Analyzing Location-Based Advertising in Mobile Commerce: A Case Study

This case study examines the evolving landscape of mobile commerce, focusing on location-based advertising strategies and their implications. It begins with an introduction to m-commerce and the role of location-based advertising, using Captify as a case study. The analysis explores the advantages and disadvantages of location-based marketing, personalization, and the importance of timing. It then compares m-commerce and e-commerce, highlighting the benefits of mobility, rapid purchases, and cost-effectiveness in m-commerce. The case study further delves into the benefits of location-based services, such as personalized customer experiences, navigation, and asset tracking. Finally, it addresses the ethical considerations surrounding businesses tracking user locations, including discrimination, accounting concerns, technology and privacy issues, and social media policies. The conclusion emphasizes the need for businesses to consider these factors to ensure responsible and effective mobile marketing practices.

Case Study 2 on Mobile
Commerce

INTRODUCTION
Today small or medium enterprises have started adopting modern techniques of
commerce and marketing such as e-commerce, m-commerce platforms. Unlike the traditional
businesses those were dependent on number of visitors physically frequenting their stores.
Location-based advertisements are one such tools to target potential audience and convert them
into sales (Shaw and Sergueeva, 2019). In relevance to Captify, a search data medium-sized
company that helps other individuals or businesses do real time searches globally with its
intelligence technology and omni channel advertising.
1. Location-based advertising communication
Targeting consumers through location based communications has its own merits and
demerits discussed below:
Advantages:
Target potential customers: Location-based advertising allow businesses do real-time mobile
marketing by multiple options such as sending personalized messages to target audience, push
notification to right person at the right time. Captify is one such location intelligence platforms
that can target leads based on their behaviour and location.
Personalisation: Organisation face a challenge of personalizing their communication with
potential customers. Location-based advertising builds a relation between customer and product
brand by ways of welcome back messages, demonstrating patterns in behaviour of previous
customers.
Perfect time: Pitching the customers at perfect timing is what bring a rise in brand loyally and
better relationships with customers (Chi 2018). Location based communication help attract
customers through adds displayed to them on sites or application within perfect timing when they
need it.
Disadvantages:
Issue of privacy: Tracking people who can be businesses potential customer is beneficial but
creates a sense of insecurity among people that there personal data is regulated by organisation.
Also data collected by many application sometimes gets leaked and can be used by data attackers
stealing personal information can be a threat. Captify makes sure data of their customers is safe
and safeguarded with security tools.

Access to smartphones: Many people still do not have access to big screen mobile phones facing
challenges regarding tapping the right location, low quality of display creating misguidance of
location and service.
Irregularity: Places with no GPS signal or low internet connectivity may sometimes loose the
track of potential leads. Potential customer tracking fully dependent on their location may
become irrelevant in such circumstances with lost real-time access to location (Hüseyinoğlu,
Galipoğlu and Kotzab, 2017).
High-competition: The services may have a immense potential to explore yet has huge race of
attention seekers over internet. A never -ending competition of large no of applications using
such location services is there to communicate to customers making adds sometimes ignorable.
Therefore, not attracting much customers if it has no creativity and uniqueness.
2. M-commerce over e-commerce merit and demerits:
Both e-commerce and m-commerce provide same end solutions, that is facility to sell
products by any business. There are various advantages of m-commerce over e-commerce
platforms adopted by chosen organisation discussed in following points:
Advantages
Mobility: Mobile devices are easy to carry and can be used at any place and therefore does not
require a laptop space to open sites. Captify has made easy access to its customers with its
mobile application facility to all anywhere (Chopdar and Balakrishnan, 2020).
Wide variety rapid purchases: M-commerce today presents a wide variety of products online to
customers with a lot of choices to order.
Omni-channel experience: This a multichannel approach used by chosen company in providing
best experiences to its potential customers (Ghazali and et.al., 2018). This includes online client
shopping service over mobile phone or laptop.
Economic: M-commerce is an cost-effective way of doing things such as mobile banking,
shopping over applications etc. Since there are no additional expenses such as travel charges,
fuel expenditure, etc. becomes easy for customer to do booking and buy sitting at home.
Demerits
Ad-frauds: Programmatic advertising scams are one reason people are attacked virtually with
click ads. This can become a cyber threat to users or even businesses having their information

stored over internet. Many digital advertisements attract fraudsters to steal money or information
online by manipulation of traffic over internet.
Lack of privacy: Tracking people with devices and unsafe mobile applications has issue of
privacy. M anytime viruses attack the personal data of users which is threat to security of people
using those applications.
Cost: People with no prior knowledge of web or application development may incur huge costs
in constructing their own personalized mobile application for business purpose. As they have to
hire other technology experts to build it and further may face issues of using the application in
future (Pipitwanichakarn, and Wongtada, 2019).
Benefits of location based services-
These services are utilized in many contexts such as in object search indoor, health,
entertainment, work businesses and personal marketing. Captify GPS software service of
location targeting uses geographic data to give service to its users and benefit them in following
ways:
Personalized Customer experience: Captify does provide chatbots to their customers sending
personalised message services to them (Dastane, Goi and Rabbanee, 2020). This help customers
understand their application and ask if any problems necessary.
Navigation facility: Navigating leads through GPS location services help businesses know where
the customer actually is and hence help them convert leads into sales. Also know behaviour of
potential customers tracking them with their current location.
Geo- notification: This service sends push notification to target audience within virtual
boundaries. The relearnt message is triggered to customer when they reach target zone within
time.
Geofencing: This is a location based service accessed with help of GPS or Wi-Fi cellular data on
any mobile app or software. These have virtual boundary that is known as geofence used by
companies like captify to track specific target audience.
Asset tracking: Indoor tracking of person wearing tags using GPS, RFID or BLE supports can be
done through asset tracking. It is therefore process of tracking physical assets by barcode
scanning technique. Captify utilizes this tool for staff member tracking and also for tracking
assets in the organisation.

Access to analytics: Business analytics is a measure tool that collects useful customer data and
does analysis on it . The selected firm convert this information into useful information to be used
for conversion of sales leads and attract more potential buyers through analytics.
4. What are the ethical considerations around businesses knowing every ‘place’ we visit?
Location based marketing is the digital footprints where marketers tracks your location
through the web. Every business focuses on the external issues and challenges which can
influence the business organisation. Ethical issues can be the difficult challenges for the business
owners (Ebrahimi, and et.al., 2019). To keep employees or workers responsible, businesses
make discrimination laws and other statutes. But they alone cannot completely deter workers.
There are some of the ethical issues of business which can be considered in mind for the growth
of an organisation:
 Discrimination and Harassment: It is the biggest ethical issue or challenge which is seen
in every business organisation. Discrimination and harassment is seen from so many
years. There are different types of Discrimination and harassment policies. These are
Age, equal pay and sexual harassment can be the part of ethical issues in location based
marketing. This is expected to continue rise in number of companies. As they can track
the record and customers location.
 Accounting consideration: Accounting issues can be considered as the serious issues as if
some individual pay amount at any place then he must be track by the marketers. Because
while paying for anything it is recorded in financial statement that is very risky for the
customers (Chou and et.al., 2018). This could be the serious issue. For this company
does not need to record everything of the customers. This reduces there privacy.
 Technology and privacy concerns: With develop in modern technology, organisations
track the customers locations and provide them ads which is near by their place. For this
other companies provided electronic devices to save customers from taking. Some
marketers can legally control customers email and internet browsing history. Also they
can tract customers content (Yang and Lee, 2017). However, company does not keep
them secret. Customers should know the policies that hoe they are being monitored and
considered in the company.
 Social media policies : Social media is the another platforms where business track
location of the customers as when customers mentions any place in his profile then

marketers of the company track there location (Yadav, Sharma and Tarhini, 2016). This
can decrease their privacy. To avoid this company should create social media policies
that helps the customers to know about their locations. There are certain apps that can be
used by the customers to block mobile tracking and various websites that track the
records.

Conclusion
Location based marketing is most powerful method of tracking location of the customers
because now a days people as more spending there time on smart phones which is not good for
them. They open there location feature always. There are various advantages and disadvantages
shown in the above report. Company should focus on the issues and challenges that has been
shown in the above report to control the records. Company finds this is the best option to track
the customer right location at right time. This gives them proper details about the customer place.
But someone can also create misuse of this method. So these pints should be considered in mind.

REFERENCES:
(Books and Journals)
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