Use of smart
phones to shop and access information about different products and services is
no longer a trend but a part of most of our lives. According to a survey
conducted across a sample, one of the trends that clearly emerged was increasing
number of smartphone users are keeping their mobile phones near to them nearly
for the whole day. The day starts and ends for most of us with checking email,
meetings etc. on our mobile phones.
According to
Pew report, more than three quarters of smartphone users use location based
services. Consumers are found to be very receptive to location based tracking
which is widely adopted, irrespective of age, gender, ethnicity, education and
income. Location-targeted campaign spending is dramatically growing as studies
show that location-targeted campaign spending at the local level would account
for $5.8B in mobile ad spending by 2016, up from $664M in 2012 while the whole
location-targeted campaign market (national and local) would grow from $1.6B in
2012 to $9.9B in 2016.
Social Media
is also increasingly adding the information with most of the posts, say photos
or a simple textual post, with the location information from where
it is being sent. This wealth of information is being especially used by retail
giants to mine and provide a customized local ad or promotion specific to a
person. This trend is also growing and expected to grow even further.
But, often
the location based marketing has faced many challenges – the two key
ones related to privacy and security of data. This has been perhaps one of the
key reasons many people including teenagers do not select location tracking on
their mobile phones. But the trend has changed dramatically especially in last
two to three years with more people ready to share their location. This has
been primarily possible due to the related practices evolving especially asking
for consent to share the location information of the customer before actually
sharing it. Equally important is the continuous enhancements in securing this
customer data as it contains personal information based on the customer
behavior. Accurate Customer Behavior Information
is something virtually every business entity today especially retail giants
would like to acquire, mine and subsequently use to their advantages especially for targeted marketing.
The diagram below encapsulates the discussed trend of
location based services being used on mobile phones.
References / Sources:
http://www.biakelsey.com/Company/Press-Releases/130122-New-BIA-Kelsey-Report-Emphasizes-Localization-Opportunity-for-National-Mobile-Ad-Campaigns.asp
No comments:
Post a Comment