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Sale from Google: traditional advertising. Price: Free

Google storms LBA (Location Based Advertising - location based advertising)

Google’s latest moves in advertising based on Location Based Services (LBS), like dark clouds on the horizon, moving in different directions, are gaining energy and speed. All the teams in the world LBS are nervous, and there is something. Google begins to rethink LBS and sets the stage for the absorption of traditional advertising, using data on the location of the consumer as an effective basis.
On October 12, 2009, as predicted, Google ceased cooperation with Tele Atlas map provider and offered its own engine for Google Maps. October 28, they shot “free navigation”, announcing that on the Android platform (works on 35 models of mobile phones, including the advertised Droid) will be presented free navigation software.


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Disguised advertising

Although the “free navigation story” captured news headlines and the world of traditional navigation staggered, few noticed that Google added clickable POIs (Points Of Interest) to its navigation systems. If there is no need to search, commercial objects fill in a map based solely on the fact that the user is in physical proximity to these objects. A consumer can receive a coupon downloaded to Google by the retailer and make payment (online) through Google Checkout. In each description of the business you will find the standard functionality: photos, reviews, one-click calls, links, brands, prices, etc. Google collects all information from actual business owners through the Google Local Business Center.

These businesses on the map are masked ads. They function as advertisements, but look to the user as advanced cartographic functionality. Google assumes, by analogy with the giant money generators Adwords and AdSense, that the LBA disguised as advanced functionality will enhance the quality of services received by mobile users; perhaps it will not be claimed immediately by the millions, but at least it will not be rejected.

Recently, Ulocate Communications (the people who developed the Where platform) launched a banner ad for their Where App through their new Spotlight program. Users were happy! What they really did was change the format of the ads, so that they began to look like a business location, and the effectiveness of these “non-ads” increased 3 times!

“(Our strategy is to) provide a successful monetization tool that doesn’t disrupt users, but rather empower them,” said Lacy Garcia, director of marketing and communications at uLocate, Boston. "We have already received positive feedback from users who thanked us for deleting ads, although in reality we did not delete them, but simply replaced them with Spotlight."

Secret sauce

While traditional brand agencies are trying to catch up by building mobile sites, or are immersed in the development of branded applications, an easy way for LBS companies to compete with Google is to provide platforms that allow national brands to use their secret sauce. Only the brand has the right to use its mark, and only the brand really knows where its points of sale are located. Stores open and close, and the telephone database may be outdated for months. Despite the fact that Google was the first to do the most difficult part of the work (local businesses), it remains possible for platforms to work with national brands to create simple branded POI applications.

Manufacturers of navigation devices sold powerful systems to generate additional visits to outlets, without realizing this advantage. Online navigators should track the user's position, comparing it with the POI, and count consumers directed to these business points. Every onboard navigator should do the same. Even if they are not used to shake up advertising money from brands, these indicators are powerful proof of the strength of alternative value-added cards, and these indicators will be crucial for new programs when accessing brands that do not want to send their entire marketing budget to Google alone.

Metrics in the morning, money in the evening

Google collects performance metrics for these business locations for the future. Google controls which businesses are shown and to whom. Imagine the value of a proposal for a program with a proven track record of bringing real consumers to real business, compared to their websites? Imagine the consequences of removing a business from the Google LBS advertising program when it’s been there for some time and can Google justify the consequences of withdrawing?

So far, Google has filled the map with universal icons; now it does not take money from businessmen for being on the map (literally). Soon we will see their Ad Extensions program, which allows advertisers to load store lists with brand logos and link them into fully-monitored advertising campaigns. These logos will give new impetus to brand awareness in Google Maps and will become a new powerful weapon in the Google advertising arsenal.

Like a bullet in the vacuum of space, most navigation devices and platforms were lit once (at points of sale) and then disappeared forever, loaded with untracked search queries of various POIs and unspent millions in an era of increasing revenues, with a very small amount of what was actually tracked and measured . These platforms can and should refer to the user base and the fact that millions of company addresses are already known. Efficient agencies will search for partnerships with platforms now, so that their brands can learn and actively participate in shaping the development program; agencies can offer their customers more than just integrated Google campaigns.

Google future percent based on increasing sales

The real end of the game can be for Google to collect a percentage of actual sales that are tracked through Google Checkout in real stores. Forget about pay per click or bids on ad text (or Google / AdMob banners) that drive traffic to the website; A googl “non-advertising” model, fueled by the “secret sauce” of the brand and locations, can lead them to a future when the business pays only for actual additional sales conversions. It’s easy to imagine how Google will actually distribute its free Google Phone with a subsidized tariff plan in order to accompany the millionth army of users in their daily lives. Their phones are getting smarter and delivering to users the products and services they really need, and at that moment when they want it. If they can get more from advertising in phones, based on a percentage of the actually proven increased sales compared to sales of the handsets themselves or subscription fees, why not go further? I doubt that the operators are very concerned about who will pay them - Google or the subscriber.

Google of the future, which is already here: Google Favorite Places

The missing link of the future “increasing sales through LBS” is already here. It was announced on December 6th and is called Google Favorite Places . It's hard to overestimate the potential power of this new Google program, and I hope that the LBS world sees this influence. While I was thinking to myself about branded POIs and what big cards they still have, this one turned out to be much larger.

Store stickers with Google QR-code (from “quick reaction” - “quick response”) began to be sent out to 200,000 so-called Google Local Businesses. These are the funniest 2D barcode rectangles you see on the package that allow any consumer to stop in front of an institution, scan this barcode using their phone and find out opening hours, get discounts or coupons, reviews, photos, etc. . Imagine if you know that a particular customer standing in front of your store went into it, because used the information from the list of Google as actually bribing on your part! If Google Checkout was used for this, then you can accurately track the level of sales, as far as the use of the LBS promo application is related to a particular purchase. Imagine the impact of this idea on local business, leave national brands alone?

Price issue for business? Is free. The cost of downloading a barcode scanner (priced at $ 1.99) from the iPhone App Store for the first 400 thousand people? Free (thanks to Google, as you can guess). The cost of downloading barcode scanner from Google Android Market? Is free.

Speaking of national brands, Google announced on December 7th that the merchandise accounting system (catalog) will be uploaded to the Google search system as a function of “What's nearby?”, Which will allow the consumer to find a specific product or its nearest location in a store. Having found what they’re looking for, the customer will be able to use the new Google Googgles feature to get more product information.

Revealing the secrets of functionality, Google blows the wind out of the sails of those who could complain about advertising in the framework of a paid service. Google catches buyers on the fact that its advertising is not only not intrusive and corresponds to a specific situation, but is also tied to a specific location and behavior in a way that actually improves the user's life; allows the system to show contextual information that does not seem like a blatant advertisement due to its intelligence and intuition.

What can be done

What does all of this mean? Navigation platforms should look for ways to track the metrics using the POIs they supply today, and work with brands to popularize their platforms with ads that don’t look like ads at all. Agencies must disseminate innovative solutions and educate their clients on the wider use of LBS, as opposed to simply inserting their name into a network banner for mobile or iPhone embedded applications. This also means that the western LBS industry should look to the east to see the future if they do not yet see the leading edge of Google Storm. Companies like NTT DoCoMo have been pioneers in sales growth tracking systems for several years, and most people in Japan now use their phones to make purchases.

Advertisers, brands, agencies, platforms - everyone needs to see the LBS horizon to learn what they see now as the future, and to use this looming front as an incentive to create and offer modern solutions for local and national brands; solutions whose effectiveness can be demonstrated how Google clouds collect and build it.

Author: Wilson Kerr - Founder of LBS consultancy Location Based Strategy ( http://www.lbstrategy.com )

Source: https://habr.com/ru/post/77926/


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