Magazine article Marketing

O2 Adds More Brands to Location-Based Ad Tool

Magazine article Marketing

O2 Adds More Brands to Location-Based Ad Tool

Article excerpt

Diageo and Domino's Pizza are the latest brands to sign up to using O2's mobile marketing tool to run highly targeted, location-based ad campaigns.

O2 launched the mobile tool last week, announcing that Starbucks and L'Oreal would be the first two brands involved. It added that it had a 'long list' of other brands signed up, including retailers and music events.

The ads work by using 'geo-fencing' technology to pinpoint the location of customers, triggering an ad to be sent to them via SMS or MMS Customers have to opt in to use the service and give profile information, which enables the ads sent to be tightly targeted.

Retailer and food chain brands are expected to be the biggest users of the service because they have a physical location and should be able to influence the choices of consumers while they are outside the home, encouraging them to enter stores or restaurants.

The technology differs from current geo-location marketing tools such as Facebook Places and Foursquare because it does not require the use of GPS-enabled handsets in order to connect to customers. This means that it can reach a wider demographic of consumers.

Shaun Gregory, managing director of O2, said the tool should be effective because the operator has an 'actively engaged and well-profiled audience'. He added that it is part of the company's strategy to integrate developments in mobile technology with its wider media business.

In February, rival network Orange launched a mobile ad service called 'Orange shots', which allows brands to send targeted ads to those customers on its pay-as-you-go Monkey tariff. …

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