MforMobileFactPack_V2

7/31/2019 MforMobileFactPack_V2

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Mobile Fact PackThe Hottest Predictions for 2012

M for Mobile is proud to bring you the updatedand latest stats and facts you need to know for 2012and beyond, for the mobile, location and navigationindustry, in association with the launch of theLocation Business Summit USA.

4th ANNUAL

Location Business Summit USAConference & Exhibition

Designed specifically to help you pinpoint key LBS business modelsand highlight services that can generate significant revenue.

The 4th annual Location business Summit USA is the biggest meetingplace for hands on knowledge and networking for the mobile andlocation industry.

October 16-17, San Jose, 2012


2/55


Source: Mobile finds its USP in contextual relevance Paul Berney, CMO & Managing Director EMAE, MMA

Mobile has both caused and

enabled an irrevocable change

in consumer behaviour


3/55



Every interaction via mobile raises our

expectations

Digital Natives/Generation Y/

Millennials/Connected Consumers

have higher expectations


4/55


Source: June 6 2011, Competitive Strategy In The Age Of The Customer Forrester report

The age of thecustomer!

1900-1960

1960-1990

1990-2010

2010-?Sources ofdominance

Age of manufacturing

Mass manufacturing makesindustrial powerhouses successful

Ford, RCA, GE, Boeing, P&G, Sony

Walmart, Toyota, UPS, CSX

Amazon.com, Google, Intuit, MBNA

Contenders includeFacebook, IBM, BestBuy and Apple

Age of distribution

Global connections and transportation

systems make distribution key

Age of information

Connected PCs and supply

chains mean those who controlinformation flow dominate

Age of the consumer

Empowered buyers

demand a new level of

customer obsession

Successful companies


5/55



Contextual Relevance is the USP

of mobile when dealing with

the digital generation


6/55



Mobile is changing our

behaviour at every stage of the

customer lifecycle


7/55


Source: Strange PR

Consumers dont need (want) marketing


8/55


Source: NielsenSource: June 6 2011, Competitive Strategy In The Age Of The Customer Forrester report

Preferred source of product & service informationConsumer ratings

Consumer reviews

Companys website

Call centre

Email

Video clip

Live chat

Companys Facebook

Mobile App

Online advertisement

Companys Twitter

30% 50% 70% 90%20%10% 40% 60%

Social media sources

80% 100%0%

63%

50%

45%

30%

7%

9%

62%

47%

34%

15%

8%


9/55


Source: Jiwire

31%researched apurchase ontheir devicebefore buyingin-store


10/55


Source: European Technographics Retail, customer experience and Travel online survey, Q3 2010

Shopping...Which one of the following have you ever used your mobile phone for?

To check storeopening hours

To locate a nearby store topurchase a specific product

To compare physical store prices withonline prices, when shopping in a store

To check in-storeavailability of a product

To read customerreviews of a product

To check on the

status of an order

To look up online product informationwhile shopping in a store

Base 13,869 Europeanonline adults who ownmobile phones and986 European frequentonline buyers who ownmobile phones (multipleresponses accepted).

30%20%10%

Social media sources

Online Europeans

0%

22%

8%

19%

7%

15%4%

14%

4%

13%

3%

12%

6%

12%

4%


11/55



Mobile amplifies the power ofcustomer review sites


12/55



34%of US smartphoneowners said they had abandoned

a purchase in-store afterseeing a negative review

on their mobile


13/55



Mobile connects fans inmultiple locations


14/55



Mobile changes theway we interact with

our environment...

...and influences ourdecisions based on

that location


15/55


Customer journeys are not linear...

Loyalty loop

Active evaluationInformation gathering, shopping

Postpurchaseexperience

Ongoing exposure

Moment ofpurchase

Initialconsideration

set

Trigger



16/55



The mobileconsumer expects:

Convenience

Multi-channel

Real time

Dialogue

Engagement Control


17/55


Consumers are

mobileYourbrand must

follow them



18/55


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

70-80%of business datahas a geographic content


19/55


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


20/55


Global Evolution of Location Frederic Bruneteau, CEO, Ptolemus

The smartphone is changing

the time scale of location

Gionass

Gyroscope

Compass

A-GPS

Celluar towertriangulation

(Google)

WiFi positioning

3-axisaccelerometer

Compass

A-GPS


(Google)

WiFi positioning

3-axisaccelerometer

Gyroscope

Compass

A-GPS


(Google)

WiFi positioning

3-axisaccelerometer

A-GPS


(Google)

WiFi positioning

3-axisaccelerometer


(Google)

WiFi positioning

3-axisaccelerometer

iPhone 2G

iPhone 3G

iPhone 3GS

iPhone 4

iPhone 4S

June 2007 October 2011

A new positioning generationevery 10 months


21/55



2013 201520122011 2014 20162010

Millions

1,200m

1,000m

800m

600m

400m

200m

0m

Global smartphone sales (millions)


22/55



The smartphoneisbecoming our personal server

to the geo-located world


23/55



Location-enabled phones: Smartphones now exceed half of total phone sales in

Europe and North America

Location-enabled phone and smartphone arebecoming synonyms

Number of location-enabled phones sold will againdouble within five years thanks to a take-off in Chinaand India

Single purpose devices such as pocket cameras and

PNDs need to find a new positioning


24/55


Source: PTOLEMUS Insurance Telematics StudySource: Global Evolution of Location Frederic Bruneteau, CEO, Ptolemus

The smartphone can threaten single-purpose

devices such as Octo Telematics Clear Box forPay As You Drive insurance


25/55



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 stillfairly primitive and limited revenues

Location has to be integratedintelligently with other targetingcriteria (age, interests, gender, etc...)

Proximity marketing when user

near POS works well, e.g. O2 UKPriority Moments offer service

...and will overcomethe 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 advertisingagencies need building

Ultimately real-time auctioningplatforms for mobile inventory will

exist


26/55


The four chimneys are pushing all

players to integrate vertically


Nokia SiemensNetwork

infrastructure

Nokia/NavteqWPS

Windows PhoneAndroidIOS

BingGoogle Search

supl.nokia.comA-GPS supl.google.com

Symbian +Maemo + MoblinOS

Internet ExplorerChrome / WebkitSafari

Nokia/NavteqMap Bing MapsGoogle MapsPlaceBase

Nokia/NavteqAdvertising

platformMicrosoft

AdvertisingAdMob

iAd (QuattroWireless)

Google Maps

NokiaDevice

Search engine

Apple

NovarraBrowser

MotorolaiPhone

Nokia/NavteqLocal contentMicrosoft

Advertising

Panoramio/

Zagat

DVI StoreApp storeMicrosoft

MarketPlaceAndroid

MarketplaceApp Store


27/55


Major playersare allattempting to integrate the complete

end-to-end location solution



28/55


But ecosystemsare also ahighly effi cient way of building a

complete solution



29/55



The OS sponsor focuses more oncreating the right enablers and SDK

No need to develop all new services,third party developers do it

Number of services/applicationsincreases dramatically

Competition becomes more diffi cultbecause it is more complex to fight

an ecosystem


30/55



Glonass

Reached full operational capacity(24 satellites) in December 2011

Faster TTFF Dual-use most beneficial in urban

canyons

Somewhat superior service inNorthern latitudes

Different standards (FDMA vs.

CDMA) has slowed adoption butnow most chipset vendors support it

Other GNSS

Galileo will have launched first foursatellites by year end

Beidou achieves operationalpositioning capacity (only regionalcoverage)

GPS satellite positioning monopoly is

ending, as new constellations emerge


31/55


Market for indoor positioning

We spend 80% of our time indoors,IPS is the future:

Shopping malls, airports and offi ces to find specific goods or people Airports and hospitals securityapplications including theft, rescueand exitTrains and subways, for location-based content towards travellers

Indoor is where the business takesplace: shopping, contracts signed, etc.

Indoor technologies & mapsare emerging

Criteria for success: cheap, scalable

and accurate Dominant solution will be a

combination of technologies, notablyWiFi, 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

The mass market for indoor positioning is maturing,

setting off a transformation of our lives in the near future



32/55


Cell-ID has the potential to strike back

The performance of positioning technologies compared


Comparison factors

Performance

High

Low

100

75

50

25

0

Cell-ID

GNSS

WiFi

IP address

Reliability EnergyPresenceLow cost

Ecosystem LatencyCoverage

Opt-inAutomaticAccuracy


33/55


All these companies will want to know your cars location

Connected car services and players


Resource

management

Carmaintenance

Energymanagement

Multimodel

navigation

LBA/LBM

PAYD/PHYD

Social

networking

Carsharing

Finance

Traffi c &

other services

Stolenvehicle

recovery

bCall

eCall

Voice &messaging

Road usercharging

Resourcemanagement

Power suppliers

Mobileoperators

Maintenancefirms

Oil companiesBanks &

leasing firms

Navigation& search vendors

Insurers

Car OEMs

Assistanceproviders

Toilingoperators

Handsetvendors


34/55


Number of connected vehiclesin use in Europe (in millions)

Numerous factors are helping

The take-off of low cost embeddednavigation systems such as RenaultsVarinat TomTom

The eCall project in the EU, which isscheduled to be mandated in all newtype-approved cars and LCVs by end 2015

The ERA Glonass project in Russia,which will apply the same constraint toall motor vehicles in the Russian market

by end 2013The development of national road

charging schemesThe take-off of PAYD insurance

aftermarket systems

At last, geo-connectivity is reaching

vehicles in large volumes

50

40

30

20

10

0

2010 20122011 2013 2014


Other (SVR, speed camera warning systems)Aftermarket systems/Fleet managementAftermarket systems/RJCAftermarket systems/PAYD insuranceAftermarket systems/Connected PNDseCallsEmbedded navigation systems


35/55


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 flies with local search (pull)

Hence TomToms acquisition of iLocal

Challenging to design a large scale freemium model where both free premiumlevels 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

Navigation and local search are becoming one and the

same business



36/55


The 2010 Intelligent Transport Systems (ITS) Directive creates theframework for a European-wide implementation of eCall

The European Commission aims at mandating eCall for all newtype-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 allmodels from June

We expect the eCall box to be used as the gateway to connected

car services (connected navigation, insurance, stolen vehiclerecovery, remote diagnostics, etc.)

We expect the eCall OBU to be used as a

multi-service box for the connected car



37/55


PAYD trials & launches globally PAYD has reached its tipping point

Since 1997 (Progressive first 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

We expect the number of insurance telematics

vehicles to be multiplied by 50 by 2020

USA

UK

Italy

France

South Africa

Germany

Ireland

BelgiumSpain

Other

0 105 15 20


25 30


38/55


Power consumption for a large number of objects fromconsumables to home keys

Size and weight for low value consumables such as food anddrinks

Cost e.g. for low-end consumer electronics such as watches

Industries that are not used to integrate electronic componentsinto their products e.g. handbags or car keys; or that do not havethe location culture (digital cameras, surveillance cameras)

Ecosystem road blocks e.g. for credit cards or containers

What are the five current major challenges to

geolocate the 16 billion objects in Europe?



39/55


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

anddefine smart ecosystem strategies rather than just throwingup products to its customers!

Our upcoming Global Location Study will provide thetechnology and market insights



40/55


Location-as-a-Service (LaaS): a Platform for Location Services Steve Gray, CTO, CSR

GPSAttenuation

Level

40-45 dB

30-31 dB

25 dB

12-14 dB

Smallcommercial

building

IndoorArena/

Mall

2 levelparking

structure

Brick-faced

masonry

TypicalNorth

Americaresidence

Dense urbanenvironment

Woodenbuilding

Typical Indoor environments attenuate GPS beyond

detection for commercially available receivers

Advertised aidedcommercialC(A) acquisitionthreshold

(A-GPS cell

phones)

Advertised unaidedcommercial C(A)acquisition threshold

(A-GPS cell phones)

Cannot detect indoors


41/55



24 satellites orbiting ataltitude of 12,000 miles

Low cost GPS engine enableslocation in Smartphones

2D position requiresthree satellites

Positioning using GPS How it works


42/55



Existing WiFi and cellular signals aresurveyed and logged in a database

Finger prints of RF signals arerecorded in a database

Position is determined by

interpolating finger print data

Corporate WiFi is deployed forbroadband and indoor location

Angle-of-arrival, time-of-arrival or

received signal strength is used to

calculate position

Position server records locationdynamically


43/55


Enterprise/gov segment

Targeted at government and largeenterprises where there is a needfor content access control, campusmaps/WiFi tiles restriction (foremployees only), military-gradegeofencing, etc.

Market trends and attributes: BYOD,handheld location policies, MDM,Geofenced security (military grade).Location context Apps

Deferentiator: Indoor positioning and locations Agile middleware applications Boeing Irridium radio

Asset tracking segment

This segment is targeted at fixed(Vending sys, offi ce/lab/medicalequipment, etc) and mobile (goodsin transit, fleet, people, etc.) assettracking in large enterprises andhealthcare institutions.

Market trends and attributes: lowcost (


44/55


Location-as-a-Service (LaaS): a Platform for Location Services Steve Gray, CTO, CSRLocation-as-a-Service (LaaS): a Platform for Location Services Steve Gray, CTO, CSR

Total LaaS market (volume of units)

1,000,000,000

18% CAGR

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

0201620152014 20172013

Consumer LBS Total Market 209,024,554 246,313,077 283,601,600 352,684,041 438,594,256 Mobile Enterprise Total Market 129,535,398 130,800,752 132,078,759 133,369,547 134,673,243

Asset Tracking M2M Total Market 135,000,000 168,750,000 210,937,500 282,000,000 352,500,000


45/55

M bil F P k


46/55


Location Based Advertising: What does it mean to brands and do the agencies care? Asif Khan, Founder, LBMA

A location-based service (LBS) is an informationand entertainment service, accessible withmobile devices through the mobile network and

utilizing the ability to make use of thegeographical position of the mobile device.

Wikipedia

01 LBS

M bil F P k


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Location-based marketing (LBM) bridges the gapbetween all forms of marketing media. Inclusiveof social media, internet, out-of-home and real

life interaction. It is about the integration ofmedia to influence people in specific places.

The LBMA

02 LBM

M bil F P k


48/55


Source: TNS/Kanter Group

Smartphone ownership

50

40

30

20

10

0Global Emerging

AsiaEurope MENANorth

AmericaLatin

AmericaDeveloped

AsiaSub-

SaharanAfrica

30%

46%

31%

42%

21%

32%

46%

21%

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Why are people using location-based services?

50

40

30

20

10

0Navigation

46%

Finding friendsnearby

22%

Checking publictransport

19%

Findingrestaurants

25%

For a deal orspecific offer

13%


M bil F t P k


50/55


How much interest is there in using

location-based services?

People notcurrentlyusing LBS, butinterested

People notcurrently using

LBS and notinterested


62%

38%

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51/55



Preference for mobile offers delivery

% of respondents, January 2012

60

50

40

30

20

10

0Voicemail

8% 4% 9%

16%

Mobile App

11%10%

26%

12%

Text

32%

38%

16%

60%

Other

50%49%

26%

18%

Mobile web(email, etc.)

21%

13%

60%

26%

Opt not toreceive them on

mobile

4% 2%

12%

1%

US

UK

Germany

France

M bil F t P k


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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

Drive to web for online engagement

Drive to store for coupons and offers

Drive to experience at a location

What are brands trying to achieve?

CONNECT

COLLECT

CON

VERT

$

M bil F t P k


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ABI Research Mobile Augmented Reality, Thomas Alt, CEO, Metaio

Augmented reality in LBS

% of respondents, January 2012

3500

3000

2500

2000

1500

1000

500

02010

US$Millions

20132011 20162012 20152014

Mobile, in-App advertising

Mobile, in-App purchase

Mobile, paid applications

Handheld AR games

Mobile Fact Pack


54/55


Source: Augmented reality in LBS 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 millionin 2010 to $3 billion in 2016

Mobile Fact Pack


55/55


By 2014, AR will be on

every Smartphone

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