" geofences everywhere – how can marketers benefit?“
DESCRIPTION
" Geofences Everywhere – How Can Marketers Benefit?“. Michael Leis , VP, Management Director, Digital, DraftFCB Alistair Goodman CEO, Placecast. 42% of consumers 18 – 34 interested in mobile alerts from favorite retailers. Source: Placecast The Alert Shopper II, Harris Poll, July 2010. - PowerPoint PPT PresentationTRANSCRIPT
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"Geofences Everywhere – How Can Marketers Benefit?“
Michael Leis, VP, Management Director, Digital, DraftFCB
Alistair Goodman CEO, Placecast
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42% of consumers 18 – 34 interested in mobile alerts from favorite retailers
18-34 35-44 45-54 55+ 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
42%
30%
21%17%
44%
29%
16%20%
40%
30%26%
14%
At least Somewhat InterestedBase: Cell Phone/Smartphone Owners
TotalMenWomen
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?
n=1719
Source: Placecast The Alert Shopper II, Harris Poll, July 2010
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The location-based mobile landscape
Platform • Provide mobile marketing technology to brands and carriers
• Offer white-label services for SMS, mobile web and other mobile marketing to agencies, brands and operators
• SMS/MMS mobile web with location targeting/triggering
Local Discovery Apps• Mobile applications that provide content specific to a user-
expressed (search) or detected location
• Location-relevant mobile banner, text units, alerts, promotions and sponsorships
Check-in/Social Apps • Part friend finders, social city guide, game and discounts• Users check in to location through “around me” search or
venues can be added with address• Venue-specific promotions and experiences; loyalty
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What is a geofence?Geō-fence noun : a virtual field around any location set to deliver a personalized marketing message to a consumer when they are inside.
How it’s created:• Upload location addresses• Proprietary translator creates a “Place Profile”• Program the desired geo-fence around a location
Flexibility:• Geo-fences can be created around any location• Add, remove & optimize geo-fences
Geo-fencing Strategy:• Based on program objectives, trade areas, and
customer demographic/psychographic profiles• Obvious relationship between offers and locations
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Geofence User ExperienceGeo-fence is triggered
• Customer is out shopping in a retail area, office area during lunch time, sporting event, concert, or any other location POI
• Triggers the geo-fence set by brand
Dynamic message delivered
• She/he receives an SMS alert on mobile
• Message presents a personalized offer
• Dynamic message- promotional, branding, sponsorship or a reminder
• Option to leverage digital assets & WAP
Consumer Opts-In
Customer opts-in through
• Web site• Social Network• SMS or email
program• Web or mobile
banner• Inside store
locations: window signage, POS cards, receipts, etc.
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Used for both acquisition and retention
ACQUISITION
RETENTION• White label program for brands• Brand owns their audience and
data• Can integrate to CRM or loyalty
programs
• Program participants• Portal with multiple brands• Program owns the audience
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How are brands using location-based alerts?
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Getting to scale in mobile & location
82% Use Cell Phones
71% Use SMS
35% Have Apps
24% Use Apps
4% Use LBS*
Reach is a challenge…(% US Population = 310 million) Particularly with Location
Based Apps…
Company Downloads(Global)
Active Users (80/20 Rule)
Foursquare 5,000000 1,000,000
Loopt 4,000,000 800,000
Booyah 3,100,000 620,000
Waze 2,300,000 440,000
SCVNGR 700,000 140,000
Gowalla 600,000 120,000
Source: Pew September ‘10, *Forrester June 2010 includes check in services like Foursquare
Source: Mobile Marketing First Quarter Trend Report AdAge February 2010
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ShopAlerts by AT&T
> Combines reach of subscriber network with quality of AT&T
> Hosted solution – Software as a service
> AT&T secures offers from retailers
> One-stop shop provides seamless experience for consumers and advertisers
> Enhanced ROI and optimization across a larger number of consumers
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Why it Works for DraftFCB Shopper Marketing: Behaviorally Relevant Technology
> Fits neatly with our 6.5 Seconds That Matter> The maximum amount of time any person will give a brand to capture
their attention> Must be simple and relevant enough to make a difference and work for the
audience> Must help the audience make decisions before the shelf> Placecast reduces friction typical in mobile brand experience now
> Combines all the essential elements of valuable communication> Right time> Right place> Right message
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Why it Works for DraftFCB Clients: Effectiveness> Placecast service with AT&T foundation
> Fundamentally broader reach at the carrier level> Makes brands the second-party instead of the third-party
> Targeted Scale> The national scale brands need while only delivering (and paying for) the
messages that make sense to the audience.> Works like a typical ad buy
> Easy to understand it within an existing budget structure> First-mover advantages
> Priority within competitive markets> Literally, physically competitive spaces
> Intelligence on consumer behavior
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Emerging insights from early programs
> Must create an obvious relationship between offers and locations
> Incentives are absolutely needed for brands to recruit them into the programs
> 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
> Successful recruitment can happen 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
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Thank you
Michael Leis, VP, Management Director, Digital, DraftFCB@mleis Alistair Goodman CEO, Placecast