Telematics company SkyBitz has announced a strategic technology partnership with fleet logistics solutions provider Coretex. The partnership combines Coretex sensor-based refrigeration solution and cloud-based software platform with SkyBitz trailer tracking technology to create a complete solution for businesses needing both powered and non-powered asset tracking.
With the partnership, food, pharmaceutical and retail customers can have total visibility into the status of loads during transportation, resulting in improved food safety and quality assurance.
The SkyBitz and Coretex partnership allow customers to access and manage both reefer device data and trailer tracking data via one seamless solution, enabling greater insight, a more transparent view of their entire cold chain operation, and better decision making. Customers can now automate Food Safety Modernization Act (FSMA) compliance, allowing them to keep assets on the road for longer, monitoring them with advanced temperature tracking capabilities.
“Our customers look to us for innovative, value-driven solutions that help improve profits across their entire operation,” states Henry Popplewell, DVP and president of SkyBitz. “As leaders in the supply chain and logistics arena, we are excited to capitalize on this partnership to continue to grow our cold chain customer base and align ourselves with the foodservice industry through this technology partnership. The Coretex pedigree in last-mile food and beverage distribution is the perfect complement to our asset management technology.”
With this new offering, customers of Coretex and SkyBitz will benefit from the following:
More than 50 features of remote cold chain monitoring capabilities, including two-way reefer control, monitoring of up to six doors, and advanced power management to preserve reefer and telematics unit battery life.
Single point of access to critical and timely best-in-class trailer utilization and reefer information on one seamlessly connected platform, greatly expanding productivity and streamlining operations.
Communication between the trailer and other connected sensors with options to expand to additional Coretex products such as assurance solution CoreTemp.
An unmatched compilation of integrated driver safety, compliance, and asset management tools including the Coretex integration with trailer braking solutions and automatic tire inflation systems.
“Combining SkyBitz leading trailer and asset management technology with Coretex cloud-based software platform, two-way reefer solutions, and deep compliance capabilities create a powerful solution for both companies,” said Coretex CEO Selwyn Pellett. “At Coretex, reefer solutions have been a core part of our business for 16 years, and we’re excited to share our experience with SkyBitz. The trailer expertise of SkyBitz complements our offering, perfectly creating a solution that can help businesses increase the productivity of their assets. With the growing importance of food safety assurance for both food producers and distributors, we think both companies’ customers will find our combined fully-featured solution the best on the market.”
Amazon’s latest delivery drone design was unveiled in June 2019. (Photo: Amazon)
Amazon has received U.S. Federal Aviation Administration (FAA) approval to use drones to deliver packages, which Amazon says will reduce package delivery time to as little as a half-hour.
The approval will give Amazon broad privileges to “safely and efficiently deliver packages to customers,” the FAA said.
Amazon joins UPS and Alphabet-owned Wing, which previously won FAA approval for their drone delivery operations.
The approval falls under Part 135 of FAA regulations, which regulates package delivery by drone. All part 135 participants must go through a five-phase process for certification.
“The FAA is encouraging innovation through the Unmanned Aircraft Systems (UAS) Integration Pilot Program (IPP) by working with industry, state, local, and tribal governments to realize the benefits of drones, while informing future rules and regulations,” according to the FAA.
“Participants in these programs are among the first to prove their concepts, including package delivery by drone through part 135 air carrier certification. Part 135 certification is the only path for small drones to carry the property of another for compensation beyond visual line of sight.”
Amazon said it will use the FAA’s certification to begin testing customer deliveries. The company said it went through rigorous training and submitted detailed evidence that its drone delivery operations are safe, including demonstrating the technology for FAA inspectors.
Target is installing app-based indoor mapping in its stores, making it easier for customers to find what they’re looking for.
Following a 2015 test, the U.S. retail chain is integrating beacon and Bluetooth technology with its mobile app. The app will show the shopper’s location in real time as they move about the store (with a familiar blue dot), and display nearby sales and deals.
Shoppers will also be able to find an item on the map through their digital shopping list.
Target describes the new technology as “a GPS for your shopping cart.”
“Just click on an item from your list and the app will indicate on a store map the precise aisle where you can find your item,” said Target chief information and digital officer Mike McNamara.
The beacons are a function of new, energy-efficient LED lighting that Target is installing in its stores.
Another mobile enhancement is Target’s integration of its savings app Cartwheel within its main store app. (Cartwheel is more popular than the primary Target app.) Target will use the beacon technology to highlight which of its Cartwheel deals are near a shopper’s current location. In the months to come, the app will support mobile payments at checkout.
The new indoor location technology will be live in across half of the chain of 1,800 stores in time for the 2017 holiday season.
IBM’s inventors have been granted a patent for transferring packages between drones during flight.
The invention, described in U.S. Patent No. 9,561,852: In flight transfer of packages between aerial drones, helps to extend the range of drones that are delivering packages from a warehouse to a customer’s home.
IBM inventors developed this patented system using their supply chain expertise to enable precise delivery services to customers using drones.
Drones are starting to be used to transport packages to customer locations, but there are still numerous challenges to this delivery method such as limited flight range, theft of unattended packages once delivered, and a lack of delivery network optimization.
The invention can help to mitigate these challenges by providing in-flight drone-to-drone package transfers to extend package delivery range.
For example, a customer expecting a package could dispatch a personal drone to receive and securely deliver the package to the customer’s home. Drone delivery network optimization could be provided to autonomous drones via the communications link described in the patent.
“Drones have the potential to change the way businesses operate and by leveraging machine learning, drones could change ecommerce,” said Sarbajit Rakshit, IBM master inventor and co-inventor on the patent. “Our inventor team is focused on improving how the most valuable cargo is delivered globally. This could create opportunities such as managing drones to deliver postal packages and medicine in developing countries via the most direct route.”
IBM inventors have patented other inventions related to drones and drone-enabling technologies. However, this is just one aspect of IBM’s Supply Chain and Logistics expertise. IBM manages supply chains for clients on a worldwide basis using IBM Watson Supply Chain. Learn more about IBM patents here.
Esri is partnering with GISinc to analyze customer behavior to help retailers increase sales.
Esri will integrate itsspatial analytics platform with GISinc’s indoor mapping capabilities to analyze data collected by sensor-enabled overhead smart lighting systems and from opt-in mobile data from customer phones. The solution will enable retailers to track behaviors, using information including customer locations inside the store and items selected for purchase. The store can then tap into such data to improve customer assistance and position merchandise in the places most likely to attract purchases.
“Analyzing customer choices and mapping go hand in hand,” said Sonny Beech, Internet of Things (IoT) business development manager at GISinc. “Why a person bought something where they did is an example of spatial data. Using ArcGIS analytics, we can enable retailers to make more strategic decisions about where to place merchandise and in-store marketing materials.”
With more than two-thirds of consumers using smartphones while shopping in brick-and-mortar stores, retailers have to deliver more relevant experiences by becoming more precise in how they interact with shoppers. In-store location technologies provide opportunities for retailers to increase touch points in the aisle and on the shelf by delivering messaging and services in real time based on a customer’s location in the store.
Studies show that the spatial customer behavior analysis Esri provides can boost the probability of purchase by up to 70 percent and increase basket size by up to 60 percent for smartphone-enabled shoppers, Esri said.
“Esri enables retailers to access vast amounts of customer information while allowing the customers themselves to take advantage of advanced analytics,” said Gary Sankary, retail industry manager at Esri. “With the widespread use of smartphones during in-store shopping, indoor mapping provides businesses with a tool to understand shopper behavior and improve sales accordingly.”
Indoor-mapping initiatives and smart lighting systems, like other IoT implementations, have become more affordable and accessible — in fact, much of the technology can be integrated directly into the infrastructure of a brick-and-mortar store. Customers benefit by downloading mobile apps and opting in to shared-data environments that make the shopping experience more efficient and enjoyable.
Macy’s added Shopkick indoor location beacons in preparation for holiday shopping. (Photo by Nicholas Eckhart is licensed under CC BY 2.0.)
This year was filled with hope and some success for the location industry. In what was probably the biggest deal, Qualcomm bought United Kingdom-based CSR for $2.5 billion — at the same time, spinning off its own location beacon company, Gimbal. While the connected car continued to get a lot of press at the biggest trade shows, indoor location technology matured to a point that many retailers are believing it’s a way to get consumers back into the stores — and away from their computers.
As we come to the end of 2014, many industry observers view indoor technology and markets to be like where outdoor location was in the early 1990s: many technologies and providers all pushing different solutions. However, the gap between the beneficiaries of the market, the retailers and brands, and the indoor location technology providers is narrowing as tests become more prevalent.
Such retailers as Walgreens, Home Depot, Lowe’s, Macy’s and CVS have rolled out, or planning to launch, tests that include indoor mapping and a product locator.
“iBeacons and other beacons proved to be the fastest location-proximity technologies that are being deployed full scale by Macy’s, CVS and other retailers for a first quarter 2015 rollout,” said Kris Kolodziej, an indoor location-based services advisor. “I see more acquisitions like the one of Groupon acquiring Swarm Mobile, a beacon platform for smaller tier-two retailers and businesses. In addition, we will see more partnerships like the one between Gimbal and Urban Airship to provide a holistic outdoor-indoor solution for geofencing and engagement platforms.”
Location companies paid attention to mobile carriers’ focus on launching and advancing their LTE services in 2014, said Keith Bhatia, TeleCommunication Systems vice president, business development.
“2014 has been the year of transitioning location-based services from 2G to 3G to complete 2G-3G-4G platforms,” he said. “The other significant location market event for TCS during 2014 has been growth of user plane services by (over-the-top) apps. The operators who have chosen to compete with OTT players have seen location requests exponentially expand.”
TCS believes that the location market, in the next five years, will evolve to a machine-to-machine and Internet of Things (IoT) concepts that will expand into consumers’ everyday lives, Bhatia said. “From the connected car to telemedicine, health devices, connected home and smart cities, all mobile connected devices will benefit from location-based services,” he said. “We believe that location services will continue its rapid growth for years to come.”
Selling retails on the promise of indoor positioning and proximity marketing has been tough in the past few years — and some providers have focused on the wrong message, Bhatia said. “As mobile device adoption continues to surge, indoor positioning and proximity marketing will become an important tool for many retailers. A significant barrier so far has been too much focus on coupon delivery,” he said. “We believe the retailers will find real benefits in terms of understanding layout, traffic and congregation of users. Combining this location information with their retail data will provide early insights into trends and early indications of potential challenges.”
Dave Hutingford, CSR director of product line for location, believes the big selling point for retailers is striking the balance between what benefits they obtain from the app versus what benefits the consumer gets — what he calls the equity balance.
“Too many irrelevant notifications while walking around the shop will result in people not wanting to run the app, and can potentially harm consumer acceptance of retail applications. The interest is already there from the retailers’ side as the benefits are somewhat obvious, but the question is what do you give back to an increasingly technology-smart consumer?” he said.
Overall, the indoor location market is attracting major interest from retailers — which is refreshing to many industry observers after seeing online sales cut into brick-and-mortar stores’ profits.
“Removing the need for dedicated infrastructure to run indoor location was a big hurdle removed from the ecosystem. Certainly we expect to see good pick-up of the solution over the next few months for a wide variety of location services, and being handset-agnostic is a big benefit for any developer,” Hutingford said. “However, if you are looking for accuracy down in the meter range, you will need to add infrastructure to supplement the location calculation, which can come in many forms.”
Connected-Car Market Made Headlines in 2014
If an industry executive attended any of the bigger trade shows this year — CES, CTIA in Las Vegas, or the Mobile World Congress in Spain, it was the same thing — connected vehicles are the big story. Adoption by automotive manufacturers, as a number of analysts have pointed out this year, was the most important news story for the connected-car industry in 2014, said John Horn, Kore Telematics executive vice president and chief strategy officer.
“Essentially every vehicle that rolls off the assembly line in 2015 will have an element of connectivity built into it. To keep up with the level of demand, we are starting to see scale and scope really start to matter to the companies that power this type of connectivity,” he said. “2015 will prove to be another huge year for industry consolidation, which will be necessary to keep up with the global demand for connected-car technologies.”
The biggest trend in 2014 connected-car technology was the emergence of infotainment content for connected cars, said Scott Frank, Airbiquity vice president, marketing. “Before 2014, the most an average consumer would expect out of a high-end vehicle head unit were features like navigation, basic cell-phone connectivity, and hands-free calling,” he said. “Today, drivers are able to get a wide-variety of apps in their vehicles to do things like stream music and keep up with their social media channels. User experience advancements were also made to provide a seamless transition for digitally oriented drivers as they moved from office, to car, to home, and back again. For example, with the NissanConnect Mobile Apps system, someone listening to a streaming music app like Pandora on their PC in the office can put it on hold, get into their car for the drive home, and pick up the song right where they left off — as well as see their favorite playlists, album selections, and cover art.”
However, as with any industry that experiences quick growth, there will be growing pains, Horn said. “The automotive world has already started to experience some of those pains as connected technologies continue to advance at a rapid pace. We saw how the analog shutdown left many OnStar customers stranded with obsolete hardware,” he said. “We’ll likely see similarities as 2G, 3G, and 4G networks are eventually turned down in favor of more advanced technologies. I’ve been saying this for years, but now is really the time for the removable module. Connected technologies will turn over much faster than cars, and the only way I can see to future-proof against this is through the removable module.”
Airbiquity’s Frank said that there are definitely consumer acceptance and technology barriers for the automotive industry going forward related to connected car as we know it today and autonomous car as its being forecast going forward.
Like waves of technology that have come before, functional consumer awareness and adoption will follow the technology adoption curve, Frank said. “Certain generations and user types will be early adopters and more likely to accept new and evolving connected-car technology and features — and the user experiences and value that come with it — the minute it’s made available,” he said. “While others will be either blissfully unaware of the technology built into their car — and the value it could bring them — or are simply satisfied with traditional technology like basic AM-FM and satellite radio. One thing for sure is there’s a correlation between early adopters of technology like smartphones and early adopters of connected-car technology and related features.”
Frank quoted a recent Parks Associates study that found 48 percent of vehicle owners that own smartphones are very interested in the ability to view maps — or receive directions in their cars. This compares to 37 percent of vehicle owners that own/don’t own smartphones. “Like flip-phone users that transitioned to smartphones after understanding the end benefits, consumers will increasingly become aware of and use their connected-car systems,” he said. “We’re seeing evidence of the connected-car adoption curve in the increasing activation rates and time of usage for our customer’s connected-car programs.”
Horn, who headed RacoWireless, which was acquired by Kore for an undisclosed amount this year, said in 2015 industry will start to see the connected car become much more easily monetized. “We’ve seen this first hand, as we have just rolled out some new features with AT&T and Audi. Now, your Audi Connect subscription can be part of your AT&T Mobile Share plan and treated just like another line,” he said. “It is going to be easier than ever to consume in-vehicle connectivity and the business model will advance to the point that makes it appealing for both the consumer and the solution provider.”
In 2015, driving-centric apps and services will begin to appear and eventually become as important as infotainment content in the consumer purchasing process, Frank said. “The current automotive manufacturers’ focus on providing infotainment delivery reflects their desire to meet the expectations of digital lifestyle consumers who are heavy users of smartphones and want to use their favorite apps and services inside their cars,” he said. “This is a logical first step, but these savvy consumers will increasingly value apps that are truly useful and relative to the driving experience. An example is an app that proactively and dynamically recommends modifications to a driver’s high-frequency routes to help them optimize fuel consumption, lower CO2 emissions, minimize engine wear, and avoid road hazards. As a result, apps that don’t add to the consumer experience relative to driving will eventually die off from lack of use, and automotive manufacturers will replace them with more and more driving-centric apps to satisfy their customers and differentiate themselves from competitors.”
The rise of autonomous vehicles, a derivative from connected-car technology, will keep automakers, carriers, suppliers and government agencies busy for decades.
“When it comes to autonomous vehicles, we expect the adoption curve to be more extended than what we’ll see for the connected car, given the increased consumer concerns about safety and adapting to the new fangled idea of riding in a car without a human driver,” Frank said. “Consumers will not only want to know what this fancy new technology is and how it works, they will also need to feel confident that it will run perfectly and not put themselves, their passengers, or other people and property in harm’s way. Consumers will also have concerns about who will be legally and financially liable if an accident occurs.”
In other location news:
Two Trimble companies, PeopleNet and ALK, recently provided real-time tracking of the 2014 Capitol Christmas Tree’s cross-country journey from the Chippewa National Forest in Minnesota to the front lawn of the U.S. Capitol Building in Washington. The companies used enterprise products for routing, mileage, mapping and visualization to track the tree.
LBS Insider’s Kevin Dennehy will be attending the 2015 Consumer Electronics Show in Las Vegas next month. Please contact him at [email protected] with your story ideas.
An Amazon employee picks items in the company’s newest generation fulfillment center. (Photo: Business Wire)
It used to be when you expected a home delivery, you could specify morning or afternoon, and hope you were there when the truck showed up. In today’s high-tech retail experience, van deliveries can be slotted specifically in two hour, or even one hour, windows. This is just one development in the battle for speed, as major retailers turn to technology to help Santa get presents under the tree on time.
According to a feature at BBC News, automated route planning and GPS tracking of vans has greatly improved deliveries, along with better warehouse scanning technology, such as the intricate robotic system employed by Amazon in its warehouses.
A Kiva robot moves product in Amazon’s eighth generation fulfillment center. (Photo: Business Wire)
The system uses robotics, Kiva technology, vision systems and almost 20 years’ worth of software and mechanical innovations to fulfill holiday orders. Amazon purchased the system in 2012 and tested it in 2013, but this is its first year for full deployment. Instead of having employees go to the shelves to find the items for an order, robots automatically deliver the items to them, hauling seven-foot-tall shelving units on their backs.
The robotic system has made picking products go two to three times faster, employees said.
The need for speed presents is a huge challenge for retailers trying to offer their customers a seamless shopping experience in-store, online and via mobile, the BBC reports. “Speed is the new battleground,” said Craig Sears-Black, UK managing director of Manhattan Associates, a software company specializing in warehouse management systems. “These days orders have to be processed in two hours, not two days. The physical side of selling needs to be optimized.”
In the UK, MetaPack handles the delivery of online transactions for 80 of the UK’s top 100 retailers, integrating about 240 delivery companies worldwide into its system. “These days competition amongst carriers is giving consumers a lot more choice over when and where their parcels are delivered,” said Patrick Wall, MetaPack founder and chief executive.
When a customer selects delivery options, MetaPack works out which are available in which location for which goods. MetaPack then decides which carrier represents best value for the retailer and handles all the tracking data so everyone can know exactly where the parcel is on its journey at any time.
In the U.S., FedEx is using enhanced visibility technology to help customers plan for package deliveries and pickups. At many FedEx ground facilities, high-speed six-sided camera tunnels with real-time package tracking updates scan every side of a package, enhancing the readability of a shipping label and providing visibility to a package’s location at all times.
That tracking technology, coupled with network-wide improvements, will offer customers increased visibility this season, including clarification as to exactly when a package is available for pickup at FedEx locations, FedEx said. It also will offer increased visibility into a package’s journey, from the time FedEx takes possession of the package to its estimated delivery date.
When one talks about the worldwide location industry, mobile resource management — fleets and trucks, for instance — aren’t sexy at all, but they make money. What is supposed to be sexy is location-based advertising. According to many analysts, location-based advertising has been hampered by a few things: education for both consumers and mobile advertisers, privacy issues, and relevant proximity information so folks can use it to make purchases. Another concern could be the expense of rolling out indoor beacons.
BARCELONA—Major consumer privacy concerns aside, companies are starting to see growth in location-based advertising, with new markets emerging in Europe. While the numbers of mobile advertising companies has decreased at the Mobile World Congress, held here in February, from just two years ago, the remaining players are seeing a more mature market.
Mobile advertisers are beginning to realize that location is the Holy Grail for growth, said Cameron Peeples, Airpush vice president of marketing. “People going into New York from Newark during rush hour can receive a different call to action because of a created geo-fence. Advertisers can determine whether the traveler is there on business or looking for a hotel and other travel deals,” he said.
Before Mobile World Congress, Los Angeles-based Airpush partnered with AirX, a large mobile ad exchange company. The majority of the AirX inventory, about 120,000 Android applications, includes highly-sought-after GPS location data, the company said.
There are large differences between the North American and European markets for mobile advertising, Peeples said. “The mobile advertising market [in Europe] is definitely evolving. The European market is key for us, dramatically higher than other markets,” he said. “[The European] market seems to have people connected to a lot of things — they are more mobile, use public transportation more, and always have a phone that is more centric to who they are.”
Making location-based advertising relevant to the consumer is still a major challenge. “Our focus next year is on native advertising. Native advertising combines not only the right message, but the right delivery vehicle,” Peeples said. “No one bicycling enthusiast wants ads tailored for someone who wants flowers.”
Peeples said the privacy issues are a big deal, but his company’s services are opt-in. “A lot of it is loyalty advertising. It’s all opt-in,” he said.
xAd Partners with Waze, Sees UK Growth
Another mobile advertising company, New York-based xAd, is also making inroads in Europe. “We are in the UK right now, which is really WiFi-focused. A lot of our early [location-based] advertising efforts are in education — to educate consumers and the advertising agencies about the power of location and mobile,” said Monica Ho, xAd vice president of marketing. “Not all location is created equal. The real value of [location-based advertising] is the proximity target to market to.”
Right before Mobile World Congress, Waze selected xAd as its third-party provider of search and display mobile ads in the United States. Waze, which was bought by Google in a deal worth more than $1 billion, is a top three map and navigation app in the iTunes store — a ranking that was probably helped by the Apple Maps debacle in 2012.
The companies say the deal will place xAd’s mobile ad targeting technologies into Waze’s location-based advertising platform.
Ho said there are still two areas of concern for location-based advertising: relevancy to the consumer and privacy issues. “There was privacy backlash from Nordstrom collecting consumer information from their Wi-Fi system,” she said, referring to the controversy last year when the retailer was accused of capturing consumer information during an indoor positioning test.
Apple to Roll out Upgraded Maps on iPhone 6
Speaking about Apple Maps, many industry analysts says the company has come a long way since the very public embarrassment nearly two years ago over map inaccuracies and flaws. The company recently released iOS 7.1, but is expected to rollout iOS 8 when the iPhone 6 debuts later this year.
With the debut of the iPhone 6, an updated version of Apple Maps will also be released, according to published reports.
Last year, Apple bought two companies, HopStop and Locationary, to allow the company to entrench itself once more in the location business. How firmly those roots prove to be, and how well they serve the company against archrival Google, remain to be seen.
Apple has been stockpiling companies and mapping software since its introduction of Apple Maps on iOS devices, which had a rough start. GPS World’s LBS Insiderreported extensively on the problems Apple encountered with its mapping software. Some of these problems included sending drivers to a wrong location and direction.
After the mapping software problems were made public, Apple CEO Tim Cook apologized for the mapping software’s problems and even suggested that users go to such competitors as Waze, MapQuest, and Microsoft’s Bing.
In other location news:
A Wall Street Journal reporter basically said there was nothing much new at Mobile World Congress — and that the excitement and action was at the outlying conferences at Fira Montjuic. One of these more interesting conferences, Four Years From Now, or 4YFN, featured start-up companies making pitches and displaying their new products, some of which included location capability.
The Mobile World Congress final stats. Organizers said MWC had more than 85,000 attendees from 200 countries — an increase of 13,000 from the previous year. It’s now being touted as the biggest and best wireless show.
In February, GPS World reported that TruePosition had purchased Skyhook for an undisclosed price. Skyhook provided location services to a number of companies including Apple and Samsung. The interesting issue is Skyhook’s lawsuit with Google, which alleged that the Internet giant influenced smartphone manufacturers to abandon the Boston-based company. According to published reports, the legal action still is going forward.
AT&T Mobility is shuttering its location-based Alerts marketing program. The company said it would release an updated version later this year. AT&T Mobility launched Alerts in late 2012. It featured free opt-in, location-based text message alert service. Participating retailers included Stapes, Gap, Zales, Neiman Marcus, and others.
I didn’t go to South by Southwest. Is my cool-guy card revoked? One of the reasons I didn’t is because, outside of meetings that were not part of the conference, there was not one location industry announcement made there. Maybe something will change my mind next year, but call me an old fogey — I just didn’t see the need to go to Austin this year.
Sonata is a self-service advertising platform for the retail world.
Currently, 96 percent of world trade takes place through traditional brick and mortar stores. Add almost 1,000 million smartphones with integrated GPS to that retailing picture and a whole range of advertising opportunities, with high added value for advertisers and consumers, opens up. Sonata was begun l to drive foot traffic to local retailers’ point of sale via potential customers’ smartphones.
Sonata divides the world into 90-square-metre plots. The plots are uploaded with local business adverts, which then appear on smartphones and tablets that come in range of the advertiser according to the smartphone’s geolocation. Sonata has been developed by TAPTAP Networks, a Spanish mobile advertising market leader based in Madrid.
The process of uploading an advertising campaign is very simple for the retailer and takes no more than three minutes, according to Sonata. A retailer doesn’t need a website or even a mobile app; all that’s required is a minimum investment of £50. Advertisers follow three steps:
registration using an email address;
adding the store details (just one or a whole network);
choosing the ad’s geographical area and the design of the ad from one of Sonata’s creative templates (or advertisers can create their own design).
“Any local business, including those without technical know-how, can create an advertising campaign,” says Alvaro del Castillo, CEO of TAPTAP Networks and the developers of Sonata.
“An added attraction of Sonata is that local businesses only pay for actual results-calls, registrations, clicks, purchases in the store… whatever form of contact a customer makes-and can choose how much to pay for them,” says del Castillo.
“The Sonata platform is focused on meeting the need of the local small-business sector, which views the online world as a major threat with the ever-growing pressure it exerts from ‘showrooming’ and the selling of cost price goods by major e-commerce players,” explained de Castillo.
Vehicle-Tracking.com has been redesigned. Vehicle-Tracking.com is the official online e-commerce site of LandAirSea Systems, a provider of consumer and business-to-business GPS tracking devices since 1994.
Vehicle-Tracking.com provides passive and real-time GPS tracking devices and systems designed for a wide-range of applications, including fleet management, law enforcement surveillance, asset monitoring and personal vehicle tracking. Vehicle-Tracking also offers the full-line of accessories, replacement parts, services and software for all of LandAirSea’s tracking systems.
With more than 15 years of experience in the field of GPS tracking, LandAirSea’s support staff is available 24 hours a day, seven days a week, to assess and assist with any questions or purchases made from Vehicle-Tracking.com.
Walgreens, the largest U.S. drugstore chain, announced a partnership with in-store mapping and search startup aisle411. As a result of this partnership shoppers can use their iPhone or Android smartphones to view maps of any of the 7,907 Walgreens stores and locate products down to a particular section of each aisle. Walgreens is said to be the first U.S. national retailer with all of its stores mapped in a mobile application.
Once again, it looks as if Google is taking a giant leap into location-based services with its recent acquisition of The Dealmap. Is this deal a signal that LBS market viability may be tied to the social shopping market? The market is potentially huge, with two big players and a third, Google, quickly developing. But is this the market that will propel LBS to the next level? One analyst says yes…and no.
Technology giant Google is once more trying to corner more of the social shopping market by buying The Dealmap, a 15-month-old company that offers its own location-based daily deal service.
Menlo Park, Calif.-based The Dealmap collects data from hundreds of sources and arranges deals by location, on its website and a smartphone application. The start-up, founded last year, has 15 employees and 2 million users, according to published reports.
Google tried to buy Groupon for as much as $6 billion last year, and decided to launch its own service, Google Offers, in Portland. Google’s service has since expanded to New York and the San Francisco Bay Area.
Google has made many moves into the location business in the last two years. It is trying to grab a large share of the European traffic market by offering real-time services in 13 European companies. Google shook up the navigation market with free navigation service for Android phones in 2009.
At least one analyst said he was intrigued by the acquisition, of which financial details were not disclosed. Mike Dobson, TeleMapics president, said that The Dealmap acts as a deal aggregator and cross-channel distributor for national in-store deals from brand retailers, restaurant chains, and other businesses; local daily deals (from Groupon, Living Social, and more than 200 other sources); and what The Dealmap calls “store window” deals from individual local businesses.
In a recent presentation that The Dealmap made at the Kelsey Deal3D Conference, the company claimed to have grown in its first year to 2 million-plus cross-channel users, including more than 1 million mobile users, said Dobson, who authors a location blog. The volume of monthly deal searches on its network was more than 75 million and the monthly network reach was estimated at 85 million, he said.
The Dealmap and others (Borrell Associates, Needham and Company, and Groupon) have predicted that the projected size of the local daily deal market will be sized at $10 billion by 2015, while the online local ad revenue will be $32 billion by 2013, Dobson said. “The Dealmap claims that its deals provide more than $10 million in savings each day, although it is less clear what earnings it creates in the way of margin/profit for distributors, such as, well, Dealmap,” he said.
Dobson said that the “deal supplier” market appears to be dominated by top sites. Eighty percent of the local deal inventory nationwide is dominated by 20 sources, 69 percent by 10 sources, and 40 percent by two sources, Groupon and Living Social, he said. “The Dealmap claims that its daily ad inventory is supplied at a modest 6.25 deals per source, while half the deal supply sources offer only one-to-two deals a day,” he said.
“Perhaps more disconcerting is the fact that 69 percent of deal suppliers have a presence in from two to nine markets, while 19 percent cover only a single market. Only 4 percent of The Dealmap’s suppliers have a national footprint, which the company defines as 25 or more markets, Dobson said. “While this could suggest that the deal market is inherently local, I think it suggests that local suppliers add the ‘long tail’ that is appended in local markets to the offerings of Groupon and Living Social. In other words, the market appears to be close to a duopoly at a national scope, with numerous smaller players operating as regional and local suppliers. My conclusion is that the market for local deals from individual local suppliers is quite small, and that the major force of deals in all markets are national chains who wish to present deals to draw local users to their shops.”
Dobson says the reason he makes this distinction is that it does not appear likely that “deal-based advertising” is going to be the replacement for local newspaper advertising, or a real-time Yellow pages, at least not as currently configured.
“The Dealmap indicates that in a sample taken from Chicago for one day of deals, the inventory from the two leading providers was split one-quarter each for fitness spas and shopping, while attractions and dining evenly split the last quarter of the pie,” Dobson said. “When all deal suppliers were added, salons and services deals added 10 percent each to the mix, while dental deals (3 percent) and hotel deals (5 percent) rounded out the categories. Who knew that people looking for social shopping deals were looking for an athletic workout and liked to meet in spas, followed by a good meal and a visit to an attraction?”
According to The Dealmap, more than 50 percent of deals searched for nationwide by consumers are related to dining, followed by shopping at 20 percent, while attractions, bars, spas, travel and “things to do” to ranked in the single digits. On mobile devices the search profile is somewhat different, with dining at 40 percent, shopping at 30 percent, spas and travel each at 12 percent, “things to do” at 4 percent (a 5-percent loss compared to deal-search in general), and bars at a measly 1 percent (a 3-percent drop compared to deal-search in general), Dobson said.
“I am not sure how others perceive the message that can be found in the numbers above, but I think it might be hard to find a long-term growth business here. Google acquired The Dealmap because Google needs to buttress its local advertising empire, but clearly this is a small-potatoes business,” Dobson said. “Yes, I understand that Groupon walked away from a $6-billion-dollar offer from Google, but I suspect that they already regret their bristliness during the negotiations. I guess this shows that just because you can market deals, does not mean that you know how to negotiate one for yourself.”
What’s the Big Deal for LBS?
Dobson said that the big deal may be for the LBS industry. “It appears to me that the concept of ‘location’ is in the process of occupying its rightful place in a variety of industries that are clearly location-centric, and were location-centric before any of us thought of using the term location-based services to describe those business services that had a location component,” he said. “Perhaps the only thing that has changed for these industries is that the consumerization of GPS and the inclusion of its functionality in phones, laptops, PNDs, and other navigation devices have allowed these businesses to pinpoint the location of consumers and provide relevant services to mobile users.”
While The Dealmap certainly fits within Dobson’s notion of LBS, he suspects that the company sees itself in the deal-distribution business and has forward integrated into location services to expand its deal-distribution capacity. “Google almost certainly did not acquire The Dealmap because the company had a new, unique, and proprietary location technology. Instead, they acquired The Dealmap for the company’s distribution strength (its distribution network and deal-distribution applications) and their knowledge of how Groupon and Living Social operate,” he said. “It seems to me that the one trend that continues in LBS is that service businesses require strong distribution channels and few companies in this space have capabilities in this respect. For this reason, the action in LBS will continue to be acquisitions by companies who already have the distribution, but need the know-how that will allow them to leverage location as a method of increasing their distribution capability. In short, ours is a market segment in which companies need to innovate, out-perform, and pray that they get noticed by the industry leaders in other market segments.”
There are no potential Google or Facebook success stories in our midst, Dobson said “Our task is to build location engines, use them to solve common but ubiquitous problems involving location — and hope that our efforts get us to the finish line before anyone else,” he said.
