The consumer path-to-purchase is experiencing a fundamental change. Mobile devices are now a necessary part of purchases – on-device, online, and in-store. Nearly 86 million consumers will make a purchase on their device in 2016 as growing consumer confidence in the technology fuels the drive towards buying on smartphones and tablets.
In particular, location-aware apps represent a large and growing subset of the mobile application marketplace. These apps are changing the way we shop, travel, eat, and connect with each other by enabling a generation of consumers who are accustomed to instant service access at any time, from anywhere. Last year alone, by accessing users’ GPS locations Uber provided convenient transportation in 53 countries and Tinder matched 21 million local lovebirds every day.
As location becomes a standard part of consumer experiences like these, marketers looking to crack the world of m-commerce will need to provide tailored messaging and purchase opportunities that resonate with this location-aware population. It’s clear that the mobile channel has huge potential to drive traffic, influence sales and build customer engagement but only if it is treated with a reverence for relevance. Using precise and accurate location signals are key; why would you want to serve an ad for a fast food meal deal in Brighton if I’m a health conscious consumer and in central London? So where does the opportunity lie for marketers to extend the reach of their ad campaigns and provide the most relevant messaging to a particular consumer?
Mobile holds the power to supercharge offline ad campaigns in a number of ways. Not only can mobile be harnessed to push shoppers to the website and drive footfall into stores, but it can also help convert those vital bricks–and–mortar sales for retailers with a presence on the high street.
Delivering personalised and relevant messages is the best way to engage audiences when battling against shorter attention spans and enormous competition. Even so, just because you can target using a consumers’ location or proximity to your store, doesn’t necessarily mean that you should.
In order for marketers to deliver messages that truly resonate with their audience, they need to first ask themselves “what are my campaign objectives?”, “is there a location-based call to action in the ad I am sending?” and “what is the added value or incentive for a consumer?”
Brands like Adidas are able to engage with their mobile audience when they’re in the right frame of mind or context. If you are at a high-street sports store like Footlocker, the gym or a football match you will be more receptive to a message from Adidas inviting you to either purchase their sportswear or read their latest content. With this type of location knowledge, brands can incentivise or reward interested shoppers, while reinforcing Adidas’s high performance values in the minds of their “sporty” consumer. Engaging with a particular audience type at the right time and at the right place is more likely to generate positive results.
One thing is for sure – mobile is ringing the changes as location-based technology and services have the potential to boost sales from mobile across all channels (out of home, TV, mobile and social to name but a few.) Information about a customer’s position can be harnessed by marketers to deliver messaging that is more appropriate for their surroundings; offers, discounts or even directions to a local store.
These tactics drive footfall in store by effectively joining up the online-offline customer experience. For example, if Starbucks delivers an advert to my mobile as I walk in the vicinity of their shop, when I’m in need of an early morning caffeine boost, then I am far more likely to act on this impulse. In this way, mobile acts as the glue that enhances a customer experience by developing brand-customer connections in-store or out.
Sabrina Bailey-Navalon is EMEA marketing director at xAd
To find out more about the potential of location marketing, get in touch with the xAd team at contactus@xad.com
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