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 newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

How to become the customer experience custodian

The number one objective enterprises give for embarking on a digital transformation is to improve customer experiences with new engagement models, according to IDC’s 2017 global study.

Fear not: It's only a robot

Every time I pass through the automated border controls at the Sydney airport I walk away with a feeling of exasperation on the one hand and relief on the other. Exasperation, because the face recognition technology inevitably always fails to recognise me. Relief, because we seem to be safely years away from the Orwellian reality of states controlling every aspect of our lives; something the media is keenly warning us against each day.

Dan Kalinski

CEO, iProspect Australia and New Zealand

To DMP or not to DMP?

There are plenty of brands that can benefit from plugging into a data management platform. But should you engage an agency to run one or bring it in-house?

Ben Willee and Richard Taylor

Spinach Advertising

I worked at Momentum when the transformation started way back in 2013 (not 2015 as stated in the article). It was a painfully slow and co...

Jay

How Momentum Energy has transformed its entire business to be customer-led

Read more

Another buzzword thoughtlessly latched onto, without any thought for the implications on the organisations that have to lumber through th...

Tired

Rolling out agile marketing at Deakin

Read more

Useful., also don’t miss out on these 5 features of Adobe Experience Cloud - Visit here > http://www.softcrylic.com/b...

Sunil Joseph

Adobe debuts Advertising Cloud, Experience Cloud

Read more

the systems that run these things are teachable just like a car, theres stuff still yet to come out to bring up the automation grade, b...

Magnus Robert Carl Wootton

Fear not: It's only a robot - Big data delivery - CMO Australia

Read more

Marin Software’s digital marketing solution as a short way of streamlining and finding a scalable solution...

Al Drazhev

How BizCover is boosting search advertising success

Read more

Latest Podcast

More podcasts

Sign in