Back in the halcyon days of yore before the advent of smartphones and WiFi, there were payphones and phone booths all over of the streets in New York. Most have disappeared, but a few scattered survivors have still managed to hang on. An article entitled And Then There Were Four: Phone Booths Saved on Upper West Side Sidewalks, by Corey Kilgannon, posted on NYTimes.com on February 10, 2016, recounts the stories of some of the last lonely public phones.
Taking their place comes a highly innovative new program called LinkNYC (also @LinkNYC and #LinkNYC). This initiative has just begun to roll out across all five boroughs with a network of what will become thousands of WiFi kiosks providing free and way fast free web access and phone calling, plus a host of other online NYC support services. The kiosks occupy the same physical spaces as the previous payphones.
The first batch of them has started to appear along Third Avenue in Manhattan. I took the photos accompanying this post of one kiosk at the corner of 14th Street and Third Avenue. While standing there, I was able to connect to the web on my phone and try out some of the LinkNYC functions. My reaction: This is very cool beans!
LinkNYC also presents some potentially great new opportunities for marketers. The launch of the program and the companies getting into it on the ground floor were covered in a terrific new article on AdWeek.com on February 15, 2015 entitled What It Means for Consumers and Brands That New York Is Becoming a ‘Smart City’, by Janet Stilson. I recommend reading it in its entirety. I will summarize and annotate it to add some additional context, and pose some of my own ad-free questions.
LinkNYC Set to Proliferate Across NYC
When completed, LinkNYC will give New York a highly advanced mobile network spanning the entire city. Moreover, it will help to transform it into a very well-wired “smart city“.¹ That is, an urban area comprehensively collecting, analyzing and optimizing vast quantities of data generated by a wide array of sensors and other technologies. It is a network and a host of network effects where a city learns about itself and leverages this knowledge for multiple benefits for it citizenry.²
Beyond mobile devices and advertising, smart cities can potentially facilitate many other services. The consulting firm Frost & Sullivan predicts that there will be 26 smart cities across the globe during by 2020. Currently, everyone is looking to NYC to see how the implementation of LinkNYC works out.
According to Mike Gamaroff, the head of innovation in the New York office of Kinetic Active a global media and marketing firm, LinkNYC is primarily a “utility” for New Yorkers as well as “an advertising network”. Its throughput rates are at gigabit speeds thereby making it the fastest web access available when compared to large commercial ISP’s average rates of merely 20 to 30 megabits.
Nick Cardillicchio, a strategic account manager at Civiq Smartscapes, the designer and manufacturer of the LinkNYC kiosks, said that LinkNYC is the only place where consumers can access the Net at such speeds. For the AdWeek.com article, he took the writer, Janet Stilson, on a tour of the kiosks include the one at Third Avenue and 14th Street, where one of the first ones is in place. (Coincidentally, this is the same kiosk I photographed for this post.)
There are a total of 16 currently operational for the initial testing. The WiFi web access is accessible with 150 feet of the kiosk and can range up to 400 feet. Perhaps those New Yorkers actually living within this range will soon no longer need their commercial ISPs.
The initial advertisers appearing in rotation on the large digital screen include Poland Spring (see the photo at the right), MillerCoors, Pager and Citibank. Eventually “smaller tablet screens” will be added to enable users to make free domestic voice or video calls. As well, they will present maps, local activities and emergency information in and about NYC. Users will also be able to charge up their mobile devices.
However, it is still too soon to assess and quantify the actual impact on such providers. According to David Krupp, CEO, North America, for Kinetic, neither Poland Spring nor MillerCoors has produced an adequate amount of data to yet analyze their respective LinkNYC ad campaigns. (Kinetic is involved in supporting marketing activities.)
Commercializing the Kiosks
The organization managing LinkNYC, the CityBridge consortium (consisting of Qualcomm, Intersection, and Civiq Smartscapes) , is not yet indicating when the new network will progress into a more “commercial stage”. However, once the network is fully implemented with the next few years, the number of kiosks might end up being somewhere between 75,000 and 10,000. That would make it the largest such network in the world.
CityBridge is also in charge of all the network’s advertising sales. These revenues will be split with the city. Under the 12-year contract now in place, this arrangement is predicted to produce $500M for NYC, with positive cash flow anticipated within 5 years. Brad Gleeson, the chief commercial officer at Civiq, said this project depends upon the degree to which LinkNYC is “embraced by Madison Avenue” and the time need for the network to reach “critical mass”.
Because of the breadth and complexity of this project, achieving this inflection point will be quite challenging according to David Etherington, the chief strategy officer at Intersection. He expressed his firm’s “dreams and aspirations” for LinkNYC, including providing advertisers with “greater strategic and creative flexibility”, offering such capabilities as:
- Dayparting – dividing a day’s advertising into several segments dependent on a range of factors about the intended audience, and
- Hypertargeting – delivering advertising to very highly defined segments of an audience
Barry Frey, the president and CEO of the Digital Place-based Advertising Association, was also along for the tour of the new kiosks on Third Avenue. He was “impressed” by the capability it will offer advertisers to “co-locate their signs and fund services to the public” for such services as free WiFi and long-distance calling.
As to the brand marketers:
- MillerCoors is using information at each kiosk location from Shazam, for the company’s “Sounds of the Street” ad campaign which presents “lists of the most-Shazammed tunes in the area”. (For more about Shazam, see the December 10, 2014 Subway Fold post entitled Is Big Data Calling and Calculating the Tune in Today’s Global Music Market?)
- Poland Spring is now running a 5-week campaign featuring a digital ad (as seen in the third photo above). It relies upon “the brand’s popularity in New York”.
Capturing and Interpreting the Network’s Data
Thus far, LinkNYC has been “a little vague” about its methods for capturing the network’s data, but has said that it will maintain the privacy of all consumers’ information. One source has indicated that LinkNYC will collect, among other points “age, gender and behavioral data”. As well, the kiosks can track mobile devices within its variably 150 to 400 WiFi foot radius to ascertain the length of time a user stops by. Third-party data is also being added to “round out the information”.³
Some industry experts’ expectations of the value and applications of this data include:
- Helma Larkin, the CEO of Posterscope, a New York based firm specializing in “out-of- home communications (OOH)“, believes that LinkNYC is an entirely “new out-of-home medium”. This is because the data it will generate “will enhance the media itself”. The LinkNYC initiative presents an opportunity to build this network “from the ground up”. It will also create an opportunity to develop data about its own audience.
- David Krupp of Kinetic thinks that data that will be generated will be quite meaningful insofar as producing a “more hypertargeted connection to consumers”.
Other US and International Smart City Initiatives
Currently in the US, there is nothing else yet approaching the scale of LinkNYC. Nonetheless, Kansas City is now developing a “smaller advertiser-supported network of kiosks” with wireless support from Sprint. Other cities are also working on smart city projects. Civiq is now in discussions with about 20 of them.
Internationally, Rio de Janeiro is working on a smart city program in conjunction with the 2016 Olympics. This project is being supported by Renato Lucio de Castro, a consultant on smart city projects. (Here is a brief video of him describing this undertaking.)
A key challenge facing all smart city projects is finding officials in local governments who likewise have the enthusiasm for efforts like LinkNYC. Michael Lake, the CEO of Leading Cities, a firm that help cities with smart city projects, believes that programs such as LinkNYC will “continue to catch on” because of the additional security benefits they provide and the revenues they can generate.
- Should domestic and international smart cities to cooperate to share their resources, know-how and experience for each other’s mutual benefit? Might this in some small way help to promote urban growth and development on a more cooperative global scale?
- Should LinkNYC also consider offering civic support services such as voter registration or transportation scheduling apps as well as charitable functions where pedestrians can donate to local causes?
- Should LinkNYC add some augmented reality capabilities to enhance the data capabilities and displays of the kiosks? (See these 10 Subway Fold posts covering a range of news and trends on this technology.)
February 19, 2017 Update: For the latest status report on LinkNYC nearly a year after this post was first uploaded, please see After Controversy, LinkNYC Finds Its Niche, by Gerald Schifman, on CrainsNewYork.com, dated February 15, 2017.
1. While Googling “smart cities” might nearly cause the Earth to shift off its axis with its resulting 70 million hits, I suggest reading a very informative and timely feature from the December 11, 2015 edition of The Wall Street Journal entitled As World Crowds In, Cities Become Digital Laboratories, by Robert Lee Hotz.
2. Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia (W. W. Norton & Company, 2013), by Anthony M. Townsend, is a deep and wide book-length exploration of how big data and analytics are being deployed in large urban areas by local governments and independent citizens. I very highly recommend reading this fascinating exploration of the nearly limitless possibilities for smart cities.
3. See, for example, How Publishers Utilize Big Data for Audience Segmentation, by Arvid Tchivzhel, posted on Datasciencecentral.com on November 17, 2015
These items just in from the Pop Culture Department: It would seem nearly impossible to film an entire movie thriller about a series of events centered around a public phone, but a movie called – – not so surprisingly – – Phone Booth managed to do this quite effectively in 2002. It stared Colin Farrell, Kiefer Sutherland and Forest Whitaker. Imho, it is still worth seeing.
Furthermore, speaking of Kiefer Sutherland, Fox announced on January 15, 2016 that it will be making 24: Legacy, a complete reboot of the 24 franchise, this time without him playing Jack Bauer. Rather, they have cast Corey Hawkins in the lead role. Hawkins can now be seen doing an excellent job playing Heath on season 6 of The Walking Dead. Watch out Grimes Gang, here comes Negan!!