www.london-calling.org.uk current and future, business and consumer applications of lbs technology...

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Current and future, business and consumer applications of LBS technologyAndrew Grill, Mobile Advertising EvangelistBritish Computer Society, September 2008

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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

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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?

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The cost breakdown…

50,000 users10 days8 hours12 polls/hr10p per poll£ 4.8m

ALMOST5 MILLION Pounds!

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Current LBS applications

• Navigation & Mapping

• Where am I?

• Buddy Finder (eg Buddyping)

• Local search

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Google Mobile Maps

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Google Mobile Maps

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Google Maps – now with sponsored links

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Nokia Maps 2.0

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Fire Eagle from Yahoo!

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Microsoft LIVE (UK)

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Blogloc – post your location on a blog

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Shozu + Flickr = geotagged photos

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Locatik

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WiFi location – Skyhook Wireless

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Other examples

Gypsii Brightkite

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Brightkite feeds twitter

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Sniff on Facebook

Sniff Sniff on Facebook

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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

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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

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The Mobile Advertising Value Chain

Advertisers need…Advertisers need…Advertisers need…Advertisers need…

Measurability • Ability to track consumer engagement by counting clicks vs. displays • Ability to track consumer engagement by counting clicks vs. displays

Targeting • Aggregated and specific customer information (e.g. age, gender, segment, location)

• Aggregated and specific customer information (e.g. age, gender, segment, location)

Relevance • Ads must be conveyed to the precise target in the right context …• Ads must be conveyed to the precise target in the right context …

Location • Information on the consumer location to increase relevance of ads • Information on the consumer location to increase relevance of ads

Advertisers/ Brands

Advertisers/ Brands

Marketing Agencies &

Media Buyers

Marketing Agencies &

Media Buyers

EnablersEnablers Content ProvidersContent

ProvidersAggregator

sAggregator

sDevice MakersDevice Makers

Wireless OperatorsWireless

Operators SubscribersSubscribers

Traditional Promotional Channels

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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

Concept of “zone detection”Concept of “zone detection”

Highly scalable• Zone detection performed

at handset level• Notify on user entry/exit• No need to poll user’s

location• Accommodates network

changes

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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

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Andrew Grill

+44 788 198 6694andrew@andrewgrill.comwww.London-Calling.org.uk