Another large area that use location data is of course augmented reality (AR) services. Layar is probably one of the more prominent ones. It is only with good use of positioning that we unlock one of the most hyped values of the mobile. So sorry for  uttering these words that would generate “boo!!” cheers and tomatoes if mentioned from the stage at any mobile conference. “The mobile is always with you”. Well, if the service knows where you and your mobile are, the service can do more for you. Pretty basic stuff. As often with new technology entertainment is the first area of application. Therefore we see gaming and online dating as the first obvious areas of application. Search is the first utility type application and it makes sense. (Try the wikipedia layer in Layar for instance and you will get a good WOW feeling!)

Many express fear of breached personal integrity with LBS services. That is often a misconception, especially with all the services I have mentioned so far. They are all location aware only and are not revealing to anyone else what your location is. As mentioned above, the service you use need to know where you are to deliver real value to you. This is all seamlessly happening in the background.

Take the dating scenario. For the user the end goal is to meet a new person in real life. With location in the matching algorithm you get more value. Now you know the persons on top of the list fits your criteria best and is nearest to you. If you want to send an invite to meet up for a coffee this afternoon it is likely you are near enough to make that possible. Disclaimer: I am the founder of Souldate, a full-blown dating service in your mobile with positioning.

Games and communities with location involved has a large potential. From the location information you can extend that thought to RFID and touch based things to prove you have been at a place or met a person. This opens up for scavenger hunts, detective/mystery games to mention a few. Stand alone titles/services in this area or even more interesting maybe is to extend this into advertising in sponsored games.

There are some impediments of course. The cost of LBS data from providers of the data, be it operators or aggregators. A cost per location request will kill most ideas. Companies building business model on monetising location data sold wholesale are doomed. Way forward via APIs to data from handsets with apps for positioning or GPS. Examples are of course Android, iPhone and Vodafone 360 API. This is also one great example why carriers do not have to become dumb pipes. They can be smart pipes by offering these APIs and others.

What are your thoughts on LBS? Is it still BS or will it really happen in 2010?

Well in my mind,  we are finally seeing less hyperbole and more realistic estimates. There is a point in the Juniper report that is key though. The cost of mobile data. We are seeing flat rate “all you can eat” offers becoming the norm. This is great to drive consumer adaptation. However, there is a huge conflict brewing here with “all you can eat” packages and increased use of data from more data consuming services like video for instance. At some point the production cost will be more than the revenue. The operators have created a dilemma for themselves in a way. We should not stop at the mobile network operator though. The network infrstructure suppliers have a stake in this as well. As does creative network sharing deals among the operators.

Get me right here, I am a huge fan of consumer friendly business. Not only for the consumers sake, but for the sake of building profitable companies. It all starts with the consumer who pays the bill at the end of the day. We do need cheap data traffic with a high degree of transparency. But no ecosystem survives if one link fails. So here we need to find good suitable pricing models. Wholesale data traffic sold from operator to content provider who in his turn sets a price for the service that includes the data traffic. At CTIA these arguments were elaborated upon by Andrew Bud of mBlox in a very clear way. 

The long and short of it is that we will see growth in mobile entertainment through this recession and beyond. The rate of growth will very much depend on an orchestrated effort from all participants in the ecosystem to help lowering the production cost and allowing for transparent profitable models all the way so we together can deliver attractive services at price points were get mass adoption.

There were a few thems the I picked up. Mind you I went to CTIA with my mobile social networking, advertisig and multi-player poker glasses on. That was my mission to learn and sell. As you might know I am one of the founders of both Acemob and Souldate, and these ventures are what pay the bills these days. Here we go:

1. Business models

Everywhere I went, the theme was business models. On the panel I sat in on, on the show floor at the parties at night, business models where a common theme. What’s happening here then?

One big change is the on/off deck distinction is about to fade away. On-deck is not the only way to get distribution these days. Operators are realising this and are opening up for easier access to their portals. They can thereby also cut some staff costs as well.

The effect of this is that the content provider will have to carry more of the marketing cost and get the full responsibility for discovery. It also means the operators will have to stop milking their abuse of the billing monopoly they have. Stealing 30-40% for a transaction that Visa charge 5% for is not viable in the long run and is hampering innovation and growth. Please read this great post buy Steven Spencer on this subjet and app stores etc. 

2. Advertising

Advertising is cool, but in most cases will not be enough. Additional revenue streams with virtual goods or freemium is needed. There are probably some arbitrage possibilities or rather timing gains to make to go build a user base in a virgin market when CPCs are very low but rising. However you are then banking on that you keep the users long enough to make money on them when the advertising market is more valuable. A risk, but it might work. It’s about timing and guts I guess.

3. Role of Social networks

In our panel we had some interesting exhanges about social selling. Both Glu and iPlay see the social networks as a distribution channel. Nothing is more powerful than word of mouth, so they try to tap into social netoworks or use social networking infrastructure to give their fans the tools to sperad the word. One cool service I came across here was mpowerplayer. Baiscally it is a social seling tool. Web based play of java games with community features built in to facilitate spreading the word. iPlay use this for their recent launch of their Fast & Furious game. With links to the portals and decks where the game can be bought. This drives revenues and is one way to facilitate discovery, one of the main challenges in selling stuff in a small screen world.

4. Health

I also noted mHealth being a trend. This came from other reports (and here) and comments from people I talked to in Las Vegas. Unfortunately this was an area I missed to cover entirely personally, but hey you can only do so many things. The good thing is that it is now on the radar. My personal belief is that it is a huge area where mobile really can make the world a better place. The formation of the Wireless Health Institute in San Diego is one milestone.

With these words I will head for the ol’ egg hunts and whatnot. See you after the weekend!

Regarding CTIA, I will also write a full roundup here.

Big brands trying mobile marketing need to be aware of that they are about to invade the most private and intimate screen in the world of marketing. As MobileYouth point out the strongest position you can get is if you provide a social fabric and a lot of bang for the social currency buck for your customers.

Get out there, participate instead of pushing broadcast marketing messages. This will put marketing and communications departments in tailspin, since you need to be 100% transparent as well. The marcom departments have often taken the gatekeeper role here. Mobile internet offers the world’s largest and most powerful  direct response machine. Twitter, texts, Facebook mobile and Bambuser are only the tip of the ice berg in terms of tools the consumers have to talk with, about and to you.

As you can see I am warming up ahead of today’s panel at the mobile marketing seminar here at CTIA. It will be fun. You will read more here about it as it happens.

I like all honest trial-and-error efforts. I rather trust someone searching the next big thing rather than the person who says he already has. This is all about testing and listening. Test. Listen. Test. Listen What do the users think of it? What works? Are the users we care about saying this? The latter is the hard part of course. Anyway, I really hope Telia is on to something to spread mobile social networking to the masses.

Short and sweet this post. But hey, its Friday. Enjoy the weekend! I am heading out to Las Vegas and CTIA next week. Drop me a line if you want to catch up.

The thing is though, you gotta have good stuff in them stores. And guess what, there are only that many different apps and derivatives of them you can market. In this great post  by Timothy Hay we see one side of that. The funds set up about a year ago to fuel the growth of apps have slowed down the investment pace. This makes perfect sense. Since these funds are normal VC funds and not government grants they will not fund any guy with an idea and the iPhone SDK downloaded to their laptop. Matt Murphy at Kleiner Perkins Caufield & Byers and the other VC guys are still in the VC game. Finding the next Google or twitter. Not clogging the pipes in these various app stores with more of the same. 

What effects can we expect then? The loss of the near monopoly position in distribution that the mobile carriers have had is becoming more obvious. Just in the last few weeks more of my partners at the big mobile carriers content groups are talking about widgets, on-device-portals, preloaded app with attached flexible billing more than the portal. Off the record comments like \”I don\’t care about the portal anymore. It is all about getting stuff in front of the consumer in all possible ways\”, are on my record. 

App Store the new black? No, but a great catalyst for the next phase of the mobile content/app/web/expereince industry.