Location-based advertising and commerce – what lies on the road ahead?

By Tsipi Joseph

Location-based services (LBS) apps are evolving to answers a variety of users’ needs while on the go. Location is rapidly becoming one of the most important data points in marketing campaigns with advertising and commerce as an obvious focus. Today most major brands consider mobile as an integral part of their media channels, driven by the reach and interactivity of smartphones and their constantly-increasing user base. Therefore it’s only natural that the hype and usage around LBS, combined with the mobile advertising evolution, will drive monetisation of LBS, and will emerge as a key business model.

Location-based marketing is becoming a hot topic within the industry with experts predicting a boom. Brands and advertisers are still concerned over age, gender, and social characteristics, but with increasing focus on interacting locally with a progressively mobile generation of users.

Advertisers are realising that by targeting users in a specific location at a specific time with advertising tailored to the user’s specific search terms will result in a high ROI and drive to action. By making local offers available for users in locations where they are most relevant, users are more likely to take action and see these offers as a must in their enjoyment of the “here and now”, enhancing their experience of that particular place.

Location-based advertising and commerce are unique in their ability to literally “drive” or “walk” a user through the front door of an advertising business’ location. This is redefining the traditional location-based advertising revenue model which is fundamentally based on Cost-Per-Miles (CPM) with little emphasis on Cost-Per-Action (CPA). Advertisers are becoming more and more aware of the location component’s power to drive a user to the retail location. As such, CPA is on the rise and it is expected that advertisers will continue to pay more and more for CPAs that get their target audience to a specific location. The mobile advertising evolution with the location element added, offers a lot more contextualised, relevant and timely information, driving ROI up as well as the perception of the offers as a valuable service rather than a nuisance.

We expect location-based advertising and commerce to become more sophisticated, and targeted advertising to become an essential part of users’ daily exploration, navigation and connection with their local surroundings.

The proliferation of smartphones is single-handedly changing the way that consumers think and behave. Developers looking for better ways to monetize their offerings are constantly creating new platforms that allow advertisers and location based service providers to generate revenue from successful marketing campaigns and commercial offerings. At the same time users can enjoy highly personalised offers that are relevant to their location and their needs in real-time.

About the author

Tsipi Joseph is Director of Marketing at Telmap, an Intel company since 2011, is a world leader in mobile location-based services. Telmap provides mobile operators with cloud-based, managed location-based services that are fully designed to open new business opportunities and generate new revenue streams. Telmap is also providing the same service with its own branded mobile application called M8, your local mate. The company has established a solid reputation for providing its customers with innovative, value added end-to-end mobile location based services that enrich on-the-go experiences through integration of local content, community interactions, and relevant retail offers.


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