What Are The Benefits Of Location Based Advertising?

| Sunday, February 6, 2011
By Sam Hallahan


Gone are the days where a company's best approach for advertising was expensive prime time television slots. With mobile marketing revolutionising the world of advertising, companies need to look to means that are more effective. Location Based Advertising or LBA is a new form of advertising that uses location-tracking technology via mobile networks in order to target consumers' mobile devices with location specific advertising. So is location-based advertising the future of proximity marketing?

Location based advertising in many ways aims to target the principles of convenience and relevancy. For instance, customers on holiday or simply out for a night of dining can connect to dining clubs websites and browse restaurants according to their location. The users device will then provide a map to the selected location and the customer can head their and often may be presented with a sample offer, valid for the next hour or so.

This example highlights only the pull side of LBA however. Push advertising via LBA can be just as effective and still allows users to opt out of the alerts if they no longer wish to receive them. The push approach has been used recently by movie theatres via "geo-fencing" a proximity based virtual field that automatically sends alerts to devices within the specified domain once a user agrees to receiving the alerts. Movie theatres would send alerts allowing the user to opt in to receiving free movie samples when they passed the movie theatre. Highlighted here is the ability for LBA to engage customers as they are on the go and in a convenient vicinity to where they can redeem the specified offer.

The "opt" feature of LBA is vital for customer security. Internet and Email can arguably provide similar information, but it lacked specificity and with the outbreak of spam has fizzled away. By opting in or out of certain alerts, not only are customers gaining a sense of control, but also marketers are learning a great deal about their audiences. When customers opt-in to advertisements, they can select from a range of ways for the alert or advertisement to be delivered. This allows for real time market research by marketers, which can ultimately lead to more engaging, specific, and targeted advertisements.

So not only does LBA offer targeted and personalised advertisements and alerts to customers whilst they are on the go, it offers customers control of how they receive alerts if they opt in to receive them. This interaction allows marketers to gain better understanding of their customers in real-time marketing and dramatically increases the likelihood of establishing a healthy customer loyalty base and customer satisfaction. With a service so focussed on customer convenience, security, and satisfaction location-based advertising is most definitely the future of proximity marketing.




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