Like in Real Estate, the future of Mobile Advertising is in “Location, Location, Location”

Latest Facebook announcement  launching its new Geo-Location feature, “Facebook Places”, which will enable you to share with your friends where you are, check who is also there, find out what’s interesting to do around, read some tips from your friends about the place you are checking-in etc…was expected and is a major move.Facebook Places iPhone App

 To me this announcement just emphasizes the importance of Location-Based-Services (LBS) for online advertising. Even if for now Facebook is not announcing, yet, mobile advertising capabilities for “Places”, I am sure they plan to do it in a near future as it is such a big market opportunity for local businesses.

In my mind, there is no doubt Facebook is running after competing Location-Based-Social-Network-Services (LBSN) as Foursquare, Gowallas, Brightkite and others Yelp leading that space for now, and when you know that “Places” will include Localeze directory of 14 Millions local business listings, that people will be able to share and consult on their mobile Facebook, and when you have Facebook’s  500 Millions users base, (and just a few Millions users for Foursquare and Gowallas) it’s easy to figure out who is going to win that battle, and grap the advertising business opportunity attached.

Localisation is a critical addition to Facebook as it provides valuable contextual content to the already rich Facebook objects database. (Each action you take in Facebook, each information you add, each comment you write, each link you click on etc, become an object in Facebook database, what a mine of information for marketers, and how SCARY, isn’it!).

Mobile: Life is LocalWith this new feature Facebook is moving from a basic Social Networking space for friends to a business-oriented tool for local businesses, and that is indeed a BIG business.

This will also clearly position Facebook to compete more and more with Google.

Any Marketer dreams of reaching customers where they are, where they can buy their products or services, and that is what Location-Based- Services enable them to do, by pushing a targeted and localised online ad to the consumer on his device, nothing can be more efficient, this is Powerful Next Generation Marketing, as we conceive it at MarCom-NeXt.

Latest Mobile Marketing Association report shows that Location-based mobile ads outperform all other formats, with nearly 50% engagement rate.

LBSNS intensifies the relevance between social networking and geographical location. By dint of check-in record and behavioral responses in different geographical positions, LBSNS users can generate corresponding relationship with  local enterprises, which enables the local enterprises to identify targeted consumers and improve the correlation degree and accuracy of advertising service so as to raise the value of local advertisement marketing.

So, how big is the business opportunity? May be not huge right now, the local advertising market of LBSNS shows a promising development outlook, but this market is still in the early adoption period and it will grow quickly and expand from US to Worldwide.

Facebook and Twitter access via mobile phones has grown by triple digits in the last year.

Apple iAd LaunchFacebook advertising revenue forecast from advertising is around $1.3 billion in 2010, and $1.7 billion in 2011, and has not yet penetrated the Mobile Ad market, which they will do with “Places”.

Google generates 90 percent of Google’s revenues with AdWorks advertising.

Apple with its iAd platform Apple required its first advertisers to spend as much as $1 million to start and pay both a $10 Cost-Per-Thousand (CPM) and a $2 Cost-Per-Click fee (CPC). Please note: Apple announced last week that it’s winding down Quattro Wireless, the ad network acquired earlier this year, to focus on Apple’s iAd program.

Location-Based-Services once integrated via APIs to services as Facebook are going to change the Internet over-all, as the internet will become “less about the searching and more about the getting“, less about Search Engines and more about Apps, which is why Google may be starting to worry.Google Compass

Like in Real Estate, the future of Mobile Advertising is in “Location, Location, Location

Advertisements