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Location-Based Marketing
and Advertising
Case study Analysis
What is Location Based Marketing
Direct Marketing Strategy
Uses a mobile device's location
 Alert the device's owner about
an offering from a near-by
business.
“Reaching right consumers in the right place at the right time with the
right message and experience”
O2
Telefónica UK Limited (trading as O2)
Telecommunications services provider in the United Kingdom
25 million subscribers
O2 is the second-largest mobile network operator in the United
Kingdom
O2+Location Based Advertising
October 2010
First network provider to offer large-scale location-based mobile
marketing in the UK
Enabling brands to deliver relevant SMS and MMS to targeted
consumer
O2 Uses customer data to provide personalized
marketing
Example
App : iPhone application for theme park
Target : Families with children
 Strategy : phone network have launched 50% off tickets all over the
country - and the huge discount will apply to up to five tickets.
How to O2 system works
1.Customer opt into the system (www.o2more.co.uk)
Age
Gender
Interest
2. Near outlet that matches their profile and receive an
SMS message for discounts or other offers
Technology of Location Based Advertising
service
Geo-fencing (geofencing) is a feature in a software program that uses
the global positioning system (GPS) or radio frequency identification
(RFID) to define geographical boundaries.
Combines a user’s (or object’s) location with a map-based
Placecast (ShopAlert) is providing geo-fencing technology to the O2
Shop Alert Pilot survey
• Launched : September 2009
• Major retailer : North Face, American Eagle Outfitters, and sonic
• Result
65%
35%
Purchase non-purchase
O2 Overcome Challenges
challenges
Opt-in and
opt-out
Age
Data
sharing
Devices
Frequency
Will change

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Location based marketing and advertising

  • 2. What is Location Based Marketing Direct Marketing Strategy Uses a mobile device's location  Alert the device's owner about an offering from a near-by business.
  • 3. “Reaching right consumers in the right place at the right time with the right message and experience”
  • 4. O2 Telefónica UK Limited (trading as O2) Telecommunications services provider in the United Kingdom 25 million subscribers O2 is the second-largest mobile network operator in the United Kingdom
  • 5. O2+Location Based Advertising October 2010 First network provider to offer large-scale location-based mobile marketing in the UK Enabling brands to deliver relevant SMS and MMS to targeted consumer
  • 6. O2 Uses customer data to provide personalized marketing Example App : iPhone application for theme park Target : Families with children  Strategy : phone network have launched 50% off tickets all over the country - and the huge discount will apply to up to five tickets.
  • 7. How to O2 system works 1.Customer opt into the system (www.o2more.co.uk) Age Gender Interest
  • 8. 2. Near outlet that matches their profile and receive an SMS message for discounts or other offers
  • 9. Technology of Location Based Advertising service Geo-fencing (geofencing) is a feature in a software program that uses the global positioning system (GPS) or radio frequency identification (RFID) to define geographical boundaries. Combines a user’s (or object’s) location with a map-based Placecast (ShopAlert) is providing geo-fencing technology to the O2
  • 10. Shop Alert Pilot survey • Launched : September 2009 • Major retailer : North Face, American Eagle Outfitters, and sonic • Result 65% 35% Purchase non-purchase
  • 11. O2 Overcome Challenges challenges Opt-in and opt-out Age Data sharing Devices Frequency

Notes de l'éditeur

  1. Typically, location-based alerts are delivered to smartphones through SMS text messages. An alert may include information about a local business' deal of the day or include a purchasing incentive, such as a discount coupon code. 
  2. Opt-in:Customers must be able to opt out of the system at any time and must be required to opt in at the start. Age:The O2 scheme is not available to customers younger than age 16. Data sharing. The targeted marketing is based on information supplied by the customer. This data must not be shared with other customers Frequency. Because the SMS is triggered by the customer moving into the geo-fenced area, there is a danger that the customer will be bombarded with messages as he or she walks up and down the street. The Placecast American trial capped messages at one per every 48 hours and three per week. The O2 scheme limits the frequency of messages to one per day. Devices. The O2 scheme works on any mobile phone. It is not necessary to download an app (i.e., a smartphone is not required), and it does not affect the device’s battery life.