Friday, February 19, 2010

Loopt Seeks Advertising 'Holy Grail'

Awash in all the announcements at the Mobile World Congress was the announcement by Loopt that they would offer a new performance-based hyper-local advertising solution.

Mobile Marketing Watch writes, "Loopt could essentially allow a company to keep track of ads shown and whether people actually visited a location later using GPS or voluntary location-sharing," such as check-ins. This, "allows for a cost-per-action pricing model in lieu of more traditional and out-dated cost-per-impression or CPC models."

Many call this the 'Holy Grail' of performance marketing or advertising because it offers real accountability. The advertiser pays for actual visits to their store, not impressions, or clicks. The opportunity is obviously unique to mobile devices and points to why so many people are deeply interested in hyperlocal  and location based services as of late.

"The company’s CEO said there would a self-serve way of buying these ads.  Much farther down the line, one could imagine a bidding model where businesses set the value of a potential store visit from a new customer, for example, akin to Google’s advertising bidding system for clicks," wrote Mobile Marketing Watch.

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