1. 1 © 2010 Forrester Research, Inc. Reproduction Prohibited

2. The (Potential) Location-Based Services Revolution
Melissa Parrish, Analyst
@melissarparrish
September 14, 2010
2 © 2010 Forrester Research, Inc. Reproduction Prohibited
2009

3. Agenda
Three categories of location-based services
Growth indicators
Recommendations
What it means
3 © 2010 Forrester Research, Inc. Reproduction Prohibited

4. Philip has a lunch date
4 © 2010 Forrester Research, Inc. Reproduction Prohibited

5. This is NOT the LBS landscape
But it illustrates some of what drives consumers’ fears about location-
based services and technology
Overwhelming and intrusive advertising
Constant "shouting" of messages
No opt-in, no opt-out
Misuse of private information
5 © 2010 Forrester Research, Inc. Reproduction Prohibited

6. Marketers are interested in 3
LBS categories: mapping &
search, shopping, and social
6 © 2010 Forrester Research, Inc. Reproduction Prohibited

7. Mapping, Navigation & Search
7 © 2010 Forrester Research, Inc. Reproduction Prohibited

8. Mapping mobile adoption
Overall, 13% of online cell phone owners look up
directions or maps at least monthly
Among online smart-phone owners, this number
increases to 50%
Among smart-phone owners, 31% have used an
application for maps within the past three months.
8 © 2010 Forrester Research, Inc. Reproduction Prohibited

9. Internet is preferred local search method across
generations
9 © 2010 Forrester Research, Inc. Reproduction Prohibited

10. Top 3 search topics include “Local”
10 © 2010 Forrester Research, Inc. Reproduction Prohibited

11. Mobile Search Usage Is Growing
Mobile Search Users % Of Mobile Internet Users
Source: Forrester Research Mobile Advertising Forecast, 2010-2015 (US)
11 © 2010 Forrester Research, Inc. Reproduction Prohibited

12. Mapping, navigation & search takeaways
Extension of a long-standing, non-digital consumer behavior
May or may not be mobile-based
Already part of SEM mix for many marketers
Consumer adoption linked to increased access to more powerful hardware
Forrester expects 74% of mobile internet users to perform 13 mobile
searches per month by 2015
12 © 2010 Forrester Research, Inc. Reproduction Prohibited

13. Shopping
ShopAlerts
13 © 2010 Forrester Research, Inc. Reproduction Prohibited

14. 28% of mobile online users are interested in some form
of discounts or promotions
14 © 2010 Forrester Research, Inc. Reproduction Prohibited

15. Only 3% have requested a
mobile coupon, and only
another 3% have used one
15 © 2010 Forrester Research, Inc. Reproduction Prohibited

16. Improved discoverability & convenience will drive
adoption
16 © 2010 Forrester Research, Inc. Reproduction Prohibited

17. Social
17 © 2010 Forrester Research, Inc. Reproduction Prohibited

18. Tons of buzz, but not tons of users…..yet
18 © 2010 Forrester Research, Inc. Reproduction Prohibited

19. But those who do use LBSN are highly influential
19 © 2010 Forrester Research, Inc. Reproduction Prohibited

20. Young, well-educated males use LBSNs
20 © 2010 Forrester Research, Inc. Reproduction Prohibited

21. And they use other LBS more than other consumers
too
21 © 2010 Forrester Research, Inc. Reproduction Prohibited

22. Advice for marketers
Companies with a culture and budget that supports experimentation should start
testing now
Others should jump in when scale matches business objectives
Explore all LBSNs
Create incentives for new customers
Offer discounts and coupons
Reward loyal customers
22 © 2010 Forrester Research, Inc. Reproduction Prohibited

23. Agenda
Three categories of location-based services
Growth indicators
Recommendations
What it means
23 © 2010 Forrester Research, Inc. Reproduction Prohibited

24. Mobile is becoming
increasingly important and
marketers are taking notice
24 © 2010 Forrester Research, Inc. Reproduction Prohibited

25. Mobile Internet and Internet-Centric Phone Usage Is Growing
% Mobile Internet Users
Mobile Internet Users (1x/mo) Using Internet-Centric Phones
Source: Forrester Research Mobile Advertising Forecast, 2010-2015 (US)
25 © 2010 Forrester Research, Inc. Reproduction Prohibited

26. Mobile marketing is growing, too
26 © 2010 Forrester Research, Inc. Reproduction Prohibited

27. Agenda
Three categories of location-based services
Growth indicators
Recommendations
What it means
27 © 2010 Forrester Research, Inc. Reproduction Prohibited

28. How can you ensure the growth
of collaboration between
services and marketers?
28 © 2010 Forrester Research, Inc. Reproduction Prohibited

29. Address users’ needs
Allay privacy concerns
Integrate marketers in a way that presents their messages and offerings
as true service
Think about utility in addition to convenience
29 © 2010 Forrester Research, Inc. Reproduction Prohibited

30. Consider the marketers’ perspective
Majority look for scale
Case studies help close the deal
Help educate them about how it fits into the marketing mix
30 © 2010 Forrester Research, Inc. Reproduction Prohibited

31. Agenda
Three categories of location-based services
Growth indicators
Recommendations
What it means
31 © 2010 Forrester Research, Inc. Reproduction Prohibited

32. Imagine Philip’s lunch date again, but this time…
32 © 2010 Forrester Research, Inc. Reproduction Prohibited

33. Thank you
Melissa Parrish
+1 212.857.0784
mparrish@forrester.com
@melissarparrish
www.forrester.com
© 2009 Forrester Research, Inc. Reproduction Prohibited