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Location-Based Text Message Ads Get a Major Boon

by Ranju Chaudhary on Aug.19, 2010, under Gadgets

Beginning today brands such as The North Face can reach 60% of all U.S. consumers with opt-in, location-based marketing SMS messages.

The extensive distribution possibilities are thanks to a strategic partnership between Placecast — makers of ShopAlerts — and Location Labs; the two companies have combined forces to tackle location-based mobile marketing.

ShopAlerts is a white-label product from Placecast designed to let brands send promotional notifications to customers based on their exact location. ShopAlerts uses geofencing mobile technology to send alerts when consumers enter digitally zoned areas.

With the partnership, Location Labs brings their carrier relationships to the table and extends the ShopAlerts service beyond smartphones — there’s no application download required as the opt-in and alert processes can be completed via SMS. For brands and marketers using ShopAlerts, the partnership means they can reach 180 million phones in the U.S.

The North Face is the first to retailer to benefit from Placecast’s partnership with Location Labs. The enhanced ShopAlerts technology lets them better target and reach mobile users with dynamically generated location-based SMS messages.

Here’s how it works: The North Face has created geo-fences around stores, hiking areas, parks and locales that are popular with its customers. When a consumer who has double-opted in to the company’s SMS alerts enters a geo-fenced area, he or she will receive a message appropriately tailored to their whereabouts and pre-defined interests.

The system is configured to make alerts dynamic and tailored to the customer, as well as limit the alerts to one per 48-hour period or three per week.

“If they’re near a store, customers may receive a message about a new item in the store. But, if they’re at Lake Tahoe, and they have noted that they are a biker, they might get a msg about a great biking trail. A different customer may receive a msg about a great swimming spot, based on their preferences,” according to a representative from Placecast.

Location-based mobile marketing is by no means a new idea, especially given the rise of digital loyalty programs and checkin-based rewards. With Facebook set to introduce its own location offering, it will be interesting to watch as retailers make choices around how and where to present location-aware offers to customers.

:: location-based apps, location-based marketing, MARKETING, Mobile 2.0, SMS, the north face

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