On SNAKK Media, Derek Handley and Kiwi Entrepreneur Success

The Snakk Media AGM, appropriately held in the Sir Paul Reeves Building of AUT in Auckland last night, appeared to be a classic event, with typical investors, asking typical questions. However, in my opinion, it wasn’t, it was a meeting in a room made up of some of the finest minds in marketing and leading edge mobile technology.

SNAKK AGM

I was very proud to see entrepreneur, Derek Handley, on the stage surrounded by other Kiwi business leaders and visionaries including Tim Alpe, Max Flanigan and GM, Andrew Jacobs who I met for the first time last night.

I’m sure the media will cover the story, but here’s my take; on a tangent. I have always believed in Derek, his family and team from the day I met them, many years ago as they were preparing to found The Hyperfactory. They were the classic start up and I admired their passion and enjoyed their company, because they were driven and they were passionate about the same things I was, and still am. I love the company of positive, can do, will do people.

Snakk has allowed Kiwi investors to invest in a company that may never do a huge amount of business in New Zealand, which is really exciting, because it is not an opportunity that comes up often. As was pointed out, 2 years ago mobile digital advertising spend in New Zealand and the UK was 1% of the total spend. Today in New Zealand (where I have been trying to educate agencies on location based marketing and Augmented Reality, the percentage remains at 1% and in the UK is now 23%. In Australia they have the third fastest growth in the world (sic) of smartphone and tablet users, so it is appropriate for their head office to be in Sydney.

There was a lot of discussion about the threat to live TV with so many people now streaming to their mobiles and time shifting. Snakk didn’t mention all the technologies, but I am confident that they have a lot of tricks up their sleeves so that people like me who watch a reasonable amount of TV, while using my iPad or mobile, and MySky, will also be able to receive the messages I want. 

Here’s where I get excited. I want, and assume you will too, my TV. When it comes to advertising, I’m a marketer, but I don’t generally like watching ads. I guess the main reason is because most of them are not relevant to me, or at least not relevant to me at that time. I want them when I am open to buy.

So here are some of the things that I wanted to hear (and did either directly or between the lines):

• Profile. I want ads that match my profile. Having them appear on my third screen (my mobile or tablet) in conjunction with what I am watching, based on my interests is something I might welcome. If there is an interaction between my device and the TV program, then it may not matter if I am watching live or time-shifted, depending on my:
• Context. A lot of the future of mobile advertising comes down to an app on my device knowing things about me. What I am interested in, where I eat, drink, play, get entertained. What I am interested in at certain times of the day or day of the week. Market food to me at a time I am likely to be considering a meal. Then of course there is:
• Location. If my mobile knows where I am, there is so much more you can do. If I like coffee, I’m walking downtown and there is a cafe that wants my business, let them send me an offer together with a reward of free WiFi.

On another tangent, the awesome podcast from Asif Khan and Rob Woodbridge of the Location Based Marketing Association: This Week In Location Based Marketing mentioned that where a geofence is used for guerilla based mobile marketing, they get a 12% click through rate. Just to explain, imagine you walk into Burger King and your mobile bleeps you a notification offering you a free upsize if you go to McDonalds up the road and buy a Big Mac combo.

This is where people started to get excited and concerned about privacy and I need to mention the MAC, pun intended. Effectively it is possible for apps to learn about you and your behavior without having your personal details. Effectively they track your mobile, not YOU. It’s not quite that simple and that is why in the early days of The Hyperfactory (I didn’t actually work there, I suppose you could have called me a Hyperfactory groupie) we started to set up a Mobile Marketing Association, with the view of self regulating to ensure the Government didn’t over regulate. The key was around allowing people to know what information was held about them and giving them the right to revoke access to it.

This blog is getting way too long, so I’ll finish with a few quick thoughts on Foursquare. I wish I had paid more attention to Derek having shared an office with Foursquare, I think I made a mental note to talk to him about that, but I didn’t. Maybe I still will.

The question was asked as to whether Foursquare was viable and the general answer from the panel was, not really. Derek was more retrospect and pointed out that the issue in New Zealand has always been one of scale. In New York City scale isn’t a problem, the population is over 8 million people. They can afford to have sales people in NYC and its easy to segment them.

In New Zealand there are actually a reasonable number of users, but Foursquare hasn’t really been interested in them because we are too small. I briefly became a Foursquare Ambassador and saw big opportunities for proximity based marketing. I saw a business model for myself with Foursquare, but they would not allow me (or anyone) to manage multiple businesses on behalf of customers. Each account had to be managed individually and for New Zealand that was a fatal flaw.

For those who think Foursquare is out, have a read of this story from Fast Company.

Did you go last night? What did you think? I think this is going to be a very successful global company and look forward to being involved somehow, if only only the sideline. I have watched and met many successful people over the years through my business network and Derek Handley is a Kiwi that remains underrated imho despite all he has achieved to date. In my opinion the shares are well undervalued right now. I’d recommend at least buying a few.

Footnote: I do not own any shares in Snakk Media. I do not work for Snakk Media in any capacity. I would seriously consider both though:)

Congratulations to Julie Landry, Vaughn Davis and the team for an excellent event.

Advertisement

7 Stories about Using GPS to Recover Stolen Mobiles

GPS is playing a major part in our lives these days and it is a brilliant tool to protect us from crime, or at the very least recover things that have been stolen and catch the people who stole them. In the USA 113 mobiles are stolen EVERY MINUTE and most of them are sold overseas. In many areas including New Zealand, iPhones are as good as cash for someone wanting to make a quick drug buy. 

Often we don’t realise how easy it is, despite the fact that we pretty much all have one or more GPS and location enabled devices on us. My iPhone and iPad both have SIM cards which are on all the time. If either of them went missing, I can trace them, create an audible tone to help me or police locate them and I can wipe them forever so they can’t be reused if someone stole them. We all use GPS apps of some sort, even if it is just the mapping application on our phone. We just don’t think about other ways that we can use this technology, or how the tech can be used to catch people who want to deprive us of our property and our safety.

The good news is that when people are smart and use an application like Find My iPhone, if not the thieves, then the receivers can be caught and often Police find a lot more than just your mobile. Let’s not make it easy for them.

If I went missing and I had my mobile on me, I could be found. Of course the Police would need a warrant to achieve that, but bottom line is they could. I also check in with Foursquare and other applications, so often my last known location can also be pinpointed.

If you follow my blog, you’ll know I love stories where GPS catches people in the act of, or following a crime. Here are a few recents.

1. A drive by shooter gets caught within half an hour, by the GPS in his rental car in Providence R.I.
2. Aspen Police leave bikes as bait with GPS trackers on the ready.
3. Find my iPhone helps recover stolen iPad and bottle of whisky, 3 people arrested in Scottburgh.
4. Utah Police recover $200,000 worth of tequila using the GPS in the stolen truck. 
5. Here are 3 more stories from Techtrace, a company that sells an app that helps you protect your data and recover your mobile.

It’s Hard For Retailers To Embrace New Mobile Marketing Technology

I’ve been engaged in a conversation in a mobile marketing group LinkedIn discussion where people involved in solutions such as mobile coupons are complaining that retailers are intellectually lazy and not looking to embrace new technology.

I argued that most retailers focus on BAU (Business As Usual), working in their business employing strategies and technologies they have used for years, which they understand and can deal with. They do not spend anywhere near enough time working on their business, including strategies to embrace new technologies.

Many retailers have been hurt by one-day deal companies, where they gave up 50% and more in GP in the hope that if they gave great service, they would win new loyal customers. Of course we now know that didn’t work and the only ones that made big money out of it were one-day deal companies. They didn’t have to invest in inventory or carry any risk to speak of.

I’ve presented at a number of conferences on the topic of mobile and location based marketing. What I found really sad was that of all the delegates, the number of retailers at these events could generally be counted on the fingers of one hand.

I’ve been looking at how I could help retailers, particularly in New Zealand and Australia with solutions available today in a cost effective way. I think I have come up with a solution, but its going to take me a fair amount of time and money to deliver.

I will start in the area of Travel and Tourism, largely because they are more focussed on customers who are actively looking for services and new experiences and the industry is used to investing to win new business. Their market is also tough and the traditional business services continue to largely support those who own the systems, ie reservation engines, directories, commissions to tour operators, rather than retailers themselves. These businesses are easier for me to access and easier to quantify direct ROI. Also the individual transactions often have a higher dollar value, so if I can demonstrably increase their cashflow and profit and share in the gain, I can recover my costs more quickly.

I was thinking about how hard it is to get retailers out of the shop to talk to them and from years of calling on owner operator retailers in the past, trying to talk to them in their own environment with customers in store, that’s all but impossible.

So I’m thinking retail readers, if there are any here, and would welcome your feedback on the best way to get in front of you and your peers. The problem is that most of them will never read this. The majority do not attend retail conferences, they don’t even participate in their own main-street organisations. They don’t even do something as simple as co-promote their neighbours. I remember years ago hearing Mark Blumsky (past retailer and Wellington Mayor) talk at the New Zealand Retailers Association conference about how he collaborated with his neighbours by giving away free coffee coupons at the next door cafe to people who bought shoes from him and the cafe gave discount coupons for shoes to their patrons. Leading retailers (because they were at the conference) all talked about it during the lunch and coffee breaks, but I don’t know if a single one of them ever emulated the exercise.

We have amazing free services such as Foursquare and people have probably used one of these apps to check into your store. They may even be your Foursquare Mayor, but you probably don’t even know what Foursquare is.

You need to embrace mobile technology and I want to help. But you’re probably not reading this, so you will have to wait until I have helped some other people first. If you are reading this, leave a comment, connect with me and others who want to see Australasian retailers thrive and grow in this exciting new world. Learn at your own pace, but please step outside of BAU and do something. One little step a day is 365 steps a year and that’s quite a lot.

Don’t go on a Road Trip without Foursquare

I’ve been writing a series of blogs about my recent road trip in the USA and the applications that helped and didn’t help me along the way. The last couple of blogs were about TripAdvisor which was a big help when it came to accommodation, but not great for much else.

I’ve been a big fan of Foursquare for a long time. You’ll find it mentioned in many of my blogs. One of the common threads is that people all over the world are ‘checking-in’ using the GPS on their mobile phones to all sorts of businesses, leaving tips and comments. There are recommendations of favourite food, or great service through to comments about lack of hygiene in the bathrooms.

The really frustrating thing is that the vast majority of businesses that get a mention on Foursquare have no idea what it is, or that they are involved. Foursquare is of course well-known by people in marketing roles, especially those involved in social media. Most of my friends in the information and communication technology industries use it. I’ve written a number of blogs trying to promote it to businesses in the hospitality and tourism industries because it is free and because tourists and travelers are using it. I suspect it mostly falls on deaf ears.

Many of the hotels I stayed at on my trip were on the outskirts of towns and somehow we managed to pretty much always arrive around 5-6PM tired and hungry. Where to find somewhere good to eat? Initially we went for walks or drives, but we really just wanted to relax. I quickly found that Foursquare was the best way to not only find out what was nearby, but also to find what places people recommend, or don’t.

You can search from a range of items based on proximity including Specials, Food, Coffee, Sights, Arts, Trending and more. You don’t just have the option of searching in proximity to where you are, but effectively you can pan the map for the bigger picture, or search by place-name for your next destination.

Baby Alligators

Using this we found some great restaurants and bars and also managed to confirm the location of an alligator hatchery in Louisiana that the navigation unit placed about a mile wrong in the middle of nowhere, which was pretty disconcerting when we were driving on the wrong side of the road (for us) of some very narrow country roads.

I do have to say that I only found a few specials using Foursquare, which reinforced my experience that hundreds of thousands of businesses are missing out on opportunities to pro-actively win more business.

I also kicked myself after spending 45 minutes waiting for a quesadilla at The Iron Kettle restaurant in Lynchburg, because if I had used Foursquare I would have read a comment left by a previous visitor saying: “Avoid. Slow service. You could walk to New York and get a three course meal in the time it takes for a simple burger here.” They were right too. To her credit, the waitress refused to charge us for our lunch, much to the disgust of the manageress.

Foursquare History

That brings me to another very cool feature of Foursquare and that is the ‘History’ function. If you log on to your Foursquare account and select history, you will find a chronological record of every location you checked into including the time, date and any photos or comments you made at the time. I had originally planned to start a travel diary using My Vacation on my iPad. I have to say that lasted about 3 days. We were just so busy doing and planning that we just didn’t feel like keeping a diary. Turns out we didn’t need to. That alone is a great reason to use Foursquare next time you are going on a trip. Check in, take photos, make comments and you have your travel diary.

Pay it forward and leave tips, good and bad about the locations you check in to so that others can benefit from your experience and learn from mine as well, that even if it is right there in front of you and looks OK, check for tips and comments other people have left. As I’ve said in previous blogs about TripAdvisor, if one person leaves a bad comment, take it with a big grain of salt, but when there are several, where there’s smoke, there could well be fire.

I love Foursquare and feel it is perhaps seen by many, such as those who still mock twitter, saying “I don’t care if you had a coffee!” as a waste of time. I say that it is a wonderful marketing tool, a great site and app for exploring new places that you may not otherwise have found and definitely ranks as my favourite global Points of Interest database.

Give it a go, whether you are travelling on holiday or just looking to try a new place to eat, have a coffee or be entertained. If you find it useful, share your own tips and comments, pay it forward.

I also welcome comments on my blog. What do you like or not like about Foursquare. What have I missed? There is of course much more including game mechanics, leaving comments on other people’s check-ins, mayorships, badges, friends and lists and the ability to add new locations on the fly and share them with the rest of the world. There are also many 3rd party apps usng the Foursquare API’s. What are your favourite features?

Apps to Aid Your Road Trip – TripAdvisor

If I had only one application to use on my road trip it would be tripadvisor. Having said that it wasn’t enough on my road trip although I spent more time using this app than any other. I put a lot of planning into the trip before hand and contacted US State Tourism organisations asking for information. Only Tennessee came back to me with a booklet including useful maps of the whole state and things to do, places to see, which was great. I filled it with post it flags.

Using Trip Advisor at one of the many hotels I stayed at last month

All tourist organisations have material like this book, but they don’t make it easy to access and they don’t appear to collaborate interstate. This is a major negative for a traveller on a road trip that regional tourist operators in New Zealand and Australia should also think about. I managed to get a similar book for Louisiana when I arrived in New Orleans, which looked like it was designed by the same company. I was lucky that the property we stayed in had one in the room. Otherwise you need to find an Information Centre, but of course these aere widely spread out and you need info to find one.

The biggest problem was that these books were segmented by town or county and not well linked to the main map. They were designed more for people who are looking at locating themselves in a town for a holiday and exploring from there. Also the maps for each state ended strictly on the state line, so if there was something worth enjoying on the other side, it wasn’t going to be on the map. This makes it really difficult to plan a multi state holiday. It would be far better for State and Regional Tourism Operators to work together to mutual benefit. I’m going to cross the line whether you make it easy for me or not.

So back to tripadvisor. If you install it on your mobile or iPad it will help you find Accommodation, Restaurants, Flights and Things To Do, sometimes. What I found was that they worked pretty well in cities, which was the same case with apps such as Foursquare and others, but when you go to rural USA, which was my plan for 3 weeks, the information tends to be more limited to accommodation and sparse when it comes to the many interesting attractions that people have put huge effort into but leave most people blissfuly unaware of them.

My main use for tripadvisor was accommodation and this was really interesting. When you travel through rural America there is a huge variety of accommodation options from very cheap to very expensive. The great thing about it is that it is full of reviews from people who have stayed at those properties. Reviews is something that scare the hell out of tourism industry publishers who charge people to list on their publications, websites, reservation engines etc and in New Zealand some property operators have complained about competitors giving them bad reviews, therefore saying the systems don’t work.

My message to them is that I trust my peers more than I trust advertising, especially those who have stayed at the properties. When you do advertise, make sure you are honest and deliver on your promise.  When you say you have high speed WiFi Access throughout the property, make sure you do because this could be the deciding factor as to why someone books and stays with you and the one negative if it doesn’t work, that they will tell the world about.

For the app user:

• Read many reviews. Look at the dates they were posted and read them carefully. Often there are unique stories where the person had unique needs or expectations that were not met. The more reviews you read, the more you will get the real big picture. Some people are unreasonable or feel that if they are doing a review they have to find fault. Do other people contradict their comments or are there common threads?
• Think about what your needs and time frames are. For example I got a cheap hotel for one night in New Orleans as we were arriving at 1AM and leaving again first thing in the morning. The review said it was clean and tidy but the air conditioning was noisy. They were right, but we knew we were going to be so tired after 30 hours of traveling that it wouldn’t keep us awake and the price and location was good.
• We ended up rating properties based on the things we were looking for and canceling out any that looked dodgy, for example several had complaints about bed bugs.
• We were able to ‘star’ the ones we thought were ok for a re-look.
• We also looked for situations where people had complained and the manager of the property came back and offered solutions and responses. In some cases there were managers who responded to every comment good and bad.
• The problem is that there are many options and when you are doing a road trip and trying to find attractions etc, you can easily waste hours of what should be relaxation time on your trip, but this is one of the costs of being a FIT.
• Tripadvisor offers many choices of reservation engines and price checks. I quickly found that once I had found a property I liked, a phone call to their front desk not only got me a cheaper price than all of the reservation sites, but also cooperation on a better room. Many properties will put you in a crappy room next to the laundry, the road or the busy swimming pool when you get a cheap online booking. If someone recommends a room number and their review sounds like what you are looking for, ask for that room.

Tips for the Tourist Operator:

• Your property is likely to end up in tripadvisor whether you submit it or not.
• People will talk about your property whether you like it or not. Most of them will be bona-fide guests who benefited from the application and are therefore sharing their experience.
• Put yourselves in their shoes. Your business is about hospitality and for your guest it is totally personal. Treat them as you would your family.
• When people make a comment about your business, good or bad, acknowledge and respond to it.
• If you sell rooms cheap on reservation engines don’t automatically give them the crappy room that you never sell if there are better rooms that are going to stay empty. I had a property in Auckland, Sebel Suites, do that to me early this year. They said they could only give me a room with a view of the carpark, because I had booked
  

  Sebel Marketing

  on a cheap promotion. The thing was that they didn’t sell many of the nice rooms overlooking the beautiful Auckland Viaduct Basin that night (I followed up the next morning), but if they had, it wouldn’t have been fair to the people who paid full price. So here’s my advice to them, which the Duty Manager didn’t want to hear. I live on the outskirts of Auckland. I have the choice to go home, but sometimes my wife and I like to go to a show, or out for a night, have a few drinks and not have to worry about driving home. We have stayed in many properties in Auckland. We have told all of our friends and tripadvisor which ones we liked and which ones we felt let us down. We will never again go to the Sebel Suites, we will go back to hotels like the Sky City Grand which has some great promotions on their site. As I said, it travel and tourism is personal.

• Make sure your business is on sites and apps like TripAdvisor.

Bottom line, I almost hated tripadvisor by the end of my holiday because we became almost fanatic about reading the reviews. We found the star ratings didn’t help much and whilst there was a function to save the ones we wanted to revisit, we couldn’t also flag the ones to avoid. We spent a huge amount of time on the site, BUT in every location we found exactly what we expected. We knew which rooms to avoid, and quickly learned to read between the lines.

For developers, this is an excellent site / application to learn from, not perfect but very good, even using your location on your mobile to help you find locations. For users, do give back. If you value crowd sourced feedback and make decisions based on it, you need to give back as well. If you are in New Zealand or Australia, talk to us at GeoSmart. We can help you with practical experience as both frequent travellers and users of apps and a mapping company that cares very strongly about the quality of our location-based data, maps, Points of Interest and the success of applications developed using it. We are local and keen to help. If you are here, but aiming for the world, we can help you get a start based on what we know about the industry and our experience as travelers. We want to help grow New Zealand international success stories.

Planning a road trip somewhere or know somene who is? The may be interested in this series of blogs, which they can find at https://luigicappel.wordpress.com Please feel free to forward this to anyone you think may benefit from it. I wish I had been given a lot of this advice before I left for my trip.

I will follow this up with some ideas as to what would have made tripadvisor a better app for the road tripper, which may be of interest to people looking at developing apps for travel and tourism and am happy to discuss my ideas and experience.

Augmented Reality and Face Tagging

Given where Facebook, Foursquare, Google+ etc are going with Face Tagging and the mobile apps are heading with Augmented Reality using GPS and compass, this is not at all far fetched. Check your privacy settings people.

Moores Law in Location Based Applications

Have you ever noticed that whatever application people come up with, you are always hungry for the next big thing? Well I am, especially when it comes to mobility and location based applications. I and several of my friends and associates tend to look 5 years into the future on a regular basis and are always looking to innovate with features or technology that either doesn’t exist yet, is still too expensive, or the target market still doesn’t get it. That’s probably where we will always live.

The good thing about that is that as a consequence of our focus, the building blocks for the things we dream about become much more apparent to us when they arrive and we want to share those things with you.

There were 2 standouts for me this week. The first is that Foursquare is launching push at their hackathon which starts tomorrow. You can read more about this on my GeoSmart blog. Basically it means that developers from tomorrow will be able to use an API that sends a push notification for users of their apps. For example a bar could send a notification to you telling you that there are friends of yours in the bar and offer you a deal to come and join them.

The other is in combining Location Based Technology with Game Mechanics, or Gamification. There is a very good 101 presentation about this on Slideshare by Aaron Strout of WCG.

I’ve met with a number of people developing location based games and the game element is a factor that I believe will really pull people in. I have just downloaded TapCity onto my iPhone and iPad after watching a podcast video interview on Untether.tv (one of my favourite location based podcasts) with Dave Bisceglia co founder and CEO of The Tap Lab. I strongly recommend that you watch this video or listen to the audio version if you are interested in location based games or proximity based marketing. These guys have big plans and dreams and I believe they are going to be a huge success. I have to also mention how impressed I was with their response to a couple of questions I had from them.

If you join the game, you will find I have 2 personae, Luigi C and Claes C, mainly because I first set it up on my iPad and then found that it was more suited to my iPhone. Anyway try out the app which you can download in the iTunes Appstore for free, friend me and tell me what you think. I was pretty impressed that for a relative start up, they already have players all over the world, in fact someone already owns my office! I won’t settle for that, but was impressed that it was even there.

The concepts are all very well, but if you want to look at proximity based marketing, location based games etc as part of your marketing plan, the best way is to experience what someone else is doing. As you will learn in the interview or on their website, this is just the beginning for them. They have some very exciting plans. What I don’t know as yet is whether they plan to release API’s or whether all their development is going to be inhouse.

Either way we can learn a lot from these people. I hope they are hugely successful in monetizing their games both for their innovatio and foresight and to show everyone else that this can work. If they can sell virtual items in the same way as Zynga has on Farmville, then imagine what Burgerfuel, Borders, your regional tourism operator, world cup events like rugby organisors could do with real items!

Telco’s want in on Daily Deals

It was interesting to learn that O2 is now going to get into daily deals. They will be the first British Telco to enter this market and according to the Financial Times, they are going to invest £6 Million into their daily deals service with the expected participation of 3,500 high street brands. Shaun Gregory, O2’s managing director of media, said that their opt in process was going to be less clunky than that on Facebook and Foursquare etc. and would not require check ins. This effectively means it is not a location based service at all, but yet another spin on the Daily Deals I wrote about in my blog yesterday.

Ironically I and many other people in the telecommunications industries over the years have been trying to convince local telco’s to support payment for products via mobile, including vending machines, pointing out the enormous value in clipping the ticket on transactions. Probably about 12-15 years ago I was able to buy Coke from a vending machine at the local Ericsson office, but it was only ever a Beta service.

Amazon is also getting in on the act in the USA with Amazon Local which is yet another spin and hardly local given that it works in exactly the same way as the regional deals every other Daily Deal site offers, noting to do with check ins. It will at least support local businesses in the same way as other sites does with vouchers etc to be redeemed in local eateries and stores with the same debatable results. Amazon certainly knows the value of clipping the ticket as I mentioned in an older blog with a link to a Harvard Business Review Clip of John Donahoe explaining what his business model is, and I can tell you it is now selling books.

Eventually if you keep following this blog, I will get to the point of the value of using Location Based Marketing instead of Daily Deals. This is starting to seem a whole lot like the boring unimaginative reality TV shows that all the networks are rolling out. It’s much cheaper to imitate than to innovate and of course you are encouraging them by watching, because if you didn’t watch, then they wouldn’t be able to get advertisers to promote their daily deals businesses!

More on Location Based Applications and Privacy

In an article at LBS Zone, LeClairRyan attorney Kevin D. Pomfret says businesses should step forward to educate Congress and executive agencies such as the Federal Trade Commission (FTC) about the breadth and scope of location-based technologies, as well as the industry’s enormous potential.

This is something I have been saying for some time in past blogs. If we get Location Based Services applications right, they can enrich our lives in so many aspects. For example:

• B2C Marketing. I would welcome personal location based marketing, based on my location, time and interests. Tell me if there is a hot deal on a new guitar pedal or music software as I drive past a music store on a Saturday. My girls would love to be told there is a 2 for 1 coupon on the latest summer fashion as they walk past a shop and their colors and sizes are in stock.
• Health and safety. If one of my relatives is ill and needs medical help while on vacation, a blind or disabled person becomes disoriented, a diabetic travels and forgets their insulin, a car’s airbags deploy on a remote country road. These are all instances where consumers can be aided by LBS apps and help directed to them with ease.
• Entertainment. Rugby World Cup year starts in less than 24 hours in New Zealand. Wouldn’t it be great if people can sign up to services that know where in the country they are, what they are interested in and can guide them to other activities based on time of day, interest and location? It could be golf, a cultural performance, Happy Hour, a concert or music festival, you could opt in before hand with your interests so if you are a ballet fan, you don’t get guided to a Christian Death Metal Grunge Fest.
• The Road Trip. An application that provides car navigation, access to traffic information, entertainment, allows you to connect to your social networks, upload photos and blog, find ‘friends’ close to you and more.

We’ll see more of these in 2011, along with apps from Facebook, Google, Apple, Foursquare, Groupon, Twitter and hundreds of others. But what about the risks?

When you sign up for these applications, do you know who you are giving access to? Do you know whether you can opt out? Do you know of the service has the ability to delete your information if you decide to opt out. Often the services themselves don’t have that ability because Google and other services have cached it and even if they delete it, it still exists in other places.

It is a well know fact that criminal elements already use sites such as Facebook to identify people they want to commit crimes against. It might be that they want your car, your jewellery, your 65″ 3D TV, all the Christmas presents you displayed on your profile, or just to ransack your house. It may be nothing to do with you, as they say in the movies “Nothing Personal, this is business”.

You could follow this thread and think, this guy is anti LBS. Wrong, its how I make my living. I love it for what it can do for me and you. I just worry about how it can be used and believe it is incumbent on the developers to make the applications as safe as possible, to provide privacy controls and make sure people know how to use them. They might also want to consider liability insurance. I’ve heard of insurance claims by people who drove their cars into rivers because their nav told them to turn right. It won’t be long before there are claims from people saying that it is the fault of the social media location application, which indirectly told a car ring that their expensive sports car would be parked at the airport for 2 weeks.

The article that set me off on today’s blog was about educating politicians, something that needs to happen all over the world, because these applications go international very quickly. It is also necessary to educate the developers because they are focussed on what they want people to be able to do with their apps, not the inherent risks of uses they hadn’t considered. I often want my ‘friends’ to know where I am, but I don’t want people who are not my ‘friends’ to know where I am or where I am not.

This is not my first blog motivated by Pomfret. In September I wrote about Location Based Apps and Trust, prior to that Proximity Based Marketing and Trust, and a whole series of blogs around Who’s Looking at You on Facebook. In one of them I thought up a name at random, searched for someone with that name and found out a huge amount of information about the person. I found it to be very scary, what I could find out about that person. Add location to that mix now and it could become downright dangerous.

Of course the tables can be turned on crims as well as law enforcement agencies can use the same apps to find out what they are up to and where.

Location Based Applications and Trust

I just read a blog by Kevin Pomfret, Executive Director of the Centre for Spatial Law and Policy, about the decision of Craigslist to pull it’s Adult Services section after finding out that people had been using it for prostitution and trafficking of women and girls. He suggested that people developing geolocation applications needed to also consider privacy of users in the same way.

I totally agree. Already there are many anecdotal stories of people using Facebook and other stories to target empty homes. One story in Mail Online called Facebook a shopping list for burglars. It went on to suggest that insurance companies might increase the risk profile of clients who have social networking accounts.

Now of course we have Facebook Places, which starts by checking the city your IP Address is based in and then invites you to let it know exactly where you are. There are bound to be loads of Facebook applications for mobile that will use the GPS in your phone to check exactly where you are. Great for stalkers who want to find you and for others who want to know where you aren’t and such as when you are not at home.

For more on this, check out my blog on Who’s Looking at you on Facebook?

Now don’t get me wrong, I am totally into location based services. I just want to make sure that people understand what they are getting into when they start using them. An application I really like is foursquare. It has rewards for people who use it such as points and badges. You can see where your ‘friends’ are, which is great if you want to catch up with them. I recommend if you do that, you make sure you actually know and trust your ‘friends’.

As foursquare starts to work towards monetizing, a good thing to do for application developers:) they are now selling advertising and encouraging locations to offer deals based on proximity. For example, if you become Mayor of a location you can get special deals. If you are Mayor of Auckland Airport for example, you can get free entry into the Koru Lounge. The cool thing about that is that the advertiser doesn’t have to know who you are and has no way of knowing who you are unless you tell them.

That’s one of the places I want to go with proximity based marketing. I would like to see Happy Hour applications and be offered deals based on product segments I’m interested in, at times when I am not only in proximity, but also when I am open to an offer. Offer me a 2 for 1 deal at a bar on a Friday evening, but not on a Monday morning. Give me the ability and an incentive to invite my friends, but I don’t want the advertiser to to have access to my friends details unless they want to provide them.

Opting in and informed consent is crucial for location based marketing. There is a Code of Practice for Direct Marketing in most countries. Proximity Based Marketing is even more important and for applications to become accepted, we need to be able to trust that our privacy and security is protected. This is particularly important for children and young adults who could easily be targeted by dangerous criminals.

Informed consent is a key issue here. Most people don’t read End User License Agreements. Do you know the rights you have bestowed on Microsoft when you open Microsoft Office? Did you read them, or did you just tick the box and start using it. In the Windows 7 EULA it says “b. Use of Information. Microsoft may use the computer information, accelerator information,
search suggestions information, error reports, and Malware reports to improve our software and services. We may also share it with others, such as hardware and software vendors.”

If you use any application, especially a location based application, you need to clearly understand what privacy it allows you and what your potential risks are. More on this in the future. In the meantime, the onus is on the application developers to protect the interests of the users if they want to encourage them to use their applications.

When The Hyperfactory started in mobile marketing, they got together with advertising agencies and other interested parties and formed a wireless marketing association. One of the first things the association did was to form a voluntary code of practice. I believe the same thing needs to happen for location based applications and quickly.