LBi 1

Location Based Marketing, what’s in for me

Powerdemo on Digital Marketing First October 28th 2010, Brussels, Tour & Taxi

It’s all about relevance

It’s not traditional media that are dead (although some of them smell rather funny).

It’s unwanted, irrelevant interruptions and stupidity that we are fed up with.

By the way, who came up with that stupid concept of “Display Advertising”?

Isn’t all advertising (except radio) display?

Display

Search

Classifieds

DM

Relevant Advertising

Irrelevant Advertising

versus

EXTREMELY irrelevant

EXTREMELY relevant

It’s about building respectful relationships with customers, based on relevant communication, providing value for both sides, without annoyance or intrusion.

And it is finally possible today.

Location Based Services(relevant now and here)

CRM(relevant for who I am)

Peer-Pressure and Peer-Guidance(because I trust my social network more than I trust brands)

Brands as Friends(because you tell me stories and provide me with real value)

any kind of (creative) format

RELEVANCE MARKETING

Who? Me!Where? Here!

When? Now! What? Search! Apps!

Types of Location Marketing

The start ... technology-driven LBS• “Proximity Based Marketing”• Machine-driven• Centralized models• Top-down• Traditional phone experience• “Campaign”• Solitary (one2many)

Case Thomas Cook - Proximity Based Marketing

• World Travel Conference• 2000 attendees

• How to interact with attendees?• How to manage?• Fast and efficient

• Welcome messages• Timed announcements• Departure messages

• 4 interactive zones• Targeted announcements• Real Time Statistics => adaptations

Case – BlueFi - Proximity Based Marketing

• Annual Sales period (2 weeks)• 20 hangout locations Bangalore• Telecom provider• Segmentation of customers:

• Lower End• Mid Segment• High End

• Relevant communication to each of them• Offers that matched their profiles

Case – BlueFi - Proximity Based Marketing

• Activations to turn on Bluetooth• Walk in our outlet on the 2nd floor for offers and surprises right now• Bluetooth activation from 20 to 150% increase• 45% increase in footfall with Bluetooth turned on• +50.000 engagements• +4.000 store visits

A no-brainer: background LBS• App-driven• De-centralized models• Bottom-up / top-down• Great experience• Social• Relevance, relevance,

relevance

Case – Starbucks: Mayor discounts & Barista badge

StarbucksBarista badge

The boom today: Check-in Services• People- and business-driven• De-centralized models• Bottom-up• Rich experience• Relationship, engagement,

loyalty• Social• Incentive-based (badges,

coupons, ...)

The boom today: Check-in Services

The boom today: Check-in Services

The boom today: Check-in Services

Case – Tasti D-Lite & FourSquare

• Tasti D-Lite=Frozen dessert• TastiRewards• Extended Loyalty Program• Associate Twitter

&FourSquare with your membership card

• Earn extra points for purchases

• Autotweets

Checkin-in is not just about location

Case – RunKeeper: No Check-In FourSquare Badge

• RunKeeper = App tracking fitness routines• Exclusive badges without having to check-in but for doing something!• Complete a marathon? => badge• One pair of “trainers” is checking in at points and sends updates• First at venue = free trainers

Checkin-in is not just about location

Checkin-in is not just about location

Case – Jimmy Choo - Treasure Hunt on FourSquare

• Jimmy Choo = Shoe stores in London• One pair of “trainers” is checking in at points and sends updates• First at venue = free trainers

What’s next?

Case – Beware of the marketing GAP!

• Gap• BlackMagic Event• 25% Foursquare & Twitter & FB discount• Foursuare=Show you check-in @ cashier• Facebook= print out coupon• Twitter= discount code at cashier

• … the code your phone gave me actually didn’t work

Case – Beware of the marketing GAP!

Some Issues

• Saturation?

• Privacy? Security?

• Value proposition?

• Spam (yep, I am talking to you, advertisers!)

FootPath Technology gives answers to:

• Do shoppers at Innovation also visit Marks and Spencer? • Will shoppers go out of their way to visit Starbucks? • Or do they visit the closest coffee shop?• Would our centre benefit from the inclusion of a bookstore?• How do tenant relocation decisions effect overall centre sales?

But as well:

• What path do customers follow within Marks & Spencers?

What if we would merge LBS & FootPath Technology?

What if we would merge LBS & FootPath Technology?

Conclusion

• Location, Location, Location. Right, but the actual value will be

in tagging items, objects, brands, artists, media, content, ...

• Location will be one of the key drivers of relevance marketing

• We will see all flavors of LBS (back-ground, user-driven, ...)

• The industry has to take care not to fuck up

• create value (and incentives)

• don’t see this as the next Holy Grail (well, it is, but not for you,

for the user!

• Users will have to find a balance between privacy and

convenience

Special thanks to:

• Jo Caudron – Dear Media

• Antony Slabinck – Lbi Belgium

• IAB Belgium

For research and their input for this presentation!

LBi Belgium

Vorstlaan 191 Bd du Souverain

B-1140 Brussels

Kortrijksesteenweg 1144 bus N

B-9051 Sint-Denijs-Westre

m

www.lbigroup.be

Thank you

Rik Lagey – Digital AddictRik.lagey@lbigroup.be+32 476 22 76 00Twitter: @rik_lagey