In 2015, mobile devices officially overtook desktops as the preferred way to browse the internet and approximately 68 percent of companies have integrated mobile marketing into their overall strategy. The rate of adoption will continue to increase as technologies evolve and developing nations gain access to mobile devices. Competition in the mobile marketplace is fierce and location intelligence is emerging as a key differentiator in mobile marketing strategies.
Companies can use location data to create unique engagement experiences for each individual customer based on their proximity to a retail store or specific area. This new method of customer engagement can help drive additional sales and it is already having a major impact on businesses worldwide.
Location-targeted mobile advertising revenues are expected to reach $18.2 billion by 2019 according to a BIA Kelsey Local Media Forecast. We answered a few of the most commonly asked questions in effort to assist with your mobile-marketing strategy. Here is part 1 of 2.
1) What is location-based mobile marketing?
Location-based mobile marketing is a technique that involves brands interacting with customers using their physical location via a mobile device. The types of interaction can vary but they typically include advertisements and coupons through emails and short message service (SMS) or text messaging.
This is executed through a process called mobile geofencing or geotargeting.
2) What is mobile geofencing or geotargeting?
Mobile geofencing is a location-based service that creates a digital geographic fence (geofence) around the physical location of where a customer might visit throughout the day. Brands are prompted to make a decision or take an action once a customer enters the geofence.
For example, a coffee shop called Cam’s Coffee creates a geofence that extends one-mile around the perimeter of its physical location. Cam’s Coffee generated an action that sends a coupon to customers who have opted-in to receive communication once they enter the geofence. As a result, Cam’s Coffee cultivates additional sales and grows its customer base.
3) What are location-based SMS campaigns?
SMS stands for short message service and is otherwise known as text messaging. A location-based SMS campaign is an effective way for brands to tailor specific promotions via text message based on a subscriber’s real-time location.
For example, Cam’s Coffee can automate an SMS campaign that delivers a text message to subscribers once they cross into the designated geofence. Once you enter the parking lot of Cam’s Coffee you can receive a text with a link for a free cup of coffee.
4) What are the privacy options for SMS and other location-based marketing techniques?
Privacy and security are paramount. When it comes to this topic, we follow three core rules at LocationSmart.
- Have a good reason to capture a user’s mobile location
- Let them know their location is going to be captured
- Ask permission to capture their location
Location-based marketing techniques involve the interaction between a brand and a consumer so there are options to opt-in and opt-out of these services. This means that consumers must agree to receive communications before the brand initiates a campaign and starts sending messages, coupons, etc. Obtaining permission is the most important step in location-based marketing.
5) Does this technology work on all mobile phones, carriers and plans?
Yes. With network-based geofencing through LocationSmart you can reach 100 percent of your subscribers regardless of carrier, phone type and plan. With our platform you can locate more than 15 billion mobile devices worldwide.
For more information about LocationSmart and its location-based marketing solutions, please visit https://www.locationsmart.com/solutions/proximity.