Marketing Madness

Location-Based Tools Bring Mobile Advertising Great Performance

Mobile ads are the way of the world these days or at least, the way of the web. Marketers have realized the massive migration of consumers to mobile browsing and have leapt at the opportunity. Of course there are many factors that make mobile advertising so enticing, but arguably the best thing that mobile ads have to offer is incredible location-based targeting capabilities. Advertising to the right person in the right place has become a much easier task with the use of mobile location settings in today’s smartphones, tablets, and other mobile devices. Media Post news recently published an article that details just how successful mobile location-based advertising has become.

To begin, the article reports numbers from Nexage, a well-known mobile ad exchange, which show that in 2012 targeted impressions on mobile doubled. This is reported to have been driven by a “30% per month growth in location-powered impressions.”

Another company that has seen the extensive benefits of mobile location based targeting, as reported by Media Post, is Verve Mobile. This is a company that specializes in the area of location targeting, and the company provides tools for advertising management to more than 3,500 local publishers. Apparently, the company serves over 6 billion impressions per month, and in the same time hits 108 million uniques.

What is more important though, is what Verve found after analyzing over 2,500 campaigns. There most important finding as far as key trends go, is that “Geo-aware” ads are being used more and more to bring messages to users based on how close or far they are from a retail location. By combining this geo-locating information with “third-party demographic or transactional data,” marketers can group audiences together based on their geographic locations.

These are the types of ads that are really reaching an impressive degree. Apparently, according to Media Post, targeting consumers by way of DMAs, or designated marketing areas remains the more popular way to advertise on mobile using location services. Verve states that 30% of their campaigns use the method. The plain and simple here is that Verve states location-based ads had two times the engagement rate compared to those of other ad types.

Basically, when marketing on mobile devices, it is unwise to ignore the location-based targeting opportunities that exist with today’s mobile devices. They perform well with consumers, and Media Post reports,

In terms of performance, geo-aware ads rated highest — with a 1% click-through rate — with geo-fenced ads, nearly at 1%, and ads targeted by city, at about 0.9%. Ads using third-party data were found to be the least effective, with click rates of about 0.5%. That’s still well above rates for traditional online banners, but considering that ads with higher levels of data targeting are usually more costly, the results are not impressive.

Location-based targeting has brought marketers a lot more freedom to seek success in mobile advertising. It is something that should be utilized in some shape or form by all mobile marketers, as it could bring better performance to a mobile campaign than other types of ads can.

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Michael Levanduski

Michael Levanduski is the assistant editor of Performance Marketing Insider, and an experienced freelance writer. He writes content for a wide range of sites in virtually every niche, though he specializes in technical writing as well as creating content for the performance and internet marketing industry. Michael was born in Grand Rapids, MI where he still lives with his wife and three children.

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