A look at new location-based services and apps that reward and help people.
Most of us are active sharers of information with mobile and our social networks. We broadcast our pictures, thoughts, and locations to be viewed and consumed by all of our friends. As we continue to look at how both mobile and location-based services (LBS) affect our behaviors, what about the reverse of this model? What are we getting at an individual level as a result of this participation outside the normal sharing benefits? Let's look at three types of added benefits that marketers and developers are beginning to provide back to users who actively participate across social, mobile, and LBS sharing.
"Can You Help Me Find…"
Today you can easily access a lot of basic marketing information based on your location, but we're starting to see an upswing in what we'll call "secondary" marketing data that provides added benefits to the user.
A small but illustrative example is Powell's Books, an independent store in Portland. The store has created an iPhone app that provides customers with turn-by-turn in-store directions to the specific books they are looking for. It adds a utility dimension to LBS by not just routing to the nearest store, but replacing the in-store help of a kiosk or store associate.
While this is a great example of user-focused functionality, it's also important because it creates a marketing opportunity. Think of this model applied to big box and home improvement stores - it gives a very targeted messaging opportunity. Over time, we'll see expansion of these types of models, and several startups are already aggregating in-store map data. While the accuracy of GPS is not always reliable enough in dense urban areas to get to a specific product, there are great near-term opportunities, and it's important for marketers to continue to add dimensions as LBS evolves.
"I Got a Free Pair of Jeans…"
Think about all the virtual currencies out there - Facebook Credits, Kickbucks, FarmVille cash, Bitcoins, Microsoft Points, Delta SkyMiles. Virtual currencies have evolved over the years into a compelling incentive for marketers to drive loyalty through simple rewards for avid customers. Frequent flyer miles paved the way, and now these currencies are common in social networks, games, and apps. In some cases, they hold more value than real cash, while in others, they are rapidly turning into real cash. Virtual currencies are gaining a lot of attention, and this will only increase with platforms like Facebook Deals. Add location in the mix and it again means new marketing opportunities while providing a payoff to the user.
Take transactional advertising as an example - Shopkick is a mobile app that rewards shoppers with Kickbucks in exchange for performing different actions at a retailer: walking in, scanning products, and "liking" different goods and deals. These Kickbucks add up to big discounts on items at retailers like Best Buy, Target, and Crate & Barrel across the United States. Recently, Shopkick announced a partnership with The CW television network to reward Shopkick users with Kickbucks for audio-tagging commercials that air during CW shows. It's a win-win-win-win for Shopkick, the CW, the advertiser, and the user. Shopkick gets more users, the CW and advertisers know more people are watching their commercials, and the user gets more Kickbucks to spend at their favorite retailers.
"I Wish Someone Understood My Love of…"
Proximity adds an important layer to social networking. Applying mobile and LBS creates the chance for a spontaneous rendezvous with someone with a deeply shared interest. Think of it as behavioral and geo retargeting for friend finding. Users can be matched on a combination of content, topic, and now location. Numerous mobile applications are focusing on proximity-based social networking:
Marketers can take advantage of these new types of applications by helping their audience find others that share their passions. The key is to figure out what the audience would like to discuss or collaborate on with others. We're just beginning to see the potential of proximity-based social networks and will continue to see a lot of innovation here, both with independent apps as well as the large social platforms.
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For the past four years Jason Dempsey has lead Moxie's Technology department with his futuristic thinking and innovative ways. He is constantly pushing his team of 50 to challenge the conventional ways of thinking and develop unique and unprecedented programs and rich Internet applications for Moxie's clients. Being that he oversees the entire department, Dempsey works on all of Moxie's brands from Coca-Cola to 20th Century Fox to Verizon Wireless.
After graduating from Vanderbilt University, Dempsey began working for Accenture where he became immersed in the technology world. During his seven years there, he grew with the company and ultimately became an application project manager where he successfully managed project teams of 12 functional and technical resources through development, lifecycle, and delivery within budget on an aggressive timetable. He learned the ins and outs of the project management, business analysis, functional specifications, technical management, and implementation at Accenture. In 2004 he left to join Impact Innovations Group where Dempsey served as the IT optimization manager. His responsibilities included overseeing all areas of IT analysis and delivery for over $80 million franchise operations. After Impact Innovations, Dempsey went on to work for BellSouth Technology Group before joining Moxie Interactive in 2006.
Dempsey currently lives in Atlanta, GA.
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