Mobile Location-Technology: Will it Increase Opt-Ins?
The assigned article “Improving location tech will get more opt-in”, by Chris Harnick, addressed the advertiser-side of location tech for mobile advertising.
The idea of a coupon stalking me as I walk through my day is still disconcerting to me, despite the Market trials cited by Martin Fuerstein, that indicated “once they experienced the tangible benefits of a relevant service, they became comfortable with loosening privacy settings.”
The idea that a mobile operator will have a tighter radius on me with a 4G deployment is even creepier. I am truly of the opt-in mindset. I cannot see myself walking through an open air market and having my phone constantly go off: Pass Starbucks, $1 off a Latte; next store is a Subway five feet away and I get free chips and a soda with the purchase of a foot long. Turn the corner and as I walk past Nine West, I get 20% off a purchase of the newest summer sandals and as I approach Barnes & Noble I get a coupon for 40% off one of the newest releases in stock.
NO THANK YOU!!! I already have a tough time dealing with my phone, but if the Coupon Stalkarati become that big of a nuisance, I will probably leave it in the car!
In addition, last week I did cite in my blog post that Virgin Mobile USA has a plan called Sugar Mama that allows mobile subscribers to earn free airtime by participating in online surveys and interactive commercials. Involving your brand in such an event would be a great way to create awareness. However, if it extended to shoving coupons down my throat, I would definitely opt out!
I also disagree with Mr. Feuerstein’s statement that ““High-accuracy location in areas where consumers use their phones the most will provide the required context and relevance required for mobile marketing and advertising to succeed.” As I described in my rendition of the high accuracy location I was walking through above, I believe it could ultimately end up being more of a nuisance like TV commercials (where most of which get muted or walked away from by many people).
Mr. Feuerstein states, ““High-accuracy location technologies for dense urban and indoor areas do exist but wireless service providers have not deployed the same.” It is very possible that the mobile carriers have a valid reason for not deploying them until they get a better feel for THEIR customer and the customer’s reaction to such high-accuracy targeting. Obviously advertising revenues are important, but not as important to them as keeping their paying subscriber would be! Just ask Sprint.
I also disagree with his idea that consumers are not motivated to receive mobile location-based ads because they are not compensated well enough for doing so. There are very few businesses I would “opt-in” with for location based ads.
However, where the tipping point may be is with the under 25 age bracket – whose entire life is broadcast with little or no filtering across the net for anyone and everyone to share. Theirs is a new, brave world of open and full transparency, and they live it to the fullest. Give them great compensation and you have a market that will grow!
RURAL AREAS vs. URBAN AREAS:
As someone living in this rural area of 26,000 people, with urbanized zones throughout it, I would be less concerned with the feeling of having my privacy invaded here, than I would have when I lived in the Tampa Bay area of Florida with its population of over 2 Million people.
This makes it very interesting in how I see location based targeted advertising now. The scenario I laid out in my example above, was the exact path I took last month through the open air mall that is 9 miles north of my home.
Rural areas are underserved by the very nature of their small populations. However, they are truly a diamond in the rough for mobile advertising. Most folks in this area get “to town” about once a week. Their shopping is usually well planned out in advanced and very budgeted. As a result, they may be more susceptible to location-based mobile ads. Introducing them during peak buying times, like “back to school” would be an interesting proposition that I believe would drive opt-ins.
Sources:
http://www.mobilemarketer.com/cms/news/search/4989.html
http://www.mobiadnews.com/?p=3007
http://sharonodell.com/2010/07/16/mobile-global-reach-demographics/

