The service uses location-based technology known as “geo-fencing” to power the trial and is the result of O2 Media, O2’s mobile marketing arm, partnering with Placecast, a Californian company whose tried and tested platform has transformed the mobile marketing industry in the USA. Placecast’s customers have included North Face, quick-serve restaurant, Sonic Drive-Ins and American Eagle Outfitters. 65% of customers who were part of initial programmes made a purchase as a result of an SMS and MMS, and 60% of participants found the location-based messages to be “cool and innovative”.

How it works:

• O2 customers register on O2 More www.o2more.co.uk, launched in December 2009, by inputting information about their age, gender and interests such as football, travel and cinema
• When opted-in O2 More customers are found to be within a geo-fenced area owned by Starbucks, those interested in food and drink receive an SMS offering them money off Starbucks VIA Ready Brew at a nearby branch
• When opted-in O2 More customers are found to be within a geo-fenced area owned by L’Oréal, customers interested in beauty receive an SMS offering buy one get one free on L’Oréal Elvive hair care range at Superdrug

New research commissioned by Velti revealed that 79% of UK consumers believe the growth of mobile advertising is inevitable. The survey, which polled more than 1,600 UK mobile phone users, showed that the majority of Britons are starting to accept that mobile marketing and advertising “if it was on an opt-in basis and in exchange for incentives or rewards, ranging from cash, free minutes or relevant special offers from brands”.

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