Location Insight Services (LIS): Monetising an $11bn Resource
We've just published a free new research report, Making Money from Location Insights that provides a detailed analysis of the $11Bn Location Insight Services opportunity, with specific use cases and an explanation of both why and how operators are uniquely placed to secure a significant share of this exciting new market.
Although the market has been quick to capitalise on 'location' by developing a range of Location Based Services (LBS), which some analysts say is already worth nearly $10bn, there is a growing conviction among operators that a wider opportunity exists in Location Insight Services (LIS). These, as opposed to LBS, do not necessarily require real-time data.
Location Insight Services have a simple premise: by leveraging the aggregated and anonymised data asset derived from connected consumers' mobile location data, Telcos can identify patterns in location activity over time. This not only enables a much deeper understanding of the consumer in terms of behaviour and motivation, but also builds a clearer picture of the visitor profile of the location itself.
LIS could be worth $11bn globally by 2016
Following consultation with key stakeholders within the emerging ecosystem, STL Partners has developed a detailed market taxonomy framework to help operators identify and prioritise the potential demand sources for LIS. Of particular note is the scale of the LIS opportunity in both retail and sales & marketing. An illustrative use case at the intersection of these is advertising evaluation:
- Problem: "I know that advertising has an impact on sales, but how effective are my promotions in generating store traffic?"
- Solution: LIS groups sites and catchments by promoted and non-promoted, and enables calculation of relative uplift (broken down by audience profile).
- Value: Improvement in advertising attribution and media efficiency.
For more, please visit our research portal to register and download the report here.
This analysis was independently conducted and written by STL Partners and kindly sponsored by JDSU. The following interview with Tim Davis of STL Partners and Dr Michael Flanagan, CTO of Arieso, a JDSU mobility solution, gives further insight and background.