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Context Platforms
Connecting digital and physical locations
                   MetaPlaces - September 22, 2009
                Anne Bezançon, Founder & President




                            © 1020 Inc., Proprietary and Confidential, 2009
Agenda

Introduction
Who is Placecast?
The Consumer Perspective
The Marketer Perspective
How Placecast does it




                           © 1020 Inc., Proprietary and Confidential, 2009
This is not about positioning




http://www.mobilitysite.com/wp-content/uploads/2008/02/a-gps.jpg

                                                               © 1020 Inc., Proprietary and Confidential, 2009
This is not about “Local-Local”




                © 1020 Inc., Proprietary and Confidential, 2009
So what IS a “Context Platform”?

• Context is what enables:
  – Relevance for the end-user/consumer
     • in Place
     • In Time
     • According to Their Preferences
  – Performance for the Marketer/Advertiser/Content
    Publisher
     • Reach & Scale
     • Operational cost
     • Metrics (CPM, CPC, CPA, registrations, downloads,…)


• A Context Platform must translate and match
  both sets of needs

                                                   © 1020 Inc., Proprietary and Confidential, 2009
Agenda

Introduction
Who is Placecast?
The Consumer Perspective
The Marketer Perspective
How Placecast does it




                           © 1020 Inc., Proprietary and Confidential, 2009
Vision & Mission




       “Placecast enables multi-location
 businesses to use digital marketing to
drive customers to physical locations.”




                            © 1020 Inc., Proprietary and Confidential, 2009
About 1020 Placecast
History                           Technology                          Business Units




Founded 4 years ago in San      Proprietary place-based               ADVERTISING
Francisco to develop a          technology can digest any           Placecast is the only location-based
platform with location at its   expression of location and          advertising solution to find specific
core                            formulate a normalized output       audiences and deliver dynamic
                                – Examples of location data         messaging across web & mobile
Fast-growing company              include Lat/Long, Zip Code,       > Nokia Interactive
dedicated to providing            Neighborhood, City, etc.
location-based advertising,                                            MARKETING
marketing and software          Normalized data output can be       ShopAlerts is the only scalable
services solutions              utilized for content serving        location-based marketing solution
                                purpose as well as location-based   available to Brands, opt-in based.
300 Publishers, reaching 120    advertising/marketing               > Alcatel-Lucent
Million unique users/month
                                                                      LICENSING (SaaS)
                                                                    > NAVTEQ

                                                                     © 1020 Inc., Proprietary and Confidential, 2009
Our clients: Top Brands & Agencies
Advertisers




Agencies




                                  © 1020 Inc., Proprietary and Confidential, 2009
Placecast is leading the charge




                 © 1020 Inc., Proprietary and Confidential, 2009
Agenda

Introduction
Who is Placecast?
The Consumer Perspective
The Marketer Perspective
How Placecast does it




                           © 1020 Inc., Proprietary and Confidential, 2009
High Interest Among Younger Consumers
“How interested are you in receiving opt-in alerts on your cell
phone for favorite establishments?”

Top 2 Box Scores                               Base: cell-phone owners with
                                               favorite establishments
                                               N = 1,687




                                               Source: Harris Poll Online July 20-22, 2009


                                               © 1020 Inc., Proprietary and Confidential, 2009
Consumer receptivity and demand is growing

70%
                 Local Alerts
60%

                          Special Offers
50%
                                      Currently use this location based
                                      service (n=982)
40%



30%



20%                                   Would use this location based
                                      service if I knew about it or knew
                                      how to access it (n=1,662)
10%



0%




                                      Source: Compete Inc. research, 2009




                                    © 1020 Inc., Proprietary and Confidential, 2009
Alert Shopper Research : Real People
                   6-part research study
                   Conducted in conjunction with
                   Harris Interactive
                   In-person and third-party
                   research
                   Focus: consumer shopping
                   habits and interest around the
                   use of mobile devices and alerts
                   when shopping
                   Installments available on the
                   Placecast blog:
                   http://blog.placecast.net




                        © 1020 Inc., Proprietary and Confidential, 2009
Agenda

Introduction
Who is Placecast?
The Consumer Perspective
The Marketer Perspective
How Placecast does it




                           © 1020 Inc., Proprietary and Confidential, 2009
© 1020 Inc., Proprietary and Confidential, 2009
© 1020 Inc., Proprietary and Confidential, 2009
© 1020 Inc., Proprietary and Confidential, 2009
LBA vs. LBM
Mobile Advertising: delivering text or          Mobile Marketing: delivering requested
images attached to desired content on mobile    promotional messages over SMS/MMS
web pages or in applications where user views   channels directly to potential customers
ads in exchange for free/subsidized content.    who have opted in to receive them.
Used by marketers to acquire new customers.     Primarily used by marketers as retention
                                                tool.

                         No opt-in                 Opt-in
                                                                          The GAP has your
                         Viewed w/
                                                   Requested              perfect summer look!
                         requested                                        Call 415-501-9757.
                                                   content
                         content                                          We’ll grab your size in
                                                                          the newest styles at
                         Graphical                 Text                   183 Mill Plz, Walnut
                         content                   content                Creek.


                         Mobile                    SMS delivery;
                         Web/App                   may include
                         Delivery                  mobile web




   Advertising growing from                         Marketing growing from
 $600M in 2009 to $5B in 2013                   $6.4B in 2009 to $14.2B in 2012

                                                               © 1020 Inc., Proprietary and Confidential, 2009
So what do advertising agencies do?

…organization acting as an agent for
 a producer of goods or services (an
  advertiser) devoted to developing
 and placing advertising in order to
 further the acceptance of a brand
      product, service, or idea.
                     – Nielsen Media
                           © 1020 Inc., Proprietary and Confidential, 2009
What do advertisers look for?

Reach & Frequency
  how many users can I reach and how often?

Target Audience
  what are the age, gender, location, income, ethnicity,
  education of this audience?

Audience Attitudes
  shifting audience attitudes; awareness, favorability,
  purchase intent




                                        © 1020 Inc., Proprietary and Confidential, 2009
How do agencies speak about targeting?
Targeting Variable What is it?
                   Ads are targeted to related content being viewed by
   Contextual      consumers; content usually matches the advertiser's
                   business.
                   Ads are targeted to content that has a high composition
                   of a specific market segment (regardless if there's a
  Demographic      contextual fit). Demographics include professions,
                   industry, company size, gender, age, and household
                   income.
                   Ads are targeted to specific geographical areas based on a
   Geographic      user's Zip Code, or the local content he's viewing
                   Ads are targeted to consumers based on the information
   Registration    they provided during registration.
                   Ads are targeted to consumers based on previous activity
   Behavioral      (past content, purchase, or search history).

                                                     © 1020 Inc., Proprietary and Confidential, 2009
What does a campaign look like?
                                                                                LAUNCH



 Project         Strategy       Media                                Traffic            Optimization              Final
                                                  Negotiations/
Initiation                     Planning          Media Purchase                                                  Results
• Scope         • Approach     • Initial site/                    • Test creative      • Pair-down              • Reports
                                 provider list                                           providers
• Objectives    • Target                                          • Send creative                               • Analysis &
                  market       • RFP                                and ad tags        • Refine creative          insights
• Measures                                          Creative                             and messaging
• Budget        • Vehicle(s)                       Production     • Special needs                               • Next steps
                                                                                       • Focus ad units



  2-3 wks         2-3 wks        2-4 wks            4-6 wks         2 - 3 wks                Varies               Varies




               6 – 20 weeks just to launch
               2 – 6 months of actual campaign run time
               Ongoing manual optimization of the campaign to
               maximize performance

                                                                                    © 1020 Inc., Proprietary and Confidential, 2009
Yes, it’s complicated!
                  © 1020 Inc., Proprietary and Confidential, 2009
LBA Case Study: Avis-Budget
                Web + Mobile
                                            Challenge
                                            • Reach consumers 25-54 in need of a long-term rental
                                              vehicle (Avis Vehicle Replacement Program)
Localized Web                               • Generate awareness for off-airport locations
                                            • Deliver leads and branding objectives


                                            Solution
                                            • Cross-channel campaign: web and mobile targeting local
                                              listings and weather sites
                                            • Dynamic messaging: map the nearest off-airport rental
                                              location into the ad unit
                                            • Click-to-book (web) or click-to-call (mobile)


                                            Results
                     Localized Mobile
                                            • Increased relevancy for campaign through a single ad unit
    “Adding local relevance to a national
   campaign delivered much better results   • 50% lift in CTRs (dynamic vs. static messaging)
     without creating extra work for us.”   • 124% increase in click-to-call rate on mobile
     [Raashee Gupta, LM&O Advertising]


                                                                            © 1020 Inc., Proprietary and Confidential, 2009
LBM: ShopAlerts geo-triggered SMS




• Consumer opts in to receive messages from their
  favorite retail brand
• Custom Geo-fences are set around locations/POIs
• Location-specific messages are sent to the user
• Consumer control: opt-in/out, preferences,
  frequency of messages

                                                    © 1020 Inc., Proprietary and Confidential, 2009
Agenda

Introduction
Who is Placecast?
The Consumer Perspective
The Marketer Perspective
How Placecast does it




                           © 1020 Inc., Proprietary and Confidential, 2009
Translating Location Data into Place

 Complex                     Venue Data
Unstructured Data           Content | Reviews
                      i.e. NAVTEQ, Eventful, Zvents




                              Local Tags
                     Metadata| Geo-tagged Content
                          i.e. Flickr, GeoMods

                                                                  PLACE
                         Demographic Data
                    HH income | HH size | age | gender
                    education | ethnicity | employment




                     Consumer Segmentation
   Simple             lifestyle | consumer behaviors
                               types of people
  Structured Data




                                                         © 1020 Inc., Proprietary and Confidential, 2009
What about privacy?
• Location can be the best advertising option for privacy
   – Neighborhood level (Cell-ID/EOTD level) positioning is good enough and
     avoids privacy issues
   – WAP portals can take advantage with user-entered ZIP or even airport
     code
   – Billing ZIP code still somewhat useful
• CTIA standards on LBS are good for business but
  narrow in scope
   – Only apply to situations where an LBS user is identified or his or her
     location information is linked to other personally identifiable information
• Beware of behavioral targeting
   – Legal precedent set on the web with NebuAd, AdZilla
• Adhere to all MMA Guidelines (opt-in, etc.)



                                                        © 1020 Inc., Proprietary and Confidential, 2009
Questions?


  Anne Bezançon

  1020 Placecast
anne@placecast.net



  Thank you!


                  © 1020 Inc., Proprietary and Confidential, 2009

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Anne Bezancon - Placecast

  • 1. Context Platforms Connecting digital and physical locations MetaPlaces - September 22, 2009 Anne Bezançon, Founder & President © 1020 Inc., Proprietary and Confidential, 2009
  • 2. Agenda Introduction Who is Placecast? The Consumer Perspective The Marketer Perspective How Placecast does it © 1020 Inc., Proprietary and Confidential, 2009
  • 3. This is not about positioning http://www.mobilitysite.com/wp-content/uploads/2008/02/a-gps.jpg © 1020 Inc., Proprietary and Confidential, 2009
  • 4. This is not about “Local-Local” © 1020 Inc., Proprietary and Confidential, 2009
  • 5. So what IS a “Context Platform”? • Context is what enables: – Relevance for the end-user/consumer • in Place • In Time • According to Their Preferences – Performance for the Marketer/Advertiser/Content Publisher • Reach & Scale • Operational cost • Metrics (CPM, CPC, CPA, registrations, downloads,…) • A Context Platform must translate and match both sets of needs © 1020 Inc., Proprietary and Confidential, 2009
  • 6. Agenda Introduction Who is Placecast? The Consumer Perspective The Marketer Perspective How Placecast does it © 1020 Inc., Proprietary and Confidential, 2009
  • 7. Vision & Mission “Placecast enables multi-location businesses to use digital marketing to drive customers to physical locations.” © 1020 Inc., Proprietary and Confidential, 2009
  • 8. About 1020 Placecast History Technology Business Units Founded 4 years ago in San Proprietary place-based ADVERTISING Francisco to develop a technology can digest any Placecast is the only location-based platform with location at its expression of location and advertising solution to find specific core formulate a normalized output audiences and deliver dynamic – Examples of location data messaging across web & mobile Fast-growing company include Lat/Long, Zip Code, > Nokia Interactive dedicated to providing Neighborhood, City, etc. location-based advertising, MARKETING marketing and software Normalized data output can be ShopAlerts is the only scalable services solutions utilized for content serving location-based marketing solution purpose as well as location-based available to Brands, opt-in based. 300 Publishers, reaching 120 advertising/marketing > Alcatel-Lucent Million unique users/month LICENSING (SaaS) > NAVTEQ © 1020 Inc., Proprietary and Confidential, 2009
  • 9. Our clients: Top Brands & Agencies Advertisers Agencies © 1020 Inc., Proprietary and Confidential, 2009
  • 10. Placecast is leading the charge © 1020 Inc., Proprietary and Confidential, 2009
  • 11. Agenda Introduction Who is Placecast? The Consumer Perspective The Marketer Perspective How Placecast does it © 1020 Inc., Proprietary and Confidential, 2009
  • 12. High Interest Among Younger Consumers “How interested are you in receiving opt-in alerts on your cell phone for favorite establishments?” Top 2 Box Scores Base: cell-phone owners with favorite establishments N = 1,687 Source: Harris Poll Online July 20-22, 2009 © 1020 Inc., Proprietary and Confidential, 2009
  • 13. Consumer receptivity and demand is growing 70% Local Alerts 60% Special Offers 50% Currently use this location based service (n=982) 40% 30% 20% Would use this location based service if I knew about it or knew how to access it (n=1,662) 10% 0% Source: Compete Inc. research, 2009 © 1020 Inc., Proprietary and Confidential, 2009
  • 14. Alert Shopper Research : Real People 6-part research study Conducted in conjunction with Harris Interactive In-person and third-party research Focus: consumer shopping habits and interest around the use of mobile devices and alerts when shopping Installments available on the Placecast blog: http://blog.placecast.net © 1020 Inc., Proprietary and Confidential, 2009
  • 15. Agenda Introduction Who is Placecast? The Consumer Perspective The Marketer Perspective How Placecast does it © 1020 Inc., Proprietary and Confidential, 2009
  • 16. © 1020 Inc., Proprietary and Confidential, 2009
  • 17. © 1020 Inc., Proprietary and Confidential, 2009
  • 18. © 1020 Inc., Proprietary and Confidential, 2009
  • 19. LBA vs. LBM Mobile Advertising: delivering text or Mobile Marketing: delivering requested images attached to desired content on mobile promotional messages over SMS/MMS web pages or in applications where user views channels directly to potential customers ads in exchange for free/subsidized content. who have opted in to receive them. Used by marketers to acquire new customers. Primarily used by marketers as retention tool. No opt-in Opt-in The GAP has your Viewed w/ Requested perfect summer look! requested Call 415-501-9757. content content We’ll grab your size in the newest styles at Graphical Text 183 Mill Plz, Walnut content content Creek. Mobile SMS delivery; Web/App may include Delivery mobile web Advertising growing from Marketing growing from $600M in 2009 to $5B in 2013 $6.4B in 2009 to $14.2B in 2012 © 1020 Inc., Proprietary and Confidential, 2009
  • 20. So what do advertising agencies do? …organization acting as an agent for a producer of goods or services (an advertiser) devoted to developing and placing advertising in order to further the acceptance of a brand product, service, or idea. – Nielsen Media © 1020 Inc., Proprietary and Confidential, 2009
  • 21. What do advertisers look for? Reach & Frequency how many users can I reach and how often? Target Audience what are the age, gender, location, income, ethnicity, education of this audience? Audience Attitudes shifting audience attitudes; awareness, favorability, purchase intent © 1020 Inc., Proprietary and Confidential, 2009
  • 22. How do agencies speak about targeting? Targeting Variable What is it? Ads are targeted to related content being viewed by Contextual consumers; content usually matches the advertiser's business. Ads are targeted to content that has a high composition of a specific market segment (regardless if there's a Demographic contextual fit). Demographics include professions, industry, company size, gender, age, and household income. Ads are targeted to specific geographical areas based on a Geographic user's Zip Code, or the local content he's viewing Ads are targeted to consumers based on the information Registration they provided during registration. Ads are targeted to consumers based on previous activity Behavioral (past content, purchase, or search history). © 1020 Inc., Proprietary and Confidential, 2009
  • 23. What does a campaign look like? LAUNCH Project Strategy Media Traffic Optimization Final Negotiations/ Initiation Planning Media Purchase Results • Scope • Approach • Initial site/ • Test creative • Pair-down • Reports provider list providers • Objectives • Target • Send creative • Analysis & market • RFP and ad tags • Refine creative insights • Measures Creative and messaging • Budget • Vehicle(s) Production • Special needs • Next steps • Focus ad units 2-3 wks 2-3 wks 2-4 wks 4-6 wks 2 - 3 wks Varies Varies 6 – 20 weeks just to launch 2 – 6 months of actual campaign run time Ongoing manual optimization of the campaign to maximize performance © 1020 Inc., Proprietary and Confidential, 2009
  • 24. Yes, it’s complicated! © 1020 Inc., Proprietary and Confidential, 2009
  • 25. LBA Case Study: Avis-Budget Web + Mobile Challenge • Reach consumers 25-54 in need of a long-term rental vehicle (Avis Vehicle Replacement Program) Localized Web • Generate awareness for off-airport locations • Deliver leads and branding objectives Solution • Cross-channel campaign: web and mobile targeting local listings and weather sites • Dynamic messaging: map the nearest off-airport rental location into the ad unit • Click-to-book (web) or click-to-call (mobile) Results Localized Mobile • Increased relevancy for campaign through a single ad unit “Adding local relevance to a national campaign delivered much better results • 50% lift in CTRs (dynamic vs. static messaging) without creating extra work for us.” • 124% increase in click-to-call rate on mobile [Raashee Gupta, LM&O Advertising] © 1020 Inc., Proprietary and Confidential, 2009
  • 26. LBM: ShopAlerts geo-triggered SMS • Consumer opts in to receive messages from their favorite retail brand • Custom Geo-fences are set around locations/POIs • Location-specific messages are sent to the user • Consumer control: opt-in/out, preferences, frequency of messages © 1020 Inc., Proprietary and Confidential, 2009
  • 27. Agenda Introduction Who is Placecast? The Consumer Perspective The Marketer Perspective How Placecast does it © 1020 Inc., Proprietary and Confidential, 2009
  • 28. Translating Location Data into Place Complex Venue Data Unstructured Data Content | Reviews i.e. NAVTEQ, Eventful, Zvents Local Tags Metadata| Geo-tagged Content i.e. Flickr, GeoMods PLACE Demographic Data HH income | HH size | age | gender education | ethnicity | employment Consumer Segmentation Simple lifestyle | consumer behaviors types of people Structured Data © 1020 Inc., Proprietary and Confidential, 2009
  • 29. What about privacy? • Location can be the best advertising option for privacy – Neighborhood level (Cell-ID/EOTD level) positioning is good enough and avoids privacy issues – WAP portals can take advantage with user-entered ZIP or even airport code – Billing ZIP code still somewhat useful • CTIA standards on LBS are good for business but narrow in scope – Only apply to situations where an LBS user is identified or his or her location information is linked to other personally identifiable information • Beware of behavioral targeting – Legal precedent set on the web with NebuAd, AdZilla • Adhere to all MMA Guidelines (opt-in, etc.) © 1020 Inc., Proprietary and Confidential, 2009
  • 30. Questions? Anne Bezançon 1020 Placecast anne@placecast.net Thank you! © 1020 Inc., Proprietary and Confidential, 2009