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.