With the launch, O2 enables marketers to reach over one million opted-in consumers on their mobile phones when they are out and about. The service is powered by ShopAlerts, a product of Californian start-up 1020 Placecast.
Shaun Gregory, Managing Director of O2 Media, said: “The growth of location-based services will create a golden age for proximity marketing. It fuels a growing expectation among consumers for personalised advertising via their mobile phones that is directly relevant to their passions. The market potential here is huge - it has already had massive success in the USA - and this is another nail in the coffin of the old model of reaching mass audiences in one go.”
When opted-in customers are found to be within a geo-fenced area owned by Starbucks, those interested in food and drink receive an SMS offering them money off Starbucks VIA Ready Brew at a nearby branch. With L’Oréal, customers interested in beauty receive an SMS offering buy one get one free on L’Oréal Elvive hair care range at Superdrug.
Customers only receive a maximum of one SMS or MMS per day and they can opt out of the service at any time. The service is not available to customers aged under 16 years.