nyc product camp 2011 ver 3.0
DESCRIPTION
My Presentation on Location Based Mobile Advertising at ProductCamp, NYC 2011TRANSCRIPT
Location Based Mobile Advertising
Nagendra Kumar Lavu Senior Product Manager Product Camp - NYCSep 17, 2011
2
Agenda
• Location Based Mobile Advertising Overview
• LBA Ecosystem
• Market forecasts
• Key Market drivers and Challenges
• Competitive Landscape
• Key Recommendations
• LBA Architecture
3
Location Based Mobile Advertising
Location Based Mobile Advertising (LBA) involves delivering Content and ContextAware advertisements to the mobile users based on their Location
Definition
• Push Advertising• Pull Advertising
Classification
AdvantagesMobile is Personal, Interactive and Constantly in Use. Location adds “WHERE” filter and provides Context, Localization and Relevance LBA provides following RICH DATA to Advertisers:WHERE: Geo-AwarenessWHO: Social graph and group DynamicsWHAT: Real identify of a location as well as one’s behavior and preferencesWHEN: Frequency, time and durationWHY: IntentHOW: Path to arrival and Path to exit
4
LBA Delivery Models
5
LBA Ecosystem
Advertisers/Brands
Ad Agencies/ Marketing firms
Publishers/Content Providers
Mobile Applications
Mobile Users
Mobile Operators
Ad Networks/Platform Providers
6
Market Forecasts
• US Mobile Advertising is at $1.24 BN in 2011 and estimated to be $5 BN by 2015• In 2011, 49M engaged with advertising, 12M clicked on ad and purchased an item• Mobile Local Ad Spending will be the fastest growing medium over next 5 years• LBS are estimated to have 53% CAGR in Revenues and 63% CAGR in Subscribers
7
Market Drivers and Challenges
• Smartphone Usage• Mobile Internet - 3G/4G Data Networks• GPS Enabled Handsets• Free Mapping APIs
Market Drivers
• Privacy • Accuracy of Location• OS and Device Fragmentation for App Development
Challenges
8
LBA Competitive Landscape
Mobile Apps:Facebook, Foursquare, Loopt, Gowalla, Navteq
Brands/Advertisers
Platform Providers/Ad Networks:Admob, iAd, Yahoo, Bing, Jumptap, JiWire, Placecast, TeleNav
Mobile Operators:Verizon Wireless, AT&T, Sprint
Mobile Users
9
Key Recommendations
Platform Providers:• Accuracy of Location• Location + Context is the key• Spam Control• Develop Predictive Analysis and Intelligence tools
Operators:• Control Privacy of the End-user• Partner with Platform Providers and Application Developers• Provide Mobile App stores• Offer Predictive Analysis and Intelligence tools
Application Developers: • User Engagement is the key
Product Innovation Areas and Revenue Generation
10
LBA Architecture Brands/Advertisers
Ad Agencies (Ad Content)
LBA Platform Provider/
Ad Network
Ad Server Publishers/Content
ProvidersApplication
Server
Ad Campaigns
Location Server
Rules Engine
User’s Location,Profile
Location Ads are pushed
Mobile Operator
LocatIon
RelevancyEngine
LBA Architecture
Periodic Payments
Ad Response Metrics
Location API
11
Positioning and Measurement
• GPS• Cell-id• Wi-Fi• AGPS
Determining Location
• CPM• CPC calculated based on CTR• CPA• Click to Call• Click to Navigate• Click to Website• Click to Redeem
Measurement Metrics
12
Location Ad Targeting
Device(OS, Screen Size,
capabilities)
Time of Day & Day of Week
(Breakfast places, night clubs)
User Demographics (Age, Gender)
Content(Keywords, site, page, context,
yield )
Location(Geo-fence, Zip Code, Cell Id)
Points of Interest (Bars, Pizza,
Family, shopping)
13
THANK YOU
Nagendra Kumar Lavu Senior Product Managerhttp://www.linkedin.com/pub/nagendra-kumar/6/121/2a2