Location-Based Services: The Future of Advertising Indoors
Here’s how traditional indoor advertising works: your company decides to purchase ad space in a mall, restroom, or other indoor space. Then, you create an advertisement, knowing that it will be seen in that particular location you have purchased. The ad is tailored for the location first, and then for the audience you expect to be at that location. This has worked great in the past, but with Location-Based Services on the rise, indoor advertising is moving in an exciting new direction.
LBS allows your business to target your main audience first, and the location second. There may be 200 people in a shopping mall at any one time, but not all of them are interested in your product. Your advertising budget is better spent on reaching the 50 people who are interested, than on annoying 200 people with something they don’t care about. With loyalty programs and other opt-in subscriptions, you can focus on building an audience, and with location-based services you can then send that audience offers based on their location.
What’s more is that LBS offers businesses the opportunity to “listen” to their audience in a way that has never been possible with traditional indoor advertising. By analyzing the data sent from beacons and GPS devices, your company can determine how effective an ad or offer was at drawing in customers. You can tell how long a customer spent in the store, and in what departments. You can keep track of how many customers enter a store after receiving an offer, and how many pass it by. All of this information helps to create even more effective, targeted advertising campaigns.
The total market size for location-based advertising is expected to be $55 billion by the year 2020. Major brands like Starbucks, Wells Fargo, and Coca Cola are already deeply involved in proximity marketing. It’s clear that this is not just a here-today-gone-tomorrow marketing fad. Location-based marketing is the future of indoor advertising. Are you ready to join the revolution?