Location Based Services in 2015

As we have discussed in class last week, sophistication of smartphones allow us to gather location based information. Although the Location Based Services often conflict with privacy concerns, we already use Google map to tell us where we are. As time passes people will feel less and less concerned about sharing their location, and advertisers will be able to truly target their customers through location.

This year, many food and beverage retailers are starting to implement LBS technology to get customers to bust in the doors. “Starbucks has already announced plans to roll out its new ordering app nationwide” and will allow customers to preorder coffee and other stuff and pay on their mobile phone before they actually get to the store. By streamlining the experience of getting coffee, an experience that is often described as dreadful waits on 20+ people line, people will be more willing to open their wallets, electronically.

Companies such as Cisco have sent coupons depending on customers’ proximity to the store, and are planning on expanding its services to all its stores. “When surveyed, more than half of customers say they would use coupons if sent to them as they were near the store in question.” By truly targeting people who are close by, stores are now able to convince nearby customers to visit as opposed to mass advertisement that often fails to consider far distances of customers from the actual store.

As we all know, Facebook is certainly the upcoming giant in the game of Location Based services and advertisements. Facebook, with its extremely large user base, can add location information along with other customer interests to cater the advertisement experiences of potential customers. Users will certainly be more receptive of advertisement that seems at least realistic and appropriate. For example, sending out a promotion coupon from Duane Reade regarding birth control pills to a man in their sixties will certainly not lead to sales, regardless of the man’s proximity to the store. Facebook, with its large amount of data, will certainly have a competitive edge over its competitors in the LBS industry.

http://www.huffingtonpost.com/larry-alton/10-ways-locationbased-mar_b_6423832.html

Alex Lee