Presentation to an NYU marketing class about the emergence of new mobile, local marketing.

1. New trends in Location Based Services (LBS) The evolution of mobile marketing

2. history

3. History of mobile 1947 - Bell Labs engineers propose hexagonal cells for mobile phones in vehicles 1973 – “1G” – predecessor of Zack Morris phone Motorola Dynatac, by Dr, Martin Cooper 1990’s – “2G” (GSM/CDMA) – UK has first SMS in 1991 1999 – WAP version 1.1 (wireless access protocol) Optimized webpages made mobile browsing possible 2001 – “3G” released in Japan Also 2001, NTT-DoCoMo (Japan) introduces the world's first LBS phone, before mobile phones had GPS. 2002 – BlackBerry modifies 2 way pager to create first email enabled phone iPhone day – July 11, 2008

4. Historical

5. Recent/forecasted mobile

6. Overall, there are now more mobile phones in the world than personal computers. Mobile is KING Source: Research we found online

7. First steps in mobile marketing Gaming 1997 - Snake on Nokia 6110 – Black and white JamDat – 1st dominant mobile gaming company, 2000 Acquired by Electronic Arts for $650mm Paying for add-ons to their phone – introduced idea of a cellphone as a full-service portal 1st time you used your phone for transactions

8. First steps in mobile marketing (cont.) SMS Was an unsaturated medium – nearly 100% of smsmsgs are viewed by receiver 7.3 billion text messages per month in June-05 (up 154% from June-04), 15 billion (150%) in Oct 06 // 25 billion in Oct 07 in US alone Niche advertising agencies start to form for SMS marketing ipsh!, JuiceWireless, WiredSet Example – text “coke” to 12345 – Text message call to action as an opt-in Millions of users, 2009 Source: To Mobile or Not to Mobile: Digital Strategies for Marketers - Nielsen; Internet eMarketer, 2009

9. Mobile banners One in five phones in the US are currently smartphones The mobile ad market today is $420mm Direct campaigns Running direct deals with advertisers who want exposure to mobile For example, Coors: Emergence of mobile ad networks Ad networks like Quattro, Millennial, Admob, JumpTap, ThirdScreen AdMob was acquired by Google last week for $750mm, igniting the dialogue about mobile advertising Source: AdWeek – “Mobile ads – Wait until next year”

10. Okay, so where are we? Massive mobile audience is clear 1% Click-through rate on mobile leaves room for improvement Devices becoming more and more capable People are using their phones more They are doing more ‘stuff’ on their phones “The phone is the new swiss army knife” – CBS News Now - Location

11. using location to reach your audience

12. Location GPS / Cell ID / carrier detection / manual Why is location important to mobile marketing? Mobile is a medium that captures an audience on the go People tend to use their phones to get stuff done What do you want your consumer to get done? How LBS is used: Where am I? Where are my friends? What is around me? What can I do with it?

13. Evolution of Location Based Services (LBS) Mobile has been the catalyst that made LBS relevant 1st step: City level local content – think a NYC city guide This happened first on web and then on mobile Vindigo for Palm Then: hyperlocal emerged – think Google Maps Nearby determines relevance Organized by distance away from you For example - Starbucks on Google Maps:

14. Next phase – its all about ME Always-on services harness the power of in-app location (like GPS) Track me, help me find my friends Loopt, Google Latitude More about me – lifestreaming Using LBS to document/publish my life (photos, notes, status updates) Brightkite, Whrrl

15. Latest and greatest – beyond lifestreaming Appealing to a mass market Games and incentives Competition Foursquare Gowalla Aggregating LBS content Multiple sources = context Big picture emerges Buzzd

16. Future trends in mobile More powerful means of engagment: Push notfications (for nearby offers, Rich media ads (videos, downloadables, etc) Monetization: as context and targeting becomes richer, monetization is becoming increasingly long tail - how do you bring in the advertisers themselves? Self-serve like Facebook? Need to be smarter too - to be predictive, proximity and demographic data isnt the only thing that makes an ad good for a user - will need to be personalized/contextualized Eg: PinchMedia uses facebook connect With more and more apps - mindshare gets diluted. Future isnt about picking a winner. Winners will pick a specialty and diversify offerings within it: Inventors/Publishers of apps (UI/mktg/functionality) / Monetization of these interfaces Application Developers - coding apps Backend B2B LBS technology like Skyhook

17. mountains to climb

18. how do you keep it cool? As marketers have more and more tools for targeting their audience, how do they keep it from being: A) Creepy B) Oversaturated ie: Microsoft Bing’s ‘search overload’ commercials How much intrusion is ok C) Static Needs to be new! How can you make it more relevant? More and more, users reject content that seems random How do you balance mass market economics and the super-contextual long tail?

19. problems with discovery The number of apps is increasing exponentially – what can you do to stand out? Who controls the eyeballs? What is your hook? Facebook’s iPhone app developer (Joe Hewett) blasted Apple last week: “My decision to stop iPhone development has had everything to do with Apple’s policies. I respect their right to manage their platform however they want, however I am philosophically opposed to the existence of their review process. … The web is still unrestricted and free, and so I am returning to my roots as a web developer. … I would like to be able to say that I helped to make the web the best mobile platform available, rather than being part of the transition to a world where every developer must go through a middleman to get their software in the hands of users.” Carrier distribution method is painful and slow moving Carriers have a stranglehold on location and the discovery of content. They also have strict advertising and content guidelines Next steps in LBS discovery: AppStore genius – recommendation engine for apps Android – open development platform – open discovery channels Cross promotional partners

20. privacy App developers have a responsibility to be fully transparent with their users: Where data is published What kind of data is published LBS developers have an obligation to help delete your digital footprint if requested Facebook recently had a big PR problem around deleting acocunts Users want the option of a full delete Location Based Services could potentially redistribute a person’s location out to a wide variety of sources If a user posts their whereabouts, and later changes their mind, they need to be able to clean the digital paper trail When you post your location publicly – what else are you posting? Mashups of data could potentially predict a lot more about your location than the sum of the parts - what ethically must we do to protect against this?

21. appendix: rethinking local listings

22. wall between listings and LBS publishers Local Ad Networks Local Content Publishers

25. the proposal We’ll give you: A free feed of local listings An API to keep you updated on which have remaining budget A mechanism by which you can ping us with usage statistics Cache and exposure to local listings directories, with refined integration Revshare on this traffic Give us: Pings on which venues are viewed Filter out bot traffic Agreement to the terms of resyndication local advertising reports

26. Thank you!! glen nigelstraub marketing glen@buzzd.com phone: 646.723.4657 michael muse business development michael@buzzd.com Phone: 646.484.8599 text BUZZD to 28993 to get... buzzd: your city. real time. www.buzzd.com