By now, most understand that display ads typically target consumers based on their online behavior — websites visited, keywords searched or content read. But, with the number of mobile users growing rapidly – more than 17 million Canadians are using smartphones to go online – ad targeting is expected to shift.
One of the new, and as yet under-used, approaches is location-based mobile marketing, meaning inferring intent or motivation based on people’s location (as identified by the GPS in their smartphones), and serving them relevant ads and/or messages designed to get them to take action.
Whether searching for restaurant recommendations or getting directions, people rely on mobile devices as a vital source of information affecting purchase decisions. So having your messages appear on consumers’ mobile devices can be an effective marketing tool.
Whether referred to as geolocating, geofencing or proximity marketing, they all aim to target consumers and influence behaviour based on their location through an app.
Imagine setting up a ‘geo-fence’ to a specific proximity of your retail store, and every time a person who has your app on their phone enters that ‘geo-fence,’ they encounter a push notification with a promotion to a product or service in your store. MDG Advertising says 72 per cent of consumers say they will respond to calls-to-action in marketing messages they receive within sight of the retailer.
So how does location-based mobile marketing work? Most apps require location services to be turned on for them to function on your phone, which in turn transmits the co-ordinates of every place you go. (It’s the reason Instagram, for example, knows where you are when you want to tag a photo with your location.) That doesn’t mean someone is physically tracking your location, only that your location may automatically trigger a message being pushed to you.
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