‘Proximity Marketing’ and ‘Location Based Services’ (LBS) using ‘Small Cells’

‘Proximity Marketing’ and ‘Location Based Services’ (LBS) using ‘Small Cells’

Zahid GhadialyManaging Director, eXplanoTech

3g4g.blogspot.com31/10/2012

Briefly about eXplanoTech

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Technical Consulting• Requirement Analysis• Project Management• Architecture and Specification• Design, Implementation, Integration &

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Resourcing and Recruitment• Talent acquisition• Executive head hunt • Resourcing of projects• Managed Services• Technology and Business Intelligence domains

Agenda

‘Proximity Marketing’ and examples LBS and LBM definitions Statistics Push v/s Pull examples Residential Small Cells Enterprise Small cells and Picocells Public Access Small Cells and Metrocells Micro cells Augmented Reality Operator Involvement and Conclusion

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Proximity Marketing

Proximity marketing is the localized wireless distribution of advertising content associated with a particular place. Transmissions can be received by individuals in that location who wish to receive them and have the necessary equipment to do so. - Wikipedia

Traditionally the term has been associated with Bluetooth through which the initial proximity based marketing took place

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Use Case: Mac’s convenience store, Canada

Proximity marketing campaign based on WiFi and Bluetooth

Offers are available on the landing page

Permission based messages, allow users to opt-out

If users provide additional details they can receive offers by text messages when away.

They seem to be enjoying success and users do not complain once aware.

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LBS & LBM

A location-based service (LBS) is an information and entertainment service, accessible with mobile devices through the mobile network and utilising the ability to make use of the geographical position of the mobile device - Wikipedia

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. – The LBMA

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Here comes the Statistics

Disclaimer!

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LBS Facts - 1

53% of consumers are willing to share their current location to receive more relevant advertising - JiWire, 2011

57% are more likely to engage with location-based advertising - JiWire, 2011

62% share local deals with friends - JiWire, 2011 63% of consumers feel a coupon is the most valuable form

of mobile marketing. - ABI, MMA, bCode, IPSOS Place Based Dynamic Content Products and Advertising Research Current redemption rate is between 5-25% - a significant increase

from the 1% redemption rate of paper coupons

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LBS Facts - 2

Search ads and location ads (paid-for positioning on maps and augmented reality apps) will deliver the highest revenue, while video/audio ads will see the fastest growth through 2015 - Gartner (June 2011)

41% of consumers take action, such as redeeming a coupon or entering the store advertised, due to location-based ads on their phone or web browser. - Jan. 2011 Cross-Tab Marketing Services Report. Microsoft, “Location Based Services Usage & Perceptions Survey”

Two thirds of world’s mobile users signal they want to be found - TNS, April 2012

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Push v/s Pull examples

PUSH

SMSEmailsBluetooth messagesSoftware Updates

Adverts/Discount coupons if not user consented

PULL(most examples debatable)

GrouponFoursquareNearest ‘XYZ’ searchAugmented Reality

Adverts/Discount coupons if user consented

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Examples of ‘Foursquare’ Specials/Discounts

App needs to be started to do check-in’s and get offers Can use other apps like Twitter to fetch replies to your

check-in’s Requires GPS – can be battery consuming

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Small-Cells

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Residential Small-Cells

Typically ‘closed’ except for registered users

Not suitable for proximity marketing

Location Based services examples: Tailored news and other information

on operators portal Exclusive content on Mobile TV or on a

streaming channel Notification based services when

registered users camp on the small cell

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Video: Homezone Concept from Airvana

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How many services can ‘Small Cells’ be part of?

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Enterprise Small-Cells & Picocells

Maybe ‘open’ or ‘closed’ except for registered users

Not suitable for proximity marketing

Location Based services examples: Enterprise specific applications mostly

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Public Access Small-cells & Metrocells

‘Open’ configuration to allow all users from an operator to camp on it

Can be used for ‘Proximity Marketing’ It has to be permission based with users opting

in.

Location Based Service examples Local offers/coupons via SMS or App Traffic updates Emergency information Additional value added information, sponsor

based, for an event.

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Video: Advanced Shopping Guidance Services

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Macro-cells getting smaller

Operators are now deploying denser networks with smaller cell sizes to improve coverage and capacity.

Typical cell sizes in Seoul, South Korea is 50 metres Typical cell sizes in Cologne, Germany is 300 metres In London cell sizes are typically less than 50 metres

The operators can leverage on small cell sizes for certain types of services/marketing but difficult to have personalisation as in case of Proximity marketing

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Video: Minority Report and future of Ads

This level of personalisation can only be achieved by really Small cells. Note that location can be used to show Ads on displays rather than

the phone

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Augmented Reality (AR) + LBS

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AR + LBS based marketing campaign by H&M Location based on GPS Users can take pictures with Virtual goods and get discounts

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Operator Involvement and Conclusion

Operators are ideally placed to provide services using small cells

Solutions can be provided for local searches, local advertisement, discounts and coupons For example: Shopalerts (see notes)

Special deals for loyal customers. Recommendations based on past history Solutions can be provided for basic feature phones as well

as smartphones. Operators should ideally develop their own platform to

utilise the complete value of the offering Can also work with the third parties by providing API’s.

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Additional Slides

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LBS Application Market Opportunity

U.S. Carrier LBS revenues are estimated to hit $1.6B in 2015 however, this only represents approximately 25% of the total U.S. LBS

application opportunity

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2009 2010 2011 2012 2013 2014 2015$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$597

$735

$940

$1,145

$1,349

$1,480 $1,565

Source: Frost & Sullivan 2010

Mobile LBS Revenue Forecast

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Location Based Advertising (LBA) forecast

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Mobile Location Based Service Revenue Forecast

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Mobile search and advertising

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Survey: Which LBS are you most interested in?

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