More than an over-hyped trend
Given all the current discussion around location-based mobile services as of late, one would be forgiven for thinking that the old real estate axiom "location, location, location" was auctioned off during the recent financial crisis and repurposed for a new breed of location-based service (also known as LBS) providers. These LBS providers utilize their users' mobile phones, equipped with GPS or other positioning technologies, to offer useful information about their area or the whereabouts of friends and family members. And, increasingly, they deliver real-time offers from businesses in the area. Due to their growing popularity with consumers and promise for real-time advertisement engagements, LBS providers are currently driving brand managers, advertising executives, and media analysts into a tizzy.
While on the surface it might appear that the current frenzy over LBS providers is yet another example of media types and techies over-hyping an emerging media platform, in actuality, what is occurring beneath the surface in the growing LBS market could have wide-ranging effects on media budgets in the not-so-distant future. Driven by the timely confluence of several key factors, location-based mobile services have the potential to bring consumers and marketers together more quickly and more cost effectively than most other media channels, successfully closing the loop on advertising campaigns via revenue-generating transactions.
Advertisers have reason to be excited about the prospects of location-based services. However, as with any other media channel, success will not simply happen by using it; the key is how you use it. This article will examine the current major players in this field, in conjunction with four issues I suggest you consider before jumping into location-based marketing.
