Specialized Savings Vouchers Something Out of Futuristic Movies Available on O2

O2 will be the first to bring a new GPS based mobile phone marketing to Britain.

O2 will be the first to bring a new GPS based mobile phone marketing to Britain.

Opt in to a new specialized advertising and you’ll be getting coupons through your mobile phone that you probably would be very likely to use considering the store would be right in front of you. It is a program that is reminiscent of futuristic Hollywood movies where a character walks by a store and the store itself offers information to them of sales on their favorite items or coupons for purchases. It’s now a reality with a new mobile phone GPS based advertising system that will target you as you go by a store and give you an electronic coupon that can be used at the store. For example, as you pass a food, coffee, or bookstore you could get a coupon for that particular brand store for a discount on a meal, cup of coffee or a new best seller book. It is also possible for you to receive a discount coupon for an item as you pass it inside a store.

The first mobile phone company in Britain to offer the trial service will be O2. It seems consumers are excited about trying out the new trial service since more than one million customers have signed on to reap the benefits. Companies are signing on too with those such as Starbucks and L’Oreal anxious to give it a try.

The new advertising using GPS mobile networks is called “ping marketing”. The company bringing the marketing to the mobile companies is California based Placecast. Placecast has partnered with Spanish owned O2 to offer the service in Britain.

Placecast has offered information that of those using the service 65% made a purchase when they received an electronic voucher. Also, 60% of US participants found the location based messages to be “cool and innovative” and do not find the messages to fit into the category of spam advertising.

The system uses what they call a “geo fence” or area within a particular distance of an advertiser’s location or product space to trigger a “ping” to the mobile phone to distribute the specialized voucher. When signing up for the program the user can list their age, sex, and interests so coupons can be very specific to the consumer’s interests and will more likely stimulate a purchase.

Shaun Gregory, O2 Media Managing Director, said: “The growth of location-based services will create a golden age for proximity marketing.

“It fuels a growing expectation among consumers for personalized advertising via their mobile phones that is directly relevant to their passions.

“The market potential here is huge – it has already had massive success in the USA – and this is another nail in the coffin of the old model of reaching mass audiences in one go.”

Comments & Debate

  1. October 16, 2010 at 10:10 am Donald Commented:

    I am a retailer and whilst this is cool – without the redemption capability in the store I am just giving away free stuff. Why would I do this and not just use the traditional coupon affiliates.

    Sorry if I have missed the point. If my offer is compelling enough they should come into store anyway. I dont think this has been thought through correctly.


  2. October 17, 2010 at 10:24 am Stephen Rothwell Commented:

    Great service – well done O2

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