location awareness oppty for advertisers
TRANSCRIPT
-
8/14/2019 Location Awareness Oppty for Advertisers
1/20
April23,2007
The Mobile Loc
ationAwareness
Opportunity
-
8/14/2019 Location Awareness Oppty for Advertisers
2/20
Background
Zoombak: consumer oriented location awarenessproducts and services
True Position: a leading wireless location solutionsprovider for carriers
Not currently an advertising or media company.
-
8/14/2019 Location Awareness Oppty for Advertisers
3/20
Goal
1. Introduction to Location Awareness
2. Food for thought on why advertisers and
marketers should care and pay attentionto whats going on
-
8/14/2019 Location Awareness Oppty for Advertisers
4/20
LBS and Location Awareness
Mobile Location Awareness: Mobile devices or systemsthat through use of some technology know the bearerscurrent location
Location Based Services: services provided as the resultof having location awareness to users capable devicesand systems
-
8/14/2019 Location Awareness Oppty for Advertisers
5/20
Where is GPS Now?
53.8 Million (subs)
65.7 Million (subs)
28.7 Million (subs)70 Million (subs)
~7-10% new car take rate
Available in ~70% ofvehicles sold*
In ~3% of all U.S. cars
9.5M* sold in U.S. in 2007
7.6M* sold in U.S. in 2007
Latest Stats Navigation or TrackingReady
Leading PlayersCategory
Sprint (CDMA)
Nearly all withGPS, but not allapp enabled
Verizon (CDMA)
T Mobile (GSM)Small butgrowing fast,300% CAGR*
ATT (GSM)
100%VehicleManufacturers
100%TomTom
100%Garmin
*Sources: ABI Research, Navteq, Garmin, TomTom SEC filings
-
8/14/2019 Location Awareness Oppty for Advertisers
6/20
Berg Insights, January 2008
175
560
0
100
200
300
400
500
600
2007 2012
26% CAGR
Million
WW GPS in Handsets WW LBS Subscribers
16
43.2
300
0
50
100
150
200
250
300
2007 2008 2011
Million
Gartner: Feb 2008
Growth in Location Awareness
-
8/14/2019 Location Awareness Oppty for Advertisers
7/20
Catalysts For Growth
The promise of ubiquitous and useable locationawareness has been talked about a lot before,some reasons it may actual arrive this time:
E911 (US and elsewhere) 3G data networks
Handsets shipping with GPS
PND sales and move toward the connected PND
Ubiquitous coverage through GPS alternatives
-
8/14/2019 Location Awareness Oppty for Advertisers
8/20
Catalysts For Growth
Indoor Reach Consumers expect
location to work anywhereand everywhere the device
or system works GPS does not work wellindoors or in dense urbanareas, new companies arearriving to fill this need.
In January 2008 Appleannounced it would beusing SkyHook in theiPhone
Triangulateposition fromproprietarytransmissions
Triangulateposition from
Wi-Fi Signals
Triangulateposition fromTV BroadcastSignal
-
8/14/2019 Location Awareness Oppty for Advertisers
9/20
Catalysts For Growth
Core Location iniPhone SDK
$8B investment inLBS
NuviFone
Investment in thenetworked car
Open handset alliance
Location Brokering In the past year weve seen biginvestments in mobile and LBSrelated initiatives from a wide varietyof leading players FCC spectrum auction could act asfurther catalyst
-
8/14/2019 Location Awareness Oppty for Advertisers
10/20
Advertisers
Q. Why is all of thisimportant to me as anadvertiser?
A. Because (most) peopledont live their livesbehind a computermonitor. And as great as
many digital advertisingcapabilities are, they arelimited in this respect
-
8/14/2019 Location Awareness Oppty for Advertisers
11/20
Davos January 2008
The arrival of a truly mobile Web, offering anew generation of location-basedadvertising, is set to unleash a hugerevolution.
It's the recreation of the Internet, it's therecreation of the PC (personal computer)
story and it is before us -- and it is verylikely it will happen in the next year
Eric Schmidt, CEO Google
-
8/14/2019 Location Awareness Oppty for Advertisers
12/20
Geospatial AdvertisingWhy limit all the capabilities of digitaladvertising to the world of web servers?
-
8/14/2019 Location Awareness Oppty for Advertisers
13/20
Advertising
Location awareness can move many digitaladvertising practices to the next level:
Targeting
Measuring ROI
Search
-
8/14/2019 Location Awareness Oppty for Advertisers
14/20
Ad Targeting
The importance of a hyper targeted ads, and thedegree of match or correlation between theadvertisers product and the reason the adimpression was generated cannot be
underestimated
More information, and targeting from thatinformation, without question, results in higher
value According to Revenue Science behavioral targeting
rates are 15x higher than non BT ads
-
8/14/2019 Location Awareness Oppty for Advertisers
15/20
Ad TargetingAnnualized Ad Revenue Per Average Monthly Unique
$12.28Google
$1.32MySp
ace
$1.62Tim
eWarner
$3.25Mic
rosoft
$8.65Yahoo
$2.42Cnet
$5.47We
bMD
Search Market Share
Display ads endemic/niche-nessAs degree of match between the advertisers product and the reason thead impression was generated increases, so does revenue per user
68.1%17%9.1%1.7%
Source: Morgan Stanley, Nothing but Net Report
-
8/14/2019 Location Awareness Oppty for Advertisers
16/20
Interests=live football
Interest=
Behavioral
Targeting
Locationawareness = newpowerful targeting
options
Delivery based onwhere you are nowor where youvebeen.
-
8/14/2019 Location Awareness Oppty for Advertisers
17/20
StoreVisit=Yes
ROI
Cost Per
Locationawareness = newreturn on
investment metrics
Advertisers onlypay when real instore foot traffic isgenerated
StoreVisit=no
-
8/14/2019 Location Awareness Oppty for Advertisers
18/20
PageRank=
PlaceRank
Links areoccurring everydayas people with
location awaredevices vote withtheir feet as theyvisit or chose notto visit places
-
8/14/2019 Location Awareness Oppty for Advertisers
19/20
Privacy
Internet users have consistentlydemonstrated a willingness to tradeinformation for features they find useful.
So long as sites do not overreach, weexpect this trend to continue, withyesterdays outrage becoming tomorrows
hot feature.- JP Morgan Nothing But Net 2008 Update
-
8/14/2019 Location Awareness Oppty for Advertisers
20/20
Questions