When it comes to location-based marketing and proximity-marketing, more often than not, marketers seem fascinated by the beacon technology.
With 82% of shoppers making their actual purchasing decision in-aisle, it’s no wonder that vendors are betting on beacons and indoor positioning systems to help marketers interact with consumers in real time.
A year ago, Forrester warned of the hype around beacons. Despite huge interest and numerous successful pilots, we have yet to see very many successful commercial rollouts. This is not so much about the technology (even though battery life and operational deployments raise technology issue), but primarily because reach is limited today and because few marketers can deliver smart contextual messages at scale. They must also define engagement scenarios and automated rules to deliver relevant messages to individual customers.
Location data alone is dumb. Sending someone a coupon to redeem in a nearby store just because they’re passing by isn’t enough. For ads and messages to be relevant, firms must combine location data with insights like past behaviors, preferences, needs, and situations. It is also likely they will have to combine multiple technologies to reduce the complexity of in-store operational deployments and boost the accuracy of location data.
There are many more opportunities than just pushing marketing messages in real-time. Using location data is more important than just capturing the attention of nearby smartphone owners — it’s about powering contextual marketing.
In particular, marketers should fuel contextual marketing with location data to:
Increase brand preference by delivering personalized experiences
Improve the customer experience on location
Advertise more efficiently
Unlock audience targeting and offer intention data
Much has been written about Google’s foray into the wireless service provider arena. Now Google has announced its push into this market with its Project Fi offering, which is based on the mobile virtual network operator (MVNO) business model.
There is nothing revolutionary about Google’s wireless offering. Rather than acting as a market disruptor, Google has opted to enter the wireless market by launching a package similar to the one that Republic Wireless has provided in the US since 2011. So why should anyone pay attention to Google Fi? Because Google is a very large and powerful player in the mobile market. My main observations are that Fi is:
Unlikely to disrupt pricing in the US wireless market significantly. Google Fi's pricing is a fixed $20 unlimited talk/text plan plus $10 per GB of data, plus tax; a 3GB data package will cost users about $55 per month. Interestingly, users don't pay for data that they don't use, and many Fi users will not use their full data packages: For instance, the average Republic Wireless user pays only $7.50 to $8 per month for data. Still, for penny pinchers, pure Wi-Fi plans are much cheaper. The most attractive part of the deal is the roaming aspect – but only for overseas travelers.