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Posts Tagged ‘Checkins’

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Wilson Kerr (@WLLK) is the Founder of Boston-Based LBS consulting firm Location Based Strategy, LLC. He checks in on the forces shaping location based marketing often and can be reached at Wilson@LBStrategy.com.

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Boston, MA June 10, 2010 – The Mobile Proof Presence (MPOP) checkin game is white-hot and set to explode. In a relatively short amount of time, most people (with an iPhone, at least)  know what a “checkin” is and the most popular checkin platform (Foursquare) is adding 15,000 people daily and rapidly closing in on 2 Million users, stacking up approximately 10 checkins per second, or well-over 1 Million per day.

Broadcasting the details of their location-based interactions with real businesses 3 to 4 times per week, these users are providing Foursquare a stockpile of opt-in mobile metrics. This is no longer a fad. This is real and could finally be the legitimizing  “lift” mobile advertising has long been looking for.

Thanks to checkins, realtime social network updates are no longer just static, general “What’s On Your Mind?” posts. They now convey “What are you doing, where are you, and who are you there with.” While this has certainly been a fast-moving location-based social media phenomenon, the real momentum behind this movement (and the reason to take-note) is not individuals sharing the where/what/who, but something else.

Special Offers Becoming The Focus

 

Increasingly, Foursquare and other checkin platforms allow users to convey, “what special deal they got for being there”. This last crucial element has recently tipped the balance and allowed Mobile Proof of Presence linked to checkins to emerge as THE transformative mobile advertising force to-watch, in record time.

No longer passing out only fun, amusing “digital candy” badges, mayorships, pins, or token drink specials, these platforms are now tapping into the rich vein of actual product-linked incentives offered by well-known brands. In no small way, they are set to finally deliver on the original (largely unrealized) core premise of mobile advertising, by linking consumer behavior and tracked  mobile ROI to an existing, proven formula for increasing sales.

Every consumer-facing business with a cash register, from the smallest single-door to the largest mega retailer, knows that special offers drive lift. Printed coupon fliers, chalkboard nightly restaurant specials, “BOGO” days at the supermarket, seasonal clearance sales, and, most importantly, “punch card” loyalty programs all work. Foursquare takes the incentive programs, coupons and special offers retail businesses have used for decades to drive sales, and straps them to a new, modern opt-in engine that feeds the businesses back real-time location-parsed ROI metrics.

Lucky Magazine Partners For Shopping Specials

At long last, it seems large, well-known brands have finally decided to step around their lethargic and overly cautious agencies and get involved. By all reports, Foursquare and their closest competitor Gowalla are turning down daily inbound proposals from top brands looking to tap into the power of this new way to track lift. Traditional agencies are likely shuddering, and for good reason. Perish the thought that they finally have to step up to this new level of measured return and quantify results! I can just imagine them responding to the brand contact, “What do you mean you want us to run a campaign that tells you how many people acted upon the offer and where and when and how much money you made from your spend“? Heaven forbid.

Foursquare is using Mobile Proof of Presence to finally unlock the Pandora’s box that allows branded locations to run real checkin-based incentive campaigns that reward loyalty, showing them who was in the store or business, when, and what they redeemed as a reward for interacting with the location/brand while there. These metrics can then be tied to increased sales of real products during the time the incentive was offered. Voila! Lift.

This checkin movement is being sped along by a flood of energy and momentum linked to the  long-unrealized potential of mobile marketing, generally. Foursquare, for example, is not so much seeking this as fuel for growth as they are receiving it and serving as a catch basin for this torrent of brands finally able to get metrics empirically linked to real, tracked incremental visits by real people with real money to spend.

Gowalla, Loopt, WHERE, WeReward, and the rest are hot on their heels and there is a lot of loot to spread around. Speaking of loot, Pepsi recently launched their own, branded check-in platform called Pepsi Loot. That’s how hot this space is right now!

 

Pepsi Loot Checkin App

Consider this, Foursquare was founded in March of 2009 and has not yet spent the original $1.35 million they took to get started.  They are still a small, scrappy company that is admittedly barely in control of the tiger they have by the tail. Yes, they have location validation (cheating) issues to address that could cloud metrics and naysayers are squealing about narcissism and privacy. Still, Foursquare is growing larger by the minute and the larger they get, the more likely it is they will perfect the algorithmic tools the big brands have long been looking for.

Also, watch for the big boys (Apple, Google, Nokia, Yahoo, Facebook, etc) to step into this game in a big way, as the realization sinks in that Mobile Proof Of Presence checkin campaigns linked to real incentives tied to products people buy every day might finally be the “lift” mobile marketing has been looking for (and brands are demanding).  They better hurry.

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For an inside look into Foursquare and the forces behind their success, take the time to watch this excellent and revealing video interview with their CEO, Dennis Crowley. BTW, he was just crowned the “King” of social media by Wired Magazine (UK).

Foursquare Potential: CEO Crowned Social Media King

 

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Wilson Kerr (@WLLK) is the Founder of Boston-Based LBS consulting firm Location Based Strategy, LLC. He checks in on the forces shaping location based marketing often and can be reached at Wilson@LBStrategy.com.



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Did your mobile ad campaign drive a consumer to a store that carries your product and can you prove it?

If you can use opt-in consumer behavior to prove that a customer visited a specific retail location and bought a product (and link this to a specific call to action), you are touching the future of mobile marketing. Social network platforms that can effectively capture these “Mobile Proof Of Presence”  (MPOP) metrics,  can offer brands powerful new marketing tools and quantify ROI by linking them to incremental product interactions.. at point of sale.

Lest we forget, companies make money by driving consumers to buy their products, in real stores with real money. Using traditional blanket print/radio/TV advertising for “top of mind”  branding is fine, but new tools allow brands to quantify ad campaigns by tracking incremental store visits, product interactions, and even payment for that product.

Three ways to capture MPOP metrics are: Checkins, QR codes, and NFC. Each has it’s own merits.

Checkins: The Current Craze

Popular “checkin” platforms like Foursquare and Gowalla are proof that consumers will volunteer where they are and what they are doing, for an incentive. By checking in to a specific place, individuals are rewarded with product specials or freebies and broadcast their location to their social networks. The platform that captures this information can use it to build metrics for brands, showing results as incremental traffic to real doors. A downside of checkins is their fad-like meteoric rise and that  unverified rotten checkin apples could spoil the metrics barrel. Foursquare, for example, has had some issues lately with fake checkins. Gowalla validates checkins, by real location.

How much potential is there here? Recent rumors are that Yahoo might buy 1+ year  Foursquare for $100+ Million.

How Do Checkins Work? Watch The Video:

QR Codes: Get Ready!

Quick Response (QR) Codes can be used to verify that someone was at a specific location and capture when that interaction occurred. QR codes are ubiquitous in Japan and taking hold in Europe.

They are easy to implement and serve as a viable “proof of presence” without the requirement that the device knows where it is. This is key..If the QR code is unique to the location, then a physical scan of it verifies a consumer was there.

For print ads, QR codes serve as “real world hyperlinks” to the virtual, online world. A company to watch is Mobile Discovery (video intro), a top provider of QR code campaign creation and management. Please contact me if you would like to learn more about Mobile Discovery or how QR codes can serve as a bridge between real-world point of purchase display or print ads and your mobile/social media campaigns. Get ready, QR codes could be huge!

How Do QR Codes Work? Watch the VIDEO:

NFC: One To Watch

NFC (Near Field Communication) is not new technology and many Americans use NFC every day. Contactless metro cards are the best example. NFC is potentially important for mobile marketing because it can generate MPOP metrics and enable real financial transactions via the device, instantaneously. No opening scanner apps or multi-step checkins. You simply pass your phone over a contactless terminal node and you are done. The downside is that NFC requires a significant investment in retail point of sale hardware and payments will require (messy) Carrier involvement. This is why it has not taken off, to-date.

Major device manufactures like Apple and Nokia are expected to launch NFC equipped smartphones soon, for the US market. Nokia has been doing pioneering work on NFC for many years. The Nokia video below is from 2007! A recently-uncovered Apple patent details “Peer-to-Peer Financial Transaction Devices and Methods”. The new iPhone might have NFC integrated and a payment app on-deck.

How Does NFC Work? Watch the VIDEO:

A Hot New Way To Measure ROI

While trendy checkin platforms dominate the news, be sure to learn the other ways to verify, track and capture all-important MPOP metrics. There is a lot of pressure on mobile advertisers and social network platforms to prove they drove real consumers to real  touchpoints, where  real products are  purchased. As well there should be…

If you want to learn more, contact me. I can help.

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Wilson Kerr (@WLLK) is  the founder of Location Based Strategy, LLC a Boston-based LBS consulting company founded in 2007 (Facebook). Wilson is also a location based blogger, speaker, panelist, and thought leader.

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Social networks are poised to be the most-effective marketing tool of the next decade. Facebook is the biggest social network and word on the street is they will announce location-sharing functionality very soon. While this new feature will make Facebook more interesting and compelling for individual users, location sharing is not new.

What would be new and what would interest me is if Facebook introduces transformational marketing tools for brands that will link Facebook campaigns to incremental visits to locations where real products can be purchased. These incremental, verified store visits and real-world product  interactions could very well become a new ad unit, and could reshape the very nature of how mobile advertising ROI is measured.

A New Consumer Touchpoint

Before I address Facebook-powered brand interaction linked to real locations, I want to back up and address why social networks have recently hit the marketing radar and become so popular generally.

People voluntarily linked by something in common (friendship, an interest, or a preference for a brand) can convey subjective information with far more impact than the traditional “broadcast” norm that has ruled for so long. Sounds pretty obvious, but this is the fuel that social networks run on.

Since it’s no longer only individuals that can have Facebook pages, companies can interact with consumers who have opted-in to their specific social sub-network, within the larger Facebook ecosystem. Messages initiated by the brand and information conveyed is disproportionately impactful, due to the highly prequalified nature of the opt-in audience.

Remember, these new social media touchpoints are also a two-way street. Members of these opt-in brand sub-networks (Facebook fans) can interact with the actual company producing the products and their collective input can shape the products or services offered. Companies can engage in real dialogue with their customers like never before.

A Huge Opportunity: 26,143 years/day

With a reported 400+ million registered users and 250+ Million active users spending 55 minutes daily on Facebook, Facebook is best-positioned to win the race to integrate location and roll out location sharing functionality for consumers on a grand scale. If they are smart, they will also introduce innovative location-based marketing tools for brands and companies.

Of US companies on Fortune’s Top 100 list, almost 70% reported having Facebook pages. Each averaged about 41,000 fans and was posting 3.6 new messages a week (Report from Jan 2010).

Wait, let me back up a second and get out the calculator: 250 Million users at 55 minutes each daily is 13.75 Billion minutes a day, or 229+ Thousand hours! This is the equivalent of….26,143 years spent interacting with Facebook, each day. Facebook, if it were a country, would the third largest in the world and now threatens Google for web traffic generated. Facebook is very well positioned indeed.

Location, Location, Location

Either through a GPS receiver (outside) or cell tower triangulation or wifi location systems (inside), most mobile devices are “location enabled” and can share this location information with the social networking application interfaces people choose to access. The fact that we carry a device as we go about our daily lives that knows where it is becomes even more significant when we consider that this is when we are in contact with real goods to buy and the locations that sell them.

If, as is expected, Facebook helps make location sharing within social networks ubiquitous by introducing this functionality on a grand scale, the opportunities for marketing campaigns that utilize shared, opt-in real-time location information should grow very rapidly.

Again, while location sharing among individuals is neat, the tracking of opt-in interactions with actual points of sale is the real financial opportunity for Facebook. Odds are, consumers will not mind an offer to try a new coffee flavor while they are in a coffee shop, if they have volunteered to share the fact that they are there. Google now takes in $23 Billion a year on the AdWords educated bet they made back in 2000. That is: ads can be both effective and unobtrusive,  if they are contextually relevant.

Checkins, QR Codes and ROI

According to Forrester, the amount of real-world sales influenced by online ads/marketing will be $1.4 Trillion by 2014.  The percentage of sales influenced by the web is increasing at a compounded rate of 9% annually. Yet these linkages between online research and offline sales are almost totally untracked. By understanding this research online, buy offline (ROBO) “gap”, you can start to see the potential upside of linking a Facebook-powered marketing campaign to actual in-store visits and what this means for measuring ROI.

For popular “checkin” platforms like Gowalla and Foursquare, place-labeled location sharing serves as the cornerstone of their whole model. Facebook could mimic this and introduce “Facebook Checkins”, allowing mobile users to tap a button and instantly post where they are and (optionally) what they are doing, as a status update.

This same functionality could be linked to campaigns run by brands and the metrics tracked and fed back to the brands. If a special deal or offer is needed to incent users to checkin, fine. Most businesses already thrive on these proven revenue drivers. Large national incentive and loyalty programs already in-place could provide the fuel for these programs to take off fast.

Why are those funny little square Quick Response (QR) codes suddenly so important to understand? Because consumers can scan them with a phone and they both deliver information to the application that scans them and use this information to launch little portals between the real world and the virtual, online world. Sounds odd, but this is only because this way of quickly interacting with a place or product is in its infancy in the US.  Take a trip to Japan if you want to comprehend the potential impact of tracked campaigns that make use of QR codes. Here’s an example, from last year.

Facebook QR codes for brands or location checkins could drive incremental tracked and quantified consumer interactions with the dealer doors where branded goods are sold (or even with the actual product). Facebook could capture all the details of how and when this occurred and, I’d imagine, be able to deliver a compelling ROI/metrics story to keep brands signing up for more.

Stay Tuned..

Facebook’s F8 conference is next Wednesday April 21st in San Francisco. It is widely predicted that they will launch location sharing for their users and, possibly, unveil related news for brands.

How will Facebook harness the power of location for its 400 Million registered users and give brands the tools they need to track social network marketing campaign ROI in new ways? This is what I will be watching for, as this is where the money is. Stay tuned..

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Wilson Kerr (@WLLK) is  the founder of Location Based Strategy, LLC a Boston-based LBS consulting company founded in 2007 (Facebook). Wilson is also a location based blogger, speaker, panelist, and thought leader.

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