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
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.
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.