WEB WATCH: Get ’Em While They're Hot
by Andreas Roell
November 1, 2010
Casinos should consider adding LBS to their marketing mix
Location-based
services — like Four Square, GoWalla and Facebook Places — afford marketers
unique opportunities to connect with engaged brand fans that should not be
overlooked.
According to eMarketer, 57 percent of the U.S. population between
the ages of 25 and 34 are willing to share their location to receive
geographically relevant advertising. This is important for two reasons: it
demonstrates that users are willing to use location-based services (LBS), and
they are open to marketers connecting with them using this
technology.
For the hotel and casino industries there are valuable marketing
interactions that can be executed using LBS ad-serving and user-engagement.
The most popular social media proclamations
are location-based: “Heading to the casino, Off on my vacation” or “Cannot wait
to check into my hotel”. This works great for hotels and casinos as users are
highly likely to announce their upcoming trips (“Heading to Vegas for the
weekend. Wish me luck!”) From a strictly social perspective, marketers can respond
to messages with a quick introduction, like “Let
us know if you need anything during your stay,” or a promotion to connect with
someone who likely will be nearby, such as “Have a drink on us when you get
here.” LBS takes this principle one step further, as users actually check in to a particular location
and can interact with others at the
same locale. Especially with FourSquare,
where users compete for titles and special deals, consumers are apt to check in whenever they are in the area. For
marketers, LBS is an easy way to identify and engage them. From there they can
facilitate future conversations and create a group of brand evangelists.
There are several practical applications for
casinos to utilize LBS in their marketing programs. FourSquare, in particular,
holds great potential as it adds a level of competition to check-ins, which
follows nicely with hotel stays and gambling. For example, properties could
develop badges that act as digital players cards that reward consumers who
check in to their location a certain number of times. (For example, after 5
p.m., check-ins could receive a room upgrade or drink voucher to enhance their
stay.)
Facebook Places, while still being rolled
out, promises unparalleled geo-targeting and hyper-targeting functionalities
that will have great impacts on the hotel and casino industries. If a guest
updates their status with “Going to see XX show at hotel ABC,” marketers can
send them a hyper-targeted advertisement for the nightclub located next door to
the event venue. If they are at the pool, marketers can send an ad offering a
deal at the pool bar. The marketing implications are endless because the resort
experience is rooted in activity and location — the two cornerstones of
LBS.
Information about all LBS efforts can be included in itineraries,
and signage can be displayed at check-in and concierge counters. This will
encourage LBS check-ins when guests and visitors enter a property, and it will
also serve as a reminder to interact with fellow guests while they are on-site,
enjoying a meal, for example, or seeing a show or at a
nightclub.
LBS also has a role to play in existing CRM tactics
like e-mail marketing and social media. Both e-mail and social media can
augment LBS marketing efforts as they are vehicles for personalized promotions
and engagement. They are appropriate communication channels to announce a
location-based marketing program and remind guests to use it during their stay.
Additionally, most CRM tactics connect with guests after a stay or when they
are considering another visit, but with LBS a CRM program can reach guests
during their stays to deepen brand affinities.
While LBS platforms are still evolving, the
expectations about advertising relevancy and timeliness will not likely
reverse. Consumers have long been demanding marketing that relates to them and
their affinities. LBS is one way that advertisers and marketers can adapt to
changes in user behavior and interact with consumers in a highly relevant
manner.
It’s important that casinos consider adding LBS to their
marketing mix, as their guests are going to check in with or without
brand-driven interactions. In fact, most LBS platforms allow users to create businesses or locations that they want to
check in to, so guests could be checking in to a property without any input from brands or businesses.
While it’s not imperative to use LBS platforms as a promotional
vehicle, it is essential to engage with guests using it. They are raising their
hand to let their followers and marketers know where they are, and reports show
they are welcome to relevant advertising. It would be a waste of technology to
ignore them.
Andreas Roell
Andreas Roell is president and CEO of Geary Interactive, a full-service digital marketing firm specializing in Web development, media buying/planning and search-engine and e-mail marketing. He can be contacted at +1 619 239 5953; or by e-mail at andreas.roell@gearyi.com.
Did you enjoy this article? Click here to subscribe to the magazine.
