Outside the media: the geofenced future of advertising

Paul Raven @ 25-02-2010

Geolocation + smartphones + permission marketing – [old media channels] = ?

The campaign was created by Placecast, a location-based mobile ad company in San Francisco. It uses a practice called geo-fencing, which draws a virtual perimeter around a particular location. When someone steps into the geo-fenced area, a text message is sent, but only if consumers have opted in to receive messages.

[…]

Placecast created 1,000 geo-fences in and around New York, San Francisco, Seattle and Boston, cities where the North Face has many stores and areas that get a lot of snow or rain, so the company can tailor its messages to the weather. In urban areas, the fences are up to half a mile around stores, and in suburban areas they are up to a mile around stores.

Stowe Boyd reckons it’ll stick, and I’m inclined to agree.

It is going to be huge, especially with young people who text preferentially over talking on their phones. And of course, the retailers will pay for the messages.

And even better than come-ons like these will be the coupons. I am driving past the local Giant supermaket, and I get a text message with an attachment: 2 coupons for brands that I have registered at the Giant website. […]

But what Miller completely forgets to mention is that this is direct advertising, like direct mail was. This will end run the media companies who have made their bread and butter from advertising and coupons. If Domino’s can text me a code to get two pizzas half off today, why would the[y] advertise in the local paper?

If the future of advertising is direct and opt-in, through mobile devices to the consumer, the media lose the support of retail and local advertisers.

Yes, consumers still need to learn about PF Chiangs in the first place, but that is much more likely to be a direct experience, too, like going there with friends and then signing up for text-based promotions because it’s mentioned on the menu, or a friend uses a coupon or discount code.

The future of advertising is moving outside of media, and that’s another nail in the coffin for traditional print media.

And of course, there’ll be ways to game the locational ads system, too; step beyond the text message coupons and into mobile map apps, and suddenly there’s an incentive not to send you by the shortest route, but by the most lucrative – a brainwave courtesy of Jan Chipchase, caught in traffic in Virginia:

… the result I suspect of a sat-nav that decided that every possible road-works was a Point of Interest. Which might sound a bit far fetched today, until you consider that someone somewhere is drawing on ever more reams of data to serve up your your route – and someone else somewhere else is using every tool in their disposable to cajole individuals of interest past places ‘of interest’.

When the company pitching you advertising *also* calculates the most ‘efficient’ route to take from A to B you need to ask the criteria by wh[ich] efficiency is measured. And keep asking – the answer will likely change with the ebb and flow of financial results.

Of course, you could always turn off your phone, foregoing the navigational assistance in exchange for freedom from interstitial marketing. But then there’s a 93% chance that your route will be guessed by analysis of your previous movements, so you might as well leave it on and hope for a good open-source ad-blocker app…

… though this is almost certainly more worth worrying about than geolocational robbery crews.