Does geo-location targeted marketing work?

Does Geo-location Targeted Marketing Work?

 

Geo-location targeted marketing involves the provision of ad messages to cellular subscribers based on their geographical location. This type of location based mobile advertising has become increasingly popular and successful as part of companies marketing strategies as geo-positioning technology has opened up a whole new media channel.

In the article ‘How effective is location targeted mobile advertising?’ the authors say that there are definite benefits of mobile advertising as it allows marketers to deliver ads and coupons that are customised to an individual’s tastes as well as geolocation and the time of day.

For people this equates to consumer control. Consumers can choose to enable their mobile geo-location services and favourite the stores they most frequently visit. By doing this the consumer is in control of what discounts and special notifications they receive.

Reasoning

The success of geo-location marketing depends on a company’s ability to synthesise customer data in order to provide a personalised and unified brand experience. By acquiring customer information and unifying it, a company is able to leverage technology to create relevant, personal offers in real time.

If a company reconciles these two platforms they will be able to create an effective marketing tactic that encourages customer loyalty and advocacy by creating a unique and personalised experience, which customers increasingly want.

In Action

The authors of ‘How effective is location targeted mobile advertising?’ conducted a study with an Asian mobile service company that has partnerships with cinemas and sells movie tickets via mobile phones.

“The mobile company exposed more than 3.2 million customers to the company’s mobile-ad app for movies over the course of a year. In response to the to the location-targeted mobile ads, consumers could inquire about movie information, book tickets and select seats from the app. If consumers were physically within a given geographic proximity of participating cinemas, they received location-targeted mobile ads via text messages that informed them about what movie were playing in the nearby cinema and how to purchase tickets by phone.”

The study examined the customer data provided to test how well geo-location targeted marketing works when up against customer interest target marketing and instant message ads.

The study found that the sale of movie tickets was more successful when the company targeted a customer’s interests rather than their location. However, when location was combined with a customer’s preference, location-targeted advertising proved to be much more effective, with a 37 per cent spike in sales.

This ultimately proves that unifying customer information is essential to marketing success. Additionally, geo-location targeting combined with customer interest information enables companies to create more personalised advertising offers that can have a positive impact on total sales and brand awareness.

Digital Commerce

More and more people are jumping onto the digital commerce wagon as it allows firms to engage with their customers through a variety of platforms and build lasting relationships. Customer loyalty is being revolutionised this way by creating a genuine and open exchange.

Although geo-location target marketing serves to offer a customer specials via their mobile, this type of marketing also combines the online platform with real life experience. It facilitates a drive towards customers going in store and also checking out the online platform, gearing them ultimately towards a purchase. This provides a fully integrated and layered experience, enhancing the overall opportunity for a sale.

Digital commerce, defined by the ‘Australian Digital Commerce Research Report’ is the buying and selling of products and services over the Internet or other electronic networks. This method has grown exponentially in the last two decades. The popularisation of digital commerce can be attributed to its distinct characteristics of ubiquity, information richness, interactivity and personalisation.

Geo-location targeted marketing combines the idea of digital commerce with the physical shopping experience. This makes a company’s advertising and marketing strategy more effective and efficient as it allows resources to be used appropriately with a higher success rate.

Locally

Australia has embraced this geo-location targeted marketing trend seen with the development of the ‘Local Shoppa’ app. Endorsed by over 21 local community newspapers, such as The Manly Daily, Local Shoppa is a free location-based app featuring special deals by advertisers.

People can set a radius on the location of the discounts they are interested in anywhere from 500 metres up to 100 kilometres. The app then produces a list a local deals and discounts within the designated area and by showing this offer in store or online the discount is then applied.

Local Shoppa combines geo-location targeted marketing and digital commerce into one easy platform, putting the consumer in control to choose their favourite deals in their area.