Head of marketing says the FMCG group sees proximity marketing technologies as a burgeoning opportunity to connect with customers
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
Creating a strong company culture may sound like a daunting task, but it’s actually pretty straightforward. In fact, company culture is created in exactly the same fashion as a religion or democracy. Behaviours created from the organisation’s inception are reinforced over time by leadership, attracting like-minded people and eventually reaching critical mass to become an accepted ‘truth’.
The question I get asked most regularly these days is: ‘Do I need to rebuild my company’s systems on Blockchain?’ And the answer, every time, is ‘No, you’re asking the wrong question’.
Throughout my career, I have witnessed a litany of brand names that profess to have a unique customer value proposition (CVP). In reality, however, they’ve had little more than a ‘value proposition’: A simple list of benefits applied to a general audience.
In this bonus last episode of this new podcast series, BrandHook MD, Pip Stocks, talks with former ANZ group general manager of marketing, Louise Eyres, talks about the importance of thinking like a customer and using intuition to solve customer painpoints.
Your site is very meaningful.you have presented a very valuable article.https://www.baneh.comgoodluck
فروشگاه اینترنتی
ACCC releases Consumer Data Right draft framework for comment
RE: Sales and marketing SLAs, often the choke point isn't the teams but them getting the data into the tools they want to use with the da...
Ed Fry
Why sales and marketing alignment is more important than ever
Thank you for the good and very helpful information. It is very interesting. I love all the things you share and see your beautiful creat...
รัตนาวดี ภูมิวรรณ
Former eHarmony marketing chief joins telco startup
Colin Kaepernick, not Mike Kapernick.
thisisw
Zenith's innovation leader: Mid-digital age not benefitting media, brands or consumers
AGA KHAN HOSPITAL is in need of kidney donors for the sum of 2 crore, Contact us today if you want to sell your kidney for money, and thi...
Sebastian Friedrich
Mindshare gets behind blockchain advertising alliance