" Geofences Everywhere – How Can Marketers Benefit?“

1. "Geofences Everywhere – How Can Marketers Benefit?“ Michael Leis, VP, Management Director, Digital, DraftFCBAlistair Goodman CEO, Placecast

2. 42% of consumers 18 – 34 interested in mobile alerts from favorite retailers • Source: Placecast The Alert Shopper II, Harris Poll, July 2010

3. The location-based mobile landscape Check-in/Social Apps • Part friend finders, social city guide, game and discounts • Users check in to location through “around me” search or venues can be added with address • Venue-specific promotions and experiences; loyalty Platform • Provide mobile marketing technology to brands and carriers • Offer white-label services for SMS, mobile web and other mobile marketing to agencies, brands and operators • SMS/MMS mobile web with location targeting/triggering Local Discovery Apps • Mobile applications that provide content specific to a user-expressed (search) or detected location • Location-relevant mobile banner, text units, alerts, promotions and sponsorships

4. What is a geofence? Geō-fence noun : a virtual field around any location set to deliver a personalized marketing message to a consumer when they are inside. • How it’s created: • Upload location addresses • Proprietary translator creates a “Place Profile” • Program the desired geo-fence around a location • Flexibility: • Geo-fences can be created around any location • Add, remove & optimize geo-fences • Geo-fencing Strategy: • Based on program objectives, trade areas, and customer demographic/psychographic profiles • Obvious relationship between offers and locations

5. Geofence User Experience Consumer Opts-In Geo-fence is triggered Dynamic message delivered • She/he receives an SMS alert on mobile • Message presents a personalized offer • Dynamic message- promotional, branding, sponsorship or a reminder • Option to leverage digital assets & WAP • Customer is out shopping in a retail area, office area during lunch time, sporting event, concert, or any other location POI • Triggers the geo-fence set by brand • Customer opts-in through • Web site • Social Network • SMS or email program • Web or mobile banner • Inside store locations: window signage, POS cards, receipts, etc.

6. Used for both acquisition and retention ACQUISITION • Program participants • Portal with multiple brands • Program owns the audience RETENTION • White label program for brands • Brand owns their audience and data • Can integrate to CRM or loyalty programs

7. How are brands using location-based alerts?

8. Getting to scale in mobile & location Reach is a challenge…(% US Population = 310 million) Particularly with Location Based Apps… Source: Mobile Marketing First Quarter Trend Report AdAge February 2010 • 4% Use LBS* Source: Pew September ‘10, *Forrester June 2010 includes check in services like Foursquare

9. ShopAlerts by AT&T • Combines reach of subscriber network with quality of AT&T • Hosted solution – Software as a service • AT&T secures offers from retailers • One-stop shop provides seamless experience for consumers and advertisers • Enhanced ROI and optimization across a larger number of consumers

10. Why it Works for DraftFCB Shopper Marketing: Behaviorally Relevant Technology • Fits neatly with our 6.5 Seconds That Matter • The maximum amount of time any person will give a brand to capture their attention • Must be simple and relevant enough to make a difference and work for the audience • Must help the audience make decisions before the shelf • Placecast reduces friction typical in mobile brand experience now • Combines all the essential elements of valuable communication • Right time • Right place • Right message

11. Why it Works for DraftFCB Clients: Effectiveness • Placecast service with AT&T foundation • Fundamentally broader reach at the carrier level • Makes brands the second-party instead of the third-party • Targeted Scale • The national scale brands need while only delivering (and paying for) the messages that make sense to the audience. • Works like a typical ad buy • Easy to understand it within an existing budget structure • First-mover advantages • Priority within competitive markets • Literally, physically competitive spaces • Intelligence on consumer behavior

12. Emerging insights from early programs • Must create an obvious relationship between offers and locations • Incentives are absolutely needed for brands to recruit them into the programs • Consumers are very positive about the use of their location information, provided there is an exchange of value • Texts have most immediate impact on low-consideration products with many retail outlets - more chances to purchase, triggers impulse buying. • But texts also help to build loyalty and increase awareness of new product intros for higher-consideration products, and serve as reminders • Successful recruitment can happen via dedicated email blasts, in-store signage and promotions, direct SMS and social networking • Geo-fencing and messaging strategies depend on a number of factors, from the purchase consideration cycle for the product to the number of outlets, time of day and traffic patterns

13. Thank you Michael Leis, VP, Management Director, Digital, DraftFCB @mleisAlistair Goodman CEO, Placecast