Why You Should Use Location-Based Marketing

Holly Richmond
Wednesday, Apr 06, 2011 at 6:00 AM



Last week, Mobile Marketer ran a piece with the compelling title “Location-based marketing can increase average order value, frequency, loyalty.” Whoa! With an argument like that, who wouldn’t want to use location-based marketing?


Author Dan Butcher begins, “[A]dding a location component to a campaign gives mobile marketers the opportunity to increase the relevancy of their messages and make them immediately actionable.” Butcher mentions how companies like Verizon and AT&T are warming up to location-based services. AT&T’s “ShopAlerts,” for example, gives users discounts when they get close to participating stores – and retailers can change the messaging based on current promotions.


“Location and granular geo-targeting are actually strong predictors of consumer intent,” Placecast CEO Alistair Goodman told Mobile Marketer (Placecast partnered with AT&T on “ShopAlerts”). “[A]dding location intelligence to mobile marketing dramatically increases performance by any measure.” Adding a nearby store’s address and promotion to a mobile banner ad can double clicks, Goodman said. “While 2010 was the year of apps, 2011 is clearly the year we see scale in location-based marketing programs.”


So you’re ready to incorporate location-based marketing? Tag can help! Just last month, we launched a real-time location feature so a single Tag can deliver different results to the user based on where s/he is. For example, a restaurant’s Tag could give the user a coupon if she’s actually in the restaurant, or directions to the nearest location if she isn’t. Shoppers like advertising that’s more relevant to them – and location-based marketing gives you a way to deliver just that.


Are you using location-based marketing already? Do you plan to? Keep it in mind when you think of ideas for using Tag. And please let us know what you're up to (and where!) in the comments below or on Tag’s Facebook or Twitter pages.


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