The Rise of Mobile and Location-Based Marketing

The rapid advancement and adoption of mobile technology, as well as the evolution of location-based marketing, are creating significant opportunities for companies to increase profitability and grow their customer base. Marketers are now better poised to influence action near the point of purchase in a timely and relevant manner – and we are just at the tipping point of what’s to come.

Research presented in May by Mary Meeker, a venture capitalist and renowned Internet authority, reveals that we are still in the early stages of smartphone adoption.

From Meeker’s Internet Trends 2012 presentation:

  • 3G penetration is just over 60% in North America and only 18% globally
  • Year over year 3G subscription growth is 37% globally (31% in US and 34% in Canada)

Meeker also revealed that consumers now spend 10% of their media time in mobile and 7% in print. Conversely, print accounted for 25% of advertising spending in the US in 2011, while mobile only accounted for 1%. It seems reasonable to conclude that companies stand to benefit by shifting towards mobile.

Smartphone adoption is key to location-based marketing, which focuses on the integration of media to influence people based on physical location. Asif Khan, Founder & President of the Location Based Marketing Association, stated in his presentation at the 2012 Canadian Marketing Association Summit that only 13% of 3G subscribers use location-based services to search for deals or offers – underscoring the opportunity for marketers, as consumers don’t yet have set expectations.

Marketers can already leverage location-based marketing in a variety of ways – for example, promoting nearby offers through mobile ads or location-based apps such as Foursquare. Many more innovative ways are emerging, using customer data and technologies such as augmented reality to create relevant and engaging experiences.

Technology is advancing and media habits are changing. Now is the time for marketers to embrace location-based marketing.

Canadian Marketing Association Summit 2012 in Review (Day #2)

A couple of weeks ago I had the opportunity to attend the 2012 Canadian Marketing Association Summit. The annual two day event was packed full of insights and information from true visionaries, with content focussed on this year’s theme on connections – how connections with consumers, customers and with each other are made, maintained, and measured.

This post provides a review of the speaker sessions for day #2. Click here to read a review of the sessions for day #1.

Ethan Zuckerman
“Lessons from Revolutionaries – What Activists Can Teach Us About Social Media”

 

Ethan Zuckerman is an activist and scholar whose work focuses on the global blogosphere, free expression and social translation in the developing world. He is a fellow of The Berkman Center for Internet and Society at Harvard Law, founder of Global Voices and the director of the MIT Center for Civic Media. Ethan provided an engaging talk about the role of social media in recent world events, from which business parallels and learnings can be derived.

Some key points from Ethan’s talk:

  • Darfur and the Congo are both mired in ongoing travesties, however the Congo isn’t gaining nearly as much international aid ($300 per capita vs. $11 per capita).
    • Media attention based on celebrity support for international charity plays a role – such as Angelina Jolie in the case of Darfur.
    • However, it’s not clear whether attention generated from someone who has a wider following, such as Kim Kardashian, would necessarily result in a similar difference in aid (side note: see this post Ethan wrote for an overview of a new measurement unit for attention, the “Kardashian”).
  • The attention fallacy: “If all you do is gain more attention, change is going to happen”.
  • Attention is not the same as engagement – social change is a long, difficult process.
  • Tunisia, the first country to force its rulers from power in the Arab Spring, has gone through incredible change.
    • Initially, people did not hear about protests due to media suppression.
    • Distraught Tunisian Mohamed Bouazizi, a street vendor, lit himself on fire – incident captured on video, and sent to Al Jazeera.
    • Sadly Bouazizi died, but he also became the hero of the movement in Tunisia.
  • Revolutions need multiple channels, including new media and old media.
  • Social media enables amplification but not synchronization.
  • Effective campaigns enable people to watch, share and learn as the campaign spreads.
  • Major error in Kony 2012 campaign – the campaign was spreadable, but could not provide answers for hard questions.
  • People want to be heard – need curators and translators.
  • People want to belong – need authenticity.
  • People need stories – stories should be moving, compelling and real.
  • Revolutions come from people doing what’s right for them in their own best interest – need to help them do that.

Twitter: @EthanZ


Jordan Banks and Marie-Josée Lamothe
“How Canadian Brands are taking advantage of the Digital Transformation through the Power of Friends Influencing Friends”

Jordan Banks is the Managing Director of Facebook Canada, and is responsible for leading and managing all commercial operations at the Facebook Canada office. Marie-Josée Lamothe is Chief Marketing & Corporate Communications Officer at L’Oréal Canada. In their session, they shared thoughts – each from their unique perspective as social platform and brand – on how companies can leverage social media and social influence.

Some key points from Jordan:

  • Facebook is just “1% complete” in its evolution.
  • Facebook doesn’t have all the answers, it changes a lot and often.
  • They do things differently – they’re growing fast, but are still small.
  • Several keys to brand building on Facebook:
    • Make social an organizational priority.
    • Realize that social is 24/7 – need to always be “on”.
    • Test, measure and learn.
    • Develop a strategic media mix – consider using traditional to drive online activity.
    • Create great content – “content is king”.
    • Be social and lightweight.
    • Think about why fans should care and share.

Some key points from Marie-Josée:

  • Avoid becoming “Groupon” on Facebook – don’t primarily focus on discounts/promotions to attract fans.
  • Shift focus from marketing promotion to ongoing engagement.
  • Challenge is to provide great content – while always remaining “on” to interact.
  • Social media provides the means to make consumers into true advocates.
  • The traditional marketing model is dead.
  • Need to become less product-centric, more community-centric
  • Cited example “Canada’s Best Beauty Talent“.
    • TV on demand.
    • Activated by Facebook pages.
  • Organizational structure at L’Oreal – customer care and consumer research report into the same person.
  • If companies continue to focus on the old model, the 4 P’s, they will use the consumer.
  • Need to innovate at the same pace as the consumer – and leverage analytics to ensure you’re reading the consumer correctly.
  • L’Oreal invests heavily in employee education.
    • Digital media course for employees.
    • Code of ethics for social media, educating what’s at risk and what’s at stake.

Twitter: @Jordan_Banks, @MJLamothe


Asif Khan
“Realizing a Multi-Channel Location-Based World”

Asif Khan, a veteran tech start-up, business-development and marketing entrepreneur, is the Founder and President of the Location Based Marketing Association. His talk provided some interesting data on the growth and opportunity for location-based marketing. Asif also shared some case studies.

Some key points from Asif:

  • Location-based marketing is about the integration of media to influence people in specific places.
  • By 2014, smartphone sales will top one billion.
  • Why use location based services:
    • Navigation – 46%.
    • Find restaurants – 26%.
    • Find friends nearby – 22%
    • Search for deal or offer – 13%.
  • Everything has a location – whether at home, on screen or using phone.
  • Offering deals via mobile is important, but must be relevant and of value to recipient
  • Mobile apps and checkins not necessarily best method of delivering offers.
  • Simple but fun wins – gaming (SVNGR, for example), trivia and augment reality can engage.
  • Leverage location-based marketing, brands have opportunity to:
    • Connect.
      • Interact with and engage an audience.
      • Provide rewarding experiences.
    • Collect.
      • Acquire data (including location-based) through permission-based relationships.
    • Convert.
      • Drive to web, store, or location for an experience.
  • Content can be generated, tagged and made addressable to people based on where they are.
  • Innovative example of using Foursquare to drive sampling – the GranataPet SnackCheck (see the YouTube video – very cool!).
  • A place is wherever you are – every person, every place, everything is geo-addressable.
  • Companies in Canada are behind on location-based marketing.
  • Shoppers of the future require platforms that allow them to research, review and shop anywhere and at anytime.
  • Retailers that leverage location-based marketing and embrace technological advances will be better suited to increase profitability and grow their customer base.

Twitter: @AsifRKhan