The mobile operator is launching a new commercial offering that will allow advertisers to brand 'points of interest' on its mapping service later this summer.
Vodafone, the UK's largest mobile operator is rolling out a range of location-based advertising services, including branded icons promoting products and services in the vicinity of individual users.
Jeremy Makin, principal product manager of mobile advertising at Vodafone Group, told Revolution that advertisers will be offered branded 'point of interest' icons, which will appear on maps as users navigate from A to B.
Makin revealed Vodafone is currently in discussions with a number of potential advertising partners, including cinema chains, retailers and fast-food outlets. "KFC, for example, could have a branded icon that would show up when a consumer was nearby," he said. "They could click on it and download a discount voucher which they would take into that store to redeem."
Plans are still in their early stages, but the advertising offering is expected to be a hit with beleaguered high-street retailers keen to drive consumers into their stores.
The launch coincides with a boom in mobile marketing, with the latest figures from the IAB showing the sector grew by 99.2 per cent last year to £28.6 million.
Geolocation services are also expected to surge in popularity during the second half of the year. In January, Vodafone bought Swedish satnav software business Wayfinder Systems for $29.4m (£19.2m) with the intention of adding extra value to standard GPS mapping services.
The operator's trial of in-map advertising marks the first time it has given brand owners access to the service, which is available for £49 a year or can be downloaded in part for free.
In addition to branded points of interest, Vodafone will also offer enhanced location-based search, giving brands the option of paying to appear at the top of a list of nearby facilities.
"We are taking what people are doing already with search and maps and combining the two," said Makin. "It's about enabling consumers to navigate more easily."
The trial, which will begin late this summer, will assess customer acceptance of, and engagement with, location-based ads, which will be offered on an 'opt-in' basis.
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