Volvo, H&M Eye Unique “Virtual Currency” Mobile Marketing In Booyah’s MyTown App

In a New York Times article yesterday, it was indicated that the market for virtual currency will reach over $2 billion this year.  More interesting is the fact that big-name brands are eying the concept to insert their message in mobile apps like Booyah’s MyTown, signaling a brand new flavor of unique mobile marketing. Virtual …   Read More

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In a New York Times article yesterday, it was indicated that the market for virtual currency will reach over $2 billion this year.  More interesting is the fact that big-name brands are eying the concept to insert their message in mobile apps like Booyah’s MyTown, signaling a brand new flavor of unique mobile marketing.

Virtual currency typically consist of $1 to $3 micro-payments for “virtual goods” and has been growing steadily on the back of social gaming giants like Zynga and the growing amount of virtual goods found in LBS apps like MyTown.  These micro-payments will be worth nearly $2 billion in revenue or more this year, according to ThinkEquity, a financial research firm in San Francisco, and is estimated to reach $2.6 billion next year.

Big brands are migrating to the concept not to build revenue, but to give away virtual items in exchange for attracting and developing loyal customers.  Volvo and H&M are two such brands that are leveraging the steadily-growing community around Booyah’s MyTown app to insert their brands in a new and innovative way.  Volvo initiated a campaign with MyTown starting on September 1st to offer “branded virtual goods.”  Volvo chose MyTown, said Emily Garvey, brand manager at Media Contacts, the digital media agency for Volvo, because “it’s a location-based game, where people check into a location such as a garage or auto dealership and opt to receive a virtual sedan, a Volvo steering wheel, tire or Volvo iron mark — its logo.”

H&M is following a similar path, while taking things a step further.  The clothing retailer is planning a virtual goods campaign to follow its foray in March on MyTown which showcased its collection of denim and blue garments, called the Blues, and encouraged users to visit an H&M store to buy pieces they liked.  During the first campaign, the company said some 700,000 MyTown players checked into game locations like hair salons and spas near H&M stores and earned points they could use to acquire branded items.

It’s a perfect example of the power of location, mobile and highly relevant offers to engage users on a whole new level.  The monetization models are still very much evolving on LBS apps like MyTown, but the future looks bright if brands and the apps themselves harness the power at hand effectively.

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3 comments

  1. marj

    this is very awesome.. i hope lot of cars will be like this

  2. JustinMMW

    That's a good question. I've requested additional details about the respective campaigns from both Volvo and H&M, and will post follow-ups as soon as I hear back. I believe the checkins did count towards certain rewards based on proximity to H&M stores, but I'm still unclear on the exact dynamics of the campaign.

  3. @BooyahDavid

    Hey Justin,

    Would love to explain these campaigns (and others we've run) in more detail if you'd like.

    David Diaz
    Corporate Communication
    Booyah

Comments are closed.