With the unprecedented consumer adoption of smartphones, mobile advertising has exploded and companies are seeking to capitalize on the targeted approach that local mobile advertising affords.
Mobile Commerce Daily reports that although many promotional campaigns via mobile devices are still based on the broadcast media model, this trend is quickly shifting to a more localized, targeted approach. Key performance indicators are showing that local campaigns on mobile are more likely to complete the sales process and bring in revenue that the traditional broadcast model.
A comprehensive report from media advising company BIA/Kelsey shows that the spend on locally targeted advertising nearly doubled from 2011 to 2012. Many ad companies surveyed for the report confirmed that geotargeting generally performed significantly better than broader outreach campaigns “We see growing signs of an imminent tipping point for location-based mobile ad adoption,” said Michael Boland, senior analyst for BIA/Kelsey. “A key driver of the mobile-local share shift will be the evolution of national advertisers, who, to date, have run mostly mobile campaigns that mirror the tactics of the desktop, missing opportunities for more precise location targeting.”
This is good news for brands and retailers looking to capitalize on the localization opportunity that mobile presents. With corporations and small businesses collectively spending billions of dollars marketing to consumers, they want to see results. Local promotion, even for national brands, seems to offer the greatest results. The primary reason for this is simply that customers targeted through local campaigns have the opportunity to immediately interact directly with the organization. Campaigns that are especially relevant to the targeted area (i.e. culturally, historically, etc.), as well as the target consumer are even more successful in driving those lower funnel numbers. Geotargeted customers are more likely to make phone contact or even come into the brick-and-mortar location to browse the products or services offered if the promotion is not only relevant to the consumer, but to the community as a whole.
Location-based mobile advertising is expected to continue to grow as all indicators point to it outperforming national efforts.
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