The evolution of mobile marketing

New trends in Location Based Services (LBS)

history

History of mobile

1947 - Bell Labs engineers propose hexagonal cells for mobile phones in vehicles

1973 – “1G” – predecessor of Zack Morris phone Motorola Dynatac, by Dr, Martin Cooper

1990’s – “2G” (GSM/CDMA) – UK has first SMS in 1991

1999 – WAP version 1.1 (wireless access protocol) Optimized webpages made mobile browsing possible

2001 – “3G” released in Japan Also 2001, NTT-DoCoMo (Japan) introduces the world's first LBS phone, before mobile

phones had GPS. 2002 – BlackBerry modifies 2 way pager to create first email enabled phone

iPhone day – July 11, 2008

Historical

Recent/forecasted mobile

Overall, there are now more mobile phones in the world than personal computers.

Mobile is KING

Newspapers Cars Email Internet TV Mobile0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Millions of users, 2009

Source: Research we found online

First steps in mobile marketing

Gaming 1997 - Snake on Nokia 6110 – Black and white

JamDat – 1st dominant mobile gaming company, 2000 Acquired by Electronic Arts for $650mm

Paying for add-ons to their phone – introduced idea of a cellphone as a full-service portal

1st time you used your phone for transactions

First steps in mobile marketing (cont.)

SMS Was an unsaturated medium – nearly 100% of sms msgs are viewed by receiver 7.3 billion text messages per month in June-05 (up 154% from June-04), 15 billion (150%) in Oct 06 // 25 billion in Oct 07 in US alone Niche advertising agencies start to form for SMS marketing

ipsh!, JuiceWireless, WiredSet Example – text “coke” to 12345 –

Text message call to action as an opt-in

US Internet Users US Text Message Subscribers0

50

100

150

200

250

Source: To Mobile or Not to Mobile: Digital Strategies for Marketers - Nielsen; Internet eMarketer, 2009

Millions of users, 2009

Mobile banners

One in five phones in the US are currently smartphonesThe mobile ad market today is $420mm

Direct campaigns Running direct deals with advertisers who want exposure to mobile For example, Coors:

Emergence of mobile ad networks Ad networks like Quattro, Millennial, Admob, JumpTap, ThirdScreen AdMob was acquired by Google last week for $750mm, igniting the dialogue

about mobile advertising

Source: AdWeek – “Mobile ads – Wait until next year”

Okay, so where are we?

Massive mobile audience is clear 1% Click-through rate on mobile leaves room for

improvement Devices becoming more and more capable People are using their phones more They are doing more ‘stuff’ on their phones “The phone is the new swiss army knife” – CBS

News

Now - Location

using location to reach your audience

Location

GPS / Cell ID / carrier detection / manual

Why is location important to mobile marketing? Mobile is a medium that captures an audience on the go People tend to use their phones to get stuff done

What do you want your consumer to get done?

How LBS is used: Where am I? Where are my friends? What is around me? What can I do with it?

Evolution of Location Based Services (LBS)

Mobile has been the catalyst that made LBS relevant

1st step: City level local content – think a NYC city guide This happened first on web and then on mobile Vindigo for Palm

Then: hyperlocal emerged – think Google Maps Nearby determines relevance Organized by distance away from you For example - Starbucks on Google Maps:

Next phase – its all about ME

Always-on services harness the power of in-app location (like GPS) Track me, help me find my friends

Loopt, Google Latitude

More about me – lifestreaming Using LBS to document/publish my life (photos, notes, status updates)

Brightkite, Whrrl

Latest and greatest – beyond lifestreaming

Appealing to a mass market Games and incentives Competition

Foursquare Gowalla

Aggregating LBS content Multiple sources = context Big picture emerges

Buzzd

Future trends in mobile

More powerful means of engagment: Push notfications (for nearby offers, Rich media ads (videos, downloadables, etc)

Monetization: as context and targeting becomes richer, monetization is becoming increasingly long tail - how do you bring in the advertisers themselves? Self-serve like Facebook?

Need to be smarter too - to be predictive, proximity and demographic data isnt the only thing that makes an ad good for a user - will need to be personalized/contextualized Eg: PinchMedia uses facebook connect

With more and more apps - mindshare gets diluted. Future isnt about picking a winner. Winners will pick a specialty and diversify offerings within it: Inventors/Publishers of apps (UI/mktg/functionality) / Monetization of these interfaces Application Developers - coding apps Backend B2B LBS technology like Skyhook

mountains to climb

how do you keep it cool?

As marketers have more and more tools for targeting their audience, how do they keep it from being: A) Creepy B) Oversaturated

ie: Microsoft Bing’s ‘search overload’ commercials How much intrusion is ok

C) Static Needs to be new!

How can you make it more relevant? More and more, users reject content that seems random How do you balance mass market economics and the super-contextual long tail?

problems with discovery

The number of apps is increasing exponentially – what can you do to stand out? Who controls the eyeballs? What is your hook?

Facebook’s iPhone app developer (Joe Hewett) blasted Apple last week: “My decision to stop iPhone development has had everything to do with Apple’s policies. I respect their right to

manage their platform however they want, however I am philosophically opposed to the existence of their review process. … The web is still unrestricted and free, and so I am returning to my roots as a web developer. … I would like to be able to say that I helped to make the web the best mobile platform available, rather than being part of the transition to a world where every developer must go through a middleman to get their software in the hands of users.”

Carrier distribution method is painful and slow moving Carriers have a stranglehold on location and the discovery of content. They also have strict advertising and content guidelines

Next steps in LBS discovery: AppStore genius – recommendation engine for apps Android – open development platform – open discovery channels Cross promotional partners

privacy

App developers have a responsibility to be fully transparent with their users: Where data is published What kind of data is published

LBS developers have an obligation to help delete your digital footprint if requested Facebook recently had a big PR problem around deleting acocunts

Users want the option of a full delete Location Based Services could potentially redistribute a person’s location out to a wide

variety of sources If a user posts their whereabouts, and later changes their mind, they need to be

able to clean the digital paper trail

When you post your location publicly – what else are you posting? Mashups of data could potentially predict a lot more about your location than the sum of

the parts - what ethically must we do to protect against this?

appendix: rethinking local listings

wall between listings and LBS publishers

Local Ad Networks Local Content Publishers

typing a search vs. listings as content

We are building a network of partner directories businesses that can help you monetize beyond just search

Traditionally, listings were only available as responses to search queries We have taken listings and set up agreements that set these listings free These partnerships have taken us 6 months to get up and running and another 6

months to optimize Directories businesses don’t have clear, open APIs for LBS apps, nor the

bandwith or DNA to create them We intend to resyndicate this setup to other location based services

User browses local listings because they house info that is interesting Through us, payment can resolved on contextual actions:

- View owner description- Click to call- View map/directions

- Share it

- Post to Twitter- Save to favorites- Add to Address Book

Mobile display advertising is a $200mm / year market (2008-9)

Local advertising is a $100B / year market, of which $58B spent by 26mm SMBs

Aggregate local merchant sales forces exceed 15,000 existing ‘feet on the street’ (yodle, reachlocal, yellowpages, citysearch, yelp, etc)

Local mobile applications create much needed contextual inventory for existing local adnetworks

the opportunity

the proposal

We’ll give you: A free feed of local listings An API to keep you updated on which have

remaining budget A mechanism by which you can ping us with

usage statistics Cache and exposure to local listings

directories, with refined integration Revshare on this traffic

Give us: Pings on which venues are viewed Filter out bot traffic Agreement to the terms of resyndication

local advertising

reports

Thank you!!

glen nigel straub marketing

glen@buzzd.com phone: 646.723.4657

michael muse business developmentmichael@buzzd.comPhone: 646.484.8599

text BUZZD to 28993 to get...buzzd: your city. real time.

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