In the event management field proximity targeting is quickly being utilized to offer more comprehensive sponsorship packages. The popularity of SMS proximity targeting is due in part to its higher demographics capture rate, in turn offering a higher ROI then traditional promotional mixes. In analyzing Bluetooth or proximity targeting I will apply it to a point of purchase promotions event. My artifact will be a sample SMS graphic based message that could be applied in a point of purchase proximity marketing campaign. For this campaign I will use a POP-now event kiosk and Pepsi event as my hypothetical case study.
The basic function of proximity marketing is to target mobile phones and web 2.0 browsers at a certain physical location. In my example I will be using point of purchase locations such as Wal-Mart as regions to target and capture brand demographics. “Proximity marketing is a means by which brands can deliver branded content to the mobile phones of their target audience based on individual’s proximity to a location like Bluetooth and infrared (Haines,23, Journal of Sponsorship).” This idea of capturing your consumer at the point of purchase increases chances of selling a good, and follow up with the consumer about their experience. It is important to recognize the role the web 2.0 and mobile advertising revolution plays on this process. It essentially creates the sub culture and demographic to advertise to. By targeting an online sub culture, in my example, online gamers, Bluetooth/SMS can be personalized to each demographic. The digital content offers consumer choice in the advertisement and promotions they choose to part take in.
By utilizing SMS targeting at a point of purchase event consumer and brand value is created. The promotion itself offers consumer value, as well as the digital experience and coupons offered via Bluetooth/SMS. In today’s increasingly mobile web society Bluetooth/SMS marketing is an important one to understand.
Great user experiences are the cornerstone of engagement…Consumers who are having great experiences while immersed in a consumer community are harbingers of engagement. Whether they podcast, vblog, mblog, generate there own content, upload mphotos…really simple syndication it is all interactivity (Sharma,80, Mobile Advertising).
Capturing markets and follow up via the web increases brand equity and connects the consumers mind to a brand through a community and experience. It is what event sponsorship prides itself on doing, connecting an emotional experience with your supporting brand sponsors to increase consumer good will. Translating this into increased sales/brand usage.
The chart above illustrates a study conducted on measuring brand awareness created as a result of proximity marketing campaigns. It compares modernized economies. These numbers can be translated into the effectiveness of Bluetooth proximity targeting that can be utilized at point of purchase event sponsorship.
At a point of purchase gaming event hosted at a Wal-mart, Pepsi co, can achieve a successful proximity marketing campaign by integrating it with there gaming event (see 1a). This in store gaming promotion provides the excitement and brand interaction Pepsi wants to achieve, but it ends with the event. By utilizing Bluetooth/SMS at the proximity of the event they are able to continue brand communication into the future, thus increasing the value of the sponsorship.
1a) Pepsi gaming kiosk: Used for Gaming Promotional Events.
By capturing an online community, such as national gaming organization, they have a base audience to deliver a message too. By linking current branding efforts with their Mountain Dew brand to the World of Warcraft game. Pepsi can effectively capture male demographic of 15-25 year old gamers; A demographic that over 50 percent have mobile phone technologies (Adams, 88, Electric Tribes). Integrating Bluetooth/SMS technologies with a more traditional promotional event allows for the sponsorship to achieve a higher ROI, and measurement of the effectiveness of the event. The proximity targeting capabilities also allows Pepsi to create a network for future promotions and events to solidify brand loyalty.
This graphic based SMS illustrates the link to a promotional event and the follow up of the promotion activity via a web based promotion. Creates more consumer value then a one-time promotion.
Mobile advertising solutions like Bluetooth/SMS proximity targeting have great implications for the future of advertising. As consumer increasingly rely on the web and mobile technologies in there daily lives our privacy will be increasingly tested through new marketing practices. Implications of this targeting while new and cutting edge could soon become a consumer annoyance. It is an important technological issue to research in the coming months/years in advertising.
Adams, T., & Smith, S. A. (2008). Electronic tribes :The virtual worlds of geeks, gamers, shamans, and scammers (1st ed.) Austin: University of Texas Press.
Haines, E. (2008). Brand activation and ROI using bluetooth proximity marketing solutions in event sponsorship. Journal of Sponsorship, 2(1), 22-30.
Sharma, C., Herzog, J., & Melfi, V. (2008). Mobile advertising:Supercharge your brand in the exploding wireless market. Hoboken: John Wiley & Sons.
