Why Forrester Got It Wrong on Location-Based Social Networks - Page 2
Millions of people are telling their friends that they are visiting a business or retail establishment. That word of mobile advertising is far greater than a magazine ad, banner on a website or Google adword. But Forrester doesn't seem to mind.
Local businesses are already geo-advertising on these platforms and stealing foot traffic away from their competitors. But Forrester wants businesses to turn off the LBSN opportunities and bury them in the sand - time capsules to be opened up years from now after they’ve gone out of business, perhaps.
The fact is that if businesses offer rewards, discounts, coupons or other incentives, their customers will use the platform on which they are offered. Especially Android or iPhone users. If they can save 25% on their next electronics purchase or 20% off their next meal at the Cheesecake Factory they are going to download the app from the app store.
This is so obvious a fact that basic common sense is in order here. LSBN’s are not inventing a new advertising model, they are simply transferring it to a new platform. The model has worked since the French newspaper Le Presse first used paid advertising in its pages in 1836.
Why Forrester has lost their way here, I can’t guess. One only hopes someone hands them a more updated mobile to find their way back.
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