It’s All About Location Baby!!

location-based-marketing

There is a new form of marketing in town, and it looks like it is here to stay. Marketers are now using location based marketing as a part of their Integrated Marketing and Communications Strategy.  Location based marketing enables marketers to geo-target audiences based on the location and proximity of users’ mobile devices in relation to the business providing the product or service.  In simpler terms, imagine you are riding down a busy street on a sunny day, and there is a Chipotle nearby.  Your mobile device will receive ads with special offers or coupons that will entice you to suddenly want a burrito bowl with your favorite toppings! More and more marketers are catching wind of this new marketing phenomenon and it is working.  Marketing Land reports that 72% of consumers say they will respond to a marketing message they receive while in the proximity of the retailer.  This creates a huge opportunity for marketers in that location-based marketing is a way to drive immediate sales.  Below is a video that describes location based marketing further:

An example of a company that is utilizing location-based marketing is Starbucks  who will send SMS and MMS messages with coupons to users who have 1) opted-in to receive correspondence from Starbucks and 2) are in the area of a local Starbucks.  Such a marketing strategy has produced substantial revenue for the company.   However if location-based marketing is so great, why aren’t more companies utilizing it?  A lot of consumers are reluctant to give marketers access to information in order to target them.  Just think about it…the ability for anyone, whether it is that crazy ex that you have been trying to get rid of, or a marketer can seem…well…a little creepy.  However an article on Mobile Marketer reveals that as long as real value is being delivered in exchange for sharing of the location information, the privacy issues will shrink into the background. Basically if marketers are truly personalizing their messages to fit the wants and needs of the targeted audience with promotions that they actually will use, then tracking by location should not be a problem.  If your favorite store offered you a coupon or freebie on your phone as you drove by how would it make you feel? Let me know below.

 

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5 thoughts on “It’s All About Location Baby!!

  1. Location based marketing combined with search is certainly beneficial in that the results are prompted by the needs the person has identified. But having ads follow you whether you want them or not is, as you say, creepy. There aren’t that many businesses that have a following like Starbucks in which customers are looking for them every day in multiple locations.

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  2. Some view location based services as a threat to one’s safety, but if you’re smart about the way that you use it, it can really be beneficial. I think this will be a huge marketing trend that businesses have only begun to scratch the surface with. The potential is really great and I think consumers will really like this new aspect of marketing. Who doesn’t want to drive by Chipoltle and get a burrito bowl coupon right to your phone? Personally I HATE clipping coupons and I never have them with me or remember to redeem them before they expire. I am looking forward to tangible coupons being a thing of the past. Bring on location based coupons!

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  3. I personally think it’s an excellent marketing plan, but safety is a major concern. FourSquare is actually started a similar venture by offering their social subscribers who check into a certain location to possibly received discounts, rewards, etc. I can truly see more companies looking into this route sooner than later.

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    • Thanks for your response Jason. A lot of companies starting to look into geo-targeting to add to their digital marketing strategies. You do bring up a good point in that it may initiate some concerns in the future. This is why it is imperative for companies to have well thought out privacy policies in place to educate their consumers on safety.

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