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Leveraging Location Based Marketing
An HSMAI Partnership Presentation with TIG Global
November 9, 2010
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Panel Moderator:
Robert Gilbert, CHME, CHA,
President & CEO, HSMAI
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POLL QUESTION #1POLL QUESTION #1How many people are participating inthis webinar at your location today?
� 1� 2� 3� 4� 5� 6� 7� 8 or more
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TodayToday’’s Presenters: s Presenters: Panel Moderator: Robert Gilbert, CHME, CHA,
President & CEO, HSMAI
Panelists:Brian Fitzgerald
Director, Search and Social, TIG Global
Loren Gray
Director of E Commerce
Ocean Properties Ltd.
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Brian FitzgeraldDirector, Search and Social, TIG Global
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Agenda
� What are Location Based Services (LBS)?
� Who are the players?
� What are the opportunities?
� What’s Next?
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About TIG Global
Our Company
� Corporate headquarters in Washington DC.
� International office in London
� Over 140 full-time employees comprising Client Services, Web Marketing, Web Services and Technology, Creative, and Copywriting
Our Clients
� Over 800 hospitality and travel clients
� Operate in all major markets throughout the Americas, Europe, Asia, Latin America & the Caribbean
� Relationships with most major brands
Follow us at blog.tigglobal.com and @TIGGlobal on Twitter
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What are Location Based Services?
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Location Based Services Overview
� Location Based Services
� Location based services are a broad range of services that are based on (or enhanced by) information about the physical location of the user or by their device
� A familiar location based service would be turn-by-turn directions using GPS technology
� Newer location based services are of the geo-social variety and leverage your network of friends (or other users nearby) and often have a “game” element to them.
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Key Statistics
� U.S. web traffic to geo social networking
sites has increased by 350% in the past
year (Source: Hitwise)
� More people are using the mobile web to socialize (91%) compared to the 79% of desktop users who do the same (Source: ReadWriteWeb)
� College students or young professionals in their 20s and 30s who live in urban areas are the most prolific users (Source: Naveen Selvadurai)
� Revenue: expected to generate revenues of over $12.7 billion by 2014 (Source: Juniper Research)
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Who are the Players?
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There are many players in the geo-social arena
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Geo-social players we’ll cover today
� Foursquare
� Gowalla
� Brightkite
� MyTown
� SCVNGR
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Overview Chart
Player Launched Users Platforms Other
Facebook February 2004 500M+ iPhone, Android, Palm, Nokia, mobile web
Foursquare March 2009 4M+ iPhone, Android, Blackberry
Gowalla March 2009 .5M iPhone, Android, Palm, Blackberry
MyTown August 2008 3M+ iPhone
SCVNGR 2008 1M iPhone, Android Backing from Google Ventures
Brightkite October 2005 2M+ iPhone, Andriod, Palm, Nokia, mobile web
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Partnerships
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How it Works – “Checking In”
� Choosing your location
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How it Works – Game Mechanics
� “Badges”, “Mayors”, “Items” and more
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How it Works – Game Mechanics
� “Trip” and “Challenges”
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How it Works – Sharing
� Users can share tips, photos and more with their networks
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What are the Opportunities?
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There are several opportunities
� Connecting with customers who are near you
� Increase foot traffic
� Increase engagement with your brand
� Build brand loyalty through rewards
� Marketing and selling promotions
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Sending targeted messages
� The idea of delivering messages to consumers based on location is not new
� SMS or text messages have been one method of connecting with customers who are nearby
� But there can be some challenges with text messages
� Geo-social services and applications are a new and improved way to connect
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Facebook Places and Deals
� Businesses can now create Deals on Facebook.com� Individual Deals� Friend Deals� Loyalty Deals� Charity Deals
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Foursquare Promotion – Starbucks Special displayed in
Places list Special banner
displayed on check-in
Tapping banner displays the actual offer
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More Foursquare Promotions and Specials
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MyTown Product Placements
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Foursquare Case Study: Explore Chicago� Explore Chicago is recreating scenes from Ferris Bu eller’s Day Off and
giving away a Foursquare badge
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What is the Future of Location Based Services?
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Evolution of Location Based Services
� Big players enter and gain market share
� Consolidation will be necessary
� Game mechanics will evolve
� Results will become more measureable
� Augmented reality
Augmented reality
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Loren GrayDirector of E CommerceOcean Properties Ltd.
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What Makes Proximity Marketing?
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What Makes
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The Three Basic Functions of Proximity Marketing
� Searching for something and booking / buying it
� Helping guests manage their stays
� Alerting and reminding guests of opportunities
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‘Searching for Something’
� Room
� Dining
� Attraction
� Event
� Activity
� POI
• Rate/Offer
• Coupon
• Directions
• Contact
• Content
• Unique Opportunity
• Assistance
• Local Info
• Advice
• Sharing
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‘Helping Guests Manage Their Stays’
� SMS offers during their stay (or push notices)
� Timed offers once a guest arrives
• Positive incremental capture (tracked) 19% (avg) within the first month for all three participating outlets (24% in F&B)
� ‘Tours’ tailored to their interests- GPS use
� Example of the ‘Duma Key’ Offer
• Offered a downloadable GPS Tour of all sites referred to in the book as a part of the package (www.geovative.com)
• $437,000+ in direct revenue over 12 months
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‘Helping Guests Manage Their Stays’
� Custom mobile platform use
� ‘Mobile Concierge’ for beachside ordering
• Replaced inefficient service to beach area (*Lowest GSS responses from all categories)
• Generated untapped revenue in excess of 26% all F&B outlets, (save vs Banquets)
� ‘Mobile Concierge’ for room service
• Ability to order while returning to room
• When combined with notifications increased room service revenue by 8% with in the first week
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‘Alerting & Reminding Guests of Opportunities’
� Use of the new proximity tools mentioned by Brian
� Foursquare – Always have a ‘Major’ offer and review demographics frequently
� Whrrl – Make a ‘Society’ so you can convey specials and ‘must try’ tips
� Gowalla – offer ‘items’
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‘Alerting & Reminding Guests of Opportunities’
� Claim ALL of your ‘locations’ and listings in the following:
� Facebook Places
� Google Local (Places)
� Yahoo Local
� Bing Local
� Foursquare
� Whrrl
� Gowalla
� Yelp
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Remember Proximity Marketing is Also…
� Google Coupons
� Facebook Ad’s
� Geo targeted PPC
� Local Placement ad’s
� SMS messaging to current guests
� Groupon / Living Social / Woot type sites
� Geofencing….coming soon
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Questions?Questions?Panel Moderator: Robert Gilbert, CHME, CHA,
President & CEO, HSMAI
Panelists:Brian Fitzgerald
Director, Search and Social, TIG Global
Loren Gray
Director of E Commerce
Ocean Properties Ltd.
Upcoming Webinars:
November 16 – Anatomy of a Social Media Campaign, with Signature Worldwide
November 30 – Focus on Profit – Session 9 of the Revenue Management Series
December 7 – A Look Ahead at 2011, with STR and PKF
December 14 – The Role of OTA in Your Distribution Strategy –Session 10 of the Revenue Management Series
To register for these and more, please go to www.hsmaiuniversity.org.
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TodayToday ’’s webinar is copyright 2010 by the Hospitality Sale s & Marketings webinar is copyright 2010 by the Hospitality Sale s & Marketing Association International Association International with All Rights Reserved.with All Rights Reserved.
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