Possible Unicorn? Hyper-localized Ad-Tech startup Idea

Hyper-localized advertisements based on geo-location could change the way we consume ads.

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We see advertisements everywhere: From mobile phone apps to coffee shops to malls and even while on the roads. One cannot escape them. Advertisement publishers are trying newer methods to reach their audience and this article briefs on one such possible solution.

Have you ever come across;
1. Your local Star Bazaar has a Wednesday offer?
2. You missed a happy hour opportunity in a newly opened restaurant where you were heading to?
3. You pass by a mall which has a sale running but missed it?

Before reading further: I do not come from the advertisement background, apologies for the limited knowledge and my enthusiasm to share the article.

Recommend: You need to read the content from an advertiser publishing platform business perspective, at the same time keeping the audience in mind.

As an advertiser;
1. You opened a local business and want people around you to know
2. As a large FMCG company you want to market your product in that area to increase awareness and sale

Origination of Idea:

1. Digital display ads space is picking up but the companies facilitating also have a huge CapEx and OpEx costs.
2. Hyper-localized advertisements are more or less still exists in the form of hoardings, pamphlets, etc.

What if there was a way;

1. To reduce on the capital and operational expense
2. Hyper-localize based on geo-location
3. Fast and easy way to onboard subscribers with low CapEx and OpEx.

The Idea:

Users of the system:

1. Advertising companies: These are the ones who want to publish ads.
2. Your portal: The online portal where advertisers can publish ads (may basic DIY tools too).
3. Subscribers: The ones who have chosen to display ads on their devices.
4. End Consumers: The end user who is being targeted to watch the ad.

You as a startup have an ad portal where advertisers bid and publish ads marked to any GPS location of their choice. Assume one of your subscribers category are the cab drivers where their phones acts as a medium to serve the ads. The phones are placed (and your startup app is running in foreground on the drivers phone) in a prominent place which is accessible to driver and viewable to the end consumer. The subscriber passes by a location the ad is triggered on his device servicing the end consumer.

Note: The ad could be a video ad or image ad but you would have to break from the chain of traditional video / image ads format since the phone display is small and away form the end consumer. Also may be no audio too.

Why would subscribers downloads?

Incentivization! But wait, these money making figures might be too small for ads consumption by a cab driver. That is true, if you are considering the end consumers to be you / me falling above the lower-middle class income group. Considering a country like India, if the drivers would make INR 75/100 per day that would serve him a meal or two free of cost.

This is an example of only one subscriber segment, to keep the post short I am not getting into other segments (Shop Owners, etc.).

Why would advertisers onboard?

1. Platform for hyper-localization regarding awareness of deals/products, events in vicinity.

Ads are running only when end consumers are present?

Let me throw some direction here. Heard of ML & Face Detection? In addition technology has advanced to the level that it can even guess your audience gender, age, distance from camera.

Final Thoughts

I would love to know your thoughts on this, if you have come across such a concept or experienced in the real world. And if one finds value in the business idea and ready to run the show, glad to discuss in person.

Thanks for reading.