Proximity Marketing – What Is This?

Many aspects of modern day-to-day life define the world we live in. Fast, direct and almost non-stop. It makes sense then for mobile and mobile advertising to cater to this pace and with location based advertising, marketers can now engage and alert customers on the go, during prime shopping hours and at the customers convenience. With this said then, is location-based advertising the future of proximity marketing?

The inception of Location Based Advertising itself immediately highlights a key aspect of our modern lives. Marketers want to reach customers around the clock, wherever they are, to tackle the fast-paced nature of our day-to-day living. Marketers want to target customers on the go when they are a convenient distance from a store or redeemable location for offers and they can now do this in two main ways. First marketers can utilise “pull” advertising where customers will actively seek information on their nearest available restaurant for example. Using location-tracking technology, their mobile device can bring up a list and a map of their nearest available restaurants and even refine the list based on time and culinary preferences.

This example highlights only the pull side of LBA however. Push advertising via LBA can be just as effective and still allows users to opt out of the alerts if they no longer wish to receive them. The push approach has been used recently by movie theatres via “geo-fencing” a proximity based virtual field that automatically sends alerts to devices within the specified domain once a user agrees to receiving the alerts. Movie theatres would send alerts allowing the user to opt in to receiving free movie samples when they passed the movie theatre. Highlighted here is the ability for LBA to engage customers as they are on the go and in a convenient vicinity to where they can redeem the specified offer.

A major part of LBA is its opt-in/out feature. Customers have the ability to agree to receiving alerts and how they receive them before they are delivered. This way, not only can customers control a level of security in their mobile use, but marketers can also learn a lot about customer behaviour through real-time market research. How a customer chooses to receive the advertisement, and what interests they specify to receive them about, plays a huge part in marketers understanding their audience. Through this research, marketers can then go on to focussing on what works and what doesn’t and from there, make informed decisions about how best to engage their specific target audiences most effectively and with optimal customer satisfaction.

Location Based Advertising offers the best of modern mobile capabilities. It acts on the principles of convenience, audience specificity, and relevance. These values coupled with its focus on customer satisfaction and security make it a marketers dream and thus, most certainly the future of Proximity Marketing.

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