Much of the recent mobile buzz has been related to location-based services. Just as mobile advertisers, location-based service developers have to account for a fragmented mobile market.
The State of the Location-Based Ad Landscape
Kevin McKenzie, founder and president of JiWire, presented on how brands are now seeking to innovate by “locationizing” themselves. Users finally have a computer with them on the go, so they can access more branded content than ever. At the same time, ads can be more targeted on the go than the traditional billboard
There are three types of location data to consider: IP address, GPS, and location context. Users engage differently if they are walking past a coffee shop than if there are sitting inside one. Consumers recognize the value of targeting: 51% will share their location to receive more relevant advertising, and 45% of users are more likely to engage with a location-based advertisement. Users seeks more than just a coupon. They want product information, store location, and the like.
Panel – Using Location Data for Mobile Marketing
Is location-based marketing hype or is it the future? If you haven’t given your money to the panel’s companies, moderator Josh Rochlin joked, you’re late!
Josh Rochlin, CEO of Xtify (moderator)
Kevin McKenzie, Founder of JiWire
Steve Siegel, Mobile Solutions Specialist at Microsoft Advertising
Alistair Goodman, CEO of Placecast
Andy Ellwood, Business Development at Gowalla
Ellwood describes the act of checking in on a location-based service as only the beginning of the engagement, likening it to logging into Facebook. He highlighted how sharing is a multiplier for location-based campaigns. Goodman discussed how location-based alerts can help brands reward loyalty. Siegel described location-based information as one piece of information for targeting. This information can be used for acquiring new customers (based on other behaviors and location) or for providing more relevant information for searches.
Location-based services can make a customer move their finger (to check in) or move their feet (to redeem a location-based offer). While behaviors may not be immediate, these services have been successful at changing user behavior. One key behavioral concern is privacy. Some users use location-based services to check in, while others use it to check out (that is, they online share their location after leaving a place for their sense of safety.) When products are collecting location data to supplement activities such as search, services require an opt-in.
Building Fences in the Sky: Geo-Fences, Increased Revenue, and Consumer Value
Alistair Goodman, CEO of Placecast, discussed opportunities and challenges of location-based marketing. Consumers must view the services as something of value and not just advertising. Scale continues to be a challenge, as smartphone adoption is not ubiquitous. Text alerts reach 70% of mobile users, a segment that continues to grow.
Placecast’s ShopAlerts allow a consumer to opt into a brand without using an app. A relevant message is then sent via SMS when a phone is within a determined range of a relevant location. A majority of users (59%) open the messages immediately, nearly 75% find the messages at least somewhat useful, and a plurality of brands (44%) saw an increase in sales due to messaging.