Location-Based Services

September 2010

Agenda

2

• Objective

• What Is A Check-In?

• LBS Adoption

•Landscape

• Vendors

• Double Dutch

• Facebook Places

• Foursquare

• Gowalla

• MyTown

• SCVNGR

• Shopkick

• Looking Ahead

Objective

Objective

Provide an overview of the landscape of location based services, in an effort

to socialize knowledge on the burgeoning platforms.

4

What Is A Check-In?

What Is A Check-In?

Social check-ins stem from the traditional idea of

checking-in, i.e. at a hotel or airport, where one

literally announces their arrival.

Mobile social networks have used the same

concept from the early 2000’s to allow individuals

to announce their locations to their select

networks for various purposes—from virtual

incentives to tangible goods.

How it works:

1. A mobile user selects the platform they wish to check-in to (i.e. Foursquare,

Gowalla)

2. The app and phone’s GPS work to locate places nearby the user for them to

check-into.

3. The user selects the place they are at, and has the option to share with their

network within the platform or to outside networks (i.e. Facebook)

6

Adoption

Adamant users of location based technology are being driven by three main

factors:

1. Mapped location of destination

2. Couponing and discounts

3. Reviews

Source: Jwire, Q2 2010 8

LBS Adoption: Usage

Source: eMarketer June 2010; n = 2,260

US Mobile Internet Users Who Are Willing to Share

Their Current Location to Receive More Relevant

Advertising, by Gender, June 2010 (% of

respondents)

• At 57%, mobile internet users within the 25 – 34 age range were the most willing to

share their current location to receive more relevant advertising

• At 46%, male mobile internet users were the most willing to share their current location

to receive more relevant advertising versus females at 42%

9

LBS Adoption: Usage

US Mobile Internet Users Who Are Willing to

Share Their Current Location to Receive

More Relevant Advertising, by Age, June

2010 (% of respondents)

Landscape

LBS Landscape

Foursquare is a

social network, with

a gaming element

built around gaining

points and badges

for sharing your

location.

SCVNGR is a

targeted gaming

platform, driving

engagement in

exchange for real-

world rewards.

Gowalla is a check-

in service where

users discover

new places, while

stamping their

passport and

collecting digital

souvenirs.

Double Dutch is a

customizable, white-

label, geo-location

app that allows users

to connect with their

friends and leave

reviews.

Shopkick is the only auto-

check-in app that bridges

the mobile and physical

space by giving consumers

“kickbucks” for simply

entering a store.

Facebook Places

combines Facebook with

geo-location check-in

services, allowing users to

share their location with

their friends.

MyTown is a location-based

social game, akin to

monopoly, about buying

and owning your favorite

real-life stores and

hangouts.

3.1MM500MM*TBD

3.0MM +1MM 390K 2.5MM

*Note: Based upon total universe of Facebook, but it is unclear as to how many Facebook users are actually using Places. 11

Platform Overviews &

Case Studies

Double Dutch: Overview

• DoubleDutch provides companies a platform

to create a branded geo-location application

through their white label product.

• Brand’s can create custom and closed-

community city guides, conference activities

and an enterprise socializing application, to

allow users to engage in a familiar platform,

with a branded feel.

• DoubleDutch is currently the only

customizable geo-location platform built for

brands and companies.

• The growing smartphone penetration has

allowed DoubleDutch to utilize these location-

aware devices to create customized engage

and extend communities.

13

Operating Systems: iPhone

Facebook/Twitter Publishing : Yes/Yes

DoubleDutch: Case Study—GQ

• GQ provided their readers and mobile

users a chance to engage with their

content about the top bars and nightclubs

in cities.

• Using the DoubleDutch white label

product, GQ was able bring reviews and

photos of many of the top bars and

nightclubs of various Australian cities.

• Utilizing the geo-location functionality GQ

and DoubleDutch were able to create a

city-guide and gaming experience.

• Users were able to:

• Discover new bars

• Challenge their friends for badges

and ―mogul status‖

• Keep track of favorite locations and

V.I.P. treatment

• Post reviews and photos of venues

14

Facebook Places: Overview

• Allows Facebook users to share which location they are currently

at with their friends

• Facebook users can share their location, and see if any of their

friends are checked-in nearby, allowing them to connect with them

easily.

• Places is currently only available in the United States, native to the

iPhone platform and also accessible by visiting touch.facebook.com.

• When users check-in at a location, they can tag their friends in

their updates.

•A ―Places Page‖ shows a map of where your location is, a list of

users who are currently checked in (if any), as well as a Friend

Activity stream of other friends who have visited the Place in the

past.

• Fan Appz has just announced that it has integrated its platform

with Facebook Places, giving brands "a powerful and easy way to

create highly relevant offers based on a customer's offline

activities."

15

Operating Systems: iPhone, touch.facebook.com

Facebook /Twitter Publishing : Yes/No

Foursquare: Overview

• Location based social networking service

• Positioned primarily as a social utility and city guide

• Users "checks in" to locations

• Invite friends along

• Leave tips glued to GPS coordinates

• Compete for digital rewards in the form of

badges or titles (i.e. mayorship–the user who

checks in the most at a venue)

• Users can track the history of where they've been

and who they've been there with

• Integration into Facebook Places

• As of August 2010, there were over 15,000 venues

experimenting with Special Offers on Foursquare.

16

Operating Systems: iPhone, Blackberry, Android, Palm

Facebook /Twitter Publishing : Yes/Yes

Foursquare: Case Study—Bravo

• Bravo and Foursquare offered users ―badges

and special prizes‖ when viewers visited more

than 500 Bravo locations.

• The locations were matched with select Bravo

shows , bringing the characters and places of

The Real Housewives, Top Chef, Shear Genius

and others to life in the real world.

• After checking-in viewers and Foursquare

users were able to then leave content and Tips

behind, like the best meal at a Top Chef’s

restaurant.

• The execution was unique and pioneering by

providing supplementary interactions with TV

show characters, through locations.

17

Gowalla: Overview

• A travel game that lets users stamp digital

passports at places they visit, find virtual

objects in real-world places (i.e. a scavenger

hunt), and follow trip itineraries in new cities.

• Users check into places in order to stamp

their passport and collect digital goodies

• User can connect with friends, while

sharing places and photos from locations

they’ve visited

• Users can discover virtual items left around

the world like digital souvenirs, with many

redeemable for real-world rewards such as

apparel, movie tickets, gadgets and more.

• Integration into Facebook Places

18

Operating Systems: iPhone, Blackberry, Android, Palm

Facebook/Twitter Publishing Yes/Yes

Gowalla: Case Study—National Geographic

• National Geographic partnered with Gowalla to

create Nat Geo's "Gowalla Passport" offering 15

city walking tours.

• The themed trips—from Washington D.C. Arts &

Culture to Paris Along the Seine—brings Gowalla

users on a trip to discover the sites and scenes of

cities.

• Users can see who has checked-in to each of the

locations on the trip, who has completed the full trip

and any photos that have been left behind .

• Once a user visits every spot on the tour they

earn a special National Geographic digital pin.

• Through Gowalla Trips, National Geographic is

able to extend their brand’s digital travel

experiences to people on the go and inspire them

to explore and discover the places around them in

a deeper, more meaningful way.

19

My Town: Overview

• MyTown uses GPS features to check-in at real-

world locations to unlock rewards.

• Players can buy and upgrade shops, enjoying

MyTown ownership of their favorite real-life places.

• Users can also collect rent when other people

check-in to their shops.

• The more a place is frequented, the more it raises

a user’s shops’ value and rent.

• Players can also use power-ups to unlock more

locations to buy.

• The Product Check-in allows players to directly

interact with products in a fun and rewarding

manner.

20

Operating Systems: iPhone

Facebook/Twitter Publishing : Yes/Yes

My Town: Case Study—H&M

• H&M partnered with MyTown to showcase its collection of

denim and blue garments, called the Blues, in an effort to

bring together elements of the real world and digital world.

• MyTown players who checked-in at a shopping centre or

other locations in a city where an H&M store was located

near-by, were prompted to unlock H&M virtual Blue items.

• The unlocked items provided in-game points, while also

generating awareness of H&M and encouraging users to

visit a nearby store to purchase pieces they liked.

• H&M delivered 10.6 million branded impressions to mobile

users checking into venues in MyTown

• 700,000 MyTown players checked into game locations near

H&M stores and earned points they could use to acquire

branded items.

• H&M is further expanding their integration into MyTown

with Denim Days and virtual goods.

• Players can scan the bar code of their favorite H&M

items to unlock branded items packed with points and

virtual cash.

21

SCVNGR: Overview

• Complete SCVNGR challenges to earn points, where

earned points can be redeemed for rewards

• Challenges are interactive, including taking a picture

and ―social check-ins,‖ where users have to bump their

phones together to check-in at the same place.

• Once enough points have been collected, SCVNGR

will display a message instructing the cashier on how

users can redeem their reward.

• SCVNGR is giving away free QR codes decals to

retailers, free of charge—and has recently integrated

with Facebook Places, where challenges activity will

remain as a normal activity feed update, however

―Social Check-ins‖ will be tied to Facebook Places and

Place Pages.

22

Operating Systems: iPhone, Android

Facebook/Twitter Publishing: Yes/Yes

SCVNGR: Case Study—AT&T

• AT&T partnered with SCVNGR to promote the

launch of the new Samsung Captivate

• Across the Midwest 50 AT&T stores will be

offering rewards for earning SCVNGR points

• if users earn two SCVNGR points, they will

receive a free gift card for a ring tone

• If they earn five points, they will receive

20% off accessories

• If users earn 15 points at a store they get

$50 off the price of the Samsung Captivate

• The reward is retroactive, so players can buy the

phone, download SCVNGR, complete challenges

and get $50 back after the fact.

23

Shopkick: Overview• Bridges the mobile and the physical retail world by allowing location-

based and personalized POS relationship marketing on a scalable

platform

• Provides offers and rewards simply for walking into a store—auto-check-

in

• This doesn’t use GPS (or even WiFi triangulation), instead this is a

custom hardware plus app system Shopkick created and installs in

partner stores—meaning no fake check-ins.

• Allows for accurate detection of when a consumer enters into a store

• Scalable rewards based upon number of visits

• Personalized offers and product interactions (i.e. loyalty card

programs across retailers)

• Instant redemption

• Marketing costs are performance based, on a cost per action and cost

per visit

• Allows users to share their location just with the store and not with other

people, and is making inroads with a broader demographic

24

Operating Systems: iPhone, Android

Facebook/Twitter Publishing : Yes/TBD

Shopkick: Case Study—Best Buy

• Shopkick and Best Buy teamed up to

allow the location app to detect whenever

a user enters a Best Buy store.

• Shopkick users are able to redeem

kickbucks as Best Buy certificates—

redeemable for free music or Gift Cards to

Best Buy.

• Best Buy and Shopkick are letting users

scan items with their phones to get deals,

and ―kickbucks.‖

•In order to give extra rewards to

customers Best Buy has integrated

Shopkick into their point of sale system, to

easily process the redemption offers

available to customers.

25

Looking Ahead

Cultural Normalization

• The idea of geo-location check-ins is

beginning to be seen as reasonable by

mainstream consumers.

• Venture capitalists have poured $115 million

into location start-ups since last year.

• The next shift will be to actual usage of geo-

location services by a large portion of the

mainstream.

• The launch of Facebook Places was a huge

milestone; through this, a massive number of

people were introduced to the idea of social

check-ins,. Facebook’s effort also stands as

an endorsement of the concept.

• As a result of the launch of Facebook Places

and their integration with the platform,

Foursquare has seen a significant increase in

daily new users compared to the average.0

100

200

300

400

500

600

Foursquare (3 mm)

MyTown (3.1 mm)

Facebook (500 mm)

Users by service (millions)

27

Different Services For Different Needs

• In the geo-location space you’ll see a

few prominent services aligning with

different consumer needs.

• For gaining the social benefits of sharing

your location with friends, Foursquare or

Facebook Places will likely become the

widely-adopted service.

• For incentives and loyalty programs,

something like Shopkick is a good model,

though it’s way too early to make a clear

judgment on that particular service.

28

Expanded Scope of Check-ins

• Check-in services such as Shopkick and Miso have

already entered the product and entertainment spaces.

• Swipely is a service that allows users to share their credit

card purchases, offering automated insight into their lives for

friends and family.

• Miso allows users to check-in to television shows they are

watching; points and badges are awarded and a check-in

can be a launching point for a conversation about the show,

via a commenting system.

• Hot Potato is based on a similar concept, but allows users

to check-in to literally anything they want.

• As the space evolves, content-based rewards will be

increasingly prevalent due to two factors:

• Digital content is becoming more widely available

and more easily distributed.

• Entertainment check-ins, which are a natural fit, will

likely gain mainstream.

29

Appendix

Additional LBS Platforms

31

2.2MM2.0MM4.0MM

Location based

social

recommendation

service with reward

based programs.

Local business

reviews and tips with

coupons and

comprehensive

restaurant reviews

and ratings guide.

Find friends, go

places, rate them

and get rewarded

with instant friend

meet-up and retail

discounts.

Initial mass

adoption, but

minimal activity on

platform.

Check-ins are simply a

feature on Yelp.

Potential down the road

if integration into FB

Places.

Initial mass

adoption, but

minimal activity on

platform.

3.0MM

Latitude allows

users to see their

friends locations and

share their own.

Very utilitarian in

nature and offers no

brand integration or

gaming opportunities.