As smartphone penetration in the UK approaches 50%, brands are presented with new opportunities to leverage location-based services (LBS) for consumer engagement and marketing. Essential principles for utilizing LBS include offering functional solutions, ensuring transparency about data use, and embedding services within existing platforms to encourage adoption. Overall, a strategic approach to mobile marketing is vital for brands to maximize benefits in this evolving digital landscape.

1. FUTURE OF...
mobile

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3. The future is now
As the UK approaches smartphone penetration of
50%, the old joke of every year being billed as the
‘year of mobile’ is starting to fade away. Although
mobile internet usage is still relatively low at
around 20% of total time online and so talk of a
‘post PC’ era is probably a little premature, there
can be little doubt we are entering a new phase of
the digital revolution.
From a marketing perspective, perhaps one of the
most significant characteristics of smartphones
is their constant presence with consumers when
out of home and, crucially, while shopping. The
consumer desire for connectivity on the move
presents marketers with a huge opportunity for
location specific communications.
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4. Location, location, location
Mindshare’s Future of... programme challenges
conventional thinking through consumer-
centric insights. To investigate the location
based opportunity, we have employed a
number of different research techniques -
qualitative groups, accompanied shops, and
our very own online co-creation community of
300 digital natives.
We have specifically sought to understand:
• How do smartphone users feel about
location-based services (LBS), and how
should brands best utilise them?
• Can mobile offer advertisers the
opportunity to deliver more brand focussed
communications at point-of-sale?
From our research we have developed five
core principles for brands to apply when
considering using LBS.
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5. details
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6. 01 Consumers look to mobile to solve everyday problems –
think how your brand can provide this functional utility
As smartphone usage begins to For most users, value lies in the solution of a
mature, users are employing stricter small everyday problem – guidance around
criteria when choosing to adopt mobile a store, a petrol station location finder or
services than they were in the early a bank balance notification tool – rather
days of smartphone adoption. With than pure branded entertainment. Services
over 500,000 apps available on the which provide an on-going utility, no matter
iPhone alone, branded mobile services how small, are much more likely to achieve
need to offer users a strong value repeat usage than more entertainment
proposition if they are to gain traction. focused mobile services.
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7. 02 Consider how you can overcome perceptions
of bias when providing a mobile service
In this space, brands are not only To overcome this problem, brands need to:
competing with their traditional
competitive set, but with a myriad of • Make sure that the application returns
companies outside of this set and any information on all brands within the
number of app developers. When a brand category. For example, a Flora low-
provides a branded app which focuses cholesterol app must return results across
on a utility, consumers voice concerns the entire category.
about the objectivity of the solutions
the application provides. In a cluttered
market, consumers will often choose an
• Think about providing an application for
a complementary category. For example, a
app from a more objective source. In a
cheese manufacturer could provide a wine
point-of-sale setting the retailer is often
tasting app.
seen as more objective than the brand.
• Ensure that the branding is subtle
and discrete; remember the brand is the
facilitator rather than the star.
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8. 03 Be transparent about how you’re using consumer data
Location based apps have the ability In this climate, brands need to be as
to provide a service which utilises transparent as possible:
other personal data besides a person’s
location. We found that a major barrier • Reassure that no data will be shared with
to consumers adopting location based any third parties, as people have concerns
services is privacy - consumers are about spam.
increasingly nervous about how their
personal data is being used. For some, the
privacy concern went beyond the use of
• When explaining what data is collected
and how it will be used, do so within the
personal data and (somewhat overblown)
App Store rather than within the actual app
fears were raised about being followed via
as this will slow down its performance.
the GPS in your phone.
• Provide users with a way to get in touch
and ask questions, as this builds trust and
allays fear of data privacy breaches.
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9. 04 Building on existing platforms often makes more
sense than building your own
A common theme emerging from our So for example, a BP fuel location finder service
research was the need to make location may be more successful if built into Google
based services seamlessly and intuitively maps than as a standalone app. Similarly it
accessible. Consumers spoke of the may be more advisable to build a service that
perceived hassle of finding, downloading provides extra augmented reality information
and then repeat using bespoke apps as a on a physical product through a platform such
significant barrier to initial adoption. To as Blippar or Layar than as an independent
that end, brands need to consider whether brand delivered service.
it is worth building their own app or
integrating their utility into a pre-existing
platform.
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10. 05 Consider the potential of Location Based Services
for amplifying traditional communication channels
Mobile, and in particular location based apps, should
be viewed as the ‘glue’ that holds different strands
of a communications campaign together. Mobile
apps allow for enhanced brand interaction for media
consumed out of home, as well as leveraging the ever
increasing trend of dual-screening. Here are a few
things to consider when integrating mobile apps into
traditional media:
• Placing a QR code in the corner of your standard
outdoor or print execution is not integration. Think
about how your creative execution can stimulate
further interaction.
• Think about the principles of gamification and
how you can use the interaction of location based
apps with traditional media as a gaming mechanic.
• Think about how you could use augmented
reality on a second screen to enhance the viewing
experience of a traditional AV advert.
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11. stance
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12. Our Stance
At Mindshare we believe that it is important to be
grounded – there needs to be a reality check. How
far along the adoption curve are your consumers?
Just because the technology exists, doesn’t mean
that your consumers are using it – just because a
brand can do it, doesn’t mean a brand should.
We believe that the smartphone revolution provides
brands with fantastic opportunities and that as this
space is relatively under-developed, you can get a
headstart on many of your competitors. A mobile
strategy is now an imperative part of any media mix;
however to truly maximise the benefits, a considered
approach, based on insight, must be adopted.
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13. what’s Next?
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14. In 2012, Mindshare’s Future of... programme includes anaylsis of Television, Social, Connected TV and
Consumer Choice.
To receive these reports on their publication - or to request a place at one of our breakfast briefings on
each subject - please email rsvp.london@mindshareworld.com with your details. Alternatively, you can
contact Jeremy Pounder or Louise Richardson via firstname.surname@mindshareworld.com.
2012 Mindshare Media UK Limited. These materials remain the intellectual property of Mindshare and no licence or permission given to use
or adapt these materials, the underlying ideas expressed therein, or any part thereof.
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