The Rise of Location Based Marketing

BOLOOctober, 2010

Lawrence Coburn

Private and Confidential

Location Changes Everything

“Simply put, location changes everything. This one input—our coordinates—has the potential to change all the outputs. Where we shop, who we talk to, what we read, what we search for, where we go—they all change once we merge location and the Web."

Mathew Honan, Wired

Agenda

• The Inflection

• The Basics

• The Players

• The Campaigns

• Engagement Levels

• About DoubleDutch

• The Future

Macro Trends

• Proliferation of Smartphones • Proliferation of GPS enabled devices

 • Faster connections

• Deprecation of privacy

LBS Services are Inflecting

Foursquare got to 1M users twice as fast as Twitter

… and the market has noticed• Foursquare recently raised $20M on a $95M pre money valuation

Facebook Places now reaching 500M users

Consumer Searches

Foursquare continues to capture the imagination of consumers, brands, and the press.

Geolocation Market Sizing ($B)

Series1$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

$0$5

$12

TAMSAM

Consumer (e.g. Foursquare, Yelp)

Branded City Guides, Events,

Universities

Enterprise Collaboration

and CRM

B2C B2B2C Enterprise

Market Evolution

Consumerization of the Enterprise

Consumer EnterpriseType

Video

Connections

Microblogging

Geosocial

The Basics

Private and Confidential

The Location Stack

Implicit vs Explicit

• Google Latitude vs. Foursquare

 • Privacy and security

 • The less

technologically advanced system one

• Will we see a gradual move towards implicit location sharing?

Game Mechanics

• Points, badges, levels, mayorships

• “A leaderboard for Saturday night”

• Crucial for single player utility

• Gamification trend

Value to Consumers

Network Driven• Assisted serendipity• Ambient awareness

Single Player• Get deals / selfish interest• Log your travels / captain’s log• Self expression• Game Mechanics / Fun

Value to Businesses

• 85% of commerce occurs offline

• Explicit publishing of location represents an invitation for content

• “Local is the most important signal to emerge in the database of intentions since the link”

The Players

Private and Confidential

The Geolocation Landscape

Whrrl

• Offering location based recommendations

• Groups via “Societies”

SCVNGR

• 80 employees • All about the game

mechanics • Backed by Google

Ventures

• Moving from co-branded to consumer

Facebook Places

• Massive reach, access to complementary tools like sophisticated ad engine, analytics, place pages

• Sticking to location based infrastructure

• Radical innovation: checking other people in

• Has a “Facebook Problem”

• Real innovation could come via third party developers

PlacePop

• Digital punchcards

• Brand analytics

TriOut

• By locals for locals, Research Triangle Park area

• Focus on analytics and SMB tools

The Campaigns

Private and Confidential

Levels of Engagement

• Check your business data • Welcome message

 • Location based offers

• Sponsored game mechanics

• Location driven content layer

• Loyalty / rewards program

• Roll your own

Campaign: NJ Nets/ Gowalla

• Lots of effort, gave away 76 free Nets tickets

• Problems: historically bad team, bad demographic match, low reach

Campaign: Coke Fairy

• Magic Coke cans scattered around Sydney

• Following the Coke Fairy gets you clues 

• Results: 950 followers on Foursquare

Campaign: IFC Content Delivery

• IFC members contributed tips of places around the world

• 21,000+ followers

Campaign: Shopkick / Best Buy

• Automatic Checkins • Enabled via audio signal

 • Blocks fake check-ins

• Get deals for walking in

Campaign: Soulja Boy

• Major recording star • Huge social media

presence

• One of the largest Ning networks

 • Rolling his own app

• Soulja Boy Fans can connect around the world

About DoubleDutch

Private and Confidential

DoubleDutch

DoubleDutch helps companies and communities

launch their own geolocation apps.

(ie "Foursquare for the Enterprise”(ie ”Yammer of Location")

)

It’s All About Control

Look & Feel Places Game

Mechanics

Target Verticals

DoubleDutch is getting inbound interest from the following verticals

• Local media companies• Conferences, events, and tradeshows• Universities• Consumer brands• Enterprise• Digital agencies

 

The Future

Private and Confidential

5 Things to Watch

• Geofencing / limited implicit sharing

• Team based game mechanics

• Facebook powered apps

• Private networks: place, company, groups

• Mobile payments + geolocation

Lawrence Coburnlawrence@doubledutch.me

@lawrencecoburn

Private and Confidential