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Targeted Advertising Using Location Based Smartphone Market Research

“Do you recall back in 2010 when Steve Job’s said, ‘Mobile advertising sucks‘? Well, times have changed!”

Remember driving down the highway and seeing billboards that didn’t make anysense? Why would someone in your particular demographic, a twenty-nine year oldvegan, need to know where the closest KFC was located? While reeling withanger, you pick up your smartphone to post your outrage on Facebook. After yourrant, you notice an ad containing a coupon for a vegan sandwich shop off thenext exit. Marketers have cleverly used data stored in your smartphone apps tocraft an advertising message to you.

Notice the surrounding businesses the next time you are playing Angry Birdswhile waiting for the Metro. If an ad for 7-11 pops up, there is a good chanceyou are in close proximity to one of the convenience marts. According to 7-11spokeswoman MargaretChabris, market research discovered that 7-11 customers relied heavily ontheir smartphones to make decisions about where to eat and what to drinkthroughout the day. By advertising through mobile games, 7-11 was able toshowcase their variety of soft drinks and fresh food options to people on thego.

Cell phone companies have revolutionized the way advertisers use games andrich media to send messages to people. Because of the way our brains work, wecan effectively multi-task and perform several cognitive functions at the sametime. YouTube videos contain pop-up advertisements that do not obstruct theflow of the video. The 4Gphone Samsung Exhibit comes preloaded with some of the most popular gameswhich contain advertisements as the player navigates around the screen.

Daily deal website Groupon is set to release a new service called Groupon Now.The service will run beta in Chicago and offer iPad users exclusive dealsaround the city for particular businesses. This service will allowestablishments to pick up business during slow periods and gain attention fornew arrivals and other special events. By targeting people who are in close byor surrounding areas, Groupon Now will be able to attract more foot traffic forrestaurants in times they thought impossible before.

Google has stepped up its already dominant presence in advertising byintroducing a service called Google Wallet. Users can store their credit cardinformation into an app and use their smartphones to check out at stores. Bytracking where consumers are spending money, Google can tailor advertisementsmore specifically towards user’s purchases.

Location based mobile advertising is the next step in the evolutionaryprocess of targeting to consumers. It is around to stay, so trying to opt outof it by providing false information will garner advertisements not directedtoward you. Audiences are sort of held captive unless they do not ownsmartphones; a sort of catch-22, but perfectly acceptable because of the age ofFacebook, Twitter, and the age of free expression.

With the advent of GPS based technology we may be seeing the twilight of theage of bad advertising.

“What do you think about the innovations in mobile advertising? Please leave your comments below!”



Sean Copeland is a certified marketing research professional (CMRP) known for his broad knowledge of the research workflow, his disruptive approach to problem solving and for building strong client relationships. In over 5 years Sean has developed, sold, executed, and managed hundreds of consumer research studies using a variety of new and traditional research methodologies.

Contact Sean Copeland:

T: 647-269-5085

E: sean@abacusdata.ca

W: http://www.abacusdata.ca

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