Mr. Schneider and Ms. Bertelsen get Ditched for overlooking a very important facet of location-based apps in the retail arena: the role it plays as a free form of advertising and generator of "buzz" for those viewing, NOT producing, the information. While this article focuses on the purchases made (or not being made) by those using the apps, it comes to a hasty conclusion without acknowledging the positive effect of that same user's activity on others' decisions. Creating a metric to measure the effectiveness of an app is key, but it should measure more than the behavior of those posting their locations. The metric would need to show the effect of that post on the viewer's behavior. Did a location tag from a friend influence another's decision on where to eat, drink, or shop? Did multiple posts from multiple users about a certain brand or location effect the perception of that brand and company? Though these apps may have limitations or pitfalls to how they influence those posting, they are a free form of advertising for these businesses that are influencing the behavior of those viewing the posts. Before Mr. Schneider and Ms. Bertelsen can begin to weigh the effectiveness of these apps, they need to acknowledge this "viewing" audience and be sure to incorporate their behavior in to their summations.
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