Placecast Teleconference, Mobile and Retailers
I listened in on the Placecast teleconference yesterday, talking about mobile technology driving retail foot traffic. There were some interesting points brought up during the discussion, a few of the most relevant:
- Consumer don’t mind giving away location as long as they get something valuable in return and they gave permission
- Texting is replacing emailing among the younger generation. Like receiving commercial email, receiving commercial texts is not seen as an intrusion as long as it was relevant and consumer gave permission
- In terms of ad delivery, location provides increased relevance… interestingly no one mentioned the consumer predisposition for acting on advertising when out and about… which I think is probably most important
- Going off and building an iPhone app is not for everyone. It’s expensive ($100k is not atypical) and overall smartphone penetration is not at scale. It makes sense for some demos more than others. Good old SMS is cheaper, easier and already at scale.
With respect to mobile meets retail specifically one of the panelists Kathryn Koegel from Primary Impact Research made mention of how consumers were often using mobile devices while IN STORE to get additional product information and reviews and to do price comparisons on the items they were shopping for. Read more
Plethora of Google Location Related Announcements
Google already has an estimated million and a half advertisers, which certainly seems like a hell of a lot to most everybody else, but is it really? What is the total opportunity?
Just to keep this simple, let’s say that there are 15 million brick and mortar retailers in the U.S. (rough estimate) and that Google has 1.5 million advertisers currently as customers. Even if all the existing Google advertisers were brick and mortar advertisers and in the U.S. only they’d still only have 10% penetration of available advertisers. Now in reality over half of Google’s revenue is international and you can bet that a huge chunk of those advertisers are pure e-tailer with no physical store in sight.
There is only so much searching happening on the web and only a small percent of advertisers engaging with Google to try to reach those searchers, so if you’re Google what do you do to speed things along? Well you try to provide more stuff to search for, make it super easy to search for it, and try to engage the 90%+ of advertisers that don’t current engage with you.
So lets look at some of the newly announced efforts made over the past few days, particularly around location and expanding beyond the virtual world to the physical one. Read more
Google and AdMob: Mobile Location Ad Network Coming?
Ok by now everyone has heard the news that Google plunked down $750 million to buy Admob. It’s no secret that Google has big plans in mobile advertising, and AdMob was a leading player in the space so it shouldn’t have been all that surprising.
Tech Crunch had one of the best summaries of why it makes sense and the nice fit between the two companies… the article is definitely worth a read. My two cent summary from that article and others on the deal: Read more
Mobile Search Will Beat and Steal Lunch Money From Mobile Display Advertising
A great blog post over at Local Search News about the mobile local opportunity. Definitely worth the full read, but key take aways for me was the expected shift in ad dollars on mobile to move away from the largely display oriented stuff we see today toward an explosion of mobile search revenue. The Kelsey Group shows display revenue at over 60% of total 2008 mobile ad revenue, but sinking to just under 10% by 2013, mostly as the result of massive search growth from a mere $39 million to a whopping $2.27B or around 70% of all mobile ad spending in just five years.
I dug around to get the latest and greatest, and it looks like in the good old fashioned web world search is about 45% of ad revenue today with premium display close to a 1/3. So Kelsey’s predictions for the mobile world certainly seem to magnify the trend we’ve seen so far on the web with search having an even bigger role and display, a decidedly smaller role. To some degree this makes a lot of sense, since the small footprint of the mobile handset doesn’t leave a lot of room for all that lovely creative ad work, the sight sound and motion and all, and search is simple, quick and to the point which is well suited to the phone.
An even more interesting part, was not just the AMOUNT of search revenue, but the TYPE of searches expected… citing data from Google that mobile searches are 2-3x more often to be local in nature than searches done via a desktop, The Kelsey Group calls for over 1/3 of mobile searches to be “local” in nature in five years, and for over half of that whopping $2.27B in search revenue to be generated from “local” search queries.
Kinda makes you wonder what kind of local stuff all those folks will be searching for on their phones and who will be the benficiaries of that cool $1B+ in local oriented search ad spending. 
New Whrrl & SXSW
Oh how I wish I could have made it to SXSW this year… I think. I’ve been once before for the music part, but have never had the opportunity to experience the technology sessions. I did catch some video of the event online, specifically a bit from diggnation on the new iPhone 3.0 features. See the video above for yourself, but I for one found the level of excitement over the cut and paste feature, to well, be a little disturbing. C’mon folks it’s cut and paste! Felt more like Brad Pitt announced he was getting married to Madonna to a room full of 13 year olds!
Any entrepreneurs out there? Might I suggest starting a rehab progam targeted to those that have OD’d on all things digital… you know they could be forced to use a paper and pencil for a week, and only communicate via a landline phone and watch one of those old tv’s with only six channels and one turn knob to change channels.
What I would have liked to see at SXSW was the LBS advertising panel and to have learned a bit more about the re launch of Whrrl.
For those not familiar with Whrrl, version 1 was a very slick desktop and mobile map oriented application that was largely designed to allow groups of friends to share their experiences about places they have visited. The execution on the idea, was very well done, although the idea required a ton of people to use the application for it to really be valuable, and also was a silo
unto itself in a world where people were already sharing anything and everything with their friends via clear leaders in the social networking world like Facebook and MySpace. As it seems to have turned out, sharing just location oriented items among your social network, may not be a stand alone business at this stage in the game.
The new version of Whrrl, still has location as an important element, but location seems to have taken a back seat to the ability to pull together a number of elements to allow users to paint a more complete story to answer the question of “What are you doing?” The company’s new tagline “What’s your story?” seems designed to allow those that aren’t satisfied with just being able to inform their network of “What they’re doing”, to kick it up a notch and tell us alot more about what they’re doing, in the form of a complete story.
As I had mentioned in an earlier post about Loopt and Whrrl, the one key features I liked in Loopt, was the ease at which I could update Facebook with not only “What I am doing” but with the location element layered in as well. Well with the new version of Whrrl, they’ve now done that and one better by making it simple to push updates to both Facebook and Twitter, along with a link that brings people to the deeper multi dimensional story including location, photos, etc.
I gave it a shot this weekend, even though I am probably not the ideal candidate for Whrrl since I am a horrible storyteller and usually find other more fullfilling stuff to do than to take a bunch of pictures and give them interesting and informative captions throughout my typical day. And as far as I know there is no one else living vicariously through my life that would really care about all that detail anyway.
Like Whrrl version 1, they have got the slick presentation stuff down very well. Much of the navigation throughout the application was very logical and simple and the integration with Facebook Connect worked fine for me with absolutely no problems. I was generally able to update my location, add photos and text to Whrrl with ease (although I did notice that the new FourSquare did a better job of resolving location down to the buildings and businesses directly around me). I did find it aggrevating to put in notes for a post or, to serve as a caption for a picture (which by the way doesn’t accompany the picture very well), only to find that if I wanted to post those comments directly to Facebook that I had to retype them, which on a mobile phone can be very annoying.
I also noticed that people may not get the fact that there is more information off the url that accompanies your Facebook update. I had recently updated my status on Facebook that I was at a popular BBQ restaruant which is part of a chain in Florida… moments later a friend chimed in “which one?”, despite the fact that the full map detail was available one click away.
I think I understand the gap that Whrrl is trying to fill. You can only say so much in 115 characters, and if pictures can say 1,000 words, pictures plus maps should be able to tell an even richer story… which they do indeed. So Whrrl is the platform to plug into social networks for those that don’t want to be restricted by what they want to say.
One additional interesting feature they may want to add would be a graphical display of a timeline related to the story, to not only see “where” and hear about the “what” and “why”, but also to give a better grasp on the “when”.
Only time will tell if this new approach will take off, but it certainly seems to have a better shot than Whrrl version 1.0.
City Sense: If U Like Wall Street, U May Also Like Rikers
I came across Sense Networks last summer when they arrived out of stealth mode and think they’re potentially doing some of the most interesting and exciting stuff in LBS… out of the 212 nonetheless (+40.7-74 didn’t seem as catchy)! take that left coasters!
What the heck do they do you may ask? Well rather than just pasting the long description from their about us page, here is the twitter inspired version: they collect, process and analyze (in real time) anonymous data on the whereabouts of a ton of location aware devices (phones, navigation devices and sensors) in order to uncover useful information related to patterns of historical location data.
Sounds cool huh?!
So, you know how when you go to Amazon to buy a book, and you get the’people who bought that book, also bought this book’? Well on one level Sense Networks is trying to do that for everyone as they traverse the streets that is their city or town… folks that go to the Statue of Liberty, might also like the Empire state Building (aka tourists), folks that go to the meat packing district on Friday nights, might also like Alor Cafe in Staten Island for brunch on Sunday (aka the bridge and tunnel crowd)… you get the idea.
Since I don’t live in SF and don’t know the area very well it’s hard to really tell exactly what the iPhone application can and can’t do at this point, it’s being positioned as a nightlife finder… so presumably if you’re looking to head out to a bar and want a better idea of where and when to go, a quick consulation of CitySense can let you know that Cantina on Sutter is hopping right now, but Lion Pub on Divisadero, well not so much… by the way Sense Networks folks, those Google and Yelp points of interest really need to be layered directly over the map, it would make a huge difference in helping users get their bearings!
But more than anything the CitySense nightlife finder application seems to be more about creating a tangible and visible showcase for the Sense Networks business and technology…but thinking about what’s happening behind the scenes and how it could be used in a variety of applications is where it indeed gets quite interesting.
Nokia Sells a Whole Lotta Phones, Soon a Whole Lotta GPS
Well in case you weren’t already aware, Nokia is quite bullish on LBS these days. A new article out today has Nokia saying that half of the phones it sells will have navigation built in by the 2010 and 2012 timeframe. The company will sell nearly ½ billion phones in 2008 according to estimates and expects 35 million of those to come equipped with GPS (7% of current phone sales). “You will see few N or E series phones without GPS” according to Michael Halbherr, the head of LBS at Nokia. The N series sold 38 million phones and E Series sold 7 million phones last year. The company also expects all phones to have some level of coarse location awareness through either wi-fi or cell tower positioning schemes soon. As you might expect, Nokia seems to see the handset as the center of the LBS universe with storage and processing speed on the handset allowing the phone to provide much of the necessary capabilities for LBS directly rather than being heavily dependent on the phones wireless data connection to off load work to the network, which “overloads the network and degrades the consumer experience” according to Halbherr.
Hmm to throw a GPS chip in 250 million phones at $4 per chip would set them back $1 billion a year, looks like they could just buy the leading GPS manufacturer, SIRF, outright for less than half of that right now!
