The power of ‘Mobile + Creativity’ breeds trendier in 2016!

In simple words, ‘Location based Marketing’ (LBM) seems to be growing as the preferred mode of consumer interaction as more and more companies adopt it to escalate interests.

 

Driven by increased apps usage, rapid smartphone adoption, and new positioning technologies; LBM is maturing into a gigantic revenue model that also connects with consumers at an emotional level. So what is LBM? A location is not just a physical building with walls that one can check-in to. A location can be anywhere you are, but more importantly, a location is a geographical data. Optimizing its business opportunities to drive a sustainable campaign in the most imaginative ways is driving LBM onto corporate popularity charts. Here’s how companies are creating new kinds of narratives beyond transactions:

 

  1. Gamification - Foursquare led the way in gamifying location-based services through its badging system and mayorships. However, Foursquare isn’t the only example. Rovio, the maker of Angry Birds, partnered with retailers by allowing players located at retailers’ stores to unlock “magic places”, which created a unique way to involve Angry Birds fans with different retail brands. All of which garnered quite a bit of attention to capture market spaces.

 

2.     Taking the store to the people - Bringing the store to wherever the customers are is one of the biggest trends in the US right now. For example Shazam- an app that recognizes the tune playing next to you-, enables you to “Shazam” ads on TV, which will identify your location and give you the directions to the closest shop where you can buy the advertised product.

 

 

  1. From active check-ins to passive check-ins - Active check-ins require you to use a specific app (Foursquare, Facebook, etc.) on your mobile phone to register your location by “checking in. ”Passive check-ins, on the other hand, eliminates this process. Facedeals for example enables you to check-in to stores and get deals simply by being in-store. Once you have connected your Facebook account to your Facedeals account, you can show up in the stores that have been equipped with the Facedeal camera and “check-in with your face” to automatically receive your coupon or promotion. Such “passive check-ins” may initially raise privacy concerns. However, LBM experts believe that consumers will eventually learn to adapt to these new technologies as the industry becomes better at communicating the value and relevance of location sensitive products.

 

  1. The re-emergence of SMS - Currently, the USA is experiencing a huge come-back of SMS. Indeed, SMS happens to be a very powerful local marketing tool. Thanks to geofences, which are virtual boundaries around a specific place, brands can push SMS messages to potential customers in a geotargeted way. As soon as customers enter the geofence, they receive offers and deals via SMS that correspond exactly to the location that they are in; thus attracting attention in a precise way.

 

5.     All Media can be location-based - When we think about location-based services, we think mobile. Mobile is indeed the connective tissue that makes LBS work. However, it would be a mistake not to consider other media for local marketing. Currently, digital advertisement accounts for only 24% of global advertisement expenses. This means that 76% are still dedicated to traditional media. Thus, it makes sense to include location-based services in cross media campaigns to connect mobile with other traditional forms of media such as billboards and TV. Just like Granatapet, a German brand for dog food, which distributed free dog food for every check-in made in front of a billboard. Unsurprisingly, the campaign was a huge hit.

 

  1. Indoor positioning - Indoor positioning is the “Next billion dollar market” as per Forbes Magazine. When users are indoor, GPS positioning loses its accuracy. But,
  2.  with wifi and blue-tooth technology, it is now possible to track footsteps inside a building. Using such systems, brands can send promotions to customers the moment they walk past the product with a hyper-local precision. Can you imagine how powerful this can be? A lot to be explored here to maximize footprints.

 

  1. Completing the redemption cycle – There are times when staff members at the store consumers check-in for a deal, are not educated or briefed enough to know what to do when they show them their phone for the promotion received. However, it is now possible for users to connect their credit card or loyalty card to their respective Foursquare account so that discount is directly applied when paying at the store. As a result, the process of using a discount when paying at a store is completely streamlined. That’s technology for convenience.

 

  1. Content is King but Context is advisor - Locality is more than just deals or coupons. For example, BlueBrain released the first location-based album that can only been listened to from Central Park in NewYork. The location from where the album is listened to provides a context for how the music was created thus adding an augmented listening experience for the user.

 

  1. The reinvention of search - It is now possible to generate search results without having to type or even ask for anything. The search engine can take into account your exact position and the topics you are statistically prone to search for in order to automatically generate relevant search results. The whole process not only eliminates your efforts to search for needs but also brings in relevant results to suit purposes.

 

  1. Creating Memorable Experiences - LBM campaigns enable innovative and unique experiences that encourage people to get involved. In Korea, a Shopping Mall named Emart boosted its foot traffic during lunchtime, by creating a 3D QR code that can only be scanned at certain hours based on the shape of its shadow. The more mesmerizing and interactive the campaign, bright are the chances of ROI.

 

Via static and mobile objects, marketers now have a techno-forward chance of tying up places, people and media together. Mobile marketing is such a compelling proposition that brands are now willing to go out of their ways to stay relevant in their consumers’ digital lives.

 

Location based marketing is definitely taking brands to people and 2016 will have innovations in the offering to watch out for!

 

About Karan Patel

Karan Patel is the Marketing Manager, at 2GIS Middle East. He is an advertising and marketing professional with experience in digital strategies, strategic planning, client engagement, marketing & promotions, event management. Experienced at managing large scale, result oriented marketing campaigns for B2C & B2B clients and co-creating bespoke solutions.

 

Prior assuming his current role, Karan was working with agencies like BBDO and Publicis.

 

 

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