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418 Part Three Key System Applications for the Digital Age

user receives is based not necessarily on who they are Insights on Location-based Mobile Marketing,” January 2010; “com-
but where they are. Advertisers create their own adver- Score Releases First Comparative Report on Mobile Usage in Japan,
United States, and Europe,” comScore press release, October 7, 2010;
tisements using a wizard and then specify the desired Farukh Shaikh, “Yahoo Japan Scoops Up Location-Based Mobile Ad
locations and dates to display them (for special promo- Firm Cirius Technologies,” eBrands, August 17, 2010 (http://news.
tions, discounts, etc.). It seems that the success of this ebrandz.com/yahoo/2010/3515-yahoo-japan-scoops-uplocation-
based-mobile-ad-firm-cirius-technologies-.html, accessed October 25,
type of intelligent marketing is likely to spread to the
2010).
United States and Europe.
Case contributed by Andy Jones, Staffordshire University
Sources: “O2 Launches UK’s First Location-Based Mobile Marketing,”
O2 news release, October 15, 2010; Katheryn Koegel, “Consumer

CASE STUDY QUESTIONS

1. Two different approaches to capturing consumer country. Do you think there are differences in
interest are described in this case. How do the behavior among different age groups that would
Placecast and AdLocal approaches differ? make location-based marketing better for one
2. Do you think that targeted advertising is better group than another?
than a blanket approach? What is the difference 4. Think of businesses in your area that might
for the advertiser? For the consumer? benefit from joining the O2 scheme. What could
3. The information from the comScore survey did they offer?
not differentiate between age groups, only

Web sites with the largest viewership or that attract a highly specialized,
differentiated viewership and are able to retain user attention (“stickiness”)
are able to charge higher advertising rates. Yahoo, for instance, derives
nearly all its revenue from display ads (banner ads) and to a lesser extent
search engine text ads. Ninety-five percent of Google’s revenue derives
from advertising, including selling keywords (AdWord), selling ad spaces
(AdSense), and selling display ad spaces to advertisers (DoubleClick).
Facebook will display one-third of the trillion display ads shown on all sites
in 2012. Facebook’s users spend an average of over 8 hours a week on the
site, far longer than any of the other portal sites.

Sales Revenue Model
In the sales revenue model, companies derive revenue by selling goods,
information, or services to customers. Companies such as Amazon (which sells

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