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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

� Facebook

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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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