Location based marketing is a hot trend that marketers can use to improve their campaigns. It allows marketers to run ads on specific locations and zones. Using new technology platforms, advertisers can now target more efficiently ensuring they are running ads to their right targets.
Types of Location Based Marketing Technologies
There are three different types of location based marketing platforms namely: cellular-SMS based, bluetooth beacon based and GPS based. Each of these technologies have their usage and pros/cons.
* Cellular-SMS based– there are telco companies that offer this service wherein marketers can send SMS to people within a cell site. SMS messages can include promos, discounts and announcements. If you are running a shopping mall, you can announce your mall sale. You can utilize cell sites near your mall for broadcast.
Pros: Slightly better accuracy, can be ran on a large scale.
Cons: Targeting of specific age and gender support. Cell site location dependent.
* Bluetooth Beacon– Bluetooth (BT) beacon has become popular in Europe and other 1st world countries. Beacons are strategically placed within establishments. It allows companies to run push notifications to mobile users that have compatible apps. This push notifications can contain ads, announcements and promos as well.
Shops and pop up stores can benefit from this. This allows them to push ads and product information to their customers. BT beacons are also used to trace customer behavior on more advanced systems.
Pros: If you are planning to set up your campaigns within a confined space this solution will work. It is ideal for confined spaces.
Cons: BT from the client should be activated. They should have an app that allows in-store notifications to be pushed. You can’t run on a larger scale (city-wide).
* GPS Based– Most smartphones and tablets have GPS. Because of this, different marketing tech (MarTech) platforms were developed allowing marketers to utilize its potential. An example of this is AdMov. AdMov is an in-transit ads platform that deploys tablets to allow marketers to show their contents to ride-sharing services.
Using the GPS of the tablet, marketers can specify where there ads will be shown. They just pin on the map and specify the radius of geo-location ads. Ads will be shown if a car passes by within the area. This allows marketers to reach their audience on where they are situated.
Pros: Small and large areas can be specified. Marketers can go per zones, per city/town. Accuracy is higher compared to cell sites.
Cons: Limited to where the ad platform is serving. For AdMov it is more targeted to ride-sharing passengers only.
How can Location Based Marketing Help Companies?
Being able to do location based marketing holds a lot of potential for businesses. It helps provide more efficient ways to target relevant ads to the right customers at the right place. Here are some benefits of leveraging these technologies:
* Influence People Near Path To Purchase – using tech businesses can now influence customers that are near purchasing points. Example: in AdMov, big brands are finding ways to influence grocery shoppers for their FMCG products. If the tablet detects they are within grocery stores, their ads are shown.
This is an opportunity for marketers to convince these riders to purchase their products through video ads and promos. Location based marketing allows marketers to influence to areas near path to purchase. These helps in influencing buying if they are near retail shops and purchasing outlets.
* Influence the Right People Based on Where They are Situated– let’s say you are a marketer task to run digital ads to office workers. You are task to run ads when they going around their offices. Using location based marketing this is possible. You can specify running ads inside office districts. This make your targeting very accurate and influence their decision while inside these office zones.
Cellular SMS and GPS based technologies (like AdMov) are capable of running campaigns based on zones. You can specify running ads on residential, commercial, industrial and office zones. This helps a lot as it allows brands to specifically target people based on where they are situated.
Companies that can benefit from this would be telcos, FMCG, restaurants and even small medium enterprises. They can target ads to high value communities, central business districts. Zoning marketing is the most dynamic and cost-efficient way of running campaigns.
* Influence People Based on City/Town– with location based marketing, targeting key cities is possible. If you are a restaurant , running massive OOH can be very expensive. OOH can only provide 4 secs attention time to people. The attention time is not enough to tell the story of your business.
Technologies like AdMov helps bridge this gap. You can run 15 to 30 second videos everytime someone goes inside a city. These video contents allows you to tell your story. People riding these vehicles can learn more about your new restaurant and it can help convince them to try it out while they are within the city.
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Video 1.1 Here is a sample video of new Japanese restaurant in Makati Philippines. Everytime a car goes inside the city, this ad is being played. This helps people discover new food trends within the vicinity.
Influence Hard to Reach People– advertising has evolved over the past years. Millenials and busy professionals seldom use tri-media (print, tv and radio). Let’s take young professionals in BGC. These people does not watch the evening news anymore. This people don’t have access to TV since they are busy commuting during those times.
Leveraging location based marketing helps address this gap. Let’s take for instance AdMov. Since most young professionals prefer riding ride-sharing vehicles like Grab, marketers can run video ads to these riders. To better the accuracy, marketers can target to play ads on preferred destinations of this people (bars, offices, commercial establishments).
Marketers can now be more specific on who and where their ads should be running.
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Video 1.2: IgnitePH campaign targets young professionals and millenials who aspire to be startup entrepreneurs. The ads were targeted to run at university areas and central business districts. For this sample, the campaign was running in Ortigas which is a central business district in Metro Manila.
Other Examples of Location Based Campaigns
Here are some use cases of running location based technologies for ad campaigns:
* Health Insurance– let’s say you are a marketer for a health insurance company. You are task to run campaigns and reach the right customers. Location based marketing will work with you. You can target running ads to riders of hospitals and clinics. These riders are composed of sick people who need your comprehensive coverages.
You can also hit secondary customers such as their relatives. These people influence the decision of purchasing health insurance.
* Condo Dwellers– condo dwellers are lucrative niche for consumer products. These people represent the rising middle class. Whether you are on grocery delivery services, internet provider and other modern living supplier. A best approach in reaching these people is running ads whether via geo-located SMS or in-transport ads to riders of condo units.
Location based marketing leveraging tech holds alot of potential for marketers. It makes ads targeting more accurate and refined. It helps making your campaigns more cost efficient. Exploring and running creative campaigns can help you stand out from the rest of your competition.
If you need help on learning more about location based marketing through in-transit vehicles, feel free to contact us here.
Author: Bobby Ben Davis Cristuta
Bobby is the CMO and Co-founder for Admov Philippines. He is a serial technopreneur. He is passionate in delivering emerging marketing channels and bring Manila as destination for innovative advertising technologies.