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OGS : On the Go Services Publish Subscribe Framework for Location Based Services. By, Raghavendra Prashant Swagath Praveen. OGS - On the Go Services. Problem Different vendors of services Best way to enhance value of services Solution
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OGS : On the Go ServicesPublish Subscribe Framework for Location Based Services By, Raghavendra Prashant Swagath Praveen
OGS - On the Go Services • Problem • Different vendors of services • Best way to enhance value of services • Solution • OGS : Framework that takes location and presence information and checks with the Registry to provide lots of services.
Services - Shopping Assistant • Retailers register their special offers/deals with OGS. • Users update their interests in various services and products with OGS. • When the user is in the vicinity of the stores, relevant ads are sent to the user attracting him to the store.
Services - Weather/Traffic Assistant • Yahoo provides web services for updated weather and traffic conditions. • Users register for the service they are interested in with OGS. • Based on location and presence information, critical changes in weather/traffic are sent to the users. • With google maps, user has to manually key in the location information and check the weather/traffic conditions. With this model, the user need not be proactive, alerts are sent based on the person’s location and profile.
Services - Travel Assistant • Yahoo provides web services for places of interest in most global cities. • Users register for the Travel service with OGS. • When the user travels to another city, he gets the features of travel assistant like places of tourist interest as well as shopping assistant like discount information.
Architectural Description • System uses Publish/Subscribe framework • Consists of three components • Publisher - Retailer • Subscriber – End user • OGS – Framework consists of the Registry and profile correlating algorithm • Implemented on top of IMS architecture
IMS components • New features added in the system leverage the services provided by the following IMS components • SIP AS • NSN network emulator • Presence/GLM server • Location server • External servers
Business plan – Market Analysis Shopping Assistant • “If your mobile phone had the facility to use your location information and send messages relevant to your preferences (like shopping, weather), would you like to try the service. The service is provided for free by the carrier” on Surveymonkey • Response : 59% interested, 20% not sure. • Age group : 22-28 • Location: Georgia, California, New York, Illinois, Wisconsin, Texas, Arizona
Business plan – Initial investment • at&t bears the cost of OGS infrastructure and marketing • Hardware - Blade Server : $3000 • Hardware Maintenance costs : $1000 /yr • Software - open source software : $2000 • WAMP server 2.0 (Windows, Apache, MySQL, PHP) • Software maintenance costs : $2000 /yr • Support staff for maintaining OGS : $100,000 /yr • Support staff for maintaining the client UI : $100,000 / yr • Marketing and Sales Costs : $200,000 / yr • Total cost of operations : Close to $500,000 /yr !!!!!!
Business plan – Revenue Model • To break even, at&t needs to make 500,000 a year or $ 41,667 a month • Atlanta has 200 malls excluding independent retail outlets. • On an average, at&t needs to recover $208 per mall per month • Isn’t this achievable ????
Business plan – Revenue Model • Conservative model. • Average spending per retailer on advertising: $60 • Average no of retailers per mall : 10 • No of malls in Atlanta : 200 • Annual Revenue $1,440,000 • Less Operating costs $500,000 • Approximate Profit $1 million
Business plan – Revenue Model • Revenue model - Advertisement driven • Retailers pay a monthly subscription as follows • Additional benefit is given in terms of extra messages stored in the system for the next month. • Compare this to USA today rate of 28$ per advertisement in cities with circulation of 350,000 and above for ¼ page advertisement. (http://www.usatoday.com/media_kit/usatoday/ai_regional_rates_regional_rates.htm)
Business plan – Initial adoption model • at&t • at&t starts the OGS service in one city • Retailers • Retailers are educated about this form of advertising through newspapers, radio, television. • Retailers are apprehensive about this form of advertising, so those who join the system within 3 months of the start of the service get an offer of 20 messages for the promotional months. • Retailers update the discount information by • Updating the website manually • Fax the discount information or call an agent (For retailers who are not web savy) • Once the promotion period is over, the suggested revenue model will be followed. • at&t can alter the revenue model based on the success of the model in a city
Business plan - Initial adoption model • Users • More users => more possibility of revenue. • Users are educated about the service using conventional modes of advertising like TV , radio, newspaper and monthly at&t bill. • Attract more users by the following schemes, • Early bird scheme: First 100 users get a waiver of previous month’s bill if they setup their profile for service like shopping assistant and use it for atleast a month in active mode. • Referral scheme User fills friends mobile number on the website. Unique activation code is generated for every pair. For every new user, user and referrer get $5 credit in their account Promotion mail along with the activation code is sent to friends
Business plan – How discount works Profile match User comes in the vicinity of store no Ignore user yes Gives an estimate of number of profile matches Send discount information along with a unique identifier that identifies this message User uses the coupon Retailer provides the discount for the coupon. Retailer can keep track of the coupons to estimate the exact use of the advertising model no yes Ignore user
Business plan – Alternative Business model • Retailers who would want to pay per use have to have an infrastructure in place that stores the promotion code at the Point of Sale (POS) and then submit it to OGS framework on a regular basis. • They will be billed per use of the coupons. • This approach involves lots of overhead for the retailers.
Business plan – Are these ads useful? • Retailer • Attract more customers, by creating awareness of the discounts • Spend on advertising on the potential customers only (as the ads are targeted to only matching customers) • User • Good offers on interested products • User gets extra value from the mobile service provider (at&t)
Community Features • Real time use of following • Yahoo weather web service • Yahoo traffic web service • Yahoo travel web service
Personalization features • User gets to choose the kind of services • User profile helps in finding the right ads for the user • User can stop receiving alerts/messages by changing his profile
Standards • OGS is built using IMS technologies and is 3GPP compliant • SIP protocol as defined in RFC 3261 • Xmlrpc standard for communicating with SIP application server
Conclusion • Google has proved that Ads are the way to generate revenue, while providing services for free. • Mobile ads are the next generation targets for advertisers. • OGS provides a easy mechanism for the retailers and users to reap the benefits of mobile advertising. • 1 Service, 1 City with a conservative estimate can generate $1 Million profit.
