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Current and future, business and consumer applications of LBS technology. Andrew Grill, Mobile Advertising Evangelist British Computer Society, September 2008. What we’ll cover. The location challenge Why the Starbucks example will never happen Current LBS applications
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Current and future, business and consumer applications of LBS technology Andrew Grill, Mobile Advertising Evangelist British Computer Society, September 2008
What we’ll cover • The location challenge • Why the Starbucks example will never happen • Current LBS applications • Future LBS applications • Location’s place in the mobile advertising value chain
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 10p per poll What would this cost?
The cost breakdown… 50,000 users 10 days 8 hours 12 polls/hr 10p per poll £ 4.8m ALMOST 5 MILLION Pounds!
Current LBS applications • Navigation & Mapping • Where am I? • Buddy Finder (eg Buddyping) • Local search
Other examples Gypsii Brightkite
Sniff on Facebook Sniff Sniff on Facebook
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 • Existing MNO monopoly on mobile location based services under threat from OTT players • Within MNO community, growing consideration of X-network operation for services such as advertising
What does this all mean for proximity based advertising? • Technical developments in place • Operator vs operator independent debate wide open • Consumers starting to use GPS and operator independent location services • Mobile advertising ramping up (Google vs operators) • Flat rate data plans driving usage • Location can become inventory
The Mobile Advertising Value Chain Traditional Promotional Channels Advertisers / Brands Marketing Agencies & Media Buyers Enablers Content Providers Aggregators Device Makers Wireless Operators Subscribers Advertisers need… • Aggregated and specific customer information (e.g. age, gender, segment, location) Targeting • Ability to track consumer engagement by counting clicks vs. displays Measurability • Ads must be conveyed to the precise target in the right context … Relevance • Information on the consumer location to increase relevance of ads Location
Zone detection for location based advertising Fixed GeoZones • Locations with high footfall and/or high value consumers • Airports, railway stations, city centres, shopping malls, sports stadiums • Provisioned by the operator and changed infrequently Brand Defined Zones • Zones related to specific brand locations • Store locations; restaurants; special promotions • Respond rapidly to brand campaigns User Defined Zones • Places/contexts that are important to an individual user • My home, my office, my pub • Provisioned by the user • Further contextual advertising opportunities • Highly scalable • Zone detection performed at handset level • Notify on user entry/exit • No need to poll user’s location • Accommodates network changes Concept of “zone detection”
Intelligent user profiling – can benefit from location • Location is only part of the story • Who can profile best? • User initiated or captured by device • Gender • Phone type • Postcode • Segmentation • Age • Gender • Spending pattern • Credit worthiness • Location
Andrew Grill+44 788 198 6694andrew@andrewgrill.comwww.London-Calling.org.uk