Telmap Shares Insights on the Future of LBS
Covered by TechBubbles
February 12, 2013
By Tsipi Joseph, Director of Marketing at Telmap
The location-based services (LBS) industry has changed over the course of 2012, and the industry is expected to continue to evolve throughout 2013.
One of the major developments in 2012 has been the shift of providing users with “more than navigation” via the supplementation of a host of value-added location-based services which serve to enrich the user’s experience. And with the app market becoming ever more saturated the demand for “more than navigation” is greater than ever.
This new found user demand means that many location-based service providers have been adjusting their business models accordingly in 2012. Part of this adjustment has opened the door for new monetisation channels such as location-based advertising (LBA) and location-based commerce (LBC), as well as maturing aspects such as social media integration. The New Year is bearing witness to the culmination of all the above value-added services, enabling users to take advantage of these breakthroughs by using their LBS app as a one stop shop for all things “on-the-go”.
One of the monetisation channels, location-based commerce (LBC), constitutes all types of location-enabled commercial offerings such as coupons, vouchers, bookings and premium in-app content. This is especially relevant in the current economic climate, as being made aware of vouchers & coupons in their respective neighbourhoods can help users find bargains whilst shopping for both necessities and luxuries. Furthermore, this advance also helps local businesses by driving traffic through the door and therefore fundamentally increasing revenue.
Location-based commerce (LBC) in the form of couponing provides a compelling win-win for all parties, from the business owner, the publisher and ultimately the mobile end user. A recent report from Juniper Research has found that the number of consumers receiving coupons via mobile devices is expected to rise by 30 per cent next year to more than 500 million people. This is likely to be further fueled by the continued development of LBS applications integrating mobile commerce into their primary service, and therefore creating a more sophisticated offering overall.
Similarly, location-based advertising (LBA) harnesses the power to benefit all parties of the value-chain, from retail brands (big and small), advert publishers, LBS providers, and of course – the end user. As a matter of fact, most major brands consider mobile as an integral part of their digital advertising spend, driven by the proliferation of smartphones and their constantly-increasing user base. LBA is a marketing mix comprised of banners, branded widgets, branded points of interest on-map and sponsored search results. Contextualising an advert by taking into account a user’s intent based on their location and search term is a milestone in the value of advertising. These context-based adverts are more likely to result in tangible user actions and are therefore considered to be the holy grail of advertising potential.
Throughout 2013, we can expect location-based advertising and commerce to become even more sophisticated, relevant and contextualized; thereby becoming an essential part of users’ day-to-day lives. With people becoming more dependent on their smartphones, users are more likely to engage with and appreciate the benefits derived from being exposed to LBA and LBC as they perceive it as a conduit to inform them of promotions, offers and events in their local surroundings. All this allows users to find and take advantage of nearby deals, with the added option of being able to initiate a navigation session that will allow them to “drive” or “walk” to the respective retailer.
With local shops and businesses able to track the footfall generated by these schemes it seems obvious that successful endeavours will continue to grow in popularity benefitting the businesses, the end user and the service providers. Here’s to 2013- a location based future!
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