With location data being everywhere, from the photos we share, through online transactions we make, all the way to the various GPS-enabled apps we use – it is no wonder that Location-Based Marketing is on the rise. Many users are willing now more than ever to share location data with brands, in return for more personalized content and tailored promotions.
That’s exactly where the great value of Location-Based Marketing lies: Advertisers can easily reach highly engaged and loyal users, while the latter – on the other hand – receive customized and relevant content, based on where they are at a given moment. Such insights are proving to be significant: If a user is standing near a sportswear store, for example, it is highly likely they are interested in buying sportswear.
We have seen this type of marketing growing strong throughout 2015, and it is expected to become even stronger in 2016.
Location as a marketing approach is still relatively new, which means there is still a lot of untapped potential and room for exploration. There are several parameters under the Location-Based Marketing umbrella which should be taken into consideration when experimenting and finding best practices
Make content matter:
As we all know, content is big, and becoming bigger by the day. It is the core foundation of any successful engagement pyramid. Effective content is key to gaining users’ attention. Irrelevant content, on the other hand, will cause users to lose interest and most likely ignore future communications coming from your direction. Once you have been “marked” as irrelevant by a user, it is very difficult to re-gain their trust and become relevant again. Many brands have tried maintaining relevance in various creative ways, including maps, augmented reality means and beacons.
For example, the 313 Somerset mall in Singapore has launched a beacon-based mobile advertising network. It allows users of the Tring313 app to receive coupons and sales alerts once they enter 50-500 meter distances from the mall. According to retailers, this has led in many cases to a 46% sales conversion. Another example would be the campaign launched by Quirky and GE, which teamed up to develop a mobile-controlled air conditioner. The campaign targeted the Boston and NY markets, and was based on Poncho, a weather alert system that sends out daily forecasts through email and text messages. Whenever the temperature rose above 25 °C, a promo with a link to purchase the air conditioner popped up in the weather alerts delivered. According to Poncho, their e-mails have a 60% open rate and almost 100% of text messages are read. While there is no data on the CTR itself, there is no doubt that in terms of branding, many people have seen the air conditioner ad.
Make it personal:
In order to successfully reach and impact mobile users, your approach needs to be personal and meaningful to them. With many distractions and many advertisers fighting over their attention, you have to stand out and make them feel somewhat special. First of all, know your designated target audience. Carry out effective segmentation, look into relevant data, make cross-references and ask yourself the right questions: What are they interested in? What offers do they like? What are their favorite app features? These are always important to keep in mind, no matter what kind of advertising approach you decide to use. However, when advertising in the high-paced mobile ecosystem, it can be even more critical than usual. Once you have these insights, use them wisely to determine which type of promotion and what timing would be most effective.
In order to ultimately make the conversion or make your brand seen and “registered” in the users’ mind, the user must feel that the ad is intended specifically to them. You must refer to something they are interested in, during a specific time in which they are engaged and have that interest in mind. For example: Sending a promotion notification of a 10% discount at a coffee shop to a user who is currently at a coffee shop, and has stayed there for at least 5 minutes, would be doing just that.
You will find that even simple and small things, such as using first names, make the difference between a dull generic ad and a personalized relevant one.
Make it worth their while:
Most human beings get a kick from that warm and satisfying sensation of being rewarded. It is part of human nature.
As an advertiser, it is important to keep that in mind. Reward your users, give them that satisfaction. It will very likely increase their engagement and sense of loyalty. For example, you can give them points for using a certain feature of your app at a certain location. If they are currently shopping in a store, give them points which can be used as a discount at that specific store. An interesting variation on that strategy would be identifying that a potentially relevant user has reached a certain location within the proximity of your store. Once such a user has been identified, a notification could be sent to them, informing them that they have earned a certain discount, for example, encouraging them to enter the store and make the purchase. Alternatively, if a user has saved a coupon that grants them a discount somewhere, it would be very rewarding to send them a reminder whenever they are within the relevant proximity. This should increase trust on their behalf, allow them to enjoy the coupon, and be interested in receiving more communications from your end.
Marketing successfully to the mobile generation, which is constantly on the go, requires creative thinking and innovative technology. Implementing Location-Based Marketing as an approach to complement and enrich the already existing Mobile Advertising strategies has only just begun, and already seems very promising. There is plenty of room for experimenting, finding all the right balances and discovering how to make the best out of this new advertising era.
Mars Media Group remains at the forefront of technology and innovation, and is already incorporating precise location-based targeting techniques on a regular basis. An interesting example would be Mars Media Group’s collaboration with Yandex on the Russia’s biggest taxi ordering app service, YandexTaxi. In this campaign, the Location-Based Marketing technique implemented was City-Based Targeting: It allows to effectively reach highly-engaged users in the supported cities in Russia, currently Moscow, Ekaterinburg and Saint Petersburg.
At the same time, MMG’s experts never miss a beat – We constantly adapt to the fast pace of things, and are always on the lookout for further ways to leverage our Location-Based Marketing practices.