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Location-Based Marketing and Advertising Case Study


Abstract

The report introduces the case study where a new location-based marketing service is discussed. It is a large-scale service that helps advertisers to attract the attention of many potential consumers regarding their age, gender, and interests. The paper summarises the peculiarities of the program and answers four questions with the help of which the chosen concept may be better understood. It is proved that targeted marketing and location-based marketing, in particular, helps to meet the needs of consumers and pay more attention to their personal information in order to choose the most appropriate services, discounts, and goods.

Due to the fact that the O2 scheme can work on any mobile phone, there is no necessity to install different programs or buy special smartphones. This is why any business can benefit considerably from the services discussed in the case study, and its evaluation makes this novelty available to people from different countries.

Summary of the Case

The case study under analysis introduces a new technology based on the 02 scheme and describes its peculiarities. The main idea of the work is a large-scale, location-based service that aims at delivering targeting marketing to a variety of mobile devices (O2, 210). The point is that targeted marketing is a crucial part of business nowadays. Many organisations try to improve their work and services in accordance with consumer demands, technological progress, and expectations. The concept of targeted marketing is powerful indeed; it is based on such factors like age, gender, preferences, interests, etc. that have to be given by consumers on their own will. Still, the application should provide its potential users with the opportunities to share or hide their personal information as well as to opt-in or out any time they want.

The location-based feature of marketing is all about the ability to find the right person at the right place at the right time in order to make the right purchase. This search and choice should take much time. This is how the O2 idea of targeted marketing through location-based services is described in the case study and how it can actually work. People share their personal information. On the basis of this information, they are chosen for SMS delivery by means of a geofencing technology (O2, 2010).

The examples of Placecast and AdLocal companies are used to explain how the local-based service can be helpful or, vice versa, harmful. The point is that even new ideas and improvements can be characterised by a number of unexpected challenges and problems. Therefore, it is necessary to think about the filtering items and the conditions under which consumers can be added to the existing system.

The analysis of mobile phones’ usage in Japan, Europe, and the United States shows that not all people around the whole globe are eager to use SMS on a regular basis (Radwanick, 2010). Still, they can benefit from the SMS about the available discounts considerably. Information about the available advertisement is usually in demand; this is why the development of different information delivery methods is a good decision to be made.

In general, the case study under evaluation introduces a quite new technology that meets the demands of a modern population. In this case, there are no definite opinions about novelty. It focuses on the introduction of the service and the description of its main features. This huge location-based mobile marketing is a fresh idea on how to attract the attention of many customers and offer several services at the same time. People have the right to know about the possibilities available, and the chosen technology is one of the possible ways to achieve this goal.

Answers to Questions

Two different approaches to capturing consumer interest are described in this case. How do the Placecast and AdLocal approaches differ?

There are many different ways of how to capture consumer interest and achieve desired success in marketing. In the case study under consideration, the examples of two companies, Placecast and AdLocal, are given for evaluation. Placecast is introduced as a location-based digital advertising company that usually provides opt-in marketing services based on the idea that customers themselves give personal information and allow a company to send various informative messages via mobile phones. AdLocal is another digital advertising company that offers opt-out services on the basis of which consumers are able to avoid getting e-mails and do not suffer from a variety of junk mail.

The Placecast approach lies in paying attention to such personal information like age, gender, and interests. A person gives certain facts about him/herself and agrees to receive SMS messages when he/she is close to an outlet that more or less matches the offered profile. People are not usually bothered with unnecessary information about various discounts and offers in case they use Placecast services. A different situation is observed with the users of AdLocal services. As a rule, people are not required to leave some personal information. In this case, advertisements are based on the location of a potential customer but not on his/her personality. Customers just receive messages as soon as they are close to an outlet. On the one hand, companies may benefit from new customers and share their services to a wide range of people. On the other hand, the users of such program are bothered many times per day with the messages that contain unnecessary information.

In general, these two approaches are interesting in their own ways. The case informs that Placecast services are effective indeed because more than 65% of people, who receive special messages, open them immediately and make purchases enjoying the discounts or other similar offers (O2, 2010). The stats of AdLocal shows that this company is valued at $1 billion (Shaikh, 2010). These are really huge numbers that prove the effectiveness of the offered services. This is why it seems that the factor of personal information is not that crucial. Still, it should not be neglected if a company wants to create a good reputation. This is why though the nature of the approaches offered in the case study varies, both of them are worth attention and recognition because companies are free to use different methods but meet their goal and send more information about the services offered.

Do you think that targeted advertising is better than a blanket approach? What is the difference for the advertiser? For the consumer?

A blanket approach and targeted advertising are the two sides of the same object. In this case, hypothetically, the object is the desire of merchants and advertisers to share information and promote services for the consumers, potential and regular. The nature of a blanket advertising approach is too broad as it tries to cover as many aspects as possible without dividing information according to certain principles. In its turn, targeted advertising has a certain connection to the customers and the information they are ready to share. In general sense, targeted advertising seems to be better than a blanket approach as it does reduce the possibility of important marketing messages being lost among a variety of junk mail. In other words, targeted advertising ensures consumers that they receive information that is relevant to their interests and “enabling people to connect with brands at the right place and in real-time, all via their mobile phones” (O2, 2010, para.7).

This is why it is correct to say that targeted advertising is more interesting and effective for the consumer. First, messages received are usually relevant, considering the consumer’s location, gender, age, etc. Second, customers are usually able to control all information from advertising companies because they can opt-in and opt-out the services. Finally, customers should not spend their time reading the information they do not want to know or even do not hear. At the same time, a blanket approach seems to be more effective for the advertiser due to a variety of possibilities. First, advertisers are free to choose the necessary commercial region for their services. Second, blanket approach management is easy and does not require too many skills. Finally, advertisers share all information about the services they have. At least, this approach provides advertisers with the hope that customers may learn and be familiarised with their offers.

The information from the comScore survey did not differentiate between age groups, only country. Do you think there are differences in behaviour among different age groups that would make location-based marketing better for one group than another?

The survey offered by comScore about the necessity to consider the differences between countries and neglect age different is an interesting approach; still, it is not quite appropriate for the marketing sphere. In fact, different age groups may have different interests and, thereafter, behaviours. In addition, people of different age have various levels of knowledge about current technologies and their own abilities in regards to these technologies. Finally, older people are not always aware of what information is necessary to give and what facts are better to omit. This is why the elderly are usually the users of such services like AdLocal, and the youth enjoy the benefits of the services like Placecast (O2, 2010). As a result of this brief analysis, it is possible to say that location-based marketing can be better for one group and less interesting for another group of people.

At the same time, it is necessary to underline that such factors like the consumer’s country should not be neglected. Each country has its own culture that influences how different consumers may define the same things. In addition, people’s cultural background also defines the reactions and attitudes to a variety of ads sent through messages. Some people may just miss the message with information about the services available; some people cannot help but use the services offered; and some people may spend much time in order to avoid receiving such messages or even blame the company for sending junk mail. This is why both factors, country and age, have to be evaluated to promote successful location-based marketing.

Think of business in your area that might benefit from joining the O2 scheme. What could they offer?

The O2 scheme may lead to a number of benefits for a company that wants to have as many regular and new customers as possible. For example, the sphere of such business as the fast-food industry can win a lot due to the O2 scheme. A person may walk in a city and get as many ideas of where to have a bite as possible, taking into consideration personal interests and preferences. This is why if a person mentions that he/she is a vegetarian, he/she will be offered the services at special magazines or the restaurants with an appropriate menu. There is also no necessity to set up special apps and think that their work can influence the battery charge (O2, 2010). The use of this program is safe and not challenging.

It seems that the O2 scheme has an unbelievable that can make a person to buy a thing or to use a service. There is no need to persuade a person. It is enough just to offer, show ability, and wait for the results. People have to make conclusions independently. This is how the O2 scheme should work. This is why the fast-food industry can benefit from using the offered scheme. This is how the whole idea of location-based marketing and advertising may be introduced to people with various cultural backgrounds and of different age.

References

O2. (2010). . The Blue. Web.

Radwanick, S. (2010). . [ComScore Press release]. Web.

Shaikh, F. (2010). Yahoo Japan scoops up location: Based mobile ad firm Cirius technologies. Ebrandz. Web.

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IvyPanda. (2020, May 16). Location-Based Marketing and Advertising. Retrieved from https://ivypanda.com/essays/location-based-marketing-and-advertising/

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"Location-Based Marketing and Advertising." IvyPanda, 16 May 2020, ivypanda.com/essays/location-based-marketing-and-advertising/.

1. IvyPanda. "Location-Based Marketing and Advertising." May 16, 2020. https://ivypanda.com/essays/location-based-marketing-and-advertising/.


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IvyPanda. "Location-Based Marketing and Advertising." May 16, 2020. https://ivypanda.com/essays/location-based-marketing-and-advertising/.

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IvyPanda. 2020. "Location-Based Marketing and Advertising." May 16, 2020. https://ivypanda.com/essays/location-based-marketing-and-advertising/.

References

IvyPanda. (2020) 'Location-Based Marketing and Advertising'. 16 May.

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