Global Location Trends Report

March 13th, 2016

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2

An online study was conducted in the following countries: US, Canada, Germany, UK, and Singapore. Top executives participated in the online survey to share their current usage and investments in location-based marketing as well as future goals on implementing this technology.

SampleN=50 per countryGender: Natural falloutSample target: Media buying/advertising executives within each market

Methodology

Global perspective Top minds Current buying trends and next moves of location-based

marketing

Leaders from different parts of the world joined this study

3  Base: Total sample, n=253 S3. Where do you currently reside?

Canada

US Germany

UK

Singapore

We talked to…

4  

Base: Total sample, n=253 E1. Please select all of the titles which describe your current role(s) in your company. E2. Are you involved in any of the following for your company?

BUSINESS OWNER/CO-OWNER

CEO/PRESIDENT

MARKETING DIRECTOR/MANAGER

CMO

57%

21%

15%

22%

They are in charge of:

Strategic planning

Selecting marketing or advertising supplier/agencies

Working with the marketing or advertising

suppliers/agencies

75%

62%

49%

Their company’s current lifecycle phase is…

5  

Base: Total sample, n=253 E5. Thinking about your company’s current lifecycle phase, which one of the following best describes your company’s current position?

Start-up: 19%

Growth & Expansion: 55% Transition/Exit: 4%

Mature: 23%

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KEY FINDINGSEXECUTIVES AGREE LOCATION-BASED AD TARGETING IS VALUABLE, ACTIONABLE AND ACCURATE.

•  47% – 84% of companies (depending on the country) are currently using location-based data to target their customers.

MODERATE INVESTMENT IN LBM IS COMMON •  25% + of marketing budgets are allocated to LBM. •  ‘Ability to target consumers’ & ‘driving POS sales’ top LBM benefits.

LBM GROWTH IS TO BE EXPECTED IN 2016 •  With the exception of the UK, countries expect to shift more marketing dollars

to LBM in 2016. •  Countries look to deploy more NFC technology in 2016 (currently deployed

technology is heavily Wi-Fi & GPS based) •  ‘Social location services’ and ‘Location based advertising’ top areas of

interest for the year. •  Non-marketing location based topics will gain added attention over the next

12 months.

1  

2  

3  

LOCATION BASED MARKETING (LBM)

7

8  

Base: Total sample, n=253 L1. Which of the following media types would you consider to be location-based?

51%

29%

43%

37%

24%

35%

45%

49%

41%

57%

22%

47%

Mobile

Static Billboard

Online

Print

Digital Out Of Home (DOOH)

Radio

36%

52%

36%

38%

54%

30%

47%

49%

41%

37%

24%

22%

70%

54%

66%

46%

46%

18%

n= 51 51 50 51 50

A = Significantly higher than Country indicated by letter at 90%

A B C D E

B

CDE

BCD

E

ABD

B B

ABCD

ABD

ABCD

B

Ranked by total average

What media type is considered to be Location-Based

EXECUTIVES CONSIDER A VARIETY OF MEDIA TYPES LOCATION-BASED

•  Significant differences are noted across countries.

9  

Base: Total sample, n=253 L4. How do you feel about the current data available for location-based ad targeting? A = Significantly higher than Country indicated by letter at 90%

It’s valuable

It’s actionable

It’s accurate

71% 84% AD 88% AD 65% 78%

73% D 71% D 90% ABD 53% 78% D

73% D 67% 62% 57% 66%

A B C D E

n= 51 51 50 51 50

%, selected agreed with the statement

Feelings towards the data available for location-based ad targeting

EXECUTIVES AGREE LOCATION-BASED AD TARGETING IS VALUABLE, ACTIONABLE AND ACCURATE.

•  Significant differences are noted across countries.

10  

Base: Total sample, n=253 L10. What location-based digital media features do you find most beneficial for your business?

39%

35%

25%

27%

12%

25%

27%

18%

22%

51%

49%

45%

20%

25%

25%

33%

33%

10%

Ability to Target

Drive sales at point of sale

Drives foot traffic

Increases brand recall

Allows for meaningful personalization

Ability to reward loyalty

Proven to increase average purchase Take advantage of

digital wallets Ability to enhance in-

store experiences

44%

44%

20%

40%

42%

32%

32%

24%

34%

35%

35%

37%

27%

33%

24%

20%

20%

20%

66%

52%

38%

42%

30%

30%

24%

40%

40%

n= 51 51 50 51 50

A = Significantly higher than Country indicated by letter at 90%

A B C D E

BC

B

B

A

A

AB

C

B

BCD

BD

C

A

B

ABD

BCD

Ranked by total average

Top ranked features for the country

Most beneficial features of Location-Based Marketing

ABILITY TO TARGET CONSUMERS & DRIVING POS SALES TOP LBM BENEFITS

•  The UK and Germany rank personalization higher than other countries

84%

16%

Yes No

11  Base: Total sample, n=253 L6. Are you currently using location-based data to target your customers? A = Significantly higher than Country indicated by letter at 90%

67%

33%

55%

45% 47% 53%

84%

16%

n= 51 51 50 51 50

A B C D E

D

Current usage of Location-Based Marketing

COMPANIES ARE USING LB DATA TO TARGET CONSUMERS

CE CE

ABD ACE

ABD

LBM INVESTMENTS

12

26%

64%

4% 6%

Significant Moderate Minimal None

13  

Base: Total sample, n=253 L2. Which of the following best describes your current investment (i.e. both infrastructure and internal resources) in Location Based Marketing? A = Significantly higher than Country indicated by letter at 90%

18%

49%

22%

12% 24%

39%

25%

12% 10%

49% 29%

12% 24%

54%

12%

10%

n= 51 51 50 51 50

C

A B C D E

CE

D D CE

D

B

•  Germany is a leader in LBM with 26% of companies making significant investments, and only 6% of companies with no investment in the field.

•  Singapore is also noted as a strong LBM player with less than 1 in 4 companies investing minimally or not at all.

Current level of investments in Location-Based Marketing

MODERATE INVESTMENT IN LBM IS COMMON

n= 51 51 50 51 50

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Base: Total sample, n=253 L3. What percentage of your overall marketing budget was allocated to Location Based Marketing in 2015? L3b. What percentage of your overall marketing budget will be allocated to Location Based Marketing in 2016? A = Significantly higher than Country indicated by letter at 90%

40% 26%

37% 26%

35% 45%

31% 38%

26%

42%

2015 Plan for 2016

4.8 4.5

1.1 -0.6

7.1

%, Increase

BD BD BD BD

D BD

A B C D E

Unsure about current investments 24% 22% 12% 33% C 22%

Unsure about future investments 24% 22% 20% 29% 24%

%, average share of a marketing budget

•  Companies in the US and Singapore look to increase their LBM investments in 2016, inching closer to 50% of their projected budgets.

•  Canada and the UK lag in absolute % invested.

Share of the marketing budget that goes to Location-Based Marketing (Current vs Future)

LBM GROWTH IS TO BE EXPECTED IN 2016

15

Base: Total sample, n=253 L5. How important will Location Based Marketing be for your business in 2016? L3. What percentage of your overall marketing budget was allocated to Location Based Marketing in 2015? L3b. What percentage of your overall marketing budget will be allocated to Location Based Marketing in 2016?

•  As such LBM is poised to represent a larger portion of marketing budgets in 2016.

12% 14% 12% 18% 14% 14% 14% 6% 20% 2%

33% 41% 48% 43% 58%

41% 31% 34%

20% 26%

75% 73% 82%

63%

84% Top 2 box

Extremely Important

Somewhat Important

Neutral

Not Important (Bottom 2 Box)

A = Significantly higher than Country indicated by letter at 90%

n= 51 51 50 51 50

A B C D E

INVESTMENT CHANGE (2015 to 2016): +4.8% +4.5% +1.1% -.06% +7.1%

D D

D

AB

E E CE

Looking into 2016: change in importance of Location-Based Marketing

EXECUTIVES AGREE LBM IS AN IMPORTANT BUSINESS ISSUE FOR 2016

USA

Canada

Germany

UK

Singapore

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

16  

Base: Total sample, n=253 L5. How important will Location Based Marketing be for your business in 2016? L3. What percentage of your overall marketing budget was allocated to Location Based Marketing in 2015? L3b. What percentage of your overall marketing budget will be allocated to Location Based Marketing in 2016?

LBM Importance & Investment %

Average

Average

Importance (Top 2 Box)

Aver

age

shar

e of

mar

ketin

g bu

dget

EXECUTIVES PLAN TO INVEST 25%+ OF THEIR 2016 MARKETING BUDGETS INTO LBM.

LBM TECHNOLOGY TRENDS

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18  Base: Total sample, n=253 L7. Have you deployed any of the following? A = Significantly higher than Country indicated by letter at 90%

A B C D E

Total Averaged Global Spend

2015

Beacon Technology 22% 25% 32% 25% 26% 26%

GPS 43% 29% 62% ABD 33% 60% ABD 45%

Wi-Fi 55% D 43% 64% BD 29% 66% BD 51%

NFC 18% 25% 26% 20% 34% A 25%

n= 51 51 50 51 50

Top technology currently deployed in the selected country

Currently deployed technology

•  LBM leaders Germany and Singapore show more GPS technology deployment than other countries.

LBM DEPLOYED TECHNOLOGY IS HEAVILY WIFI AND GPS BASED

%, Yes

2ND technology currently deployed in the selected country

19  Base: Total sample, n=253 L7. Have you deployed any of the following? A = Significantly higher than Country indicated by letter at 90%

A B C D E Total Averaged Global Spend 2015+2016

Beacon Technology +16% D +8% +12% +4% +34% ABCD 41%

GPS +22% C +10% +6% +14% +10% 57%

Wi-Fi +14% +14% +14% +14% +6% 63%

NFC +16% +16% +20% +18% +36% ABCD 56%

n= 51 51 50 51 Top priority in the selected country in 2016

What changes to expect in 2016

•  The US looks to follow LBM leaders into GPS deployment •  Singapore looks ahead to Beacon technology

IN 2016 COUNTRIES LOOK TO DEPLOY MORE NFC TECHNOLOGY

%, No, but plan to invest in 2016

2ND technology priority for 2016 in the selected country

20  Base: Total sample, n=253 L11. Which of the following location topics are of interest to you in 2016?

35%

33%

25%

24%

24%

27%

22%

12%

10%

14%

63%

51%

33%

37%

29%

33%

24%

16%

20%

16%

Social Location Services

Location Based Advertising

Internet of Things

Location Analytics

Location Based Search Optimization

Location Based Loyalty Integration

Location Based Privacy

Merging Mobile + DOOH

Augmented/Virtual Reality

Location Based Gaming

40%

50%

36%

40%

34%

14%

36%

26%

18%

18%

45%

25%

37%

22%

25%

25%

20%

12%

14%

14%

58%

58%

46%

42%

48%

40%

36%

24%

24%

24%

n= 51 51 50 51 50

A = Significantly higher than Country indicated by letter at 90%

A B C D E

Ranked by total average

C

D

BCD

BD

C

BD

BD

BD

D

B

BD

BC

BD

C

B

D

ABD

•  Secondary interests vary by country.

Top 3 location topics for the country

Location topics that will draw attention in 2016

“SOCIAL LOCATION SERVICES” AND “LOCATION BASED ADVERTISING “ TOP AREAS OF INTEREST FOR 2016

LBM & NON-MARKETING ACTIVITIES

21

46% 44%

10%

We are currently using location based technology for non-marketing initiatives

We are not currently using location based technology for non-marketing initiatives, but plan to within the next 12 months.

We are not currently using location based technology for non-marketing initiatives and have no plans to in the immediate future

35%

29%

35%

22  

Base: Total sample, n=253 L12. Which of the following best describes your current use of location based technology for non-marketing initiatives? A = Significantly higher than Country indicated by letter at 90%

39%

43%

18% 37%

35%

27% 46%

36%

18%

n= 51 51 50 51 50

A B C D E

C ACE

Current use of Location-Based technology for non-marketing initiatives

•  Germany and Singapore are leaders in adoption.

NON-MARKETING LOCATION BASED INVOLVEMENT WILL GAIN ADDED ATTENTION IN 2016.

23  

Base: Those who currently/planning on using location-based technology for non-marketing initiatives, n=198 L13. For which of the following non- marketing initiatives are you <currently/planning on> using location based technology for?

59%

24%

19%

22%

24%

24%

16%

67%

43%

36%

26%

26%

21%

26%

Customer Service

Tracking assets

Tracking of internal activities

Store Planning/lay-out

Inter-company communications

Public Safety

Loss Prevention

64%

31%

24%

47%

29%

36%

22%

70%

33%

36%

24%

39%

42%

27%

68%

66%

49%

44%

41%

29%

41%

n= 42 37 45 33 41

A = Significantly higher than Country indicated by letter at 90%

A B C D E

Ranked by total average

B

B

ABD

A

BC

ABD

BC

ABCD

How Location-Based technology is used for non-marketing initiatives

•  Germany and Singapore are use (or plan to use) the data for store planning/lay-out.

CUSTOMER SERVICE LEADS NON-MARKETING LB INITIATIVES