InnoEurope presentation Tallinn
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1) Location-aware mobile advertising has the potential to provide targeted, relevant ads to users based on their location. However, continuous location tracking of large numbers of users would be prohibitively expensive for advertisers. 2) Current mobile advertising relies on limited user profile data from mobile operators, but does not include precise location information. Additional location data from independent providers may help enhance targeting and relevance of ads. 3) As location-based services grow in popularity, driven by improved mobile devices and data plans, location could become a new type of advertising inventory to help advertisers reach audiences in specific locations. However, widespread adoption of location-based advertising will depend on addressing users' privacy and permission preferences.
InnoEurope presentation Tallinn
- 1. The Future of Location-Aware Advertising Andrew Grill, Mobile Advertising Evangelist - Gigafone Annual Innovation Conference InnoEstonia 2008
- 3. What we’ll cover Why the Starbucks example will never happen The location challenge What Advertisers want What’s here and now What’s next Location’s place in the mobile advertising value chain Where are the revenue opportunities for location advertising?
- 4. Let’s kill off the “Starbucks Example” Assume the following campaign 50,000 opt-in users 2 week campaign (Mon-Fri) = 10 days 8 hour window (8am – 4pm) Check location every 5 minutes by operator cell-ID Assume €0.10 per poll What would this cost?
- 5. The cost breakdown… 50,000 users 10 days 8 hours 12 polls/hr € 0.10 per poll € 4.8m ALMOST 5 MILLION Euros!
- 6. What is mobile advertising? How does location enhance mobile advertising?
- 7. The Mobile Advertising Value Chain Advertisers / Brands Marketing Agencies & Media Buyers Enablers Content Providers Aggregators Device Makers Wireless Operators Subscribers Traditional Promotional Channels Advertisers need… Measurability Ability to track consumer engagement by counting clicks vs. displays Targeting Aggregated and specific customer information (e.g. age, gender, segment, lifestyle) Relevance Ads must be conveyed to the precise target in the right context … Location Information on the consumer location to increase relevance of ads
- 8. Mobile operators don’t have all the data advertisers need Vodafone Australia mobile advertising brochure Gender Phone type Postcode Segmentation Age Gender Spending pattern Credit worthiness Location??
- 10. Or….we ask the user’s permission and preference Dynamic location information can enhance the user experience
- 11. Mobile LBS Landscape Significant uptake by consumer of location services – driven by: Device capabilities (larger - sharper displays , 3G data rates & GPS) Quality content (maps, POI, navigation engines) Attractive data tariffs (but not everywhere) Current focus around navigation & search Future growth expected in location based advertising & social networking
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- 13. Mobile LBS Landscape Significant growth in LBS, fuelled by convergence of: Device capabilities (larger - sharper displays , 3G data rates & GPS) Quality content (maps, POI, navigation engines) Attractive data tariffs Current focus around navigation & search Future growth expected in location based advertising & social networking The industry can’t wait any longer for operators to provide cell-ID data to 3 rd parties – Google, Nokia, Skyhook Wireless are doing it themselves Advertisers need cross network and cross country coverage
- 14. What does this all mean for location based advertising? Technically possible to provide a location capability Until advertisers can use location with scale and ease it will be niche Consumers starting to use GPS and operator independent location services and understand the benefits Mobile advertising ramping up (Google vs operators) Flat rate data plans driving usage Location can become advertising inventory
- 15. Google Maps – now with sponsored links www.google.com/gmm
- 16. WiFi location – Skyhook Wireless www.skyhookwireless.com
- 17. Blogloc – post your location on a blog www.blogloc.com
- 18. Shozu + Flickr = geotagged photos m.shozu.com www.flickr.com
- 19. Rummble – location based social networking Free to consumer Ad / sponsor funded Timely, trusted, personalised content www.rummble.com
- 20. MobGeo – location aware mobile coupons www.mobgeo.com
- 21. Locatik – location based social networking www.locatik.com
- 22. “ Location Broking” with Fire Eagle from Yahoo! www.fireeagle.com
- 23. New Friend View service from Nokia Consumers first need to understand the benefits of a location service friendview.nokia.com
- 24. Andrew Grill www.andrewgrill.com/contact Follow the latest news at www.london-calling.org.uk http://LBS.andrewgrill.com Twitter: @andrewgrill