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.