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Bose pinpoints location-based advertising to build mobile presenceBy Lauren Johnson
The mobile banner ads are running in Accuweather.com’s mobile site. As consumers increasingly rely on their handsets to shop, more brands are banking on mobile advertising as a tactic to sell big-ticket items, such as televisions.
“I actually think consumers are becoming more and more comfortable making purchases like that from their smartphones, however it is rare that retailers want to think that,” said Mike DiMarco, director of media at FiddleFly, Columbia, MD.
“Most retailers’ main goal with mobile advertising at this point is still to drive traffic to their stores, and understandably so as it not only gives them a chance to capitalize on other purchases customers will make, but it also means they don’t have to put all of their eggs into a very young and untested technology’s basket,” he said.
Mr. DiMarco is not affiliated with Bose. He commented based on his expertise on the subject.
Bose did not respond to press inquiries.
Bose is encouraging click-throughs on its mobile advertising campaign with a box on the left side of the banner that shows how many miles away a Bose store is.
Copy for the ad features Bose’s logo and encourages consumers to visit a store location.
When tapped on, a mobile microsite is pulled up, which features a picture of a Bose’s VideoWave II entertainment system at the top of the page.
Underneath, a list of local Bose stores are sorted by distance. Each listing includes the store address, phone number and directions.
Additionally, consumers can click on the picture of the TV to check out the products on Bose’s mobile site.
However, the mobile Web click-through misses the mark by linking users to the homepage of Bose’s mobile site. Instead, Bose should have directed users to the exact product page of the TV system advertised.
The VideoWave II entertainment system includes a HDTV with a built-in home theater and music system. TVs are available in either 46 or 55-inch dimensions with a beginning retail price of $5,000.
Nowadays, there is a group of consumers who are buying everything from apparel, jewelry and home electronics from their handsets.
In fact, PayPal reported in December that its biggest mobile transaction for 2012 was a $48,000 bulldozer. Paypal’s largest mobile transaction in 2011 was a $40,000 purchase (see story).
That being said, there is still a substantial amount of mobile users who are wary of shopping through their mobile device, especially for a big-ticket item such as a TV.
Therefore using mobile advertising to drive traffic to bricks-and-mortar stores is a top use of the technology for retailers. Location is also a strong indicator of intent, which can be used by retailers to create contextually-relevant mobile campaigns.
“The whole goal of location-based marketing is to merge the physical world with the digital one to produce measurable results,” Mr. DiMarco said.
“Over time, retailers will have to learn how to not only become more and more targeted, but also find ways to make their marketing less intrusive and more engaging,” he said.
“Just because consumers will become more familiar with location-based mobile marketing doesn’t mean they will just accept it, it still needs to be useful more than it is annoying.”
Lauren Johnson is associate reporter on Mobile Commerce Daily, New York
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