bolo2010 coburn
TRANSCRIPT
The Rise of Location Based Marketing
BOLOOctober, 2010
Lawrence Coburn
Private and Confidential
Location Changes Everything
“Simply put, location changes everything. This one input—our coordinates—has the potential to change all the outputs. Where we shop, who we talk to, what we read, what we search for, where we go—they all change once we merge location and the Web."
Mathew Honan, Wired
Agenda
• The Inflection
• The Basics
• The Players
• The Campaigns
• Engagement Levels
• About DoubleDutch
• The Future
Macro Trends
• Proliferation of Smartphones • Proliferation of GPS enabled devices
• Faster connections
• Deprecation of privacy
LBS Services are Inflecting
Foursquare got to 1M users twice as fast as Twitter
… and the market has noticed• Foursquare recently raised $20M on a $95M pre money valuation
Facebook Places now reaching 500M users
Consumer Searches
Foursquare continues to capture the imagination of consumers, brands, and the press.
Geolocation Market Sizing ($B)
Series1$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
$0$5
$12
TAMSAM
Consumer (e.g. Foursquare, Yelp)
Branded City Guides, Events,
Universities
Enterprise Collaboration
and CRM
B2C B2B2C Enterprise
Market Evolution
Consumerization of the Enterprise
Consumer EnterpriseType
Video
Connections
Microblogging
Geosocial
The Basics
Private and Confidential
The Location Stack
Implicit vs Explicit
• Google Latitude vs. Foursquare
• Privacy and security
• The less
technologically advanced system one
• Will we see a gradual move towards implicit location sharing?
Game Mechanics
• Points, badges, levels, mayorships
• “A leaderboard for Saturday night”
• Crucial for single player utility
• Gamification trend
Value to Consumers
Network Driven• Assisted serendipity• Ambient awareness
Single Player• Get deals / selfish interest• Log your travels / captain’s log• Self expression• Game Mechanics / Fun
Value to Businesses
• 85% of commerce occurs offline
• Explicit publishing of location represents an invitation for content
• “Local is the most important signal to emerge in the database of intentions since the link”
The Players
Private and Confidential
The Geolocation Landscape
Whrrl
• Offering location based recommendations
• Groups via “Societies”
SCVNGR
• 80 employees • All about the game
mechanics • Backed by Google
Ventures
• Moving from co-branded to consumer
Facebook Places
• Massive reach, access to complementary tools like sophisticated ad engine, analytics, place pages
• Sticking to location based infrastructure
• Radical innovation: checking other people in
• Has a “Facebook Problem”
• Real innovation could come via third party developers
PlacePop
• Digital punchcards
• Brand analytics
TriOut
• By locals for locals, Research Triangle Park area
• Focus on analytics and SMB tools
The Campaigns
Private and Confidential
Levels of Engagement
• Check your business data • Welcome message
• Location based offers
• Sponsored game mechanics
• Location driven content layer
• Loyalty / rewards program
• Roll your own
Campaign: NJ Nets/ Gowalla
• Lots of effort, gave away 76 free Nets tickets
• Problems: historically bad team, bad demographic match, low reach
Campaign: Coke Fairy
• Magic Coke cans scattered around Sydney
• Following the Coke Fairy gets you clues
• Results: 950 followers on Foursquare
Campaign: IFC Content Delivery
• IFC members contributed tips of places around the world
• 21,000+ followers
Campaign: Shopkick / Best Buy
• Automatic Checkins • Enabled via audio signal
• Blocks fake check-ins
• Get deals for walking in
Campaign: Soulja Boy
• Major recording star • Huge social media
presence
• One of the largest Ning networks
• Rolling his own app
• Soulja Boy Fans can connect around the world
About DoubleDutch
Private and Confidential
DoubleDutch
DoubleDutch helps companies and communities
launch their own geolocation apps.
(ie "Foursquare for the Enterprise”(ie ”Yammer of Location")
)
It’s All About Control
Look & Feel Places Game
Mechanics
Target Verticals
DoubleDutch is getting inbound interest from the following verticals
• Local media companies• Conferences, events, and tradeshows• Universities• Consumer brands• Enterprise• Digital agencies
The Future
Private and Confidential
5 Things to Watch
• Geofencing / limited implicit sharing
• Team based game mechanics
• Facebook powered apps
• Private networks: place, company, groups
• Mobile payments + geolocation
