Radio has long fended off all comers when it comes to dominating the advertising space that exists within the confines of the private automobile. But a new competitor is getting ready to enter the market, bringing with it unique targeting ability – the GPS system.
The push is coming for GPS data-provider NAVTEQ, which feeds the information to GPS systems that allows them to do what they do. If the GPS is ad-enabled, NAVTEQ can target ads to the occupants on the vehicle based on location, context and user demographic information.
It conducted a survey of those owning an ad-enable GPS system, and found that 19% of those who noticed an ad clicked onto it for further information, and 6% actually visited a business establishment as a result of the ad.
The system, LocationPoint™ alerts a driver to the fact that they are in the proximity of, say, a fast food restaurant. It can also get coupons and other promotional material to the occupants.
Of the 757 people surveyed, 72% said the ads were an acceptable part of the GPS experience.
“This type of advertising reaches out and finds a consumer when they’re most open to making purchase decisions,” says NAVTEQ sales exec David Klein, “It’s a vehicle that grabs the attention of a consumer near point of purchase and as the technology matures, it will offer increasing opportunities to interact with the consumer in ways that will deliver substantial benefits to advertisers.”
RBR-TVBR observation: Radio can’t tailor an ad to the specific community grid in which a driver happens to be, but otherwise it already offers the same point-of-purchase opportunities, used creatively by the right kind of client.
And we have to say, we don’t personally own a GPS device, but if we do get one and it asks us to opt in for commercials, our initial response will be a resounding NO, just as it is with telemarketers (unless we feel compelled to check it out for professional reasons).
It should take some time for this to become a competitor for anything more than a few morsels of the advertising pie – but it could very well develop enough strength to start siphoning cash away from radio stations, and bears watching.