SMS proximity marketing in NZ: I got your Four Square right here!

Text proximity marketing has launched in the States, but what are the options for New Zealanders?

SMS proximity marketing is where cell users’ proximity to a given store is detected and targeted advertisements, deals and offers for that store are sent to the user’s phone.

AT&T launched ShopAlerts in the United States in February, special offers delivered to opt-in consumers via their mobile phones when they were near a participating store or brand, based on the phone’s GPS coordinates. 

The company creates a “geo-fence” around a store, or a virtual perimeter.  When consumers who had opted-in enter the fence, these special offers and other information including weather, traffic and local area details, are delivered to the consumer’s phone, a release from the company said.

Initial sponsors included HP, Kmart and SC Johnson, AT&T said.

But are these services available in New Zealand?

The holy grail of mobile marketing
Vodafone mobile marketing manager Bridget Gallen said location based services were the holy grail of mobile marketing, enabling brands to offer relevant and timely offers.

She said the majority of smart phones had in-built GPS that allowed a brand to communicate with consumers in a particular location using apps such as Google maps, with brands at the moment including Subway, Flicks, Heineken and BNZ.

She said for non-GPS handsets, the most likely way to provide location based services would be via cell site triangulation. 

“We do not have this capability today that would enable SMS proximity marketing but it is on our roadmap for something we would like to be able to offer in the future.

Ms Gallen said Bluetooth was also an option as a tool for brands and was on the rise due to the introduction of car kits.  She said in terms of marketing, users could accept or decline to receive a Bluetooth message.

“The two technologies have different benefits, with Bluetooth being accurate down to metres, where as Cellsite would be to a broader area. “

Ms Gallen said if Vodafone were looking to run location based services, the company would first look at an opt-in clause before considering opt-out, “as should all brands planning to use this technology.”

Telecom corporate communications manager retail Emma-Kate Greer said the company enabled Four Square proximity marketing, using GPS or manual location updates, to iPhone and Android customers through its 3G network.

“This enables users to reveal their location and opt in to receive advertising messages.”

2degrees chief marketing officer Larrie Moore said the company was monitoring the trend closely, as customers who wanted to stay linked to brands and services on the go could benefit.

“The increasing spread of ever-more-intelligent smartphones, combined with the continuing development of apps powered by geo-location technology, will provide a whole new set of opportunities for marketers and brands.”