While this is not a new concept, geo targeted mobile advertising is steadily growing in popularity with advertisers and providing real value for businesses.
These days, people are constantly connected to the Internet no matter where they go, thanks to advances in communication and technology. Hardly anyone ever goes anywhere without their GPS-enabled mobile devices, and that, coupled with their frequent use of location-based services and clever applications, has produced a substantial amount of geographical and behavior-based information ready for the taking. Not to mention, this data is readily and regularly shared by the users themselves. All of this has led to the rise of geo targeted mobile advertising, allowing advertisers to use mobile device users’ data to geographically target them in order to deliver relevant, customized ads based on their tastes and location. This is different from IP targeting which targets audiences based on their IP address geolocation.
Mobile geo targeting integrates mobile advertising and location-based advertising with location-based services.
Approaches to Geo Targeting Mobile Ads
- Standard Location Targeting – this approach is the simplest, most basic method of location targeting. It relies on static location data, such as zip code, city or DMA to focus advertisement within the specific geographic boundaries. Standard location targeting can prove an effective method for large-scale campaigns for building brand awareness, or when promoting an area-wide promotion.
- Geo-Precise Targeting – this approach allows advertisers to go beyond the limitations inherent in traditional targeting techniques by giving them the ability to customize virtual boundaries, or a geo-fence, around a physical geographic location using a GPS coordinate. Advertisers can create a zone that can be as small as a few feet in radius. An example of this is when you pass a coffee shop and you get a notification on your smartphone for a coupon offer for that particular coffee shop. Geo-precise targeting is ideal for brands promoting their brick-and-mortar stores or events in order to drive in-store foot traffic.
Geo-conquesting, a tactic that employs geo-fencing, uses the same principles to lure customers away from the competition. Advertisers can geo-fence a competitor’s location and target customers within a close proximity of that particular area and deliver mobile advertisements to them.
According to Verve Mobile’s State of the Market Report, retail is the #1 category that utilizes location powered advertising. In addition, the report asserts that “geo-fencing which includes geo-conquesting, is the #1 most utilized location targeting strategy deployed by retailers.”
The report also stated that proximity impacts the performance of advertising campaigns. Analysis of a broad set of campaigns points to an optimal distance of between 1 and 6 miles when implementing a geo-fence.
Benefits of Geo Targeted Mobile Advertising
Mobile devices go everywhere with their owners and people send or receive messages on their smartphones at least 41 times a day (for adults) and 109 times a day (for young adults), according to a study conducted by Pew. Which is why more advertisers are spending more money on geo targeted mobile advertising. Whether you are opening your very first retail store, have an event that you are sponsoring, or setting up shop in a new locality, you can drive foot traffic with the help of mobile location targeting for advertisements.