MforMobileFactPack V2

The Hottest Predictions for 2012
4th ANNUAL
Mobile Fact Pack
Location Business Summit USA

Conference & Exhibition
October 16-17, San Jose, 2012
Designed specically to help you pinpoint key LBS business models and highlight services that can generate signicant revenue. The 4th annual Location business Summit USA is the biggest meeting place for hands on knowledge and networking for the mobile and location industry. M for Mobile is proud to bring you the updated and latest stats and facts you need to know for 2012 and beyond, for the mobile, location and navigation industry, in association with the launch of the Location Business Summit USA.
Mobile Fact Pack The Hottest Predictions for 2012
Mobile has both caused and enabled an irrevocable change in consumer behaviour
Source: Mobile nds its USP in contextual relevance Paul Berney, CMO & Managing Director EMAE, MMA
Every interaction via mobile raises our expectations Digital Natives/Generation Y/ Millennials/Connected Consumers have higher expectations
The age of the customer!

Sources of dominance
Age of the consumer Empowered buyers demand a new level of customer obsession
2010-?
Age of information Connected PCs and supply chains mean those who control information ow dominate
Contenders include Facebook, IBM, Best Buy and Apple
Age of distribution Global connections and transportation systems make distribution key Age of manufacturing Mass manufacturing makes industrial powerhouses successful
1990-2010
Amazon.com, Google, Intuit, MBNA
1960-1990
Walmart, Toyota, UPS, CSX
1900-1960
Successful companies
Ford, RCA, GE, Boeing, P&G, Sony
Source: June 6 2011, Competitive Strategy In The Age Of The Customer Forrester report
Contextual Relevance is the USP of mobile when dealing with the digital generation
Mobile is changing our behaviour at every stage of the customer lifecycle
Consumers dont need (want) marketing
Source: Strange PR
Preferred source of product & service information

Consumer ratings Consumer reviews Companys website Call centre Email Video clip Live chat Companys Facebook Mobile App Online advertisement Companys Twitter 0% 9% 8% 7% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 15% Social media sources 34% 30% 50% 47% 45% 63% 62%
Source: Nielsen Source: June 6 2011, Competitive Strategy In The Age Of The Customer Forrester report
31%
researched a purchase on their device before buying in-store
Source: Jiwire
Shopping...
Which one of the following have you ever used your mobile phone for?
To check store opening hours To locate a nearby store to purchase a specic product To compare physical store prices with online prices, when shopping in a store To check in-store availability of a product To read customer reviews of a product To check on the status of an order To look up online product information while shopping in a store 0% 4% 14% 4% 13% 3% 12% 6% 12% 4% 10% 20% 30% Social media sources Online Europeans 22% 8% 19% 7% 15% Base 13,869 European online adults who own mobile phones and 986 European frequent online buyers who own mobile phones (multiple responses accepted).
Source: European Technographics Retail, customer experience and Travel online survey, Q3 2010
Mobile amplies the power of customer review sites
owners said they had abandoned a purchase in-store after seeing a negative review on their mobile
34% of US smartphone
Mobile connects fans in multiple locations
Mobile changes the way we interact with our environment... ...and inuences our decisions based on that location
Customer journeys are not linear...

Information gathering, shopping
Active evaluation
Loyalty loop Initial consideration set Trigger Postpurchase experience

Ongoing exposure
Moment of purchase
The mobile consumer expects:

Convenience Multi-channel Real time Dialogue Engagement Control
Consumers are mobile Your
brand must follow them
70-80% of business data

has a geographic content
Location, Location, Location Vikas Arora, Solutions Specialist EMEA, Microsoft
The understanding of location enables:

More relevant search results An opportunity for location-based advertisement and new business ideas An additional dimension to search for and discover information Deep insights in business data A common operational picture... ...and maps are the canvas to visualise this knowledge
Location, Location, Location Vikas Arora, Solutions Specialist EMEA, Microsoft

The smartphone is changing the time scale of location
A new positioning generation every 10 months
iPhone 3G iPhone 2G Compass A-GPS Celluar tower triangulation (Google) WiFi positioning 3-axis accelerometer
June 2007 Global Evolution of Location Frederic Bruneteau, CEO, Ptolemus
iPhone 4S iPhone 4
iPhone 3GS Gionass Gyroscope Compass A-GPS Celluar tower triangulation (Google) WiFi positioning 3-axis accelerometer Gyroscope Compass A-GPS Celluar tower triangulation (Google) WiFi positioning 3-axis accelerometer
October 2011
A-GPS Celluar tower triangulation (Google) WiFi positioning 3-axis accelerometer
Celluar tower triangulation (Google) WiFi positioning 3-axis accelerometer

Global smartphone sales (millions)
1,200m
1,000m
800m Millions
600m
400m
200m
0m
2010
2011
2012
2013
2014
2015
2016
Global Evolution of Location Frederic Bruneteau, CEO, Ptolemus
The smartphone is
becoming our personal server to the geo-located world
Location-enabled phones:
Smartphones now exceed half of total phone sales in Europe and North America Location-enabled phone and smartphone are becoming synonyms Number of location-enabled phones sold will again double within ve years thanks to a take-o in China and India Single purpose devices such as pocket cameras and PNDs need to nd a new positioning

The smartphone can threaten single-purpose devices such as Octo Telematics Clear Box for Pay As You Drive insurance
Source: PTOLEMUS Insurance Telematics Study Source: Global Evolution of Location Frederic Bruneteau, CEO, Ptolemus

LBA is the next wave
Although discussed for many years only now making an appearance Hype turns to reality and The next big step after SMS Today, location location use is still fairly primitive and limited revenues Location has to be integrated intelligently with other targeting criteria (age, interests, gender, etc...) Proximity marketing when user near POS works well, e.g. O2 UK Priority Moments oer service
...and will overcome the main challenges:

User privacy must be respected Opt-in and permissions must be clear Contact strategy (frequency of messages) needs to be well-judged, and varies per segments Third-party interfaces to advertising agencies need building Ultimately real-time auctioning platforms for mobile inventory will exist

The four chimneys are pushing all players to integrate vertically
Network infrastructure A-GPS WPS OS Browser Device Search engine Map Local content Advertising platform App store iAd (Quattro Wireless) App Store PlaceBase Apple IOS Safari iPhone supl.google.com Google Maps Android Chrome / Webkit Motorola Google Search Google Maps Panoramio/ Zagat AdMob Android Marketplace Nokia/Navteq Nokia/Navteq Nokia/Navteq DVI Store Nokia Siemens supl.nokia.com Nokia/Navteq Symbian + Maemo + Moblin Novarra Nokia Bing Bing Maps Microsoft Advertising Microsoft Advertising Microsoft MarketPlace Windows Phone Internet Explorer
attempting to integrate the complete end-to-end location solution
Major players are all
But are also a highly ecient way of building a complete solution
ecosystems
The OS sponsor focuses more on creating the right enablers and SDK No need to develop all new services, third party developers do it Number of services/applications increases dramatically Competition becomes more dicult because it is more complex to ght an ecosystem

GPS satellite positioning monopoly is ending, as new constellations emerge
Glonass
Reached full operational capacity (24 satellites) in December 2011 Faster TTFF Dual-use most benecial in urban canyons Somewhat superior service in Northern latitudes Dierent standards (FDMA vs. CDMA) has slowed adoption but now most chipset vendors support it
Other GNSS
Galileo will have launched rst four satellites by year end Beidou achieves operational positioning capacity (only regional coverage)

The mass market for indoor positioning is maturing, setting o a transformation of our lives in the near future
Market for indoor positioning
We spend 80% of our time indoors, IPS is the future: Shopping malls, airports and oces to nd specic goods or people Airports and hospitals security applications including theft, rescue and exit Trains and subways, for locationbased content towards travellers Indoor is where the business takes place: shopping, contracts signed, etc.
Indoor technologies & maps are emerging

Criteria for success: cheap, scalable and accurate Dominant solution will be a combination of technologies, notably WiFi, Cell-ID, MEMS (gyroscopes, accelerometers) Solution will be software-based (Pole Star, Insiteo) or chipset-based (CSR) Maps are also coming from Micello, Navteq, Microsoft and Google

Cell-ID has the potential to strike back
The performance of positioning technologies compared
High 100
75 Performance
50
25
Cell-ID GNSS WiFi IP address
Low
Accuracy Low cost Coverage Presence Automatic Ecosystem Reliability Latency Energy Opt-in Comparison factors

All these companies will want to know your cars location
Connected car services and players
Resource management Navigation & search vendors Car OEMs Handset vendors Maintenance rms Resource management Car maintenance Power suppliers Energy management Social networking Car sharing Finance Multimodel navigation LBA/ LBM PAYD/ PHYD Trac & other services Stolen vehicle recovery bCall eCall Voice & messaging Road user charging Toiling operators Oil companies Banks & leasing rms Insurers Assistance providers Mobile operators

At last, geo-connectivity is reaching vehicles in large volumes
Number of connected vehicles Numerous factors are helping in use in Europe (in millions) The take-o of low cost embedded
50
Other (SVR, speed camera warning systems) Aftermarket systems/Fleet management Aftermarket systems/RJC Aftermarket systems/PAYD insurance Aftermarket systems/Connected PNDs eCalls Embedded navigation systems
40
30
20
10

2010 2011 2012 2013 2014
0
navigation systems such as Renaults Varinat TomTom The eCall project in the EU, which is scheduled to be mandated in all new type-approved cars and LCVs by end 2015 The ERA Glonass project in Russia, which will apply the same constraint to all motor vehicles in the Russian market by end 2013 The development of national road charging schemes The take-o of PAYD insurance aftermarket systems

Navigation and local search are becoming one and the same business
Google and Nokia have destroyed the business case for navigation-only services Google present in two biggest mobile OS platforms, IOS and Android Google represents vast majority of local/map searches PND sales are falling Car last platform where paid navigation is dominant model Navigation ies with local search (pull) Hence TomToms acquisition of iLocal Challenging to design a large scale freemium model where both free premium levels work Next step will be LBA (push) Knowing where your are where you are going to suggest where to purchase Google best placed... Unless Apple develops own navigation

We expect the eCall OBU to be used as a multi-service box for the connected car
The 2010 Intelligent Transport Systems (ITS) Directive creates the framework for a European-wide implementation of eCall The European Commission aims at mandating eCall for all new type-approved vehicles by end 2015 Certan OEMs have already deployed eCall on most models, notably PSA, Volvo and BMW Daimler just announced that it will deploy it on almost all models from June We expect the eCall box to be used as the gateway to connected car services (connected navigation, insurance, stolen vehicle recovery, remote diagnostics, etc.)

We expect the number of insurance telematics vehicles to be multiplied by 50 by 2020
PAYD trials & launches globally PAYD has reached its tipping point
USA UK Italy France South Africa Germany Ireland Belgium Spain Other 0 5 10 15 20 25 30
Since 1997 (Progressive rst trial), 94 trials worldwide and 54 commercial launches Success stories in multiple countries, notably Italy (Unipol), Spain (Mapfre), France (Groupama), the UK (Insure the box), Austria (Uniqa) and the US (Progressive) Overall, we estimate PAYD-equiped vehicles at over two million worldwide

What are the ve current major challenges to geolocate the 16 billion objects in Europe?
Power consumption for a large number of objects from consumables to home keys Size and weight for low value consumables such as food and drinks Cost e.g. for low-end consumer electronics such as watches Industries that are not used to integrate electronic components into their products e.g. handbags or car keys; or that do not have the location culture (digital cameras, surveillance cameras) Ecosystem road blocks e.g. for credit cards or containers
The location game is not over, it is starting The speed cycles will be given by the smartphone There is value in location: by combining it with other elements into an end-to-end experience In our view, the location industry needs to revisit the obvious and dene smart ecosystem strategies rather than just throwing up products to its customers! Our upcoming Global Location Study will provide the technology and market insights

Typical Indoor environments attenuate GPS beyond detection for commercially available receivers
GPS Attenuation Level
40-45 dB
Cannot detect indoors
Advertised aided commercial C(A) acquisition threshold (A-GPS cell phones)
30-31 dB 25 dB 12-14 dB
Advertised unaided commercial C(A) acquisition threshold (A-GPS cell phones)
Wooden building
Brickfaced masonry
2 level Small parking commercial structure building
Typical North America residence
Indoor Arena/ Mall
Dense urban environment
Location-as-a-Service (LaaS): a Platform for Location Services Steve Gray, CTO, CSR

Positioning using GPS How it works
Low cost GPS engine enables location in Smartphones 24 satellites orbiting at altitude of 12,000 miles
2D position requires three satellites
Corporate WiFi is deployed for broadband and indoor location Angle-of-arrival, time-of-arrival or received signal strength is used to calculate position Position server records location dynamically
Existing WiFi and cellular signals are surveyed and logged in a database Finger prints of RF signals are recorded in a database Position is determined by interpolating nger print data

Three LBS markets Enterprise, Asset Tracking and Consumer
Enterprise/gov segment Asset tracking segment
Targeted at government and large enterprises where there is a need for content access control, campus maps/WiFi tiles restriction (for employees only), military-grade geofencing, etc. This segment is targeted at xed (Vending sys, oce/lab/medical equipment, etc) and mobile (goods in transit, eet, people, etc.) asset tracking in large enterprises and healthcare institutions.
Consumer LBS segment

This segment is targeted at consumers at Big-Box stores and Malls. The technology will be used to guide shoppers to the right departments and Product areas. Provide retail-specic coupons and specials, etc. @20B advertising business. Market trends / attributes. Focucus on indoor commercial retail with three-metour Deferentiator: Indoor navigation SLA
Market trends and attributes: BYOD, Market trends and attributes: low handheld location policies, MDM, cost (<$25) mobile, MRM/M2M Geofenced security (military grade). apps with outdoor-indoor tracking Location context Apps Deferentiator: Indoor positioning and locations Agile middleware applications Boeing Irridium radio Deferentiator: Location accuracy Indoor positioning capability Server Location Aiding (A-GNSS, E-ECID OTDOA

Total LaaS market (volume of units)
1,000,000,000 900,000,000 800,000,000 700,000,000 600,000,000 500,000,000 400,000,000 300,000,000 200,000,000 100,000,000 0
Consumer LBS Total Market Mobile Enterprise Total Market Asset Tracking M2M Total Market
18% CAGR
2013
209,024,554 129,535,398 135,000,000
2014
246,313,077 130,800,752 168,750,000
2015
283,601,600 132,078,759 210,937,500
2016
352,684,041 133,369,547 282,000,000
2017
438,594,256 134,673,243 352,500,000
Location innovations are making the world a smaller place Indoor location will dramatically change the marketplace Cloud and web services enable new business models New multibillion businesses will evolve leveraging new location technologies

01 LBS
A location-based service (LBS) is an information and entertainment service, accessible with mobile devices through the mobile network and utilizing the ability to make use of the geographical position of the mobile device.
Wikipedia
Location Based Advertising: What does it mean to brands and do the agencies care? Asif Khan, Founder, LBMA

02 LBM
Location-based marketing (LBM) bridges the gap between all forms of marketing media. Inclusive of social media, internet, out-of-home and real life interaction. It is about the integration of media to inuence people in specic places.
The LBMA

Smartphone ownership
50 46% 40 42% 32% 46%
30
30%
31%
20
21%
21%
10
Global
North America
Europe
Developed Asia
Emerging Asia
Latin America
MENA
SubSaharan Africa
Source: TNS/Kanter Group

Why are people using location-based services?
50 46% 40
30 25% 19% 10
20
22%
13%
Navigation
Finding friends nearby
Finding restaurants
Checking public transport
For a deal or specic oer

How much interest is there in using location-based services?
People not currently using LBS, but interested
62% 38%
People not currently using LBS and not interested

Preference for mobile oers delivery
% of respondents, January 2012
60 50 40 38% 30 20 10 8% 4% 9% 0 Voicemail Text Mobile web (email, etc.) 16% 16% 32% 26% 21% 13% 11% 10% 12% 4% 2% 12% 1% Other 26% 26% 18% 60% 60%
US UK Germany France
50%
49%
Mobile App
Opt not to receive them on mobile

What are brands trying to achieve?
CONNECT Interact and engage an audience Tap into user-generated content Excite and delight their audiences Drive permission-based relationships Acquire key data including demographics, interests and location-based data
COLLECT
CONVERT
Drive to web for online engagement Drive to store for coupons and oers Drive to experience at a location

Augmented reality in LBS
% of respondents, January 2012
3500 3000 2500 US$ Millions 2000 1500 1000 500 0
Mobile, in-App advertising Mobile, in-App purchase Mobile, paid applications Handheld AR games
2010
2011
2012
2013
2014
2015
2016
ABI Research Mobile Augmented Reality, Thomas Alt, CEO, Metaio

Smartphone adoption will lead to massive growth of the Mobile AR market Consumer adoption of Augmented Reality will be based on individual but solid use cases Revenues for Mobile AR will be generated from In-App advertisement AR games In-App purchases Paid applications Revenues will grow from $21 million in 2010 to $3 billion in 2016
Source: Augmented reality in LBS Thomas Alt, CEO, Metaio
By 2014, AR will be on every Smartphone
Source: XXX

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The Hottest Predictions for 2012

Mobile Fact Pack

Location Business Summit USA

Mobile Fact Pack The Hottest Predictions for 2012

Mobile Fact Pack The Hottest Predictions for 2012

Mobile Fact Pack The Hottest Predictions for 2012

The age of the customer!

Contenders include Facebook, IBM, Best Buy and Apple

Amazon.com, Google, Intuit, MBNA

Mobile Fact Pack The Hottest Predictions for 2012

Mobile Fact Pack The Hottest Predictions for 2012

Mobile is changing our behaviour at every stage of the customer lifecycle

Mobile Fact Pack The Hottest Predictions for 2012

Consumers dont need (want) marketing

Mobile Fact Pack The Hottest Predictions for 2012

Preferred source of product & service information

Mobile Fact Pack The Hottest Predictions for 2012

researched a purchase on their device before buying in-store

Mobile Fact Pack The Hottest Predictions for 2012

Mobile Fact Pack The Hottest Predictions for 2012

Mobile amplies the power of customer review sites

Mobile Fact Pack The Hottest Predictions for 2012

Mobile Fact Pack The Hottest Predictions for 2012

Mobile connects fans in multiple locations

Mobile Fact Pack The Hottest Predictions for 2012

Mobile Fact Pack The Hottest Predictions for 2012

Customer journeys are not linear...

Loyalty loop Initial consideration set Trigger Postpurchase experience

Mobile Fact Pack The Hottest Predictions for 2012

The mobile consumer expects:

Convenience Multi-channel Real time Dialogue Engagement Control

Mobile Fact Pack The Hottest Predictions for 2012

Consumers are mobile Your

brand must follow them

Mobile Fact Pack The Hottest Predictions for 2012

70-80% of business data

Location, Location, Location Vikas Arora, Solutions Specialist EMEA, Microsoft

Mobile Fact Pack The Hottest Predictions for 2012

The understanding of location enables:

Location, Location, Location Vikas Arora, Solutions Specialist EMEA, Microsoft

Mobile Fact Pack The Hottest Predictions for 2012

A-GPS Celluar tower triangulation (Google) WiFi positioning 3-axis accelerometer

Celluar tower triangulation (Google) WiFi positioning 3-axis accelerometer

Mobile Fact Pack The Hottest Predictions for 2012

Global Evolution of Location Frederic Bruneteau, CEO, Ptolemus

Mobile Fact Pack The Hottest Predictions for 2012

Global Evolution of Location Frederic Bruneteau, CEO, Ptolemus

Mobile Fact Pack The Hottest Predictions for 2012

Global Evolution of Location Frederic Bruneteau, CEO, Ptolemus

Mobile Fact Pack The Hottest Predictions for 2012

Mobile Fact Pack The Hottest Predictions for 2012

...and will overcome the main challenges:

Global Evolution of Location Frederic Bruneteau, CEO, Ptolemus

Mobile Fact Pack The Hottest Predictions for 2012

Global Evolution of Location Frederic Bruneteau, CEO, Ptolemus

Mobile Fact Pack The Hottest Predictions for 2012

attempting to integrate the complete end-to-end location solution

Major players are all

Global Evolution of Location Frederic Bruneteau, CEO, Ptolemus

Mobile Fact Pack The Hottest Predictions for 2012

But are also a highly ecient way of building a complete solution

Global Evolution of Location Frederic Bruneteau, CEO, Ptolemus