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Profiling advertising: is it worth the money
and the risk?




                                               1
Value of Profiling
      •    Value of the Mobile Marketing Market
      •    How Marketers want to use location
      •    What are they willing to pay for it
      •    What are examples?

Mitigating the Risks of Profiling
      •    Rule # 1: Respecting the Consumer
      •    Positive Consumer Experience using the “6 C’s”
What is the Value?




                     Source: MMA 2009
                       Source: MMA 2009
                                          3
What is the opportunity for growth?




                                      Source: MMA 2009
What is the opportunity for growth?
Why do Marketers invest in Mobile?


            Delivering the right MESSAGE:
            • To the right PERSON
            • At the right TIME
            • In the right PLACE
Where are Marketers currently spending money?

                Mobile marketing campaigns
             (mean number of campaigns among respondents with at
          least one campaign involving mobile marketing in the last year)




                                                        Source: MMA 2009
Do marketers care about Location?


Benefits to the Advertiser
   •    Collection of demographic information

   •    Campaign targeting

   •    Local Search

   •    Point-of-Sale Marketing
What are marketers willing to pay?


  Demographic information $
  -    More accuracy than other mediums


  Campaign targeting                 $$
  -    More accuracy than other mediums
  -    Location can lead to info on: Weather, Speed, etc.
  -    Predictive targeting

  Local Search                       $$$
  -    Likely to drive consumers to store

  Point-of-Sale Marketing            $$$$
  -    High value consumers
Mitigating the Risks




              Respect the Consumer
Mitigating the Risks


Benefits to the Consumer

  •     Offsets the price of the valuable
        services
  •     More targeted advertising = fewer,
        more relevant advertisements
How the 6 C’s apply to Location Based Advertising




                                   Choice
How the 6 C’s apply to Location Based Advertising




                                   Choice


                                                    Control
How the 6 C’s apply to Location Based Advertising




                                   Choice


                                                    Control




                                            Customization
How the 6 C’s apply to Location Based Advertising




                                   Choice


                                                    Control




                                            Customization
                  Consideration
How the 6 C’s apply to Location Based Advertising




                                   Choice


                                                    Control

    Constraint



                                            Customization
                  Consideration
How the 6 C’s apply to Location Based Advertising




                                   Choice
        Confidentiality

                                                    Control

    Constraint



                                            Customization
                  Consideration
Example # 1: Sponsored Listing in Local Search


 Business Model:                                 My Location:
 Cost per Click, Cost per Call                   1115 S. Broadw
                                                 * Pizza Parlor
                                                 Joe’s Pizza
 Information to Advertiser:                      Ray’s Pizza
 Quantity per Location                           Sam’s Pizza



 6 C’s
Example # 2: In Store Promotion



 Business Model: Fixed Fee,
 Revenue Sharing,
                                     50%
                                      Off
                                  All Ladies’
 Information to Advertiser:        Clothing

                                  Today only
 Unique ID of Consumer
 Time of engagement
 Store Location,

 6 C’s
Example # 3: Application Sponsorship


 Business Model:                       Text Message:
                                       1/1
 CPM, CPA, Flat Fee,
                                       Burritofiesta
                                       is having a 2
 Information to Advertiser:            for 1 burrito
                                       day!
 Subscriber Information
 Location Information over time

 6 C’s
Don’t forget



    Value of Profiling
          •    Value of the Mobile Marketing Market
          •    How Marketers want to use location
          •    What are they willing to pay for it

    Mitigating the Risks of Profiling
          •    Rule # 1: Respecting the Consumer
          •    Positive Consumer Experience using the “6 C’s”
THANK YOU




            22

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MMA - Christine Van Dillen

  • 1. Profiling advertising: is it worth the money and the risk? 1
  • 2. Value of Profiling • Value of the Mobile Marketing Market • How Marketers want to use location • What are they willing to pay for it • What are examples? Mitigating the Risks of Profiling • Rule # 1: Respecting the Consumer • Positive Consumer Experience using the “6 C’s”
  • 3. What is the Value? Source: MMA 2009 Source: MMA 2009 3
  • 4. What is the opportunity for growth? Source: MMA 2009
  • 5. What is the opportunity for growth?
  • 6. Why do Marketers invest in Mobile? Delivering the right MESSAGE: • To the right PERSON • At the right TIME • In the right PLACE
  • 7. Where are Marketers currently spending money? Mobile marketing campaigns (mean number of campaigns among respondents with at least one campaign involving mobile marketing in the last year) Source: MMA 2009
  • 8. Do marketers care about Location? Benefits to the Advertiser • Collection of demographic information • Campaign targeting • Local Search • Point-of-Sale Marketing
  • 9. What are marketers willing to pay? Demographic information $ - More accuracy than other mediums Campaign targeting $$ - More accuracy than other mediums - Location can lead to info on: Weather, Speed, etc. - Predictive targeting Local Search $$$ - Likely to drive consumers to store Point-of-Sale Marketing $$$$ - High value consumers
  • 10. Mitigating the Risks Respect the Consumer
  • 11. Mitigating the Risks Benefits to the Consumer • Offsets the price of the valuable services • More targeted advertising = fewer, more relevant advertisements
  • 12. How the 6 C’s apply to Location Based Advertising Choice
  • 13. How the 6 C’s apply to Location Based Advertising Choice Control
  • 14. How the 6 C’s apply to Location Based Advertising Choice Control Customization
  • 15. How the 6 C’s apply to Location Based Advertising Choice Control Customization Consideration
  • 16. How the 6 C’s apply to Location Based Advertising Choice Control Constraint Customization Consideration
  • 17. How the 6 C’s apply to Location Based Advertising Choice Confidentiality Control Constraint Customization Consideration
  • 18. Example # 1: Sponsored Listing in Local Search Business Model: My Location: Cost per Click, Cost per Call 1115 S. Broadw * Pizza Parlor Joe’s Pizza Information to Advertiser: Ray’s Pizza Quantity per Location Sam’s Pizza 6 C’s
  • 19. Example # 2: In Store Promotion Business Model: Fixed Fee, Revenue Sharing, 50% Off All Ladies’ Information to Advertiser: Clothing Today only Unique ID of Consumer Time of engagement Store Location, 6 C’s
  • 20. Example # 3: Application Sponsorship Business Model: Text Message: 1/1 CPM, CPA, Flat Fee, Burritofiesta is having a 2 Information to Advertiser: for 1 burrito day! Subscriber Information Location Information over time 6 C’s
  • 21. Don’t forget Value of Profiling • Value of the Mobile Marketing Market • How Marketers want to use location • What are they willing to pay for it Mitigating the Risks of Profiling • Rule # 1: Respecting the Consumer • Positive Consumer Experience using the “6 C’s”
  • 22. THANK YOU 22