Archive for May 2010

New location-based apps big in food industry

In a recent article in the Wall Street Journal, full story by clicking here, it looks like many major restaurant chains are developing mobile apps that will piggy-back on the location based capabilities of newest generation smartphones, like the iPhone and google Android phone. The GPS capabilities will allow restaurants to target offers to customers that are near a location with particular offers etc. The biggest issue is getting customers who have these fancy phones to download and adopt the mobile apps for each of their favorite restaurant brands. Assuming enough people install the apps, restaurants like Sonic, Auntie Anne’s Pretzels, and others will be able to target customers based on location. I’m skeptical that this will deliver results at scale given that internet coupons, which are huge in comparison to mobile, still a small fraction of overall coupon marketing. This might be big at some point but in the near-future, it will likely be more sizzle than steak…

Forbes outlines Twitter’s ad model for dummies

I haven’t been super up-to-speed on Twitter’s newly announced advertising model, so I recently read an article on Forbes (click to read full article here) that outlines the 101’s of their new model. Some may call is contextual advertising, others are calling engagement advertising. Simply put, they’re steering clear of the display ad-model and selling impressions to users, which is what Facebook and MySpace have done to-date with relative lackluster success. Users are engaged in the social media world, which does not include looking at intrusive banner ads. Twitter’s model will allow advertisers to peg their tweets to high-up rankings in twitter feeds and searches, giving sponsored tweets more time in the spotlight, hopefully generating more responses, re-tweets, and clicks by followers and the broader twitter community. I think it’s a step in the right direction considering display ads perform horribly and click-through-rates continue to plummet (indicative that consumers hate banner ads – or at least don’t respond to them). We’ll just have to see if this long-awaited paid advertising model will generate the type of revenue consistent with the hype of the announcement…