Location enables mobile commerce, marketing, social and search.  But privacy allows it all to happen.  Transparency, control and choice are key to any location use.  Every Chief Location Officer knows this.  Here’s a quick refresher:

Rule #1: You need permission to locate a mobile device. Permission, often called opt-in (from our old email marketing days), can be obtained in multiple ways, from a user tap on a device to replying Y to an SMS request to signing a contract or agreeing to utilize a service.  As long as the location use is clearly explained and well understood.

Despite the widespread coverage of privacy concerns in the media and the seemingly top-of-the-agenda efforts by our Congressmen, most mobile users are comfortable using mobile services that actively tap their location.  Most people do opt-in, most people allow apps to “use your current location.”  Location makes the app or service work better, improves results and value, and makes life easier for many of us.

So long as location is not abused.

Ever since the first app was launched in 2007, mobile users’ privacy rights regarding the collection, storing, and sharing of their personal data have been relatively ill-defined, but broadly respected, by the developer community.

Recent events have shed greater light on the need for standardized privacy policies and disclosure to protect users’ privacy.  There are hundreds of thousands of apps and developers who follow the very best-in-class location policies and guidelines.  But a few awkward examples (and bad apples) can spoil it for the whole app orchard.  Last year, for example, Path was caught uploading users’ address books to its servers without those users’ knowledge. Another popular app, Color, soon was under scrutiny for being able to literally tap in to users’ microphones without their permission, and CarrierIQ was found to be collecting data on users’ keystrokes, texts sent, and numbers dialed.

But the majority of developers large and small do not want to shake the trust of their loyal customers.  With scrutiny on the rise, mobile apps are quick to point out that they don’t spend their time reading users’ texts or checking out their address book for fun, it’s solely for data collection to help enhance their product.  Organizations such as the MMA and the CTIA have helpful guidelines for developers on LBS (location-based services), how to obtain consent form users, when to notify them, and the like.  But many felt such industry guidelines and self-policing antics were not enough.

Enter privacy policies. The need for enforceable codes of conduct and open disclosure for mobile applications have arisen. The Future of Privacy Forum (FPF) and the Center for Democracy and Technology released a publication with titled Best Practices for Mobile Application Developers. The paper includes guidelines and tips for making privacy policies comprehensive and easy to access for users, highlighting full disclosure to users and secure connections as must-haves.

Some companies (like mine, Locaid, the world’s largest Location-as-a-Service company offering a location API for developers), have been following (and indeed, setting), conservative privacy policies and rules for years.  We welcome the new publications from policy setting groups.  Any CLO should.  Publications such as these are the first step towards standardizing privacy control for mobile applications, and federal rules and regulations are not far behind.   And for those looking to incorporate mobile location into apps, companies who use Locaid‘s location information technology won’t need to change a thing. Why? Locaid realized the importance users’ privacy from the beginning, and developed an iron-clad privacy policy that is third-party certified, protects users’ data, and easy to understand.

Highlights of Locaid’s Privacy Policy include:

• Locaid requires developers to have consent from users of their location data collection.
• Locaid requires that this consent collected via a comprehensible and non-misleading vehicle
• Locaid encrypts location information when stored or transmitted by Locaid to ensure it doesn’t get into the wrong hands, and requires its subscribers to do the same.

Lawmakers and tech titans united?  What possibly could align such a crew?  War?  No.  The environment?  Sadly, no.  Citizen and consumer well-being?  Not exactly.

Fear.

Well, fear and greed.  Last month representative Zoe Lofgren presented a new bill that requires law enforcement to obtain a search warrant before accessing cloud data, such as email history or location information of individuals.  Why?  The talk track is fear: fear that law enforcement may abuse the ability to access information to do their job.  But it’s also about greed.  Warrants are expensive to acquire, monitor and track, which means more government dollars required to issue more warrants. 

And lo, the majority of large tech companies, including Amazon, Apple, AT&T, Twitter, and Google support the bill.  The Digital Due Process coalition, an organization in support of stricter controls on who can access digital and mobile information, is also a large supporter of this bill.  Why?  Fear that the government might make tech companies do things they don’t want to do?  Or is it about greed?

Mobile privacy laws are already in effect, including the Electronic Communications Privacy Act (ECPA) of 1986.  Yes, the laws are convoluted and outdated to tackle the large amount of private information that is shared in digital communications today.  We as digital mobile beings have evolved.  No surprise that our approach to data access should evolve too.  Witness the fundamental changes in the way people communicate online, including email, location data, social networking, and cloud computing. 

But are the tech titans accessing our digital information without our consent for more than greed?  Should we fear our talented technologists?  Should we fear our own government?

Yes, if we have a  reason to fear.  Bad folks have a reason to fear both those that can collect and analyze data, and those that can enforce the law by utilizing said data.  But what about the good folk?  The 99%?  Should we fear our government?

If you have a friend or relative in law enforcement, you might have some idea of just how many controls are already in place for accessing personal data.  Turns out it’s a lot easier for the bad guys to access and use cloud data than the good guys.  New requirements such as those proposed by Zoe would, from the ranks of the law enforcers, ”hinder the ability to do our jobs.”  Senator Chuck Grassley from Iowa recently stated that requiring search warrants to access data would “limit (law enforcement’s) ability to obtain information necessary to catch criminals and terrorists who use electronic communication.”

Who’s right, Zoe or Chuck?  Chief Location Officer says both are approaching the mark.  Yes, the Justice Department needs information.  And information needs are growing.  But personal information on anyone without cause?  No. 

What are the limits?  Seven years ago. CNET reported on the Justice Department’s tracking of digital data, such as location, without a warrant.   Today, cell phone tracking, including minute-by-minute location data, is an expected and necessary component of criminal investigations.  And while the statistics and reports are limited and thus under constant debate, cloud and mobile information access has helped all agencies enforce the law under the Justice Department.  There is, some Senators report, a demonstrated ROI, a Return on Information.  Especially when tracking really bad and really sophisticated evil-doers.

In 2011, the Justice Department took the idea of cell phone monitoring to a new level by asking for new laws that require mobile providers to collect and store location data and other information about their customers, in case law enforcement needs to access historical data as well.   Some conjure up a notion that constant, inescapable government surveillance is the result.  That, whoa, “Big Brother” is watching you.  But access does not mean action.  Having the capability to see your information doesn’t mean that anyone is accessing it, or doing anything with it.  Unless of course there’s a) fear or b) greed involved.

The Justice Department is concerned with a) fear.  Fear that bad folk, terrorists and law breakbreakers, will do bad things.  The tech titans like Apple and Google are more concerned with b) greed.  How can money be made by providing goods and services to all the folks (mostly good folks)?  We all accept that Google and Facebook make money off us by using our information when we search or poke friends.  It’s a fair trade for billions of us: not paying anything in exchange for information about what we do online or on our phones.

In the United States, a warrant is an order directly from the Department of Justice that data and information is needed and must be provided, even if it trumps a commercial agreement in place between a company and a customer.  Like tapping a phone.  And even today, if a judge issues a wiretap order or a warrant, he or she does after a rigorous and “innocent until proven guilty” process.  Requiring a warrant shifts authority, and control, from the private sector (your search engine, your smartphone maker, your location service) to the government (the FBI, the DEA, your local sheriff).  Companies, ones with very robust privacy policies, including the tech titans and platforms like Google, Apple, Facebook and Locaid, want very clear, specific laws in place.  And so do consumers. 

What do leading Chief Location Officers want?  We want all parties, our consumers and the governments who represent them, to agree on data access protocols and procedures.  We recognize that ubiquitious accord will not be attained for quite some time.  So we will continue to “do the right thing.”  And urge our politicians to conduct a robust and balanced debate.  And that may take time. 

The question will remain for generations: how to balance the Age of Big Data with the Age of Privacy?  What is the ROI of tracking the bad folk?  And does it balance with the ROI of providing the good folk, in a good way, with the goods and services they demand?

CLOs need friends in well-located places.  Here’s one of mine: tech entrepreneur Jon Spinney is the man behind this detailed Location Services Mergers and Acquisition Tracker .   Spinney, a location entrepreneur and guru now running LBS products inside of AT&T, has been tracking LBS M&As from as far back as 1999, when AOL acquired MapQuest for $1 billion.  Spinney’s tracker helps us keep a pulse on past and present location service M&As. And, with added details such as Category and Value, Spinney adds color to otherwise black and white data. Google, for example, acquired DealMap in August of 2011 for their mobile advertising data, and Ditto.me’s value to Google lied in the company’s team and their social networking features.

My favorite take-aways from Spinney’s tracker:

• Location Mergers and Acquisitions with reported price tags have totaled over $28 billion since 1999, proving location data’s immense value in today’s tech-heavy world.
• Google bought Zagat last year for $151 million, with the value lying mostly in the vast array of location-based content on the site. Food for thought!

Just how much money are we talking about?

Last year, $13 billion in bets were placed via mobile devices worldwide, and that number is expected to increase to $45 billion by 2017. Much of that growth is expected to come from the US. Mobile gaming is currently only legal in Nevada.  Efforts are underway in New Jersey and Illinois to follow in Nevada’s footsteps.  As these and other states open their doors to the smartphone betting (and subsequent state revenues), mobile betting dollars will grow.

Who’s getting in on the action?

William Hill, Ladsbrokes, and Paddy Power are three big wigs in the online gaming industry, and they’re already staking their claim in Nevada. William Hill acquired 3 sportsbooks for $55 million this year, Ladsbrokes bought 65% of a mobile gaming software supplier, and Paddy Power is up for review by the Nevada Gaming Control Board regarding their ability to do business in the state. These entities are keen on the forecasted $45 billion market and are prepping to capitalize on it.

Why should CLOs care?

Even if your company has nothing to do with gaming or gambling, if you lead the location agenda in your company, you should watch what is happening in the mobile gaming industry.  First, gaming is one of the most highly regulated industries in the country.  How regulators and state agencies (like the Nevada Gaming Control Board) treat mobile transaction is a harbinger for regulator considerations in other industries, such as banking and workforce management.  Second, in the gaming industry (not the Zynga type, but the Caesars type), each state is different.  Tax dollars drive decisions, and geofences define boundaries.  So if your business operates acorss state lines (as most do), watch how the various states tackle the opportunities and risks associated with smartphone wagering.  Third, network location (the kind provided by my company Locaid) is a requirement for authenicated, verified location.  This is also true in banking, workforce management, or in any location-enabled use case where the company’s Chief Location Officer cannot rely solely on a GPS or WiFi location to make a decision.  (Locaid is a supplier of location data of mobile devices, including phones and tablets.  Locaid is the only network location service within the apps approved by the Nevada Gaming Control Board to provide secure and accurate location data.)

CLO take: Location data will be a key requirement for any wage-taking gaming app, as a user’s physical location within a state with legalized online gambling must be verified to allow them to take part.  What happens in Vegas will not stay in Vegas in smartphone wagering, but will influence state regulators and companies in many states and industries.  Chief Location Officers take note.  You can bet on it.

It’s already proven that shoppers prefer stores with a mobile app, and that location-based mobile ads are the new hot-ticket for bringing in business.  LBA (Location-Based Advertising) has arrived.

Don’t believe me? A recent study by Berg Insight forecasts that location-based ads on mobile phones will drive 28% of all mobile marketing dollars by 2016.  That’s  a compound annual growth rate of 91%. Do the math: total dollars spent on LBA in 2011 were $192 million.  Which means by 2016 marketers will be spending over $4.9 billion.

A 2500% increase in five years?  Why are marketers hot on LBA?

What is LBA? Location-based advertising (LBA) is advertising that uses a consumer’s current location to enhance the ad experience.

How does LBA work?  A consumer opts in to the merchant’s advertisements via their mobile phone (usually via SMS text), thereby allowing location sharing.  The merchant then sets up a geo-fence around their business that automatically sends advertisements to the  mobile devices when the consumer enters the targeted area.

Who uses LBA?   LBA ads may be time-sensitive coupons, such as half off a lunch special for the remainder of the lunch hour, or they could be strictly informative, such as information about upcoming events at the store. Instead of a customer receiving advertisements via email or (dare I mention) snail mail that typically get lost in the pile (we all have one), merchants can now send ads specifically when customers are nearby. This allows for a more polished and relevant ad experience for the customer, making them more likely to stop by and take advantage of that discount. (See here for companies.)

Do customers want LBA?  Yes.  The Berg study proves that more people are opting in to location sharing with merchants. Previously, consumers were weary of sharing their location.  But with the onslaught of location-based discount programs such as Groupon, consumers are becoming more comfortable and even pleased with the enhanced experience of LBA.

Chief Location Officer take:  One day I will get a text from my Starbucks barista when I am a block away, informing me that my grande no-whip white chocolate mocha is in the making and will be ready when I arrive.  Real-time location data is the new kid on the block in mobile marketing budgets. Customers (including CLOs) are now more finicky than ever. We want stores to know who we are, what we like, and send tailored information and discounts when it’s convenient to us based on where we are.  CLOs take note: your customers’ shopping experiences will dramatically improve with location-based advertising.

The Where challenge isn’t finding the store (walk 2 blocks and you will bump into a Starbucks).  The Where challenge is location relevancy in a mobile society.  We welcome you, LBA

Cited:

Berg Insight. (9 May 2012). Location-based Advertising will account for 28.3% of mobile ad spend in 2016 [News story] Retrieved from www.gisuser.com/content/view/26728/2/

This is the proud papa post with a location twist.  My oldest son Robby was featured in an article today on Kids and Philanthropy.  Here’s the link to a provoking piece by Lisa Lori on babycenter’s mom section: http://blogs.babycenter.com/mom_stories/kids-and-philanthropy-giving-begins-at-home/

Which got papa thinking, I’ve always assumed that we inhabitants of San Francisco are always volunteering and giving, but do we really rank that high as a “giving location?”  How does my location rank compared to other cities and states in philanthropic endeavors?  Are there pockets of giving among Americans (the extent of my geofence on this subject)?  Do those in the Midwest give as much as the snowbirds in Florida or the bankers in New York?

It took some digging but I uncovered some fascinating location-based statistics on giving in America.  The non-profit website has amassed a rich trove of research, with some parsed by location.

Indeed, Location Matters™ even in giving.  The CLO summary:

Good news:  despite the recession, Americans are still giving.  The economic crisis continues to test the nation’s ability to support some of the most vulnerable populations.  Research at VolunteeringInAmerica.gov shows that despite all the additional stresses of a difficult economy, the nation experienced the largest single-year increase in volunteering since 2003.

Bad News: Giving isn’t stemming the increased needs.  There are many challenges that face our nation, including, for example, the 14.1 million children living in poverty, the 3.5 million Americans with no place to live, and the 700,000 prisoners released from federal and state jurisdiction annually.

Best States for Giving: The Mormons are off the charts giving.  Utah ranks #1 by an 2-1 margin over the #2 ranked state, Iowa, on a per capita basis.  Overall the Midwest states are the biggest givers.  And Alaska is up there, when the cash really is cold and hard.

Worst State for Giving:  New York.  With New Jersey not far behind.  Nevada is ranked second to last, probably because folks rather give to slot machines, not food banks, in Las Vegas.

Best Cities for Giving: Minnepolis, Portland, Salt Lake City, Seattle and Oklahoma City , OK

Worst Cities for Giving: Miami, New York City, Las Vegas, Riverside and Los Angeles.

Link to state and city ranking here: http://www.nationalservice.gov/pdf/10_0614_via_final_issue_brief.pdf

How did Robby Gerber, in the article above, rank on a Location Basis?  California, his home state, ranks #46 out of 50 as the best state location for giving in America.  Fortunately, his city, San Francisco, ranks #14 out of 50 as the best city locations for giving.

Robby, thank you for helping to improve our location ranking in philanthropic services.  Your Chief Location Officer, your papa, is very proud.

Click below for more research on trends and locations in American Giving:

Issue Brief (680 KB PDF)

• Fact Sheet (617 KB PDF)
• Press Release: New Federal Report Shows Greatest Spike in Volunteers Since 2003
• Visit VolunteeringInAmerica.gov

About the Research: VolunteeringInAmerica.gov hosts the most comprehensive collection of data on volunteering and civic engagement ever assembled. The data is collected through a partnership with the U.S. Census Bureau and the Bureau of Labor Statistics, and has been released annually since 2005. The newly enhanced and updated Web site continues to be a rich source of detailed statistics and trend information, allowing nonprofit leaders and policy makers to assemble customized reports for the nation, regions, states and nearly 200 cities.

That’s right, the Boys Scouts have gone location, and it is taking the troops by storm.  You thought the location buzz at SXSW was at a fevered pitch?  Check into your local Boy Scout jamboree and “be prepared,” geolocation is the campfire rage.

Merit Badge

Perhaps too many scouts were bringing smartphones on their orienteering trips. Or too many scout leaders were checking into FourSquare during campouts.  Or perhaps the Boys Scouts is continuing its long tradition of preparing our youth for the future.  Whatever the reason, Chief Location Officer “likes” this merit badge.

What does the geocaching patch signify?  It means a scout has “acquired the skills necessary to safely take part in the world of geocaching.”  (Chief Location Officer didn’t realize geocaching was so dangerous.)  Of course, you still have to learn how to use a map and compass.  But doesn’t that patch look cool?  Like a Nintendo DS video game.  Location can be fun.

When I was in the scouts, earning a badge was no picnic.  The geocaching merit badge is no slouch either.  What do you need to learn to earn a geocaching badge?

• Precautions necessary to have a safe time while searching for geocaches
• Geocaching etiquette and how the principles of Leave No Trace apply
• Geocaching terms
• How GPS technology works
• Steps for finding and logging a cache
• How to use geocaching.com, the official online home of geocaching.

• Click here for the PDF of the final, official requirements.

Chief Location Officer applauds the Boy Scouts of America for recognizing that our youth are growing up in a world where mobile location plays an important role, whether it be in the woods, in school, in business or in our daily lives.

The merit badge includes one of the best taglines in the location industry: “Leadership with Direction.”

We could all use some of that.

Thanks to Bryan Wendell and John Churchill of the Boy Scouts of America and Simon Salt for the heads-up on this location badge.

But there is something retail (and other less prudent) marketers ARE spending money on these days. Location.

Now there’s hard evidence that proves it: more and more advertisers are putting hard cash into mobile ads that include location data. Gigaom recently reported on this (shocking) phenomenon, stating that mobile publishers and developers are getting 3.8 times more for ad impressions, that include location data in the last three months.

Wonder why Facebook bought Gowalla? Location. Why location? Location-based advertising targets customers where they are and delivers results. When you combine relevance with location, you get a powerful combination. At the same time, marketers may be cheap, but they are smart. The good ones think through any location-based strategy, the technologies, the consumer impact (I advise a few really big ones, so I know). A very good synopsis on dealing with this elephant in the room can be found on Mobile Marketer: Location-based Advertising without the Fear. This blogger brings up some great questions that you can review with your team as well as some opportunities to leverage location in a non-intrusive way.

The location demand is only going to continue to grow as advertisers see real revenue boosts from location-based ad campaigns. How are you going to use location to ramp up your business?  You cannot be more Scrooge-like than a retailer when it comes to marketing spend. Yet even those guys are opening the wallets for location data. Are you missing something?