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Mastering the geographic-based ad market
April 1st, 2009 by Matt

japanese-vending-machine

For the past few years we have been hearing the idea that you will be able to walk up to a pop machine, put in a code on you phone and have credit your account and out comes a pop. Also you have heard about walking past a store like The GAP and have a coupon pop up on you phone from that store. Well 2009 is not going to be the year where this becomes a reality. But we are getting closer! You should start preparing your ad campaigns now.

Why now?

The more than sluggish evolution of mobile devices and mobile internet penetration have kept location-based advertising only a twinkle  in most online advertisers eyes.  But we have seen a few major vendors promise to a

  • Verizon signed Microsoft to provide location-based services and advertising for mobile customers. Under the five-year agreement, Microsoft will manage search and display advertising for the mobile web, creating a one-stop shop for advertisers and ad agencies. Announcing the deal, Microsoft CEO Steve Ballmer promised to help advertisers reach consumers who are on-the-go more effectively.
  • Google followed up last year’s provision of opt-in location awareness with Google Latitude, a feature that lets you see where your friends are. The search company has refused to comment on the prospects for advertising, but experts see Google as ideally placed to add a location layer to its ad algorithms; think Gmail ads on steroids.
  • NAVTEQ released LocationPoint, an advertising platform that can deliver both display and interactive ads to mobile phones, personal navigation devices, and in-vehicle navigation systems. It’s working with Interpublic Group’s Emerging Media Lab to demonstrate location-based ad targeting. By the way, in 2007, Nokia bought NAVTEQ, one of the top providers of location info, for $8.1 billion, saying that the deal made sense because of the swift growth of location services.
  • Ford Motor Co. announced Sync, technology that will connect cars to the mobile internet in order to receive traffic, directions, business search and other information. Ford expects to have 1 million SYNC-equipped vehicles on the road by the third quarter of 2009. Microsoft is its partner, so Ballmer’s boast likely covers the service: If you can search for an Italian restaurant, you can bet Microsoft will try to sell paid listings.
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