Location-Based advertising is a hot new trend that is having some great results. What is location-based advertising? Well it is simple in a not so simple way–at least the technology is not so simple. The mobile applications use GPS to keep tabs on where you are and how near you are to a company using mobile location based ads. For example, a smoothie shop in my town uses mobile location ads, any time I come close to the store I get a text message with an offer of some kind to get me to come in. This type of marketing will benefit companies by being able to quickly get offers into the hands of consumers that are all ready in the area thus making the marketing more targeted and cost effective.
Right now location-based ads are cool and effective and most people seem to like them. However the smoothie shop that sends me text when I am near by is close to other stores that I go to. Now, I might enjoy one or two smoothies a month, however I go to that shopping area a lot more, say for some milk for the kids. I am already getting tired of getting the smoothie offers every time I get close. The whole thing reminds me of a retail-shopping scene in the movie Minority Report. In the scene the main characters go into a shopping center and they get hit with all kinds of location-based ads that are very targeted. Now this of course adds an unwanted element for the characters that are trying to keep a low profile, however sometimes when I go shopping I just want to be left alone and shop in peace.
I guess what I am saying is that I can see location-based ads being over used and becoming annoying to shoppers. Lets face it location-based ads are a type of interruption marketing and thus some shoppers will find ways to avoid them much like TV viewers finding ways to skip commercials. However location-based ads will probably have the same effect as TV ads and thus will be heavily used. In my mind the companies that learn to use location ads without becoming to annoying will get good use out of them. Also consumers that learn to filter the ads and get to the ones they won’t will be able to take advantage of money saving offers. If not over used both consumer and business can benefit. Businesses get to move inventory and consumers save money.
For more information on location based ads see the following article by Greg Rose. http://www.acquisio.com/marketing-101/understanding-location-based-advertising/