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October 12, 2010

Proximity-Based Marketing:
Mobile Devices Untether Advertising from Media - Sep '10

Overview

The power of proximity-based advertising poses radical challenges to the mass media model of aggregating large local audiences and selling them to local advertisers.  But what’s being disrupted isn’t so much the traditional mass media as it is the old “Point of Presence” advertising – those shelf-level coupons, in-store Budweiser displays, or blue-light specials at Kmart.  “Proximity-Based Marketing:  Mobile Devices Untether Advertising from Media” examines state of affairs for this emerging form of marketing in a 15-page industry paper that includes eight charts and graphs and an appendix gauging proximity marketing activities in 210 U.S. markets.  It gauges mobile proximity-based advertising at $200 million this year, swelling to $760 million in 2011 and springing to $6 billion by 2015.  Almost 97% of the expenditures, however, is likely to be placed by national chains, not by smaller local businesses.  An interesting phenomenon is that one-third of smartphone users who access retail information on their devices are generally unreachable by any other medium – newspapers, yellow pages, radio or TV.  With more and more people staring into small screens as they shop, could this foretell that mobile devices might be the most powerful way to influence wallet-ready consumers?  This is the third in a series of three industry papers we’ve published this year on Mobile Marketing.

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