Sparksheet’s Q&A with Melody Adhami at Dx3 Canada

Its been a full 3 weeks since Dx3 Canada wrapped up and the buzz around the event still remains. Although we miss all the excitement from participating, we’ve been thrilled to see all the takeaways from Canada’s first ever digital trade show.

One such takeaway? Custom mobile solutions are serving as a channel of engagement and communication between brands and their customers.

Watch Sparksheet, an award-winning multiplatform magazine, as they question Melody Adhami president and COO of Plastic Mobile, at Dx3 on the direction and successes of mobile commerce.

The mobile space has set the wheels in motion for its world domination…well, maybe not quite. But we’re getting there according to research firm Berg Insight, which reported this week that mobile is expected to grow from $3.4 billion in 2010 (at a compound annual growth rate of 37 percent) to $22.5 billion in 2016. Yikes! The report suggests that by 2016, mobile will account for 15.2 per cent of all global online advertising and marketing spending.

While mobile has been a bit of a nouveux trend until now, with some savvy and innovative agencies testing the waters, Berg Insight suggests that companies have begun changing their strategies to incorporate mobile into their annual ad plans as a key media component. Rickard Andersson, telecom analyst for Berg Insight, stated in the article from GIGAOM: “The popularity of smartphones and the increasing availability of mobile media that can include mobile advertising are the main game changers. Brands are now progressively embracing the mobile channel, including the entire range of apps from games and entertainment to utility applications.” He suspects that, while in-app ads have been the leaders in mobile marketing thus far, the advent of HTML5 brings traditional channels such as SMS as well as mobile web advertising, back on the table. He thinks that location-based advertising has the potential to unleash the full power of mobile advertising.

Location-based advertising is certainly having a hay-day in the world of mobile commerce, and should continue to be a driver of the mobile ad world. We second the emotion that it would be to a brand’s benefit to find new and innovative ways to employ mobile campaigns to enhance other advertising channels, and vice versa.

Location Based Mobile advertising is a form of advertising that targets consumers based on their geographic location and allows consumers to receive location- specific advertising on their mobile devices. The thought of knowing someone’s physical location is appealing to advertisers, but the more important thing is to understand the individual’s needs when creating a location based mobile ad.

In mobile marketing, it is important to clearly understand the context around someone’s location, and create ads based on not only where someone is, but also who he/she is.

What’s more important than a person’s location, is why he/she is there? What his/her needs are? Marketers must make sure that their offer contains real value for the customer and follow a strict opt-in policy that does not invade their privacy.

Value Added by Location Based Advertising
Imagine you are visiting New York City and are looking for a restaurant in a specific neighborhood. With the help of LBA, you can just use your mobile phone to connect to the dining related websites and browse according to your location and preferred cuisine, find out about promotions, discounts, and benefit from coupons.  LBA adds value for users in many ways since people almost always have their mobile phone with them and thus LBA provides marketers great reach to potential customers.

Location Based Advertising & Privacy Issues
Many people are concerned for their privacy and don’t want to be monitored without being aware of it; many are concerned about LBA and risks of being monitored, if they did not directly opt-in to receive it. Consumers can easily perceive LBA as a privacy invader or spam if done inappropriately. However, if marketer’s are up-front about their practices, give customers the option to opt-out through a simple termination process, assure them that their personal data would be safe and secure, and educate them of the benefits of LBA, people will be more accepting of them.

In today’s world, technology is moving so quickly, but laws about privacy have not yet caught up with this fast pace. People may choose to be anonymous; yet, in the mobile space, such a thing is not possible. Privacy means different things to different people; this is what advertisers need to base their work on in order to gain individual’s trust & run a successful location based mobile advertising.

So, what is privacy & what is privacy invasion?
Much of it is about common sense – giving users real choice and control over usage of their personal data. Respecting people’s privacy is allowing them to decide when, why and how their data may be used with simple, also to show them how LBA can assist them in their everyday life.

To respect people’s privacy, marketers should inform their consumers on how their information is being stored, secured, and used.  When establishing a sound LBA policy, not only consumer’s privacy & preferences should be taking care of, but also customers’ objective, goals, and emotions must be taken into account.
Location based mobile advertising, if abused, could damage the technology and its future in a very quick way.  Thus, for LBA to be successful it needs to be permission based, relevant, and timely.

Effective Location Based mobile advertising
If marketing messages are based solely on GPS coordinates, marketers sacrifice the true relevancy that the mobile medium can deliver.

Imagine two individuals, both on the same intersection; one visiting his/her grandchildren in the city for the first time & the other is a young business professional living right across the street. Although their physical location is identical, their needs and interests can vary greatly.

Therefore, it won’t be wise to send the same mobile ad to both of these individuals. So, for LBA to be effective, it should go beyond the notion of where someone is standing & get deep into individual’s needs & preferences to be able to add value for him/her; effective LBA allows customers to receive more relevant information, personalized message, and targeted offer.

Our takeaways
For marketers to gain customer’s trust, they need to take privacy matters very seriously.  They should handle customer’s data properly, confidentially, and securely & inform people of the benefits they’ll receive by sharing their data. People may be more willing to accept the risks of sharing their valuable personal data, if they can see the benefits they gain from it.
An effective Location based mobile advertising is one which respects individual privacy, gives customers control on how they receive ads, and is tailored & relevant to each individual’s needs.