M for Mobile is proud to bring you the updated
and latest stats and facts you need to know for 2012
and beyond, for the mobile, location and navigation
industry, in association with the launch of the
Location Business Summit USA.
1. Mobile Fact Pack
The Hottest Predictions for 2012
4th ANNUAL
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October 16-17, San Jose, 2012
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and highlight services that can generate significant revenue. and latest stats and facts you need to know for 2012
and beyond, for the mobile, location and navigation
The 4th annual Location business Summit USA is the biggest meeting industry, in association with the launch of the
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location industry.
2. Mobile Fact Pack The Hottest Predictions for 2012
Mobile has both caused and
enabled an irrevocable change
in consumer behaviour
Source: Mobile finds its USP in contextual relevance – Paul Berney, CMO & Managing Director EMAE, MMA
3. Mobile Fact Pack The Hottest Predictions for 2012
Every interaction via mobile raises our
expectations
Digital Natives/Generation Y/
Millennials/Connected Consumers
have higher expectations
Source: Mobile finds its USP in contextual relevance – Paul Berney, CMO & Managing Director EMAE, MMA
4. Mobile Fact Pack The Hottest Predictions for 2012
The age of the Age of the consumer
Empowered buyers
customer! demand a new level of
customer obsession
Contenders include
Facebook, IBM, Best
2010-? Buy and Apple
Sources of Age of information
dominance Connected PCs and supply
chains mean those who control
information flow dominate
1990-2010
Age of distribution Amazon.com, Google, Intuit, MBNA
Global connections and transportation
systems make distribution key
Age of manufacturing 1960-1990
Mass manufacturing makes Walmart, Toyota, UPS, CSX
industrial powerhouses successful
Successful companies
1900-1960
Ford, RCA, GE, Boeing, P&G, Sony
Source: June 6 2011, ‘Competitive Strategy In The Age Of The Customer” Forrester report
5. Mobile Fact Pack The Hottest Predictions for 2012
Contextual Relevance is the USP
of mobile when dealing with
the digital generation
Source: Mobile finds its USP in contextual relevance – Paul Berney, CMO & Managing Director EMAE, MMA
6. Mobile Fact Pack The Hottest Predictions for 2012
Mobile is changing our
behaviour at every stage of the
customer lifecycle
Source: Mobile finds its USP in contextual relevance – Paul Berney, CMO & Managing Director EMAE, MMA
7. Mobile Fact Pack The Hottest Predictions for 2012
Consumers don’t need (want) marketing
Source: Strange PR
8. Mobile Fact Pack The Hottest Predictions for 2012
Preferred source of product & service information
Consumer ratings 63%
Consumer reviews 62%
Company’s website 50%
Call centre 47%
Email 45%
Video clip 34%
Live chat 30%
Company’s Facebook 15%
Mobile App 9%
Social media sources
Online advertisement 8%
Company’s Twitter 7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: Nielsen
Source: June 6 2011, ‘Competitive Strategy In The Age Of The Customer” Forrester report
9. Mobile Fact Pack The Hottest Predictions for 2012
31%
researched a
purchase on
their device
before buying
in-store
Source: Jiwire
10. Mobile Fact Pack The Hottest Predictions for 2012
Shopping...
Which one of the following have you ever used your mobile phone for?
Base 13,869 European
To check store 22% online adults who own
opening hours 8% mobile phones and
986 European frequent
To locate a nearby store to 19% online buyers who own
purchase a specific product 7% mobile phones (multiple
responses accepted).
To compare physical store prices with 15%
online prices, when shopping in a store 4%
To check in-store 14%
availability of a product 4%
To read customer 13%
reviews of a product 3%
To check on the 12%
status of an order 6% Social media sources
To look up online product information 12% Online Europeans
while shopping in a store 4%
0% 10% 20% 30%
Source: European Technographics® Retail, customer experience and Travel online survey, Q3 2010
11. Mobile Fact Pack The Hottest Predictions for 2012
Mobile amplifies the power of
customer review sites
Source: Mobile finds its USP in contextual relevance – Paul Berney, CMO & Managing Director EMAE, MMA
12. Mobile Fact Pack The Hottest Predictions for 2012
34% of US smartphone
owners said they had abandoned
a purchase in-store after
seeing a negative review
on their mobile
Source: Mobile finds its USP in contextual relevance – Paul Berney, CMO & Managing Director EMAE, MMA
13. Mobile Fact Pack The Hottest Predictions for 2012
Mobile connects fans in
multiple locations
Source: Mobile finds its USP in contextual relevance – Paul Berney, CMO & Managing Director EMAE, MMA
14. Mobile Fact Pack The Hottest Predictions for 2012
Mobile changes the
way we interact with
our environment...
...and influences our
decisions based on
that location
Source: Mobile finds its USP in contextual relevance – Paul Berney, CMO & Managing Director EMAE, MMA
15. Mobile Fact Pack The Hottest Predictions for 2012
Customer journeys are not linear...
Active evaluation
Information gathering, shopping
Loyalty loop
Initial
consideration
set
Moment of
Trigger
purchase
Postpurchase
experience
Ongoing exposure
Source: Mobile finds its USP in contextual relevance – Paul Berney, CMO & Managing Director EMAE, MMA
16. Mobile Fact Pack The Hottest Predictions for 2012
The mobile
consumer expects:
Convenience
Multi-channel
Real time
Dialogue
Engagement
Control
Source: Mobile finds its USP in contextual relevance – Paul Berney, CMO & Managing Director EMAE, MMA
17. Mobile Fact Pack The Hottest Predictions for 2012
Consumers are
mobile Your
brand must
follow them
Source: Mobile finds its USP in contextual relevance – Paul Berney, CMO & Managing Director EMAE, MMA
18. Mobile Fact Pack The Hottest Predictions for 2012
70-80% of business data
has a geographic content
Location, Location, Location – Vikas Arora, Solutions Specialist EMEA, Microsoft
19. Mobile Fact Pack The Hottest Predictions for 2012
The understanding of location enables:
More relevant search results
An opportunity for location-based advertisement
and new business ideas
An additional dimension to search for and
discover information
Deep insights in business data
A common operational picture...
...and maps are the canvas to visualise this knowledge
Location, Location, Location – Vikas Arora, Solutions Specialist EMEA, Microsoft
20. Mobile Fact Pack The Hottest Predictions for 2012
The smartphone is changing iPhone 4S
the time scale of location iPhone 4
A new positioning generation
every 10 months iPhone 3GS
iPhone 3G Gionass
iPhone 2G Gyroscope Gyroscope
Compass Compass Compass
A-GPS A-GPS A-GPS A-GPS
Celluar tower Celluar tower Celluar tower Celluar tower Celluar tower
triangulation triangulation triangulation triangulation triangulation
(Google) (Google) (Google) (Google) (Google)
WiFi positioning WiFi positioning WiFi positioning WiFi positioning WiFi positioning
3-axis 3-axis 3-axis 3-axis 3-axis
accelerometer accelerometer accelerometer accelerometer accelerometer
June 2007 October 2011
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
21. Mobile Fact Pack The Hottest Predictions for 2012
Global smartphone sales (millions)
1,200m
1,000m
800m
Millions
600m
400m
200m
0m
2010 2011 2012 2013 2014 2015 2016
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
22. Mobile Fact Pack The Hottest Predictions for 2012
The smartphone is
becoming our personal server
to the geo-located world
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
23. Mobile Fact Pack The Hottest Predictions for 2012
Location-enabled phones:
Smartphones now exceed half of total phone sales in
Europe and North America
Location-enabled phone and smartphone are
becoming synonyms
Number of location-enabled phones sold will again
double within five years thanks to a take-off in China
and India
Single purpose devices such as pocket cameras and
PNDs need to find a new positioning
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
24. Mobile Fact Pack The Hottest Predictions for 2012
The smartphone can threaten single-purpose
devices such as Octo Telematics’ Clear Box for
Pay As You Drive insurance
Source: PTOLEMUS Insurance Telematics Study
Source: Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
25. Mobile Fact Pack The Hottest Predictions for 2012
LBA is the next wave ...and will overcome
Although discussed for many years
the main challenges:
only now making an appearance User privacy must be respected
Hype turns to reality and € Opt-in and permissions must be clear
The next big step after SMS Contact strategy (frequency of
Today, location location use is still messages) needs to be well-judged,
fairly primitive and limited revenues and varies per segments
Location has to be integrated Third-party interfaces to advertising
intelligently with other targeting agencies need building
criteria (age, interests, gender, etc...) Ultimately real-time auctioning
Proximity marketing when user platforms for mobile inventory will
near POS works well, e.g. O2 UK exist
Priority Moments offer service
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
26. Mobile Fact Pack The Hottest Predictions for 2012
The four chimneys are pushing all
players to integrate vertically
Network Nokia Siemens
infrastructure
A-GPS supl.google.com supl.nokia.com
WPS Apple Google Maps Nokia/Navteq
Symbian +
OS IOS Android Windows Phone
Maemo + Moblin
Browser Safari Chrome / Webkit Novarra Internet Explorer
Device iPhone Motorola Nokia
Search engine Google Search Bing
Map PlaceBase Google Maps Nokia/Navteq Bing Maps
Panoramio/ Microsoft
Local content Nokia/Navteq
Zagat Advertising
Advertising iAd (Quattro Microsoft
AdMob Nokia/Navteq
platform Wireless) Advertising
Android Microsoft
App store App Store DVI Store
Marketplace MarketPlace
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
27. Mobile Fact Pack The Hottest Predictions for 2012
Major players are all
attempting to integrate the complete
end-to-end location solution
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
28. Mobile Fact Pack The Hottest Predictions for 2012
But ecosystems are also a
highly efficient way of building a
complete solution
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
29. Mobile Fact Pack The Hottest Predictions for 2012
The OS sponsor focuses more on
creating the right enablers and SDK
No need to develop all new services,
third party developers do it
Number of services/applications
increases dramatically
Competition becomes more difficult
because it is more complex to fight
an ecosystem
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
30. Mobile Fact Pack The Hottest Predictions for 2012
GPS satellite positioning monopoly is
ending, as new constellations emerge
Glonass Other GNSS
Reached full operational capacity Galileo will have launched first four
(24 satellites) in December 2011 satellites by year end
Faster TTFF Beidou achieves operational
Dual-use most beneficial in urban positioning capacity (only regional
canyons coverage)
Somewhat superior service in
Northern latitudes
Different standards (FDMA vs.
CDMA) has slowed adoption but
now most chipset vendors support it
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
31. Mobile Fact Pack The Hottest Predictions for 2012
The mass market for indoor positioning is maturing,
setting off a transformation of our lives in the near future
Market for indoor positioning Indoor technologies & maps
We spend 80% of our time indoors,
are emerging
IPS is the future: Criteria for success: cheap, scalable
• Shopping malls, airports and offices and accurate
– to find specific goods or people Dominant solution will be a
• Airports and hospitals – security combination of technologies, notably
applications including theft, rescue WiFi, Cell-ID, MEMS (gyroscopes,
and exit accelerometers)
• Trains and subways, for location-
based content towards travellers Solution will be software-based (Pole
Star, Insiteo) or chipset-based (CSR)
Indoor is where the business takes
place: shopping, contracts signed, etc. Maps are also coming from Micello,
Navteq, Microsoft and Google
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
32. Mobile Fact Pack The Hottest Predictions for 2012
Cell-ID has the potential to strike back
The performance of positioning technologies compared
High 100
75
Performance
50
25 Cell-ID
GNSS
WiFi
IP address
Low 0
Accuracy Low cost Coverage Presence Automatic
Ecosystem Reliability Latency Energy Opt-in
Comparison factors
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
33. Mobile Fact Pack The Hottest Predictions for 2012
All these companies will want to know your car’s location
Connected car services and players
Resource Navigation
& search vendors Car OEMs
management
Handset
vendors
Resource Social Multimodel Traffic &
Maintenance management networking other services eCall
navigation
firms
Car Car LBA/ Stolen Voice & Mobile
maintenance sharing LBM vehicle messaging
recovery operators
Power suppliers Energy PAYD/ Road user
management Finance PHYD bCall charging
Toiling
operators
Banks & Assistance
Oil companies Insurers
leasing firms providers
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
34. Mobile Fact Pack The Hottest Predictions for 2012
At last, geo-connectivity is reaching
vehicles in large volumes
Number of connected vehicles Numerous factors are helping
in use in Europe (in millions) The take-off of low cost embedded
50 navigation systems such as Renault’s
Other (SVR, speed camera warning systems)
Aftermarket systems/Fleet management
Varinat TomTom
40
Aftermarket systems/RJC
Aftermarket systems/PAYD insurance
The eCall project in the EU, which is
Aftermarket systems/Connected PNDs scheduled to be mandated in all new
eCalls
30 Embedded navigation systems type-approved cars and LCVs by end 2015
The ERA Glonass project in Russia,
which will apply the same constraint to
20 all motor vehicles in the Russian market
by end 2013
10 The development of national road
charging schemes
0 The take-off of PAYD insurance
2010 2011 2012 2013 2014 aftermarket systems
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
35. Mobile Fact Pack The Hottest Predictions for 2012
Navigation and local search are becoming one and the
same business
Google and Nokia have destroyed the business case for navigation-only services
• Google present in two biggest mobile OS platforms, IOS and Android
• Google represents vast majority of local/map searches
• PND sales are falling
• Car last platform where paid navigation is dominant model
Navigation flies with local search (pull)
• Hence TomTom’s acquisition of iLocal
• Challenging to design a large scale freemium model where both free premium
levels work
Next step will be LBA (push)
• Knowing where your are where you are going to suggest where to purchase
• Google best placed... Unless Apple develops own navigation
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
36. Mobile Fact Pack The Hottest Predictions for 2012
We expect the eCall OBU to be used as a
multi-service box for the connected car
The 2010 Intelligent Transport Systems (ITS) Directive creates the
framework for a European-wide implementation of eCall
The European Commission aims at mandating eCall for all new
type-approved vehicles by end 2015
Certan OEMs have already deployed eCall on most models,
notably PSA, Volvo and BMW
Daimler just announced that it will deploy it on almost all
models from June
We expect the eCall box to be used as the gateway to connected
car services (connected navigation, insurance, stolen vehicle
recovery, remote diagnostics, etc.)
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
37. Mobile Fact Pack The Hottest Predictions for 2012
We expect the number of insurance telematics
vehicles to be multiplied by 50 by 2020
PAYD trials & launches globally PAYD has reached its tipping point
USA Since 1997 (Progressive’ first trial), 94 trials
UK worldwide and 54 commercial launches
Italy Success stories in multiple countries,
France notably Italy (Unipol), Spain (Mapfre),
France (Groupama), the UK (Insure the
South Africa
box), Austria (Uniqa) and the US
Germany
(Progressive)
Ireland
Overall, we estimate PAYD-equiped
Belgium
vehicles at over two million worldwide
Spain
Other
0 5 10 15 20 25 30
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
38. Mobile Fact Pack The Hottest Predictions for 2012
What are the five current major challenges to
geolocate the 16 billion objects in Europe?
Power consumption for a large number of objects from
consumables to home keys
Size and weight for low value consumables such as food and
drinks
Cost e.g. for low-end consumer electronics such as watches
Industries that are not used to integrate electronic components
into their products e.g. handbags or car keys; or that do not have
the location culture (digital cameras, surveillance cameras)
Ecosystem road blocks e.g. for credit cards or containers
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
39. Mobile Fact Pack The Hottest Predictions for 2012
The location game is not over, it is starting
The speed cycles will be given by the smartphone
There is value in location: by combining it with other elements
into an end-to-end experience
In our view, the location industry needs to revisit the obvious
and define smart ecosystem strategies rather than just throwing
up products to its customers!
Our upcoming Global Location Study will provide the
technology and market insights
Global Evolution of Location – Frederic Bruneteau, CEO, Ptolemus
40. Mobile Fact Pack The Hottest Predictions for 2012
Typical Indoor environments attenuate GPS beyond
detection for commercially available receivers
GPS
Attenuation
Level
40-45 dB
Cannot detect indoors
30-31 dB
Advertised aided
commercial 25 dB
C(A) acquisition
threshold
(A-GPS cell
phones) 12-14 dB
Advertised unaided
commercial C(A) Wooden Brick- 2 level Small Typical Indoor Dense urban
acquisition threshold building faced parking commercial North Arena/ environment
(A-GPS cell phones) masonry structure building America Mall
residence
Location-as-a-Service (LaaS): a Platform for Location Services – Steve Gray, CTO, CSR
41. Mobile Fact Pack The Hottest Predictions for 2012
Positioning using GPS – How it works
Low cost GPS engine enables
location in Smartphones
24 satellites orbiting at
altitude of 12,000 miles
2D position requires
three satellites
Location-as-a-Service (LaaS): a Platform for Location Services – Steve Gray, CTO, CSR
42. Mobile Fact Pack The Hottest Predictions for 2012
Corporate WiFi is deployed for Existing WiFi and cellular signals are
broadband and indoor location surveyed and logged in a database
Angle-of-arrival, time-of-arrival or ‘Finger prints’ of RF signals are
received signal strength is used to recorded in a database
calculate position Position is determined by
Position server records location interpolating finger print data
dynamically
Location-as-a-Service (LaaS): a Platform for Location Services – Steve Gray, CTO, CSR
43. Mobile Fact Pack The Hottest Predictions for 2012
Three LBS markets – Enterprise, Asset Tracking and Consumer
Enterprise/gov segment Asset tracking segment Consumer LBS segment
Targeted at government and large This segment is targeted at fixed This segment is targeted at
enterprises where there is a need (Vending sys, office/lab/medical consumers at Big-Box stores and
for content access control, campus equipment, etc) and mobile (goods Malls. The technology will be used
maps/WiFi tiles restriction (for in transit, fleet, people, etc.) asset to guide shoppers to the right
employees only), military-grade tracking in large enterprises and departments and Product areas.
geofencing, etc. healthcare institutions. Provide retail-specific coupons and
specials, etc. @20B advertising
Market trends and attributes: BYOD, Market trends and attributes: low
business.
handheld location policies, MDM, cost (<$25) mobile, MRM/M2M
Geofenced security (military grade). apps with outdoor-indoor tracking
Location context Apps
Market trends / attributes. Focucus
on indoor commercial retail with
Deferentiator:
three-metour
Deferentiator: • Location accuracy
• Indoor positioning and locations • Indoor positioning capability Deferentiator:
• Agile middleware applications • Server Location Aiding (A-GNSS, • Indoor navigation
• Boeing Irridium radio E-ECID OTDOA • SLA
Location-as-a-Service (LaaS): a Platform for Location Services – Steve Gray, CTO, CSR
44. Mobile Fact Pack The Hottest Predictions for 2012
Total LaaS market (volume of units)
1,000,000,000
900,000,000
800,000,000 18% CAGR
700,000,000
600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
0
2013 2014 2015 2016 2017
Consumer LBS Total Market 209,024,554 246,313,077 283,601,600 352,684,041 438,594,256
Mobile Enterprise Total Market 129,535,398 130,800,752 132,078,759 133,369,547 134,673,243
Asset Tracking M2M Total Market 135,000,000 168,750,000 210,937,500 282,000,000 352,500,000
Location-as-a-Service (LaaS): a Platform for Location Services – Steve Gray, CTO, CSR
45. Mobile Fact Pack The Hottest Predictions for 2012
Location innovations are making the world a smaller place
Indoor location will dramatically change the marketplace
Cloud and web services enable new business models
New multibillion € businesses will evolve leveraging new
location technologies
Location-as-a-Service (LaaS): a Platform for Location Services – Steve Gray, CTO, CSR
46. Mobile Fact Pack The Hottest Predictions for 2012
01 LBS
A location-based service (LBS) is an information
and entertainment service, accessible with
mobile devices through the mobile network and
utilizing the ability to make use of the
geographical position of the mobile device.
Wikipedia
Location Based Advertising: What does it mean to brands and do the agencies care? – Asif Khan, Founder, LBMA
47. Mobile Fact Pack The Hottest Predictions for 2012
02 LBM
Location-based marketing (LBM) bridges the gap
between all forms of marketing media. Inclusive
of social media, internet, out-of-home and real
life interaction. It is about the integration of
media to influence people in specific places.
The LBMA
Location Based Advertising: What does it mean to brands and do the agencies care? – Asif Khan, Founder, LBMA
48. Mobile Fact Pack The Hottest Predictions for 2012
Smartphone ownership
50
46% 46%
40 42%
32%
30 31%
30%
20 21%
21%
10
0
Global North Europe Developed Emerging Latin MENA Sub-
America Asia Asia America Saharan
Africa
Source: TNS/Kanter Group
49. Mobile Fact Pack The Hottest Predictions for 2012
Why are people using location-based services?
50
46%
40
30
25%
20 22%
19%
13%
10
0
Navigation Finding friends Finding Checking public For a deal or
nearby restaurants transport specific offer
Source: TNS/Kanter Group
50. Mobile Fact Pack The Hottest Predictions for 2012
How much interest is there in using
location-based services?
People not
currently using
LBS and not
interested 38%
62% People not
currently
using LBS, but
interested
Source: TNS/Kanter Group
51. Mobile Fact Pack The Hottest Predictions for 2012
Preference for mobile offers delivery
% of respondents, January 2012
60
60% 60%
US
UK
50
Germany 50%
France 49%
40
38%
30 32%
26% 26% 26%
20 21%
18%
16% 16% 13%
10 11% 10% 12% 12%
8% 4% 9% 4%
2% 1%
0
Voicemail Text Mobile web Mobile App Opt not to Other
(email, etc.) receive them on
mobile
Location Based Advertising: What does it mean to brands and do the agencies care? – Asif Khan, Founder, LBMA
52. Mobile Fact Pack The Hottest Predictions for 2012
What are brands trying to achieve?
CONNECT
Interact and engage an audience
Tap into user-generated content
Excite and delight their audiences
Drive permission-based relationships
COLLECT
Acquire key data including demographics,
interests and location-based data
Drive to web for online engagement
$
CONVERT
Drive to store for coupons and offers
Drive to experience at a location
Location Based Advertising: What does it mean to brands and do the agencies care? – Asif Khan, Founder, LBMA
53. Mobile Fact Pack The Hottest Predictions for 2012
Augmented reality in LBS
% of respondents, January 2012
3500
Mobile, in-App advertising
3000 Mobile, in-App purchase
Mobile, paid applications
2500 Handheld AR games
US$ Millions
2000
1500
1000
500
0
2010 2011 2012 2013 2014 2015 2016
ABI Research Mobile Augmented Reality, Thomas Alt, CEO, Metaio
54. Mobile Fact Pack The Hottest Predictions for 2012
Smartphone adoption will lead to massive
growth of the Mobile AR market
Consumer adoption of Augmented Reality will
be based on individual but solid use cases
Revenues for Mobile AR will be generated from
• In-App advertisement
• AR games
• In-App purchases
• Paid applications
Revenues will grow from $21 million
in 2010 to $3 billion in 2016
Source: Augmented reality in LBS – Thomas Alt, CEO, Metaio
55. Mobile Fact Pack The Hottest Predictions for 2012
By 2014, AR will be on
every Smartphone
Source: XXX