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LOCATION-BASED SERVICES

LOCATION-BASED SERVICES. Presented by Alan Reiter President, Wireless Internet & Mobile Computing reiter@wirelessinternet.com 301-715-3678. JAN. 6: LOCATION-BASED SERVICES. Bankruptcy versus bounty: Bottom-line challenges

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LOCATION-BASED SERVICES

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  1. LOCATION-BASED SERVICES Presented by Alan Reiter President, Wireless Internet & Mobile Computing reiter@wirelessinternet.com 301-715-3678

  2. JAN. 6: LOCATION-BASED SERVICES • Bankruptcy versus bounty: Bottom-line challenges • Developing scores of location services that are clones of each other is relatively easy.  The hard part is generating revenues.  The value chain is vast:  Cellular operators, handset manufacturers, applications and services developers, and retailers.  Subscription fees, software payments, retail freebies, and discounts are all part of the mix.

  3. THERE IS MONEY TO BE MADE • Berg Insight: Location-based service revenues in Europe • 2009: €220 million • 2015: €420 million • One third of all European cellular subscribers to regularly use a location app by 2015 • Top apps: Local search, navigation, social networking • Location apps transitioning from fees to ad-supported

  4. NUMEROUS FINANCIAL POSSIBILITIES • “Check-in” services exploding • Exploring numerous ways to generate income • Retailers offering discounts, freebies • Foursquare, Gowalla, etc.,from mayors to money • Advertising • Major brands • Charities

  5. FROM BADGES TO DISCOUNTS • Becoming mayor or getting a badge might be fun, but getting a discount might be better

  6. COUPONS/DISCOUNTS, FREEBIES BIG BUSINESS

  7. COUPONS/DISCOUNTS, FREEBIES NOT JUST FOR CONSUMERS • Except for youngsters and students, everyone is anemployee • Many popular apps for business travelers alreadyhave location-based featuresand ads • Location embedded in almost everything

  8. FOURSQUARE’S REVENUE MODEL • “Mayors” get discounts, freebies, valet parking, free hotel stays, spa treatment, sports tickets, cars, photo on walls, flight vouchers • Revenues from sponsored badges • Mazda, Washington Redskins, GEICO • Many testing the waters • Zagat, Pepsi, HBO, Bravo,The History Channel, The NewYork Times, Gap

  9. FOURSQUARE’S VALUE PROPOSITION • Value proposition for retailers • Customer loyalty • Drive customers to buy through check-ins, discounts • Foursquare exploring tiersof service • Small businesses • Chain stores • Multinationals

  10. GOWALLA SELLS NEW FEATURES • Gowalla added Verified Businesses, City Pages, Stamp Calendar • Businesses “claim” their location for free and create a welcome message for check-in • Business may purchase custom stamps • Businesses may purchase a listing on the Gowalla events calendar • First day costs $5

  11. TURN BADGES INTO MONEY • Gowalla designs custom stamps (badges) and vinyl window stickers for businesses • Sell other real products from badges • Offer discounts on products based on badges (Disney products)

  12. DRIVING TRAFFIC TO BUSINESSES • Gowalla offered 250 virtual tickets exchanged for real tickets to New Jersey Nets basketball game • Winners also received t-shirts and stickers • 76 tickets redeemed • Nets a losing teams, IZOD stadium hard to get to fromNew York, Monday night gamenot best time

  13. LOCATION-BASED MOBILE ADVERTISING • Apple iPhone has GPS, accelerometer, gyroscope, compass • Outdoor and indoor location • Apple iAd platform: Ads in apps

  14. LOCATION-BASED MOBILE ADVERTISING • Google bought AdMob • Ad targeting by location, type of device, demographics (e.g., gender, age group) • AdMob (and other ad/marketing firms) use data submitted by user when registering for apps

  15. JIWIRE COMPASS • Ads based on WiFi location • Laptops, phones, tablets • Expands to full screen • Product information • Real-time availability • Directions to store • Order via phone, SMS • JiWire bought NearbyNow

  16. LOCAL SEARCH EXPLODING • 53% of searches on Microsoft Bing have a local element (Search Engine Land from Stefan Weitz, head of Bing) • 20% of Google searches are related to local (from Google) • Google Latitude • Google Expandable Ads

  17. SEARCHING WITHIN ADS • As companies offer new features within applications, new revenue opportunities arise

  18. MORE LOCATION ADVERTISING FOR MORE COMPANIES • BIA/KELSEY • Local mobile advertising • 2009: $213 million (44% of total mobile advertising) • 2014: $2.03 billion (69% of total mobile advertising) • “We expect to see more bundling of mobile advertising by digital and local media companies, in an effort to lower the barriers for adoption by small and medium-sized businesses. “As a result, mobile advertising will move down market to SMB and mid-market segments, increasing the overall revenue opportunity and share of geotargeted ads. This down-market shift will be coupled with large advertiser evolution and adoption of mobile local ad distribution.”

  19. CELLULAR OPERATORS • Simple! Charge for navigation services • Monthly fees • Not so simple: Free versus paid apps • Google, Bing, Nokia turn-by-turn directions • Cellular differentiation with social networking, restaurant guides, events calendars, graphics

  20. LOCATION DIFFERENTIATION: BEAUTIFUL GRAPHICS • Navteq features • Beautiful navigation graphics, 3D of cities

  21. NAVIGATION SERVICES INCREASE • Berg Insight: Cellular phone navigation services/applications • 2010: 44 million users worldwide (57% growth from 2009) • 2015: 195 million users worldwide • US: 8% of cellular phone subscribers use navigation services/apps

  22. THANK YOU! Alan Reiter reiter@wirelessinternet.com

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