Placecast has launched a new location-based mobile marketing service, called ShopAlerts, that aims to enable retail outlets to drive potential customers into their stores. The service uses SMS, which means that it will be available to all phone users, and not only Smartphone owners.

ShopAlerts works by allowing retailers to create their own version of the service, entering their location and brands. Consumers to opt-in to the brands they want to be notified about via SMS, social media sites, in store, the mobile internet or online.

Once a consumer has opted-in to a brand he just needs to go about his daily life, in the same way that he would have previously, and the service will automatically send him an SMS when he is near a location that he has opted-in for or when the brand is offering sales.

“SMS is already very effective marketing platform and by adding location to the proposition you’ll see even greater consumer response,” said Greg Sterling, senior analyst for Opus Research’s Internet2Go program.

The key to the service is that it creates a “geo-fence”, which is a virtual boundary around the retail outlet that allows retailers to talk to consumers who enter this virtual area. Entering the virtual boundaries triggers a customised SMS that is delivered automatically to shoppers.

“Geo-fence technology represents the next frontier for digital marketing as consumers expect to connect with brands at the right place and time, all via their mobile device,” said Alistair Goodman, CEO for 1020 Placecast.

The service has been running a pilot program across the US with brands such as SONIC, American Eagle Outfitters and REI since September 2009. Participants in the trial who were surveyed have given very positive feedback:

• 60% of participants found the location-triggered messages to be cool and innovative
• 79% said it increased their likelihood of visiting a store
• 65% made a purchase as a result of a ShopAlerts message
• 73% of participants would definitely or probably use the service in the future

To view how the service works, take a look at the following video:

To read the full Press Release please click HERE