Location Based Marketing Webinar Neustar FINAL
Document Sample
Location: A Key Ingredient to Successful
Mobile Marketing & Advertising
Speaker:
Lisa Peterson, Director of Mobile Solutions, Neustar
Topics for Discussion
• Overview and state of Mobile Marketing & Advertising and
Location in U.S.
– Key market drivers and trends
• Benefits
• Categories and key providers
• Location methods and uses
• Value chain participants
• Business Models
• Commercial implementation: Placecast ShopAlerts
– Consumer readiness and receptiveness
• Key Considerations
• Industry challenges
• Emerging technologies and future outlook
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About Neustar
Headquarters
Sterling, VA
» Publicly Traded (NYSE: NSR) » FY 2009 Revenue: US $480.4M
• Trusted provider of global numbering, • 10,000+ customer entities, including 4,000
discovery, routing, and registry services network operators
• Phone number assignments in 19 • Two (2) major Network Operations
countries Centers
• Approximately 900 employees worldwide • Nearly 150 network nodes worldwide 3
Neustar’s Solutions Enable The Mobile
Marketing Ecosystem
Engagement & Information & Content Management
Participation Intelligence Delivery Tools &
Services
Common Short Discovery Message Routing
Code Registry Services Short Code
Message Campaign
Administrator Cross-Operator Termination* Management
2D Bar Code Services
(Location, Delivery Reporting &
Clearinghouse Assurance
Presence)* Analytics
Serving Companies Across Mobile Marketing Value Chain
Brands Associations Solution Providers Operators
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*Coming soon
Mobile Marketing & Advertising in
the U.S.
• 293 M mobile users1
• 2010 spending up 79% over 2009, Mobile Delivery Modes & Reach
year-end estimated at $743 M2
• Analysts predict spending in the range
of $2.5 – 5B by 2014 300 SMS
Ad Spend ($M)
250
• Key Drivers: Mobile
Web 3
200
– Technology advances – more smartphones,
150
better user interfaces, faster speeds, more MMS
Apps
storage 100
– Economics – bundled data plans
50
– Both driving greater use of messaging,
mobile web, and data applications 50 100 200
• Text messages still majority of mobile Reach (millions)
marketing/ad spend, at $327M in 20102
– Other formats – video, mobile web displays, Sources: 1 CTIA, June 2010; 2eMarketer, 3ISpending includes
Search & Banner Ads
search – growing
• New Tactics Gaining Momentum: Location, Check-ins, Rewards 5
Mobile Location in the U.S.
Real-time Location Aware Connected Devices Are Everywhere
Mobile Location Modes: Accuracy & Reach
High
GPS/
A-GPS
Trilater
Accuracy
ation
WiFi
Cell
Sector
Cell ID
Low 50 100 150 200 250 300
•~80% (318M) subscribers with
GPS/A-GPS phones by YE 20111 Reach (millions)
•140 M Wi-Fi enabled phones by
YE 20142 Related Market Facts:
•All Tier 1 operators exposing •33M users accessing maps from mobile device3
network-based location – Cell ID
available on most devices •North America will account for 32.4% of worldwide
LBS revenue by 2014 ($4.3B)4
•Location based search and advertising expected to
drive $2B4 6
Sources: 1 iSuppli, July 2010; 2Wi-Fi estimates per Coda Research Study;
3comScore, 4/10; 4IE Research Markets
“Location Changes Everything”
The increasing momentum of mobile marketing and advertising in the
U.S., combined with ubiquitous mobile location, makes this a ripe
market for Location Based Mobile Marketing & Advertising. This
provides game-changing opportunities for marketers, advertisers,
and consumers.
“Millions of people are now walking around with a gizmo in
their pocket that not only knows where they are but also plugs
into the Internet to share that info, merge it with online
databases, and find out what – and who – is in the immediate
vicinity…Simply put, location changes everything. This one
input – our coordinates – has the potential to change all the
outputs. Where we shop, who we talk to, what we read, what
we search for, where we go – they all change once we merge
location and the Web.”
– Matthew Honan, WIRED magazine, 1/19/09
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All Stakeholders Benefit When
Content Is Relevant
• Filtering of content based on context,
lowers likelihood of “ad clutter” –
necessary on mobile!
• Relevant advertising will be more
readily accepted and responded to
– In the past, mobile was reporting 5 – 10x
click-thrus (even higher with location)
• Enables real-time encounters between
buyer and merchant
– Gets the buyer to store location and
increases likelihood of transaction
• Localized , “actionable” content will
maximize return
The different media forms and degree of
– Get Directions reach to the individual consumer.
– Get Coupon/Redeem Marketing on the mobile device must be
– Map Location relevant and personal. The risk is
advertising clutter.
• New local ad revenue opportunities 8
Forms of Location Based Mobile
Marketing & Advertising
Messaging Campaign: LBS Navigation App: Location Based Rewards:
Placecast Coupon Example Navteq Example Shopkick Location Based Mobile Web
Banners: Google
Current and/or future location of a mobile device used to trigger marketing/ad content
Location opt-in required to use app or receive messages– Safeguarding the consumer
experience is key!
Mobile location combined with other user attributes and behaviors (e.g., search
categories) means ads delivered to right person at the right place at the right time
ABI Research estimates location based marketing spend at $1.8B by 2015. 9
Comparison of Location Methods
Network-Initiated Location
and Uses Device-Initiated Location
API Exposed by Browser-based or
mobile operators and Native Client Side
aggregators; Server- Location API for:
side request for: Cell ID or Sector
Cell ID or Sector AFLT (CDMA)
AFLT (CDMA) A-GPS
A-GPS GPS
WiFi WiFi
Method Pros Cons Ideal Uses
Network-Initiated Cell ID provides greatest Cost to acquire Location based messaging
reach – ubiquitous in N.A. Operators control APIs campaigns, IVRs, mobile web.
No app required Low frequency locates, geo-
fenced alerts or on-demand for
direct response.
Low cost
Device Initiated No cost on most Open location limited to User initiated/Pull marketing; In-
smartphones smartphones; operators app Device application
advertising; local search;
control APIs on feature Indoor & Outdoor
HTML5 browser-based apps;
phones; client side check-ins. High frequency 10
OTT, free to use
software needed locates.
Value Chain and Participants
(Inventory)
User interface:
Web/Apps/SMS/MMS/
Video
•Procter & •Google/ •Google •Weatherbug •Verizon •Nokia
Gamble AdMob •Navteq •CNN •AT&T •Samsung
•NBC •Apple/ •Location •Loopt •Sprint •Apple
•Nike Quattro Labs •Facebook •T-Mobile •LG
•Ogilvy •Navteq •Neustar •Foursquare •Android
•Millenial •Placecast •Apple
Media •HipCricket
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Business Models
Model Format
CPM (Cost Per Often used for
Traditional Thousand) display ads
CPC (Cost Per
Performance- Click) Display Ads,
based CPA (Cost Per Search, Coupons
Action/Acquisition)
Monthly
recurring/SAAS Messaging
Other Per sub
Campaigns,
Offers, Coupons
Per Unit
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Q&A
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ShopAlerts: Location-based SMS Marketing
Solution
November 30, 2010
Placecast is Leading Innovation in
Location-based Monetization
• 5 years in development
• Proprietary technology and
patents can consume, process
and deliver location-based
content to any connected
device
“Placecast has taken on the problem
of delivering advanced location- • Experienced team from
based advertising head-on, and has location, mobile, digital
executed more than effectively.” marketing and enterprise
Mobile Marketing Watch – January 2010 SaaS
• Platform enabled for 70+
countries
• ShopAlerts is the leading
white-label solution for opt-in
geo-fence SMS marketing
Product Overview: ShopAlerts
Consumer opts in to receive Customized virtual geo-fences
messages from a retail brand are created for ANY physical
location
Access the customer’s “always on”
mobile device
Extend marketing programs to
customers while they are shopping
Deliver requested content and
information to customers based on
EXAMPLE:
Geo-Fence Surrounding
time & place The North Face
Innovative technique for cutting 875 N Michigan Ave
through the clutter Chicago, IL 60611
ShopAlerts User Experience
Consumer Geo-fence is Dynamic
triggered message
Double Opts-In
delivered
Customer double opts- She is in her She receives an SMS
in through neighborhood, at a alert on her phone
– Web site shopping center, or Message presents a
– Social Networks traveling personalized offer
– SMS or email program
Triggers the geo- Dynamic message-
– Web or mobile banner
– Inside store locations fence set by brand promotional,
branding,
sponsorship or a
reminder
ShopAlerts Results
• 65% of participants made a
How would you rate the overall appeal of the purchase over the course of the
ShopAlerts text messaging program?
programs as a result of
ShopAlerts
1%
5% • 79% said that ShopAlerts
14% Very Appealing increased their likelihood to visit
34% Somewhat Appealing the retailers
Neither Appealing nor
Unappealing
Somewhat Unappealing • Most commonly, campaign
participants acted on messages
46%
1-3 days after receipt
• 72% were positive to very
n=132
positive about the location basis,
“I like the fact that whenever I travel or go from city to city, it tells me
with the majority seeing location
where the new locations are and what current specials are happening.” as helping to increase
-ShopAlerts Participant
usefulness and relevance
What we’ve learned from 2010 rollout
Consumers are very positive about the use of their location information,
provided there is an exchange of value
Texts have most immediate impact on low-consideration products with
many retail outlets - more chances to purchase, triggers impulse buying
But texts also help to build loyalty and increase awareness of new product
intros for higher-consideration products, and serve as reminders
Redemption rates on coupons/discount codes from 24% (fashion) to 65%
(fast food)
Successful recruitment into location-based mobile programs has happened
via dedicated email blasts, in-store signage and promotions, direct SMS
and social networking
Geo-fencing and messaging strategies depend on a number of factors,
from the purchase consideration cycle for the product to the number of
outlets, time of day and traffic patterns
Thank you!
Blair Swedeen
VP, Market Development
(c) +1 773 727 1375
blair.swedeen@placecast.net
Key Considerations For Integrating
Location Into Mobile Marketing
• What are primary objectives?
• What are the reach requirements?
• What are the characteristics of the target audience?
• How to safeguard the consumer experience?
• Understanding industry guidelines on Privacy
• What level of location precision? (Outdoor, Indoor)
• What mobile technologies will be used?
• What tactics? (Rewards, Coupons, Alerts, Banners, etc.)
• Who to partner with?
• What business model works best?
• How to measure results?
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Industry Challenges
• More education needed on use of mobile
location, safeguards, and value
proposition
• Mobile is complex – many choices,
technologies, decisions – location adds
to this
• Balancing relevancy and privacy
• Localized advertising content is needed
• Business models still evolving – need
time to adapt
• Lack of measurements, tracking
capabilities, results
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How Neustar Can Help
• Neustar Intelligent Cloud provides mobile marketers and advertisers
with the essential building blocks to enable and deliver scalable,
innovative, context-enriched mobile services.
• Our suite of enablers includes
– Discovery and Intelligent Routing Services
– Cross-operator Services (Messaging, Location, Presence, Billing)
– Short codes and bar codes
– Privacy Management
• Neustar is an active participant and key influencer of mobile marketing,
privacy policies and consumer safeguards established by leading
industry associations, such as MMA, DMA, CTIA, and GSMA.
• Find out more about our program at www.neustarintelligentcloud.biz
One provider. One agreement. One connection.
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Questions from Audience
Subscribe Today!
GPS World Magazine at www.gpsworld.com/subscribe
GPS World’s LBS Insider or Wireless Pulse Newsletters at
http://www.gpsworld.com/gps/subscribe-e-newsletters-8410
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Contact Information
Lisa Peterson,
Director of Mobile Marketing, Neustar
Lisa.Peterson@neustar.biz
For more information see my report,
“Location Based Advertising: The Key to
Unlocking The Most Value in the Mobile
Advertising and Location Based Services
Markets”, available on GPS World.
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