Europe's Galileo satellite positioning system will allow for more precise mobile marketing, writes Bill Britt.
The world of location-based advertising as portrayed in the film Minority Report, in which ads are personalised to Tom Cruise's character as he walks past stores in the Washington DC of 2054, came a giant step closer after Christmas with the launch of a satellite that will enable tailored messages to be sent to an individual's mobile phone.

A small UK company, Surrey Satellite Technology Ltd (SSTL - a spin-off from the University of Surrey), built and launched from Kazakhstan a satellite to test the technology for a £2.3bn network of 30 satellites planned to go live in 2010.

This Galileo global navigation satellite system, a joint venture between the European Union and the European Space Agency, will compete with Global Positioning System (GPS), the existing system operated by the US military.

The European system is designed for civilian use and can pinpoint a mobile phone or car within one metre, whereas GPS currently only allows civilian users access to positioning to within 10m-30m.

Of huge significance is the possibility that the EU may require future mobile phones to contain a receiver chip, bringing the price down to a couple of pounds and at a stroke creating a new mass medium for reaching consumers.

Galileo's backers say the system's pinpoint accuracy provides more commercial opportunities and would not be subject to any sudden switch-off by the US military for security reasons.

 
Targeted advertising

Galileo's biggest impact on the day-to-day lives of most Europeans will most likely be the ability for governments to require cars to contain a receiver chip, thereby creating a monthly billing system for road charging based on distance, route or time of day. But there are also significant opportunities for marketers to introduce precision marketing messages at the point of sale.

Max Meerman, director of research at SSTL, says the technology will allow marketers to send location-specific advertising messages direct to a person's mobile phone or car.

'The advertising would only trigger when the consumer is in front of a certain store. It could even target advertising if they are standing in front of a certain aisle,' he says. 'Of course the system doesn't know where you are unless you allow it to. It's not Big Brother.'

The Galileo system has mapping capabilities and can direct a user to the closest restaurant, pub or cinema, or alert them that a friend is nearby.

Critics claim Galileo is simply a costly ego project for politicians who don't want to rely on the US. Mobile marketing experts have confidence in the technology, but agree the real challenge is for marketers to develop compelling services and communicate them to consumers. The technology is there, but that does not mean consumers will want it.

In addition, consumer fears about having their privacy invaded and mobiles spammed must be addressed. The number of people who have signed up to the Telephone Preference Service to avoid being cold-called - 11.1m - does not bode well for marketers.

There are already location-based marketing campaigns, but they are limited by being tied to individual mobile phone operators.

Helen Keegan, founder of wireless marketing specialist BeepMarketing, was involved with the most famous example of location-based marketing.

She was head of customer experience at ZagMe, which in 2001 helped 150 stores send promotional texts to consumers at Lakeside and Bluewater shopping centres. The national roll-out foundered when a second round of funding fell through on 11 September 2001.

'People wanted a permission-based marketing channel via mobile. There was a demand for it and it was well liked, but it had to be very relevant,' she says. 'The barrier to success isn't the technical side - it's understanding the consumer and their context.

'Currently, there is a huge focus on mapping - but frankly, you can see a McDonald's ahead of you as you come out of the Tube station and you can see offers in the shop without being sent a coupon,' adds Keegan.


Reassuring the public

Convincing consumers to embrace this new technology is the big hurdle, according to Patrick Crosbie, operations director of digital marketing agency Wireless Brand Channel, which delivers vouchers and tickets directly to mobile handsets for clients such as the Carling Live music events.

'What works very well is when you have a brand that is well known to the consumer and offers them something relevant and delivered at the right time,' he says. 'With Galileo, a lot of PR is needed to reassure people they are not being spied on, that they can turn it on and off and that they can't be spammed.'

Pamir Gelenbe, co-founder of mobile marketing agency Flytxt, says that consumer fears should not be a stumbling block if the system is permission-based, targeted and delivers value. 'I see no reason why it can't work. It doesn't have to be push-based, either - it could be a pull service,' he adds.

Providing compelling content is a priority when it comes to engaging consumers, according to Mike Baker, chief executive of mobile agency Enpocket.

Instead of 'pinging' marketing messages to mobiles, he envisions firms sending a continuous flow of information to mobile phone screens on local weather, sports scores, stock prices and the like.

'The primary application of location service is improving user experience by personalising the content. The mobile marketing opportunity flows from that,' says Baker. 'As marketers we want to reach a broad audience; I don't want to reach 10,000, I want to reach millions. Advertisers want reach, all things equal, and want the broadest reach possible.'

The future of Galileo, then, may well be in the sphere of mass-marketing rather than the micro-marketing culture of Minority Report.

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