A Look At Location Based Services (LBS) In Mobile Advertising
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Mobile advertising is increasingly getting lot of attention from everybody in the mobile manufacturing chain, be it the Device manufacturers, OS makers, app developers and even the mobile operators and interestingly the only thing that is single handedly driving this is Location Based Services.
Until recently application developers had to pay to the operators everytime the application asks for GPs information,but now with advances like wifi-based location tracking and Google’s latitude developers are able access the location information for free which is actually resulting in proliferation of Location based services.
Recently telephony electronics company Sagem teamed up with GPS experts BlueSky Positioning on technology that incorporates a GPS receiver and an antenna into the SIM card,this is one remarkable development as it’d help operators add location based services to those hundreds of millions of Non-GPS phones in the market.
Advertising on Location based services:
With increased availability of Location information be it through GPS or wifi,we are going to see lots of other Value added services besides Navigation getting leverage from it and most of them might be available for free and advertising is the best business model,here not only Location based services will use advertising for revenues but will drastically improve the relevancy of the advertisements shown to the user.
A step ahead, speculatedly Nokia is planning to release an ad-supported mobile phone which will be highly subsidized and recently Alcatel has announced it’s venture into mobile advertising where in it will identify cellphone users within a specified distance of an advertiser’s nearest outlet and notifies them of the address and phone number,”This is a vehicle that lets [carriers] extend their network assets” and “grab a share of the revenues that would normally be outside of their reach,” says Gani Nayak, president of Alcatel’s Rich Communications business. Alcatel will host the new service, testing revenue-sharing models as quoted on WSJ.
Still nascent a market in India with revenues around 100cr rupees, Mobile advertising is expected to grow very rapidly with a 50-60% Year on Year growth rate for next few years, while globally it is already big and continues to grow. Gartner predicts the worldwide mobile advertising market will grow from $895 million in 2007 to $14.6 billion in 2011.
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