Location Based Mobile Advertising (LBA)

I have always been interested in the mobile industry. Even more so after my internship with Y! in the mobile department. Recently, I have noticed an interesting news on opportunities for advertising hotspots in Singapore.

I would gather that it's roughly similar to wireless hotspots for internet - once you're in a certain area that has wireless infrastructure, you are able to log onto the internet.

And for location based advertising (LBA), when a shopper is in an area of a certain store, an sms would be sent to them alerting them of a certain promotion or offer of that store.

"When shoppers are within the advertisers' catchment areas, they are more likely to respond positively to their messages, it will appeal to a nation passionate about shopping and our customers will be the first to benefit from a variety of attractive offers and discounts exclusive to them through this new marketing channel."

I can totally imagine this working. Imagine I walk past Starbucks. Then I receive a sms for a promotion of a cup of coffee, say, "$2 off a small mocha if you show this sms to the nearest Starbucks outlet". Who would pass that offer up?

"Every marketer's dream is to reach the right consumer, at the right place, at the right time - the perfect marriage of effectiveness and efficiency."

Totally a dream come true.

And what's more, to every handphone user in Sg, the cost of a sms is negligible, so you can imagine people forwarding those smses to their friends, bringing word-of-mouth to another realm. Maybe they'll change the phrase to word-of-sms in future. Haha... just a random thought.

This new advertising system will commence in Nov in Singapore, and this was brought about by a partnership with M1 and SPH. LBA will soon be available to all M1 prepaid and postpaid customers.

This new advertising method is probably the only good thing that M1 has thought of. To think I was going to unsubscribe from M1 when I get back. Not now, when I can receive promotions on my handphone when other Singtel or Starhub users can't. =p (I know, they'll catch up soon if LBA is proven to be successful in Sg... well, till then)

**Source: Location Based Mobile Advertising Now a Reality

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