#3 – Geolocation the Mobile Marketing Game Changer

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Source: http://41.media.tumblr.com/tumblr_lsaqefJJob1qkoegjo1_1280.jpg


AWARENESS AND ACCEPTANCE

Do you want to turn your ‘location services’ on?! Do you allow application XYZ to access your location while you use and don’t use the app? If you have a smart phone (iPhone in particular!) I can almost certainly guarantee that you’ve come across that same message popping up on your phone from time to time! Annoying and intrusive as it may seem geolocation actually plays a vital and advantageous role in mobile marketing (watch the video below for an awesome summary!)


THE IMPORTANCE OF PERSONALISATION

Kaplan (2012) defines mobile marketing as any marketing activity conducted through a ubiquitous network to which consumers are constantly connected using a personal mobile device.

The key word here being personal. Marketers must understand the importance of personalising mobile marketing content with the end user and their specific mobile device. This is one instance in which geolocation comes in particularly handy! We all know how mobile phones have become an extremely important part of our day to day lives, so important that some millennials expressed that they want to be buried with a mobile phone, just in case they’re not dead!

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Source: http://1.bp.blogspot.com/_TT8oCwDs37E/TNhVkwGnjaI/AAAAAAAAATo/Oi-sFVWh-Gg/s400/buried3.jpg

Due to the drastic increase in mobile phone adoption and usage over the years (80 million users worldwide in 1995 to a massive 5.2 billion in 2014) this jump has resulted in the cumulative collection of critically important big data. Data specifically regarding behavioural and geographic content that helps marketers generate and tailor personalised information to key consumers.


RIGHT INFORMATION, RIGHT CUSTOMER, RIGHT TIME

Geolocation marketing is all about getting the right information to and from the right consumers to gain a better understanding of their behaviour without overly invading their privacy. The main benefit geolocation marketing brings is delivering personalised messages, offers, discounts and benefits to the right target audience to increase customer satisfaction and customer engagement. Price & Arnould (1999) tell us that customers who install apps and ‘check-in’ using those apps are extremely likely to display a strong form of trust towards that brand, thereby increasing their willingness to enter into a commercial friendship with that brand.

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Source: http://marketingland.com/wp-content/ml-loads/2015/03/mobile-map-local-location-ss-1920-800×450.jpg

Research shows that a majority of consumers are willing to allow location tracking if they benefit or perceive themselves to benefit from it. It is stated that 77% of respondents indicated they would approve location tracking on their phones as long as they received enough value in return (which is the primary goal of marketers today, to provide us as consumers with “extra value”).


COOL TRICK OF THE TRADE

The cool thing with geolocation is it places business ads on customer’s phones who are online and within a business’s proximity. I’ve experienced it numerous times as I’ve walked past a specific Mr. Burger truck at federation square after work to only later realise an ad pop up on my instagram feed promoting Mr. Burger during my train ride home, that’s one way to make me hungry…


SUCCESSFUL APPLICATIONS

Over the years we have seen the successful application of geolocation marketing and the ‘check-in’ function through brands such as Nike+ and my personal favourite Hungry Jacks (Shake & Win)!!

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Source: http://cdn2.ubergizmo.com/wp-content/uploads/2013/01/Nike.jpg

Nike+ utilises geo-marketing by announcing their consumer’s successful runs and fitness challenges throughout various social media platforms. Nike+ has successfully formed an online community in which its consumers challenge themselves, challenge others and ultimately share fitness achievements with their Nike+ community peers. This enhances customer engagement overall and helps form stronger relationships. The Nike+ community receives augmented benefits through the consistent tracking of their athletic performances while simultaneously providing marketers with rich and personalised information helping them maximise the full effects of geolocation marketing. All in all, Nike marketers gained a deeper insight into their own and potential customers allowing them to cater more tailored and personalised marketing content.

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Source: https://nhle9.wordpress.com/2015/04/30/hungry-jacks-shake-to-win-app/

While, Hungry Jacks Shake & Win remained on the other side of the health/fitness spectrum. The campaign claimed “Everyone’s a winner with the Hungry Jack’s App”. Hungry Jack’s utilised geolocation marketing through motivating their consumers to check-in at a local Hungry Jack’s store to win a food prize (the ‘check-in’ is then posted onto the consumers Facebook wall to be seen and target a larger group of audience – their friends and family generating greater brand awareness and attractiveness). The app also provides information on surrounding Hungry Jack’s stores based upon your current location providing an accurate and direct route to your closest store. The mobile marketing campaign proved successful with the app reaching 265,000 downloads and becoming Australia’s most downloaded free app within 18 hours of launch


What do you think about geolocation? Creative or down right creepy?
Can you list any other examples that utilise geolocation mobile marketing?

Till next time, Adios!

References:
Price, L. L., & Arnould, E. J. (1999). Commercial Friendships: Service Provider–Client Relationships in Context. Journal of Marketing, 63(4), 38-56.

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5 thoughts on “#3 – Geolocation the Mobile Marketing Game Changer

  1. I enjoyed this piece a lot Denis. Really easy to read but still information rich. I think the use of geo-tagging is gonna become utilised a lot more, but as long as privacy is still respected towards the consumer. Thoughts?

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    1. Glad you enjoyed it Michael!
      Definitely agree, there is still room for major improvement and the opportunity arising is huge when it comes to geo-tagging and location! Marketers must aim to continually improve on and understand the different ways they can gather the right information on their consumers in a legal and ethical manner as without this continual advancement they will be left behind with ineffective and obsolete tactics and strategies.

      Consumers privacy should be respected 100% and we are seeing an increasingly big push for legislation intended to address the privacy issues with the collection, use, and disclosure of certain geolocation information. I believe firms are beginning to understand the importance of respecting privacy and the negative connotation with being portrayed as too invasive. After all, if we can’t satisfy the customer how can we expect them to continue shopping with us?

      Like

      1. It will be interesting to see the future implications have with the rise of virtual reality devices and the like. I am glad to see that legislation is being pursued as with laws they can tend to lag behind, as privacy and individual security becomes harder to protect in the modern age. Conversely, firms would be unwise to disrespect potential consumers in this respect as it could create negative engagement. Thanks for the response!

        Like

  2. Hi there,
    I enjoyed reading through this article. I was an avid Foursquare user myself, up until about a year ago. The term ‘checking-in’ seems pretty cool to let your friends know where you are. You might be in Paris so why not let your friends and family know about your whereabouts, right? Maybe post that cliche photo in front of the Eiffel on Instagram and such. But the creepy part is that, sometimes random strangers can identify where you are and do their bidding. Rebecca Drake, senior analyst at the National Center for Victims of Crime, said that apps such as Foursquare which require geo-tagging/ location-based technologies in order to function, “doesn’t cause stalking, it just makes stalking a lot easier”. In 2009, US Department of Justice analysed data and found out that about 25 percent of the 3.4 million who reported being victims of stalking during 2005-2006 said that they had been stalked by some form of cyber technology.

    That was in 2009! Now it’s 2016. The amount of people with handheld devices has increased rapidly. In the seminar, comparing mobile usage as % of Web Usage from May 2013 to May 2014, it clearly shows a drastic global increase, from 14% to 25%.

    On the question of other geo-tagging apps, Facebook uses it as much as other apps like Foursquare. Same theory applies. It’s rather scary knowing that the world can find you in a matter of seconds. But on the other hand, for authorities such as the police or FBI or CIA, this allows them to quickly find wanted individuals.

    I believe that geo-tagging is necessary but to some extent. With more tech-savvy people in this world today, that could either be bad or good for the society.

    Like

    1. Yeah checking-in is literally a glorified way of boasting to others!
      I won’t lie, I do it all the time to show off certain aspects of my life haha.

      I know… How creepy is it knowing someone can pinpoint you at a specific location at a specific time anywhere any place and it’s all from that little button you pushed.. :/ It is becoming a serious matter that us as individuals need to worry about and push for greater forms of privacy legislation to be put in place or we as a society might start seeing an increase in overall crime and kidnapping (various problems arise from geolocation).

      I believe government bodies should team up with major tech giants to work out and enforce an ethical procedure that respects the rights and privacy of all users while still helping aid those firms who thrive off continually gathering and understanding consumer information to better meet our wants and needs as consumers.

      Like

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