Location based services-2013_goldmedia_short_report_en

Goldmedia GmbH Strategy Consulting Prof. Dr. Klaus Goldhammer | Christine Link | Johanna Tietz Oranienburger Str. 27 | 10117 Berlin-Mitte | Germany

Tel. +4930-246 266-0 | Fax -66 | Info[at]Goldmedia.de

www.Goldmedia.com

Location Based Services 2013 in Germany Short report

Berlin, February 2013

Pictu

re: ©

Seyya

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Foto

lia.co

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Vertraulich/Confidential, © Goldmedia

Location-based services 2013

Objectives and methodology

2

Bild: © Seyyahil_Fotolia.com

Goldmedia carried out a study on the location-based services

market in Germany for the Bavarian Regulatory Authority for

Commercial Broadcasting (BLM)

Client

Market overview of the current situation, range of services, usage and local

advertising market potentials of location-based services (LBS) in Germany

Objectives

Project period: November 2012 to February 2013, presentation of the results on

February 2, 2013 at the Local Web Conference in Nuremberg

Approach: extensive online desk research as well as five expert interviews with

service providers and industry representatives

Methodology


1. Definition

2. Market structure

3. Usage

4. Potentials

5. Legal concerns

6. Forecast

3

Location-based services

Table of contents

Vertraulich/Confidential, © Goldmedia 4

Using procedure/definition of location-based services (schematic)

Functionality of location-based services (LBS): after localization location-based information are provided

+

position-fixing

(via GPS, GSM, WLAN, etc.)

service providers transmit location-based

information

end device locating map/ data

provider

locating

service

user

Source: Goldmedia analysis, 02/2013


1. Definition

2. Market structure

3. Usage

4. Potentials

5. Legal concerns

6. Forecast

5


Table of contents


LBS development since 2005: dramatic increase of

providers from less than 10 to more than 180 in GER


2005 2006 2007 2008 2009 2010 2011 2012 2013

nu

mb

er

of

pro

viders

<10

>180

Picture: © Seyyahil_Fotolia.com


Source: Goldmedia analysis, 2/2013 social 7

navigation &

maps

food service

industry

gaming

general information

taxi

12 %

12 %

5 % 12 % 9 %

4 %

3 %

2 %

6 %

6 %

7 %

8 %

7 %

5 %

6 %

Share of

LBS providers

based on181 services

Germany, 1/2013


1. Definition

2. Market structure

3. Usage

4. Potentials

5. Legal concerns

6. Forecast

8


Table of contents


Study overview: 30% to 42% of smartphone owners in

Germany used LBS at least once a week in 2012

Studies by TNS, AGOF and Google from 2012 show that at least every third German is already using location-based services

Two in three smartphone owners have location-based applications at their disposal

37% of mobile internet

users utilize

location-based

services at least

once a day

42% of smartphone

users search for

local information

at least once a

week

30% of Germans

already use

location-based

services, 29% are

interested

Source: TNS (Mobile Life Study 2012), Google (Unser mobiler Planet: Deutschland), AGOF (mobile facts 2012-II), 02/2013

Results


27

27

28

29

29

32

32

34

36

36

39

39

42

43

44

50

58

64

64

65

85

294

522

552

0 100 200 300 400 500 600

Public transport

TV Spielfilm

Barcode reader

Calendar

Twitter

Amazon

Bild.de

google maps

n-tv

tagesschau

Google Search

Opera

GMX

Skype

web.de

Kicker

Angry Birds

Navigation

Spiegel

Deutsche Bahn

ebay

Weather forecast

facebook

What's App

frequency of nominations

10

Mobile Monitor: location-based apps are among the

most-used apps of smartphone users in GER in 2012

Asking smartphone users for their most-used apps, 7 in 24 apps are location-based

522 in 1,969 respon-dents use the facebook app most frequently, which also includes facebook Places

The second most-used LBS-app is ebay; it is used by 85 in 1,969 respondents and also uses location-based data

Other approved location-based services refer to navigation and location-based information as well as information about local transport (except for Twitter)

Source: Goldmedia Mobile Monitor / respondi 2012: n=1,969

Results My three most-used apps are… (2012)


1. Definition

2. Market structure

3. Usage

4. Potentials

5. Legal concerns

6. Forecast

11


Table of contents


Europe: high growth in LBS market revenues

expected by 2017, about 1 bn EUR in just 5 countries

Countries of EU5 (Germany, France, UK, Italy and Spain) generate most of LBS revenues – by 2017, 178 m mobile users are expected. For the EU27 255 m mobile LBS users are expected.

Source: IDATE, “Mobile LBS”-Report, June 2012, Electronics.ca Publications, ”Mobile LBS Market and Data Report”, June 2012

Mobile LBS market revenues in million €, EU27 and EU5, 2010-2017

Facts

58 115

210

400

630

850

1,040

1,270

50 100

170

325

500

650

800

965

-

200

400

600

800

1.000

1.200

1.400

2010 2011 2012 2013 2014 2015 2016 2017

EU27: 27 EU countries

EU5: Germany, France, UK, Italy, Spain


Goldmedia forecast

10 16 33 56 87

130 188

37 57

85 118

159 206

265

2011 2012 2013 2014 2015 2016 2017

LBS advertising revenues of German providers

increase to 188 m EUR by 2017 in GER, CAGR 63%

13

Share of LBS market revenues in Germany 2011-2017 in EUR / Goldmedia forecast

LBS revenues increase by 49 percent from 2012 to 2013

Ad-financed services with highest growth potential: share of ad revenues in total revenues is expected to be around 40 percent in 2013 and will increase to around 71 percent in the next five years

Details

Source: Goldmedia analysis, 02/2013, German LBS/providers only picture: © Seyyahil_Fotolia.com

Other revenues

Adverti-sing revenues


advertising44%

in-app sale 24%

free 21%

sale of app 8%

freemium 3%

14

Share of business models by a total of 180 German LBS providers (1/2013)

Business models: almost half of location-based services

in GER are ad-financed (44%), 24% with in-app sales



1. Definition

2. Market structure

3. Usage

4. Potentials

5. Legal concerns

6. Forecast

15


Table of contents


LBS: only 39 percent of respondents feel safe by

using apps with incorporated localization

yes 69%

no 31% yes

39% no

61%

69% use them… …but 61% don‘t feel safe.

Source: Goldmedia Mobile Monitor / respondi 2012: n=1.969

”Do you feel safe by using apps with

incorporated localization?”

”Do you use location-based applications

which reveal your current location (GPS)?” (e.g. Google Maps, Facebook, AroundMe, etc.)


Smartphone users are afraid of data abuse when

they use location-based services

I ‘m afraid of using localization because I’m not sure whether my privacy is protected.

I always pay attention to which apps trigger my local position.

Source: Goldmedia analysis, based on fittkaumaass.de, W3B report “Location-based Services”, April/May 2012.

Sample: 65,884 German internet users, internet representatives quoted and weighed of age, sex and federal states

Half of smartphone users in Germany pay attention to apps using localization

40 percent of users have concerns about revealing their location

Insecurity regarding data protection inhibits LBS usage

Facts

Concerns of smartphone users in Germany regarding data privacy (5/2012)

53%

21%

10%

5%

10%

I squarely agree

I agree

I don't know

I don't agree

I don't agree at all

40%

24%

17%

11%

8 %

I fully agree


1. Definition

2. Market structure

3. Usage

4. Potentials

5. Legal concerns

6. Forecast

18


Table of contents


SWOT analysis: location-based services

Approvals for localization of

smartphone users are necessary

LBS require advertising customers with local basis/effort of targeting

Booking and measuring systems

Vicinity to user and daily deals/

offers in real-time

Facilitation of everyday life in numerous fields

Advertising meets customers at

point of sale (POS)

No successful mobile advertising media on the market yet

Concerns in terms of data protection law/ fear of data abuse

inhibit growth

Advertisers are increasingly

interested in targeting and

localizing their potential customers

Growth potential for start-ups

Prospective location-based feature will be integrated in almost every app

Result LBS can be incorporated in almost every single service; however,

successful monetization depends on future acceptance

Weaknesses Strengths

Prospects Threats


Impact of location-based services on the local

advertising market in Germany

2014/2015

From 2016

Advertising revenues generated by location-based services/ market volume in Germany (85 m EUR) still too low

No observable effects on the local advertising market

There is still a comparatively small market for German providers

Therefore, no cannibalization effects are expected

However, additional revenues were expected because of the novelty effect

Optionally shifting tendencies or budget restructuring

This potential development has to be further monitored and possibly to be operationalized for local advertisers themselves

2013

Source: Goldmedia, 02/2013 Picture: © Seyyahil_Fotolia.com

Thank you! Please contact us for further information.

Berlin, February 2013

Goldmedia GmbH Strategy Consulting Prof. Dr. Klaus Goldhammer | Christine Link | Johanna Tietz Oranienburger Str. 27 | 10117 Berlin-Mitte | Germany

Tel. +4930-246 266-0 | Fax -66 | Info[at]Goldmedia.de

www.Goldmedia.com

Pictu

re: ©

Seyya

hil_

Foto

lia.co

m

Location based services-2013_goldmedia_short_report_en

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