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  5. > Mobile Location-Based Services – 9th Edition

Executive summary
Berg Insight defines mobile location-based services (LBS) as applications and services that in some way utilise the geographic location of a handset. The increase in usage of LBS and the number of active users have also resulted in significant revenue growth, especially for leading players including Google, Facebook, Baidu, Tencent, Twitter and Yahoo! that together account for about 60 percent of global LBS revenues. Global LBS revenues are forecasted to grow from € 10.3 billion in 2014 at a compound annual growth rate (CAGR) of 22.5 percent to reach € 34.8 billion in 2020. The main growth will come from ad revenues in the social
networking and local search segments. Many enterprise services such as mobile analytics, secure authentication and fraud management are also expected to grow substantially in the next few years.

There are a number of alternative ways to categorise LBS. In this report, LBS are divided into service categories based on primary function: mapping, navigation and transport; travel and tourism; local search and information; social networking and entertainment; recreation and fitness; family and people locator services; mobile resource management; mobile advertising, as well as other enterprise and B2B services. The social networking and entertainment category is now the largest LBS segment in terms of the number of users and the second largest is terms of revenues. It comprises a broad set of services that can be segmented into
general social networking, messaging apps, friendfinders and games. The mobile channel has become a priority for the leading social networks that see rapid growth in access from mobile devices. Revenue growth in the category comes from a larger active user base and the fact that more leading players have started to monetise their mobile services, primarily through ads and in-app purchase of content. The local search and information service category, which includes general search services, directories, local discovery, shopping and coupon services, is now the second largest LBS category in terms of unique users, and the largest in terms of revenues. Revenue growth is driven by the adoption of handsets with improved capabilities and changing user habits. Mapping, navigation and transportation is the third largest segment both in terms of revenues and in terms of number of active users.

SUMMARY MOBILE LOCATION-BASED SERVICES

2 STRATEGIC RESEARCH SERIES LBS RESEARCH SERIES
Although the number of active users of mapping and navigation services is still growing, revenues are only increasing slowly as competition from free and low cost services has intensified. More navigation app developers are now focusing on freemium apps where the core navigation service is free and users have the option to purchase additional content and features. The service category also includes a number of apps that for instance enable users to find information about traffic and public transport, or facilitate car rental and ride sharing services. The travel and tourism category is one of the leading online e-commerce segments
that is now experiencing fast uptake of mobile apps. Family locator services have been part of mobile operators’ LBS portfolios for many years in developed markets and are being launched by some operators in emerging markets. These services have been especially successful in the US. However, these operator-branded services are now facing competition from freemium people locator apps that experience rapid growth worldwide as smartphone penetration grows also among children. The recreation and fitness segment is also growing in terms of users and revenues along with current trends of increasing attention to personal
wellness. Businesses in more and more industries and countries are deploying workforce management solutions for smartphones in order to improve their operational efficiency. Even large companies that have previously used customised solutions are now adopting more standardised workforce management apps, with the aim of reducing IT system costs.

A majority of mobile operators in developed countries now market some kind of LBS. However, operators increasingly rely on third party services rather than their own branded solutions. Operators are instead looking for new opportunities to monetise location data though advertising and various forms of enterprise and B2B services. Network-based location data is valuable for developers and third parties that need to locate any device, not only GPS enabled smartphones. Mobile operators now provide location data for a wide range of services such as fraud management, secure authentication and analytics services. Some mobile operators have now started to use anonymous bulk location data to improve the performance of their networks and to support internal marketing campaigns. Some operators have also launched analytics services for external customers that use the insights for applications such as site selection and footfall monitoring in the retail industry, outdoor media planning for advertisers, as well as for smart cities applications including urban planning and traffic monitoring.

Table Of Contents

Mobile Location-Based Services - 9th Edition
Table of Contents
Table of Contents . i
List of Figures . vi
Executive summary . 1
1 Introduction to location-based services 3
1.1 Definition of mobile location-based services . 3
1.2 Mobile communication services 4
1.2.1 Mobile voice and SMS 4
1.2.2 Mobile data and applications 5
1.2.3 A brief history of location platforms and services . 6
1.3 Mobile LBS categories . 8
1.3.1 Mapping, navigation and transportation . 9
1.3.2 Local search and information 10
1.3.3 Travel and tourism . 10
1.3.4 Social networking and entertainment . 10
1.3.5 Recreation and fitness . 11
1.3.6 Family and people locator services 11
1.3.7 Location-based advertising . 12
1.3.8 Mobile resource management and other enterprise services 12
1.4 Mobile app monetisation strategies and business models . 14
1.4.1 Free apps 14
1.4.2 Paid apps 14
1.4.3 Freemium apps and in-app payments 15
1.4.4 Ad-funding . 15
1.4.5 New channel to market . 16
1.4.6 Bundled products and services 16
1.4.7 Mobile app business model trends . 17
1.5 Mobile location technologies and platforms . 18
1.5.1 Mobile network-based location technologies . 19
1.5.2 GNSS: GPS, GLONASS, Galileo and Compass/BeiDou 2 . 20
1.5.3 Wi-Fi positioning 21
1.5.4 Bluetooth Low Energy and iBeacons 22
1.5.5 Hybrid and mixed mode location technologies 24
1.5.6 Handset client-based and probe-based location platforms . 25
1.6 Smartphone ecosystems . 26
1.6.1 Smartphone platform market shares 28
1.6.2 Smartphone vendor market shares 31
1.6.3 App stores . 33
1.6.4 Competition among handset vendors intensifies as market growth slows 37
1.6.5 Smartphone platforms are becoming new vertical silos . 38
1.6.6 Towards complete LBS offerings 38
1.6.7 Handset vendors and operators start to back new smartphone platforms 39
1.6.8 The mobile web, HTML5 web apps and native apps 41
2 Operator LBS offerings and strategies 43
2.1 Europe . 44
2.1.1 3 Group . 46
2.1.2 Deutsche Telekom 47
2.1.3 Orange Group . 48
2.1.4 SFR 49
2.1.5 Telefónica Group . 50
2.1.6 Telenor Group . 51
2.1.7 TeliaSonera Group 52
2.1.8 Vodafone Group 53
2.2 North America 54
2.2.1 ATandT Mobility 56
2.2.2 Bell Mobility . 56
2.2.3 Rogers Wireless 57
2.2.4 Sprint . 57
2.2.5 TELUS . 58
2.2.6 US Cellular . 59
2.2.7 Verizon Wireless 59

2.3 Rest of world 60
2.3.1 America Móvil 62
2.3.2 BSNL . 62
2.3.3 NTT DoCoMo 63
2.3.4 Telkomsel 64
2.3.5 Telstra 64
2.4 Industry analysis 65
2.4.1 Organisational capabilities and goals limit operator's ability to provide LBS . 65
2.4.2 Smartphone platforms challenge operators' role as distribution channel 66
2.4.3 Operators are no longer the central source of location data 67
2.4.4 Emerging opportunities for operators in LBA and analytics . 68
3 Consumer LBS categories . 71
3.1 Mapping, navigation and transport services . 71
3.1.1 Passenger cars and dedicated navigation systems . 71
3.1.2 Mapping and routing services . 73
3.1.3 Turn-by-turn navigation services . 76
3.1.4 Key mapping and navigation app developers 81
3.1.5 Car rental, car sharing and ride sharing services . 92
3.1.6 Speed camera warning apps and services . 96
3.1.7 Traffic information services . 97
3.1.8 Public transport services . 99
3.2 Travel and tourism . 102
3.2.1 Travel planning services 102
3.2.2 Travel guides . 104
3.3 Local search and information 104
3.3.1 Internet search engines . 105
3.3.2 Directory services 108
3.3.3 Local discovery and review services . 112
3.3.4 Shopping and coupon services 114
3.4 Social networking and entertainment 117
3.4.1 Social networking services 118
3.4.2 Check-in services 121
3.4.3 Friendfinder services . 121
3.4.4 Chat, instant messaging and VoIP services 123
3.4.5 Location-based games 124
3.5 Recreation and fitness . 127
3.5.1 Geocaching apps 129
3.5.2 Outdoor navigation 130
3.5.3 Sports tracking apps . 131
3.6 Family and people locator services . 134
3.6.1 Family locator services marketed by mobile operators 135
3.6.2 Family and people locator apps and services 139
4 Enterprise LBS categories . 145
4.1 Mobile resource management. 145
4.1.1 Fleet management services 145
4.1.2 Mobile workforce management services 148
4.1.3 Lone worker protection services . 153
4.2 Mobile analytics . 157
4.2.1 Mobile analytics platforms . 157
4.2.2 Drivers and barriers . 158
4.3 Other enterprise and B2B services 161
4.3.1 Location-enhanced call centre services 161
4.3.2 Fraud management . 161
4.3.3 Secure authentication . 162
5 Mobile advertising 165
5.1 Introduction 165
5.1.1 The advertising and marketing industry 165
5.1.2 Advertising on the mobile handset . 167
5.1.3 Definitions and variants of location-based advertising (LBA) . 169
5.1.4 LBA formats . 171
5.2 LBA industry analysis 174
5.2.1 Mobile search providers 174
5.2.2 Mobile operators . 174
5.2.3 Mobile coupons and deals providers 175

5.2.4 Traditional mobile advertising players 175
5.2.5 Major digital and telecom companies . 175
5.2.6 LBA landscape trends . 176
6 Market forecasts and trends 177
6.1 Summary of the LBS market . 177
6.1.1 Location-based service revenues . 178
6.1.2 Smartphone shipment and user forecast 179
6.2 Mobile advertising and LBA . 180
6.2.1 Challenges and opportunities . 181
6.2.2 Location can improve ROI for advertisers . 181
6.2.3 LBA market value forecast 182
6.3 Vertical market trends 183
6.3.1 Navigation apps continue to transition from premium to freemium . 183
6.3.2 Mobile now contributes half of total traffic for leading travel services 185
6.3.3 Mobile search and information service usage approach PC access levels . 186
6.3.4 Social networking and entertainment increasingly monetise mobile apps 188
6.3.5 Smartphones are increasingly used as recreation and fitness devices . 190
6.3.6 Family and people locator service adoption is driven by free apps . 191
6.3.7 Focus on corporate efficiency drive WFM service adoption . 193
6.3.8 Location data underpin a growing set of analytics and enterprise services . 194
Glossary 197

List of Figures
Figure 1.1: Mobile subscriptions by region (World 2014) 4
Figure 1.2: Wireless service revenues (World 2011-2014). 5
Figure 1.3: Mobile location-based service categories 9
Figure 1.4: LBS system overview 18
Figure 1.5: Smartphone shipments by vendor and OS (World 2014) 27
Figure 1.6: Smartphone adoption and market shares (EU28+2 2011-2014) 29
Figure 1.7: Smartphone adoption and market shares (North America 2011-2014) 30
Figure 1.8: Leading mobile app stores (June 2015) . 34
Figure 2.1: Mobile operators by number of subscribers (EU27+2 Q4-2014) 45
Figure 2.2: Mobile operators by number of subscribers (North America Q4-2014) . 55
Figure 2.3: Top global mobile network operators by subscriber base (Q4-2014) . 61
Figure 3.1: Mapping apps and mobile websites 75
Figure 3.2: Android, BlackBerry, iPhone and Windows Phone navigation apps . 79
Figure 3.3: Navigation app and service providers by active users (World Q4-2014) . 80
Figure 3.4: Car sharing and mobility service companies (World Q4-2014) . 95
Figure 3.5: Traffic information platform . 97
Figure 3.6: Traffic information apps and services . 98
Figure 3.7: Public transport information apps (June 2015) 100
Figure 3.8: Online travel companies . 102
Figure 3.9: Travel guide publishers 104
Figure 3.10: Leading mobile Internet search engines 106
Figure 3.11: Leading directory service providers (2015) 109
Figure 3.12: Directory provider distribution channels and business models . 111
Figure 3.13: Local discovery and review services (June 2015) 112
Figure 3.14: Shopping assistant and coupon services (June 2015) 115
Figure 3.15: Top ten social networks (World Q4-2014) 118
Figure 4.16: Examples of friendfinder services (2015) . 122
Figure 4.17: Leading communication and instant messaging services (Q4-2014) 124

Figure 4.18: Examples of location-based game developers and games (2015) 125
Figure 3.19: Recreational GPS and wearable device sales (World 2012-2014) 129
Figure 3.20: Examples of outdoor navigation app developers (2015) . 130
Figure 3.21: Examples of sports tracking app developers (June 2015) . 132
Figure 4.22: People locator services marketed by mobile operators (2015) . 136
Figure 3.23: Third party people locator services using Cell-ID (EU28+2) . 139
Figure 3.24: People locator and location sharing apps (June 2015) . 141
Figure 4.1: Examples of fleet management offerings by mobile operators . 147
Figure 4.2: Workforce management services marketed by operators . 149
Figure 4.3: Examples of mobile workforce management service providers 150
Figure 4.4: Mobile workforce management vendor segmentation . 152
Figure 4.5: Lone worker protection service providers (2015) . 156
Figure 4.6: Mobile marketing and analytics providers (2015) 159
Figure 5.1: Global advertising expenditure by media (World 2014) . 166
Figure 6.1: Consumer and enterprise LBS revenue forecast (World 2013-2020) . 178
Figure 6.2: Unique smartphone users by region (World 2013-2020) 180
Figure 6.3: LBA revenue forecast (World 2013-2020) 182
Figure 6.4: Mapping, navigation and transport service revenues (World 2014-2020) 184
Figure 6.5: Travel and tourism revenues (World 2014-2020). 185
Figure 6.6: Local search and directories revenues (World 2014-2020) . 186
Figure 6.7: Shopping and coupon revenues (World 2014-2020) 187
Figure 6.8: Social networking and entertainment revenues (World 2014-2020) . 188
Figure 6.9: Communication service revenues (World 2014-2020) 189
Figure 6.10: Recreation and fitness revenues (World 2014-2020) . 190
Figure 6.11: Family and people locator services revenues (World 2014-2020) 192
Figure 6.12: Workforce management revenues (World 2014-2020) 194
Figure 6.13: Enterprise service revenues (World 2014-2020) 195
Figure 6.14: Analytics service revenues (World 2014-2020) 196

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