Pelago, Inc. Confidential

SMC Education SeriesFeb 10

Location Based Social Mobile Applications

Pelago, Inc. Confidential 2

What happens

next?

Other trends? Paper?

What happens to

spend?

Something to think about….

Pelago, Inc. Confidential

Social media is shaping buying decisions in the real world…

1. Physical world commerce is massive• 90-95% of commerce occurs in physical

world locations. Difficult to find digital channel for everyday life – buying gasoline, dinner with friends, date night at the movies.

2. Consumers are open to influence • Consumers want to be influenced. They ask

questions .

3. Consumers are always connected to social networks• 60%+ of U.S. mobile web traffic goes to

social networks.

4. They rely on online tools and social media to make purchase decisions (even at the retail store)• 70%+ of Americans leverage before making

purchases (24% even research shampoo!). • 49%+ of “connected customers” made a

purchase based on recommendations from a social networking site.

• 51% of shoppers used mobile device during ‘09 Christmas.

Pelago, Inc. Confidential

Who doesn’t own an iPod?

Pelago, Inc. Confidential

Think about this: iPhone Dwarfs iPod

Pelago, Inc. Confidential

Think about this: mobile to dwarf searches

8B US searches in August

7B iPhone PVs Per Month

Pelago, Inc. Confidential

Primer: Location vs. Place

Pelago, Inc. Confidential

Precision matters

Primary values:

1. What am I learning about myself?

2. What does it mean to others?

3. How can this data make my everyday life more fun or make information to me more relevant?

Pelago, Inc. Confidential

So what’s the deal with checking in?

What can I learn about myself?

What does it mean to others?

How can this data make my everyday life

more fun or make information to me more

relevant?

Did you know people go to

Ipanema Grill for lunch after going

to Seattle Art Museum

Pelago, Inc. Confidential10

So why should local businesses care?

1. People are voting with their feet

2. They are creating media

3. This is the opportunity to drive:

• Activation • Virality • Compulsion

Pelago, Inc. Confidential

What should they do about it?

Experiment!!!

• Activation: How do I get consumers to check-in?

• Virality: How do I get consumers to share something about my place?

• Compulsion: How do I keep customers coming back?

Pelago, Inc. Confidential 12

Activation and Virality in Action:

Whoa! We love you too!