Examining Techniques For

Generating Revenue From

Location Enabled Mobile
Advertising
Andrew Grill, Mobile Advertising Evangelist -
Gigafone
www.London-Calling.org.uk
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LBS 2008, Berlin October 2008
Introduction

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What we’ll cover

•Why the Starbucks example will never

happen
•The location challenge
•What Advertisers want
•What’s here and now
•What’s next
•Location’s place in the mobile advertising
value chain
•Show me the money

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Let’s kill off the “Starbucks
Example”

Assume the following campaign

50,000 opt-in users
2 week campaign (Mon-Fri) = 10 days
8 hour window (8am – 4pm)
Check location every 5 minutes by operator
cell-ID
Assume €0.10 per poll
What would this cost?

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The cost breakdown…

50,000 users
10 days
8 hours ALMOST
12 polls/hr 5 MILLION
€0.10 per poll
€4.8m
Euros!
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What is mobile advertising?

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 The Mobile Advertising Value
Chain
Traditional Promotional Channels

Marketing
Advertisers Agencies & Content Aggregator Device Wireless
Enablers Subscribers
/ Brands Media Providers s Makers Operators
Buyers

Advertisers need…
• Aggregated and specific customer information (e.g. age, gender, segment,
Targeting lifestyle)

Measurability • Ability to track consumer engagement by counting clicks vs. displays

Relevance • Ads must be conveyed to the precise target in the right context …

Location • Information on the consumer location to increase relevance of ads

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Mobile operators don’t have all the data
advertisers need

Vodafone Australia mobile advertising brochure

•Gender
•Phone type
•Postcode
•Segmentation
•Age
•Gender
•Spending pattern
•Credit worthiness
•Location??

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Recap from yesterday

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Or….we ask the user’s permission and
preference

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Google Maps – now with
sponsored links

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Mobile LBS Landscape

•Significant uptake by consumer of location services –

driven by:
– Device capabilities (larger - sharper displays , 3G data
rates & GPS)
– Quality content (maps, POI, navigation engines)
– Attractive data tariffs
•Current focus around navigation & search
•Future growth expected in location based advertising
& social networking

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Mobile LBS Landscape

•Significant growth in LBS, fuelled by convergence of:

– Device capabilities (larger - sharper displays , 3G data rates & GPS)
– Quality content (maps, POI, navigation engines)
– Attractive data tariffs
•Current focus around navigation & search
•Future growth expected in location based advertising & social
networking
•The industry can’t wait any longer for operators to provide cell-ID
data to 3rd parties – Google, Nokia, Skyhook doing it themselves
•Advertisers need cross network and cross country coverage

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What does this all mean for location based
advertising?

•Technically possible to provide a location

capability
•Until advertisers can use location with
scale and ease it will be niche
•Consumers starting to use GPS and
operator independent location services
•Mobile advertising ramping up (Google vs
operators)
•Flat rate data plans driving usage
•Location can become inventory

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 Zone detection for location based
advertising
Fixed GeoZones User Defined Zones
• Locations with high footfall • Places/contexts that are
and/or high value consumers important to an individual user

• Airports, railway stations, city • My home, my office, my pub

centres, shopping malls,
• Provisioned by the user
sports stadiums
• Further contextual advertising
• Provisioned by the operator opportunities
and changed infrequently

Brand Defined Zones

Highly scalable
• Zones related to specific • Zone detection performed
brand locations
at handset level
• Store locations; restaurants; • Notify on user entry/exit
special promotions
• No need to poll user’s
• Respond rapidly to brand location
campaigns
• Accommodates network
changes

Concept of “zone detection”

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Advertisers may use location in a
different way

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• Free to consumer
• Ad / sponsor funded
• Timely, trusted, personalised content

Personalised, location based,

recommendations

Location based ads

with distance & routing

Socially enhanced ads

“3 of your friends have been here”

Ability to share social objects

with your peers & the community

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http://LBS.andrewgrill.com
Andrew Grill Twitter: @andrewgrill

www.andrewgrill.com/contact
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