Location based advertising – a new trend?

By | August 21, 2013

Digital Signage – Location based advertising

In a recent study, it was found that six in every ten adult Americans have reported seeing a location based advertising on a display monitor in commercial establishments. Research and observations indicate that a large number of people actually like watching videos while inside commercial or public establishments. This report from GfK MRI mentions that more than sixty percent of people who have seen digital ads on video screen actually liked this method of advertising.

Location Based Advertising: Then and Now

location based advertising

Location-based advertising is not necessarily a new thing, but its application in digital signage marketing tactic is something you might have seen just recently. Ten years ago, digital signage was a rarity. Back then, only major companies would install digital signage hardware, and the utilization of this technology was mostly for instructional purposes. Many digital signage displays still have the same functionality, but their applications now have vastly expanded.

Today, a lot of small businesses have set up video displays for product promotion aside from entertainment. As more stores install digital displays to keep consumers from getting bored, more are following the recent marketing strategy. Needless to say, location based advertising involving digital displays has gone ubiquitous. More than 130 million adult Americans have seen electronic digital signage.

Reasons for Putting up Location Based Advertising

While the use of digital signage in location based advertising is in its infancy, current statistics indicate that this may be the future of on-site advertising. Advertising experts have presented some of the important reasons why this form of marketing is becoming popular.

1. Businesses like to provide specialized information to consumers. There is no better way to engage your customers and even passersby than to provide them information and how-to guides about your products. Back in the day, you would have sales personnel doing a demo for your products in your store. It’s a good strategy but inefficient nevertheless. You can show a how-to video demo of your products or services on a digital screen and run it over and over for different consumers to see.
2. Businesses like to provide instructional information to customers. Restaurants and dining venues are now setting up digital QSR menu boards, so customers can easily see the foods and drinks they serve and the make orders. Digital signage displays at hotels allow tourists to see holiday rates and packages without having to bother the front desk officer. Beauty clinics may install digital displays that show clients the proper way of putting on makeup or the safe way to use beauty products—while waiting for their turn to be serviced.
3. Stores like to provide entertainment. The good thing about digital screens is they are, of course, hooked up to a computer, so you can control what you show customers. Frozen digital posters that show just ads eventually annoy shoppers lined before cashiers at a store. Hence, grocery store owners and retailers have to put something entertaining, such as comic clips and movies. Hotels, restaurants, offices, dental clinics, and spas have employed the same strategy to keep consumers in their lobbies entertained.

location based advertising

Digital marketing is evolving, and part of its evolution is the development of new strategies to gain new customers and retain the old ones. Right now the only reported places where digital signage is frequently found are grocery stores, shopping malls, restaurants, and coffee shops. Dental clinics, spas, retailers, banks, and hotels are following this digital trend in location-based advertising.

DOOH USA offer many digital signage hardware solutions including location based advertising.