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My Presentation on Location Based Mobile Advertising at ProductCamp, NYC 2011
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Location Based Mobile Advertising
Nagendra Kumar Lavu Senior Product Manager Product Camp - NYCSep 17, 2011
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Agenda
• Location Based Mobile Advertising Overview
• LBA Ecosystem
• Market forecasts
• Key Market drivers and Challenges
• Competitive Landscape
• Key Recommendations
• LBA Architecture
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Location Based Mobile Advertising
Location Based Mobile Advertising (LBA) involves delivering Content and ContextAware advertisements to the mobile users based on their Location
Definition
• Push Advertising• Pull Advertising
Classification
AdvantagesMobile is Personal, Interactive and Constantly in Use. Location adds “WHERE” filter and provides Context, Localization and Relevance LBA provides following RICH DATA to Advertisers:WHERE: Geo-AwarenessWHO: Social graph and group DynamicsWHAT: Real identify of a location as well as one’s behavior and preferencesWHEN: Frequency, time and durationWHY: IntentHOW: Path to arrival and Path to exit
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LBA Delivery Models
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LBA Ecosystem
Advertisers/Brands
Ad Agencies/ Marketing firms
Publishers/Content Providers
Mobile Applications
Mobile Users
Mobile Operators
Ad Networks/Platform Providers
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Market Forecasts
• US Mobile Advertising is at $1.24 BN in 2011 and estimated to be $5 BN by 2015• In 2011, 49M engaged with advertising, 12M clicked on ad and purchased an item• Mobile Local Ad Spending will be the fastest growing medium over next 5 years• LBS are estimated to have 53% CAGR in Revenues and 63% CAGR in Subscribers
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Market Drivers and Challenges
• Smartphone Usage• Mobile Internet - 3G/4G Data Networks• GPS Enabled Handsets• Free Mapping APIs
Market Drivers
• Privacy • Accuracy of Location• OS and Device Fragmentation for App Development
Challenges
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LBA Competitive Landscape
Mobile Apps:Facebook, Foursquare, Loopt, Gowalla, Navteq
Brands/Advertisers
Platform Providers/Ad Networks:Admob, iAd, Yahoo, Bing, Jumptap, JiWire, Placecast, TeleNav
Mobile Operators:Verizon Wireless, AT&T, Sprint
Mobile Users
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Key Recommendations
Platform Providers:• Accuracy of Location• Location + Context is the key• Spam Control• Develop Predictive Analysis and Intelligence tools
Operators:• Control Privacy of the End-user• Partner with Platform Providers and Application Developers• Provide Mobile App stores• Offer Predictive Analysis and Intelligence tools
Application Developers: • User Engagement is the key
Product Innovation Areas and Revenue Generation
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LBA Architecture Brands/Advertisers
Ad Agencies (Ad Content)
LBA Platform Provider/
Ad Network
Ad Server Publishers/Content
ProvidersApplication
Server
Ad Campaigns
Location Server
Rules Engine
User’s Location,Profile
Location Ads are pushed
Mobile Operator
LocatIon
RelevancyEngine
LBA Architecture
Periodic Payments
Ad Response Metrics
Location API
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Positioning and Measurement
• GPS• Cell-id• Wi-Fi• AGPS
Determining Location
• CPM• CPC calculated based on CTR• CPA• Click to Call• Click to Navigate• Click to Website• Click to Redeem
Measurement Metrics
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Location Ad Targeting
Device(OS, Screen Size,
capabilities)
Time of Day & Day of Week
(Breakfast places, night clubs)
User Demographics (Age, Gender)
Content(Keywords, site, page, context,
yield )
Location(Geo-fence, Zip Code, Cell Id)
Points of Interest (Bars, Pizza,
Family, shopping)
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THANK YOU
Nagendra Kumar Lavu Senior Product Managerhttp://www.linkedin.com/pub/nagendra-kumar/6/121/2a2
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