Who are the players of location-based services? I have attempted to put together the location-based services ecosystem in the following value chain for our discussion.
- Map Data Providers provide:
- the base layer map data.
- enriched hyperlocal POI (point of interest) data.
- Application Software Providers
- technology partners who build upon the map data providers' base layer map.
- develop the user interface to work cross-platform, with customized features.
- Advertising Network Providers
- provide the connectors to ads in the LBS app.
- and the field salesforce to sell the ads to brands.
- Location-Based Content and Services Providers include
- backend partners who serve out hyperlocal and relevant ads on behalf of merchants in partnered web and mobile sites.
- front-end eShopping partners who vend free vouchers, paid eCoupons, aggregate deals.
- Access and Provisioning Providers (Carriers / Operators) provide
- affordable data plans to consumers and enterprises.
- promotions in various marketing touch-points (Retail, SMS, MMS, PC internet, EDMs, DMs, Print, TV) to their targeted customer base.
- Device Providers
- work with the Carriers / Operators to provide out of box experience through preloading of the location-based services apps.
- comprise the N-screens of mobile devices across PC, laptops, tablets, smartphones etc.
What are the revenue streams in location-based services?
Through Strategic Analytics, ABI research and various lit search, there are 3 main pillars of revenue streams in location-based services - some more immediately relevant, whilst others like community set to grow in the next 5 years.
- more immediate rational driver, referring to search, turn by turn navigation, personal tracking
- for parents who would like to track their kids
- for exploring and looking up places of interests and getting there on car or on foot
- for enterprises for fleet management
- location-based eShopping deals
- restaurant booking
- mobile advertising
- social media integration leading to crowd-sourced sharing of recommendations
- peer to peer value exchange
- enabling more engagement with consumers through gamification
Before ending this post, I will leave you now with
2 real-world examples of how location-based services bring value and innovation to businesses in the ecosystem.
(1) Nokia Thailand Foursquare Campaign
Here is a first in the world campaign when a phone manufacturer (Nokia), a local operator/carrier (DTAC) and local Thai retailers came on board and collaborated to provide brand awareness of Foursquare check-ins with Nokia smartphones, value to DTAC consumers and driving real-world traffic to the retailers. (Disclosure: I was involved in the working team for this campaign with my Nokia Thailand colleagues during my career at Nokia)
(2) Nokia Gift Vending Machine Social-Location-Mobile (So-Lo-Mo) innovation
A pretty neat program which provided real-world treats to people who checked in. Delight: you never know what you are going to get!
- How do the players in location-based services differ in your market?
- How do the campaign mechanics from location-based apps in your markets provide value as ancillary channels for businesses?
engage with me at @nelsonwee
1. Infographic: Location-Based Social Media – Every Move You Make
2. Location Based Services Usage & Perception Survey from Microsoft