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hyper-local ads and facebook adopts location

Big news in LBS today...we announced WHERE Ads, a service that delivers hyper-local ads to mobile application and web publishers.  Also, a small social networking site called Facebook confirmed (all off the record??) that they are going to allow their users to post location based updates.  

First things first....our news.  Yep, we are out in market with a hyper-local ad network.  Here is the press release.  We built WHERE Ads on our own product initially to deliver a better user experience, and based on the CTRs, we knew we were on to something.  Consumer reaction to the ads was quite positive, with many users thanking us for removing the ads. 

Based on this success, we figured some of our friends in the mobile publishing space were experiencing the same issues and would appreciate a creative solution.  We spoke to a handful of companies, and they all agreed that what we were doing would help them better monetize their traffic.  Thus a new ad network was born.  It's still early, but we are seeing great reaction from the users of our publisher partners sites.  I also think there is pent-up demand for local ads on mobile.  @NoahElkin of eMarketer had a great write up.

In other news, Nick Bilton at NYT had a post today about Facebook allowing users to share location in their updates.  Notable comments and speculation as a result of the launch include many thinking that this move will shove FourSquare, Loopt, and Gowalla into the deadpool.  Bilton says that a FBer claims that their motivation is focused elsewhere:

"Instead, Facebook wants to go head-to-head with Google in the fight for small-business advertising. Facebook redesigned its business pages last year, with the hope of offering more features for small-business owners. According to Facebook, the Web site currently hosts more than 1.5 million local businesses from around the world."

Hmmm...two big moves from leaders in their respective markets going after small business location based advertising.  This is gonna get interesting.

a reflection on the past 4 months of LBS

I was reflecting this week on some major moves by key players in the mobile LBS sector.  Let’s go back a few months.  TeleNav, on the back of distribution deals with Sprint and ATT file for an IPO.  Next, Networks in Motion sells to TCS for $175M.  Coincidently and or simultaneously Google announces their free Map and Nav product on Android. Impeccable timing if you are not a fan of TeleNav.  A few months later Nokia announces free Nav on all of their devices.  

 

A few weeks at MWC in Barcelona we hear from Google that there are 60k new Android devices activating every day (without any growth that will be 21.9 million in 2010), a formidable base of users for free nav.  Next we hear that Nokia’s #s are equally impressive boasting 1 million new users in 1 week.  We also hear news that Garmin along with Asus are releasing an Android powered Nuvi phone.  Wonder if that one will have the free nav feature enabled???  One of the key takeaways is that the OEMs see tremendous value in LBS and have taken strong positions in their utilization of the feature as a differentiator. 

 

A quite announcement comes out of Apple that they are restricting mobile location based ads.  Without specifics from Cupertino, the web was awash in ideas of what this could mean.  As I shared with Dan Butcher at Mobile Marketer, I think this is about preservation of user experience.  I think it is also a very real recognition of the value that location ads to mobile advertising.  Game and app developers must think the same thing as they are all chomping at the bit to add location ads.  As with the nav example above, this move by Apple signifies the value of location with respect to a major economic category, mobile advertising. 

 

Pretty funny post from MG Siegler on TechCrunch gave a comical view into how users of FourSquares check in feature can leave themselves exposed to a ravenous group of twitter scouring burglars.   This was based on a new site called pleaserobme.com.  BTW, disregard my check in from Logan Airport this am.  I am standing guard, barricaded in my house with loaded shotgun and second amendment in hand.  The take away here is that location is sensitive information and should be in total control of the user.  If you do not want someone to know where you are, don’t tell them.  I think it is pretty simple. 

 

So, what does all of this mean?  How are these stories connected?  Like retail, it’s location location location.   But it is also money, money money.  LBS and LBA (Location Based Advertising) are clearly on their way to becoming significant sources of revenue for a lot of companies.