GEOMARKETINGGEOSALES WHATrsquoS NEXT

There are 4 BILLION mobile phone ownersmdashthatrsquos half the population ofthe planetmdashand 25 of them access the internet exclusively throughtheir phones

Mobile web usage in the US grew 110 last year

60 of US mobile internet usage is for social networking followed bysearch portals (14) messaging (8) and other uses (18)

MOBILE PHONES HAVE ENRICHED AND EMPOWERED USERS WITHTHE POWER OF THE WEB WHEREVER THEY GO

THE WEBHAS GONEMOBILE

Users are now increasingly turning to the web to interact with the worldimmediately around them Local mobile search is growing exponentially at50 every year with 15 billion local searches every month in 2010(US market)

Growth in local mobile content has been led by Online Directories (up73) Restaurants (up 70) Maps (up 63) and Movies (up 60)(US Market)

MOBILE PHONES HAVE BECOME AN INTEGRAL TOOL FOR HELPINGPEOPLE NAVIGATE THE WORLD AROUND THEM

Marketers need to know how consumers want to use this tool to interactwith the world Is search the top priority Socializing Gaming Theseelements donrsquot have to be prioritized over each other however Rather ingeolocation they can be used in concert to captivate the consumer whileadding value

THEWORLD IS

SHRINKING

Mobile phone users are turning to geo platforms that COMBINE socialnetworking gaming and search for the purpose of local exploration Infact almost half of the current market behavior is gravitating towardsgeolocation Quite simply geo platforms allow people to interact with thepeople and businesses in their vicinity utilizing

CROWDSOURCINGContent is created by mobile device users and businesses in the form ofreviews coupons activities etc

GEO-LOCATIONPlatforms track and reflect usersrsquo locales through some form of map orGPS technology Think custom Yellow Pages

SOCIAL PROOFPlatforms allow businesses and users to know what others are doingdetermine how thatrsquos relevant to them and respond accordingly

THE WEBLOCALIZED

FOURSQUARE is the largest geo-networking platformencouraging users to ldquocheck inrdquo at real sites byawarding badges honorifics and discounts

Foursquarersquos most direct competitor GOWALLAencourages users to ldquocheck inrdquo at places to unlockvirtual items that can be redeemed for actual products

FACEBOOK PLACES works to create moments of socialserendipity as users can locate people or brands intheir networks check in with them and tell others

LOOPT allows users to find each other using GPStracking facilitating meetups Loopt also connectsusers to integrated content from Zagat Citysearch etc

YELP is the most popular user-generated review site forpeople to learn about the businesses around them viaother users integrating socializing and check-intechnologies

WHO WILLBE THE

GOOGLE OFGEO

SHOPKICK contains a new virtual currency calledldquokickbucksrdquo which can be redeemed for Facebookcredits iTunes Gift Cards travel vouchers or donationsto charities

BRIGHTKITE is a geo-networking platform that awardsusers various levels of badges It utilizes newaugmented reality technology for mapping

MYTOWN enables users to build a virtual town or citywith real world-based landmarks and act as a virtualentrepreneur The app has been likened to monopoly

SCVNGR is a game that allows users to completelocation-based challenges and share reviews earningpoints redeemable for retail promotions and discounts

WHRRL users interact with ldquosocietiesrdquo of people basedon interests or check ins Rewards fun facts andreviews add to indexed local consumer insight

LOOKINGFOR A

CHALLENGE

KNOW EXACTLY WHERE YOUR CUSTOMERS ARE WHAT THEYrsquoVEPURCHASED FROM YOU AND SEND RELEVANT PROMOTIONS AT THEMOMENT THEY ARE MOST LIKELY TO USE THEM

92 of phone owners cannot get through a typical day without using theirphones Mobile phones are within armrsquos reach 80 of an average userrsquosday While still in their infant stage geo platforms are used by 4 ofonline users and growing

Big players are jumping into the geo-located world Twitter has addedgeo-located tweets Google has added real-time GPS geo-tracking andFacebook recently rolled out robust new geo functionality in its Placesfeature

THE POWEROF GEO

PLATFORMS

Foursquare and Starbucks teamed up to reward frequent customers withthe Barista badge and officially turned on the rewards side of Starbucksrsquoexperimental loyalty program with the first-ever nationwide mayor special($1 off Frappucinos)

Some Starbucks locations have even created real-world perks andrecognition for their customers such as mayor parking spots and signagefor their most loyal followers demonstrating PR and CRM savvy Thishelps Starbucks forge most lasting connections to its customers

GEO-MARKETING

BESTPRACTICES

1

Gowalla partnered with Sweet Leaf Tea to entice Austin Texas-area usersto check-in at various locations to find virtual Sweet Leaf Tea cansredeemable for real cans at the Sweet Leaf Tea HQ (in Austin)

Gowalla also partnered with the InterContinental Hotels Group for its Hitit Big promotion which offered rewards such as retail gift cards anddouble air miles to guests who stayed multiple nights at any of theparticipating IHG hotels family

Both brands and Gowalla were able to definitively show the effectivenessof these marketing initiatives

GEO-MARKETING

BESTPRACTICES

2

GEOMARKETING AS CUSTOMER RELATIONS MANAGEMENT (CRM)Monitor conversations among consumers as well as manage customerservice

IMAGINE a customer expresses dissatisfaction with a product whileengaging with it in a store An employee can now approach him momentslater to address the issue directly

GEOMARKETING AS INVENTORY MANAGEMENT Use geo platform datato learn real-time demand for onersquos products and adjust for inventorylevels

IMAGINE a hotel is underbooked but you can build buzz by giving awaya free room on a geo platform with instructions for the lucky participant tovisit the hotel spa restaurant and bar for further discounts

GEO-MARKETINGSTRATEGIES

GEOMARKETING AS EXPERIENTIAL BRANDINGUse geomarketing to increase awareness via actual usage a crux ofbranding

IMAGINE Coca Cola partners with Foursquare to add a ldquoCoca-Cola check-inrdquo allowing users to ldquocheck-inrdquo whenever they drink a can of Cokebroadcast this to other users and make comments

IMAGINE YOUR BRANDrsquoS GEO POSSIBILITIEShellip

GEO-MARKETINGSTRATEGIES

The advantages for organizations are compelling Geo platforms allowusers to customize their interactions based on their locations andpersonal activities

Just as importantly these tools allow businesses to closely monitorcustomer behaviors and tailor actions to serve their specific needs

REMEMBER the reason most marketing messages fail to closesales is that they are untargeted Geo platforms allow businessesto deliver relevance and personality

Marketers can now identify reach and reward their most influentialconsumers in the most tangible way possible in real time on their mobilephones when they are at the point of purchase

THE GAME IS ABOUT TO BE CHANGED AGAIN

LEVERAGETHE POWEROF LOCAL

Ludvik + Partners provides value by assessing yourcompanyrsquos overall marketing theme and determining astrategy that helps GEO deliver on fundamental objectives

CREATIVE ADVERTISING REDEFINED48W 20th Street New York NY 10011 T 3475869862 F 9173511214 wwwludvikpluscom

ARE YOU READYTO GO LOCAL

SOURCES1 Erick Schonfeld (Jan 5 2010) USMobile Web Usage Grew 110 PercentLast Year Apple Dominates AndroidNo 2

2 BRAND AUTOPSY MARKETINGPRACTICE Digital Discounts(Foursquare amp Gowalla)

3 By Barbara De Lollis (May 19 2010)USA TODAY InterContinental HotelsGroup bets on Gowalla for major summerpromo

4 Kipp Bodnar (July 22 2010)HubSpot Blog 11 Mind-Blowing MobileMarketing Infographics

5 Sam Taggart and AJ Vaynerchuk(Apr 21st) VAYNERMEDIA Early ProofThat Geolocation Marketing Will Succeed

6 By Neil Vidyarthi (June 2nd 2010)Social Times Your Social Media SourceBooyahrsquos MyTown and Location-BasedGames Are A Possible MarketingSensation

7 By Chris Sherman on (March 31 2010)Engage Digital Booyah Partners WithTravel Channel To Promote MyTown

8 Matthieu Soule (July 13 2010)Atelier Booyahs Secret Gaming RecipeCould Make it the Next Zynga

9 Alycia de Mesa (Oct 9 2006)brandchannel Yelp Networking

10 Jessica Dolcourt (Dec 2 2009)CNET Reviews Yelp live in BlackBerryApp World

11 Glenn McBride (041410)Chicago Now 3 steps for using Yelp topromote local businesses

12 Claire Cain Miller (Dec18 2009)The New York Times Google Said to BeNear a Yelp Deal

13Erick Schonfeld (Jul 14 2010)TechCrunch Groupon TwitterFoursquare And Yelp Will Convene AtThe Social Currency CrunchUp

14Tom Krazit (Dec 6 2009)CNET NEWS Google Favorite Placescoming to window near you

15 GroundTruth (April 21 2010)Ground Truth Half of All Time Spent onthe Mobile Internet is on SocialNetworking Sites Engagement withmobile social networks surpasses thatof Facebook and MySpace

16 Brightkite (Oct 15 2009) BrightkiteAugmented Reality comes to youriPhone

17 dna 13 on (Mar 16 2010)Geolocation Ups the Ante for Real-TimeCRM

18 RICG (July 28 2010) Geo-locationsocial networks have great potentialfor future

19 Dan Frommer (Aug 17 2010)Business Insider SAI FacebooksLocation Product Could Be A BiggerAttack On Google And Yelp Than OnFoursquare

20 A Fowler (Sep 20 2010)The Wall Street Journal App WatchGeo-Location Checks In At College