How effective is location-based advertising as a business model?
Everything location-based is still far from being a proven business model, simply because it’s still relatively new and marketers, brands and consumers are still figuring it out. Location-based advertising depends largely on the consumers’ willingness to provide their location data to advertisers, and the rewards must be engaging enough for the consumers to give consent.
Getting half off lunch at a local restaurant would do the trick for many people, while others will say that there’s no such thing as a free lunch. In any case, just as with any other advertising, it needs to be relevant and engaging.
And then there’s the technical side of things. As smartphones become dominant, location-based advertising becomes more viable, but there’s still the issue of reliable signal, data consumption, digital attention span, etc.
To sum up an answer to the question, it has the potential to be all of those things, effective and sustainable, but it’s just too early to tell. If you’re looking to launch such a campaign, some market research would be good to find out how your audience feels about it, factor in the technical requirements, and then reach a decision.
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