Pay-Per-Performance Advertising Goes Hyperlocal

I used a new app from mobiQpons yesterday and color me impressed.

The way it works is you install their iPhone, Android or Blackberry app (no signup required, just load the app) and when location services on the device is turned on you will get notifications of merchants offering coupons or promotions in your area. Merchants have to be signed up for the service in order for their promotions to run through the network but that’s not surprising.

From what I can gather the only time that mobiQpons gets paid is when a coupon is redeemed by a customer. This is good because it’s true performance based advertising but it has a potential downside if the merchant in question already has a pretty good online promotion capability, in which case advertising that would normally reach the customer through free channels, like email, will be shifted to the mobiQpons service in which case the merchant is paying not just for the value of the coupon but the fee to the network as well.

It is still a great convenience and I love the fact that the geolocation capabilities filters out the offers that are available to me based on my physical location. Despite the strength of the product and service offering, the key execution variable for mobiQpons will be their ability to promote their merchant partners and for their merchants to promote their mobiQpons offerings… I found out about the service not from a tech blog, press release or the tech press but because Sigonas Market emailed me about it as part of their normal customer outreach. I probably would not have taken the time to download and try out this app were it not for a merchant I already rely upon endorsing it.

In the same vein:

About Jeff Nolan

My name is Jeff Nolan and I write Venture Chronicles. What started, in 2002, as a simple initiative to understand this thing called “blogs” that I kept hearing about has evolved into something much more significant. Home About Venture Chronicles About Venture Chronicles My name is Jeff Nolan and I write Venture Chronicles. What started, in 2002, as a simple initiative to understand this thing called “blogs” that I kept hearing about has evolved into something much more significant. Along the way to becoming a bona fide blogger I started to understand the implications of user generated content. At the time I was a venture capitalist for SAP, the enterprise software company, and in my travels in the enterprise software market it became evident that blogging would be a powerful communication channel for enterprises to use, what we now call social media, and a powerful information collection mechanism for bottom up corporate intelligence. Combined with search technology, social networking software, and wikis, I was witnessing the inception of an entirely new generation of knowledge management software. I am currently the VP Product Marketing for Get Satisfaction, the simple and effective way to build online communities that enable productive conversations between companies and their customers. Over 50,000 companies use Get Satisfaction to create a social support experience, build better products, realize SEO benefits, and take advantage of brand loyalty behaviors that results in strong word of mouth marketing experiences in the market. I can be reached at jnolan-at-gmail-dot-com.

View all posts by Jeff Nolan →