This Mobile Company Wants To Use Twitter To End Retail's' Most-Hated Trend: 'Showrooming'

Kathy LeakeKathy Leake of Local Response

Photo: Kathy Leake / LocalResponse

LocalResponse, the New York company whose mobile ads are triggered by users’ shout-outs in social media, has struck a deal with Chicago’s ShopLocal to deliver coupons via Twitter to users who tweet while they’re shopping.

For instance, if a woman went into Best Buy and tweeted, “I need a new TV!” LocalResponse’s system will see that her phone is in Best Buy, register her shopper intent, and within 5 seconds tweet back at her a link to a digitized coupon provided by ShopLocal. (ShopLocal digitizes newspaper coupons.)

“We’re trying to help retailers stop showrooming,” says Kathy Leake, founder and president of LocalResponse. “Showrooming” is the phenomenon of shoppers checking prices at a store and then hunting for cheaper bargains online using their phones. Retailers HATE showrooming — so much so that Target recently stopped selling Amazon’s Kindle as a punishment for the amount of business Amazon was taking from its store floors.

LocalResponse is in talks with Best Buy, Walgreens and GNC to use the new product, Leake tells us.

The product poses an existential threat to newspaper coupons, which have already seen declining use as people stop buying their local papers.

“We’re not expecting consumers to behave differently,” Leake says. “People are boasting publicly their location, their need. ‘I need new jeans!’ is interesting to our Macy’s client right now. That behaviour is growing, we’re turning all that intent data into targetable impressions for advertisers.”

LocalResponse currently has about 25 employees. Its revenue run-rate is north of $6 million from approximately 7 billion impressions per month. It runs about 75 campaigns concurrently on its regular check-in response and intent retargeting products, which serve ads at mobile users who indicate where they are and what they want in various forms of social media including Facebook and Twitter. ShopLocal has 85 employees.Related:

  • Meet The 21 Most Powerful Women In Mobile Advertising: 2012


Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.