Eye on future with location context awareness

Today we are divided into two types of world.

  1. The wired and
  2. The wireless.

All of us have seen both the worlds growing beyond imaginations. While the wired world has stepped into its adulthood, the wireless world is still in its infancy in terms of the actual value to be derived from it.  And the whole world (from both the blocks) is now betting on the wireless world for the next big thing to happen.

Worldwide more than 3.7 billion active SIM cards are distributed and approx. 1.5 billion people use internet. [Source]

Unlike the wired world that encompasses immense muscle (computing) power; wireless world is weaker in contrast. But we know that both the worlds have to converge eventually. And if they have to converge, they will have to play in each other’s blind spot but leveraging each other’s unique abilities.

What is it that makes the wireless world so unique?


What greatness does the mobility brings?

Dynamic Location Context

What is it that makes the wired world so unique?

Computing power

What greatness does the computing power brings?

Rich applications

Do wired systems bring the power of dynamic location contexts?


Do wireless systems offer rich applications (reliable and scalable as well)?


Before, we all falter in our business strategies; shouldn’t we ask ourselves a question, “Are we building the businesses for the future? If we are, then have we considered the importance to both the worlds?

In the current model where users communicate, they don’t have a way to track the location context of the recipient. Interesting question to ask is: Why do we need location context awareness in the applications of tomorrow?

  1. It provides a visual element to any service and thereby leads to high user participation.
  2. Takes participation to the next level i.e. to that of collaboration.
  3. Enables transparent tracking of users in the physical world, bringing stickiness to service.
  4. Brings highly dynamic, current and accurate information.
  5. Opens up location contextual revenue models.
  6. Creates Hyper-local advertising opportunities.
  7. Ubiquitous birth to the social networking element.
  8. Quick integration with other Location Based Services.

Also both the worlds are already seeing paradigm shift in the consumer behavior and needs.

· From static content to the dynamic content

· From the need of availability of a service to the hyper-local availability of it

· From push (segmented) marketing to the pull (permissive) marketing

Businesses can certainly harness the power of location context awareness. However, the business models in the wireless world are indeed immature to project anything significant. Will they be subscription based services? Or the ad driven models will flourish? Nobody knows.

While initially a wide range of business models will coexist, ultimately advertising-based models will prevail due to the perfect fit with the local search and content-driven social context.

Key challenges in mobile marketing

1. The mobile marketing and advertising ecosystem is highly fragmented and more complex than it is visible. While many companies are trying to claim a piece of the market, much of the activities carried out are still in an experimental stage, and players are constantly looking for new business models and revenue-generating services.

2. The current economic downturn will also restrict the mobile advertising industry for some more time as marketing budgets decrease and advertisers put their money into proven channels.

Mobile advertising predictions

Telecom analyst firm Berg Insight makes five predictions for the mobile advertising market.

1. Ad-funded business models will become a new paradigm in the discount MVNO segment of the mobile communications market. Price sensitive young consumers with low income will be most inclined to accept ads in exchange for voice minutes or text messages. Incidentally this group is also highly interesting for major advertisers.

2. Smart phones will boost traditional Internet advertising revenues. A significant proportion of mobile advertising revenues will actually derive from mobile Internet users accessing conventional web sites. Internet advertisers are going to need to adapt by creating campaigns that work with multiple devices and display sizes.

3. Idle-screen will eventually become the largest mobile advertising channel. Virtually all consumers carry a mobile handset wherever they go and check out things on the display many times per day. Embedded advertising on the idle-screen and in the user interface would provide an unmatched exposure.

4. The current economic downturn will hold back revenue growth but not innovation. There is still going to be much innovation in the mobile space that will create new channels for advertisers to reach out to consumers.

5. Size will matter in the race for market leadership. Financial strength will be especially important if the market develops more slowly than previously anticipated. Existing digital and mobile industry players will have a major advantage over venture capital funded start-ups, many of which will have difficulties to find financing.

            According to Berg Insight’s Mobile advertising and marketing report, 2nd edition, the total value of the global mobile marketing and advertising market was €855 million in 2007, and it is forecast to be worth €6.1 billion in 2013. [Source]


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