The reach of Wi-Fi into high density public places gives it potential as an enabler of location-targeted advertising because it can provide beacon-style proximity capabilities at superior scale to Bluetooth beacons, according to a new report about Wi-Fi advertising opportunities from the Wireless Broadband Alliance.
Wi-Fi Advertising Opportunities
Operators can take advantage of this opportunity initially through proximity-based programs using network-based technologies. As they move toward Wi-Fi, there is an additional opportunity to provide accurate location and other services, according to the WBA.
The WBA points to the Location Based Marketing Association semi-annual report, which found that location-based marketing is on the rise across the globe.
Further, Wi-Fi advertising is poised to grow as venues look to interact with their own customers, but need to do so in other locations as well, so an advertising package featuring Wi-Fi and Mobile can create the best value and help venues deepen their relationships with customers.
According to Harvard Business School, an increase in customer retention by just 5% can lead to an increase in profits by 25% to 95%. Reminder alerts can help drive customer loyalty.
For example, Cancer Research UK used location-based mobile advertising in the run-up to World Cancer Day 2017 to increase supporter engagement across a range of high-footfall retail and transport locations by ensuring that promotional messaging was relevant and engaging, according to the WPA report.
Yet simply offering the messages is not enough, the report points out. Messages must be relevant to be effective, and location information (historical as well as present) is one of the most effective means of delivering relevance.
Further, brands need to measure the effectiveness of their advertising — the availability of high quality data is central to their ability to establish attribution, and to deploy re-targeting campaigns.
Based on its findings, WPA recommends that members:
- Look to decrease operational costs and improve customer retention and service differentiation.
- Bundle Wi-Fi with other services such as broadband or mobile, typically at no additional cost to the consumer. Benefits include reduced customer churn and increased market share of core services through market differentiation.
- Deploy content delivery network capability closer to access points (APs) to improve efficiency and customer experience, as well as lower overall content delivery costs.