Location Based Services
Local advertising with precision
We have already written a lot about smart POS this year. For us, POS is the future: an innovative way of networking with current and prospective customers. This means on the one hand in the store – for which we see Bluetooth as the most suitable technology – and on the other hand in front of the store or at other relevant points – which is where location-based technologies come in handy.
How do location based technologies work?
Location based services (LBS) provide us with relevant information and helpful services just at the moment when we need them – and exactly where we are.
For advertisers, this results in a large number of possibilities to reach the target group exactly at the right place and time, by means of location based advertising.
Location based advertising (LBA) is defined as an advertising format that is delivered to users on their mobile devices depending on their whereabouts. The location can be ascertained by means of a manual indication by the user or by means of technical measurements (i.e. IP, GPS). LBA can be used both for display and performance purposes, as well as for search, messaging, social, and other formats.
With the help of location based services, it’s possible to advertise:
- In the store
- In front of the store
- In front of competitors’ stores
- On the way to the store
- In the customer’s home
- Nearby relevant billboards or city lights displays.
Those people who are known to advertisers are primarily registered users. Companies can reach these individuals through a customer app. An example: Lisa is a loyal customer at a shop. When she walks past the shop near her workplace, she receives a message on her smartphone telling her that she can receive 10% off her purchase today and tomorrow.
People who do not have this app can instead be targeted via an advertising banner, for instance displayed in a news app already installed on their phone.
Location plays an essential role. In the examples described above, areas around the company's branches are "marked". Once a person is in these areas, they will first receive a push message through the app; then, a banner ad will be shown on the respective page. This makes it possible to play an advertisement when on a particular street or in the vicinity of a defined point (i.e. a retailer’s own store or a competing store).
Possible applications include:
- When a customer enters a competitor’s store, they can be pointed specifically to another retailer’s cheaper offer, available in the neighbouring street or online.
- Service providers, such as hotels, can offer their guests additional services depending on the time and location of their arrival.
- At events, visitors can be made aware of the goods and service offered.
What do we think about location based services?
We think location based services are a highly interesting technology. In our experience in this field, customer relationship management (CRM) perspectives have often proven more helpful than a pure advertising perspective. Location based services can be used for short-term actions. Once the technology is installed, however, it's available 24 hours a day, 365 days a year. It thus remains of on-going, permanent use.
For this reason, companies must ask themselves which pages/apps are relevant to their target group. Users will only see the advertisement when they are active on these pages/apps.
Advertisers can use advertising in their own shops, as well as near those of competing shops. Every activity of the consumer – which can range from a shopping transaction to an online search, voucher use, or delivery subscription – can be analysed and assigned to the defined location at the end of the day.
IQ mobile presents optimised location based services
If you use location based services, you have to take into account that all persons within a specific geographic zone are addressed – meaning the POS/POI spans a large area.
This has, on the one hand, the advantage of a large range. On the other hand, it leads to inaccuracies in targeting and results in scatter losses.
Thanks to the new Blueprints® and Footprints® technologies by Groundtruth® – an exclusive IQ mobile partner in AT, CH, and DE – this is changing. From now on, it will be possible to precisely recognise building floor plans (Blueprints®) allowing for more precise and selective targeting.
The Blueprints® are supplemented by profile data and behavioural patterns (Footprints®) in order to achieve the best possible targeting of precise groups with the least scatter loss.
More information available Anyone who wants to know more on the subject of location based services and their possibilities can find details in our whitepaper. With more than 150 downloads, the whitepaper's current relevancy is clear! https://www.iq-mobile.at/en/whitepaper-location-based-advertising/
Those who are interested in new solutions for the retail trade will find this blog of interest (https://www.iq-mobile.at/en/blog/new-methods-in-retail/) while those who want to explore the topic of beacons can find a comprehensive analysis in another dedicated whitepaper: https://www.iq-mobile.at/en/blog/beacons-boosting-pos-power/