Technology Overview: MMA location technology roadmap

Mobile Marketing AssociationMobile Marketing Association The "Why" of Location‐enabled Mobile MarketingOctober 18, 2011‐ Sponsored by Locaid

The "Why" of Location‐enabled Mobile Marketing: Understanding Location as the Key for

Creating Customer Value and Engagement

October 18, 2011

MMA EDUCATIONAL SERIES

Sponsored by:


2 Copyright © 2011, LOC‐AID Technologies. Patents pending, all rights reserved. Confidential ‐ Do Not Copy or Distribute


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Enteringyour store?

At theoffice?

At home?

Going tothe mall?

Copyright © 2011, LOC‐AID Technologies. Patents pending, all rights reserved. Confidential ‐ Do Not Copy or Distribute 4


“50% of mobile users served location-based messaging take action”

– Mobile Marketing Association &Luth Research, 2010

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Standalone GPS

Wi‐fi/IP

Carrier‐based/Cell ID

Carrier‐based/A‐GPS

Other

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285 million 50 million

NO Download App Download Required

NO – All phones Platform specific (iPhone, Android, Blackberry, Windows, etc.)

0 ‐ 10 seconds 15 – 30 seconds

5 – 500 meters 5 ‐100 meters

YES NO

Better Worse

None Severe

Network Secure App Allowed(Spoofing Permitted)

App‐BasedCarrier‐Based

Data IntegrityData Integrity

US Addressable SubsUS Addressable Subs

Adoption HurdleAdoption Hurdle

Platform‐specific AppPlatform‐specific App

SpeedSpeed

AccuracyAccuracy

Indoor CoverageIndoor Coverage

Downtown CoverageDowntown Coverage

Battery DrainBattery Drain



http://InstantLocateDemo.loc‐aid.com

• Locate your own phone for real‐time location fix

• See accuracy levels with “least expensive” (cell ID) & “most accurate” (AGPS)

• See how opt‐in procedure works (Your phone will be opted‐out automatically in 10 minutes)

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LaaS LBS

Consum

erEnterprise



Copyright © 2011, LOC-AID Technologies. Patents pending, all rights reserved. Confidential - Do Not Copy or Distribute

Location‐based SMS promos

Location‐enabled loyalty/CRM

Solutions customized by location

Heat Maps/statistics & reports

Real‐time interaction by location

Cross‐carrier and device‐agnostic

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Copyright © 2011, LOC-AID Technologies. Patents pending, all rights reserved. Confidential - Do Not Copy or Distribute

Location‐based SMS promos

Location‐enabled loyalty/CRM

Solutions customized by location

Heat Maps/statistics & reports

Real‐time interaction by location

Cross‐carrier and device‐agnostic

Location‐based messaging

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• MMA: Marketing budgets overall are ‐70%, however mobile marketing budgets are +26% every year

• MMA: Mobile marketing redemption rates often exceed 3X vs. other media channels

• Airwide Solutions says 89% of major brands plan to market via mobile phones by 2011

• Forrester: 24% of US adult iPhone users and 21% of Android users have used a mobile shopping application in the last three months

• 60% of major brands have deployed text messaging (SMS) campaigns, while 33% have deployed multimedia messaging (MMS) campaigns

Source: Mobile Marketing Association 18


+ Location = Proximity Marketing

Pushing targeted content based upon mobile location and time‐of‐day (and other demo’s)

to maximize call‐to‐action or response

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• Over 2/3 of UK mobile phone owners say they would opt‐in to location services to receive relevant content

• Those younger than 35 were more likely to share location data, with popularity dropping as the age of the user climbed

• Customer reviews and sales promotions were the most popular content to receive based upon location

Source: Fiercewireless August 19, 2011 Nearly 70% of UK consumers keen on location services

70%

30%

Interest in Opt‐in tolocation services

Interest

Not Interested

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• Respondents were conflicted in their attitude toward mobile coupons with a location‐based element

• More than 2/3 are at least somewhat agreed that location‐based offers were very convenient and useful

• Location services are new enough that many consumers are not familiar with privacy protection in place

• Nearly half have some concerns about privacy

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Web Opt-in

• Integrated into any traditional retail marketing channel (print, in‐store, TV, Web, outdoor etc.)

• Opt‐in to weekly SMS messages on events, promos, and special offers

• Opt‐in available via online Web form or mobile site capturing customer profile data including location

• User selectable alert message content preferences

• All preference and profile data is captured for CRM database build, analysis, targeted messaging, and use in other marketing channels

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Smart Messaging Example

Text opt-in for either single coupon or to opt-in to couponing alert group

62407

Miami

Store

62407

Text STORE to 62407 to receive a SMS coupon every month for 20% off your favorite 2010 fashions.

Database receives keyword opt-in and delivers a coupon based on external events or information in the database

DatabaseWeather

Stock MarketSports Scores

Location Look UpProduct Inventory

Consumer Profile DataPast Consumer Purchases

Any Other Event or Data Sets

SMS Only Coupon: Contextually relevant coupon is delivered based on keyword + database referencing with unique redemption code.

It’s a scorcher in Miami today! Keep cool with breezy late summer skirts. 20% off at any store. Code t239r Exp. 8/31/10

Freezing in NY today? Keep warm with with a wool sweater. 20% off all sweaters at any store. Code 34r39r Exp. 8/1/10

Contextually relevant coupon delivered based on keyword + database with unique redemption code.

Sends coupon for sweaters based on cold weather

reading for opt-in location

OR….You can deliver a SMS Coupon with link to WAP page with multiple coupons and barcode

It’s a scorcher in Miami today! Keep cool with breezy late summer skirts. Discount coupons: http://nyskirts/mobi


Example: Location Aware Segmented AlertsMESSAGE LIST: Marketing Message Location

Kohl’s Savers Club Sat. only! Main & Oak St. store is offering 10% Bonus Buy off all purchases and 20% off KitchenAid Pro Line. Visit http://m.kohls.mobi for more offers.

95110

Kohl’s Savers Club Sat. only! Lincoln Ave. store is offering 20% off all Nike and Addidas shoes. Visit http://m.kohls.mobi for more offers.

94109

Kohl’s Savers Club Sat. only! 20% off all Nike and Addidas shoes. Visit http://m.kohls.mobi for more offers.

Los Angeles

Kohl’s Savers Club Sat. only! Lincoln Ave. store is offering 20% off all Nike and Addidas shoes. Visit http://m.kohls.mobi for more offers.

22 Canal St. , NY, NY 10023

Phone Number

Street City State Zip

(408) 907‐2322

176 Oak St. San Jose CA 95110

(415)334‐2232

1222 Jones St. San Francisco

CA 94109

(212) 917‐8596

12 Canal St. New York New York 10022

44264

Kohls

44264

Yes

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2

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7

Text KOHLS to 44264Bonus Buy Discounts!

Step 3: Users confirm and their location is captured. Opt-in location is the only user location used for future alerts

Step 4: Confirmation is sent to user of successful opt-in.

Optional landing page or site link in SMS

Marketer sets up Message List to map which locations they want to send to and what message each location will receive. System compares Message List locations to stored users’ locations at opt-in to segment messages sent.

Phone Number


(408) 907‐2322


(415)334‐2232


CA 94109

(212) 917‐8596

12 Canal St. New York NY 10022

Kohl’s Savers ClubReply YES to confirm you’d like us to use your location, 1 msg/week. Text HELP for help. Text STOP to cancel. Msg & data rates may apply. TC:www.m.mtiny.mobi

Kohl’s Savers ClubThanx for joining. You’ll receive 1 msg/week. Text HELP for help. Text STOP to cancel. Msg & Data Rates May Apply.TC:www.tc.mtiny.mobi

Kohl’s Savers ClubSat. only! Main & Oak St. store is offering 10% Bonus Buy off all purchases & 20% off KitchenAid Pro Line. Visithttp://m.kohls.mobifor more offers.

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Example: Message Broadcast with LBS

44264

Kohls

44264

Yes


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Before sending alert broadcast, system pings all subscribers’ phones and compares present location with radii in the Message List locations to deliver relevant marketing messages

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Phone Number


(408) 907‐2322


(415)334‐2232


CA 94109

(212) 917‐8596

12 Canal St. New York NY 10022

MESSAGE LIST: Marketing Message Location Radius Message Cap

Kohl’s Savers Club Sat. only! Main & Oak St. store is offering 10% Bonus Buy off all purchases & 20% off KitchenAid Pro Line. Visit http://m.kohls.mobi for more offers.

1300 Oak St.,San Jose, CA 95110

2 miles 5000

Kohl’s Savers Club Sat. only! Lincoln Ave/1st St. store is offering 20% off all Nike and Addidas shoes. Visit http://m.kohls.mobi for more offers.

453 8th Ave., San Francisco, CA 94117

1 mile 4000

Kohl’s Savers Club Sat. only! 20% off all Nike and Addidasshoes at 34 Grove St./Bush store. Visit http://m.kohls.mobifor more offers.

3444 Lennon Blvd., Fresno, CA 92331

10 miles 25000

Kohl’s Savers Club Sat. only! Canal/Mercer St. store is offering 30% off all Nike and Addidas shoes. Visit http://m.kohls.mobi for more offers.

22 Canal St. ,NY, NY 10023

0.25 miles 5000

Subscriber (408) 907‐2322

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Example: Geo‐Fencing

44264

Kohls

44264

Yes

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2

3

4

5

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User sees call to action in traditional media and texts keyword/short code to opt‐in,. Double opt‐in confirmation message sent first.

Step 5 & 6: User physically enters geo‐fence. If triangulation is on their location is fixed and compared to the Message List. Location relevant message is delivered with optional link to mobile landing page or site (steps 7 & 8).



MESSAGE LIST: Marketing Message Location Radius Message Cap

Kohl’s Savers Club Sat. only! Main & Oak St. store is offering 10% Bonus Buy off all purchases & 20% off KitchenAid Pro Line. Visit http://m.kohls.mobi for more offers.

1300 Oak St.,San Jose, CA 95110

1 mile 5000

Kohl’s Savers Club Sat. only! Lincoln Ave/1st St. store is offering 20% off all Nike and Addidas shoes. Visit http://m.kohls.mobi for more offers.

453 8th Ave., San Francisco, CA 94117

2 miles 4000

Kohl’s Savers Club Sat. only! 20% off all Nike and Addidasshoes at 34 Grove St./Bush store. Visit http://m.kohls.mobifor more offers.

3444 Lennon Blvd., Fresno, CA 92331

10 miles 25000

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Case Study: Location‐Aware Messaging

What type of location was used?

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• 1,000 geo‐fences created in various US cities

• Urban areas had half mile perimeters, suburban areas up to a mile around the stores

• SMS messages about offers and seasonal product arrivals

• User opts‐in to campaign to receive messages control number of messages per week

• No app required to download

North Face Geo‐Fenced SMS Campaign


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• Jaguar launched targeted ads within the Poynt app on iPhone/Blackberry/Android

• Poynt connects consumers to local people, shops, and restaurants

• Ads drive the consumer to the nearest dealership to schedule a test drive

• Campaign ran Dec 2010 to Jan 2011; Poynt says click‐through was 10X industry standards

Jaguar chose to get early learning in location via ads within existing LBS application

Source: Mobilemarketingconsultancy.org March 1, 2011


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• 80,000 US neighborhoods and 21M local business

• Location‐based app auto detects your neighborhood to show the most popular businesses nearby

• Allows Foursquare users to pre‐check in before arriving What type of

location was used?33


Launched at the 2010 Winter Olympics Leveraged location to obtain the closest Hockey House to the

consumer’s phone Consumers see advertised Short Code to join Hockey House and

receive link to home page Consumers also log into the Molson Canadian Hockey House mobile

web page (where they find other Hockey Houses)

Results exceeded all expectations Expected a 5% response rate Actual response rate was 10%


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• Del Monte Kibbles ’n Bits – Create brand awareness when consumers were in close proximity to Target and pet food stores

• SMS example: “Dogs are family, & family deserves more than just 1 boring taste. Get NEW Kibbles ’n Bits Bistro Meals dog food @ Target Rancho Santa Margarita 2day.”

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Participants were surveyed:• 60% said location‐triggered messages are cool & innovative

• 79% said it increased their likelihood to visit a store

• 65% made a purchase as a result of a ShopAlerts message

• 73% would definitely or probably use the service in the future


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Retailer Express pushes location‐based deals via branded shopping app

• When the App user gets close to an Express, Proximity Perks promos and recent news pop up

• Consumers show mobile coupon at register, learn about sale items at that location and share them with friends via Twitter/Facebook/email


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• Leading technology and services making it fast and easy to create, manage and analyze mobile marketing campaigns and content delivery initiatives worldwide

• Award winning iLoop Mobile Platform is a self‐service SaaS solution with open APIs for creating state‐of‐the‐art SMS campaigns, mobile sites, mobile coupons, mobile‐enabled Web sites and other mobile marketing initiatives

• Industry leader in mobile marketing strategy, managed service campaign delivery and professional services

• Customers include Fortune 500 brands, agencies, media companies, and other tier‐one companies

About iLoop Mobile

McDonalds: Enjoy one FREE Small McCafe. Code 34d83w Exp.1/6/10 Help:mmcoupons.com Opt-out: Reply MCDONALD STOP

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Random impact; user decides when to interact

Drive messaging & marketing based on proactive location

Proactive interaction; Marketer‐iniitated

Limited to smartphone users(~75M Users)

Smartphone + cell phone users (300M+)

Reach 93% of mobilesubscribers

App download required;App launch (battery drain);

Satellite “line of site” (outdoor only)

No download; no app launch; indoor/outdoor“Location on demand”

Convert location data into value more easily/often; Marketer is in control

User‐initiated brand engagement

(“whenever I feel like it”)

Strategic platform that drives proactive brand

engagement

Go beyond “app world” to leverage mobile into full multi‐media strategy

Only when app is launchedLocation‐triggered, proactive comms to drive smartphone

app download/usage

User awarenessand usage

Smartphone‐focused Broader consumer focus with location relevancy

Cross‐carrier, device‐agnosticcall‐to‐action messaging

based on location

User Dependencies

User Dependencies

Targeted MarketingTargeted Marketing

ReachReach

ApproachApproach

Benefits

User Engagement

User Engagement

SolutionsSolutions

Smartphone App Proximity MktgPlatform



• Forrester: 2011 Online Retail Technology Investment Outlook – 44% of US web retailers are investing in mobile apps vs. 15% in 2010

• Accordingly to Flurry, as of Aug 2011, an average application user has downloaded more than 63 applications to their Smartphone

• What % of apps are downloaded?

• What % of apps are used?

Retailers are investing in mobile apps, but how can they cut through the noise and ensure their apps get used?

Source: Flurry Blog, August 31, 2011. Internet Retailer (Forrester Research) June 22, 201141


Location‐enable your mobile marketing investmentMobile/Internet Mobile App Mobile Web SMS Text

Customer awareness, opt‐in, & management of location programs

Location‐aware messaging to drive app

downloads & usage

Location‐aware messaging with embedded links

Location‐aware text with specific

marketing messages

Carrier‐based location from Locaid

From: GNCYour Rewards Mobile



LocaidLOCATES LocaidLOCATES

100% OFNETWORK100% OFNETWORK

EVERY MOBILEDEVICE

EVERY MOBILEDEVICE

LOC‐AID runs the largest LaaS gateway and carrier reach

LOC‐AID locates 350M devices, real‐time.

No app to download.No user action needed.

Any device.Anywhere.

LOC‐AID finds every device on the network.

For any mobile application.

LOC‐AID delivers ubiquitous location.Indoors and out.GPS and CELL‐ID.

For the Fortune 1000.

FOR ANY LOCATIONFOR ANY LOCATION

The world’s first and largest LaaS company

The world’s first and largest LaaS company

CONFIDENTIAL AND PROPRIETARY. Any use of this material without specific permission of LOC‐AID Technologies, Inc. is strictly prohibited

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• Real‐time location

• Privacy‐protected OPT‐IN

• Unlimited geo‐fences

• Flexible location frequency (weekly, daily, hourly, every 5 minutes)

• Support for coupons & bar codes

• Comprehensive reporting analytics

CONFIDENTIAL AND PROPRIETARY. Any use of this material without specific permission of LOC‐AID Technologies, Inc. is strictly prohibited


1. Location can move mobile marketing away from “whenever I feel like it” engagement

2. Location will help us avoid the SMS marketing nightmare

3. Location helps protect your mobile number database

4. Location gives you a better shot at matching your offer (or app) with their moment of need

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