Location based services overview - July 2011 - Brian Groth

Location-Based Services&Social Media

Brian GrothDirector of Global Sales ProgramsMicrosoft

Brian.Groth@microsoft.comhttp://www.BrianGroth.com

Disclaimer: This presentation contains my opinions regarding the location-based services industry and does not reflect those of my employer, Microsoft.

http://www.flickr.com/photos/brianwilkins/4734788670/

INTRODUCTION

PART OF THE MIX OF SOCIAL MEDIA

CONVERGING TECHNOLOGIES & TRENDS

SMSGPS

SocialMedia

SocialGames

Mobile Ads

2D Barcodes

& Readers Mobile

ShoppingMobile

Payment

Always-on Media

Real-Time User

Ratings

Mobile Coupons

Geo-Targeted

Ads

Location-Based

Services

Mobile Consumer

STILL A NICHE OF MOBILE

THE BIGGER PICTURE FOR AN ADVERTISER

25M People On Xbox Live!500M Active Windows Live IDs!

369M People Using Hotmail!

Over 3B WW Queries Each Month!

Over 6M Songs In The Catalog

Over 600M Unique Users

CLOUD SERVICES

1. Check-In

http://www.flickr.com/photos/buhsnarf/511483451

THE CONSUMER EXPERIENCE

Why?• Game Dynamics• Personal Diary• Affinity

2. Share

http://www.flickr.com/photos/hcplebranch/4911611848/

THE CONSUMER EXPERIENCE

Why?• Friends• Local Expert

3. Discover

http://www.flickr.com/photos/wonder_j/442643366/

THE CONSUMER EXPERIENCE

Why?• Friends• Deals• Serendipitous

1. Awareness

http://www.flickr.com/photos/buhsnarf/511483451

THE ADVERTISER EXPERIENCE

Deliver a compelling offer when consumers are near the point of decision

Get tips at various locations in Seattle, San Francisco and New York City

Tips suggest locations for taking photos

The branded Foursquare site suggests to download Windows Live Photo Gallery to touch-up and share your photos

WINDOWS LIVE GALLERY ON FOURSQUARE

2. Direct Sales

http://www.flickr.com/photos/wonder_j/442643366/

THE ADVERTISER EXPERIENCE

Getting a deal is the number 1 reason people check-in (JiWire, Nov 2010)

Check-in and get a free pair of jeans

10,000 pairs of jeans were given away in the US, with each store allocated a certain number to give away

Most consumers were confused as to how to get the free pair

GAP AND FACEBOOK PLACES

AT&T offered rewards for specific behaviors.

Behaviors that earned points included:

1. Checking in

2. Sharing a photo of a place

3. Writing a review

4. “Bump” phones with a friend at the location

Rewards included:

5. Free ringtone gift card for 2 points

6. 20% discount off accessories for 5 points

7. $50 off a Samsung phone for earning 15 points

AT&T ON SCVNGR

Partnering with 10 shopping malls (Simon Malls) across the US to earn Coke rewards good for American Express gift cards and Coke-branded merchandise. In total, $100,000 will be given away.

Challenges include check-ins and photos of hidden shopping experiences.

COCA-COLA ON SCVNGR

3. Loyalty

http://www.flickr.com/photos/wonder_j/442643366/

THE ADVERTISER EXPERIENCE

Game mechanics encourage the brand loyalty

A Safeway customer can associate their loyalty card to their Foursquare account.

The rewards are associated to user behavior, irrespective of in-store check-ins.

Therefore, checking in on Foursquare anywhere and earning certain badges can now earn a Pepsi product, redeemable at a Safeway store.

PEPSI AND FOURSQUARE

The Coke Machine Fairy leaves one winning bottle in a Coke machine each day (in Sydney in September 2010)

Friend The Coke Machine Fairy on Foursquare then be the first to check-in at a special Coke machine (changes daily) to win a prize.

Coca-Cola employee arrives in person to give out the prize.

COCA-COLA ON FOURSQUARE

200+ million are on mobile devices (2x as active)

77% are outside the US

Foursquare has 10+ million users worldwide adding

20,000 per day

Facebook has 750+ million users worldwide

All are on mobile devices

67% are outside the US

http://www.flickr.com/photos/laughingsquid/5018800588/

WHERE’S THIS GOING?

• Mobile Social: More than 50% of US cell-phones will be smartphones by end of 2011. Mobile social network users will more than double by 2015, and adoption of location-based services will rise with it.

• Non Check-in Models: Groupon & local coupons, Brightkite & geofencing, deals exposed via local search

• Recommendations & Notifications: Automatic and customized based on settings, history, profile and social graph, including brand discovery

ABI Research estimates that location-based

marketing will be a $1.8 billion business

worldwide by 2015

http://www.flickr.com/photos/laughingsquid/5018800588/

WHERE’S THIS GOING?

Branded Facebook Apps

WHERE’S THIS GOING?

Geo-Targeted Ads and Mobile Advertising

Branded Mobile Apps

1.How does your marketing strategy include mobile?

2.How do you reach a local audience?

3.Are you offering deals/discounts?

SOCIAL, APPS, ADS, SEO, …