AT&T has announced their new location-based advertising, the first of its kind in the US. AT&T Advanced Ad Solutions and Placecast today announced an agreement to provide ShopAlerts by AT&T, which are special offers delivered to consumers via their mobile phones when they are near a participating store or brand.
Fortunately, the trial is currently only available to customers who opt in to the new service, in New York, Los Angeles, Chicago, and San Francisco.
How ShopAlerts Works
The ShopAlerts service by AT&T will send consumers offers, rewards, and coupons based on their specific geographic location. These offers are triggered by a “geo-fence” (a virtual perimeter around a retail location), which is created by AT&T around an area or event via geographic location. Once triggered by going inside a geo-fence location, participants will then receive relevant marketing messages to their mobile devices.
Geo-fencing technology is not entirely new, but AT&T’s implementation is unique in its scale and integration with mobile advertising. By leveraging this technology, retailers can target potential customers who are physically near their stores, increasing the likelihood of immediate engagement and purchase. This method of advertising is particularly effective in driving foot traffic to brick-and-mortar stores, which is crucial in an era where online shopping is increasingly dominant.
Advertisers and Their Campaigns
Currently, advertisers on the service include: HP, Kmart, JetBlue, SC Johnson, Kibbles ‘n Bits, Nature’s Recipe, and the National Milk Mustache “got milk?” Campaign. These brands are leveraging the ShopAlerts service to deliver timely and relevant offers to consumers, enhancing their shopping experience and driving sales.
For example, a consumer walking near a Kmart store might receive a notification about a special discount on electronics, while a pet owner near a participating pet store could get a coupon for Kibbles ‘n Bits or Nature’s Recipe products. This level of personalization and immediacy is what sets location-based advertising apart from traditional advertising methods.
Katie Thompson, associate director of digital media at JetBlue, explains what it will mean for retailers:
“We were excited about the opportunity because it takes the onus off of the advertiser to build a large database of opt-in users that the true power of the technology can be harnessed,”
This sentiment highlights one of the key advantages of ShopAlerts: it simplifies the process for advertisers. Instead of investing significant resources into building and maintaining a database of potential customers, advertisers can rely on AT&T’s infrastructure to reach a highly targeted audience. This efficiency can lead to more effective marketing campaigns and better return on investment.
Moreover, the opt-in nature of the service ensures that consumers who receive these alerts are genuinely interested in receiving such offers, which can lead to higher engagement rates and customer satisfaction. As consumers become more accustomed to personalized marketing, services like ShopAlerts could become a standard component of retail marketing strategies.
In conclusion, AT&T’s ShopAlerts represents a significant advancement in location-based advertising. By combining geo-fencing technology with mobile marketing, AT&T is providing retailers with a powerful tool to engage customers in real-time. As the service expands and more consumers opt in, it has the potential to transform the way brands interact with their customers, making advertising more relevant and effective.
Via Engadget
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