Location-based advertising has become one of the buzzwords for 2010. The industry is growing so quickly that ABI Research predicts spending will reach $1.8 billion in 2015. But how exactly will this spending take place? ABI Research’s new Location Based Marketing report has some answers.
The firm’s analysts say that there are currently 3 technologies making mobile advertising possible:
Marketers must take these technologies into account as they consider “the product or service, the region, the consumers, and the location accuracy required” in their campaigns.
At the same time, more consumers are being courted by services acting as intermediaries between them and marketers. These services include Loopt, Foursquare and Shopkick. Not every consumer is ready to give his or her privacy to get shopping rewards but ABI practice director Neil Strother believes the value exchange is compelling for retailers and consumers.
Strother advises retailers to begin the location-based ad strategy as follows:
- Establish marketing goals
- Analyze customers’ mobile and location habits
- Chose location partner(s)
- Executive the campaign
Strother also points out that the market is fragmented and retailers are experimenting to see what works. But the dollar volume projected by ABI Research shows this is a sector worth watching.[Source: Mobile Advertisers Forecast to Spend $1.8 Billion. ABIresearch.com. 2 Sept. 2010. Web. 15 Sept. 2010]