O2 Launched Location-Based Text Ads with Placecast

O2 Launched Location-Based Text Ads with Placecast
Last week British wireless operator O2 launched a large-scale location-based mobile marketing program in the United Kingdom, allowing brands to reach consumers through SMS and MMS near the point of purchase. Starbucks and L’Oreal are the first brands to use the marketing program. Adidas, Land Rover, Autotrader, Barclayscard are also listed on the dedicated 02 website.

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.”

O2 has been registering customers since December 2009 on its website. These customers have given the wireless operator information about their age, gender and interests such as football, travel and cinema.

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.

Monday, October 18th 2010

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