Location based services – why operators hold all the cards

Donald Stuart, CEO of Brainstorm

Donald Stuart, CEO, Brainstorm

LBS – what’s the hype?

The area of Location based services (LBS) has been getting a lot of attention of late, and it’s no wonder, Juniper Research has highlighted that the Mobile Context and Location Services market is expected to generate revenue of $43.4 billion by 2019, up from $12.2bn in 2014. With this in mind it is clear why businesses within the OTT, telecoms and media space are vying to get their piece of this promising revenue stream.

Mobile marketing campaigns have moved beyond offering mass indiscriminate communications, to focus instead on delivering carefully targeted personalised messages. This transition is driving a higher ROI on marketing campaigns as the tools are now available to automate the slicing and dicing of audiences in a seemingly limitless array of permutations. Yet the addition of a further dimension; that of location; adds a powerful new trigger to deliver messages linked to your location at a given moment in time, the use of which has seen response rates surpassing those of standard generic campaigns by as much as 75%. It is this additional location capability which, when married with customer demographic and buyer behaviour information, is causing such a stir amongst the marketing populace driving both mobile operators, OTT service providers and mobile device manufacturers to consider ways to monetise the location network assets they hold.

The Importance of Opt-in

According to Cisco 47% of us are willing to receive vouchers to our mobile phone when we are at or near a retail store. This brings us to another important point which is in respecting the wishes of subscribers themselves and operators are working hard to develop ways to convince subscribers of the value of opting-in to receive personalised offers. What’s particularly impressive is that rather than conceding the upper hand to OTT players like WhatsApp and Viber as they did in the battle for SMS supremacy, MNOs have been quick to recognise the value of location based intelligence to enterprises. Far from dragging their feet, mobile operators are now at the forefront in offering innovative smart technology which can turn location data into a powerful business tool.

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