6. Definition “Geo-targeting is a way to regionalize digital media advertisements, penetrating people in certain areas with certain available goods. This technique is a way to directly target customers around the world using IP address mapping or ‘spidering.’ The purpose of geo-targeting is to produce highly targeted advertisements aimed at penetrating a specific audience at the right time. The goal is to achieve better value for inventory and inevitably reach users, increase traffic, boost revenue streams, and improve ROI.” Source: Cruz, Pankonien, Porter. 2010. Research Proposal.
10. Huge opportunity for advertisers to go local “On‐line, companies can send tailored messages that can engage different segments of consumers by reflecting their special interests and behavior. The Internet offers the advantage of contextual placement, or sites for ad placement that are related to the marketer’s offerings.” (148,Keller)
What is geo-targeting in mobile and how is it used?What influences brand awareness and intentionHow are consumers effectively engaging with brands through mobileCase studies
Tailored messaging, personalized content and engaging with customers are powerful ways to initiate conversationsMarketers cut through clutter to connect with consumers locallyLocation-specific messages increases opportunities for customer conversions1/3 of mobile searches are local, less than 1/3 of ads are local – huge opportunity for advertisers!“On‐line, companies can send tailored messages that can engage different segments of consumers by reflecting their special interests and behavior. The Internet offers the advantage of contextual placement, or sites for ad placement that are related to the marketer’s offerings.” (148,Keller) It is important for companies to understand and embrace mobile geo-targeted strategy because:Changes the way we think about our consumer products and our advertising products—the way we talk to our advertisersabout opportunities.If you search for something and the result is nearby, the click-through rates are astronomically higher.Location-based services are seeing huge growthWhen we see that a third of the search queries on a mobile device are local in nature, but a smaller percentage of ads that are local in nature, that’s a recipe for an opportunity for advertisers and agencies.Mobile-coupon spending is projected to reach $1 billion by 2011
Their plan is to use the mobile channel to entice 18-24 years olds with great deals on oil changes. Because 18-24 year old spend most of their time online or on their phone, rather than with print media and they certainly don't watch commercials, this is a way to gain the attention of this on-the-go demographic.1, Tsirulnik1, Khan
1, Williams
200, Leppäniemi2, Schonfeld
Location based social networks are networks such as Foursquare and Gowalla that allow users to check-in to certain businesses upon arrival. When researching geo-targeting and mobile it’s hard to ignore this significant portion of the market. We’re really interested to see the impact of these types of applications on a companies ROI. I’m going to talk a little bit about these companies and present a couple of case studies that prove its importance in business and brand communication. With around 3 million members, Foursquare is the largest of these location based social networks. Gowalla is doing pretty well, but nothing like Foursquare. Considering they have both been out since around the same time, SXSW 2009, Foursquare is doing a great job of expanding it’s market reach. The importance and relevance of these companies to geo-targeting and mobile is the interaction between brands and consumers directly through their mobile devices.STUDY 1: Gap. On August 16, 2010, from Mashable, Gap ran a campaign in which they offered their customers a 25% discount on their purchase if they simply checked in at one of their stores that day. So by simply checking in at a Gap store they would reward you with 25% off your purchase that day. Users of Foursquare found their friends were at Gap, so it was a great way to show that people were actually interacting with the Gap brand on a personal level. The deal was run on August 14th of last year during peak back-to-school shopping times for most consumers. The promotion was one of the first of its kind with this new platform, and even though it was successful it could have been better promoted. Social media blog Mashable discusses how they visited Gap stores during this promotion, and didn’t see one mention of the promotion. The employees were knowledgeable but there weren’t any in-store signs – which would have led to more people registering for Foursquare and thus more interaction with Gap. STUDY 2: Alamo Drafthouse. Alamo Drafthouse ran a promotion in early November in which if consumers checked-in on Facebook places while they visited Drafthouse they would receive a free beer. There are not any results on this campaign currently, but it show the integration of these platforms with businesses.
A third case study we found was geo-targeted mobile application development. This is a little different than the Foursquare promotions.STUDY 3: Pepsi. A third case study describes how Pepsi got into the mix. They recently launched a geo-tageted application called Pepsi Loot. Launched in May 2010, the CRM application is built around showing users businesses near their current location that sell Pepsi products. By checking in you win ‘loot’ or money that will allow you win cool Pepsi products. Coca-Cola has recently gotten in the mix to compete against this app. It was mainly created to benefit restaurants like Taco Bell, or KFC.Coca-Cola interactive manager of UK and Ireland, Jude Brooks stated in a recent conference, "I think mobile marketing is going to transform the way that we connect and communicate with our consumers. Its opportunity is immense. It will run across all different channels of marketing. "The power it gives us in terms of evaluating ROI, and engaging in that one-to-one dialogue with consumers, is phenomenal."Overall, this shows that businesses see the importance of such networks and companies. Considering that word of mouth and user reviews are becoming more trusted than a simple :30 ad spot, they are pumping more money into these platforms. Large companies like Gap and Pepsi are getting into the mix, heck Pepsi didn’t even advertise in last year’s Super Bowl instead opting to run only social media advertising. I believe this is just the beginning of these types of promotions and we will continue to see the rise of these promotions.A business can also see the direct ROI with these types of promotions because they are so segmented and show exactly which consumer checks in and which doesn’t.
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