Business, Entertainment

The Shift in Advertising: LBS Steals the Show

What I can’t understand, is why some obvious things that have been written in many books for many years, and spoken in hundreds of conferences worldwide – happen so slowly. Is it due to traditional thinking of marketing agencies, which see "Communities Dominate" approach as dangerous precedent and try to keep things as controlled as possible? The fact of the matter is that there is not a lot of marketing executives that can take full advantage of 21st century resources that start with "social", "community", "mobile", "location-based" and "compute".

Those who read my books know that since my second book M-Profits in 2002, I have been pushing the idea of the events-based ads, in the ‘Madonna plays at Wembley Stadium’ story, explaining why this is superbly good for the artist, the venue, the networks, the consumers and the record labels. And yet, here we are in 2010, and up to now, we had no public references of anyone trying it [actually some had done it, but the story was not in the public domain so far]. Here is finally the evidence it works.

The idea briefly – location-based ad [yes, majority of LBS ads are utter failures but THIS one is the exception to prove the rule] which is served when you are at the big rock concert venue or sporting venue or whatever is happening at the big stadium. And if that is truly relevant – i.e. if you are attending Madonna’s concert and its Madonna who actually is sending the mobile ad to you, inviting you to join her free fan club on mobile phones – then obviously yes, we will love them.

Now the evidence is out. O2 Arenas, which operate more than a dozen venues in Europe [such as O2 in London, formerly known as the Millennium Dome, O2 World in Berlin etc.], have been running location-based mobile ads. And they are now reporting performance. What do you think? Will it be as good as average campaigns on the web [i.e. about 0.2% click-through rates?] or is it as good as average campaigns on the mobile web [i.e. 2% click-through rates – i.e. ten times better than on the web]? No.

Its nearly as good as typical engagement marketing campaigns on mobile. Try this: 20% click-through rates! Yes! This is how location-based advertising was SUPPOSED to work. And we have the evidence. It is phenomenally successful. Now, when are Yankee Stadium and Wrigley Field and Madison Square Garden and Maple Leafs Garden and all the other big venues copying this idea? It’s awesome. Thank you O2 Arenas for believing in the concept and trying it [finally]. My only puzzlement, why did it take eight years for someone brave to try this?

20% click-through rates across a dozen venues…  This is the new era of mobile advertising, isn’t it?