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Southwest Airlines Essay

1392 words - 6 pages

THE NEAR AND FAR OF PROXIMITY MARKETING: THE FUTURE OF MARKETING EXISTS AT THE NEXUS OF DIGITAL SIGNAGE AND MOBILITY
Alex
Romanov
 INTRODUCTION
 
 When
historians
look
back
on
this
commercial
and
 cultural
 period,
 they
 will
 likely
 describe
 it
 as
 a
 time
 when
 the
 barriers
 between
 the
 physical
 and
 digital
 experience
 began
 to
 erode.
 One
 of
 the
 hallmarks
 of
 this
 period
 will
 be
 the
 blurring
 of
 the
 lines
 between
 marketing
 channels,
 and
 the
 convergence
 and
 evolution
 into
 something
 new.
 
 Today,
 location
 awareness
 and
 mobility
 have
 added
 context
 to
 even
 the
most
ordinary
actions,
while
social
media
and
the
 ...view middle of the document...


Proximity
marketing,
on
 the
 other
 hand,
 is
 predicated
 on
 the
 fact
 that
 the
 demographic
 is
 already
 optimized.
 The
 messaging
 associated
 with
 this
 technology
 is
 delivered
 to
 consumers
 in
 a
 specific
 and
 ideal
 location
 (as
 near
 as
 possible
to
the
point
of
sale;
inside
a
retail
outlet,
for
 instance),
 and
 consequently
 these
 consumers
 are
 in
 the
ideal
physical
location
and
mindset
to
complete
a
 transaction.


 
 This,
 for
 marketers,
 is
 the
 perfect
 audience
 –
 consumers
 who
 are
 primed
 and
 ready
 to
 receive
 messages,
and
to
act
on
them.
 
 PROFITS
BY
PROXIMITY
 
 Cultivating
 this
 perfect
 audience,
 a
 feat
 only
 possible
 with
 proximity
 marketing,
 reaps
 substantial
 rewards
 for
 retailers
 and
 other
 enterprises
 that
 engage
 in
 these
 techniques.
 One
 Vancouver‐based
 restaurant
that
has
contracted
with
iSIGN,
a
proximity
 marketing
 company,
 to
 power
 their
 proximity
 marketing
 campaign
 has
 experienced
 considerable
 results
 from
 an
 interactive
 campaign
 that
 works
 with
 their
existing
in‐house
digital
signage.

In
a
one‐month
 period,
 the
 iSIGN
 proximity
 marketing
 system
 registered
 150,000
 mobile
 device
 discoveries
 (20,000
 unique
devices)
and
delivered
messaging
that
netted



Mobile
Marketing
Association


31



IJMM
Canada
Issue,
Summer
2012
Vol.
7,
No.
1


Figure
1:
How
proximity
marketing
works
with
a
restaurant
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 the
 restaurant
 between
 $5,000
 and
 $10,000
 of
 new
 revenue.
 The
 corresponding
 monthly
 ROI
 for
 this
 campaign
 was
 between
 330%
 and
 660%,
 making
 the
 restaurant’s
proximity
marketing
efforts
the
most
cost
 effective
 promotional
 initiative
 in
 the
 restaurant’s
 history
(Figure
1).
 
 THE
CONTEXT
 
 These
 results
 are
 possible
 because
 of
 the
 growth
 of
 digital‐out‐of‐home
 media
 (DOOH,
 which
 includes
 digital
signage
employed
by
the
restaurant
in
the
case
 study
above,
as
well
as
larger
format
media
like
digital
 billboards),
 the
 continued
 proliferation
 of
 mobile
 devices,
 and
 the
 general
 public’s
 familiarity
 and
 willingness
 to
 use
 them
 for
 commercial
 purposes.
 Coupled
with
mobile
and
proximity
technology,
multi‐ channel
 DOOH
 networks
 provide
 marketers
 with
 the
 ability
 to
 deliver
 content
 in
 a
 contextually
 relevant
 environment
and
at
moments
of
maximum
influence.
 This
 puts
 DOOH
 on
 an
 explosive
 growth
 trajectory;
 most
 industry
 analysts
 are
 projecting
 global
 digital
 out‐of‐home
media
revenues
to
rise
substantially.
 
 The
 mobile
 element
 in
 proximity
 marketing’s
 success
 equation
 is
 well
 documented.
 
 According
 to
 recent
 figures,
 85%
 of
 Americans
 over
 the
 age
 of
 18
 now
 own
 a
 mobile
 device
 of
 some
 kind,
 and
 the
 average
 American
 who
 owns
 a
 mobile
 phone
 spends
 nearly
 three
 hours
 a
 day
 on
 it.
 This
 means
 that
 marketers
 have
 a
 great
 opportunity
 to
 reach
 consumers
 through
...

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