write:and Mobile Commerce TechnologyIT at Work 8.4Wireless Marketing and Advertising in ActionIndustry analysts expect advertising in the mobile channel to heat up. Increasing numbers of

and Mobile Commerce TechnologyIT at Work 8.4Wireless Marketing and Advertising in ActionIndustry analysts expect advertising in the mobile channel to heat up. Increasing numbers of smartphones
better browsers
enhanced GPS capabilities
and better ways of measuring advertising effec-tiveness are all factors powering this growth. The following are a few examples of wireless advertising in action.Location-Based Marketing Many apps that people use for shopping
and product/service reviews provide information useful to advertisers. In addition
many of these apps provide information about a userÕs GPS location while others employ a Òmobile check-inÓ strategy. As previ-ously discussed
many retailers are deploying in-store tracking with the use of apps. Advertisers can use this information to generate targeted in-app advertising messages
increasing the chances that the ads will lead to a purchase transaction.Foursquare.com was one of the most popular apps in the emerging field of mobile location-based marketing and mobile advertising. It used social media and gamification to encourage users to share their location through mobile check-in. However
now that many other apps and social media platforms offer similar features
Foursquare has become less popular. But the number of companies using location-based marketing continues to increase.Mobile Location-Based Marketing A marketing strategy that uses information from a mobile deviceÕs GPS or custom-erÕs mobile check-in on a social network to determine the con-tent of marketing communications they receive on the device (e.g.
special offers).Another location-based mobile marketing app is Shopkick. When the Shopkick app is activated
users receive points when they visit a participating retailer. Retailers use the app to encourage and reward specific kinds of shopper behavior. Shop- kick points are used to reward consumers for visiting specific locations in a store
purchasing products
scanning featured products
and even participating in brief surveys. Shoppers often receive targeted discounts and promotional offers when they are in a store. Shopkick users can trade in their points for restaurant vouchers
iTunes cards
or gift cards from participating retailers.Augmented Reality (AR) AR apps superimpose computer-generated graphic images on pictures of real things (e.g.
etc.). This technology can be used by advertisers in several ways. For instance
a mobile phone user might point his or her phone camera at an office building and activate an AR app that generates the logos of all food-service outlets (e.g.
McDonalds) inside the building. Furniture retailer IKEA offers shoppers an AR app that allows them to project images of its products onto pic-tures of the rooms in their homes so they can ÒvisualizeÓ how the products will look. Legos and Converse also use AR to help customers visualize their products. Industry experts expect that AR advertising will grow as smartphone users become more familiar with the concept (see Figure 8.6). You can find several interesting examples of AR applications on YouTube. Simply go to YouTube and enter Òaugmented realityÓ in the search engine.Mobile Search Almost 60% of all Internet searches are con-ducted from a mobile device
and over half of all Web traffic comes from mobile devices. As a result
Google and other Inter-net search engines now use the performance of a companyÕs mobile website as part of the criteria for ranking listing in search results. SEO specialists must now focus on a set of new factors for optimizing websites for mobile search to help com-panies maintain their status in search listings. Marketers need to think about context or how the things that people look for using a mobile device differ from the things they search for on a PC. For instance
88% of all searches with the phrase Ònear meÓ come from mobile devices. This should then shape the content used on a companyÕs mobile website to influence ranking by search engines and to provide the most useful information to consumers. Some companies
such as Yellow Pages
use loca-tion-based technology to create mobile directory apps that allow users to find services near their current location.IT at Work Questions1. Although the benefits of location-based apps for business are perhaps obvious
many previous attempts to get people to use apps that identify their location have met with limited results. Why do you think consumers are less enthusiastic about location apps and what would it take to prompt peo-ple to use a location-based app regularly?2. What kind of information do you think people are most likely to search for with their smartphone? Based on your answer
what specific kinds of information should retailers make readily available on their mobile websites?3. At present
AR apps are still relatively new and have not enjoyed high levels of adoption. What do you predict will happen with this technology? What applications of AR seem most interesting to you? What barriers will have to be over-come to get people to use this technology?Jon Simon Feature Photo Service/NewsCom FIGURE 8.6 IBMÕs augmented reality shopping app automatically delivers personalized coupons
customer reviews
and hidden product details (such as whether packaging is biodegradable) to smartphones as consumers browse store shelves. The app transforms marketing promotions from intrusions into services that customers welcome.Sources: Compiled from Williams (2016)
Gevelber (2016)


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