Kellogg's sees location-based marketing as the new frontier for brands

Head of marketing says the FMCG group sees proximity marketing technologies as a burgeoning opportunity to connect with customers

Travelling from europe to australia

4 darts on a world map symbol of travel or communication around the world map.

adventures, arrival, arrow, australia, away, background, business, businesses, chance, change, chart, choice, choose, communication, competition, continent, country, dart, deals, decide, decision, departure, destination, destiny, escape, exoticism, expatriate, expatriation, exploration, explore, explorer, dreamstime

dreamstime_1780402
Travelling from europe to australia 4 darts on a world map symbol of travel or communication around the world map. adventures, arrival, arrow, australia, away, background, business, businesses, chance, change, chart, choice, choose, communication, competition, continent, country, dart, deals, decide, decision, departure, destination, destiny, escape, exoticism, expatriate, expatriation, exploration, explore, explorer, dreamstime dreamstime_1780402

Proximity marketing is emerging as the new battleground for brands to engage with their customers at the point of purchase. And it’s raising some big questions around data ownership between brands and retailers.

Speaking on a panel in Sydney to mark the release of the 30th annual Starcom Mediavest Group (SMG) Media Future Report, Kellogg’s A/NZ marketing director, John Broome, said the ability to combine mobile connectivity and in-store experience through proximity marketing technologies opens up a key new opportunity for the FMCG brand to engage with customers.

While there has been a decline in spending around in-store promotions and advertising, this year’s SMG report showed 41 per cent of advertisers intend to use SMS in their campaigns in the coming year.

The report also noted that store proximity is emerging as “the new battleground to influence point of purchase”, thanks to increased acceptance among consumers to allow location sharing when using apps and push notification on their smartphone.

“Location-based marketing is potentially – and certainly in the FMCG world – what we’re all looking for,” Broome claimed. “The opportunities around proximity marketing and some of the stuff that’s happening overseas in markets like Japan, could have huge applications in Australia.

“This is a new frontier, and it will drive much better quality interactions between the targeted consumer and an offer, which is right in front of their eyes.”

There are emerging questions, however, around who owns the data generated in that retail environment. When asked about who currently owns and distributes the data being collected at the point of purchase, Broome said it was the retailer.

“There is that technology advancement, but there’s got to be a sensible relationship between the brands and the retailers to make that work,” he said. “We can’t be too greedy too soon, because that could just kill it.”

The proliferation of location-based technologies in other markets, but not as yet Australia, was a potentially indicative of the immaturity of the local industry’s approach to date, Broome said. Partnerships between retailers and data analytics firms like Quantium, are a vital component in the long-term viability of these services, he continued.

“How that data is used, parcelled up, sold on and then wrapped around our ideas and our ability to use that data to reach people in-store – that’s a big, big opportunity going forward,” Broome said.

Related: Kellogg's marketing chief: Marketers in charge of delivering sustainable business growth

Optus head of advertising, channel marketing, social media and sponsorship, Karen Phipson, said the telco’s adoption of proximity marketing services would be dependent on the situation and type of customers being targeted. For example, she saw opportunities to employ the technology in physical spaces where Optus is competing more for attention, such as a supermarket.

“It’s less so [important] when consumers are closer to our stores, where it’s a slightly different consumer experience,” she said. “There’s also more consideration with some of our products – it’s a two-year cycle for a lot of our products - although pre-paid is different and that’s where you might start to look at proximity.”

More on location-based marketing

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Really inspiring !

Goldenboy Media

Jaywing sets sights on Australian growth with digital and data-driven agency model

Read more

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in