Targeting mobile users by location has become a major focus for mobile marketers, according to the latest study from global location marketplace xAd. The 2015 Global Location Snapshot finds that almost 80% of mobile advertisers are using location-based targeting. The majority of campaigners said they used location targeting to reach a more specific audience, address business customers and sending location-relevant messages. However, location targeting trumped proximity targeting as marketers are gaining a better understanding of location-based ads.
Mobile marketers use location targeting to reach a specific audience
According to the study, mobile is already a priority for over half of advertisers globally. In fact, one in five decision makers said that mobile was a “top priority”. However, measuring campaigns accurately remains to be one of the greatest challenges perceived by many. Three in 10 advertisers stated that the lack of visibility over their mobile campaign impact is one of the drawbacks of location advertising. Click-through rates aren’t sufficient enough to determine ROI. Other considerations include poor education on the benefits of location targeting, poor campaign performance, data inaccuracy as well as issues to verify location-based ad inventory.
Monica Ho, Head of Marketing, xAd, explains:
“Around the world, marketing and ad agency leaders have realized that the power of mobile advertising lies in the context of the consumer. Knowing the places, brands, and categories people frequent provides an amazing indicator of not only who a consumer is, but also what they are most interested in. With the power of location-based advertising, marketers around the world can now leverage these insights to deliver more relevant, personalized messaging to millions of people, based on the real places they visit everyday.”
Across North America, Western Europe, Latin America as well as APAC, retail was found to be a top industry for location-based adverts to drive store visits and sales. According to xAd’s 2014 Mobile Ad Measurement Benchmark, one in 10 people visited a store advertised through location-based targeting within 30 days after viewing the ad. Within APAC and LatAm, banking is a top industry for location-based targeting.
As mobile ad spend is predicted to reach $100bn by 2016, location targeting is likely to grow fast. Potential issues will have to be addressed fast in order to gain marketers’ trust. The study concludes that the lack of mobile-first models and privacy concerns across certain regions are still some of the largest concerns.