Saturday, 3 July 2010

Pros & Cons of Location-based advertising (LBA)

Advantages of LBA: Reach, Relevance, and Results

  1. Reach specific targeted audience
    Marketers can create campaigns aimed at more specific age, gender, income, and lifestyle
    segments.

  2. Tailor-made information provided
    Gives consumers control on what, when, where, and how customers receive ads, more relevant information, personalized message, and targeted offer are provided to customers.

  3. Widely application
    It not only used principally for advertising, but also doubled as a means of researching consumers. Consumers are constantly providing information on their behavior through mobile internet activity.


Limitation of of LBA: Privacy and Perception of Spam

  1. Concerned for privacy
    Many consumers are concerned for their privacy and risk of being monitored without being aware of it.

  2. Perceived as a spam
    Consumers can easily perceive LBA as spam if done inappropriately. Spam is what the consumer perceives as an unwanted marketing or message they did not directly opt-in to receive.


Source:
http://en.wikipedia.org/wiki/Location-based_advertising