One electronics retailer is using location-based apps to up its advertising game.
The company hoped to increase mobile phone sales by targeting customers with expiring contracts. The chain wanted to communicate to people who had the same cellphone for 18 months or more. But how do you find such a narrow audience?
By examining anonymous data, the chain was able to identify users that had older phone models or operating systems. With this information, the retailer assumed that the minimum cellphone contract term had passed. They sent mobile ads to these phones along with a location banner that displayed a map of the nearest store.
An ad network spokesman said the engagement rate was twice the national average during the holiday shopping season.
The whole idea of a connected store is a brilliant marketing idea. By targeting people that are running older operating systems on their phone with ads for new devices, this is a great way for the retailer to get market share. This is the type of customized advertising that works in the age of information.
Source: ClickZ, March 2012