Location Based Marketing

Location Based Marketing | Rori DuBoff
Location-based
Marketing
DECEMBER 2013

Location-based marketing: What is it?
Reaching consumers in the
right place at the right time
with the right message and
experience.
Content, media and services
adapted to an individual’s
current physical location.
Powered by technologies
such as Bluetooth, GPS,
RFID, WiFi, Near Field
Communication, iBeacon.
- 2 -

Key technologies enabling Location-based marketing
BLUETOOTH RFID NFCWIFI
Wireless technology
standard to exchange
data over short distances
between devices.
Bluetooth is most
commonly found on
mobile devices, but can
also be integrated in
billboards or point of sale
to engage consumers
through shareable, real-
time content.
Small electronic chips
that transmit data
wirelessly via radio-
frequency identification.
Similar to a barcode
(unique object identifier)
RFID tags can identify
and track movement (of
objects, products,
people). At events,
consumers can check-in
in a venue just by
wearing a RFID
bracelet.
Most common wireless
technology exchange
for connecting devices
to the Internet using
radio waves. Offers high
speed longer range
access and bandwidth
It’s the preferred
technology to engage
consumers with apps,
websites, or other digital
content. Many brands
sponsor Wi-Fi hot spots
to give free Internet
access in exchange for
consumer engagement
and data.
Establishes short-range
communication between
devices by touching or
bringing them into
proximity.
Near Field
Communication (NFC)
can be used for
cashless payments (i.e.
Google Wallet). NFC
tags can also be
embedded into non
electric objects or media
(such as posters) to
create interactivity with
consumers.
Enables an iOS
device or other
hardware to send
push notifications to
within close proximity.
Placed in strategic
locations, sends
mobile alerts with info,
coupons or rewards
to consumers when
they approach a
certain area.
iBeaconGPS
Used in most navigation
systems and mobile
phones to provide
directions or locate and
target the consumer with
customized content.
Space-based satellite
navigation system that
provides accurate
location information to
GPS-enabled devices.
- 3 -

Location-based consumer usage throughout the World
Family trackers
Mapping & Navigation
Find friends
Mapping & Navigation
Find restaurants &
Entertainment
Venues
Navigation, Safety,
Emergency & Tracking
Navigation
Find restaurants and entertainment venues
Find friends
Public transport schedules
Deals & offers
46%
26%
22%
19%
12.5%
Key consumer usage of LBS
Source: TNS Mobile Life, 2012
- 4 -

Location-based Marketing: Growth & Spend
Source: Emarketer 2013, Strategy Analytics 2011
Location-Based Services
Worldwide Users
2011-2016 (millions)
Location-Based Advertising &
Marketing Spend
Worldwide, 2012-2017 (€ billions)
Significant growth in both the number of people using Location-based Services
and the marketers’ investment in Location-based Marketing media.
Almost 20% of the world population
is already using LBS. 62% of those
who don’t, aspire to do so in the
future.
Location-based services are expected
to bring in $10 billion in revenue from
consumers and advertisers by 2016
More than 50% will come from
location based search advertising.
2011 2012 2013 2014 2015 2016
502
747
1,054
1,391
1,746
2,093
2012 2017
€ 0.53
€ 6.50
- 5 -

Value of Location-based Marketing
More efficient media spend
Greater accuracy in targeting through
hyper local placement and mobile
connectivity, more precise data tracking
and insights for optimization
More relevant messaging and
interactive, shared experiences
Adapting messaging and content to
local environments to create more
meaningful connections between
brands, people and communities
More sales activations and loyalty
Physically interacting at the right time
and place with immediate value, such
as offers or kiosks, influences purchase
decisions and fosters brand advocacy
- 6 -

EVENTS
SEARCH &
DISPLAY
POINT OF
SALE
MOBILE
APPS
(& WEARABLE
TECH)
OUT OF
HOME
(OOH)
Active Consumer
Proactively engage with location-based
content/services (launching an application,
interacting through sensors, etc)
LBM Opportunities across all targets and channels
There are 5 key areas for effectively deploying geo-targeted communications.
Based upon media, touch point and consumer needs, user engagement varies from
“active” engagement to “permissive/passive” engagement
LOCALIZED MEDIA OPPORTUNITIES
1 2 3 4 5
AWARENESS / DISCOVERY
LOYALTY /
REFFERAL
PURCHASECONSIDERATION/ PREFERENCE
Consumer Engagement
Permissive/Passive Consumer
Give permission and access to personal
data in exchange for relevant branded
content/services/messaging.
- 7 -

Outdoor media to reach consumers ‘on-the-go’ in
environments such as on streets, outside buildings, in
malls, metros or other open spaces
LBM Opportunities
Digitize traditional OOH media (i.e. billboards) to go
beyond awareness and extend consumer engagement
in physical locations
1) Out Of Home
- 8 -

Passers-by see different styles of
clothing based upon the changing
weather. When it’s raining, the
digital billboard displays raincoats
plus umbrellas.
(La Redoute, Paris)
(Mini, UK)
Mini car drivers receive
customized messages on
changing billboards along
their commute.
OOH Events Search & Display Point of Sale Mobile Apps
- 9 -

Pedestrians can tap on the city
street screen for directions, real-
time event info, weather and local
news from this billboard powered by
Google Now.
(Google, UK)
Dog walkers can get a sample of
dog food by checking in to a
billboard with their mobile device.
(Granata Pet & Foursquare, Germany)
- 10 -

Airport travellers tap on a digital
NFC billboard to browse Pandora’s
music, sign up for a newsletter and
access the site from their mobile.
(Pandora, Hong Kong)
(Lipton, South Africa)
When it’s hot outside, people can
get a free Lipton iced tea by placing
their warm hand on a temperature
sensitive screen.
- 11 -

2) Events
Physical activations and social gatherings during
specific times and places for people to
congregate and interact
Location-Based Marketing Opportunities
Enable consumers to engage with the brand/product in more
interactive (experiential), physical (augmented reality) and social
ways by rewarding local participation and public content sharing
- 12 -

Event attendees help raise
awareness on water scarcity by
tweeting, and in return also get a
free bottle of Bezoya water.
(Bezoya, Spain)
Art lovers and festival goers discover
a hidden art exhibition and
augmented reality Lancome
experience through their phones.
(Lancôme, Canada)
- 13 -

During games, and when near the
stadium, get a customized rich media
mobile ad to watch a video and
purchase the product
(EA Sports, UK)
Attendees at the Sevens World
Series receive a message to win a
VIP trip to another tournament in the
series if they upload a picture to
Twitter or Instagram with the brand’s
hashtag.
(HSBC, Dubai)
Location Based Marketing | Rori DuBoff - 14 -

3) Search & Display
LBM Opportunities
Plan against location specific keywords, display and video to target
geo-specific consumer segments at various phases of the
consumer journey. Extend across online, mobile, and other digital
Digital media and content dynamically delivered based upon
the consumers’ real-time location, search behaviors
and media behaviors.
- 15 -

Website visitors get a special live
promotion (discounted train ticket)
based upon their current geographic
location and web search behavior.
(East Coast, UK)
When it’s warm outside, get a
mobile ad to hydrate yourself with
water at a nearby store.
(Evian, Canada)
- 16 -

4) Point Of Sale
Communications, content and experiences that surround
the consumer based upon their proximity to point of
sale, historical movements and purchase intent
LBM Opportunities
Deploy situation-based messaging and geo-targeted
coupons within store or near proximity with mobile alerts,
in-store kiosks and digital displays
- 17 -

Prospect shoppers entering a store
receive a mobile alert to entice
them to go to a competitor’s store
and redeem a coupon.
(Meat Pack, Guatemala)
In-store and online shoppers can
explore Carrefour’s virtual
supermarket with Google Street
View technology and find hidden
promotions and product rewards in
store aisles
(Carrefour, France)
- 18 -

Tesco shoppers receive
personalized ads (gender &
approximate age) when paying in a
gas station via facial recognition.
(Tesco, UK)
Subway riders can purchase
makeup that matches their outfit
at station stops.
(L’Oreal Paris, USA)
- 19 -

balloons
Busy Koreans can access free Wifi,
download coupons and do the
shopping while on the go, thanks to
Emart WiFi hotspot balloons.
(Emart, South Korea)
Shoppers are shown a video about
an item of clothing when they lift its
coathanger from the rail.
(Vanquish, Japan)
- 20 -

5) Mobile Apps (& Wearable Technology)
Location enabled services that run on mobile devices
(cell phones, tablets, accessories…) and locate the
consumer to offer a better user experience and more
relevant information
Location-Based Marketing Opportunities
Co-develop or sponsor location based apps /services that deliver
highly relevant, unique consumer value (such as time or cost
savings) and help drive brand transactions, loyalty and sharing
- 21 -

Point your phone to the sky to unlock
and download tracks through the Air
France Music mobile platform
(Air France, France)
Drivers navigating traffic with their
phone are alerted to the nearest
Volvo dealer for a free test drive.
(Volvo, USA)
- 22 -

Through the eyeglass lens,
see and discover information
about the places around you –
connecting physical and digital
worlds simultaneously
(Glass mock/demo, TheTrendGuys)
Families at McDonalds can
have more fun with their kids
through mobile games activated
by NFC tags in the table.
(McDonald’s, Singapore)
- 23 -

Take-away: 5 Location-based marketing opportunities
1. Unlock value from traditional media
Digitize OOH media such as billboards to go beyond awareness to engagement, activate social
events with check-ins, AR or digital displays, QR codes on streets, NFC poster tags, etc.
2. Increase media efficiencies through hyper local targeting
Plan, bid and purchase location specific search keywords, display, and video to target geo-
specific consumer segments at various phases of consumer journey.
3. Activate Sales
Accelerate purchase with geo-targeted time-based offers/promotions, in-store kiosks. Convert
prospects or switchers within proximity of purchase, or within store
4. Capture data to measure and optimize performance
Track and evaluate all interactions through mobile and social apps, digital display, in-store kiosk
to inform future and associated marketing
5. Long term consumer relationships building
Co-develop or sponsor location based apps /services that deliver highly relevant, unique consumer
value (such as time or cost savings) and help drive brand transactions, loyalty and sharing
- 24 -

Video link: goo.gl/WrNzea

Location Based Marketing

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