emerce engage 2016 - nishant dogra & dr. stefan bernritter

Location Based AdvertisingDr. Stefan Bernritter | Nishant Dogra, MSc.

LBA - Mobile or Location?

vs.

LBA - Mobile or Location?

CAVE

LBA - Mobile or Location?

LBA - Mobile AND Location!

• Contrary to claims from earlier research, the merits of LBA do not lie in location congruent situations but rather in location incongruent situations -> not directly in front of the product.

• The underlying process is enhanced attention towards mobile (vs. stationary) ads in location incongruent situations

• If consumers are standing directly in front of the shelf, a traditional stationary ad is as effective as LBA.

• Use LBA to lure consumers to products or in the store!

How Should we Design Location Based Ads?

Open vs. closed ads

How Should we Design Location Based Ads?

Key Findings

•Open mobile ads are perceived to be less intrusive and are therefore more effective.

•If presented in a location congruent setting, this effect becomes even stronger.

Mobile enabled LBA

Social Media 3rd Party Apps WiFi Hotspots

Immediacy boost LBA

Retail APPS: The Holy Grail of LBA

Automated with Smart Customer Data

Smartphone Usage Boost Sales

Case: La Place

Case: Hunkemoller

Key Findings

Using Geo-fence & iBeacons (LBA) increases Retail APP engagement by > x10

Reach with iBeacons is still very limited (>5% of retail app users)

Conclusion: In general Customers are more willing to receive notifications and deals when moving closer towards a store.

Yet relevance is key!

Future Research

1. Impact of LBA on total Direct Sales

2. Impact of LBA on Customer Satisfaction

3. Relationship between LBA & Privacy

4. What type of LBA message works best?

5. Difference LBA between Sectors (e.g. Fashion vs. Food) & Brands

Future Research

• Reach (in CTR, views, likes or related measures)

• Recall (% aided, % unaided, etc.)

• Redemptions (e.g. coupon)

• Increased social media engagement/exposure (e.g. # of check-in's, pictures taken, retweets, games played)

• Foot traffic increase

• Intent to purchase (measured through follow up)

• Brand Preference

Bedankt!