Mobile advertising has reached a location-tipping point

Mobile advertising has reached a location-tipping point.

A majority of US agencies and brands cite location-based data has the most important tactic for mobile marketing success.

What’s important to note now is that location data is used for much more than proximity targeting.

That’s not to say proximity targeting is not important, only that it is the tip of the iceberg in terms of what we can do with location-data.

Three other uses of location data are proving to be powerful and are on the rise.

They include combining using location data for with behavioral data to build nuanced audiences and gain consumer insights as well measure the effect of online advertising on offline actions.

Location-Based Ad Targeting

Location-based ad targeting also called geo-targeting or proximity targeting is the most common form of location-based targeting. Geo-targeting entails targeting consumers based on their current location.

BIA Kelsey estimates 38% of digital ad dollars will be spent on location-based ads in 2016. That share will rise steadily for the next four years.

Digital shoppers appreciate location-based ads.

68% of US digital shoppers in Adadyn’s poll considered location-based mobile ads “useful”.

This percentage rises among younger demographics with 77% of adults 18-24 year olds welcoming geo-targeted mobile ads.

Geo-Behavioral Ad Targeting

Marketers have expanded their horizons when it comes to location data.

To better understand real-world behaviors, marketers are now tracking users’ locations over time. Much like advertisers track consumer movements online to track digital behaviors.

The motivating factor is to increase the relevance of brand messages.

By overlaying geo-behavioral data with contextual data, marketers can increase the relevancy of their ads and fine-tune their targeting.

An example of this tactic is the combination of geo-targeting with current weather conditions and/or past behaviors. According to a Forrester study, 55% of marketers in the US and Western Europe employ these tactics frequently.

Consumer Insight and Audience Building

How we use our mobile phones in the real-world is fueling how we are leveraging location data to gain consumer insights and build audiences.

Consumers use their mobile phones everywhere: at work, on-the-go, shopping and at home.

By layering visitation rates to specific locations, we can draw associations and make assumptions about the person behind the data.

If a user frequents playgrounds, a local gym, Sephora and Toy ‘R’ Us, we can assume that the user is most probably a mother with young children who cares about her health and appearance.

Online to Offline Measurement

A growing number of mobile web searches take place at home.

Consumers are researching products using their phones and then going to brick and mortar locations to make purchases. Location data is critical in online to offline (O2O) measurement. Location signals can signal increases in foot-traffic.

In a study by YP, stores saw a direct lift in foot-traffic after consumers were served a location-based mobile ad.  The automotive industry saw 23x lift in foot traffic to parts and service departments and 9.8x to dealership locations. Travel and casual dining also saw large gains.

Key Takeaways

  • A majority of US agencies and brands cite location-based data has the most important tactic for mobile marketing success.
  • Location-based ad targeting also called geo-targeting or proximity targeting is the most common form of location-based targeting. Digital shoppers appreciate location-based ads. 68% of US digital shoppers in Adadyn’s poll considered location-based mobile ads “useful”.
  • By combining geo-behavioral data with contextual data, marketers can increase the relevancy of their ads and fine-tune their targeting. By layering visitation rates to specific locations, we can draw associations and make assumptions about the person behind the data.
  • Consumers are researching products using their phones and then going to brick and mortar locations to make purchases.

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