Starbucks trials new O2 location-based mobile marketing service

Starbucks: to deliver targeted location-based ads to O2 customers
Starbucks: to deliver targeted location-based ads to O2 customers

Starbucks and L'Oréal are to deliver highly targeted location-based ads via SMS and MMS to O2 customers, using its new mobile ad service.

The location-based mobile marketing service, which is trialling in the UK for six months, will enable retailers and brands to send ads to mobiles to over one million of O2 Media's opted in customers.

The service uses geo-fencing technology that automatically triggers an ad to be sent to a mobile device when its user enters a certain location detected by proximity to mobile towers.
Customers who opt in give details of their age, gender and interests. This information is combined with the customer’s location, meaning that brands are able to deliver relevant ads.

When opted-in O2 More customers are enter a geo-fenced area 'owned' by Starbucks, and they have registered an interest in food and drink, they will receive an SMS offering them money off at a nearby branch of Starbucks.

Customers interested in beauty found to be within L’Oréal's geo-fenced areas will receive an SMS offering buy one get one free on L’Oréal Elvive hair care range at Superdrug

O2 said that such a service does not infringe its customers' privacy because it is opt-in and they make the opportunity to opt out obvious for them. It does not send spam, only messages that are relevant to the customers' registered interests.

It differs from the likes of Foursquare as it does not require a smartphone or app to work.

In the US O2 Media partnered with Californian-based mobile technology company Placecast to deliver this service. It claimed that 65% of customers who were part of initial programmes made a purchase as a result of receiving an ad via SMS and MMS.

Last month O2 announced it is to launch its first mobile healthcare service, as part of its strategy to develop into a brand-led service business.


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer