The Weather Network and Fido share secrets to successful location-based advertising

Location-based services (LBS) have been have plagued by device fragmentation, privacy concerns and screen sizes too small for optimal map views. But that isn't stopping companies like The Weather Network and Fido from tapping into the potential of SMS to build customer loyalty and new revenue streams, delegates learned at this week's Canadian Marketing Association's Mobile Marketing conference in Toronto. "Some of the key trends to watch out for are in location-based services," said Dré Labre, creative director at Tribal DDB. "Pull automation and push automation offer a lot of potential." The popularity of GPS-enabled mobile devices is one of the key factors that will pave new roads for mobile marketing. With pull automation, people will be able to opt in to receive notifications, for example, of when consumers are passing their favorite stores with discounted offers. Push automation seems to offer the potential for even greater dividends for marketers. "The data will find you without you even doing anything," Labre explained. "If you have a to-do list on your phone, with a stop to pick up milk, as you pass the grocery store on your way home from work, you could receive a reminder." Customized offers and branded coupons that coincide with these reminders don't seem too far off. Labre concedes "we're not quite there yet," but marketers are finding innovative ways to use both mobile and physical locations in their campaigns. In December, for example, The Weather Network (Pelmorex Media Inc.) launched a cross-platform marketing program with Vicks Puffs. While the campaign includes web banner ads and TV spots, the mobile flu alerts showcase a unique take on both relevant content and branded messages. Each week, consumers who sign up for mobile alerts receive a message indicating the flu conditions in their geographic area. "For Toronto, for example, the alert may say that the conditions are high for flu, and for more information users could follow the link. The link would direct people to a mobile site - or jump page - which would have flu prevention pointers and an integrated link for Vicks Puffs," Pelmorex's Mark Thompson, wireless director, tells Tech Media Reports. "The flu alert was the first product we created with an advertiser. All the other products we currently offer through SMS are consumer products that could be sponsored, but they are products designed to meet a consumer need." Pelmorex is well positioned to capitalize on the growing demand for useful, real-time information on wireless devices and marketers' desire to reach consumers everywhere. It is already sending subscribers event-triggered messages. If a winter storm warning is issued by Environment Canada for a users' particular area, messages will be sent until the warning or watch is lifted. There are more than 30,000 subscribers, and over 450,000 SMS were sent in January alone. Currently these messages are offered as a consumer service without sponsorship, however the potential for advertising messages for snow tires, auto care or vacation destinations is significant. Fido focusing on events While Pelmorex is offering consumers informative, geographically relevant messages, Fido has set its sites on geographically relevant entertainment. Fido's summer/fall "sessions" campaign illustrates the power of a multi-faceted marketing approach, incorporating SMS, event, in-store, web and attractions guaranteed to generate significant word of mouth traffic. Last summer Fido launched a series of proprietary events aimed at attracting young Toronto urbanites, starting first with an unbranded SMS campaign. Participants were invited to an exclusive art show to meet with the artist, via SMS. Bos Toronto's Chad Borlase, who worked closely on the campaign, admits there were skeptics, noting that "young urbanites don't trust brands." But the gamble paid off. The first of four events saw 250 people lined up outside of the gallery an hour before it opened. Once inside, attendees were greeted by not only a free art book, but also Fido promotional materials and promotions for future events. The art campaign, which included street art attractions, Facebook groups, WAP and IVR messages for updates, attracted 880 unique text opt-ins-- with only a 7% opt-out rate - and an estimated online reach of 815,000. The follow-up "Jet sessions", which culminated in an exclusive concert in a Porter Air hanger, attracted 2,200 unique text opt-ins, with a 50% redemption rate at the event. Perhaps most impressive is the in-store traffic the campaign generated. Approximately 4% of users went to Fido stores to find hidden text codes and hints about the concert. Users would text in the code while in the store and receive immediate messages about in-store discounts and promotions. "It really was a great way for us to engage with the consumer and create an emotional relationship," said Fido's Sébastien Moïse. Smart phone applications are also empowering companies with the tools to foster greater trust with consumers. The Weather Network/ Météomédia launched their free Eyeweather application for iPhones in October. Since then, they've received 26.9 million page views, with 173,885 active users in January alone. Their application, Thompson says, is always evolving. "We actually changed the application based on iTunes reviews and fixed the product to better meet consumers' needs," he notes. "Some people hate the ads (on the application), others don't mind. But if you offer value to the consumer, they tend to be okay with advertising." Labre calls Pelmorex's application "the best executed. It really is the one that looks like others should," and views applications as one of the big emerging trends in advertising. "I think we'll start to see more layering services," Labre told the conference. "Where Google maps and The Weather Network combine to give you walking directions, for example, that are sheltered when its raining outside. "We're only scratching the surface," he added. "The technology has yet to mature, but we are making headway. But marketers need to make R&D (research and development) investments. It's not typical for marketers, but it's something to consider. We're competing with basement developers who are developing applications for the love of it. Brands need to emulate this."

The Weather Network and Fido share secrets to successful location-based advertising

Broadcast | February 12, 2009

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