dozens of top retail and CPG brands ©Placecast, 2011. All rights reserved.
  • 11. Brand case study: Fitness First generates powerful results ▪ Targeting: 18 – 35 who expressed interest in healthy living ▪ Geofences set around Fitness First sports clubs across the UK ▪ Offer: a free two-day pass, with details of the nearest club. ▪ Results: - £385,000 in new revenue for Fitness First - 2,690% ROI - 1,100 new gym sign-ups for 4 and 12 month memberships http://www.mobilenewscwp.co.uk/2011/07/o2-location-ads-make-385000-for-fitness-first/ ©Placecast, 2011. All rights reserved.
  • 12. Problem to solve: personalized, location-based offer management “Deliver the most relevant, nearby offer, tailored for each user based on real-time location, individual preferences, prior behavior…in real-time across any mobile device.” © Placecast, Proprietary and Confidential, 2011
  • 13. ShopAlerts ingests location, targeting and user data to deliver personalized offers User + Location-based Offer Real-time message tailored to user Offers Direct Sold| Affiliate Offers | Display | Local Search | SMS | MMS User Profile Data Customer Profiles| Behavioral Data| 3rd Party Intender| Expressed Intent Demo/Psycho Layer HH income | HH size | age | gender | education | PRIZM lifestyle categories Geography + Time Layer neighborhoods | merchant addresses| weather | events calendars Positioning Data Network| Passive/Predictive| GPS | Wifi zip code | address | lat-long ©Placecast, 2011. All rights reserved.
  • 14. ShopAlerts Self-serve – turnkey UI for campaigns ▪ White-label tool that enables turnkey delivery of ShopAlerts programs in 3 easy steps ▪ Key components include - Upload locations - Create/manage geofences - Activate discounts and promotions - Reporting and analytics ▪ Can be used by carrier, agency, or brand personnel and even SMBs directly ▪ Like Google AdWords for the real world http://youtu.be/-3bEV9og3HA ©Placecast, 2011. All rights reserved.
  • 15. Location-based analytics for marketers ▪ Registrants ▪ Opt-ins/Outs ▪ Deliveries over time ▪ Top geofences overlaid on map ▪ Drag and drop UI for custom reports ©Placecast, 2011. All rights reserved.
  • 16. Thank you! Blair Swedeen SVP – Strategy & Business Development blair.swedeen@placecast.net m: (773) 727-1375 © Placecast, 2011. All rights reserved