A brief but informative presentation on the history of mobile marketing and how location-based services are evolving the field.

1. The evolution of mobile marketing
New trends in Location Based Services (LBS)

2. history

3. History of mobile
 1947 - Bell Labs engineers propose hexagonal cells for mobile phones in vehicles
 1973 – “1G” – predecessor of Zack Morris phone
 Motorola DynaTAC, by Dr. Martin Cooper
 1990’s – “2G” (GSM/CDMA, Modern Cell Phones)
 1991 – First SMS product in UK
 1999 – WAP version 1.1 (wireless access protocol)
 Optimized webpages made mobile browsing possible
 2001 – “3G” released in Japan
 Also 2001, NTT-DoCoMo (Japan) introduces the world's first LBS phone, before mobile
phones had GPS.
 2002 – BlackBerry modifies 2 way pager to create first email enabled phone
 iPhone day – July 11, 2008

4. Historical

5. Recent/forecasted mobile

6. Overall, there are now more mobile phones in the world than personal computers.
Mobile is KING
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Newspapers Cars Email Internet TV Mobile
Millions of users, 2009
Source: Research we found online

7. First steps in mobile marketing
 Gaming
 1997 - Snake on Nokia 6110 – Black and white
 JamDat – 1st dominant mobile gaming company, 2000
 Acquired by Electronic Arts for $650mm
 Paying for add-ons to their phone – introduced idea of a
cellphone as a full-service portal
 1st time you used your phone for transactions

8. First steps in mobile marketing (cont.)
SMS
 Was an unsaturated medium – nearly 100% of sms msgs are viewed by receiver
 7.3 billion text messages per month in June-05 (up 154% from June-04),
 15 billion (150%) in Oct 06 // 25 billion in Oct 07 in US alone
 Niche advertising agencies start to form for SMS marketing
 ipsh!, JuiceWireless, WiredSet
 Example – text “coke” to 12345 –
 Text message call to action as an opt-in
0
50
100
150
200
250
US Internet Users US Text Message Subscribers
Source: To Mobile or Not to Mobile: Digital Strategies for Marketers - Nielsen; Internet eMarketer, 2009
Millions of users, 2009

9. Mobile banners
One in five phones in the US are currently smartphones
The mobile ad market today is $420mm
Direct campaigns
 Running direct deals with advertisers who want exposure to mobile
 For example, Coors:
Emergence of mobile ad networks
 Ad networks like Quattro, Millennial, Admob, JumpTap, ThirdScreen
 AdMob was acquired by Google last week for $750mm, igniting the dialogue
about mobile advertising
Source: AdWeek – “Mobile ads – Wait until next year”

10. Okay, so where are we?
 Massive mobile audience is clear
 1% Click-through rate on mobile leaves room for
improvement
 Devices becoming more and more capable
 People are using their phones more
 They are doing more ‘stuff’ on their phones
 “The phone is the new swiss army knife” – CBS
News
 Now - Location

11. using location to reach your audience

12. Location
GPS / Cell ID / carrier detection / manual
Why is location important to mobile marketing?
 Mobile is a medium that captures an audience on the go
 People tend to use their phones to get stuff done
 What do you want your consumer to get done?
How LBS is used:
 Where am I?
 Where are my friends?
 What is around me?
 What can I do with it?

13. Evolution of Location Based Services
(LBS)
 Mobile has been the catalyst that made LBS relevant
 1st step: City level local content – think a NYC city guide
 This happened first on web and then on mobile
 Vindigo for Palm
 Then: hyper-local emerged – think Google Maps
 Nearby determines relevance
 Organized by distance away from you
 For example - Starbucks on Google Maps:

14. Next phase – its all about ME
 Always-on services harness the power of in-app location (like GPS)
 Track me, help me find my friends
 Loopt, Google Latitude
 More about me – lifestreaming
 Using LBS to document/publish my life (photos, notes, status updates)
 Brightkite, Whrrl

15. Latest and greatest --
beyond life-streaming
 Appealing to a mass market
 Games and incentives
 Competition
 Foursquare
 Gowalla
 Aggregating LBS content
 Multiple sources = context
 Big picture emerges
 Buzzd

16. Future trends in mobile
 More powerful means of engagement:
 Push notifications (for nearby offers, friend check-ins)
 Rich media ads (videos, downloadables, etc)
 Monetization: as context and targeting becomes richer, monetization is becoming
increasingly long tail - how do you bring in the advertisers themselves? Self-serve like
Facebook?
 Need to be smarter too - to be predictive, proximity and demographic data isn't the only thing
that makes an ad good for a user - will need to be personalized/contextualized
 Eg: PinchMedia uses facebook connect
 With more and more apps - mindshare gets diluted. Future isn't about picking a winner.
Winners will pick a specialty and diversify offerings within it:
 Inventors/Publishers of apps (UI/mktg/functionality) / Monetization of these interfaces
 Application Developers - coding apps
 Backend B2B LBS technology like Skyhook

17. mountains to climb

18. how do you keep it cool?
 As marketers have more and more tools for targeting their audience, how do they keep it
from being:
 A) Creepy
 B) Oversaturated
 ie: Microsoft Bing’s ‘search overload’ commercials
 How much intrusion is ok
 C) Static
 Needs to be new!
 How can you make it more relevant?
 More and more, users reject content that seems random
 How do you balance mass market economics and the super-contextual long tail?

19. problems with discovery
 The number of apps is increasing exponentially – what can you do to stand out? Who controls the
eyeballs? What is your hook?
 Facebook’s iPhone app developer (Joe Hewett) blasted Apple last week:
 “My decision to stop iPhone development has had everything to do with Apple’s policies. I respect their right to manage
their platform however they want, however I am philosophically opposed to the existence of their review process. … The
web is still unrestricted and free, and so I am returning to my roots as a web developer. … I would like to be able to say
that I helped to make the web the best mobile platform available, rather than being part of the transition to a world where
every developer must go through a middleman to get their software in the hands of users.”
 Carrier distribution method is painful and slow moving
 Carriers have a stranglehold on location and the discovery of content.
 They also have strict advertising and content guidelines
 Bandwidth on networks
 Next steps in LBS discovery:
 AppStore genius – recommendation engine for apps
 Android – open development platform – open discovery channels
 Cross promotional partners

20. privacy
 App developers have a responsibility to be fully transparent with their users:
 Where data is published
 What kind of data is published
 LBS developers have an obligation to help delete your digital footprint if requested
 Facebook recently had a big PR problem around deleting acocunts
 Users want the option of a full delete
 Location Based Services could potentially redistribute a person’s location out to a wide
variety of sources
 If a user posts their whereabouts, and later changes their mind, they need to be
able to clean the digital paper trail
 When you post your location publicly – what else are you posting?
 Mashups of data could potentially predict a lot more about your location than the sum of
the parts - what ethically must we do to protect against this?

21. Thank you!!
glen nigel straub
marketing
glen@buzzd.com
phone: 646.723.4657
michael muse
business development
michael@buzzd.com
Phone: 646.484.8599
text BUZZD to 28993 to get...
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