This article is the second issue on location-based services (LBS), after one published in November 2012 on LBS navigation, and zooms in on MNO-initiated location-based mobile advertising (LBMA) services.
Mobile advertising is one of the potential application of location-based services. LBMA services utilise location-tracking technologies to deliver targeted and localised advertisements (ads) to consumers. To deliver localised ads, LBMAs also use geofencing technology, which sets up virtual perimeters that detect incoming consumers within commercial establishments such as shopping malls and restaurants. This technology enables providers of LBMA services to proactively send notifications of special offers, deals or discounts to approaching users to motivate them to buy or avail such services.
Apart from illustrating the potential benefits of LBMA programmes for MNOs, it is also important to stress that the interest for mobile advertising is increasing exponentially as businesses look for alternative marketing channels that can significantly increase store traffic and sales. This growth in mobile advertising is largely driven by the increasing adoption and usage of mobile devices and content worldwide. This also indicates the transition of viable marketing channels from the tri-media (i.e. radio, TV and print ads) to mobile devices and advertisers and retailers are keen on maximising on this transition by ramping up their mobile advertisement campaigns.
MNOs typically offer messaging-based LBMAs, but mobile apps also emerging
MNOs edge against OTT LBMA providers: more granular consumer data for better targeted ads
Opportunities and threats for MNOs: Whatâ€™s in it for MNOs then?
Are there hurdles to overcome?
How should MNOs approach it?
Outlook: should MNO really pursue LBMA programmes?