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GFK - LBS Consumer Market Research
1.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Metaplaces Conference Identifying Key Drivers and Measuring Consumer Preferences for LBS © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
2.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Navigating the LBS market 2 Consumer Best Challenges Drivers Landscape Practices © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
3.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Navigating the LBS market 3 Consumer Best Challenges Drivers Landscape Practices Connectivity Attitudes Behavior © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
4.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Consumers’ increasing connectivity is a good launch pad for LBS Connectivity 4 Smartphone adoption rapidly increasing, moving beyond productivity apps Year-Over-Year Shipment Growth in USA* 2008 2009 2010 Smartphone +68.4% +7.9% +28.4% Traditional Mobile -13.8% -20.3% -1.2% (Projected) Total Market -4.7% -14.8% 6.1% *IDC.com Netbooks and mobile broadband making significant inroads Netbook Shipments Worldwide* 139M MiFi Introductions 32.7M hit the market in 2009 16.4M 2008 2009 2013* (Projected) *ABI research.com © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
5.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 4 consumer trends that LBS marketers can tap into Attitudes and Behavior 5 1 Practicality 2 Accessibility 3 Sharing/getting personal 4 Protecting the family © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
6.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 The practicality and accessibility of Technology Attitudes and Behavior 6 • Consumers are increasingly showing their practical side when it comes to technology, and wireless offers productivity “on the go.” • Accessibility is a key need sought by the increasingly mobile consumer. % of American adults 15+ who agree with the following statements related to technology* To me it is important to 48 2008 always be reachable 2009 wherever I am 52 I buy technology products 25 that help me do things I need to do 34 *GfK Roper Reports Worldwide 2009 © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
7.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Sharing and getting personal is another key underlying need Attitudes and Behavior 7 Consumers using their mobile phone or netbook to share content on social networking sites, online photo albums, blog sites, and community video sites:* Social Online Web Community Networking Site Photo Albums Blog Sites Video Sites Desktop PC 63 64 49 63 Laptop 45 35 41 36 Netbook 9 10 16 10 Mobile Phone 17 9 14 10 Portable Media 5 5 15 8 Player *GfK Connected Life © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
8.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Protecting the family is #1 value of 32 tested Attitudes and Behavior 8 ... Top 16 attributes shown Protecting the family 84% Self reliance 71% Freedom 79% Friendship 70% Stable personal relationships 79% Equality 63% Authenticity 78% Helpfulness 62% Working hard 74% Open-mindedness 61% Enjoying life 72% Respecting ancestors 59% Learning 72% Social tolerance 59% Knowledge 71% Having fun 58% *GfK Roper Reports US © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
9.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Navigating the LBS market 9 Consumer Best Challenges Drivers Landscape Practices Connectivity Monetization Maximizing User Attitudes Experience Behavior Privacy © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
10.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 With the proliferation of free applications, requiring consumers to pay will be a challenge Monetization 10 *Key monetization challenges across LBS apps tested . . . • Changing plans • Paying for individual services “There are some nice features, but I really expected more for • Changing carriers “Compass is $10. I own less expensive apps that I’ve found to be influenced by nearby much better.”** electronic devices to such a degree that it is quite “Just downloaded and installed this inaccurate. Only .99 cents but app today thinking I’d save a few bucks I wish I had spent more on versus Navigon, TomTom, etc You something that was should absolutely save your money accurate.”** and buy something – anything – else. This is worthless for the purpose of navigation. I will never use it again, and if I could get my money back, I would...in an instant.”** *GfK Tech Test **iTunes Apps Store Reviews © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
11.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Mobile advertising has yet to reach wide acceptance LBS can be a solution to increase relevance Monetization 11 Find: Ads on mobile phones annoying 70 Ads on TV annoying 37 Ads on social networking sites annoying 29 Find: Ads on mobile phones acceptable 5 Ads on TV acceptable 42 Ads on social networking sites acceptable 23 Mobile ads are yet to deliver value to the consumer Describe mobile device ads as informative 9 Describe mobile device ads as useful 14 *GfK Roper Reports Worldwide 2009 © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
12.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Increase adoption by addressing key challenges Maximize User Experience 12 Learning Curve If I am going to be able to use a 25 % Agree new technology product, somebody has to show me how 2008 32 2009 to use it* “Themes of recent CTIA and International CES trade shows has been how new handhelds are often shipped with so many new features and functions that users hardly ever use 10% of all features, or even learn how to use them.”** Screen Size “Phones are so small that “You won’t be able to easily reading maps on them see the screen. It’s too is hard to do.” little.” ~ GfK Tech Test ~ GfK Tech Test Security of Personal Information In an effort to protect user privacy: “Google’s Latitude does not keep a historic log of a user’s location; it overwrites data each *Roper Reports Worldwide 2009 time the user reports a new location.”*** **www.macworld.com ***www.eff.org © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
13.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 LBS benefits must outweigh privacy concerns Privacy 13 Possible Benefits Privacy Concerns “I do not like the idea of the Safety possibility that someone would know your every movement during the time your phone was in use. Privacy is more important than Convenience having an exact pinpoint location given to me by a tracking satellite.” ~ GfK Tech Test Accessibility “The concept of Big Sharing Brother watching me.” ~GfK Tech Test © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
14.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Navigating the LBS market 14 Consumer Best Challenges Drivers Landscape Practices Connectivity Monetization Problem Solving Maximizing User Enhance Attitudes Experience Experiences Behavior Privacy Relevance © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
15.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Ability to solve a problem is the top driver of Appeal Problem Solving 15 DRIVERS* A Ability to solve a problem 59% B Uniqueness 18% Overall Appeal C Ease-of-set-up 14% D Believability 9% *GfK Tech Test © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
16.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Successful LBS applications must Enhance Experience 16 Fulfill an existing need OR Enhance current experience GPS Smartphone Shipments Worldwide* % who have accessed the Internet in past 3 months for 77M maps/directions** +34% 76 % 57M 2008 2009 Opportunity to drive consumers to their mobile device *electronicsnews.com **GfK Connected Life © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
17.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Keep it relevant Relevance 17 What Where Top iPhone Apps Where Mobile Devices are used • Bathroom/Rest Area finder At home 66% • Friend mapper (shows friends' current location) In the car 50% • GPS Outside 46% • Hotel finder (finds hotels with open rooms close to current location) At work 43% • Local restaurant locators Somebody else’s home 39% • Restaurant openings/reservations At café/restaurant 37% • Local services and amenities (restaurants, bars, gas stations, tourist attractions) While walking 37% • Parking lots and rates At airport/train station 33% • Post location on Facebook On public transport 29% • Registered offenders (brings up offender lists from current location) At client/customer offices 19% • Speedometer At school/college/university 15% • Weather channel (local weather based on current *GfK Connected Life location) © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
18.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Navigating the LBS market 18 Consumer Best Challenges Drivers Landscape Practices Connectivity Monetization Problem Solving Methodologies Maximizing User Enhance Metrics to Attitudes Experience Experiences Evaluate Activating Your Behavior Privacy Relevance LBS Strategy © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
19.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Do I have a winner? Methodologies 19 Explore Quantify Online Diary Survey questionnaire • Benchmark against other apps • Profile potential users • Uncover benefits and concerns • Assess uniqueness of app and • Evaluate use cases problem solving • Get ongoing feedback © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
20.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Stand out and solve problems Metrics for Evaluation 20 Aim for upper right quadrant 35 Old Answer to New Answer Problem to Problem 30 Mobile E-mail % Solves A Problem Mobile Payment Mobile Maps 25 Normative Mobile Photo Average 20 Mobile Files Sharing Mobile IM Mobile TV Train/Flight Booking/Information 15 No Problem/ Mobile Video Time Shifted TV New Answer No Answer Mobile Entertainment to Non-Problem 10 10 15 20 25 30 35 40 45 50 55 60 65 % Extremely/Very New and Different © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
21.
GfK Custom Research
North America Metaplaces Conference September 23, 2009 Activating your LBS strategy 21 Appeal to underlying consumer needs • Practicality • Accessibility • Sharing/getting personal Focus on delivering value in mobile ads • Leverage LBS technology to enhance relevance Address user experience barriers Keep it relevant to where and how consumers want to use their mobile device Explore and quantify Leverage Convergence © Copyright GfK Custom Research North America 2009. Proprietary and Confidential
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