NEW YORK – An executive from Ansible at the Mobile Media Summit explained that when using a location-based strategy, it is necessary to serve content that is valuable beyond a simple coupon.
During the session, "People and Places: Data, Location and Mobile," the executive detailed how mobile technology allows marketers a significant opportunity to reach consumers based on location data, which opens the door for greater accuracy. However, mobile users have the option whether or not they want to allow brands access to their location information and marketers need to give them a reason to want to permit them admission.
"It is not so much that consumers, and especially millennials and younger generations are saying they care about their privacy, it is more that they are aware of how valuable their data is and they want something in return," said JiYoung Kim, senior vice president of creative and strategy at Ansible. "So this concept of content in exchange for advertising is not relevant anymore.
"It is becoming obvious they want and will gain control over their media and advertising," she said. "So it less about the privacy concern, but more about establishing that value exchange price."
Consumers in control
Marketers are continually attempting to straddle the divide between creepy and accurate on mobile, as the technology now offers them much more data than ever before and to many consumers this can be intrusive. Those wishing to avoid the stigmatism of coming across as ‘stalking,’ need to reward consumers who allow access to their location information.
Consumers are now in control of how they want to interact with brands and how they want to be advertised to. It is imperative to develop marketing strategies in which users are enticed by, rather than forcing advertising upon them.
Ms. Kim mentioned that loyalty programs are one tactic in rewarding users to allow them access. These programs have stood the test of time as a significant marketing tool and are making the transition into the modern age with mobile.
Mobile is replacing the VIP card for consumers shopping at retailer bricks-and-mortar locations, as the untethered technology allows for an effective in-store endeavor. Bringing location into this makes sense and consumers will benefit from permitting retailers to their location.
"I think it is a step further than just mobile coupons, but loyalty programs have been around forever,” Ms. Kim said. “Everyone here has a loyalty card in their wallet or on their phone.
“We understand the concept of it and when done right consumers will say yes absolutely."
During another session, “Location Targeting: Why Experience is the New Channel,” CEO of Skyhook WirelessJim Crowley mentioned that brands need to explain to users why they want to turn on location services. When receiving generic messages on mobile requesting location information, a wide range of consumers will decline.
However, Mr. Crowley believes that if marketers tailor these messages to explain what users will get out of clicking yes, brands will be much more successful and gaining permission to the location information.
There is also a substantial difference between millennials and older demographics in terms of feelings towards location data. Young consumers have grown up in an age in which technology that leverages location is common, but older demographics are not used to this notion.
Mobile applications such as Snapchat create an experience, in which a consumer’s location information is access daily through playful and exciting features such as GeoFilters.
“I think you are also going to have a generational shift in terms of providing information,” said said Jeff Malmad, managing director of mobile at Mindshare. “For example I watch my daughter with Snapchat when we are in the car driving, she is taking selfies in the back.
“If I am driving to a soccer game for my son, which is ten towns away she is on her phone saying I’m in this zip code,” he said. “You can use these different filters, and she understands a different experience with being unlocked through different types of filters.
“From a geo fencing standpoint, they get that.”