White Paper: MMA/iLoop Mobile Location Technology Roadmap

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:
Mobile Marketing Association The "Why" of Location-enabled Mobile Marketing
October 18, 2011- Sponsored by Locaid

3


Entering
your store?
At the
office?

At home?

Going to
the mall?



“50% of mobile users served location-
based messaging take action”
– Mobile Marketing Association &
Luth Research, 2010
5


6


7


8


9


10


11


Standalone GPS

Wi-fi/IP

Carrier-based/Cell ID

Carrier-based/A-GPS

Other

12


Carrier-Based App-Based

US Addressable Subs 285 million 50 million

Adoption Hurdle NO Download App Download Required
Platform specific (iPhone, Android,
Platform-specific App NO – All phones
Blackberry, Windows, etc.)
Speed 0 - 10 seconds 15 – 30 seconds

Accuracy 5 – 500 meters 5 -100 meters

Indoor Coverage YES NO

Downtown Coverage Better Worse

Battery Drain None Severe

Data Integrity App Allowed
Network Secure
(Spoofing Permitted)
13

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)

14


Consumer
Enterprise

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

Solutions customized by location

Location-enabled loyalty/CRM

Location-based SMS promos

Real-time interaction by location

Heat Maps/statistics & reports

Cross-carrier and device-agnostic

Copyright © 2011, LOC-AID Technologies. Patents pending, all rights reserved. Confidential - Do Not Copy or Distribute
16


Location-based messaging
Location-enabled loyalty/CRM

Solutions customized by location

Real-time interaction by location

Location-based SMS promos

Cross-carrier and device-agnostic Heat Maps/statistics & reports

Copyright © 2011, LOC-AID Technologies. Patents pending, all rights reserved. Confidential - Do Not Copy or Distribute
17


• 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

18 Source: Mobile Marketing Association


+ 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

19


• 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 30%
Interest
to share location data, with popularity
dropping as the age of the user climbed Not Interested

70%
• Customer reviews and sales promotions
were the most popular content to
receive based upon location Interest in Opt-in to
location services
Source: Fiercewireless August 19, 2011
Nearly 70% of UK consumers keen on location services

20


• 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
21


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• 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 Web Opt-in

24


Smart Messaging Example
SMS Only Coupon:
Contextually relevant
It’s a scorcher in Freezing in NY today?
coupon is delivered
Miami today! Keep based on keyword + a
Keep warm with with
cool with breezy late wool sweater. 20% off
summer skirts. 20%
database referencing
all sweaters at any
Text STORE to 62407 to receive a
SMS coupon every month for 20% off Database off at any store. Code withstore. Code 34r39r
unique redemption
your favorite 2010 fashions. t239r Exp. 8/31/10 code. 8/1/10
Exp.
Weather
Stock Market Contextually relevant Sends coupon for sweaters
Sports Scores coupon delivered based on based on cold weather
Location Look Up keyword + database with reading for opt-in location
unique redemption code.
Product Inventory
Consumer Profile Data
Past Consumer Purchases
62407
Any Other Event or Data Sets

Database receives keyword opt-in and
Store
62407 delivers a coupon based on external
events or information in the database It’s a scorcher in
Miami today! Keep
cool with breezy late
Miami summer skirts.
Discount coupons:
http://nyskirts/mobi

OR….You can deliver a SMS
Text opt-in for either Coupon with link to WAP
single coupon or to opt-in page with multiple coupons
to couponing alert group and barcode

Example: Location Aware Segmented Alerts
MESSAGE LIST: Marketing Message Location

3 Kohl’s Savers Club Sat. only! Main & Oak St. store is offering 10% Bonus 95110
Buy off all purchases and 20% off KitchenAid Pro Line. Visit
http://m.kohls.mobi for more offers.
Kohl’s Savers Club Sat. only! Lincoln Ave. store is offering 20% off all 94109
Text KOHLS to 44264 Nike and Addidas shoes. Visit http://m.kohls.mobi for more offers.
Bonus Buy Discounts!
44264 Kohl’s Savers Club Sat. only! 20% off all Nike and Addidas shoes. Visit Los Angeles
http://m.kohls.mobi for more offers. 5
Kohl’sPhone ClubStreet
Savers City State
Sat. only! Lincoln Ave. store is offering 20% off all Zip Canal St. , NY, NY
22
Number
1 Nike and Addidas shoes. Visit http://m.kohls.mobi for more offers. 10023
(408) 176 Oak St. San Jose CA 95110
907-2322
Yes (415) 1222 Jones St. San CA 94109
44264 334-2232 Francisco
Phone Street City State Zip
Number (212) 12 Canal St. New York New York 10022
917-8596
907-2322 Marketer sets up
(415) 1222 Jones St. San CA 94109 Message List to map
Kohls 334-2232 Francisco which locations they
6 want to send to and
(212) 12 Canal St. New York NY 10022 what message each
917-8596 Kohl’s Savers Club
location will receive.
Sat. only! Main & Oak System compares
St. store is offering 10% Message List locations
Bonus Buy off all to stored users’
2 locations at opt-in to
purchases & 20% off
segment messages
KitchenAid Pro Line. sent.
Visit
Kohl’s Savers Club http://m.kohls.mobi 7
Reply YES to confirm Kohl’s Savers Club
Step 3: Users confirm for more offers.
you’d like us to use Thanx for joining.
You’ll receive 1 and their location is
your location, 1 captured. Opt-in
msg/week. Text HELP msg/week. Text HELP
for help. Text STOP to location is the only
for help. Text STOP to user location used for
cancel. Msg & data cancel. Msg & Data
Rates May Apply. future alerts
rates may apply.
TC:www.m.mtiny.mob TC:www.tc.mtiny.mobi
i 4
Step 4: Confirmation is Optional landing page
sent to user of or site link in SMS
26 successful opt-in.


Example: Message Broadcast with LBS
5
Subscriber (408) 907-2322
1

3 6
44264

44264
Kohl’s Savers Club
Kohls Sat. only! Main & Oak
St. store is offering 10%
Yes Bonus Buy off all
purchases & 20% off
Before sending alert broadcast, system pings all KitchenAid Pro Line.
4 subscribers’ phones and compares present Visit
2 location with radii in the Message List locations to
http://m.kohls.mobi
deliver relevant marketing messages
for more offers.
Phone Street City State Zip
Number

907-2322
Kohl’s Savers Club Kohl’s Savers Club (415) 1222 Jones St. San CA 94109
Reply YES to confirm Thanx for joining. 334-2232 Francisco

you’d like us to use You’ll receive 1 (212) 12 Canal St. New York NY 10022
your location, 1 msg/week. Text HELP 917-8596
msg/week. Text HELP for help. Text STOP to
for help. Text STOP to 7
cancel. Msg & Data
cancel. Msg & data Rates May Apply. MESSAGE LIST: Marketing Message Location Radius Message Cap
rates may apply. TC:www.tc.mtiny.mobi
TC:www.m.mtiny.mobi Kohl’s Savers Club Sat. only! Main & Oak St. store is offering 1300 Oak St., 2 miles 5000
10% Bonus Buy off all purchases & 20% off KitchenAid Pro San Jose, CA 95110
Line. Visit http://m.kohls.mobi for more offers.
Kohl’s Savers Club Sat. only! Lincoln Ave/1st St. store is 453 8th Ave., San 1 mile 4000
offering 20% off all Nike and Addidas shoes. Visit Francisco, CA
http://m.kohls.mobi for more offers. 94117
Kohl’s Savers Club Sat. only! 20% off all Nike and Addidas 3444 Lennon Blvd., 10 miles 25000
shoes at 34 Grove St./Bush store. Visit http://m.kohls.mobi Fresno, CA 92331
for more offers.
27 Kohl’s Savers Club Sat. only! Canal/Mercer St. store is 22 Canal St. , 0.25 miles 5000
offering 30% off all Nike and Addidas shoes. Visit NY, NY 10023

http://m.kohls.mobi for more offers.


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

3
44264 5

44264

Kohls
Yes 7

2
4 Sat. only! Main & Oak
St. store is offering 10%
Bonus Buy off all
purchases & 20% off
Reply YES to confirm
you’d like us to use
Kohl’s Savers Club KitchenAid Pro Line.
Thanx for joining. Visit
your location, 1
You’ll receive 1 http://m.kohls.mobi
msg/week. Text HELP
msg/week. Text HELP for more offers.
for help. Text STOP to
cancel. Msg & data for help. Text STOP to
rates may apply. cancel. Msg & Data 8
TC:www.m.mtiny.mobi Rates May Apply.
TC:www.tc.mtiny.mobi 6
MESSAGE LIST: Marketing Message Location Radius Message Cap

Kohl’s Savers Club Sat. only! Main & Oak St. store is offering 1300 Oak St., 1 mile 5000
10% Bonus Buy off all purchases & 20% off KitchenAid Pro San Jose, CA 95110
Line. Visit http://m.kohls.mobi for more offers.
User sees call to action in traditional Kohl’s Savers Club Sat. only! Lincoln Ave/1st St. store is 453 8th Ave., San 2 miles 4000
offering 20% off all Nike and Addidas shoes. Visit Francisco, CA
media and texts keyword/short code http://m.kohls.mobi for more offers. 94117
to opt-in,. Double opt-in confirmation Kohl’s Savers Club Sat. only! 20% off all Nike and Addidas 3444 Lennon Blvd., 10 miles 25000
28 message sent first. shoes at 34 Grove St./Bush store. Visit http://m.kohls.mobi Fresno, CA 92331
for more offers.


29


Case Study: Location-Aware Messaging

What type of
location was used?

30


North Face Geo-Fenced SMS Campaign

• 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
What type of
location was used?
31


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

What type of
32
Source: Mobilemarketingconsultancy.org March 1, 2011 location was used?

• 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
33
location was used?

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)
What type of
Results exceeded all expectations location was used?
 Expected a 5% response rate
 Actual response rate was 10%

34


• 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.”

35


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

What type of
36
location was used?

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

What type of
37
location was used?

38


About iLoop Mobile
• Leading technology and services making it
fast and easy to create, manage and analyze
mobile marketing campaigns and content
delivery initiatives worldwide McDonalds: Enjoy one
FREE Small McCafe.
Code 34d83w
• Award winning iLoop Mobile Platform is a Exp.1/6/10
Help:mmcoupons.com
self-service SaaS solution with open APIs for Opt-out: Reply
MCDONALD STOP
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

39


Proximity Mktg
Smartphone App Benefits
Platform
Drive messaging &
Random impact; user decides Proactive interaction;
Approach marketing based on
when to interact Marketer-iniitated
proactive location

Reach Limited to smartphone users Smartphone + cell phone Reach 93% of mobile
(~75M Users) users (300M+) subscribers

App download required; No download; no app Convert location data into
User App launch (battery drain);
Dependencies Satellite “line of site” launch; indoor/outdoor value more easily/often;
(outdoor only) “Location on demand” Marketer is in control

User-initiated brand Strategic platform that Go beyond “app world” to
Solutions engagement drives proactive brand leverage mobile into full
(“whenever I feel like it”) engagement multi-media strategy
Location-triggered, proactive
User User awareness
Engagement Only when app is launched comms to drive smartphone
and usage
app download/usage

Targeted Cross-carrier, device-agnostic
Broader consumer focus
Marketing Smartphone-focused call-to-action messaging
with location relevancy
based on location



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

• 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?

Source: Flurry Blog, August 31, 2011. Internet Retailer (Forrester Research) June 22, 2011
41


Location-enable your mobile marketing investment
Mobile/Internet Mobile App Mobile Web SMS Text

From: GNC
Your Rewards Mobile

Location-aware Location-aware Location-aware
Customer awareness,
messaging to messaging with text with specific
opt-in, & management
drive app embedded links marketing
of location programs
downloads & usage messages

Carrier-based location from Locaid


Locaid 100% OF EVERY MOBILE FOR ANY
LOCATES NETWORK DEVICE LOCATION

LOC-AID runs the LOC-AID locates 350M LOC-AID delivers
LOC-AID finds every
largest LaaS gateway devices, real-time. ubiquitous location.
device on the network.
and carrier reach No app to download. Indoors and out.
For any mobile
No user action needed. GPS and CELL-ID.
application.
Any device. For the Fortune 1000.
Anywhere.

The world’s first and largest
LaaS company

43

Mobile Marketing Association Any use of this material without specific permission of LOC-AID Technologies,"Why"strictly prohibited SponsoredMarketing
CONFIDENTIAL AND PROPRIETARY. The Inc. is of Location-enabled Mobile
October 18, 2011- by Locaid

• 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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White Paper: MMA/iLoop Mobile Location Technology Roadmap

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White Paper: MMA/iLoop Mobile Location Technology Roadmap