Put location into context – now add imagination

Alex Leslie - 09/01/12

Mobile advertising succeeds when location and context come together to create compelling information that foster relationships.

Mobile telcos know where you are. If you are in a city, it is probable that your location is known exactly, through cross-referencing multiple location data. This does not sound hugely exciting, in fact it sounds slightly scary.

Location in itself is not the key to compelling advertising.

Now imagine that you are in your car on the Freeway, heading into town for an important meeting. Without prompting, your phone beeps and it tells you that there is a smash on the Interstate ahead, take I92 and get into town via the next road over. You change direction. Next your phone asks whether you need to park when you are in town, there are spaces at two downtown car parks and your phone can pre-book.

Telcos, if they use patterns in multiple SIM movements can tell that traffic is slowing down. They can then alert the police and provide options for their customers either in the jam or those heading for it. After that, it is down to the creative guys to figure out exactly what to offer. In this example, advice on a different route would be welcome, discounts on satnavs probably less.

As they do with airports, telcos can ‘geo-fence’ an area. They know which of their SIM cards is approaching a festival site or a ball game. The likelihood is that those customers are heading for that specific event. Those creative guys can now get to work, offering seat bookings at nearby restaurants, car parking options, deals on downloads related to the event, all potentially based on your usage profile.

Clever stuff – and here already.

YouTube’s ‘channels’ provides the start of something huge for advertisers. The nature of the channels means that advertisers will be able to target those people who sign up to the moose hunting channel, the Michael Buble channel or the telecom channel. Targetted, segmented, advertising is here.

Meanwhile Facebook is toying with another idea, along the same lines. Right now Facebook is charging per impression but is experimenting with advertising per action. Facebook’s idea is to offer advertisers the option whereby they will ‘encourage users’ to ‘like’ your company or download your app. Then they could charge a serious premium.

This means two things. Context based advertising is here and will develop hugely and entertainingly in the next few years. It also means that Facebook and Google – who have set up a team to help mobile advertisers maximize the experience – will make the Clash of the Titans look like a minor squabble in the not too distant future.