In the Steven Spielberg movie Minority Report (yes, I make some reference to it about once a week), there’s a scene in which John Anderton (Tom Cruise’s character) is walking through an urban retail center and his eyes are getting scanned as he moves, which is serving up custom greetings and deals from retailers. It’s both creepy and cool. But that movie is set in 2054, we’re not there yet. But AT&T had a demo at its Tech Showcase today that is inching closer to that.
As you can see in the video below, the idea behind AT&T’s system is that you can walk around a city with a phone in your pocket and get alerted when a nearby retailer has a deal for you. Users of Foursquare and soon Loopt will recognize this concept, but AT&T’s idea is a bit different. By using AT&T’s network as the bridge to be constantly updating your location (assuming, of course, you opt-in to such a feature), these retailers are able to push these coupons to your phone via SMS. Currently, something like Foursquare requires that you “check-in” to a place to see that there is a deal there or nearby.
Naturally, this could get very annoying to a consumer if they don’t like the place offering the deal, but customization is the key to this. A user could, for example, say they like Mexican food, and those types of coupons would pop-up when they were in the vicinity.
Obviously, a system like this could be very lucrative for retailers and restaurants who want to entice the impulse buy or just increased foot traffic in stores. It could also be lucrative for AT&T if they were to strike deal with these retailers to serve these up — or even just charge SMS fees.
This is just a proof of concept at this point, but you can probably bet something like this is coming soon. And the next logical step after that is the Minority Report system. “John Anderton, you could use a Guinness right about now!”
[image: Dreamworks & 20th Century Fox]
This is pretty freaky. The algorithms must be kind of complex. Wonder if they’re going to implement for other mobile platforms?
Minority Report is the coolest movie ever made. Avatar is probably 2nd due to the 3D geek factor. Minority Report should be reloaded in 3D.
All that technology will materialize in our lifetime and thats whats so cool about it.
MG, the Blu-ray is coming: http://www.blu-...m/news/?id=3398
Happy times!
oh nice. i would consider buying a blu-ray player just for that.
Next we’ll have Helocars in every driveway too and a Clarus CowDog in every pasture.
Take a look at what CellFire and Moqpon.com have been doing and you’ll see… it’s HARD to do what they’re up to. Big sales teams. Tough technology to implement/integrate up and down the chain. It’s a smidge easier if the discount is for YOUR brand (Shake Shack) or a routine discount (10% off your movie ticket).
But, if it’s $1.50 off Pop-Tarts… grocery retailers still require paper trails for recompense by the manufacturers.
Lots of solutions in the works for these problems even (at the carrier level for mobile devices) and the point of sale manufacturers like Pan Osten. It’s just a hard nut to crack.
Don’t ask why I know
I was about to build a PayPal front-end API to handle the money transactions for this type of system, unfortunatly my attention has been turned away.
Hopefully some other talented developer can take the Adaptive Payments API and build such front-end. It is quite easy, just needs to be coded and headed by someone with a little vision.
The folks in Asia have been doing this for YEARS. Its not new. Talk to anyone who have lived in Hong Kong they get random SMSes from stores whenever they are in a specific vicinity.
I guess customization could take it one step further, but the core technology is not “Minority Report” worthy.
Sounds spammy. Won’t users eventually tune out or turn off?
Agreed, The Minority Report system would be a electronic billboard in the elevator, cab or along the sidewalk that broadcasts a targeted ad at your based on your phone’s signal.
Any guess when that’s coming?
That would never happen. Targeted advertising based on your interests, hobbies etc could potentially embarrass you in a public place.
It’s like AT&T with a megaphone shouting personal stuff out. This will always be on your handset.
Your phone can already control digital billboards but in a more ‘pull’ rather than ‘push’ way like the Nike & Toyota billboards in Times Square Nyc :
Nike:
http://mobilein...bile-marketing/
Toyota
http://mobilein...uare-billboard/
Hey Murat – I disagree. The targeted ad doesn’t have to call you out by name or target you personally, so does not have to be embarrassing. The benefit is deciding what type of ad to target based your demographic, not you personally.
They are currently starting to do with with tv, e.g. should they display an ad about a new shaving cream or a pair of nylons, a lawnmover vs a new perfume, etc.
A lot of billboard ads have little targeting and the “Minority Report”-like technology would simply provide improved targeting rather than something personal like “JB, did you know Minoxidil is on sale at CVS this week?”
I think they will get there within the next 5 years if not sooner as these billboards are now on sidewalks, elevators, in the back of taxicabs, and more locations.
I see what you’re saying but the problem is in the execution. What happens if loads of people walk past in a busy area? Is it better to target one demographic is a kind of generic way or target everyone with one kind of advert? It reminds me of Bluetooth Marketing, aim for one but hit many.
Another reason, is that mobile makes adverts actionable, i.e you can track the moment you got the coupon/saw the ad, redeemed it/visited the mobile site etc therefore better figures on ROI.
Regarding multiple people, you optimize the ads based on the group demographics or target just one if a highly targeted match (e.g., if know that user in the elevator is in the market for a luxury car and display a BMW ad).
I agree the mobile ads have their advantages with interactivity, etc. I’m bullish on them as well.
My interested in the Minority Report-type tech is based on a patent portfolio my company owns relating to such targeted ad tech. I’ve noticed an increase of interest in the patents the past few months.
So where is the payoff for the consumer in this digital billboard scenerio? You need them to opt-in so what’s the selling point. What is the benefit using a digital billboard over mobile for the consumer and the advertiser?
I would definitely advise doing some consumer group testing on your patents, I’ve been doing it over the last year on concepts like the ones you’ve mentioned and the one in this post and you would be surprised what ideas you think are sure fire winners get shot down by some great real life criticisms by consumers.
“So where is the payoff for the consumer in this digital billboard scenerio?” – The principal benefit is for the advertiser who’s paying for the ad – e.g., branding a product or service. Like the ad on the side of a bus, on top of a cab, etc.
Interactivity is great, but increasing a company’s brand through ads is also valuable. It’s why companies still buy Superbowl and other ads. Targeting makes the ad that much more valuable.
On the consumer side, you’re more likely to see ads that interest you. However, you’re still free to ignore like many ads – interactive or otherwise.
“On the consumer side, you’re more likely to see ads that interest you. However, you’re still free to ignore like many ads”
That’s not enough to convince consumers to sign up to a service. There needs to be a payoff, remember they are allowing you the use of their location and personal details (age, interests), what are you giving them in return? There needs to be give and take.
Digital billboards like these would cost more than the print ones on a side of a cab/bus so this needs to be sold to the advertiser. How can they justify the extra costs?
Superbowl ads are bought because of eyeballs and reach but they can still be interactive, it’s an increasing thing:
http://www.mobi...ising/2501.html
Several commercials during last year’s Super Bowl included SMS call-outs, including an Obama campaign commercial and a United Way fundraising ad, and based on 2009 trends, we predict a stronger showing during this year’s Super Bowl.
Its important to brands because of metrics
I’ve been doing user testing for this concept over the last year and I’ve found out that consumers don’t want to be pressured constantly to spend money, there needs to be some interest based stuff too like free exhibitions, free events, etc.
People don’t have a endless supply of money no matter what the discount.
Don’t underestimate the targeting capabilitity of your network operator, they have as much information about you as your Facebook profile plus your location. This is easy to pull off.
No one will use this. Supermarkets have coupons now in the AISLE and few take advantage of it. It will be abused and annoying and fail.
Isn’t there any privacy law preventing them from actually operating this?
They opt-in, it won’t just start running without consent
Funny, I was working on LBS back in 2001 and this was the typical golden example given at every conference. It was so used that it became cliche, and no one really believed in it. I still don’t.
Vincent, I dont believe it too. This concept looks good on paper, but it doesnt work in reality.
It cost real money for an operator to know the position of a user. We were testing this concept with T-Mobile Czech and it simply doesnt work if you calculate the real numbers and fees
I would say this is closer than a lot of these posters think. However, I doubt it will be carrier based. My money would be that this is already bubbling up in someone’s mind at Google.
Think – you integrate Latitude and Adwords, you are halfway there. When members opt in for Latitude, they state some preferences about what ads they would be ok with receiving (maybe none) and Google starts sending the coupons as sms messages with a link to an html coupon (which we already recently rolled out at my company – and it was really popular).
Totally agree, this is something that needs to be done at a platform level, not operator level
One of the key problems of mobile coupons is that SMS is only able to deliver one message of 160 characters. This may be suitable to send 2/3 taglines, but in reality most promotions will each demand one SMS to be delivered. In the case of location based coupons, AT&T’s algorithm’s will obviously allow them to estimate consumer’s preferences based on day and time. But the limits of SMS will ensure consumers will more than likely receive a coupon for Hobson’s choice.
There are workarounds which will allow more than one promotion to be sent to the phone, but this adds to the cost for consumers and operators. One is to send multiple SMS messages or messages with links to mobile websites, but this requires the consumer to incur added costs. Nevermind, adding to the frustration of consumers.
An alternative system is available to GSM networks only, which allows operators to push an interactive menu to any GSM enabled mobile subscriber. This capability is based on Unstructured Supplementary Service Data (USSD), a sessions-based protocol which allows for 2-way text messaging. If AT&T were to begin seriously implementing this underused GSM standard, then consumers would be offered a smorgasbord of choice and conversions would likely be much higher.
For instance, AT&T could push a flash menu direct to your phone display which offered a choice of local eateries that offer lunch promotions today. Alternatively, you could pull a menu of loyalty coupons based on your coupon redemption history in that locality.
Disclaimer: MiTAG is developing such mobile menus that bring the power of browsing to the ubiquitous mobile phone.
Yawn, this has been done for so long already. Consumers will never accept it without a huge tradeoff. Retailers won’t want to compete in price. At least with location games users get something back.
There are many variations of this approach in development in the states right now. I think it’s obvious we are getting most of these ideas from asia as they have been testing and implementing for a few years now.
Proximity Marketing via bluetooth can offer the same services without the worries of targeting only one cell carrier, and it can be done with no service fees to the phone owner (sms fees).
Because of the opt-in measures, the concept is fairly non-obtrusive to the consumer unless of course every store in the mall was trying to beam a message.
Bluetooth isn’t targeted, it’s a one size fits all approach.
Isn’t this almost happening with Google maps integrating with social networking sites, iPhone pictures, and social sites that tell you where your friends are in realtime/cell phone kid location parental apps?
Tie that is with the GPS location system for parolees and house arrest… your chip in your pet… your PwnStar & Lojack auto systems… at least the NSA has this capability, and soon the credit bureaus.
Besides listening in to the audio & video feeds of cell phones & laptops.
I love Big Brother…
It’s happening right now. Firms like Locomatix can send coupons to you based on your opt in preferences and on your real-time location. You can set a personal radius to accept ads from, and the retailer can set a radius for ad broadcast. So if the pizza place on E43rd is broadcasting a 2 for 1 deal from 7-9pm with a radius of 1 mile, and you’ve opted in for “pizza deals” with a radius of 1500 feet, you will get a coupon sent to your iPhone, BB, or Android when you come within 1500 feet of the pizza place. And the coupon can have a barcode for redemption (and the retailer can use that for analysis of effectivity).
AT&T already has relationships with lots of small businesses to tie this together. Happens through it’s publishing arm — a.k.a yellow pages.