Location Based Mobile Advertising

Nagendra Kumar Lavu Senior Product Manager Product Camp - NYCSep 17, 2011

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Introduction

• Manage 3 Product lines: LBS, EMAG & Mobile Advertising

• 9+ years in Wireless and Mobile Industry

• Domain expertise in all 3 Mobile layers – Platforms, Networks and Applications

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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