GEOMARKETING

GEOSALES: WHAT’S NEXT?

 THE WEB There are 4 BILLION mobile phone owners—that’s half the population of
the planet—and 25% of them access the internet exclusively through
their phones.

HAS GONE Mobile web usage in the U.S. grew 110% last year.

MOBILE 60% of U.S. mobile internet usage is for social networking, followed by
search portals (14%), messaging (8%), and other uses (18%)

MOBILE PHONES HAVE ENRICHED AND EMPOWERED USERS WITH

THE POWER OF THE WEB WHEREVER THEY GO.
 THE Users are now increasingly turning to the web to interact with the world
immediately around them. Local mobile search is growing exponentially at
50% every year, with 1.5 billion local searches every month in 2010.

WORLD IS (U.S. market)

Growth in local mobile content has been led by Online Directories (up

SHRINKING 73%), Restaurants (up 70%), Maps (up 63%), and Movies (up 60%).
(U.S. Market)

MOBILE PHONES HAVE BECOME AN INTEGRAL TOOL FOR HELPING

PEOPLE NAVIGATE THE WORLD AROUND THEM.

Marketers need to know how consumers want to use this tool to interact
with the world. Is search the top priority? Socializing? Gaming? These
elements don’t have to be prioritized over each other, however. Rather, in
geolocation, they can be used in concert to captivate the consumer while
adding value.
 THE WEB, Mobile phone users are turning to geo platforms that COMBINE social
networking, gaming and search for the purpose of local exploration. In
fact, almost half of the current market behavior is gravitating towards

LOCALIZED geolocation. Quite simply, geo platforms allow people to interact with the
people and businesses in their vicinity utilizing:

CROWDSOURCING
Content is created by mobile device users and businesses in the form of
reviews, coupons, activities, etc.

GEO-LOCATION
Platforms track and reflect users’ locales through some form of map or
GPS technology. Think custom Yellow Pages.

SOCIAL PROOF
Platforms allow businesses and users to know what others are doing,
determine how that’s relevant to them and respond accordingly.
WHO WILL FOURSQUARE is the largest geo-networking platform,
encouraging users to “check in” at real sites by
awarding badges, honorifics and discounts.

BE THE Foursquare’s most direct competitor, GOWALLA

encourages users to “check in” at places to unlock

GOOGLE OF virtual items that can be redeemed for actual products.

FACEBOOK PLACES works to create moments of social

GEO? serendipity, as users can locate people or brands in

their networks, check in with them and tell others.

LOOPT allows users to find each other using GPS

tracking, facilitating meetups. Loopt also connects
users to integrated content from Zagat, Citysearch, etc.

YELP is the most popular user-generated review site for

people to learn about the businesses around them via
other users, integrating socializing and check-in
technologies.
 LOOKING SHOPKICK contains a new virtual currency called
“kickbucks” which can be redeemed for Facebook
credits, iTunes Gift Cards, travel vouchers or donations

FOR A to charities.

BRIGHTKITE is a geo-networking platform that awards

CHALLENGE users various levels of badges. It utilizes new

augmented reality technology for mapping.

MYTOWN enables users to build a virtual town or city

with real world-based landmarks and act as a virtual
entrepreneur. The app has been likened to monopoly.

SCVNGR is a game that allows users to complete

location-based challenges and share reviews, earning
points redeemable for retail promotions and discounts.

WHRRL users interact with “societies” of people based

on interests or check ins. Rewards, fun facts and
reviews add to indexed local consumer insight.
THE POWER KNOW EXACTLY WHERE YOUR CUSTOMERS ARE, WHAT THEY’VE
PURCHASED FROM YOU, AND SEND RELEVANT PROMOTIONS AT THE
MOMENT THEY ARE MOST LIKELY TO USE THEM.

OF GEO 92% of phone owners cannot get through a typical day without using their
phones. Mobile phones are within arm’s reach 80% of an average user’s

PLATFORMS day. While still in their infant stage, geo platforms are used by 4% of
online users and growing.

Big players are jumping into the geo-located world. Twitter has added
geo-located tweets, Google has added real-time GPS geo-tracking, and
Facebook recently rolled out robust new geo functionality in its Places
feature.
 GEO- Foursquare and Starbucks teamed up to reward frequent customers with
the Barista badge and officially turned on the rewards side of Starbucks’
experimental loyalty program with the first-ever nationwide mayor special

MARKETING ($1 off Frappucinos).

Some Starbucks locations have even created real-world perks and

BEST recognition for their customers, such as mayor parking spots and signage
for their most loyal followers, demonstrating PR and CRM savvy. This
helps Starbucks forge most lasting connections to its customers.

PRACTICES:
#1
 GEO- Gowalla partnered with Sweet Leaf Tea to entice Austin, Texas-area users
to check-in at various locations to find virtual Sweet Leaf Tea cans
redeemable for real cans at the Sweet Leaf Tea HQ (in Austin).

MARKETING Gowalla also partnered with the InterContinental Hotels Group for its Hit
it Big promotion, which offered rewards such as retail gift cards and

BEST double air miles to guests who stayed multiple nights at any of the
participating IHG hotels family.

PRACTICES: Both brands and Gowalla were able to definitively show the effectiveness
of these marketing initiatives.

#2
 GEO- GEOMARKETING AS CUSTOMER RELATIONS MANAGEMENT (CRM)
Monitor conversations among consumers as well as manage customer
service.

MARKETING IMAGINE: a customer expresses dissatisfaction with a product while

engaging with it in a store. An employee can now approach him moments

STRATEGIES later to address the issue directly.

GEOMARKETING AS INVENTORY MANAGEMENT Use geo platform data

to learn real-time demand for one’s products and adjust for inventory
levels.

IMAGINE: a hotel is underbooked, but you can build buzz by giving away
a free room on a geo platform with instructions for the lucky participant to
visit the hotel spa, restaurant and bar for further discounts.
 GEO- GEOMARKETING AS EXPERIENTIAL BRANDING
Use geomarketing to increase awareness via actual usage, a crux of
branding.

MARKETING IMAGINE: Coca Cola partners with Foursquare to add a “Coca-Cola check-
in”, allowing users to “check-in” whenever they drink a can of Coke,

STRATEGIES broadcast this to other users and make comments.

IMAGINE YOUR BRAND’S GEO POSSIBILITIES…

 LEVERAGE The advantages for organizations are compelling: Geo platforms allow
users to customize their interactions based on their locations and
personal activities.

THE POWER Just as importantly, these tools allow businesses to closely monitor
customer behaviors and tailor actions to serve their specific needs.

OF LOCAL REMEMBER: the reason most marketing messages fail to close

sales is that they are untargeted. Geo platforms allow businesses
to deliver relevance and personality.

Marketers can now identify, reach and reward their most influential
consumers in the most tangible way possible: in real time, on their mobile
phones, when they are at the point of purchase.

THE GAME IS ABOUT TO BE CHANGED. AGAIN.

ARE YOU READY
TO GO LOCAL?
Ludvik + Partners provides value by assessing your
company’s overall marketing theme and determining a
strategy that helps GEO deliver on fundamental objectives.

CREATIVE ADVERTISING REDEFINED.

48W 20th Street / New York, NY 10011 / T: 347.586.9862 / F: 917.351.1214 / www.ludvikplus.com
 1. Erick Schonfeld (Jan 5, 2010) U.S.
SOURCES Mobile Web Usage Grew 110 Percent
Last Year; Apple Dominates, Android
No. 2
2. BRAND AUTOPSY MARKETING
PRACTICE: Digital Discounts
(Foursquare & Gowalla)
3. By Barbara De Lollis (May 19 2010)
USA TODAY: InterContinental Hotels
Group bets on Gowalla for major summer
promo
4. Kipp Bodnar (July 22, 2010)
HubSpot Blog: 11 Mind-Blowing Mobile
Marketing Infographics
5. Sam Taggart and AJ Vaynerchuk
(Apr 21st) VAYNERMEDIA: Early Proof
That Geolocation Marketing Will Succeed
6. By Neil Vidyarthi (June 2nd, 2010)
Social Times Your Social Media Source:
Booyah’s MyTown and Location-Based
Games Are A Possible Marketing
Sensation
7. By Chris Sherman on (March 31, 2010)
Engage Digital: Booyah Partners With
Travel Channel To Promote MyTown
8. Matthieu Soule (July 13, 2010)
Atelier: Booyah's Secret Gaming Recipe
Could Make it the Next Zynga
9. Alycia de Mesa (Oct 9, 2006)
brandchannel: Yelp Networking
10. Jessica Dolcourt (Dec 2, 2009) 18. RICG (July 28, 2010) Geo-location
CNET Reviews: Yelp live in BlackBerry
App World
11. Glenn McBride (04.14.10)
social networks have great potential
for future
19. Dan Frommer (Aug. 17, 2010)
Chicago Now: 3 steps for using Yelp to Business Insider SAI: Facebook's
promote local businesses Location Product Could Be A Bigger
Attack On Google And Yelp Than On
12. Claire Cain Miller (Dec18, 2009) Foursquare
The New York Times: Google Said to Be
Near a Yelp Deal 20. A. Fowler (Sep 20, 2010)
The Wall Street Journal: App Watch:
13.Erick Schonfeld (Jul 14, 2010) Geo-Location Checks In At College
TechCrunch: Groupon, Twitter,
Foursquare, And Yelp Will Convene At
The Social Currency CrunchUp
14.Tom Krazit (Dec 6, 2009)
CNET NEWS Google Favorite Places
coming to window near you
15. GroundTruth (April 21, 2010)
Ground Truth: Half of All Time Spent on
the Mobile Internet is on Social
Networking Sites. Engagement with
mobile social networks surpasses that
of Facebook and MySpace.
16. Brightkite (Oct 15, 2009) Brightkite
Augmented Reality comes to your
iPhone!
17. dna 13 on (Mar 16, 2010)
Geolocation Ups the Ante for Real-Time
CRM