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What does LBS have to do with advertising media?

The world of information technology and communications (ITC) is changing at a rapid pace and some of the changes have been subtle and unexpected. Some things take a long time for people to get their heads around, but sometimes they just start doing things and take them for granted. Social networking is a classic example that businesses are now trying to understand how they can get involved.

Technology is changing the way we live, the way we interact with each other and the way we interact with the businesses and services we enjoy.

Last week there was a news story, saying that TVNZ is planning to lay off 90 staff, as it moves to save $25 million. In it,  Chief Executive Rick Ellis was quted as saying that the layoffs represent approximately 25% of the costs reductions needed due to falling advertising revenue. I don’t recall who it was but someone recently was telling me that they never watch TV advertising but one evening he and his wife decided that the would watch the TVC’s. The next morning he asked his wife what brands were represented in the TVC’s they watched the previous night, she couldn’t name one.

People can avoid TV commercials by recording their programs with MySky and now of course Tivo has also launched in New Zealand. I don’t know if it works in New Zealand, but in the US I believe that you can program your Tivo to not even record advertisements at all as there is an encoded message that tells it when advertising starts and ends.

Around the world there are newspapers closing down, going out of business because not enough people are buyig them any more, which means they can’t sell enough advertising to keep them going and people are choosing other media such as the Internet to find their news.

Huge numbers of people are favouring their iPods and other MP3 players instead of listening to the radio. People are buying less music CD’s because they have access to other media such as iTunes, YouTube and MySpace to mention a few legal ways they can access their entertainment.

Then of course there is mobile and virtually everyone has a mobile phone and sometimes two.  The days that your phone was only for voice and SMS are long gone. Today on our mobiles we can check email, take photos and post them onto websites such as Facebook, read or watch the news, Instant Message, check our social networking applications and more.

Then there is the location component. A couple of weeks ago I was able to show my location using Google Lattitude on my mobile to my friends. I was able to monitor my pace and calorie burn on Allsport GPS and post photos that I took on my phone straight to my Facebook page while I was running.

So back to the original topic, what does all that have to do with advertising media. Simple really. If your phone knows where you are and you opt in to services that tell you about things you want to know about, relative to where you are and when you are there, you can be offered all sorts of relevant goods and services that you will want to know about and take advantage of.

This afternoon I was talking to a partner about their participation in a 100km bike race. The bike race would have been sponsored by industry leaders including bike manufacturers, sports drink and supplement brands and other partners. The event and the activity in general takes place on the road, so is very location oriented. If you register for the event, a brand would be very keen to make offers to you. Because you are in the event, they can market very specifically and know that their likely response rate is going to be very high. A LBS application could involve maps and directions, but also relevant Points of Interest. Prior to and after the event they could include where to buy a new bike or bike accessories, or where to get a pre-race service or gear check.

It could include where to stay, where to get healthy food, where to train, where to buy your drinks and supplements, a message as you come near a cycle clothing shop of promotional deals, with an electronic coupon displayed on your mobile phone. It could show you where you can get refreshments on the way or even where to find a public toilet. It can show you where the start points are and a route for the supporters to be able to go from point to point without running into the cyclists. It could help companies or supporters get to a cyclist who has gear damage. Prior to or after the event it could even provide a social network to help you find training partners in different parts of the country, for example if you are away on a business trip and have your bike with you. Sponsorship, brand association can be tied to actual sales promotions, which are triggered by people who have opted in to a service who are close to the store or place where a service is available.

These sorts of service would be opt-in, which means that people sign up to a service and specify when and under what conditions they may be contacted on their mobile. Because the service offers benefits to the user and the user is specifically interested in the sport and active at the time, there is a far greater likely response rate than traditional scattergun media advertising which is traditonally very costly.

GeoSmart of course is able to display maps, provide turn by turn driving directions from anywhere to anywhere in New Zealand. It has a Points of Interest Web Service which can help geocode and display relevant locations like shops, cafes, public toilets etc and the Proximity Tool can assist in identifying relationships between POI which could for example be an alert when a cycle rider is within a kilometer of a bike shop using GPS or other tools to identify the location of the cyclist. This could be combined with a social network, registration for an event, an interest group or perhaps an exclusive service for an event, or the customers of a particular brand, for example you can use this service for free, but only after purchasing an Avanti bike.

If you are interested in concepts like this, please subscribe to this blog, and feel free to leave comments or questions. if you want to talk to someone about any of these ideas, please email info@geosmart.co.nz.

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March 31, 2009 - Posted by | Agencies, awards, cartography, driving, driving directions, geosmart, gps, lbs, location innovation awards, maps, Marketing, new zealand, proximity based marketing, Sales, satnav, social networking, Uncategorized, web maps | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

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