Mobile Social Networks poised to make the money
Two years ago Vodafone launched South Africa’s first location-based social network – The Grid – and this year they have taken their mobile application to a whole new level. For the first time in South Africa we will see location-based advertising through the medium of bulk SMS messaging.
The Grid connects a user’s cellphone and web browser to a social network that is aware of your current location. Using cellphone mast triangulation to map your location as well as those of your friends, this mobile social network allows users to notify friends of where they are, find friends in the vicinity and to chat with them through instant messaging. This platform is also open to users of all mobile networks as well as to developers looking to write mobile applications that run on top of it.
The Grid, by mapping your location through your cellphone, shows users only content that is relevant to that area. Not only can users chat with friends at a fraction of the cost of a traditional SMS but can also share photographs and videos via this mobile social network. An extension of traditional tourism guides, The Grid encourages the sharing of local content, viewers can access notes and photographs taken by other users of the area they are currently in. In December last year, Vodacom was awarded the New Telecommunications Service of the Year award at the 3rd Annual Comms MEA Awards with the judges describing The Grid as ‘the perfect combination of Web 2.0 applications and mobility.’
On first appearances The Grid does not appear to be a money spinner for Vodacom; however factor in the data gathered from users – their demographics, favourite locations, friends and preferences and what you have is a vehicle perfectly positioned to deliver location-based advertising!
Vodacom began the pilot of it’s location-based advertising in June of this year in partnership with Nando’s, Sportscene, Jay Jays and Cape Town-based pharmacy group Synergy. Adverts are delivered via SMS text message within a 10-km radius of the user’s location. This means that each store can deliver time sensitive and relevant information to potential customers through an SMS message via the mobile social network. Vodacom Mobile Media head Rick Joubert said that, “Delivering advertising which is contextually relevant is one of the key goals of any advertising…”.
Once the SMS advert is delivered to the cellphone, the user can choose to click on one of those adverts that they are interested in and are then taken through to a map showing the location of that store. Advertisers pay per click so the costs of participating in this pilot project are linked directly to customer interest.
Social networks that are not incorporating mobile messaging into their offering are putting themselves at a significant competitive risk. Users want mobile social networks that allow them to interact with friends in the network at their convenience and from any location.
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