Editorial Articles

Scott Gallacher of The Marketing Society Digital Network explains why, when it comes to mobile, location matters

"It's not where you're from, it's where you're at" Eric B & Rakim "I know you got soul."

Who would have thought that a 80's Hip Hop group, would have grasped a core principle of direct marketing so clearly, and one that is now driving the thinking of so many major brands around the new opportunities that mobile brings.

Almost 35 years ago CACI caused a stir in the marketing world by launching a revolutionary new modelling technique called geodemographics, still the foundation of many DM campaigns today. Arguably this was the start of the phenomenon that has since become location-based marketing. Of course its application has evolved significantly with the advent of digital, but the principle of creating closer connections based on customer location remain true, as we all know within our own lives where we are makes a big difference on what we are in mood to do. And it is this building block, alongside improved display ad platforms, that have been identified as the key drivers of mobile growth over the next 12 months. Unsurprisingly therefore pundits are already predicting that Cannes seminars will be awash with location-based examples.

If the figures that were released in March (mobile ad spend shoots up by 116% to hit £83 million in 2010) aren’t compelling enough, anecdotal evidence also shows that mobile is climbing its way up marketing directors’ agendas. The Marketing Society’s most recent President’s Digital Circle was dominated by mobile conversation, media agencies have gone on record saying that they no longer need to sell mobile internally, a big change from 2009 and guidelines are currently being drafted to help marketers adhere to best practice in this area.

This is quite a shift for a channel that in the 90s was blacklisted by marketers given the consumer backlash spawned by largely US-based SMS spam. The sea change is due to ever-evolving functionality of phones and the associated change in consumer usage of their mobile devices. Back when mobile was synonymous with a phone, consumers were very protective of their privacy. Usage was limited to one-on-one conversation making it a very personal medium. However, with the addition of camera, instant messaging, Bluetooth, internet – all the bells and whistles, the phone has become a more social device with people using it to conduct conversations with not just multiple people at once, but with people they don’t even know. Tablets have amplified this. We’re now far more open and happy to conduct our lives in public view. With this comes the acceptance of welcoming brands into our lives through our mobile devices when we’re on the move – so long as it is relevant and adds value to our lives - whether this is through an app that entertains us on our journey home or a GroupOn or FourSquare initiative that provides us with a money-off voucher.

The wealth of opportunity that this affords brands is mind-boggling and I predict that over the course of the next 12 months that we will see the consideration of location become a standard within all campaigns and innovating the way in which brands and consumers engage, so that this time next year the mobile marketing landscape will have evolved again. In such a fast-paced environment, the one thing that remains constant is the need for marketers to share and maximise the resources open to them such as their networks in a bid to amplify the value we continue to offer customers.
 

Scott Gallacher, Chair, The Marketing Society Digital Network

www.marketing-society.org