Home > Strategy > The latest Buzz: Location based mobile Ads.

The latest Buzz: Location based mobile Ads.

Mobile phones have been used for long by the companies to promote their products and services. The most used methodology till now has been sending text messages to the customers. There have been attempts to use recorded voice messages, but with very limited success. The marketers have been using the mobile channels based on the customer profile or on the history of previous purchases by the customer.

The latest advance in mobile/text ads is to send location based ads to mobile users. Placecast, the pioneer in this technology uses the phone’s GPS signal and the location data provided by carriers. The company plans to send the messages to users tailored for their interests and preferences.  It uses a practice called geo-fencing, which draws a virtual perimeter around a particular location. When someone steps into the geo-fenced area, a text message is sent (only if consumers have opted for the service). The application works in a similar fashion to text broadcasting where one can make use of various parameters to filter out the audience lists. Using this application, the marketers have another parameter – location, to single out the customers. When a customer passes through a new town, he can get the information on nearby stores, pubs, restaurants etc.

The application has a promising use in the recreation business. The tourists can subscribe the service whenever they visit a destination. Wherever they pass through, they will get the messages on the nearby places of interest. The service can also be great help to bargain hunters. They can get to know about the discount sales and bargain offers and that to in the same area where they are at present.

  1. Srija
    February 24, 2010 at 10:08 am

    firstly, good to see ur post after a long time!

    but do u think the companies get enough ROI for these kind of marketing initiatives? if a tourist visits a new place, will he be not more likely to ask the local people or the hotel where is staying for recreational places around the area rather than relying on mobile service provider?

    • harshie
      February 24, 2010 at 11:10 am

      Thx a lot Srija. You are one of the dedicated readers of this blog.

      The answer to your question is Yes. Companies do get enough of ROI for these marketing campaigns.

      There has been a huge demand for GPS enabled devices and navigation systems. People could stop and ask for directions, but they still prefer navigation devices.

      Also, these days it doesn’t cost much for sending text messages to customers. Also note that this is one of (and not the only) the methods companies adopt for marketing their products and services. The most important feature of this service is that it all depends on the customer whether to subscribe or not.

  2. February 24, 2010 at 10:19 am

    Informative post, keep it up.,

    • harshie
      February 24, 2010 at 10:52 am

      Thx a lot for the appreciation.

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