UK mobile operator O2 has published results from a wildly successful location-based SMS campaign in London that drove revenues of more than £385,000 for gym chain Fitness First.
The “You Are Here” campaign delivered SMS messages offering a free two-day pass and details of the nearest Fitness First branch to O2 customers who entereded pre-defined areas surrounding a particular gym branch (also known as geofencing). Though a time frame for the campaign was never mentioned, O2 claims the campaign resulted in 1,121 people signing up for four month and 12-month contracts at Fitness First, which represented an ROI of an impressive 2,690 percent.
O2 said single Londoners between the ages of 18 and 35 were the most responsive to the campaign. We’ve covered many successful campaigns coming out of O2’s mobile advertising branch before, and the operator has seen huge success leveraging its own treasure-trove of user-data to tailor messages. It was revealed in March that O2 already has over 1,000 paying advertisers and over two million actively engaged users.
“The evidence for using location-based marketing is really beginning to mount,” said O2 Media managing director Shaun Gregory. “These figures show that it is not only effective at targeting the right consumers at the right time, but also extremely effective at driving new revenue streams and huge ROI.”
