In Canada, the major mobile network operators include Rogers, Bell, Telus, are often seen competing among each other within the market. Recently, Rogers has introduced a promotion that it believes would intrigue more consumers: enticing customers to shop at a nearby store by sending promotions through texts. By agreeing to subscribe to this new marketing service, consumers can now be able to receive promotions of a store through text messages whenever they are physically near the promoted store. Without losing its point of parity, Rogers is likely to attract more consumers with its new promotional ads by specifically targeting those who’d be interested in shopping with promotional discounts. Rogers has also customized those ads to each subscribed customer which would identify their interest without spamming them with useless ads. This bold and unique market strategy may deem as profitable as it has already attracted several advertisers in participating in the program; however, the consumers’ response to this new “Rogers Alert” is yet to be determined. It can either backfire where consumers prefer not to be spammed by Rogers and instead just focus on providing network services, or it can attract more consumers as profitable promotions attract more people.
Link: http://www.bnn.ca/News/2013/10/2/Rogers-to-offer-promotional-ads-by-text.aspx