GeoSmart Weblog

Just another WordPress.com weblog

Proximity Based Marketing and LBS is a Growth Opportunity

I’ve mentioned in previous blogs that traditional forms of Advertising are shrinking. There are many statistics backing this up. There are many statistics backing this up and in Asia Pacific, Carat, for example have forecast a 5.8% decline in ad spend for this year. Obviously the economy is a factor in this result, but it also signals a change in advertising behaviour as people are paying less attention to traditional forms of advertising. Many people now have products such as MySky and Tivo is almost here. These products make it very simple for people to avoid watching TVC’s because the can fast forward their recorded TV programmes. TVNZ announced that they were laying off 90 people as a consequence of a $25 million reduction in advertising revenue. The same applies with radio where many people are now opting for their iPods to listen to their favourite music instead of tuning in and being forced to listen to radio ads.

In my opinion, this doesn’t mean that people want to avoid advertising, specials and promotions altogether. They want them to be more relevant. ZenithOptimedia have forecast far greater drops in Ad expenditure, 11% drop in magazines, 10% in radio, 5.5 in TV, but around a 10% increase in Internet Advertising. So traditional forms of advertising decline, but Internet advertising is on the rise.

Why would that be? People are using the Internet far more these days, which takes them away from traditional media, but the key element to me is relevance. In the World Wide Web, it is far easier to ensure that advertising is relevant to the search or type of site that people are visiting. It also offers a great opportunity for call to action with Click Through, which is of course where Google makes the bulk of its income.

The ability to have people opt in to various services that are relevant to their interests and needs, their current time and place means that the offers will be welcomed and will have a far greater sales conversion rate than with traditional means of advertising and promotion. This is where the opportunity arises with Location Based Services (LBS) and Proximity Based Marketing.

The issue isn’t that people hate ads, specials, good deals and information. The relevance needs to be around space and time. I would welcome a Speight’s Mates Happy Hour electronic coupon, when I am walking past a bar, with a 2 for 1 offer on a Friday evening after work. But I probably wouldn’t even see a printed coupon in a magazine.

I’m sure tourists would take advantage of a special offer to a half price jet boat ride when they are on holiday in Queenstown, when they are within a kilometre of the boat on a sunny morning, than if they read an ad in the plane on their way to New Zealand. The tour operator gets a full boat and all the passengers have more fun. It’s timely, its based on their immediate location and its relevant to their current situation.

Many people think that the technology isn’t ready, but according to a story in ITWire, compound growth of GPS in mobile phones is over 49% and one of the major drivers in the proliferation of SmartPhones. According to Mobile Marketing Magazine, despite the economy, the penetration of SmartPhones grew by 33% to February this year. The traditional definition of a SmartPhone comes from Operating Systems such as Palm, Symbian and Windows Mobile, but if you look around today, many of the mobile apps in those phones such as Contacts, Diary, Email, Still and Video Camera are now standard in pretty much every phone and with the low cost of GPS, that is now being added at great speed.

With Software Development Kits being made freely available for the popular brands and models of phone, this is a perfect opportunity to become familiar with the web services and API’s available from GeoSmart and outlined in previous blogs. All you need is a good idea and a little market research. Of course GeoSmart can offer you a Developer Agreement which gives you free access to any tools you need during the development process.

You can find more information on the Developer Page at http://www.geosmart.co.nz or email info@geosmart.co.nz

developer-page1

April 21, 2009 Posted by | Agencies, geosmart, GIS, gps, lbs, location based services, map tools, maps, Marketing, Mobile maps, new zealand, new zealand maps, proximity based marketing, Sales, satnav, Uncategorized, web maps | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Free V, Free Ice Creams, Free Entertainment and Location Innovation Awards

So I’ve been thinking some more about entries that people could come up with for the Awards. It’s summer Downunder and that raises some interesting ideas for LBS applications for the Awards.

In summer we have lots of events such as beach parties and concerts in parks sponsored by various organisations and often in conjunction with radio stations. Often as part of these events, ice cream and energy drink brands get together and offer opportunities to win free product and other goodies by getting to the right place at the right time.

This might be a game or a treasure hunt or it maybe simply a matter of telling people that there is a free concert on in a particular park or beach, or that the Outside Broadcast Radio Vehicle will be at a certain spot at a certain time and if you are one of the first (x number of) people to get there you will get some free product.

LBS is a great way to get people to head for those locations. Here are a few examples:

  • Text a message to a short code with your current location (street address) and get the time and location of today’s beach party or concert, complete with personalised turn by turn directions on how to get there.
  • Text a message to a short code with your current location (street address) and get your first, or next clue to get you closer to your prize.
  • Text the name of your town to a short code  to get information about the next event date and time.
  • Receive a message that you can forward to your friends who you want to join you at the party or concert so they can also get their own driving directions.
  • As above but with electronic coupons so that the first (x number of) people with the coupons get the prizes or free product. Only people who receive the electronic coupon qualify for the prize, which means people who send invites will want others to send one to them, which creates a viral marketing process.

Another concept could be a solution for free product for people driving on a holiday trip. This could be along similar lines, but promoting a different service. For example:

  • In recent years the narrow Kopu Bridge leading into the Coromandels is a major bottleneck, sometimes with delays of an hour or sometimes much longer. On a number of occassions I’ve seen one of the distinctive V cars on the side of the road giving away cold cans of their popular energy drink to frustrated drivers sitting in a long line of traffic on a steaming hot summers day. If they are going to do that, they could come up with some sort of LBS traffic report telling people where the traffic jams are and where to find themselves a bottle of V to cool down with. Of course this would also be a great concept for brands like TipTop Ice Cream who frequent run summer competitions.

These are just a couple of ideas where popular brands can have some summer fun with LBS and Viral Marketing to promote their brands, show some technology leadership and appeal to the tech savvy Generation Y people and build some product loyalty.Maybe you could come up with an idea, win one of our awards and then sell the concept to them.

December 15, 2008 Posted by | awards, competition, competitions, driving directions, geosmart, lbs, lbs games, location innovation awards, new zealand, proximity based marketing, real time traffic, social networking, Uncategorized, viral marketing | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment