Transcript AdAgeInsights

Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
GPS capabilities are driving growth in LBS
The proportion of GPS-enabled devices in the market grew 17% year-on-year; LBS use grew by 40%
Percent of U.S. mobile market
FEATURE PHONE
69.1%
59.5%
28.9%
20.7%
GPS-enabled devices
Location-based services*
*Includes weather, maps and any “location aware” type of content as location-based. Three-month average ending September 2010. Country:
U.S., N=32,044. Source: comScore MobiLens
SMARTPHONE
Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
Nielsen: Smartphones will be a majority in the U.S. by Q2 2012
Projected smartphone penetration
SMARTPHONE
FEATURE PHONE
90%
87%
86%
84%
83%
81%
79%
78%
75%
72%
69%
66%
63%
61%
59%
55%
55%
50%
45%
45%
41%
10%
Q2
2008
13%
14%
16%
Q3
2008
Q4
2008
Q1
2009
17%
Q2
2009
19%
21%
22%
Q3
2009
Q4
2009
Q1
2010
Based on survey data and projections. Source: Nielsen
25%
Q2
2010
28%
Q3
2010
31%
Q4
2010
34%
Q1
2011
39%
37%
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
Smartphones change everything … including LBS usage
U.S. mobile media usage penetration – Q3 2010
61%
Text Messaging/SMS
17%
Inter net
75%
15%
E-mail
75%
9%
App DLs
61%
33%
Pictur e Messaging
Location-based ser vices-GPS
Game DLs
Video-Mobile TV
59%
7%
50%
7%
37%
5%
27%
15%
Ringtone DLs
26%
10%
Wallpaper -Scr eensaver s DLs
Mobile Commer ce
Source: Nielsen
85%
25%
FEATURE PHONE OWNERS
SMARTPHONE OWNERS
5%
22%
Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
Overall, 82% of mobile phone owners have used their phones in stores
Here’s what they do and who does it most
Using Mobile Phone While In Store
Overall
Who is doing this the most?
Been on the phone and asked the person you were
talking to about a product
36%
Females 18-34 (50%)
Used your mobile phone to take a picture of an item
to send to someone
14%
Smartphone owners (27%); 18-34 (21%)
Used your mobile phone to search for an item
to find reviews
8%
Males 25-34 (23%); Smartphone owners (19%)
Used your mobile phone to search for an item
to find better prices
7%
Males 25-34 (20%); Smartphone owners (19%)
Looked for a coupon on your mobile phone
6%
Males 25-34 (21%); Smartphone owners (16%);
Females 18-24 (14%)
Used a coupon that was on your mobile phone
already
6%
Males 25-34 (17%); Smartphone owners (14%)
Used your mobile phone to find a recipe
6%
Smartphone owners (16%); Males 25-34 (13%)
Made a purchase using your mobile phone
5%
Smartphone owners (13%); Males 25-34 (12%)
Used your mobile phone to search for an item to
compare nutritional information
5%
Males 25-34 (16%); Males 18-24 (12%);
Smartphone owners (12%)
Scanned a barcode with your mobile phone
4%
Smartphone owners (10%)
Source: Insight Express, Digital Consumer Portrait, September 2010
Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
LBS: Funding versus downloads per projected active user
Venture capital dollars raised per user as of Jan. 17, 2011. When will LBS scale? Numbers are low now.
Company
VC Funding
Raised
Mobile Apps
Downloaded
Globally
Active Users
(35% Active
User Base)
Active Users
(80/20 Rule)
Dollars Raised per
Active User
Facebook
Places
Not broken out
but $1.3B for
Facebook
200,000,000
N/A
N/A
$123.81
Foursquare
$21,400,000
5,000,000
1,750,000
1,000,000
$12.23
Gowalla
$10,400,000
600,000
210,000
120,000
$49.52
Loopt
$17,600,000
4,000,000
1,400,000
800,000
$12.57
SCVGR
$19,800,000
700,000
245,000
140,000
$80.81
Booyah
(My Town)
$29,500,000
3,100,000
1,085,000
620,000
$27.19
Waze
$37,000,000
2,300,000
770,000
440,000
$48.05
Source: Ad Age Insights based on company data and press release of the Jan. 3, 2011
Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
LBS is still an early adopter activity with greater interest from men
Percent of respondents who say “extremely/very important” activity
40%
39%
42%
Text message
25%
30%
Access the internet
20%
14%
18%
Search for a retail location
9%
12%
15%
Access local information/activities via an app
10%
11%
14%
Access social networks*
9%
7%
9%
Make a purchase
TOTAL
5%
MALE
5%
7%
Location-based social networking**
3%
Base: Extremely/very important. Source: Placecast: The Alert Shopper II, Harris Poll, July 2010
*Twitter, Facebook, MySpace ** checking in on Foursquare
FEMALE
Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
4% of the U.S. population uses LBS services
Pew Research: LBS activity skews younger, more male, more urban
All internet users
Men
Women
4%
6%*
3%
All internet users
White, non-Hispanic
3%
Black, non-Hispanic
5%
Hispanic (English and Spanish speaking)
10%*
Age
18-29
8%*
30-49
4%
50-64
2%
65+
1%
Household income
Less than $30,000/year
3%
$30,000-$49,000
6%
$50,000-$74,000
6%
$75,000+
4%
Educational income
Less than high school
5%
High school
3%
Some collage
4%
College+
5%
*indicates statistically significant difference. N=3,001 adult internet users ages 18 and older, including 1,000 cell phone interviews. Interviews were conducted in English and
Spanish. Margin of error is +/- 3% Source: The Pew Research Center’s Internet and American Life Project, Aug. 9-Sept. 13, 2010 Health Tracking Survey
Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
The Mars and Venus of Mobile Marketing
Woman more interested in groceries, beauty, and fashion: men in electronics. Almost equal interest in restaurants,
fast food, travel, health
56%
Grocery coupons and promotions
61%
National restaurant chain promotions
54%
Entertainment products and availability
14%
Beauty and fashion
62%
51%
33%
Coffee and beverage promotions
Electronics product offers and promotions
40%
35%
36%
35%
Travel services, special rates and amenities
49%
24%
25%
19%
23%
Health-related offers including gym services
Convenience store products
12%
Home furnishings
20%
13%
18%
24%
17%
Infant and child-related products/services/events
Bar or nightclub offers and promotions
Sporting goods and equipment
None
67%
48%
51%
Fast food menu items and promotions
Other
80%
16%
5%
4%
3%
4%
MALE
30%
FEMALE
Source: Placecast: The Alert Shopper II, Harris Poll, July 2010
Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
The LBS Landscape
Institute of Mobile Markets Research chart of LBS companies by category.
Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
Is Two Buck Chuck driving Trader Joe’s weekend sales?
SuperData Research uses Foursquare check-in data to develop competitive store analysis
Whole Foods excels on
Tuesdays, when overall
traffic is slow
As overall
traffic in the
area peaks on
Saturdays
But falls
behind
during the
weekend
19.2%
17.2%
15.5%
16.4%
9%
Monday
TRADER JOE’S ON 142 EAST 14 STREET
WHOLEFOODS ON UNION SQUARE
HYPER-LOCAL MARKET AREA
8.8%
Tuesday
Source: SuperData Research
Wednesday
32.9%
23.4%
19.3%
15%
14.1%
10.8%
10.3%
8.5%
And is followed by
strong Sunday for
Trader Joe’s
17.1%
15.4%
13%
12.1%
8.6%
7.8%
5.6%
Thur sday
Fr iday
Satur day
Sunday
Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
Location can improve relevance
72% viewed location basis as positive due to increased relevance.
Q: What do you think about the fact that messages were sent based on location?
Very positive: It made them
much more useful/relevant
35%
Positive: I like discounts and they
were more likely to be appealing
37%
Somewhat positive: sometimes made
them more useful, sometimes not
13%
Neutral: Didn’t make a difference
9%
Neutral: I didn’t realize messages
were based on my location
Negative: It seemed intrusive
5%
2%
Source:Placecast: ShopAlerts Pilot Studies February 2010; Base 171
Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
Who’s got reach in location related mobile content?
Content where consumers enter ZIP codes to get customized information trumps services consumers check into
Percent of mobile audiences that accessed in September 2010 (via apps and WAP)
8.3%
2.2%
1.3%
0.7%
Th e
Weath er
Ch an n el
Fan dan go Moviefon e
YP.com
0.6%
0.6%
Fou rsqu are Open Table
0.5%
Urban
Spoon
Three-month average ending September 2010. Country: US, N=32,044 Source: comScore Mobilens
0.5%
Zagat
0.4%
0.3%
0.2%
0.1%
Google
Yelp
Loopt
Gowalla
Mobile Marketing: LBS
What Marketers Need to Know About Location Based
Services
Reach of LBS apps
Percent of mobile audience that accessed location-based services in September 2010 through applications
10.5%
1.2%
The Weather
Channel
Four squar e
0.5%
0.5%
Ulocate
Loopt
Three-month average ending September 2010 Country: US, N=32,044. Source: comScore MobiLens
0.2%
0.2%
0.1%
Gowalla
Whitepages.com
Super pages