"Geofences Everywhere – How Can Marketers Benefit?“

Michael Leis, VP, Management Director, Digital, DraftFCB

Alistair Goodman CEO, Placecast

42% of consumers 18 – 34 interested in mobile alerts from favorite retailers

18-34 35-44 45-54 55+ 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

42%

30%

21%17%

44%

29%

16%20%

40%

30%26%

14%

At least Somewhat InterestedBase: Cell Phone/Smartphone Owners

TotalMenWomen

Assuming you gave permission, how interested, if at all, would you be in receiving text alerts about new products, sales and/or promotions from your favorite merchants, restaurants, or stores on your cell phone/Smartphone?

n=1719

Source: Placecast The Alert Shopper II, Harris Poll, July 2010

The location-based mobile landscape

Platform • Provide mobile marketing technology to brands and carriers

• Offer white-label services for SMS, mobile web and other mobile marketing to agencies, brands and operators

• SMS/MMS mobile web with location targeting/triggering

Local Discovery Apps• Mobile applications that provide content specific to a user-

expressed (search) or detected location

• Location-relevant mobile banner, text units, alerts, promotions and sponsorships

Check-in/Social Apps • Part friend finders, social city guide, game and discounts• Users check in to location through “around me” search or

venues can be added with address• Venue-specific promotions and experiences; loyalty

What is a geofence?Geō-fence noun : a virtual field around any location set to deliver a personalized marketing message to a consumer when they are inside.

How it’s created:• Upload location addresses• Proprietary translator creates a “Place Profile”• Program the desired geo-fence around a location

Flexibility:• Geo-fences can be created around any location• Add, remove & optimize geo-fences

Geo-fencing Strategy:• Based on program objectives, trade areas, and

customer demographic/psychographic profiles• Obvious relationship between offers and locations

Geofence User ExperienceGeo-fence is triggered

• Customer is out shopping in a retail area, office area during lunch time, sporting event, concert, or any other location POI

• Triggers the geo-fence set by brand

Dynamic message delivered

• She/he receives an SMS alert on mobile

• Message presents a personalized offer

• Dynamic message- promotional, branding, sponsorship or a reminder

• Option to leverage digital assets & WAP

Consumer Opts-In

Customer opts-in through

• Web site• Social Network• SMS or email

program• Web or mobile

banner• Inside store

locations: window signage, POS cards, receipts, etc.

Used for both acquisition and retention

ACQUISITION

RETENTION• White label program for brands• Brand owns their audience and

data• Can integrate to CRM or loyalty

programs

• Program participants• Portal with multiple brands• Program owns the audience

How are brands using location-based alerts?

Getting to scale in mobile & location

82% Use Cell Phones

71% Use SMS

35% Have Apps

24% Use Apps

4% Use LBS*

Reach is a challenge…(% US Population = 310 million) Particularly with Location

Based Apps…

Company Downloads(Global)

Active Users (80/20 Rule)

Foursquare 5,000000 1,000,000

Loopt 4,000,000 800,000

Booyah 3,100,000 620,000

Waze 2,300,000 440,000

SCVNGR 700,000 140,000

Gowalla 600,000 120,000

Source: Pew September ‘10, *Forrester June 2010 includes check in services like Foursquare

Source: Mobile Marketing First Quarter Trend Report AdAge February 2010

ShopAlerts by AT&T

> Combines reach of subscriber network with quality of AT&T

> Hosted solution – Software as a service

> AT&T secures offers from retailers

> One-stop shop provides seamless experience for consumers and advertisers

> Enhanced ROI and optimization across a larger number of consumers

Why it Works for DraftFCB Shopper Marketing: Behaviorally Relevant Technology

> Fits neatly with our 6.5 Seconds That Matter> The maximum amount of time any person will give a brand to capture

their attention> Must be simple and relevant enough to make a difference and work for the

audience> Must help the audience make decisions before the shelf> Placecast reduces friction typical in mobile brand experience now

> Combines all the essential elements of valuable communication> Right time> Right place> Right message

Why it Works for DraftFCB Clients: Effectiveness> Placecast service with AT&T foundation

> Fundamentally broader reach at the carrier level> Makes brands the second-party instead of the third-party

> Targeted Scale> The national scale brands need while only delivering (and paying for) the

messages that make sense to the audience.> Works like a typical ad buy

> Easy to understand it within an existing budget structure> First-mover advantages

> Priority within competitive markets> Literally, physically competitive spaces

> Intelligence on consumer behavior

Emerging insights from early programs

> Must create an obvious relationship between offers and locations

> Incentives are absolutely needed for brands to recruit them into the programs

> Consumers are very positive about the use of their location information, provided there is an exchange of value

> Texts have most immediate impact on low-consideration products with many retail outlets - more chances to purchase, triggers impulse buying.

> But texts also help to build loyalty and increase awareness of new product intros for higher-consideration products, and serve as reminders

> Successful recruitment can happen via dedicated email blasts, in-store signage and promotions, direct SMS and social networking

> Geo-fencing and messaging strategies depend on a number of factors, from the purchase consideration cycle for the product to the number of outlets, time of day and traffic patterns

Thank you

Michael Leis, VP, Management Director, Digital, DraftFCB@mleis Alistair Goodman CEO, Placecast