LOCAL
Published: October 10, 2008
Get in position to profit off GPS
 

The age of location-based services is just dawning, but very few marketers are taking advantage of this targeting technology. Follow these tips to get in on the ground floor.

Let's face it. When it comes to location-based services (LBS), brands and agencies are getting left behind. This is unfortunate because the idea that "we know where you are and can give you what you need" is very powerful. So it's a shame that there's so little to show in the way of successful branded executions. Yet there are no two ways about it, LBS are taking off -- just not in a way accessible to marketers. This is bad news for those in the industry looking to extend the reach of budgets in a way that lights up consumers.

There are lots of reasons why adoption is unfolding slowly, but the primary reason is this: the manufacturers of GPS navigation units and the developers of the software that runs on them want to retain as much control as possible. In their view, the risk of allowing outsiders in before the platforms reach critical mass outweighs the potential benefits.

Manufacturers understand that the potential market for LBS is huge and they want to lock-in as big of a piece of the market as possible. That's why Nokia bought Navteq, which compiles huge amounts of global information system data which it uses to produce some of the best digital maps available.

Mostly, these maps are used to steer people to a good pizza joint or a gas station on their way from point A to point B (in this context, the term for said pizza joint, ATM, museum or whatever the user is looking for is "point of interest" or "POI"). Together, Nokia and Navteq can deliver everything you might ever try to find on a printed map on a wide range of GPS-supported platforms.

It doesn't take much imagination to see how powerful this platform is for brands eager to be relevant to their audience. So why don't we see more brands pulling out all the stops and diving into LBS headlong? For a lot of marketers and their clients, breaking into an unknown space can be a daunting prospect.

In the spirit of rolling up sleeves, here are six tips for digging into location-based services. But before we dig in, here are two important safety tips:

Out with the old
Much of what's wrong with the online ad industry as a whole applies to location-aware platforms. A marketer's approach to location-based services should not be about serving the same banner ads that get a 1- to 3-percent clickthrough rate to a more targeted audience. Above all else, remember: by nature, these platforms are mobile. People who use them are on the go and are looking for utility, not frivolity. If we hope to have any success, we need to create value in people's lives, so skip the clutter and create experiences that add real utility.

Help make change
As an industry, we need to advocate for more open platforms. The iPhone and the Dash GPS system are steps in the right direction, but there are still a lot of closed platforms out there (particularly in the automotive space). As marketers, it's our responsibility to choose platforms that have our interests at heart. In this case, that means choosing platforms that are not focused on delivering traditionally-styled video and banner ads. The best location-aware platforms will have a publicly available software development kit, but platforms with private kits available only to partners are still acceptable. If a platform's owners simply won't make a kit available to anyone outside their company, don't go there.

Now then. Let's dive in:

1. Basic training.  Location-aware platforms have enough raw or pent-up utility to sell themselves. Marketers need to open the eyes of clients and colleagues to the power of location-aware marketing. Immersion is the first step: buy the devices, install the software on your phone and start using the location-aware applications that are out there right now.

2. Get grounded. POIs are generally treated as media. Some manufacturers sell the ability to overlay a logo on their maps. This is known as a branded POI. Purchasing this type of media does two things: it puts your business on the map, literally, and it lends prominence to a brand by using its logo.

3. Get lifted. Next, start thinking about the aspects of your brand that are tied to physical locations. A single application could show people your nearest location, which locations have special promotions, what those promotions are, what the wait time is at those locations and directions (walking or driving) to get there. The application might even include proximity alerts, so a user is notified when they are within a short distance of a restaurant location. This example may sound obvious, but believe me, very few marketers have even gotten to this point.

4. Make friends. If you haven't already, identify a development partner ASAP. If you don't have the engineering expertise in-house, it makes sense to find local developers who do. Location-aware platforms are hot right now and it may be difficult to find software developers who can take on a project at short notice. Work to build a relationship so you don't waste time when an LBS project comes your way.

Hint: startups are always looking for an opportunity to get involved with well-known brands. It lends credibility to their platform and, with the right start-up, a joint project may be just the thing to extend an agency's capabilities into the realm of LBS.

5. Go iPhone. The iPhone is your best bet, initially, for LBS. It has a decent sized user-base that is growing like crazy. It uses a combination of cell-ID, Wi-Fi positioning and, for the users with the 3G model, GPS, which results in relatively fast and accurate location finding. Best of all, the iPhone has an API for core location, which means your developers won't have to choose between multiple location finding standards.

6. Build something. Even if you don't have a client asking for a location-aware application, build one anyway. It makes sense to build a branded prototype as a way of getting your clients excited about LBS. Your agency will gain invaluable experience which will be helpful in the context of business development.

Remember, it's still the early days. The marketing world has not yet caught up with location-aware technologies. While reporters are salivating over the future of LBS, very few location-aware branded applications are actually in play at the moment (at least here in the U.S.).  So if you get one out the door, you are still ahead of the majority of top marketing execs in the country.

Dan Neumann is a strategist for Organic.

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