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What Are The Advantages/disadvantages of Location-Based Advertising Communications Discussed in Video 1.?

Location-based advertising provides advantages like extreme personalization and targeting customers, but also has disadvantages around privacy concerns and ethical issues. While it ensures exposure to ads, some users may feel their privacy is violated by constant location tracking. On balance, the advantages of location-based marketing can be effective if implemented responsibly.

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Jehan Zeb
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18 views

What Are The Advantages/disadvantages of Location-Based Advertising Communications Discussed in Video 1.?

Location-based advertising provides advantages like extreme personalization and targeting customers, but also has disadvantages around privacy concerns and ethical issues. While it ensures exposure to ads, some users may feel their privacy is violated by constant location tracking. On balance, the advantages of location-based marketing can be effective if implemented responsibly.

Uploaded by

Jehan Zeb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

What are the advantages/disadvantages of location-based


advertising communications discussed in Video 1.?
The location-based advertisement is one of the latest techniques for marketing. There are numerous
benefits for adopting location-based marketing, but it also comes with many disadvantages as
mentioned in the following sections.

Advantages
Extreme personalization
Customized messages attract significantly more attention and involvement as contrasted to standard or
conventional marketing or advertisement techniques. That not only gives significance to the
advertisements, but it also helps to monitor the customer requirements. So, the advert will be much
more effective unless it has been adjusted in accordance with the best interest of a client. Location data
allows you to do that. You will be able to offer different product/services to your target audience
centered on the location where your customers are situated or currently present.

Ideal time
Adding up to the greatest benefits that a location-based advertisement offers, is the ideal time to pitch
your ad to your target audience. Location data being provided real-time, there is a chance for companies
to aim their prospects at accurate time. An excellent example is of in what manner retail companies are
utilizing technological equipment to trace the motion of individuals passing through the retail outlet.

Targeting
With the advent of smart phones, almost everyone is using this technology and have everything in their
palm. It has now become necessary for marketers to aim customers on mobile devices. Although in the
past standard display advertisements still functioned, today the individuals are more sympathetic to ads
that are coming on a digital channel.

Assured exposure to target class


Ultimately, the very best part about location-based marketing is the fact that it ensures the exposure for
your company, your products, and your promotions. Although individuals are not especially interested in
anything you are presenting in the form of ads, nonetheless they will be susceptible to that information.
Because there are certainly there will be no way that we are going to escape from conventional
advertisements and banners. Jaded transportation service users will probably look at and then read your
commercials, and every car driver look up at your billboard while passing through it. Even though
unconsciously, passers-by are more likely to take a look and recall your message that you are trying to
convey through the ad.
Constant reminder
As Location based marketing is based on your smartphone and shows you alert in the form of push
notifications. This is one easy way to constantly show your message to your target audience and ping
them while they are around your location.

Disadvantages
There are only couple of disadvantages of LBA but the severity of these disadvantages outperform the
benefits.

Privacy concerns
One of the major concerns that people and intellectuals raise about the location based marketing is that
it uses your real time data. This means that you don’t have any privacy and all your data is being
provided to the company through cookies and your own concerns to use a specific app like Blesh.

Ethical issues
There are a lot of ethical issue that comes along with the LBA. The company that provides notifications
and alerts are not actually the store and shop owner. These companies provide mislead information to
users to increase the traffic and use of their application. This is one way to show the owners of the
store/outlet that the app has helped bringing in new customers.

Factor of being spontaneous


Unlike the conventional marketing that plays a vital role in motivating the viewers and target audience
to go outside their homes and buy a certain product, the LBA shows an advertisement only when the
viewers is actually present or near the premises of the store/out/shop.

That location-based commercials do take on quite a lot of advantages compared to other forms of
marketing and advertisements. While it is still critical, being available on the internet isn’t the only path
to follow. Frequently, the advantages of location-based marketing can be much more effective as well as
the conventional advertising campaign.
2. Discuss the advantages/disadvantages of M-Commerce over
E-Commerce (Video 2) indicating which you think are the most
important and why?

Here is the list of advantages and disadvantages of Mobile Commerce or M-commerce.

Advantages

1. Mobility – Users can get information regardless of their location. No limitation to time or place
2. Rapid and more varied purchases – M-commerce offers fast and wide range of payment options
without going through the cart phase at all.
3. Omni channel – Mobile commerce has made it possible to work and utilize the omni channels
like location tracking, individual content, and customer recommendation. That is not possible in
case of desktop
4. Push notifications – direct message using app permission. Users can get 24/7 support in the
form of push notifications.
5. Bigger bang for your buck – more customer use mobile commerce than the ecommerce. Hence
improving your m-commerce ROI.

Disadvantages

1. Ad fraud – Many companies show fraudulent information to enhance their marketing and
customer visibility and the number of these ads is way more than the ecommerce itself.
2. Heavy costs – the cost of developing mobile commerce and mobile friendly app is heavy and
small businesses cannot afford that.

The most important benefit that M-commerce has over the Ecommerce is the utilization of Omni
Channel Approach.

Why?

Omni channel in just one simple app, helps users enjoy a seamless shopping experience and increase
customer satisfaction as compare to the ecommerce and desktop-based system where user must scroll
through multiple webpages to reach to its end product.

Another reason is the extreme personalization approach – which means that M-Commerce offer an
option to approach customers/target audience in most effective way. Which means that your effort is
direct and extremely customized for the individual that is witnessing your ad.

Location Tracking – This is also one of the key features of M-Commerce, because it allows companies to
only send notifications and show ads to the people in your area which in case of ecommerce is not
possible. Ecommerce companies use Mass advertisement where there is too much wastage of resources
and efforts.
3. Discuss how the five Location-Based services mentioned
in Video 3 could benefit a typical SME of your choice?
The Location based services can help any business that want to enhance their online presence and
create more visibility. Here are the benefits that SME can enjoy.

SME of Choice: Green link express – Online Cab service

Navigation: Navigation is a key element for the cab services companies now a day. Helps your users with
identifying your exact time to location. Helps identify how much time till they will reach to a location.

Geo notification: helps Green link express advertise promotion to locals in a specific location. And give
huge discount where they find that people are not using or less use of their services.

Geo Fencing – This feature helps Green link in their tourism services. Where they can show their
customers the nearby attractions and visiting places.

Asset Tracking – Real time location of the vehicle and most importantly, asset tracking of their courier
service. Which means that their clients can have a real time information about the position and time to
delivery using this tracking system.

Analytics – Can help Green Links to improve services in a way that they can improve their cab available
in a location where there is a great flow of customers. Also marketing efforts can be streamlined using
analytics as to how much budget they should spend in order to maximize the returns.
4. We are told that Location-Based Marketing is about
connecting people, places and media (Video 4). What
are the ethical considerations around businesses
knowing every ‘place’ we visit?
i. No private space – There is no private space if someone is constantly tracking your
information and location data. This arises many ethical concerns with respect to issues in
terrorism and other issues related to robbery. This is why, customer data is a very sensitive
thing, which when leaked out can cause problems like Facebook had to experience
ii. Security concerns – Part of this consumer base are part of high security positions and even
some case national security. This information when leaked can breach national security and
impact the overall prosperity of the country.
iii. Harassment – If someone knows your exact location, he/she can manipulate you and harass
you with your family security and your own security (if you are a women)
iv. Infringement of anonymity – Having a constant surveillance makes customers feel violated
and gives a feeling that there is no anonymity in their life.
v. Choice Manipulation – With constant information and data breach, customers feel that their
choices are being manipulated. Companies manipulate their decisions and force them to
purchase something that is not purchased intentionally.
vi. Unfairness – Location data and other information is only shared from customer to
businesses only. Which is actually unfair in a sense that customer don’t get any personal
information from the business. Which makes the deal very unfair.

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